This is according to the announcement published by the company on the stock exchange. The satellite is expected to replace the Amos 2 satellite in 2016
From a booklet issued by the Space Company in 2003 for the launch of Amos 2
Space-Communications and the Israel Aerospace Industries signed an agreement according to which the company ordered from the IEA the design, production, preparation for launch and operation of the Amos 6 satellite intended to expand the company's services in the activity sector 4 degrees west and to replace the Amos 2 satellite which is expected to end service during the year 2016.
The Aerospace Industry reports in this context that significant technological improvements have been introduced in Amos-6 and it is among the most advanced of its kind in the world. The satellite incorporated, among other things, an electric drive technology that enables significant savings in weight and launch cost. The satellite brings the aerospace industry into the field of large communication satellites with a launch weight of 5,500 kg and a 9000 watt TDD power. The communications tower includes receivers in three frequency bands - Ku, Ka and S and enables the provision of a wide variety of communication services including satellite internet directly to the home.
IAI is currently simultaneously building two communication satellites: Amos-4 to be launched next year and Amos-6.
At the same time, several agreements were signed: the first agreement is the agreement for the purchase of the satellite. The second agreement is an agreement to operate and provide expert support services for the duration of the life of Amos 6. Another agreement is actually an amendment to the purchase agreement of Amos 3 that reduces the right of the IAA to participate in the revenues from; The Amos 3 satellite starting from the 12th year, from 20% to 10%. as well as the wording of the compensation amendment according to the Amos 5 operating agreement that limits the annual operating fees in Amos 5 and their rate of increase, up to a maximum agreed upon amount.
Below is a breakdown of the main issues in the Amos 6 purchase agreement and the agreements attached to it:
The TAA will produce the Amos 6 satellite for the company and deliver it to the company's ownership in orbit, at a sky position 4 degrees west (the current sky position of the Amos 2 and Amos 3 satellites), with the date of delivery and the start of service being set no later than August 1.08.2015, 195. The total consideration for the purchase of the satellite, its operation and the ground equipment amounts to approximately XNUMX million dollars. Launch services and satellite launch insurance will be purchased separately by the company.
According to the agreement, the lifespan of the satellite is at least 16 years, with at least 15 of them being insurable. The company's estimates are that the capacity occupancy of the space segments on Amos 6 will stabilize after several years of post-launch increase in occupancy, at about 80% of the total capacity of Amos 3.
The company must spend direct expenses for the maintenance and insurance of the satellite, which may change depending on the amount of satellites operated by it through the TEA and according to the cost of insurance and the insurance amount of the satellite, which decreases over the years. The sum of the above direct expenses is estimated at an average amount over the years of about 5 million dollars every year.
It should be noted that any addition of a satellite also requires an increase in indirect expenses such as an increase in the number of sales managers, marketing expenses and administrative and general expenses.
2. The main obligations of the IAA according to the agreements: the planning and production of the Amos 6 satellite, its preparation for launch and its delivery at the designated space point. A commitment to support the launch activities and to provide all the information required to purchase the launch insurance and the insurance of the satellite in orbit, to perform the required activities after the separation from the launch vehicle until the satellite arrives at the point and perform the tests in orbit.
The aviation industry is also obligated to supply equipment to the primary ground operation station and the redundant ground operation station, providing operational services in the format provided today to the company's satellites for the life of the satellite. Providing expert support services for the lifetime of the satellite. Purchase of pre-launch insurance in accordance with the accepted conditions in the industry, when the company is registered, the pre-launch insurance will be valid until (Loss Payee) as the beneficiary to receive the insurance funds the date on which the satellite launch insurance, which will be purchased by the company, will come into force.
The price for the supply of the Amos 6 satellite, the ground equipment and the operation of the satellite is about 195 million US dollars plus VAT. A payment in the amount of 5 million dollars was paid to TEA until the signing of the contract on account of the consideration, and the balance will be paid in accordance with a schedule of payments throughout the life of the project conditional on meeting established milestones and in accordance with the agreed payment terms.
If the TEA makes the satellite ready for launch earlier than the date stipulated in the agreement, it will be entitled to a bonus for early delivery of up to an additional 3 million dollars, depending on the date of introduction. Delays in the date of delivery of the satellite for launch that are not the fault of the company, the launch company or force majeure, will entitle the company to a reduction in the price of the satellite in an aggregate amount of up to 10 million dollars. In the event that the delay continues or is expected to continue, for more than an agreed upon period beyond the date set for the delivery of the satellite, the company will be entitled to cancel the agreement due to its violation by the IAA.
If the lifespan of the Amos 6 satellite exceeds 17 years, the IAA will be entitled to a bonus for each year of activity beyond the 17th year of the Amos 6 satellite, at the rate of 20% of any amount received by the company from Amos 6 customers, for each additional year of activity (or a proportional part for less than a year). The consideration in the agreement includes operational services (including expert support) for Amos 6 by the IAA.
Chalal Communications plans to finance the purchase of Amos 6 from the IAA through its own sources, financing
from a consortium consisting of foreign banks engaged in export support in countries where suppliers are located
Main equipment and services for the project and the IAA. The array of financing agreements is under negotiation with the potential financing parties.
As mentioned, in addition to the purchase agreement with the IEA, as mentioned above, the company entered into an agreement with the Israeli government to provide satellite services in Amos 6 for the life of the satellite, with a total value of 20 million dollars.
The essence of the agreement and the service period: the company will assign the respondents and the right to use the beam in the agreed frequency range for the government's use, for the life of the satellite, and will provide the government with related services. The capacity used by the government will not be vacated or taken from the government without the government's consent.
In exchange for the commitment to make the capacity available for government use in Amos 6, the government will pay the company a sum equal to 20 million US dollars plus VAT.
