Tuesday, September 05, 2017

Arsat will not be privatized but the business of the Ka band

An analysis of the letter of intent signed between ARSAT and the US giant Hughes allows, in a first reading, to tone down allegations about the alleged attempt to privatize the satellites managed by the state-owned operator or the future of geostationary orbits in the hands of the Argentine State.

It is worth remembering that one of the purposes of the letter of intent is to create a new company called Newco, whose purpose is to commercialize the capacity of the future Arsat 3. Hughes would have 51% the shares of the future company and the rest would be in hands of Arsat which, in addition, could be opened to other shareholders. The text of the agreement mentions that, through Newco, they will start a satellite broadband business when Arsat 3 is in operation (planned for 2020 or a year later). Specifies that the device will be manufactured by Invap at a cost of US$ 230 million; the text seems to be aimed at committing itself to Thales Alenia Space as the supplier of the payload, as was done with Arsat 1 and 2 satellites.

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