Eutelsat orbital slot win concludes Brazil auction
Paris-based satellite operator Eutelsat has been awarded the last slot in Brazilian regulator Anatel’s auction of orbital positions that will be made available within five years.
Local reports suggest Eutelsat is looking to fill its freshly acquired…
Paris-based satellite operator Eutelsat has been awarded the last slot in Brazilian regulator Anatel’s auction of orbital positions that will be made available within five years.
Local reports suggest Eutelsat is looking to fill its freshly acquired 65W slot with a new Ka-band satellite, although the operator was unable to comment on its plans for the position. In an interview in February, CFO Catherine Guillouard told SatelliteFinance that the company plans to orientate itself towards fast-growing, emerging markets as a source of revenue growth.
Eutelsat reportedly beat rival bids from satellite operators SES, Intelsat and Hispasat for its Brazilian position.
According to Anatel, the R$14m (US$7.9m) Eutelsat paid for its position represented a premium of 254.85% to the minimum price of each slot that was on offer, which was around R$4m (US$2.3m).
The regulator originally auctioned four orbital slots back in July 2011 with HNS Americas, the Latin American subsidiary of Hughes, and Brazilian satellite operator Star One the successful bidders.
The position that Eutelsat has acquired was initially won by HNS Americas, which had offered R$35.2m (US$19.8m), a premium of 792.58%, for the slot. However, HNS Americas later decided to relinquish its right in favour of the first position it had won in the auction.
The company had secured the first right of exploration to operate a satellite in the Ku and Ka-bands at 45W with a bid of R$145.2m (US$81.8m). This amount represented a premium of 3579.82%.
A spokesperson for Echostar, which acquired Hughes last year, said the group was still working with Anatel to finalise the orbital slot acquisition.
Star One, which was unable to comment before the press deadline, won the rights for the remaining two orbital slots. It paid R$37m (US$20.8m) to operate a satellite in the Ku and Ka-bands at 84W, and a further R$37m to operate a bird in Ku, Ka and X-bands at 70W. These were at a premium of 837.70%.
All the licences were granted for 15 years and are renewable once.
According to Anatel, the auction will enable Brazil to increase satellite capacity to cater for an anticipated rise in demand when the country hosts the football World Cup in 2014 and the Olympic Games in 2016.
Brazil has the largest and most developed DTH sector in Latin America. Anatel’s president, Joao Rezende, was cited on 14 February telling journalists that he expected the number of payTV subscribers in the country will more than double in five years to 25 million households.
