Inmarsat Share News (ISAT)

LONDON (Alliance News) - Inmarsat PLC Monday said it has triggered an option to buy a fourth Inmarsat-5 satellite for its Global Xpress broadband network rollout from Boeing Satellite Systems International Inc and expects delivery to take place in mid-2016.

The satellite operator said the new satellite will initially be used as a spare in case there is a launch failure with on of the first three Inmarsat-5 satellites, and, if it isn't needed for that, the company is building a business case to support the launch of the satellite to increase capacity and enhance network coverage on the Global Xpress broadband project the 5-series satellites will be used for.

The company claims GX will be the first globally available high-speed broadband network.

By ordering a potentially spare satellite now, rather than in the event of a launch failure of one of the other three satellites, the company says it will be sure it can get the GX project up and running fast.

"Our confidence in the Global Xpress programme and our target market opportunities continues to grow," Inmarsat Chief Executive Rupert Pearce said in a statement. "We have signed multiple pre-sale agreements and received significant expressions of interest, some of which are tied to the completion of global coverage with three satellites."

"This has encouraged us to not only move to a strategy to physically insure our global service date with a fourth satellite, but also to consider incremental opportunities that have emerged and could drive enhanced returns via the launch of a fourth satellite," he added.

Boeing will start to build the new satellite straight away. Inmarsat said the cost of the option and related spending will be between USD220 million and USD250 million.

Inmarsat shares were up 0.1% at 704.5 pence Monday morning.

By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1

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