After signing a Memorandum of Understanding (MOU) with Arab Satellite Communications Organization (Arabsat) in March 2024, Telesat announced it has a term sheet with the organization for the Lightspeed constellation.
The term sheet is for a multi-Gbps capacity pool of Telesat Lightspeed connectivity services.
Telesat stated in a press release that “this agreement establishes the negotiated framework for Arabsat’s integration of Telesat Lightspeed LEO services, backed by Committed Information Rates (CIRs) and Service Level Agreements (SLAs), into its multi-orbit satellite ecosystem.” The release added that they expect “to conclude definitive agreements by December 2025.”
Dan Goldberg, Telesat’s President and CEO said, “We’re excited to achieve this important milestone in our strategic partnership with Arabsat, a premier satellite operator, which will bring innovative connectivity advancements to their customers across the Middle East, Africa, Europe and Central Asia. In addition to the inherent security and reliability features of Telesat Lightspeed, Arabsat will have unprecedented flexibility to design, manage and control services to their customers, through Telesat’s interoperable lifecycle orchestration systems.”
Arabsat President and CEO Alhamedi Alanezi added, “This agreement with Telesat marks a major milestone in Arabsat’s multi-orbit strategy and the advanced Telesat Lightspeed network will offer innovative capabilities to our customers in each of the markets we serve. By offering LEO and GEO service, as well as blended combinations, we are laying the foundation for a new era of connectivity. Multi-orbit satellite systems and terminals will position the Arabsat Group at the forefront of digital transformation—delivering faster, more reliable, and cost-effective connectivity tailored to the distinct performance needs of each industry.”
The news follows Telesat’s quarterly earnings call on May 6 where the company reiterated its 2025 guidance saying, “revenues are expected to be between $405 million and $425 million, adjusted EBITDA will be between $170 million and $190 million on a consolidated basis.”