Israel’s Orbit Communication Partners with Brazil’s Embraer on Key Strategic Deal

[Satellite TODAY 07-25-13] Israel-based Orbit Communication Systems has signed a new $1.2 million contract with Embraer, the Brazil-based aircraft manufacturer to provide a secure communications management system. While the deal may not seem fiscally significant to the satellite industry overall, there is much more to it, according to Jay Gullish, director of space and telecommunications with Futron Corporation. “Even though the contract is small, it positions Orbit well for future opportunities. It’s a huge strategic win,” he said.

 

    Orbit’s Audio Management Solution over IP (AMSIP) is a secure, patent-pending digital audio management system with IP interfacing capabilities, which allows aircraft to securely manage a wide variety of communication. The embedded technology would likely be used for crew communication and has a wide range of applications from weather data to navigation and tracking.

 

    The technology was created in response to shifts in the market, according to Orbit’s CEO Ofer Greenberger. "The rapidly changing communications market requires airborne platforms to support a wide range of communication assets – from legacy analog systems up to the latest and most advanced VoIP systems,” Greenberger said in a written statement.

 

    Gullish believes the deal is a major step forward for Orbit whose communication management systems will be implemented onboard command and control to the Embraer aircrafts. Orbit, a provider of mission critical connectivity solutions for satellite communications, tracking and telemetry, and communication management systems, has been taking advantage of a hot satellite growth market in Latin America, he added.

 

    “Satellite telecom has been growing so strongly the Latin American region. Orbit’s decision to expand there is based on solid economics and investment. I expect the growth [of satellite telecom] to continue as countries such as Brazil [location of Embraer HQ] and Mexico emerge as key players,” Gullish said.

 

    The emergence of Mexico as a growing satellite consumer market is due in part to the recently enacted laws on media reform. Gullish said the new legislation will serve as a major boon to the satellite and telecommunications industry.

 

    “Mexico has been pressing for media reform in the telecommunications community,” he said, noting that “the bottom line is that Latin American governments are pushing for additional market competition allowing for additional foreign investment.”

 

    Orbit’s recent announcement is taking advantage of this, Gullish said, notwithstanding Israel’s geographic distance to Latin America. “I’ve always been impressed by the sales and marketing aspect of Israeli companies in their ability to develop business relationships way out of their geography. I think it’s a good win,” he said noting other recent deals for Orbit systems include Russia and France.

 

    “Orbit’s been successful in signing deals globally. If you look at their full profile they have been landing leads with important clients across the world. I think they [Orbit] are doing some really interesting things. They are going for opportunities that fall through cracks for larger providers. A million dollar deal, for smaller company is important and serves as a benchmark for future opportunities in Brazil and Latin America,” he said.

 

    Gullish also notes that the Embraer deal is significant because of the company’s market position as the fourth largest aircraft manufacture in the world. “I think that’s key. Orbit’s technology could be used on United Airlines. That would be as if Michelin tires were factory installed on all Ford vehicles,” he said.