Arabsat selects Telesat Lightspeed Low Earth Orbit (LEO) services for its multi-orbit connectivity portfolio

Rhea-AI Summary

Telesat (NASDAQ/TSX: TSAT) and Arab Satellite Communications Organization (Arabsat) have signed a Term Sheet for multi-Gbps capacity of Telesat Lightspeed connectivity services. The agreement, signed at CABSAT 2025 in Dubai, follows their 2024 MoU and establishes a framework for Arabsat to integrate Telesat Lightspeed LEO services into its multi-orbit satellite ecosystem. The partnership will provide broadband connectivity solutions for enterprise, telecom, government, and mobility sectors, featuring Committed Information Rates (CIRs) and Service Level Agreements (SLAs). The companies expect to finalize definitive agreements by December 2025.

Positive

• Strategic partnership enhancing Arabsat's multi-orbit capabilities with LEO services
• Expansion into key markets across Middle East, Africa, Europe and Central Asia
• Potential for new revenue streams through enterprise, telecom, government, and mobility sectors

Negative

• Final agreements not yet concluded, pending until December 2025
• Specific financial terms and capacity details not disclosed

Insights

Satellite Communications Analyst

Telesat's strategic partnership with Arabsat creates new revenue potential and expands Lightspeed's market reach across multiple regions.

The term sheet agreement between Telesat and Arabsat represents a significant advancement in Telesat's commercialization strategy for its Lightspeed LEO constellation. This multi-Gbps capacity agreement with Arabsat, the dominant satellite operator across the Arab world, creates a substantial foothold for Telesat in the Middle East, Africa, Europe, and Central Asia - regions experiencing growing demand for high-performance connectivity.

The partnership's structure is particularly notable. Rather than a simple capacity lease, this appears to be a wholesale arrangement enabling Arabsat to integrate, manage, and control Telesat's LEO services within their existing ecosystem. This business model allows Telesat to leverage Arabsat's established market position and customer relationships without building their own regional sales infrastructure.

For Telesat, securing anchor customers like Arabsat before the Lightspeed constellation is fully deployed creates critical revenue visibility. While this announcement confirms term sheet signing, investors should note the deal remains subject to definitive agreements expected by December 2025, indicating several months before formal contractual commitments.

The multi-orbit integration strategy highlights a significant industry trend. By combining LEO's low latency with GEO's wide coverage, Arabsat can offer optimized solutions for various use cases. Enterprise customers gain reliable primary connectivity with LEO backup, while mobility applications like maritime and aviation benefit from seamless orbital handovers. This hybrid approach addresses specific vertical market requirements, potentially accelerating Telesat's market penetration through Arabsat's established customer base.

DUBAI, United Arab Emirates, May 14, 2025 (GLOBE NEWSWIRE) -- Telesat (NASDAQ and TSX: TSAT), one of the world’s largest and most innovative satellite operators, and Arab Satellite Communications Organization (Arabsat), the top satellite service provider in the Arab world, today announced the companies have successfully negotiated and signed a Term Sheet for a multi-Gbps capacity pool of Telesat Lightspeed connectivity services. The companies executed the agreement today during a signing ceremony at the CABSAT 2025 event in Dubai.

Building on the Memorandum of Understanding (MoU) signed in 2024, this agreement establishes the negotiated framework for Arabsat’s integration of Telesat Lightspeed LEO services, backed by Committed Information Rates (CIRs) and Service Level Agreements (SLAs), into its multi-orbit satellite ecosystem, ensuring robust and seamless broadband connectivity solutions tailored for enterprise, telecom, government, and mobility sectors. The parties expect to conclude definitive agreements by December 2025.

“This agreement with Telesat marks a major milestone in Arabsat’s multi-orbit strategy and the advanced Telesat Lightspeed network will offer innovative capabilities to our customers in each of the markets we serve,” said President and CEO Alhamedi Alanezi. “By offering LEO and GEO service, as well as blended combinations, we are laying the foundation for a new era of connectivity. Multi-orbit satellite systems and terminals will position the Arabsat Group at the forefront of digital transformation—delivering faster, more reliable, and cost-effective connectivity tailored to the distinct performance needs of each industry.”

“We’re excited to achieve this important milestone in our strategic partnership with Arabsat, a premier satellite operator, which will bring innovative connectivity advancements to their customers across the Middle East, Africa, Europe and Central Asia,” stated Dan Goldberg, Telesat’s President and CEO. “In addition to the inherent security and reliability features of Telesat Lightspeed, Arabsat will have unprecedented flexibility to design, manage and control services to their customers, through Telesat’s interoperable lifecycle orchestration systems.”

About Telesat

Backed by a legacy of engineering excellence, reliability and industry-leading customer service, Telesat (Nasdaq and TSX: TSAT) is one of the largest and most innovative global satellite operators. Telesat works collaboratively with its customers to deliver critical connectivity solutions that tackle the world’s most complex communications challenges, providing powerful advantages that improve their operations and drive profitable growth.

Continuously innovating to meet the connectivity demands of the future, Telesat Lightspeed, the company’s state-of-the-art Low Earth Orbit (LEO) satellite network, has been optimized to meet the rigorous requirements of telecom, government, maritime and aeronautical customers. Telesat Lightspeed will redefine global satellite connectivity with ubiquitous, affordable, high-capacity, secure and resilient links with fibre-like speeds. For updates on Telesat, follow us on LinkedIn, X, or visit www.telesat.com.

About Arabsat

Established in 1976, Arabsat is an initiative launched by 21 Arab countries and is wholly owned by the Arab League. It is considered the first provider of satellite services in the Arab world and enjoys an advanced position among satellite operators globally.

Thanks to a fleet of 8 satellites, equipped with state-of-the-art technologies, Arabsat is adept at providing a full spectrum TV and radio broadcast, telecommunications, broadband, advanced data transmission network solutions, and a range of satellite ecosystem services as well as multi-channel communications services, in addition to Internet services for government and commercial entities around the MENA region.

Arabsat provides satellite and Internet broadcast services for more than 260 encrypted television networks and HD channels. It provides its services through advanced technologies, ensuring the highest quality to over 650 TV channels and more than 245 radio stations, reaching tens of millions of households in more than 100 countries in the Middle East, Africa, Europe, and Central Asia. These channels and stations are followed by more than 300 million viewers in 21 Arab countries.

Arabsat seeks to empower itself as the world’s best satellite operator. To do so, it follows an approach based on passion, stimulating innovation, and developing partnerships with the most prestigious satellite companies worldwide. This approach enabled Arabsat to acquire Hellasat, the most prominent satellite company in Southeastern Europe. In addition, Arabsat signed agreements with value-added services integration and advanced technology companies, which paved the way to launch Badr 8, the latest seventh generation satellite in its fleet. Furthermore, Arabsat aspires to launch more satellites equipped with optical communications technologies, which represent a real addition to the Arab satellite communications ecosystem.

Media Contacts:

W2 Communications for Telesat
telesat@w2comm.com

Arabsat Public Relations
publicrelations@arabsat.com

Telesat’s Forward-Looking Statements Safe Harbor

This news release contains statements that are not based on historical fact and are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Canadian securities laws. When used herein, statements which are not historical in nature, or which contain the words “will,” “expects,” or similar expressions, are forward-looking statements. Actual results may differ materially from the expectations expressed or implied in the forward-looking statements as a result of known and unknown risks and uncertainties. All statements made in this press release are made only as of the date set forth at the beginning of this release. Telesat Corporation undertakes no obligation to update the information made in this release in the event facts or circumstances subsequently change after the date of this press release.

These forward-looking statements are based on Telesat Corporation’s current expectations and are subject to a number of risks, uncertainties and assumptions. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond Telesat Corporation’s control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. There are numerous risks and uncertainties associated with Telesat’s business and the Telesat Lightspeed constellation. Known risks and uncertainties include but are not limited to: inflation and rising interest rates; tariffs; Telesat’s ability to meet the funding conditions of its funding agreements with the Government of Canada and Government of Quebec; technological hurdles, including our and our contractors’ development and deployment of the new technologies required to complete the constellation in time to meet our schedule, or at all; the availability of services and components from our and our contractors’ supply chains; competition; risks associated with domestic and foreign government regulation, including access to sufficient orbital spectrum to be able to deliver services effectively and access to sufficient geographic markets in which to sell those services; Telesat’s ability to develop significant commercial and operational capabilities; risks associated with operating satellites and providing satellite services, including satellite construction or launch delays, launch failures, in-orbit failures or impaired satellite performance; and volatility in exchange rates. The foregoing list of important factors is not exhaustive. Investors should review the other risk factors discussed in Telesat Corporation’s annual report on Form 20-F for the year ended December 31, 2024, that was filed on March 27, 2025, with the United States Securities and Exchange Commission (“SEC”) and the Canadian securities regulatory authorities at the System for Electronic Document Analysis and Retrieval (“SEDAR”), and may be accessed on the SEC’s website at https://www.sec.gov/ and SEDAR’s website at https://www.sedarplus.ca/ as well as our subsequent reports on Form 6-K filed with the SEC and also available on SEDAR.

FAQ

What is the significance of the Telesat-Arabsat partnership agreement signed in May 2025?

The agreement establishes a framework for Arabsat to integrate Telesat Lightspeed LEO services into its multi-orbit satellite ecosystem, enabling enhanced connectivity solutions across enterprise, telecom, government, and mobility sectors in the Middle East, Africa, Europe, and Central Asia.

When will the Telesat (TSAT) and Arabsat definitive agreements be finalized?

The companies expect to conclude the definitive agreements by December 2025.

What markets will be served by the Telesat Lightspeed-Arabsat partnership?

The partnership will serve enterprise, telecom, government, and mobility sectors across the Middle East, Africa, Europe, and Central Asia regions.

What are the key features of the Telesat Lightspeed services offered through Arabsat?

The services will include multi-Gbps capacity, Committed Information Rates (CIRs), Service Level Agreements (SLAs), and interoperable lifecycle orchestration systems, offering enhanced security and reliability features.