Spanish satellite operator Hispasat is looking to utilise free capacity on its fleet to expand into new markets in the Caribbean and Central America, according to CEO Carlos Espinós. Speaking in an interview to be published in the next issue of SatelliteFinance, Espinós also said it would be open to taking another look at buying Israeli counterpart Spacecom, providing the conditions were adequate.
Spanish satellite operator Hispasat is looking to utilise free capacity on its fleet to expand into new markets in the Caribbean and Central America, according to CEO Carlos Espinós.
Speaking in an interview to be published in the next issue of SatelliteFinance, Espinós also said it would be open to taking another look at buying Israeli counterpart Spacecom (TASE:SCC), providing the conditions were adequate.
“We don’t have a presence in all the countries that are in Central America and the Caribbean,” he said.
“We are now trying to open new opportunities in those markets, such as Puerto Rico, Cuba and the Dominican Republic.”
Hispasat currently operates seven commercial satellites that serve its core European and Latin American markets, where its expansion drive saw it win the right to use Ku-band at 74W in Brazil earlier this year with its bidding partner Oi, a Brazilian telco.
Satellite operators have been flocking to Latin American countries such as Brazil in recent years, prompting oversupply concerns as they jostle for position to tap its potential for emerging market growth. Canada’s Telesat and UAE’s Yahsat also won exploration rights this year in Brazil, which is due to host the Olympics in 2016.
Espinós acknowledged the influx of capacity that will be coming online in South America in the medium term could have a negative impact, but is optimistic that demand in the region will catch up in the long term.
He also sees growth opportunities closer to the operator’s domestic market, and has plans to expand in Morocco, North Africa. US-based SSL is building a C, Ku and Ka-band satellite called Hispasat 1F that will be launched to 30W in 2017, covering Europe, North Africa and the Americas.
The manufacturer is also constructing the Amazonas 5 Ku and Ka-band bird, to be placed at 61W in 2017 mainly for satellite TV in Latin America and Brazil, while also providing new internet connectivity services.
Hispasat came close to buying Spacecom last year to help expand out of its core markets, however, the deal is thought to have fallen apart over valuation and regulatory issues.
Spacecom’s fleet is located between 4W and 65E, spanning from Brazil to Japan and Australia. It is also looking to build out its geographic reach to seal its place as a global player, and has been on the hunt for joint venture partners. The Amos-6 satellite it plans to launch next year will grow coverage for the first time in Europe to Western Europe, while expanding Ka-band capabilities with HTS beams focused mostly over Africa.
Social media giant Facebook (NASDAQ:FB) recently announced that it had booked the broadband payload to help realise a long-held goal to provide connectivity to large parts of Sub-Saharan Africa.
Hispasat made a bid for Spacecom that reportedly valued it at about US$484m. When the Israeli operator told Israel’s stock exchange it was up for sale in late 2013, local reports claimed it was seeking US$500m-US$600m.
SatelliteFinance understands JP Morgan was hired to run the sale.
Spacecom, which this month said it would make a US$158m insurance claim after losing contact with its Africa-focused Amos-5 bird, is owned by a private holding company called Eurocom that is controlled indirectly by Shaul and Yosef Elovitch.
Hispasat is majority owned by Barcelona-based infrastructure group Abertis (BME:ABE), which has a 57% stake after taking control of the operator in July 2013.
French satellite operator Eutelsat (EPA:ETL) holds a 33.69% stake and the Spanish government holds the rest.
