Kypros Satellites was incorporated in October 2006, with a vision to build, launch and operate a global satellite constellation of high capacity satellites. In January 2008, the company received a license from the government of the Republic of Cyprus to use orbital slots registered through the Cyprus administration. Since then, Kypros Satellites has applied for and been granted priority rights to nine (9) orbital slots by the International Telecommunications Union (ITU). The company has also submitted ITU filings to backup five (5) of its prioritized orbital slots and initiated the ITU filing process for additional orbital slots.
Kypros Satellites’ strategy is to monetize the spectrum resources associated with these orbital slots. The diagram above illustrates the elements of this strategy. The underlying business is the purchase, sale, trade or lease of orbital slots or portions thereof (through spectral and spatial partitioning). It should be noted that the company’s spectrum assets have significant intrinsic value particularly those orbital slots with large blocks of unencumbered commercial and government Ka-band spectrum. High quality orbital slots which are broadly free and clear of frequency plan limitations are in demand by new and incumbent satellite operators; hence our management’s enthusiasm for the growth in global IP traffic and the future of broadband services via satellite. For Kypros Satellites, however, acquiring and managing orbital slots is largely a means to an end, and serves only to leverage transactions, facilitate projects and, on occasion, generate some additional cash flow to support other projects.
Kypros Satellites will also combine its spectrum resources with its other strategic competencies to provide customers with satellite assets on a turnkey basis. The challenges associated with building and operating communications satellites are significant. Even the savviest commercial and government clients do not have the requisite in-house expertise, or the foresight to secure spectrum in a timely way. Kypros Satellites sees a real opportunity to alter this relationship by enabling the largest capacity users essentially to purchase or lease their own custom configured satellites. In essence, Kypros Satellites will abstract the entire process from initial concept to in-orbit delivery so that clients can focus on marketing and selling their services to end users.
The third business will capitalize on specific market opportunities (e.g. maritime, broadcast, wireless backhaul, consumer broadband, etc.) in collaboration with strategic partners from inside and outside the satellite industry. It is also the business in which Kypros Satellites will leverage its knowledge of advanced payload technologies and its abundance of spectrum resources to disrupt the market by deploying enormous amounts of bandwidth at the absolute lowest cost.