VIA SATELLITE: What are your plans for future satellites?
FATHER: ProtoStar 2 is scheduled for launch in the late first quarter of 2009. We are pleased that it is going up on a Proton given that Proton has had a successful string of launches. Part of that program comes with another terrific customer, Indovision of Indonesia.
ProtoStar 2 will provide replacement capacity for their existing payload. We are working very closely with Boeing to make sure that satellite stays on our delivery schedule to accommodate the late first quarter launch. We want to provide a significant amount of capacity to serve the Indonesian market, so the strategy behind ProtoStar 1 and ProtoStar 2 is that ProtoStar 1 is being targeted more towards India and ProtoStar 2 is being targeted more towards Indonesia. That allows us to meet customer demand in two large and significant markets for DTH.
VIA SATELLITE: What impact will your deal with Philippine Long Distance Telephone Co. (PLDT) and Mabuhay Satellite Corp. have on the company and ProtoStar 3?
FATHER: In terms of ProtoStar 3, we are looking at the PLDT/Mabuhay transaction to be very synergistic for all the involved parties. [Mabuhay’s Agila 2] is a good satellite with a good customer base. It has three to four years left in terms of satellite life and that forms the basis for a potential new ProtoStar follow-on program. We will be working closely with PLDT and Mabuhay to undertake a methodical approach towards our joint integration. I think as we get closer to the launch of ProtoStar 2, we will have more insight into a path forward. If you think of the milestones we have ahead in terms of the implementation of the ProtoStar 1 program and the launch of ProtoStar 2 and considering that we are still a relatively small organization, we have a considerable work load.
VIA SATELLITE: Will you need further financing to fund your business plan?
FATHER: We are well financed with what we have on deck. We have fully financed all of our programs. The question would become relevant if we see a new opportunity next year that could translate into a new build and therefore have us pursuing a ProtoStar 4 satellite. If this were to evolve, I do believe we could access the markets to support our program, but I don’t think we would do it in the manner we previously undertook. Some of those paths may be closed off for a while.
Additionally, there are strategic sources of capital and there are people who are very interested in our sector, so I don’t think future funding is closed off to us. In nine months, we will be three satellites strong. That is a significant milestone, as ProtoStar 1 was only launched in July so that is a lot to digest. If a ProtoStar 4 takes a little bit longer to materialize we are OK with that because we want to make sure we are dotting all the i’s and crossing all the t’s as it relates to implementation and doing a good job for our customers.
VIA SATELLITE: What are the major challenges for ProtoStar?
FATHER: There is still an element of nationalism amongst operators in Asia, and there are also some entrenched operators. This is very capital intensive business, and the secret of success going forward will be to figure out how to cooperate rather than compete.
There is a certain disappointment with the drama that has surrounded the ProtoStar 1 launch. That does not help customer needs. In a cooperative environment, you are looking to follow ITU guidelines for the efficient use of spectrum and bandwidth given it is a scarce resource. The ITU has always encouraged cooperation as a means to effectively share bandwidth, and ProtoStar’s objective is to strictly follow their guidelines for the benefit of all satellite and DTH operators and, ultimately, the consumer. There are many ways for systems to effectively operate together, and in Asia we need to figure that out in a fair and equitable manner.
We are trying to pave the way and set an example of that by working together with other satellite operators as well as with our anchor clients such as DishTV/Agrani, Indovision, PlanetSky and PLDT. We are trying to lead by example even though it may be difficult at times. I think in the end that would benefit the Asian communications landscape to be more efficient, provide affordable pricing and have a renaissance on the consumer end.
Email
Comments
Print
Reuse
