NEWTOWN, Conn. - Over the past decade, HISPASAT has shifted its focus to Latin America. With growth in satellite demand strong in the region for many years, HISPASAT experienced rapid growth in revenue by moving into the region. HISPASAT now generates the majority of its revenue from operations in Latin America instead of its home market of Europe. HISPASAT is utilizing its orbital-slot rights at 61° W and 30° W to expand business in the region. The company also recently won an auction for rights to 74° W, which it can use for future growth.
Still, HISPASAT is increasingly facing increasing competition in the Latin American market. Local competitors, such as Star One of Brazil, and national providers in countries like Venezuela will meet much of the capacity needs of the region. In addition, larger global players are focusing more on Latin America. For example, SES SA and Eutelsat both won the rights to orbital slots over Brazil during a recent auction.
With competition increasing and growth slowing down, HISPASAT has made a few changes to its strategy. The company will not have 10 satellites in orbit by the end of 2017, as it once planned to. Instead, HISPASAT has eight satellites in orbit, with another on the way. Furthermore, Hispasat 30W-4 and Hispasat 55W-1 are nearing the end of their useful lives. When they retire, HISPASAT's fleet will be further reduced.
This is not to say that HISPASAT will not take delivery of any new satellites. The company will take delivery of eight satellites by 2025 and another three by 2031. These satellites will be used to replace current spacecraft as they reach the end of their service lives. They will likely feature higher capacity, enabling HISPASAT to increase bandwidth while maintaining the same number of satellites in orbit.
HISPASAT also plans to expand into new regions, including North Africa and the Atlantic region. Providing capacity over the Atlantic is seen as a particularly important opportunity considering the growth in demand of in-air broadband and at sea data services.
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