U.S.-based satellite service provider PanAmSat is hoping for a successful year in Latin America despite the recent announcement that one of its biggest customers in the region, DirecTV Latin America (DLA), has entered Chapter 11 bankruptcy protection.

One key area will be the introduction of new services, such as high-definition TV (HDTV). This will be critical to maintain momentum in terms of revenues in the region.

Carmen Gonzalez-Sanfeliu, vice president of sales for PanAmSat in Latin America, told Interspace: “We did a test with TV Globo after the World Cup last year in terms of HDTV. They loved it. What we need to do is look at those types of services so they can help you go through the dry spell. Our focus in terms of partnerships is strategic alliances with foreign operators that have a speciality in their service. We will definitely be doing more of that. We are partnering with key players so we are becoming more of a service provider, rather than just a bandwidth provider. You have got to reinvent yourself. You have got to look at brand new things.”

While good news has been in short supply in the region, Gonzalez-Sanfeliu is confident that PanAmSat will be one of the long-term players in the region. One of the consequences of economic instability are shorter terms contracts for satellite operators. Gonzalez-Sanfeliu admits: “We are looking at shorter-term contracts. That is critical and a change in what we used to do. The days of long-term 15-year contracts are not appropriate. There is too much risk, both from the operator point of view and from the company point of view.”

Despite the general economic gloom, which is particularly prevalent in countries such as Argentina and Venezuela, there are one or two positive signs for PanAmSat. According to Gonzalez-Sanfeliu, the Latin American team exceeded expectations. It also has new capacity available this year with nine transponders coming on line. PanAmSat generates around 20 to 25 per cent of its revenues from the region.

The other major challenge will in terms of PanAmSat’s ambitious plans to offer a Hispanic platform and give Latin American programmers the opportunity to export programming to the U.S. market. This could be one of the keys to success for PanAmSat in the region. Gonzalez-Sanfeliu says, “We have got a super Galaxy fleet with a tremendous amount of penetration in the U.S. market. Secondly, we have great international satellites with existing strong partners and programmes. You have got a product that is a win/win for everybody. It is a win for the Hispanic market in the United States. You will bring to the Latin American programmers a very valuable commodity, which is U.S. dollars and we have satisfied and successful customers.”

–Mark Holmes