NewSat scores additional US military contract

Will provide 'welfare communication' services to US troops in Afghanistan

NewSat (ASX: NWT) has picked up a new contract, worth up to $8.8 million over two years, to supply satellite communication services to US troops based in Afghanistan.

The deal will involve the provision of ‘welfare communications’ — communications with friends and family in the US — for military personnel based in 15 locations in the country.

According to NewSat chief executive, Adrian Ballintine, the company has been a “long term provider” to the US military.

“Our expertise and relationships in this market will service us well for our first geostationary communications satellite, Jabiru-1, which will focus on high value customers in the military, defence and government markets as well as other high value enterprise segments such as resources,” he said in an ASX statement.

The deal follows a number of new business wins for the satellite communications provider including a $1 million for a number of resource sector jobs, $2 million for communications along the liquid natural gas pipeline in Queensland, and $2.4 million for an existing US military contract for services in southern Afghanistan.

According to Ballintine, the company’s Jabiru-1 satellite — slated for launch in 2012 —continued to attract customers.

Ballintine also recently voiced suspicions NBN Co was planning to, and had already contacted, some of NewSat’s clients with an eye to bypassing the satellite communications provider.

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