Analysis: Es’hailSat, Arabsat Partnership

Arabsat and Es’hailSat, the Qatar-based satellite company, have announced a strategic partnership that will promote closer cooperation between the two companies and strengthen the reach and penetration of the 26 degrees east hot spot neighborhood for TV broadcasting. Under the terms of the agreement, Es’hailSat will acquire the rights to 500MHz of premium Ku-band bandwidth at this hot spot. The company’s second satellite, Es’hail 2, will use these frequencies and will be designed to provide DTH and other telecommunications services.

Jawad Abbassi, president, Arab Advisors, a key local telecoms consultancy in the region, told Via Satellite that the deal could possibly lead to more collaboration between the two companies. “The Arab world has two main hot spots for TV: 7 west (NileSat) and 26 east (Arabsat). Being on a popular hot spot for TV viewing makes, it is easier for a new satellite operator to gain traction among TV viewers in the region,” he said. “According to Es’hailSat and Arabsat, this agreement will increase Es’hailSat’s penetration of 26 degrees east hot spot, increase Es’hailSat’s capacity at the 25.5/26.0 east hot spot, and enhance the in-orbit backup capability..”

One intriguing question is what the dynamic of the Middle East satellite market will be going forward. Will Es’hailSat/Arabsat be more partners or competitors going forward? “The launch of the Es’hailSat’s new satellite will increase the satellite capacity in the region. More capacity by multiple operators means more competition. The Arab Advisors Group believes that this might lead to enhanced competition between the communication satellite companies. We believe the introduction of an additional player in the satellite TV market in the region will intensify competition, and provide customers with more choices for their telecommunications and entertainment needs. We believe this will especially be reflected in the emergence of more HD and 3-D channels in the region,” Abbassi said.

Abbassi believes the growth in the Middle East satellite market remains strong. “The satellite market is witnessing continuous growth in the region. The number of satellite channels that broadcast in SD had a major growth of almost 600 percent between January 2004 and May 2013,” he said.

RRsat Global Communications Network Reports Strong Revenues

RRsat’s Re’em teleport.
Image credit: RRSat

RRsat Global Communications Network reported a record $29.5 million in revenues for the second quarter of 2013.

The period, which ended on June 30, saw an increase of 5.1 percent in revenues, compared to $28.1 million in the second quarter of 2012. Compared to the first quarter of this year, revenues were up slightly from $29.3 million. In addition, gross profit in the second quarter of 2013 was $7.4 million, an increase of 10.2 percent compared to $6.7 million in the second quarter of 2012 and compared to $7.1 million in the first quarter of 2013. Gross margin in the second quarter of 2013 was 24.9 percent compared to 23.8 percent in the second quarter of 2012 and 24.1 percent in the first quarter of 2013.

MTN Continues Partnership with Israeli Mano Cruises
MTN Communications has extended its partnership with Mano Cruises, an Israeli cruise company. Mano has increased its connectivity services in conjunction with deploying MTN’s Internet and crew calling solutions. This effort will further increase the scope of communications for guests and crew sailing throughout Europe.

The MTN solution allows Mano to fully localize its Internet experience in Hebrew, enabling guests onboard to surf the Internet in their native language. Ten other languages are also available.

GlobeCast and Arabsat to Distribute Programming in North Africa
GlobeCast and Arabsat have partnered to offer new solutions for broadcasters seeking to distribute programming in North Africa. The collaboration will include GlobeCast’s teleport facilities, playout services, network and rich knowledge of the broadcast market, particularly in North Africa and will be carried on Arabsat’s BADR satellite at 26 degrees east. The preliminary rollout of the new service will include Algerian channels. Five channels have just been launched on this new platform: Echourouk TV, Al Atlas TV, Dzair TV, Imed TV, and Ennahar TV.