EE Set to Fuel UK Rural Mobile Connections with Avanti Satellite

The notoriously high latency times of Satellite data connectivity don’t seem to be a concern for mobile operator EE, which has just signed an initial deal worth £20m to buy capacity for cellular backhaul from UK operator Avanti.

The multi-year contract, which includes options to double the capacity if required, will result in Avanti connecting a number of cellular sites across the United Kingdom to EE’s network using their HYLAS 1 and HYLAS 2 spacecraft. Apparently the purpose of this is to “provide communications in remote areas and additional network resilience“.

The deal will no doubt also to help support EE’s delivery of the Government’s new 4G based Emergency Services Network (details), which has already said that it will need to use a combination of Satellites and “Rapid Response Vehicles” in order to ensure coverage in the most remote areas.

In keeping with that EE has also committed to expand the coverage of their 4G mobile network to reach 95% of the UK’s landmass (99.8% population coverage).

Mansoor Hanif, EE’s Director of Radio Access Networks, said:

“We are delivering a highly resilient, truly nationwide 4G network and Avanti will play a key part in providing resilience and extending this network into rural areas.”

David Williams, CEO of Avanti, said:

“We have designed the HYLAS satellite fleet to offer the highest levels of network quality and flexibility, beyond the levels that have been previously available via satellite. This contract win demonstrates those qualities and affirms our ability to deliver at the highest level.”

News of the deal initially sent Avanti’s shares some 13% higher to 103p, valuing the company at over £130 million, although they’ve today dropped back sharply to around 92p.