Yahsat acquires minority stake in IoT solutions provider eSat Global
Al Yah Satellite Communications, better known as Yahsat, has bought a minority stake in eSat Global, an Internet of Things connectivity solutions provider, as it seeks to expand its operations in the fast-growing Internet sector. IoT.
The move will bring a “disruptive new, low-cost, low-latency, satellite-direct IoT service to market,” Yahsat said in a statement Tuesday at the Abu Dhabi Stock Exchange, where its shares are traded.
The acquisition of eSat will allow Yahsat to expand into the “fast growing” IoT sector, which is still “significantly underpenetrated” and is in line with the company’s strategy to prioritize growth sectors. , did he declare.
Details on the investment and the size of the stake were not disclosed.
Yahsat’s mobility business, Thuraya, has also signed a commercial agreement with eSat to develop a next-generation IoT platform that will provide customers with access to the IoT portfolio globally.
It will provide Thuraya with “secure, long-term access to an end-to-end IoT and low-power wide-area network (LPWAN) system and portfolio,” Yahsat said.
The companies plan to launch the IoT system and wallet, and begin commercial operations by Q4 2023.
“Yahsat’s investment in eSat, combined with Thuraya’s commercial agreement, aligns with our belief in the outsized impact of the IoT sector for the satellite and space industry today and in the coming years,” said Yahsat Group Managing Director Ali Al Hashemi.
“Through this partnership, we will be able to serve our customers even more effectively by delivering smart, reliable and customizable solutions that will unlock exciting new opportunities across many industries.”
The global IoT market is expected to grow at a compound annual rate of 22% over the next five years to reach $525 billion and the satellite IoT business is expected to generate cumulative revenue of $6 billion over the same period, according to Yahsat.
The satellite operator, founded in 2007, currently offers multi-mission satellite services in more than 150 countries across Europe, the Middle East, Africa, South America, Asia and the Australasia.
It has a fleet of five satellites that extend its reach to more than 80% of the world’s population.
The company expects its IoT business to be a key driver of its commercial mobility business, Chief Commercial Officer Sulaiman Al Ali said. The National in August.
The partnership with eSat will enable Thuraya’s service partners to meet critical IoT requirements in key segments including smart agriculture, environmental monitoring, digital maritime tracking and cold chain, Yahsat said.
The new platform will enable “millions of devices to be serviced simultaneously and efficiently in a cost-effective manner”, he said.
Devices equipped with the new eSat communication module will be able to communicate with satellites using very low transmit power anywhere in Thuraya’s footprint.
The new platform was designed with 5G considerations, has ubiquitous coverage, and will also incorporate capabilities to support low-cost SMS services to enable constant connectivity for smartphone users, especially in situations emergency.
“We look forward to strengthening our partnership with Yahsat to provide LPWAN connectivity to existing Yahsat customers and many other new users for whom satellite connectivity was not an option before,” said Rick Somerton, Managing Director and President of eSat Global.
Updated: October 11, 2022, 07:39