UAE-based satellite operator Yahsat and Hughes Network Systems announced an agreement to enter into a joint venture to provide commercial Ka-band satellite broadband services across Africa, the Middle East and southwest Asia. This new venture combines Hughes expertise in broadband satellite networks and services with Yahsat's position in satellite broadband across these regions. Hughes will purchase a minority interest in the venture.
The new venture will provide unserved and underserved communities with reliable, high-speed internet services operating over Yahsat's Al Yah 2 and Al Yah 3 Ka-band satellites, leveraging the capabilities of the Hughes Jupiter System, designed and optimized for large scale High-Throughput Satellites. Hughes will also supply its Operating and Business Support Systems for network operations and management.
Initially, the venture will focus on direct-to-premise services to homes, small and medium-sized enterprises, community centres and schools served under local government programs across these regions. In parallel, there will be an increased focus on community hotspot solutions to make satellite-enabled broadband more accessible across the AY2 and AY3 footprint, which currently covers more than 1 billion people. In addition, the venture will also aim to capitalize on the accelerating transition towards Ka-band based backhaul and carrier services from mobile network operators.
Completion of the transaction is subject to customary regulatory approvals and closing conditions, and is expected to occur later this year.
