Astrocast, the Swiss-based global nanosatellite IoT network operator, has secured a USD 17.5 million investment from UAE-based Thuraya Telecommunications, a subsidiary of Al Yah Satellite Communications Company PJSC. The agreement marks Thuraya's first investment in a Low Earth Orbit (LEO) satellite constellation. Astrocast and Thuraya initially entered into a technical cooperation agreement in 2019, which will now be extended for another four years.
Also Read: Astrocast Completes Optimization of Satellite Constellation
Astrocast's IoT network
Astrocast's Global nanosatellite IoT network offers low-power, wide-area connectivity solutions across various industries, including transportation and logistics, oil and gas, utilities, mining, forestry, agriculture, and maritime. The investment aims to strengthen Thuraya's position in the IoT market and help speed up its strategy for satellite-enabled IoT.
The IoT market is expected to grow at a CAGR of 22% over the next four years, reaching USD 525 billion, while the satellite IoT sector is forecasted to generate cumulative revenues of USD 6 billion over the same period. This investment represents an opportunity for Thuraya to increase its exposure to a rapidly growing sector with significant untapped potential.
The investment agreement with Thuraya will enable Astrocast to develop further and expand its nanosatellite IoT network, which already covers the entire globe. This network can provide valuable IoT data to businesses in remote areas, making it ideal for industries like mining, forestry, and agriculture.
To carry out Thuraya's investment in Astrocast, the Swiss company will issue a convertible loan to Yahsat for in-kind investment. The loan carries an interest of 8% and has a term of 45 months from the issue. The principal plus any interest can be converted into shares in the company at a premium to market price at the issue date.
Also Read: NTT and SES to Deliver Satellite-Based Edge and Private 5G Network
In February, Astrocast announced that it had successfully optimised its satellite constellation with improved quality and reliability. In January, the company launched four low Earth Orbit (LEO) nanosatellites, bringing its total fleet in service to 18 satellites, making Astrocast one of the top 3 LEO satellite operators in Europe, based on the number of commercial satellites currently in low Earth orbit.