Artist rendition of the Inmarsat 5 satellite.
Photo: Boeing

[Via Satellite 10-07-13] Inmarsat has triggered an option to purchase a fourth Inmarsat 5 satellite under its existing contract with Boeing Satellite Systems International. The program schedule from Boeing has a satellite delivery date of mid-2016.

Initially, the fourth Inmarsat 5 satellite will serve to provide an early available spare in the unlikely event of a launch failure of any of the first three Inmarsat 5 satellites. As a result, Inmarsat will be able to achieve global service launch for Global Xpress more rapidly than if a replacement satellite were only commissioned following a launch failure. This measure of redundancy is expected to encourage further commitments to GX.

In the event the satellite is not required as a launch spare, Inmarsat is developing an incremental business case to support the launch of the fourth satellite to increase capacity and strategically enhance network coverage.

“Our confidence in the Global Xpress program and our target market opportunities continues to grow. We have signed multiple pre-sale agreements and received significant expressions of interest, some of which are tied to the completion of global coverage with three satellites. This has encouraged us to not only move to a strategy to physically insure our global service date with a fourth satellite, but also to consider incremental opportunities that have emerged and could drive enhanced returns via the launch of a fourth satellite,” said Rupert Pearce, Inmarsat’s CEO.

Boeing will immediately begin construction of the fourth Inmarsat 5 satellite. The total cost of the option and certain related expenditure is estimated to be between $220 million and $250 million. In the event the fourth satellite is required as a spare, the impact on total capital expenditure over the period to 2016 would be broadly neutral as the insurance proceeds from any loss would be expected to cover the construction, launch and insurance costs for the fourth satellite.

Once fully deployed, the Global Express program, based on Ka-band technology, will offer a combination of global coverage from a single operator and consistent high performance of up to 50Mbps.