Avanti signs 7-year lease
September 24, 2018
By Chris Forrester
London-based speciality satellite operator Avanti says it has signed a seven-year wholesale capacity lease worth $12 million annually, and $84 million in total. Avanti has not named the client other than to say it is a “major international satellite service provider”.
The contract kicks in mid-2019 and in its statement to the London Stock Exchange, Avanti says “[it] will receive $12 million per annum in quarterly instalments for the duration of the agreement once commenced. The agreement is expected to commence in Q3 of the Company’s next financial year ending 31 December 2019.”
The agreement covers capacity on Avanti’s Hylas-1 craft and potentially using Hylas-4. Both operate from the 33.5 degrees West orbital position.
Unconfirmed market rumours suggest that the potential client could be Viasat of California. However, back on August 28th Avanti signed a “7-year Master Distribution Agreement” with Comsat of the US.
“The capacity lease agreement for its Hylas-fleet of satellites will increase significantly the Company’s usage and fill-rates,” said Avanti.
Kyle Whitehill, CEO of Avanti, said: “This agreement is a major vote of confidence in the Avanti network and offer. Since joining Avanti my ambition has been to drive growth through increased usage of the fleet and this deal does just that. I look forward to continuing to realise that ambition, and the Company looks forward to delivering the great service and support that we are known for.”