Our adjusted timeline, that we communicated in June 2023, currently holds. That means that the launch of Ovzon 3 will take place no earlier than late 2023 or early 2024. We will communicate a more narrow and specific time for launch sometime in the fourth quarter 2023.
In the wake of the pandemic with global component shortages and logistical problems as a result, we observe that many satellite programs have been delayed. Additionally in our case, the final assembly and dynamic testing of the satellite, along with the intricate modeling pertaining to the change of launch vehicles, is taking longer than initial plans and projections.
At present, it is premature to provide a definitive assessment; however, we are actively evaluating the situation. Our primary objective is to finalize and expedite the launch of the satellite. Naturally, as with any company, we must continually assess our processes and endeavors. Our perspective is that the external circumstances have regrettably been adverse, both the pandemic and supply-chain issues, introducing a multitude of challenges for the industry as a whole.
At present, this represents the input we have from our manufacturing and launch providers and is our most accurate estimation. We will communicate a more narrow and specific time for launch sometime in the fourth quarter 2023.
The rescheduling in question will not have an impact on Ovzon’s current commercial activities, nor the ongoing delivery of Ovzon SATCOM-as-a-Service supporting customers around the world. The operational and commercial model for Ovzon 3 remains solid and unaffected.
To proceed with the Ovzon 3 orbital position, it is necessary for us to initiate an additional regulatory extension filing with the Radio Regulations Board (RRB) of the International Telecommunications Union (ITU). The RRB convenes quarterly meetings, and we are currently in the process of preparing our case for the forthcoming meeting scheduled in the fall. We maintain a good relationship and ongoing dialogue with the RRB and all stakeholders.
The sole instance concerning bad debt provision pertains to our former Italian distributor. A payment plan was established in the beginning of 2023 regarding unpaid invoices. Ovzon then chose to make provisions of SEK 52 million in bad debt, while SEK 7 million of the total receivable was deemed likely to be received. The payment plan has not been fully followed and the company is working actively to secure the entire claim.
We have successfully secured leased capacity, and our satellite network possesses the flexibility necessary to accommodate significant contracts on short notice, which serves as a distinct competitive advantage for us.
In terms of the order value, this should be viewed as a fresh start with a cooperation with Vodafone. The end customer receives a solution that can be easily expanded with additional terminals, broader and stronger networks etc. The end customer has a significant need for the service but currently lacks the necessary funds.
The Ovzon T7 mobile satellite terminal has been specifically designed for utilization in with Ovzon’s forthcoming proprietary satellite, Ovzon 3. This satellite is equipped with Ovzon’s internally developed On-Board-Processor (OBP). The combination of these cutting-edge technologies in the mobile satellite terminal, the satellite (Ovzon 3), and Ovzon On-Board-Processor (OBP) presents remarkable possibilities in terms of capability, resiliency and functionality alongside a higher degree of mobility, and high-rate data transmission. Notably, the Ovzon T7 incorporates a feature that can conceal signals emitted from the mobile satellite terminal, rendering it imperceptible to other users in close proximity.
You should buy the Ovzon service if you require a reliable mobile broadband service with guaranteed throughput. The Ovzon services are available with On-The-Move and Manpack terminals. The Ovzon Hero service is a flexible and customized solution that can meet changing throughput demand over time.
The services come with the highest data throughput together with high availability, and with the smallest mobile terminals on the market. The result is the lowest terminal weight per Mbps to be handled in the field, i.e. the combined CIR data throughput in both transmit and receive direction per terminal weight can be as high as 20 Mbps/kg (9 Mbps/Lb).
Each GEO satellite can cover up to approximately 40% of the earth’s surface excluding north and south poles. Ovzon services are normally provided for one specific geographical area with the option of additional geographical areas.
The T6 adjusts the polarization offset automatically, which means that the user is only required to adjust the antenna in azimuth and elevation with guidance from the T6 GUI, i.e. the handling is very similar to setting up a BGAN terminal.