[Satellite News – 5-2-08] Spanish satellite operator Hispasat is targeting a strong performance in its core markets in Europe and Latin America throughout the next year, with the 2009 launch its Amazonas 2 satellite expected to help the operator make great strides further in Latin America.
    Petra Mateos, president of Hispasat, spoke with Satellite News Associate Editor Mark Holmes about Amazonas 2, growth opportunities for the company and how she plans to keep Hispasat at the cutting edge of satellite services in Europe and Latin America.

Satellite News: Could you tell us about Amazonas 2 and how you see the demand for capacity on that satellite?

Mateos: The Amazonas 2 will incorporate a new version of the Amerhis intelligent processor for advanced broadband services sensitive to delay, such as communications in the event of emergencies, natural disasters, remote medical services and distance teaching, which was warmly welcomed by the clients of the group who have seen how the Hispasat satellites have ceased to be transparent repeaters to become intelligent systems capable of processing and regenerating signals on board, with no need for a land hub.
    Together with the work involved in this program, the company will continue its active participation in extensive technological research and innovation in 2008. Due to their relevance, the projects related to the development of HDTV (high-definition) and the implementation of digital terrestrial television (DTT) stand out as well as those linked to remote medical services and efforts planned to integrate all citizens in the information society by providing access to educational and health-related services.

Satellite News: How do you see the demand for satellite communications in Latin America developing?

Mateos: The demand for products and services linked to the broadcasting and distribution of audio-visual content in Latin America as well as broadband multimedia services is beginning to show signs of recuperation. This is forecast to continue in the next few years. In this scenario, Hispasat, the third operator in Latin America by revenues, continues to opt for the development of a supply of high-quality satellite capacity which facilitates the deployment of digital TV in Latin America and access to the Internet via satellite from remote areas and rural zones which are geographically disperse and isolated with no adequate communications infrastructure.
    With over 900 television and radio channels broadcasting on both sides of the Atlantic during 2007, Hispasat significantly improved the number of satellite dishes oriented towards 61º West from the countries within its area of coverage, which has contributed to bolster its competitive position in America even more. Among the new additions, which are the fruit of the group’s new growth strategy in Latin America, are over 200 new television channels and radio stations as a result of the new digital television platforms (DTH) of Telefónica in South America.
   

Satellite News: Where other major growth opportunities do you see?

Mateos: Over the next twelve months, Hispasat forecasts growth of invoicing levels to 130 million euros ($230.3 million), an attractive [earnings before interest, taxes, depreciation and amortization] margin of nearly 80 percent. We also forecast a debt level compatible with the development of the program for the manufacture and launch of the Amazonas 2 and the development of other initiatives aimed at securing new demand and attending to the growth arising from the deployment of new projects for accessing the Internet and others which require IP connectivity, both in Latin America and in the other areas covered. Hispasat considers that these new motors which drive the demand for satellite capacity services will mainly be the rental of capacity for the deployment of DTT and for the development of HD. Value-added broadband services for mobile environments and the push for Internet access services will also be important.
     

Satellite News: Will your deal with Sogecable allow you to play a stronger role in the satellite pay-TV market in Spain?

Mateos: The agreement signed by Hispasat and Sogecable in 2007 enables the our company to progress in one of its strategic business lines for the consolidation of the 30 degree West orbital position, where the group’s fleet has a specific plan to provide optimum service and clear technological advantages for the broadcasting of audio-visual content. Users enjoy substantial technical advantages — small satellite dishes which are easier and quicker to install and orientate; exclusive satellite bands and distribution in a more robust intermediate frequency; and a reliable, higher quality service with no interference.
    After the signing of this agreement, Hispasat and Digital+ began the joint execution of marketing activities and other initiatives as a means to respond to the specific needs of the platform’s installers as regards the quality of the service and knowledge of the sector, placing the improvements and technological progress developed by Hispasat at their disposal.

Satellite News: Is there an opportunity for Hispasat in the broadband access market in Spain?

Mateos: Hispasat maintains an active presence in the development of broadband in Spain, providing its services to the Public Business Entity Red.es and boosting its project for the information society and the use of the Internet. Since the beginning of this project, Hispasat has provided the deployment of 3,000 terminals in Spain in order to access the Internet via satellite in educational centers, libraries and public centers, which benefit the development of the information society. Hispasat also collaborates in the Profit InterRural project in order to develop a communications system, which makes it possible to provide broadband services in rural areas in Spain, which do not have a land infrastructure.
    In the area of multimedia services in mobile environments and especially on passenger trains in Europe, Hispasat actively participates in the Broadband to Trains project financed by the European Space Agency (ESA). The work done by Hispasat in this project has made the company the first satellite operator capable of providing these types of services, which, after the integration of the equipment in the infrastructures set up by the 21NET/Siemens/Telenet consortium, were successfully dynamically tested on the Thalys trains on the Paríi-Brussels-Paris route.
   

Satellite News: Does Hispasat have any plans to attack the mobile TV market?

Mateos: Hispasat actively participates in congresses, tests and demonstrations carried out in order to make the new television services through telephony terminals known. This is the case of the demonstration of new mobile TV services under DVB-H (digital video broadcasting–handheld) in the Spanish cities belonging to the Digital Cities Program promoted by the Ministry of Industry, Tourism and Trade in order to help local entities implement and disseminate the information society through the application of advanced telecommunications services and new technologies within the social and economic framework.
    The company also participates in the FURIA [Futura Red Integrada Audiovisual (Future Integrated Audiovisual Network)] project, where it contributes its knowledge on hybrid land-satellite networks for DVB-SH portable terminals and forms part of the Celtic European collaboration B21C (Broadcast for the 21st Century) project, whose main objective is to promote the DVB standard for drafting technical specifications and guidelines for the implementation of other standards related to the broadcasting of audiovisual content for fixed and mobile terminals.

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

Mateos: In the years to come, Hispasat will continue to dedicate efforts to the transformation process started at the end of 2004 and to the growth strategies defined for Europe and America orientated in two basic directions: the strengthening of the company’s competitive position in the broadcast and distribution of direct-to-home television available in its coverage areas and the internationalization, expansion and strengthening of Hispasat’s presence in America as an outstanding, high-quality player among satellite operators with a presence in the region. Amazonas 2 is merely the first step in the company’s new growth plan and implementation of the new strategic lines announced will be a reality in the short term.