Comsat`s main contracts are from governmental entities throughout the region; a niche of great potential for future expansion, both in the hands of social inclusion programs just like e-government programs. Convergencialatina`s LatSat, a specialized publication on satellites, exclusively spoke with Guilherme Saraiva, Marketing and Products director at Comsat, in-charge of the company’s marketing in Brazil and of the corporation’s satellite area throughout the region.
Comsat had imposed itself in Compartel`s of Colombia broadband auction phase in 2004, that will support 5,000 remote points. Morover, it currently is participating of a bid to expand the system in which will be able to surpass that figure easily. In Brazil it was awarded the GESAC program, having 4,400 points, and a contract with the state bank Caixa to connect 9,000 agencies, of which, 6,000 will have via satellite access. Each one of the hubs that supports those clients are open, as well as it provides private clients` throughout Latin America. To complete its regional coverage and its technological portfolio, COMSAT would newly define its technological supplier to install the new broadband hub in its Argentinean tele-port.
The company’s success could be explained by several reasons. Within the last years, Comsat has recovered its commercial dynamism, after a paralysis that had been produced by successive stockholder changes at the end of the 90s and beginning of 2000. Reason why, the company’s administration, in charge of the Comsat International consortium, will firstly focused on centralizing traverse functions in its different branches to be presented as a regional operator. Secondly, it focused on purchasing strategic assists; it acquired the carrier Convergence, which gave it presence in Central America with their own networks, an area where most of the regional carriers lack coverage, and Vicom, a Brazilian company that has its own running of fiber optics and specializes in satellite technologies.
Reason why that in a two year term, Comsat has become a more efficient in terms of operating as well as expanding its coverage with their own infrastructure. To that we should add its land and satellites platform improvements, the readiness of both resources has become a differential at the time of competing against fleets and equipment suppliers that embarked within the arena of lending services.
LatSat (L): How has Compartel`s evolution plan in Colombia been?
Guilherme Saraiva (GS): we have installed a hub through which have 4,000 remote points, and have recently, received an expansion of that contract for another 1,000 points, in which will have 5,000 points before 2006. Out of the total, some 3,000 are points won by Comsat. The remaining is from third parties but administrated from our platform. Moreover, the Colombian Government has launched a proposal to expand the Program that, if we win, we would administrate an even larger number. There we would use a Viasat Surfbeam hub, that uses the DOCSIS 1.1 standard and the capacity from Telesat`s satellite Anik F1
L: In addition to points designated to Compartel`s program, is there a possibility to sell the service to private clients?
GS: the Surfbean platform completely covers the South American continent and already has corporate clients operating in Colombia. In Peru, we have recently launched the service and already have 50 points operating. Furthermore, we also have some test terminals in Argentina and Venezuela.
L: what are the current dimensions of GESAC`s project in Brazil?
GS: it is a program of 4,400 points, for which we use the LinkStar platform, also from Viasat, and the Amazonas satellite from Hispamar. We have some 1,000 points already activated and the forecast is to activate the remaining within the next nine months. We have to change 3,200 points that were from Gilat`s contract, the former concessionaire. We are operating and in the process of changing the 360 E terminals to Linkstar. This platform is also open for corporate clients. The sum of all corporate points reaches 300, a lot less than in GESAC, where we have our main project. It deals with a company of long-distance education. This client has put a first video channel on IP with the possibility to offer video conference or chat between schools. His intention is to offer up to four simultaneous video channels. At the moment we have the first active channel and it is a project that makes up almost 100 points. The objective will be to reach 200 throughout the country.
L: Brazil’s Communications minister, Hélio Costa, mentioned the possibility of reaching 12,000 installed points before the end of president Luiz Lula Da Silva’s term in 2007. Have there been any talks with you to reach that goal?
GS: the new minister has many ideas that are good but we have to look how to finance them. His intention is to expand the project but we still have not spoken. It has not been decided.
L: Choosing Viasat`s products on behalf of Comsat, was it influenced by the fact that Comsat Labs was purchased by that company?
GS: in Brazil we use Linkstar because the government requested some service characteristics - OoS, applications of video conference, etc – and also that that platform showed better performances. In the case of Surfbeam system, Viasat was qualified by performance and price. Those two points were the ones that oriented our decisions; we are not tied to any service provider.
L: have you already decided on which platform to use on Caixa`s contract?
GS: Caixa is a state bank, property of the Federal Government. It is in charge of Brazil’s lottery system, supported by 9,000 agencies. Caixa has transformed those agencies in points where clients could pay bills and withdraw money in cash. They are points that operate as an extension of the bank. Out of the total 9,000 points, we believe that some 6,000 use Vsat technology. For that system we have chosen the SkyEdge platform of Gilat. We signed a contract with Gilat in September to purchase two hubs that will operate in redundantly and that, for security reasons, would be separated by some 400 kilometers.
L: In the region, the average capacity contracted is of 128 – 32 KbP at a price close to US$ 300. Do you believe that there could be an improvement in speed maintaining those prices?
GS: I am not sure. Within the last years, handset prices have fallen a lot. At the moment, it is possible to purchase a Vsat for US$ 800 or maybe even less if it is used. The price of space capacity has already fallen a lot due to competition. Which today the part representing the price is the support and the field maintenance. I do not believe that price will decrease in the next years; I think they will stay the same.
L: broadband demand is growing. Do you have any estimation on how much it could grow next year?
GS: no, we do not. The great impellers of our growth came from the Government; it was not the private or user markets. Comsat has looked for large government projects, that is a very specific market. Although we have corporate clients, the major part of our billing is contributed by Governments. It deals with very big contracts which are closed and does not allow us to project. I could only say that at the moment we are participating in some public auctions in different countries.