Inmarsat seals deal to bring Global Xpress to China
Inmarsat (LON:ISAT) has inked four new Value Added Reseller (VAR) agreements with Beijing Marine Communication Navigation Co. (MCN), paving the way for Global Xpress in China. The deal, which was signed last week, will make the mobile broadband service available to commercial and public sector organisations across China.
“From emergency first responders to those delivering remote education (e-learning) services, Global Xpress will bring the benefits of seamless, superfast connectivity to every region in China, while ensuring that Chinese companies — from airlines to shipping fleets — can enjoy the same high capacity service wherever they are in the world,” Inmarsat’s CEO, Rupert Pearce, said in a group statement dated April 1. Voicing his confidence over future demand for Global Express in the Asian country, he added that China was among Inmarsat’s largest markets, delivering double-digit growth in the last five years.
Inmarsat, which is investing $1.6 billion to build the Global Xpress network, provides satellite services in China exclusively through retail partners. The FTSE 250-listed firm and MCN have worked together since 1979. The Chinese group is one of the companies that has delivered Inmarsat communications services to customers such as Air China, China National Petroleum Corporation and China Central Television.
Inmarsat’s share price has been trading higher today. As of 09:45 BST, the stock was changing hands at 947.50p – 1.07 percent up intraday. The mobile satellite communications services provider has seen the value of its stock rise by over a quarter in the past year. AlphaValue restated its ‘reduce’ rating on Inmarsat’s shares in a report issued last week. The broker currently has a 990p target price on the stock.
As of 10:43 BST, Tuesday, 07 April, Inmarsat Plc share price is 946.75p.