International Launch Services (ILS) launched operator SES’ QuetzSat-1 satellite into orbit last month on board a Proton Breeze M rocket. Space Systems/Loral (SS/L), which was procured by SES to build QuetzSat-1, said the satellite is now performing according to plan.

   The Ku-band QuetzSat-1 was designed as a 20-kilowatt broadcasting satellite to provide advanced DTH television coverage over Mexico, the United States and Central America. The spacecraft is based on SS/L’s 1300 satellite platform and carries 32 Ku-band transponders. QuetzSat-1 is SS/L’s sixth successfully launched 20-kilowatt satellite. The QuetzSat-1 satellite is set for positioning at the 77 degrees West orbital slot to be used in part by Dish Mexico, an EchoStar joint venture, for Direct-To-Home (DTH) services in Mexico and for Dish Network in the United States.

   EchoStar has leased the entire capacity of QuetzSat-1 for 10 years. Because the satellite is fully leased, it will immediately begin generating revenue for SES following in-orbit testing. SES said the satellite is an important part of the company’s current satellite expansion program.

               “The launch of QuetzSat-1 is the fourth successful SES satellite launch this year, and we look forward to providing EchoStar with a state-of-the-art new satellite to support the services they provide to their customers in the United States and Mexico,” SES President and CEO Romain Bausch said in a statement.

            “QuetzSat-1 is a very important satellite to SES and their customer EchoStar and ILS has worked in partnership to make this launch a success. We thank the teams of SES, ILS, Khrunichev and Space Systems/Loral for ensuring mission success with the ILS Proton launch of QuetzSat-1 and we look forward to our upcoming launches with SES,” ILS President Frank McKenna said following the launch.

   EchoStar is planning to expand its broadcast interests in Mexico following a capacity deal with SES and the launch of the EchoStar 14 satellite.

   In March 2010, SES announced that it leased satellite capacity to EchoStar after the Mexican government granted SES subsidiary Sistemas Satelitales de México (SSM) approval to offer fixed Ku-band satellite capacity into Mexico via the AMC-15 and AMC-16 satellites. EchoStar said it would use the capacity to offer full-time and occasional use space segment to authorized entities in Mexico through SSM while supporting broadcast services for the Dish Mexico DTH service in Mexico and for the Dish Network DTH service in the United States.

The deal is EchoStar’s second attempt at expansion in Mexico after the operator filed with the U.S. Securities Exchange Commission (SEC) to terminate its $374 million stock purchase agreement to acquire Satmex. EchoStar told the SEC that it required Satmex to solicit consent to amend its outstanding debt and waive all defaults and to enter into lockup agreements with the holders of at least a majority of its debt within 17 days of the execution of the purchase agreement. Satmex also was asked to redeem or repurchase a sufficient percentage of its existing debt due in 2011 and 2013.

    In a previous interview with Via Satellite, EchoStar’s Dean Olmstead said that while envisioning the program 18 months ago, he believed recent developments proved Mexico as a vibrant and interesting market. "The United States is such a dominant economy, not just globally, but in the region, so Mexico can’t help but be heavily influenced by what is going on in the United States. Mexico does, however, have its own dynamics. It has a continually growing, emerging middle class that is demanding more consumer services. We see that in the success of Dish Mexico. In the United States, our multi-channel video market is a bit more saturated. Various providers are trying to steal market share from one another. The nice thing about the market in Mexico is that there is a lot of untapped consumer demand, so we are very bullish about Dish Mexico and similar types of projects,” said Olmstead.

    EchoStar, in the meantime, will use capacity on QuetzSat-1 to provide additional coverage for these services. “This initiative brings together the strengths of SES and EchoStar in extending the reach and capability of AMC-15 and AMC-16 to accommodate new growth markets, as well as the experience of SSM in the Mexican market,” said Rob Bednarek, SES World Skies CEO.

CLARIFICATION – A previous version of this article should have read:  In a previous interview with Via Satellite, EchoStar’s Dean Olmstead said that while envisioning the program 18 months ago, he believed recent developments proved Mexico as a vibrant and interesting market.