hispasat_hispasat 09/07/2014 15:38 Page 1
Hispasat in Latin America
s a former Abertis
executive, you must
have been central to
the decision for it to
increase its stake and make
Hispasat a subsidiary. What
advantages does the deal bring
to Hispasat? Will customers and
the market in general notice any
changes?
After 25 years of dedicated service
in the satellite telecommunications
industry, the Hispasat story is marked
by success and continued growth. The
company was launched as a local
operator, with just one orbital
position and satellite, but is now a
regional benchmark operator in Latin
America, with presence in four orbital
positions, seven satellites in orbit and a further
three satellites under construction. Hispasat
has therefore reached a point of maturity,
from where it is possible to consider a more
ambitious growth project, with the aim of
becoming a global player and converting the
company into one of the world’s top five
operators.
In order to develop our strategic plan, we
required strong support from a partner who
would decisively play all their cards on the
project. This is exactly what Abertis did, thus
giving us strength, knowledge, ambition and
global perspective. This drive behind the
project was one hundred percent positive for
the company, which is now growing at a faster
rate, both organically and inorganically,
acquiring new orbital rights, launching new
satellites, seeking partnerships to optimise
resources and looking into M&A opportunities,
which will enable us to expand our footprint.
In terms of clients, we continue working
with the same competition and at the same
level of demand that we have until now,
increasingly adapting our offer to clients’
needs and offering the highest quality of
services. Technical innovation is in our genes.
We are therefore driving several network
architecture, signal compression, multi-screen
broadcast and broadband projects, in which
satellites constitute an optimal solution. In
addition, we are pioneers in advanced
developments such as Ultra High Definition
TV and mobile telecommunications service
connectivity. Our ambition is to continue
working at the cutting edge of technology, in
A
18 LATAM Briefing
Advanced Television
spoke to Carlos Espinós,
CEO of satellite operator
Hispasat, to learn more
about the company's
ambitions and
expectations in the LatAm
region.
order to provide the best response to market
demands.
Latin America is obviously crucial; will
there be more partnerships on orbital
slots like the recent one with Intelsat?
Because of its growth potential LatAm is
a target for other providers, what are
your advantages over others such as
Eutelsat, who recently stepped up their
regional commitment?
Orbital rights are becoming increasingly
scarce, at a time where there are an increasing
number of national operators hoping to put
their own satellites into space. Sharing orbital
positions with partners may therefore be a
good solution and is an excellent way to
optimise the use of these resources. We
wouldn’t therefore turn down the opportunity
of being able to come to other such
agreements.
As far as the advantages Hispasat may have
over new players in the Latin American market
are concerned, the Company’s many years of
experience working in the region and profound
knowledge of this market must be highlighted.
Furthermore, Hispasat has an orbital position
at 61 degrees West, one of the most important
orbital positions in the Latin American video
market. We also have transatlantic positions,
which enable us to bridge communications
between Europe and America. In
addition to all of this, we must not
forget the cultural and linguistic ties
that link us to most Latin American
countries and our close relationship
with Brazil, where the headquarters of
our subsidiary company, Hispamar, is
located.
How much has the partial failure
of Amazonas 4A compromised
near term plans in LatAm?
The failure in the power sub-system
affecting the north panel of the
Amazonas 4A is currently under
investigation and as of yet, we do not
have a conclusive report on the
possible causes of the incident, nor on
the exact effects this may have on the
satellite. No matter what the results, the
programmed capacity will be reduced to some
degree. However, given that this is a growth
satellite, rather than a replacement satellite,
this will not have an immediate negative
impact on services.
Moreover, the satellite is covered by
insurance for potential loss, thus meaning
financial impact will be kept to a minimum.
Furthermore, Hispasat is now making its final
adjustments to the contingency plan, which
makes it possible to make up the capacity lost
in a short period of time, which I believe
means this fault will not affect growth plans in
the region too greatly. At the moment, the
Amazonas 1, which has already been replaced
and reached the end of its useful life, has been
located at 55 degrees West, covering the
audiovisual services for the football World Cup
in Brazil that we planned to offer via the 4A.
Hispasat is a mature, experienced company
and is prepared to effectively tackle this kind
of problem, which may nevertheless happen to
any operator.
At the time of the acquisition, Abertis
set ambitious targets for increasing
Hispasat revenues; which service
sectors are you targeting most?
In line with the most significant market
studies, at Hispasat, we believe that
audiovisual services are set to be one of the
main growth drivers for space capacity
demand in Latin America. This growth will be
evident in terms of both increasing the
number of channels, estimated at a 44 per cent
increase over ten years and developing new
television technologies that require greater
broadband, such as HD, which has not yet
been fully launched in Latin America or the
recently arrived UHD.
Communication services are also growing
at a good rate in the region. Government