Azerbaijan’s Azercosmos has entered into a strategic partnership with satellite fleet operator Intelsat for its second telecoms bird.
State-run Azercosmos will own the satellite and Intelsat will have access to a custom-built payload for its…
Azerbaijan’s Azercosmos has entered into a strategic partnership with satellite fleet operator Intelsat for its second telecoms bird.
State-run Azercosmos will own the satellite and Intelsat will have access to a custom-built payload for its customers.
Intelsat has granted use of its spectrum at 45E to Azercosmos, which will allow it to operate under Intelsat’s German filings. The slot is currently used by Intelsat 12, a five-beam Ku-band satellite due to go out of service in Q1 2017.
The new bird will be known as Azerspace-2/Intelsat 38. For Intelsat it will perform the same functions as Intelsat 12 and enable it to offer new services in Central and Eastern Europe, Asia and Africa.
Azercosmos said the satellite will help serve growing demand over the Caucasus, Russia, and African and Asian countries for the DTH, government and network services already provided by Azerspace-1.
The move comes just a few months after it acquired Airbus Defence and Space’s Spot 7 Earth observation satellite, now called Azersky, in December.
Long journey for Azercosmos
The announcement represents a culmination of talks that have been taking place since at least mid-2013. Azercosmos CEO Rashad Nabiyev told SatelliteFinance 18 months ago that he was talking to two potential partners about using their orbital slots for its second telecoms satellite. It successfully pursued this strategy to launch its first satellite: Azerspace-1 uses an orbital position owned by Malaysian operator Measat.
In 2013 Nabiyev said the process for securing a slot was “time-consuming”, and that has proven to be the case, but Azercosmos is now on track to have its second telecoms bird launched in 2017.
In accordance with local public procurement laws, Azercosmos will announce the bidding tender for selecting a manufacturer in March, and plans to make a decision by mid-2015. Azercosmos declined to disclose how much it expects the project will cost. Nabiyev previously said it may look to tap export credit agency support, as it did for the Azerspace-1 bird that was built by US-based Orbital Sciences, but he said the project would not be contingent on it.
The Azerbaijani government secured a US$500,00 grant in 2013 from the US Trade and Development Agency to study the feasibility of procuring its next bird with a US-based company. However, Nabiyev insisted the study was not about chasing another US manufacturer, but to look at Azercosmos’ growth plans as a whole.
Azerspace-1, which was placed in February 2013 by Paris-based Arianespace, saw the US Ex-Im Bank back a US$116.6m BNP Paribas loan for its construction, and France’s Coface guaranteeing a US$98m loan from Societe Generale and Sumitomo Mitsui Banking Corporation for the launch.
Spengler trumpets collaboration
Commenting on the new announcement, Stephen Spengler, who is set to become Intelsat’sCEO in April, said the partnership was a great example of satellite operators creating value by working together.
“Our collaboration will enable us to create additional capacity by leveraging our existing assets and maximising the value of our orbital rights,” Spengler said in a statement.
“Intelsat 38 will be strongly positioned to support the growth objectives of our customers at this orbital location, including leading DTH platforms in the fast growing Central Eastern Europe and Asia Pacific regions and connectivity for corporate network services in Africa.”
Spengler is currently deputy CEO. Under the company’s succession plan, Intelsat’s chairman and current CEO David McGlade will transition to the position of executive chairman on 1 April. The date will mark McGlade’s tenth year as Intelsat chief executive.
Spengler has been with Intelsat in various executive positions since 2003, including serving as executive vice president, sales, marketing and strategy as well as SVP Europe, Middle East, Africa and Asia-Pacific sales.
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