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Intelsat to Enhance Central Africa's Network Capabilities

Zacks Equity Research

Intelsat S.A. I recently inked a definitive agreement with Stratosat Datacom for an undisclosed amount to augment the broadband capabilities of Central Africa. Stratosat Datacom is a wireless data communication and IT services provider in the African markets. The deal will facilitate improved communication capabilities in the region, offering reliable, consistent and affordable connectivity to the masses.

Per the deal, high-speed broadband services for seamless Internet and Virtual Private Networking connectivity will be provided across the region. This will leverage Intelsat’s high throughput global network and valued-added engineering and management services from Stratosat. Powered by Intelsat’s FlexEnterprise, Stratosat NextGen managed service will significantly improve the performance of networks for small, medium and large businesses within the region, thereby driving overall economic growth.

In addition to securing global connectivity, FlexEnterprise removes the complexity of delivering high-speed broadband services and reduces the total cost of ownership and network expansion by pairing high-throughput connectivity from Intelsat’s space-based network with smaller ground hardware. This, in turn, enhances network speed and coverage, offering unrivalled efficiency levels with high resiliency and redundancy for a wide range of applications and services that are not supported by traditional networks.

Intelsat aims to leverage its expansive ground networks, growing managed services platform and strong government and commercial business relationships to improve its top line. Also, the company intends to lead the industry through seamless integration of satellite-based telecommunication solutions with the global telecommunications infrastructure. It is focusing more on software-defined satellite designs to lower costs and streamline manufacturing process.

The company is specifically targeting lower capital investments over a three-year period from 2018 due to replacement of bigger satellites with smaller ones. Incorporating innovative designs, the new fleet will enable it to remain commercially flexible, maintain a strong competitive position at lower operating costs.

However, increased uncertainty over the implementation of its policy goals, including the launch of newly-designed satellites has clouded the earnings picture. The Zacks Consensus Estimate is currently pegged at a loss of $2.61.

Some other companies operating in the industry are Maxar Technologies Ltd. MAXR, EchoStar Corporation SATS and Iridium Communications Inc IRDM.

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EchoStar Corporation (SATS) : Free Stock Analysis Report
 
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