The Brazilian telecoms regulator has started the bidding process for four orbital slots that will become available over the next five years.
In a statement yesterday, the regulator Anatel said that the process would allow Brazil to increase satellite…
The Brazilian telecoms regulator has started the bidding process for four orbital slots that will become available over the next five years.
In a statement yesterday, the regulator Anatel said that the process would allow Brazil to increase satellite capacity to meet the anticipated growth in demand that will come with the forthcoming World Cup (2014) and Olympics (2016) that will be held in the country. The satellites will be used for broadcasting, telephone services, broadband internet and data communication.
The four satellites that take up these orbital slots will cover the whole of Brazil. The exploration rights for the orbital slot last for 15 years and can be renewed once. The same company is allowed to take two of the four orbital slots.
According to local reports, the minimum price for each of the orbital slots is US$3.495bn, while the auction itself will take place on 23 August. Anatel was not able to confirm this information before the press deadline.
The auction comes at a time of growing demand for satellite services in Brazil. In June, Anatel reported that over one million people had subscribed to pay-TV services in the first five months of 2011, with the fastest growth coming through DTH technology.
Pay-TV penetration in Brazil is still low compared to other Latin American countries, with only 18.2% of the population receiving pay-TV services, according to the most recent estimates.
There are currently 33 foreign-owned satellites and nine Brazilian satellites covering Brazil. Out of the foreign contingent, Intelsat owns five of the satellites, Eutelsat owns four and Inmarsat owns three.
Anatel said in its 2010 annual report that Star One, the subsidiary of Mexico-based telecoms group America Movil, was marginally the largest player in the market for the provision of space capacity, controlling 26.5% of the market.
