Electro Optic Systems Holdings’ (EOS:ASX) wholly-owned subsidiary SpaceLink has achieved a new, smaller, communication satellite design that allows accelerated profitability at significantly reduced cost.
In breakthrough developments SpaceLink has:
- improved the satellite design by integrating higher bandwidth communication terminals on both small and large satellites, further improving the profitability of the SpaceLink business model;
- reduced the cost of initial capability deployment from US$750M to US$240M; and
- advanced the date for initial operational capability (IOC) from mid-2024 to early-2024, allowing it to meet customers’ requirements for earlier services and to secure SpaceLink’s extensive communication spectrum licenses by meeting the stipulated Federal Communication Commission (FCC) regulatory milestone date in mid-2024.
SpaceLink has developed a new, high-capacity communication satellite design, known as Block-0, that allows for accelerated schedule and reduced cost.
Key features of the new design include:
- Cost. The US$240M project cost is less than 33% of the original project cost. This reduced cost includes satellites, launch, ground-based infrastructure and Opex to achieve profitable operations. The new budget also includes funds required to implement risk mitigation activity with OHB for future improved satellites.
- Profitability. Near-term customer revenue is estimated by SpaceLink at US$240M over the initial 30 months of service delivery. Replacement satellites can be inserted into the constellation at a substantially lower cost per unit of capacity, to meet expanding service delivery obligations. These satellites will have enhanced profitability from using then-existing ground-based infrastructure.
- Spectrum. An initial operational capability in space will be achieved before mid-2024, meeting all requirements of the SpaceLink spectrum allocation.
- Capacity. The new design will have sufficient capacity to meet early market demand and achieve profitable operation.
The lifetime on orbit for Block-0 satellites is around 2.5 years, noting that follow-on satellites can be added quickly, subject to regulatory approval.
Block-0 will constitute a fully functional and profitable SpaceLink constellation, scalable to meet market demand and funding availability.
Engineering Continuation
SpaceLink expects that its planned 2024 capability will meet an increasingly urgent need for secure and resilient space communication services and
will establish the need for increased capacity and lifetime in SpaceLink communication satellites. EOS has today extended its commercial relationship with OHB to further improve the capability of SpaceLink satellites.
Next Steps
EOS has received proposals for the new, lower cost satellites and has shortlisted two vendors with compliant solutions. Final selection and contract award is expected in April 2022 with initial operational capability scheduled for Q2 2024.
