The UK based satellite operator, Inmarsat revised their capital expenditure for 2016, 2017, and 2018 for sixth generation satellites. The expect the costs to be between $500 million and $600 million US dollars. The total investment is up to $1.8 Billion, which includes one I-5 satellite and two I-6 satellites.
Inmarsat also plans further investment in GX or Global Xpress infrastructures that include the I-5 satellites as well as ground stations. This would then begin to deliver communication services to the ships via Fleet Xpress Ka-band services, which has FleetBroadband L-band as their back up. Rupert Pearce, the Chief Executive at Inmarsat, states that they will further new GX infrastructures through the years to maximize long-term growth opportunities.
In 2015, Inmarsat had a successful period of satellite launches. Pearce stated that they were able to launch one I-5 GX Ka-band satellite in February and then one in August of 2015. December will bring the introduction of commercial services globally for GX.
Inmarsat then purchased from Airbus two of the I-6 satellites that come with Ka-band and L-band payloads last year, and ready to be commissioned by 2020. It will be the fourth launch for the I-5 satellite during the fourth quarter of 2016. Pearce then stated that they will continue to explore new orbits, related revenues for satellites and business opportunities.
The expenditure forecast is much more than the analysts had even expected and was shown as Inmarsat stated that their revenues were $1.27 billion for 2015 which is close to 2014 revenues, even though it was down by $2.4 million in 2015 for the maritime revenue services. Pearce also stated that the maritime revenues were a bit changes, but had strong growth in their two products, the XpressLink and FleetBroadband, which continued to be offset by the decline of the non-core legacy products.