The Ovzon T6 terminal. Photo: Ovzon

Ovzon has received its largest contract to-date from the Swedish Defence Materiel Administration (FMV), for an integrated satcom solution that includes satellite network services, mobile terminals, and customer support. 

The order announced May 30 is valued at 1.04 billion Swedish krona (approximately $110 million). The Swedish FMV procures, develops and delivers equipment and services to the Swedish defense organization. 

Ovzon CEO Per Norén called the deal a “long-awaited breakthrough” for the company in a May 30 webcast and said the investment in capability that Sweden is making ties into the geopolitical situation.  

“This comes at a time where the geopolitical situation in the world has created an absolute need for having guaranteed connectivity. Satellite might be, in most cases, the only way to guarantee that,” Norén said. 

The service will run for 24 months with delivery starting in June 2025. The contract is divided into satellite network services and mobile satellite terminals. Ovzon will supply mobile satellite terminals from its product line for both manned and unmanned missions, with a majority of the terminals to be delivered during 2025. The terminal portion of the contract is valued at roughly $23 million USD.

The satellite network services portion contains several contracts, including an expansion of an existing contract and a contract renewal. It also includes third-party satellite capacity and is valued at approximately $85 million USD. 

Norén spoke of the strategic value for Swedish defense for the two-year contract period, when similar contracts are typically on a one-year basis. 

“We have now reached a point where integrated satellite communication that we can provide becomes a strategic component in any type of military and civil defense, national security, and public safety,” he said. “Therefore, you want to ensure that you have long-term access to that kind of capability, and can build up the business cases and the use cases for it with the end users in the field.”