Middle East satellite operator Nilesat is judging bids to manufacture its new 201 satellite and expects to make a decision “imminently,” possibly before the end of August.
“We still have clients waiting, so we need to have this new satellite very soon,” said Chairman Amin Bassiouny. “That means that we hope in the next year we will make strong steps forward. Every year, we have been boosting revenues. The new satellite will only enhance this.”
The 201 will be the first of a next generation of more powerful satellites that the operator will introduce to its fleet. “You can also look at the strength of our ambitions by the size of the new satellite we have ordered,” he said. “Our existing three satellites, the first generation, had around 12 transponders each. This time we are launching a satellite with 28 transponders, so [it will have] more than double the capacity of our existing satellites.”
In an interview with Satellite Today, Bassiouny discussed the latest information on the 201 spacecraft as well as Nilesat’s growth plans.

Satellite News: Why are you planning a satellite that more than doubles the capacity of your current spacecraft?

Bassiouny: We have a lot of competition in the region, but we are present in strong markets. We need to have a new satellite in order to cope with the latest technology. Secondly, we need a new satellite to add new clients. We have now 386 clients. We will soon go through the barrier for 400 customers on our three satellites. We have strong confidence in this market, as we have good relationships with our clients. We are relying on that. We expect changes in terms of [the] Internet and satellite technology. We want to meet our clients halfway, so we need to prepare ourselves and our satellites in order to fulfil the needs of our clients.

Satellite News: Are there plans for further satellites beyond the 201?

Bassiouny: There are plans for more satellites after the launch of our new second-generation satellite. The market dictated to us that we needed to have a 28-transponder satellite, but two years after that, we expect to have another satellite also. In terms of the potential 202 satellite, we will wait and see what features develop before we decide.

Satellite News: How do you see the DTH markets developing in the Middle East, and when can we expect to see high-definition TV (HDTV) offerings?

Bassiouny: I think HDTV in the region is very promising, but you need to prepare the market for it. The Arabic market is very ambitious to have the best services all the time. The market is ready to buy anything new, very quickly.
We have already prepared our last satellite for HDTV. We hope the HDTV market will happen in 2009 when our second-generation 201 satellite will be launched. We think the jump for HD will take place at the same time.

Satellite News: How do you see the broadband access market developing?

Bassiouny: We are looking at broadband as something we would be able to offer in the future. We are preparing ourselves to offer services across a range of markets. We began in 1998, [and] we were the first digital satellite in the region. We want to continue to be one of the innovators in the region. I think satellite broadband could be strong in Saudi Arabia, as well as Egypt, maybe Tunisia and maybe Morocco.

Satellite News: What do you see as the major new opportunities for Nilesat?

Bassiouny: We are currently doing a study on the market. We are expecting a growth in the region with the introduction of the HDTV, as many channels are planning to switch very soon. This is going along with the current governmental trend in the region in terms of media liberation. … We are studying legislations all over the world so we have rules in this area which can help freedom of expression.

Satellite News: What is the potential for the company in a market such as Iraq, as well as outside the Middle East?

Bassiouny: We are already present in Iraq. We have onboard our satellite 26 Iraqi channels. This number is increasing all the time.
We are a Middle East operator, but of course, if there is an opportunity to combine with satellites in other neighboring areas such as Europe, we would look to cooperate.

Satellite News: What impact will the consolidation of the largest satellite operators have on regional operators such as Nilesat?

Bassiouny: It may encourage satellite operators to merge with each other. Why not? I could see Nilesat combining with someone, but we have not had any discussions on this topic.
If you look at the Middle East, I think you will see more satellites here. The [United Arab Emirates] is thinking of having two satellites very soon. So, the area is open to many changes. But in terms of mergers, we have not spoken to any our friends in the region. But I wouldn’t rule it out if it was a strong proposal.

Satellite News: What role do you see the company playing on the satellite services landscape in the Middle East?

Bassiouny: We place a great emphasis on staff training. We do a lot of work with Egyptian and Arabic universities. We are doing the training for nothing, but we are creating a generation of engineers specializing in satellite as well as Internet technology. These are our hopes for the future. We want to prepare these engineers as we look to continue to serve the Arab world.