CNH Expands Network Connectivity With Intelsat Collaboration

Rhea-AI Summary

CNH has partnered with Intelsat to provide ruggedized satellite communications (SATCOM) solutions for farmers, making them the first to offer this service. The collaboration will allow CNH's Case IH, STEYR, and New Holland customers to access the internet via Intelsat's multi-orbit network, enhancing productivity and yield through precision agriculture. The service will be launched in Brazil in the second half of 2024, with plans to expand to the U.S., Australia, and other regions. Intelsat's industrial-grade terminals are proven to withstand extreme farming conditions and will be installed and supported by Case IH and New Holland dealers.

Positive

• CNH and Intelsat collaboration enhances CNH's market position with advanced SATCOM solutions.
• Launch of service in Brazil targets a significant market with only 19% high-speed internet coverage in agricultural areas.
• Expansion plans to the U.S., Australia, and other regions indicate future growth opportunities.
• Intelsat's rugged, industrial-grade terminals ensure reliable service under extreme conditions.
• Improved productivity and yield through precision agriculture using enhanced internet connectivity.
• Support and installation by Case IH and New Holland dealers ensure customer ease and convenience.

Negative

• Service launch delayed until the second half of 2024, potentially affecting immediate revenue growth.
• initial market in Brazil, with uncertainties around the speed of expansion to other regions.
• Potential high costs associated with SATCOM hardware and installation could deter some customers.
• Reliance on Intelsat's technology and service quality introduces added dependency risks.

Insights

Tech Expert

The collaboration between CNH and Intelsat introduces a significant advancement in agricultural technology. By leveraging Intelsat's satellite communication capabilities, farmers will gain access to reliable internet connectivity even in remote locations. This development is key to enabling precision agriculture, where connected machines operate more efficiently by sharing data and receiving real-time instructions from the farmer.

Precision agriculture relies heavily on data-driven decisions to optimize productivity and yield. Reliable internet access is important for seamless data exchange between machines and the cloud. Intelsat's multi-orbit satellite network ensures consistent and high-speed connectivity, overcoming the limitations of cellular networks, which cover only about 33% of the world's surface. This move can significantly enhance the adoption of smart farming technologies, particularly in regions like Brazil, where only 19% of agricultural areas currently have high-speed internet access.

Given Intelsat's proven track record in providing rugged SATCOM solutions for critical applications, this collaboration promises a robust solution tailored to the harsh conditions of farming environments. This partnership is likely to accelerate the digitization of agriculture, leading to better resource management and higher efficiency for farmers.

Market Research Analyst

This partnership addresses a vital need in the agricultural sector—connectivity in remote areas. CNH’s move to collaborate with Intelsat offers a unique value proposition to farmers who face challenges due to lack of internet access. The agricultural market is witnessing a shift towards smart farming and having reliable internet connectivity is foundational for this transformation.

The initial rollout in Brazil is strategic. With only 19% of agricultural areas having high-speed internet, there's a substantial market opportunity. As the service expands to other regions like the U.S. and Australia, CNH and Intelsat can tap into new markets, enhancing their revenue streams. Additionally, this collaboration differentiates CNH’s brands—Case IH, STEYR and New Holland—by offering a distinct technological advantage.

The value added by this service could lead to increased brand loyalty and customer retention. Farmers who can maximize their productivity through connected machinery and reliable data will likely see significant improvements in their operations. This strategic move positions CNH and Intelsat at the forefront of the agricultural technology sector, driving long-term growth and competitiveness.

Financial Analyst

The financial implications of CNH's partnership with Intelsat are notable. By integrating SATCOM services into their product offerings, CNH potentially opens up new revenue streams and strengthens their market position. This move aligns with the growing trend towards precision agriculture, which is expected to see increased investment as farmers seek to optimize productivity and efficiency.

In the short term, the collaboration may require significant investment in infrastructure and technology deployment. However, the long-term benefits, such as enhanced product differentiation and improved customer satisfaction, are likely to outweigh these initial costs. Farmers who experience tangible benefits from improved connectivity may be willing to invest in CNH's premium solutions, leading to higher sales and a broader customer base.

This strategic alliance could also improve CNH's market valuation by showcasing their commitment to innovation and customer-centric solutions. Investors may view this as a positive indicator of the company's future growth potential, making CNH a more attractive investment option.

Moreover, by being early adopters of multi-orbit satellite connectivity, CNH and Intelsat set themselves apart in the competitive landscape, potentially driving market share gains.

NORTHAMPTON, MA / ACCESSWIRE / June 14, 2024 / CNH

World class equipment and services company, CNH and Intelsat, have joined up to be the first to provide farmers with access from wherever they are to the internet via a ruggedized satellite communications (SATCOM) service.

Intelsat, operator of one of the world's largest integrated satellite and terrestrial communication networks, will provide multi-orbit internet access to connect CNH equipment working in remote locations and easy-to-use satellite terminals ready to handle the challenging environment on a farm.

With 60 years' experience in SATCOM, Intelsat's capabilities span geosynchronous and low-Earth orbits, offering CNH brands Case IH, STEYR and New Holland customers SATCOM coverage that is unparalleled in the market. Intelsat's rugged, industrial-grade terminals already serve critical industrial applications, including for the military and airlines. Case IH, STEYR and New Holland customers will use a rigorously tested terminal that connects easily and is proven to withstand extreme weather conditions and the vibration and shock produced by farming equipment and activity.

This offering will be first available in the second half of 2024 to farmers in Brazil, where ConectarAgro's Rural Connectivity Indicator found only 19% of the area available for agricultural use has high-speed internet access. Customers will be able to rely on their Case IH and New Holland dealers to install and support Intelsat's hardware and service activation. Subsequently, the companies plan to expand their collaboration to the U.S., Australia, and other regions.

Internet connectivity is central to realizing gains in productivity and yield through precision agriculture, as Case IH, STEYR and New Holland farmers' intelligent machines connect and coordinate with one another while they work. They also communicate with the farmer via the cloud, exchanging data securely and receiving the farmer's highly specified directions for the jobs they execute. While many customers fulfill this need for internet connectivity with CNH's market-leading global mobile virtual network, existing cellular towers do not enable pervasive connection. According to the Food and Agriculture Organization of the United Nations, less than 33% of the world's surface has mobile network coverage.

"Satellite technology helps solve complex connectivity challenges for hard-to-reach farms, but not all providers are equal. Intelsat stands out for their depth of experience as well as the quality and reliability of their service and industrial terminal offerings. They get what it means to be rugged. We look forward to serving customers around the world with their solution," said Marc Kermisch, Chief Digital and Information Officer at CNH.

"As the first satellite communications company to provide multi-orbit connectivity to farmers around the world, Intelsat's collaboration with CNH will unlock new capabilities in the most remote locations through our global communications platform," said Dave Wajsgras, CEO of Intelsat. "We've proven that ruggedized, built-for-purpose terminals that can access multiple satellite orbits from anywhere on Earth offer the highest network reliability, greater throughput and the best user experience."

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Contact Info:
Spokesperson: CNH
Website: https://www.3blmedia.com/profiles/cnh
Email: info@3blmedia.com

SOURCE: CNH

View the original press release on accesswire.com

FAQ

What is the CNH collaboration with Intelsat about?

The collaboration aims to provide ruggedized satellite communications (SATCOM) solutions to farmers, enhancing internet connectivity in remote areas.

When will CNH and Intelsat's SATCOM service be available?

The service will be launched in Brazil in the second half of 2024, with plans for expansion to other regions.

Which CNH brands will benefit from the Intelsat collaboration?

Case IH, STEYR, and New Holland customers will benefit from the collaboration.

How does Intelsat's technology benefit farmers?

Intelsat's multi-orbit network and rugged terminals provide reliable internet connectivity, enhancing productivity and yield through precision agriculture.

What regions will the CNH and Intelsat SATCOM service expand to after Brazil?

The service is planned to expand to the U.S., Australia, and other regions.

How will the SATCOM hardware be installed and supported?

Case IH and New Holland dealers will handle the installation and support of Intelsat's hardware and service activation.

What percentage of agricultural areas in Brazil currently have high-speed internet access?

Currently, only 19% of the area available for agricultural use in Brazil has high-speed internet access.

What challenge does Intelsat's SATCOM service address for CNH customers?

The service addresses the challenge of internet connectivity in remote farming locations, which existing cellular networks cannot cover comprehensively.