Sometimes, the gamble pays off. That’s what Xtar’s investors must be thinking now that this commercial X-band operator has signed another distribution deal with a government satellite services provider.

To add to their belief that they guessed right when investing in commercial X-band satellites, the U.S. military has admitted that it will not become self-reliant in satellite bandwidth until 2020. This means the Pentagon will have to keep using commercial satellites — and government satellite service providers — in the meantime.

Xtar LLC announced April 10 that it inked a master service agreement with Arrowhead Global Solutions. Under the deal, Arrowhead will market and lease X-band space segment on Xtar’s Xtar-Eur, which carries 12 X-band transponders, and Xtar-Lant, which carried eight X-band transponders. The combined footprint of the two satellites covers Africa, Europe, the Middle East, South America, much of Asia east to Singapore, and North America east of the Rockies.

"I have been working with Xtar since they were being formed, and have looked forward to signing a master service agreement with them for the past three to four years," Mary Ann Elliott, Arrowhead’s chairwoman and CEO, said. "We offer unique, individually-tailored solutions primarily to the U.S. military and intelligence communities; including X-band space segment and a 24-7 help desk whose staff all have security clearances. Now that they are in full operation, Xtar’s offerings and capabilities fit nicely into our service lineup."

Xtar, which was created by Loral Space & Communications and Spain’s Hisdesat to target the government market, also signed distribution or reseller agreements with SES Global subsidiary Americom Government Services, General Dynamics Satellite Communications Services and Stratos Mobile Networks.

Arrowhead is one of three U.S. companies that hold a Defense Information System Network Satellite Transmission Service-Global (DSTS-G) contract awarded by the U.S. Defense Information Systems Agency. The contract vehicle allows the government to procure commercial satellite bandwidth and services.

Governmental services provider Artel Inc., which also holds a DSTS-G contract, is in "early discussions" with Xtar, Ron Seward, Artel’s vice president for corporate business development, said. "We won’t be surprised if we get into a reselling arrangement with Xtar."

DRS Technologies Inc., through its operating units DRS Spacelink International and DRS Codem Systems, is engaged in similar pursuits aimed at bringing unique "X-band on- the-move capabilities to military and commercial mobile satellite communication applications," Skot Butler, DRS Spacelink International’s director of business development, said.

For Xtar COO Denis Curtin, these contracts "play nicely into our business plan," he told Satellite News. "We know that there’s a lot of legacy X-band equipment out in the field. With the range of resellers we are getting signed up, we’ll be able to serve a broad range of them."

Among Xtar’s possible clients is the U.S. Navy, which uses the X-band to ship-to-shore voice, video, and data transmissions.

The U.S. military is awaiting the launch of new satellites that will increase its communications capabilities, but until those spacecraft reach orbit, and possibly beyond, the Pentagon will continue to rely on commercial providers. "Commercial satcom is now a crucial piece of our communications architecture … we’re turning to you first," U.S. Air Force Maj. Michael Moyles of U.S. Strategic Command said in February at SATELLITE 2006.

Meanwhile, Xtar already is providing X-band communications to U.S. embassies in Asia and Africa, through the Department of State‘s Diplomatic Telecommunications Service (DTS) Program Office. DTS serves more than 260 users worldwide, representing nearly 50 U.S. government entities.

International markets also beckon. Xtar already has signed a deal with the Royal Danish Navy, and was hosted the Spanish Ministry of Defense on Xtar-Eur until Xtar-Lant entered service. Others service contracts are possible with NATO countries who use X-band satellite equipment.