It was one of the most repeated questions yesterday on the first day of llitethe Latin American Satellite Congress 2016 in Rio de Janeiro. The protagonists, executives from the satellite market, insisted that it exists, but their vehemence continued leaving space for doubt. Delio Morais, president of Hughes in Brazil, was the most emphatic one, although he did not disclose the number of customers achieved since the launch of Internet for the residential segment on last July 1st. "It could be said that it was not the best time in the country to launch the offer due to the economic situation, but I am convinced that there is a market and technology presents no problem: the biggest challenge is the day-to-day, logistical and tax issues", he said.
In dialogue with Convergencialatina, Morais stressed that the Ka-band capacity made it possible to lower the costs a Ku-band satellite broadband connectivity could previously have, at more than a third. "Anyway, we know it will always be more expensive than ADSL. That is why we will not offer the product in those places where there is a cheaper access", he said.
Encouraged by the words of his colleague, Marcio Tiago, director of Yahsat Brazil, agreed that there is a market in the country (the Abu Dhabi operator will launch satellite broadband in 2017). The issue on which both executives differ is the segment offering opportunities for satellite provision: Morais considered that the corporate market can not be served, while Tiago bets on the corporate and residential sectors, but with a differentiated technical structure to serve them.
"Yahsat will adopt a wholesale model for the corporate segment, with specialized partners that address the specific needs of ISPs, satellite service providers or telecommunications operators. Instead, we will serve the residential sector with indirect sale; the customer will be ours and we will use the YahClick brand", explained Tiago.
For Michel Azibert, Eutelsat CEO in office, there are two keys for the satellite broadband model to be successful: cheap terminals and efficient distribution . "There is potential for this market in Brazil, but distribution should be in the hands of an operator, either a telco or a DTH, to be the first to reach the market", he said in dialogue with Convergencialatina.