Two Chinese Listed Companies Cooperate with Israel Company Gilat For the Purpose of Developing Vehicular Satellite Communication 协同通信

更新时间：2016-10-19 14:22:10

(Reported by intern reporter Wang Zhifu, National Business Daily) The National Development and Reform Commission (NDRC) lately published the Mid- and Long-Term Development Plan for the State's Civic Space Infrastructure (2015-2025) (hereinafter referred to as "the Plan"). The plan proposed to generally complete the state's civic space infrastructure system in the 13th Five-Year Plan period and to develop "space-ground integration" to promote commercial use of satellites.

After the Plan was released, two Chinese listed companies, entered into cooperation with the world-famous satellite communication network product and service provider Gilat successively in November 2015. On November 18, CRRC (601766, SH) began its cooperation with Gilat to build a "global rail transit satellite communication ecological circle". Recently, Synertone (01613, HK) signed a MOU for strategic cooperation and agreement for gateway upgrade with Gilat to jointly build a "space-ground information network".

CRRC Develops "New Satellites" Onboard

The publication of the overarching design for space infrastructure is expected to boost the development of the satellite navigation industry. According to related data, it is predicted that the annual value of the satellite navigation application industry will exceed 400 billion RMB in China in 2020.

According to the research report of GF Securities, the global revenue ratio of satellite manufacturing to satellite application is 1:9. Since the barrier of satellite application is not high, private enterprises can fully participate in competitions. Regarding the operation service, the commercialization of satellite communication and satellite remote-sensing in China is in the start stage and has a bright future with full opportunities.

Under this background, Synertone and Gilat will establish a joint venture company to develop the next-generation satellite communication products.

Gradual application of the satellite broadband service in high-speed rail and civil aviation sectors also brings development opportunities to Chinese satellite service industry, which directly contributes to the cooperation between Gilat and CRRC.

Gilat and CRRC have agreed to co-develop "new satellites". They will jointly develop onboard satellite equipment prototypes of high-speed rail, satellite equipment, and service platforms. Specifically, they will jointly develop and produce onboard satellite communication access systems that meet the requirements of CRRC's different vehicle models, develop a satellite network management platform for CRRC's global operation, and build a "Satcom on the Move" ecosystem throughout the industry.

Synertone also signed a gateway station upgrade and reconstruction technology transfer agreement with Gilat. In addition to introducing Gilat's industry-leading gateway station and VSAT technologies, Synertone will also expand the capacity of the "Synertone 1" broadband satellite system to provide the fastest satellite remote station in the world.

Reporters of National Business Daily noticed that Gilat had intended to cooperate with Synertone earlier. Early on December 10, 2014, Gilat's executive team already visited Synertone, and at that time, the two companies discussed on their cooperation substantively.

Katz, Vice President of Gilat, said, Gilat has the capability of producing and developing satellite ground systems and terminals while Synertone has the largest "Synertone 1" IPSTAR broadband satellite resource in China, and therefore Gilat will provide system technical support for the "4G mobile satellite telephone communication network system" of Synertone. They will jointly develop the satellite communication service.

Private Enterprises Building a "Space-Ground Information Network"

In recent years, China has successively exported multiple communication satellites and remote satellites and entered into R&D cooperation with many countries such as France. “ The Belt and Road Initiative” involves more than 60 countries and regions. Most of them demand satellites， but do not have such R&D capability, which produces an incremental market space for Chinese enterprises.

After nearly 40 years of development, China had launched 266 satellites in total till the end of 2014. It is predicted that, in the coming five years, China will launch at least 120 satellites, most of which will be put into commercial use. The communication satellite technology is the most mature and has the greatest potential.

At present, over 1.06 million fishing vessels have been registered in China, requiring up to 30Gbps of mobile satellite communication bandwidth; over 2 million long-distance buses and tour buses, requiring more than 100Gbps of mobile satellite Wi-Fi bandwidth; and high-speed rail Wi-Fi and civil aviation Wi-Fi also require a certain amount of such bandwidth. In total, China requires hundreds of gigabits of bandwidth from the 4G mobile satellite phone communication network system.

Synertone has the "Synertone 1" 12Gbps satellite , but it cannot meet Chinese market requirement for the 4G mobile satellite phone communication network system. Therefore, Synertone announced that it had signed a strategic cooperation agreement with China Great Wall Industry (Hong Kong) Co., Ltd., a wholly owned subsidiary of China Great Wall Industry Corporation to jointly launch the "Synertone 2" communication satellite.

This cooperation with Gilat will become Synertone's another measure for upgrading its satellite communication service. During the interview Han Weining, CEO of Synertone, said that Synertone would combine its proprietary products and technologies with Gilat's core devices and technologies to build a "space-ground information network".

GaiBerkovich, COO of Gilat, said, as the high-throughput satellites, airborne communication, broadband access in remote areas, and end-to-end services are explored, the growing Chinese market will become Gilat's strategic support.