Robert Gottliebsen, Management Insights

Our Management Insights interview with the chief operating officer of NewSat, Michael Hewins, is an inspiration to all those who believe small companies can succeed in the current environment if they have the right technology.

Incredible as it may seem, the low-cap Australian-listed NewSat provides the satellite communications for the US land forces in Afghanistan.

The Australian army believes that it is better to use satellites linked to China for its Afghanistan military satellite communications.

NewSat operates satellite teleports out of Adelaide and Perth and its services have been so successful in coordinating the US Afghanistan land forces that the US military wants NewSat to go the next step and extend its satellite operation from simply operating satellite communication to owning a satellite or satellites.

Remember this is a company whose shares are at 0.7 cents and has a tiny capitalisation, although it is profitable. But with the right technology, and the US military behind you, anything is possible.

And that’s why American satellite expert Michael Hewins has come to Australia to join NewSat chief executive Adrian Ballintine – to give NewSat the management clout to take the next step.

Satellite spots are not easy to obtain and NewSat has bought seven of them.

Hewins explains how a tiny company can fund a $US300 million to $US400 million satellite from Australia.

First, you need to sign up groups who will use the satellite so you have a guaranteed source of cash flow. NewSat has contracts with major satellite users who have so far agreed to spend $US239 million on NewSat’s proposed Jabiru-1, Ka-band, next generation satellite.

NewSat says Jabiru-1 will provide superior coverage over South East Asia, the Middle East and North Africa plus Australia. It will be Australia’s first independently-owned commercial satellite. NewSat still needs more contracts but the demand is building so a second satellite is now in the pipeline.

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