So I re-read the announcement again to see if I could read into it in the same way you were. I came to the conclusion that I was looking for something that was not there.
If anything I think Mr Palacios is saying that the full constellation will be a force to be reckoned with in the market.
The idea of chipping in some coin is cool though, but at what expense. I think the negotiations are going to be tough. I think SAS well want both the 10% of the un-serviced market as well as a slice of GlobalSats existing IOT/M2M market. GlobalSat will obviously want to expand their markets but will have a balancing act to follow considering their seemingly close ties with Inmarsat and leosat. There is definitely some overlap. Inmarsat could also start putting some pressure on Globalsat.
There also needs to be a fair amount of discussion on how to expand into the un-serviced market. Does SAS just say here is the data now you find the clients, or will SAS play a more active roll as hinted with beeptool.
Does SAS have the opportunity to secure some up front payments or a minimum data and device purchase per year?
Is there some sort of discounting scheme for volume of data/devices.
So many factors, probably more than my simple mind can cater for.
What ever the deal, I do hope they are able to provide some sort of numbers for us measure against.
SAS Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
