The satellite operator is set to merge with Bayanat later this year and the combined entity will be worth $4.1 billion
Al Yah Satellite Communications Company (Yahsat) has signed an MoU with e& UAE that will see the operator become the first telecom partner of Yahsat’s new direct-to-device strategy the satellite operator launched last month. As part of the partnership, the two will explore voice, texting, and data satellite connectivity for standard smartphones as part of Yahsat’s Project SKY.
In the first stage of the project, the operators plan to offer voice and messaging capabilities this year – before releasing texting and IoT capabilities on smartphones in 2025 – using Yahsat’s Geostationary Earth Orbit (GEO) satellites including T2, T3 and T4, which is expected to be launched later this year. While GEOsats have a higher latency than competitors like low Earth orbit (LEO) constellations, they are still suitable for less delay-sensitive traffic.
The second phase planned by the companies, called Project BlueStar, aims to enable full direct to device connectivity through a “scalable and sustainable satellite network.” The two companies are joining forces using Yahsat’s planned LEO D2D system, which the satco said is designed to provide seamless connectivity (including voice, texting, and data) for standard smartphones.
The company has not elaborated on what this stage two will look like in detail. However, it does have access to L-Band holdings. Also, as proof that a year is a long time in telecoms, the company last year said it would not make an early investment in a LEO-orbit constellation – except possibly a low-cost IoT play or a direct-to-device venture – until it was satisfied that constellations were sound businesses.
Yahsat is set to merge with Bayanat later this year, pending shareholder and regulatory approvals, creating a satco called Space42. Bayanat is developing a constellation of at least five Synthetic Apeture Radar (SAR) low Earth orbit (LEO) satellites to provide a consistent data stream for end-to-end solutions for SAR applications.
Rude health
In its latest results, earlier this month, the Yahsat demonstrated it was still in rude health. Thre company experienced revenue growth across all operating segments of the group for the first time since its IPO in July 2021. Having the UAE Government as anchor customer helps keep the business in good flow.
Revenue grew 6% year-on-year to a AED1.7 billion ($457 million), EBITDA was up 3% to AED977 million ($266 million) and net income jumped 68% to AED405 million ($110 million) for the full year ended 31 December 2023. The company has set new guidance for 2024 with AED1.6-1.7 billion ($440-460 million) for revenue, AED936-1,010 million ($255-$275million) and for EBITDA, AED 441-514 million ($120-140 million).
It is procuring two new satellites, Al Yah 4 and Al Yah 5, and has the upcoming launch of Thuraya 4 in the second half of 2024 on the cards.
“We are delighted to announce our MoU with e& UAE, a leading global telecom operator, as the first of many agreements we hope to reach with key industry players as part of our D2D strategy,” said Yahsat Group CEO Ali Al Hashemi, speaking of the link-up with e& UAE. “We are discussing a whole host of areas where we aim to collaborate, which includes developing the ecosystem as part of our recently launched D2D strategy – Project SKY.”
“This partnership with Yahsat unlocks a new era of global connectivity,” said e& UAE CEO Masood M. Sharif Mahmood. “We’re proud to be the first operator to join Yahsat’s D2D vision and leverage our networks to bring seamless, anytime-anywhere connectivity to people everywhere. This is a significant step towards bridging the digital divide and realising our shared vision of a connected future.”