Spacecom signs $55 million contract with Amos-17 customer

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WASHINGTON — Israeli fleet operator Spacecom on May 21 announced a contract worth up to $55 million for satellite capacity on its upcoming Amos-17 satellite.

An unnamed customer will use high-throughput Ka-band capacity on the satellite for four years to provide communications services mainly in Africa. Some $25 million of the contract covers unspecified “collaboration” services.

The contract hinges on a successful launch and activation of service by a set date in the fourth quarter of 2019, otherwise the capacity portion of the contract worth $30 million will terminate, according to a filing with the Tel Aviv Stock Exchange.

Spacecom said it expects service to start for the customer July 1, or whenever the satellite finishes commissioning and begins commercial operations. Boeing Satellite Systems International is building Amos-17, and SpaceX is scheduled to launch the satellite in the second quarter of 2019.

Amos-17 carries Ka-, Ku- and C-band payloads, and is a replacement for Amos-5, a Russian-built satellite that failed in 2015 only four years into its expected 15-year service life.