Bezos Embarks on Space Travel... Will Intellian Technologies Partner with Amazon?

'Low Earth Orbit Satellite Communication Ground Network Antenna' Recognized in Global Market
Various Discussions Underway with Multiple Global Companies Besides Amazon
Financial Sector Expects Explosive Revenue Growth from 2022 Due to Increased Orders

Intellian Tech Headquarters.

[Asia Economy Reporter Lee Seon-ae] On the 20th (local time), Jeff Bezos, the founder of Amazon, embarked on a 'space trip' flying in Earth's orbit for about ten minutes, drawing market attention to Amazon's 'Kuiper Project' and Intellian Technologies, a domestic company with a high likelihood of securing orders for this project. 'Kuiper' is Amazon's project to launch satellites into Earth's orbit to build a satellite internet network. It plans to launch over 3,000 satellites, with an investment cost expected to reach $10 billion (approximately 12 trillion KRW). This is why the market is highly interested in the partnership between Intellian Technologies, a specialist in manufacturing satellite communication antennas, and Amazon.

According to the financial investment industry on the 20th, the market is showing interest in whether Intellian Technologies and Amazon will proceed with a contract. An industry insider stated, "Intellian Technologies is pushing forward with negotiations with Amazon and plans to proceed with business cooperation in earnest." However, Intellian Technologies denied that any order has been finalized. A representative from Intellian Technologies said, "We cannot comment on whether we are proceeding with business with Amazon as it is confidential information," adding, "Opportunities are arising and the market is opening up, but no orders have been signed yet."

Founded in 2004, Intellian Technologies is the global number one company in maritime satellite communication antennas. Having completed the development of ground antennas for low Earth orbit (LEO) satellite communication networks, it signed a product supply contract worth 19 billion KRW with OneWeb, a global LEO satellite communication operator, in November last year, gaining worldwide recognition for its related technology.

LEO satellite communication is a next-generation communication business fiercely competed for market dominance by global companies such as Amazon and SpaceX. It involves launching satellites at altitudes of 200 to 1,500 km above the ground to build communication networks equivalent to 5G and 6G (5th and 6th generation mobile communications). SpaceX, the American space exploration company founded by Tesla CEO Elon Musk, is promoting the Starlink project by launching 12,000 LEO satellites to enable ultra-high-speed internet access worldwide. Amazon is advancing the Kuiper Project, with its subsidiary Kuiper Systems planning to launch 3,236 LEO satellites.

With its technology recognized through the contract with OneWeb, Intellian Technologies' potential to dominate the global LEO satellite communication antenna market has increased. Besides global companies like Amazon and SpaceX, there is also a high possibility of contracts with other companies conducting LEO internet businesses.

In the case of satellite antenna orders, there is a long time lag between contract signing and delivery. The average preparation time to launch satellites is 3 to 4 years. Accordingly, transactions with OneWeb began in 2017, and deliveries started this year. Therefore, even if transactions with Amazon begin this year, the starting point for deliveries will be 2024. An industry insider familiar with Intellian Technologies hinted, "Intellian Technologies is targeting 2024 and is pursuing collaborations with multiple companies." Canadian company Telesat and Luxembourg's SES are also companies with high order potential.

The securities industry views that Intellian Technologies' globally recognized technological capabilities and high future order potential will accelerate the rise in corporate value. Yuanta Securities forecasted that Intellian Technologies' sales and operating profit this year will increase by 41.2% and 272.5% year-on-year to 169.8 billion KRW and 13.9 billion KRW, respectively. In particular, from 2022, sales growth exceeding 100% is expected due to increased orders for LEO satellite communication antennas. Jin-hyung Park, a researcher at Yuanta Securities, said, "Intellian Technologies' sales in 2022 are expected to grow even more significantly."

Meanwhile, to keep pace with the increase in orders, Intellian Technologies recently completed a new headquarters building for research and development and production line expansion within its main site. The original single headquarters building has become two buildings with the establishment of the new building, and the existing building will be dedicated to production, with plans to significantly expand production capacity through facility expansion. The newly established building will be used as a research and development center equipped with an R&D laboratory, product testing facilities, and a global control center. Additionally, the UK branch opened a new office near London to strengthen partnerships more closely with key partners. This is interpreted as for close collaboration with OneWeb. Furthermore, a new research center for developing technologies related to mid- and low-earth orbit and other new businesses will soon open in Maryland, USA. This is believed to target collaboration with Kuiper Systems and various other companies.