March 2016 Issue
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Latin America: Government and New Players Demand More Capacity

Despite Brazil facing its worst recession since 1901, the satellite market has not been severely impacted. It plans, invests and buys according to long-term strategies. The region has 570 million inhabitants distributed along over 17 million square kilometers — 15 percent of the Earth’s surface — making satellite a critical complement to terrestrial technologies.

Government Projects

Brazil’s Geostationary Defense and Strategic Communications Satellite (SGDC), set for launch by Arianespace later in 2016, will have seven X-band and 50 Ka-band transponders. Telebras expects it to broaden capacity for regions where optical fiber cannot reach, increase broadband capacity for operators, and reduce Mbps costs. “SGDC will complement Telebras’ optical fiber network, especially in areas where it is still too expensive to install a land-based network,” says Satellite Manager Sebastião do Nascimento Neto.

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In the last Brazilian orbital slot auction in 2015, Canada’s Telesat, Spain’s Hispasat, and Yahsat from the UAE were the latest winners. The auction netted over $63 million above the regulator’s expectations.

Mexico and Colombia

Mexico’s “Mexico Conectado” program aims to reduce the digital divide by granting citizens the constitutional right to Internet access, implementing free Internet in public spaces. Mexican provider Pegaso deployed more than 22,000 VSATs for the Ministry of Communication and Transport, including 5,000 VSATs with Hughes in 2015.

Colombia’s “Kiosco Vive Digital” project builds digital spaces in rural areas. Gilat Colombia is supporting the project providing technology and training; 93 percent of the Kioscos are supported by satellite technology.

High Throughput Satellites

The impact of HTS will be huge in the region. “The impact on prices will be so significant that it will allow [us] to go into verticals that have traditionally been out of reach, such as infrastructure, retail, and energy,” says Mauricio Segovia, CEO of AxeSat.

Ana Freitas is a freelance writer who has written extensively on the technology and mobile markets in Brazil.

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