“Our satellites are 95 percent full. Right now, in C and Ku-band, there is more demand than we can actually manage,” said Cabello. “We are launching our Satmex-8 satellite next year to replace Satmex-5. The new satellite will have 45 percent more capacity than its predecessor. We expect to have around 70 percent of capacity sold on this satellite by the time it launches.”

   While Satmex-8 may alleviate some of the operator’s capacity issues, the design process for another satellite is already underway. “We have three orbital slots. All but one of these orbital slots are occupied by our satellites,” said Cabello. “We are planning to launch a new satellite for that orbital slot. This new satellite will be called Satmex-7 and we expect to launch that in the next few years. It will be just one satellite. We are in the design process for Satmex-7 and it will have at least 60 transponders. It is shaping up to be a big satellite.”

   The past 18 months have been eventful for the operator. EchoStar Satellite Services made an unsuccessful attempt to acquire Satmex in the early part of 2010. Satmex entered into Chapter 11 bankruptcy protection in 2011, and announced details to emerge with a new restructuring plan in place by the middle of the year. Satmex’s restructuring will not impact its plans for new satellites, according to Cabello.

   “We are in the final stages of completing the financial restructuring of our company, which will provide us with the cash to fund new satellites and future satellite programs. So, we are very excited about this. We do not, however, expect to see revenue and profit growth in 2011 compared to 2010,” he said.

   Carlos Placido, a satellite analyst at NSR believes there are many growth opportunities for satellite in the region where Satmex can capitalize. “Prospects in Latin America look positive and I think that the next 12 months will be vital for some key initiates driven domestically in the region that highlight the role of local players and governments, including GVT’s DTH play in Brazil, Arsat’s plan to accomplish the development of the communication satellite in Argentina, the synergetic e-Mexico and MexSat initiatives in Mexico and government-backed initiatives in free-to-air satellite TV taking shape in Colombia, Brazil and Argentina. The degree of success of these initiatives with strong local roots will hint at future direction for the region,” Placido said.

   Satmex’s revenues are split three ways, with a third coming from Mexico, a third from the United States and a third from other countries in the region. Cabello expects growth to come more from its business outside of Mexico and the United States.

   “We are seeing the most growth in South America. We have excellent coverage of the Pacific countries in Latin America, like Colombia, Peru, and Ecuador etc. These are countries that are seeing their economies grow significantly and their telecommunication needs growing significantly. Most of the growth we have seen has been from those countries, and we continue to expect that. There is more growth here than there is in Mexico,” he said.              

   Satmex also is exploring Ka-band opportunities in Latin America. While opportunities may exist for the operator, Cabello believes growth will come in a variety of different markets. “I think there is at least one company (in the region) that is looking into being a service provider (for Ka-band). It is a company that already offers Internet, telephony and television services. They are already looking at the possibility of purchasing Ka-band satellite capacity. I think it will take a few years, but I believe that Ka-band is definitely coming to Latin America. We will definitely be a part of it when it arrives in the 2014-2015 timeframe.”