Yahsat anticipates higher growth from its satellite broadband business as it looks to enter the mobility and Internet of Things segments (IoT), as well as possibly compete with telecoms service providers, The National reported. CEO Masood Sharif Mahmood said the operator is anticipating greater demand for satellite broadband services on the back of higher uptake in IoT-serviced industries such as oil and gas and on the growth of sustainable cities in the region.
According to US-based International Data Corporation, the IoT market in the Middle East and Africa is set to grow 15 percent in 2018 to USD 6.99 billion, and reach USD 12.62 billion by 2021. The company’s acquisition of a majority stake in Thuraya was also considered as part of it efforts to expand its mobility segment, added Mahmood. He declined to specify Yahsat’s stake in the operator or the value of the transaction.
Yahsat’s new Al Yah 3 satellite completed orbital testing at the end of May and is expected to increase the operator’s footprint in another nineteen countries, including newer markets in Latin America and Brazil. Its Al Yah 1 and Al Yah 2 satellites provide government services, satellite TV and satellite broadband in the Middle East, Africa, central and south-west Asia, penetrating remote areas.
Yahsat specialises in coverage of unserved, digitally remote areas but will eventually target providing connectivity to segments in cities that already have service, too. The challenge, said Mahmood, is to make such services affordable to consumers as well as encourage their take-up in the region, where on board Wi-Fi is still viewed as a luxury and faces competition from legacy infrastructure such as in-flight entertainment.
YahSat sees opportunities in the developing world to provide affordable basic internet connectivity to bridge the digital divide, especially through partnerships with governments. Citing Free Basics, the affordable internet service launched by Facebook in less developed economies, Mahmood said should his company enter this segment, it would look at doing things differently. He said YahClick, as the operator’s satellite broadband service is known, has grown to cover around 50,000 devices.
While this satellite broadband connectivity is available through retailers in the markets covered by Yahsat, often remote localities, it is also the third licensed operator for internet services in the UAE. While YahClick provides connectivity to the oil and gas industry as well as services requiring remote connectivity in the Emirates, Mahmood said it would be a while before it becomes competitive with telecoms service providers.
Source: Telecompaper.com