Giuliano Berretta, CEO, Eutelsat

Via Satellite: Do you expect more FSS consolidation in 2007?

Berretta: Consolidation among the bigger FSS players is clearly already behind us, with the Telesat and Loral agreement being possibly the last merger of scale. However, I believe that a lot of small operators are ripe for consolidation and that acquisitions by bigger players will continue in 2007.

Via Satellite: Will Eutelsat be a player in this phase of consolidation?

Berretta: We do look at possible acquisitions of relevance to our business and will review strategies with our new shareholders. I am confident that with new partners that we cannot only consider organic growth but also something more. I see opportunities for further expansion, which includes having a stronger relationship with Hispasat and also looking at other routes to further growth.

Via Satellite: With Abertis now the largest shareholder, is it more likely that Eutelsat would be able to make a move for Hispasat?

Berretta: We have a very good understanding of the Spanish market. A number of key people already in Eutelsat are Spanish, and I am enthusiastic about more integration with Hispasat. However, as we are at the beginning of a new story with Abertis, it is too soon to make any affirmations on our future relationship with Hispasat.
Via Satellite: Do you see any synergies between Eutelsat and the new Telesat?
Berretta: We know Dan Goldberg well from his time at New Skies and have a longstanding frequency cooperation agreement with Loral through which we commercialize four transponders on the Telstar 12 satellite at 15° West. In terms of cooperation, this new combined entity is very young, and I think we all have to see what directions they will take.

Via Satellite: Can we expect Eutelsat to become more of a global competitor?

Berretta: We are certainly following the route of geographic expansion organically and through Hispasat, whose Amazonas-1 satellite has good coverage of North and South America. We consider this to be the best route and it has proven profitable for Eutelsat.
We have concentrated our efforts on a dual track of building strong premium neighborhoods serving profitable markets that are the least exposed to price pressure and maximizing revenue on satellites at other locations through value-added video and broadband services. This dual track results today in an average annual transponder price of 2.2 million euros ($2.9 million) across our fleet.

We are firmly committed to developing activities in what we call our Two Continents: European Union countries and our second continent, which embraces Russia, Turkey, the Middle East and Africa. The second continent is a big region, breaking down naturally into economic zones which we address through the different satellite neighborhoods we have built up across our fleet and which we will continue to boost with new capacity. For example, growing markets in Africa, Russia and the Ukraine are served from 36° East where we currently have our cluster of two satellites — W4 and Sesat 1 — and where we will put the powerful W7 satellite after its launch in 2009. We also see a continuous growth of capacity in Turkey, which we address through W3A, and in North Africa, which is part of our core coverage and where we recently optimized coverage for clients using the Atlantic Bird 4 satellite.

Via Satellite: Do you expect more FSS consolidation in 2007?

Via Satellite: Will Eutelsat be a player in this phase of consolidation?

Via Satellite: With Abertis now the largest shareholder, is it more likely that Eutelsat would be able to make a move for Hispasat?

Via Satellite: Can we expect Eutelsat to become more of a global competitor?

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