Yahsat deal ushers new era in UAE communications industry

Al Yah Satellite Communications Company 'Yahsat', a wholly owned subsidiary of Mubadala Development Company, today signed a historic agreement with a European consortium comprising of EADS Astrium /Thales Alenia Space to manufacture an US$1.66 billion (AED6 billion) dual satellite communications system in time for a launch in the second half of 2010.

The signing took place at the Emirates Palace in Abu Dhabi under the patronage of His Highness Sheikh Mohammed Bin Zayed Al Nahyan, Crown Prince of the Emirate of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces. The agreement was jointly signed by: Waleed Al Mokarrab Al Muhairi, COO of Mubadala and Chairman of Yahsat; François Auque, CEO of EADS Astrium, and Jean Paul Perrier, Chairman of Thales International.

The turnkey contract gives the go-ahead for the consortium to use its resources and expertise to design and construct Yahsat's two satellites from design concept to post-launch. Both satellites will be launched within months of one another, allowing Yahsat to provide customers with innovative solutions for broadcasting services, internet trunking via satellite, corporate data networks and backhauling services to telecom operators. The Yahsat satellites will fulfil the satellite communication requirements of both government and commercial customers in the Middle East, Africa, Europe and South West Asia. The system is designed to accommodate the trends of emerging applications in the satellite industry like HDTV and other broadband satellite services.

Born from Mubadala's unrivalled track record of successful entry into new industries, Yahsat represents the latest initiative within Mubadala's ever growing portfolio of information communications technology interests that drives forward Abu Dhabi's economic diversification strategy. This historic agreement builds upon the UAE's existing fast-growing communications industry. The global commercial satellite industry alone generated over US$80 billion in revenue in 2005 alone, with the highest revenue growth being registered in the Middle East and Africa region.

Waleed Al Mokarrab Al Muhairi, COO of Mubadala and Chairman of Yahsat, commented, "In accordance with Mubadala's track record of partnering with top tier worldwide corporations, Yahsat will focus on creating long-term partnerships to provide a high degree of flexibility and access to the customers. Demand for satellite communications capacity is booming in the Middle East and North Africa, and this demand is predicted to grow exponentially. Strategically, we believe that we have spotted a demand in the market for delivering innovative, quality anf cost-efficient solutions to customers in our region, and we are confident that we have engaged the very best partner to help us achieve our mission."

Al Muhairi continues: "This is the first time that a government in the region has openly backed such a substantial venture in the satellite communications industry. It sends out a powerful message about Abu Dhabi's emerging role as global technology hot-spot, and we hope to encourage many young Emiratis to develop careers in this dynamic and exciting field."

François Auque, CEO of EADS Astrium , representing the consortium, said: "Naturally we are delighted to have been selected as Yahsat's partner for the design, construction and management of these two satellites communication system. The selection process was comprehensive; we were impressed by both the depth of strategic studies undertaken and the technical know-how displayed by the team but also their passion for 'making it happen'. We believe and hope that this is the start of a long-term relationship that will benefit not only Yahsat's customers around the region, but the people of Abu Dhabi themselves."

The satellites will provide the following services:
Broadcast - including Direct-to-Home, Free To Air and Bandwidth On Demand
Broadband - including Broadband Internet Access, Corporate IP Networks and IP Trunking
Telecom - for VSAT Services and GSM Backhauling.
Government Services

The operational life of the satellites is estimated at 15 years. The Yahsat system will comprise of a space segment including two operational satellites -YahSat 1A and YahSat 1B. 1A is to be stationed at the orbital position of 52.5°E.