Despite tough economic conditions, many leading industry experts believe the Latin American market could see a recovery in 2003. This was one of the main conclusions of a panel discussing whether the markets in the region were on the rebound.

Maria Velez de Berliner, president of Latin Trade Solutions, told a panel on Latin America at SATELLITE 2003 being held this week in Washington, D.C., that the “region has gone through crisis before. It will come out and telecom and satellites will be there when it does.”

Latin America will remain a difficult market as there are numerous operators competing in tough economies. Delores Martos, vice president of sales for Latin America at New Skies Satellites [NYSE: NSK], said: “All of us recognize it is not the best time in Latin America. There are a number of factors playing a role. Having excess capacity is a problem. But, we can still see signs of recovery.”

The most ambitious plans might come from Argentine-based Nahuelsat, one of the smallest satellite companies in the region. Nahuelsat is looking to invest $400 million during the next five years to expand from its traditional focus on the southern cone of South America to a big regional service that would generate half of its annual revenues from Brazil, Mexico and the United States, said Nahuelsat CEO Jorge Irigoin.

Embratel-backed Star One, a Brazil-based satellite operator, plans to order two replacement satellites by year’s end, said Lincoln Oliveira, its chief technology officer. Reduced growth in gross domestic product, a crash in the capital markets, and the breakout of a price war should not stop companies in the region from planning and preparing for the inevitable turnaround in the marketplace, Oliveira added.