Star One is major presence on the Latin American satellite landscape. The company launched its Star One C3 satellite late last year and is planning to add new capacity next year to serve the market hotspots in the region. In this interview, Star One’s president, Gustavo Silbert talks about the company’s plan to move beyond its Brazilian roots and be more of a force in other parts of the continent.

VIA SATELLITE: What do you see as the potential growth drivers for Star One’s business?

Silbert: The successful launch of the Star One C3 satellite last November has brought expansion opportunities for us. This new satellite replaces some of our existing C-band capacity but brings the equivalent of 32 new 36MHz Ku-band transponders for the fleet that covers not only Brazil but also all South America. Certain areas from the Brazilian government intend to expand existing VSAT networks for digital inclusion and other applications in 2013 and this may bring new business opportunities for Star One.

VIA SATELLITE: There has been a lot of talk about all-electric satellites this year. Would you go down this route? What are your capital expenditure plans?

Silbert: Star One has been conservative in terms of adopting new technologies in space. Our engineering team has been monitoring the more recent possibilities of using electric propulsion in our satellites but I believe it will take more time before we decide to implement it in one of our new satellites. It is likely we will adopt some sort of hybrid solution of electrical and chemical system to avoid the long four to six months period of orbit rising from launching to start of satellite operation. Also, having two systems on board may help to mitigate the risk.

VIA SATELLITE: In terms of industry verticals, DTH, broadcasting, oil and gas, maritime, cellular backhaul, etc. Which do you think offer the most potential for the company?

Silbert: The supply of capacity for DTH certainly offers the most growth potential for the company. By the way, that’s the main reason why we decided to build the Star One C4 satellite. So far, it’s the largest satellite Star One has built and it will cover not only Brazil but also the rest of South America with high Ku-band power. We plan to launch it next year.

VIA SATELLITE: How successful have your efforts been in terms of expanding Star One’s business beyond Brazil?

Silbert: Broadening our business outside Brazil is strongly dependent on having new capacity available in the region, which is what we are doing with the C3 satellite. One of the C3’s Ku-band antennas cover the Andean region, and Florida for example. By selling these transponders we will be able to expand our business outside Brazil this year. However, if demand for capacity is strong in Brazil, this could still consume the capacity, as the transponders slated for coverage in the Andean region can also be used in Brazil if necessary.

VIA SATELLITE: What impact will the major sporting events in Brazil have on Star One’s business?

Silbert: Star One’s parent company, Embratel, was elected as the telecommunication sponsor for the 2016 Olympic Games that will take place in Rio in 2016. This, of course, will bring significant opportunities for Star One in terms of satellite capacity. Before that, in 2014, there will be the World Cup in Brazil. Both events bring us an extraordinary opportunity to sell our capacity.

VIA SATELLITE: Do you see major regulatory issues in Latin America impacting the satellite business?

Silbert: No, we don’t see any major regulatory issues in Brazil. Anatel has been doing an excellent job in this field. In other Latin American countries, however, we have been seeing some restrictions in terms of obtaining landing rights in these countries. We hope this can be solved as soon as possible. Also we have noted some movements toward the reallocation of the C-band spectrum for other services, which is very bad for the region. C-band in Latin America can make a lot of difference, which is different from other parts of the globe. It’s very reliable for tropical countries like Brazil and the Andean countries especially Colombia, Peru and Venezuela. Because of that, no change should be made on the available allocation of C-band FSS spectrum for satellite, at least in Latin America.

VIA SATELLITE: There has been a lot of talk this year about potential convergence between the FSS and MSS sectors, and both companies targeting similar segments. Are you seeing this?

Silbert: Yes, we can see this convergence in the market. The demand for higher data throughputs has generated a need for use of some of the FSS frequencies at the maritime and aeronautical segments. However the MSS services continue to be very competitive and reliable as an alternative for backup or extended coverage services. It is natural that the use of both services continues to expand as the demand is growing and there are requirements for both FSS and MSS.

VIA SATELLITE: Finally, how do you see the communications landscape changing over the next 12 months? How do you hope to position Star One on this landscape?

Silbert: In terms of changes we have noted some movements toward consolidation or arrival of newcomers in the region but we strongly believe that Star One is a unique company and certainly will continue to be the strongest regional operator in Latin America.