Telebras, Brazil’s former state-controlled telecommunications company that was re-established in 2009, confirmed that it has already reached a memorandum of understanding with Embraer to consider forming the joint venture. According to the two companies, the initial terms of the negotiations would give Embraer a 51 percent ownership of the new unit, with Telebras owning 49 percent.

   The new entity would explore opportunities to serve the Brazilian government’s plan to develop satellites for civilian and military uses, which was created earlier this year by the nation’s regulatory agency, Anatel, to address a shortage of capacity.

   Under the plan’s guidelines, companies interested in participating are allowed to enter the bidding process as a consortium, however, the same company, or a subsidiary or affiliate of its parent company, cannot be granted more than two orbital slots. The winners would acquire the right to operate for 15 years, with four years to fill an orbital slot with an operational satellite.