Embraer and Telebras secure shareholder agreement for new satellite venture

Brazilian aircraft manufacturer Embraer and incumbent telco Telebras have cemented plans to form a satellite joint venture with a shareholder agreement.
Called Visiona Tecnologia Espacial, the venture will initially focus on building spacecraft for…

Brazilian aircraft manufacturer Embraer and incumbent telco Telebras have cemented plans to form a satellite joint venture with a shareholder agreement.

Called Visiona Tecnologia Espacial, the venture will initially focus on building spacecraft for Brazil’s Federal government, including telecoms satellites for its national broadband programme and certain military applications. The venture is 51%-owned by Embraer, with Telebras owning the rest.

“This project is a historic step for advancing the technological and industrial readiness of Brazil’s space industry, and Embraer is happy and proud to be the strategic partner of Telebras and the Brazilian government in this important development,” said Embraer CEO Frederico Curado.

The shareholder agreement builds upon an MoU signed by both companies in November 2011 to launch two geostationary satellites by 2018.

Under plans detailed by the country’s Ministry of Communications, Science and Technology, the venture’s first spacecraft will predominantly provide services to underserved areas. Around 15-20% of this satellite’s capacity is earmarked for military use. It will cost roughly R$716m (US$389m), and is scheduled for a launch before 2014. The Brazilian government has also been cited saying that, although it intends to develop the satellite in Brazil, it would also consider ordering it from a foreign manufacturer.

The venture’s second spacecraft will be a meteorological satellite that the group aims to launch by 2018. In addition, the government is also planning to launch a microsatellite to monitor deforestation in the Amazon rainforest.

Demand for capacity in Brazil is soaring, and satellite operators have been looking to expand in the country to capitalise on this emerging market.

Local regulator Anatel recently concluded an auction of four orbital slots, won by HNS Americas, the Latin American subsidiary of Hughes, Paris-based Eutelsat and Brazil’s Star One.

The process also attracted bids from operators SES, Intelsat and Hispasat, as well as DTH firm Sky Brasil.

According to Anatel, the orbital slots were awarded to enable the country to cater for an anticipated rise in demand for when the country hosts the football World Cup in 2014, and the Olympic Games in 2016.