Expansion of current service
Service based on leased satellite capacity
Ovzon’s existing service was launched in 2014 and is based on leased capacity from a number of external satellites in combination with Ovzon’s proprietary terminal technology and service offering. In 2019, the service offering generated sales of SEK 232 million.
During the year, the company renewed significant customer contracts. Ovzon will lease further satellite capacity as needed to increase service coverage and total available bandwidth.
Service based on the launch of a proprietary satellite
Ovzon’s strategic goal is to offer satellite-based broadband through proprietary satellite technology, terminal technology and service offering with considerably higher performance than is available today.
The company’s first proprietary satellite, Ovzon 3, will increase service performance considerably and make even smaller terminals, expanded coverage areas and increases in available broadband possible. The total investment in Ovzon 3 is approximately SEK 1.5 billion, and funding was secured in 2019. Manufacture of the satellite has commenced and launch is expected in 2021.
With optimized capacity, the company expects that in a few years, Ovzon 3 will generate annual revenue of up to SEK 1 billion, with better margins than the current service offering. A multi-year agreement with Intelsat was signed in 2019 concerning services on its proprietary satellite, Ovzon 3, at a total value of SEK 520 million.
Within 10 years
A fleet of proprietary satellites
Ovzon’s long-term vision is to have several proprietary satellites that facilitate global coverage with proprietary satellite technology that makes Ovzon a leading supplier of satellite communication.
Ovzon’s plan is a gradual expansion, and the company already has orbital positions that ensure future global coverage. At present, the company has six orbital positions registered with the International Telecommunication Union (ITU).
With its technology, Ovzon has the smallest terminals for satellite communication – a position the company intends to preserve and strengthen. The fleet of proprietary satellites equipped with the company’s technology increases the basis for this.