BT plc, NSSLGlobal and Viasat Form Alliance to Deliver Innovation in UK MOD Satellite Communications Capabilities

Rhea-AI Summary

On June 17, 2020, BT plc, NSSLGlobal Ltd, and Viasat UK Ltd announced a strategic alliance focused on enhancing UK defense satellite communications (SATCOM). This partnership aims to bid for the MOD's 'Service Delivery Wrap' segment of the Skynet 6 program, with awards expected in 2022. The alliance leverages the partners' extensive experience and capabilities to deliver advanced SATCOM solutions, support cybersecurity, and modernize the UK Armed Forces. This collaboration is anticipated to bolster the UK's defense and space sectors significantly.

Positive

• The alliance positions Viasat UK to bid for the MOD's critical Skynet 6 SATCOM program component.
• Viasat's future ViaSat-3 constellation is set to enhance its GEO satellite capacity, making it a leading provider.

Negative

• Risks associated with satellite launch and operation could impact the alliance's performance.
• Potential delays in developing new technologies may hinder the alliance's objectives.

LONDON, June 17, 2020 /PRNewswire/ -- Industry-leading global communications companies, BT plc (BT), NSSLGlobal Ltd and Viasat UK Ltd., a subsidiary of Viasat, Inc. (NASDAQ: VSAT), today announced an alliance to deliver critical defence satellite communications (SATCOM) services, and support modernisation of the UK's defence and space sectors. The Alliance has come together to respond to major UK MOD programmes, including bidding for the 'Service Delivery Wrap' (SDW) component of Skynet 6, a MOD SATCOM programme that is expected to be awarded in 2022. The Alliance will provide fully managed best-in-class SATCOM solutions.  

In addition to supporting current MOD programmes, the Alliance is strongly positioned to contribute to the developing UK agenda around defence and space technologies. The Alliance provides leadership in SATCOM, cybersecurity, service delivery, tactical networking, artificial intelligence and emerging technologies.

All three companies bring exceptionally strong track records in working with the MOD and other defence and government organisations around the world.

• BT plc: Under the MOD's Defence Fixed Telecommunications Service (DFTS) contract, BT has more than 20 years of experience in providing highly-secure, resilient connectivity and voice, data and video conferencing services to 2,000 MOD sites in the UK and overseas. As part of the MOD's Integrated User Services (IUS) contract, BT provides fixed and mobile voice services to hundreds of thousands of military personnel in the UK and globally.
• NSSLGlobal: The UK company, NSSLGlobal, is an established provider in the existing Skynet 5 UK MOD contract eco-system. Since 1982, NSSLGlobal has been providing communications technology for the Royal Navy delivering custom SATCOM and engineering solutions for all Royal Navy platforms. In addition, NSSLGlobal supports Royal Air Force platforms and Army users with lightweight, rapidly deployable commercial SATCOM capabilities.  NSSLGlobal works closely in partnership with the UK MOD on projects needing engineering innovation, bringing maximum performance and value for money for secure operational traffic and welfare connectivity services.
• Viasat UK Ltd: Viasat UK Ltd. provides deep security and communications expertise to rapidly deliver new sovereign technologies to the UK defence and civilian markets. Specific to the UK defence market, Viasat UK Ltd., works closely with Viasat Inc., which has been recognised for developing an expansive portfolio of capabilities across SATCOM, tactical networking, information assurance and cybersecurity. Today, Viasat Inc. has more capacity on orbit than any other private sector SATCOM provider in the world, and with its future ViaSat-3 constellation, the Company expects to have more geostationary earth orbit (GEO) satellite capacity on orbit than every private sector GEO SATCOM provider combined. Viasat Inc.'s security, encryption, next-generation tactical data links and SATCOM systems are also currently used across multiple UK MOD programmes, from the Royal Air Force's new F-35 stealth fighter to Royal Navy warships.

Ed Stainton, director of Major Government, BT, said, "The combined strengths of this new alliance will bring leading edge technical expertise to the MOD across maritime, air, land, space and cyber environments. We will build on a strong innovation culture, and access to best-of-breed technologies to work collaboratively with our alliance partners, to deliver military-grade, mission-critical communications services to the MOD and other government departments. For BT, this is an example of how we are striving to do the best for our customers and for our country."

Neil Fraser, director – Defence and Space Programmes, NSSLGlobal, said, "As a British company, we have a strong 40-year 'tried and tested' heritage of working in partnership with the UK Armed Forces. The expertise of our dedicated staff and engineers is one of our key assets, providing innovative communications across sea, land and air. The strength of this alliance is embedded in our shared values of providing excellent service and our complementary skills and expertise."

Steve Beeching, managing director, Government Systems, Viasat UK Ltd., added, "We bring deep expertise in working with the MOD and an extensive track record of innovative credentials to this team. In collaborating with BT and NSSLGlobal, we will be able to provide crucial advancements from the defence and commercial sectors to quickly modernise the UK's Armed Forces capabilities and make the battlespace network of the future a reality for our service men and women. Together, this alliance is poised to become a national asset to the MOD for current and future communications and space programmes as it has the ability to enhance information advantage by utilising some of the world's leading SATCOM, tactical networking, cyber and emerging defence technologies."

The UK MOD launched the SDW competition on 5 November 2019 in support of the Skynet 6 programme. The SDW programme will comprise a five-year service management effort in support of Skynet 6 and replace the current Skynet 5 contract scheduled to deliver SATCOM services to the UK MOD until August 2022.

About BT
BT's purpose is to use the power of communications to make a better world. It is one of the world's leading providers of communications services and solutions, serving customers in 180 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to its customers for use at home, at work and on the move; broadband, TV and internet products and services; and converged fixed-mobile products and services.  BT consists of four customer-facing units: Consumer, Enterprise, Global and Openreach.

For the year ended 31 March 2020, BT Group's reported revenue was £22,905m with reported profit before taxation of £2,353m. British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on the London stock exchange. For more information, visit www.btplc.com

About NSSLGlobal
NSSLGIobaI is a leading independent provider of satellite communications and IT management solutions with innovation and customer service at the core of its DNA. With over 50 years of experience in the government and maritime mobility markets,  NSSLGlobal provides best-in-class satellite and engineering solutions providing a bearer agnostic baseband solution utilising a variety of IP bearers including C-, Ka-,  Ku-, L-Band and 3G or any other IP platform, providing connectivity into Restricted and Secret MoD/Govt systems via our MOD approved Gateways. It partners with some of the largest MSS and VSAT satellite operators including Inmarsat, Iridium and Thuraya, Telesat, Eutelsat, Intelsat, SES and JCSAT. With over forty percent of its company consisting of highly specialised engineers, many of who are ex-armed forces, NSSLGlobal understands the needs of its government customers and develops bespoke solutions to very specific requirements. From the systems development activities in UK to its R&D arm in Norway the company owns the SatLink hub and modem technology ensuring a secure end-to-end service.  Headquartered in the United Kingdom, it has offices worldwide.
www.nsslglobal.com  
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About Viasat, Inc.
Viasat is a global communications company that believes everyone and everything in the world can be connected. For more than 30 years, Viasat has helped shape how consumers, businesses, governments and militaries around the world communicate. Today, the Company is developing the ultimate global communications network to power high-quality, secure, affordable, fast connections to impact people's lives anywhere they are—on the ground, in the air or at sea. To learn more about Viasat, visit: www.viasat.com, go to Viasat's Corporate Blog, or follow the Company on social media at: Facebook, Instagram, LinkedIn, Twitter or YouTube.

Forward-Looking Statements
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements include statements that refer to the features and benefits of the alliance between BT, NSSLGlobal and Viasat and the services it will provide; MOD and UK Government spending plans; and ViaSat-3 future capacity. Readers are cautioned that actual results could differ materially and adversely from those expressed in any forward-looking statements. Factors that could cause actual results to differ include: risks associated with the construction, launch and operation of satellites, including the effect of any anomaly, operational failure or degradation in satellite performance; contractual problems; product defects; manufacturing issues or delays; regulatory issues; technologies not being developed according to anticipated schedules, or that do not perform according to expectations; and increased competition and other factors affecting the government and defence sectors generally. In addition, please refer to the risk factors contained in Viasat's SEC filings available at www.sec.gov, including Viasat's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. Viasat undertakes no obligation to update or revise any forward-looking statements for any reason.

Copyright © 2020 Viasat, Inc. All rights reserved. Viasat, the Viasat logo and the Viasat signal are registered trademarks of Viasat, Inc. All other product or company names mentioned are used for identification purposes only and may be trademarks of their respective owners.

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SOURCE Viasat, Inc.

FAQ

What is the significance of the alliance between BT, NSSLGlobal, and Viasat?

The alliance aims to enhance UK defense satellite communications, specifically targeting the MOD's Skynet 6 program.

What program are the companies bidding for?

They are bidding for the 'Service Delivery Wrap' component of the Skynet 6 MOD SATCOM program.

When is the award for the Skynet 6 program expected?

The award for the Skynet 6 program is expected in 2022.

What expertise does Viasat UK bring to the alliance?

Viasat UK brings deep security and communications expertise to support modernizing the UK defense capabilities.