[Satellite News 07-12-11] Eutelsat Communications’ much talked about dedicated Ka-band satellite Ka-Sat has now entered into commercial service as the operator finds itself leading the satellite industry into a new era of capability.

   Eutelsat Communications CEO Michel de Rosen has maintained high expectations for Ka-Sat, as well as the role Eutelsat could play in potential industry consolidation going forward. In this first installment of a two-part interview, De Rosen discusses the possibilities of both his new satellite and the likelihood of a Ka-Sat 2 satellite.

 

De Rosen: We have been very satisfied with the quality of our distributor relationships, their geographic spread and the service supplied through Ka-Sat. Our goal is to be generating 100 million euros ($142.5 million) of annual revenues by 2014, with a mix of about 60 percent consumer and 40 percent professional services. The entry into service of Ka-Sat on May 31 was a milestone for the overall broadband landscape in Europe and the Mediterranean Basin. It coincided with an update on the Digital Scorecard by European Union (EU) Vice President Neelie Kroes. She indicated that 10 million homes in the EU are still not served by broadband and that satellite is one of the core technologies that will help reach these users in order to meet the EU objective of broadband for all citizens by 2013. This unserved market will drive demand for services through Ka-Sat.

 

De Rosen: The contracts signed so far by our Skylogic affiliate highlight the fundamental assets of the Ka-Sat proposal. Our contract with TeliaSonera underscores how a business that is highly focused on the mobile market and a first mover on LTE is integrating satellite into its service portfolio to complete the broadband picture. RSCC is another important partnership. It brings a solid player on board for satellite broadband in European parts of the Russian Federation — a market with tremendous potential for growth, with Russia committed to being a fully-fledged part of the digital world.

 

De Rosen: High-throughput satellites are unquestionably part of the future satellite landscape. Clearly, it is logical for Eutelsat to be considering the type of high-throughput satellite we would want going forward. We know that a Ka-Sat 2 would be more advanced in terms of bandwidth, spot beams and coverage than Ka-Sat 1, but we must take one step at a time. The first action we are focused on is delivering on Ka-Sat 1. We don’t have a date yet for a Ka-Sat 2. We will take the next step when we are ready.

 

De Rosen: The launch industry is in a phase of increased diversification, with Falcon 9 beginning to attract business, the first Soyuz preparing to launch from Kourou, and Sea Launch returning to flight. Our policy will be to continue to evaluate launch alternatives from multiple suppliers, with Arianespace, historically, as our main supplier. Our first Sea Launch mission later this year shows our openness to launch vehicles that meet criteria of performance, schedule and cost. We also will follow SpaceX’s entry into the market. Their first launcher will deliver up to 3.5-ton payloads into space, which is not enough for our satellites in the five to six ton ranges. We will consider SpaceX when they bring Falcon Heavy to the market and they can demonstrate its performance.

 

De Rosen: Asian regions show strong growth potential, with expanding demographics and take-up of video and Internet services. This is an area where we see opportunities to grow and consolidate our position alongside our core markets of Europe, the Middle East and Africa, which are themselves still expanding. We want to combine the certainty of organic growth with the possibility of external growth. Five of our six satellites slated for launch from 2011 to 2013 include some coverage of Asia and are optimized for inter-connection with Europe, the Middle East and Africa. We are in a strong position to partner with telcos that want coverage for data and Internet connectivity, as well as with Asian broadcasters that want to penetrate EMEA markets. There are some interesting opportunities here. Zee TV recently provided exclusive coverage of the Cricket World Cup in Hindi via Eurobird 9A. This is the sort of opportunity we want to respond to.

   We are not compelled to do small- or medium-sized acquisitions, but there are possibilities. We will do this type of project if we are convinced that the execution would not be too difficult and that we will create value for our shareholders.