At the end of March, Nahuelsat had agreed with the Communications Secretariat (SECOM in its Spanish acronym) to transfer its assets to Arsat, the State satellite operator. The text of the decree has already been authorized by the Legal and Technical Secretariat of the presidency, and now it is only lacking the approval of the Argentine president, Néstor Kirchner. Once the decree is published, there will be a 60 day term for Nahuelsat`s contract to be summoned up. Therefore, it is considered that the whole process will conclude by the end of July. Nahuelsat`s clients have already been informed of the transfer through a letter sent by the company,

Out of 45 clients that Nahuelsat currently has, eight or nine will not contract the services of Arsat, since the State operator only foresees to initially cover the Argentine and  Southern Cone territories. On the other hand, it will loose clients of  Venezuela, Guatemala, Honduras and Ecuador, which generate revenues for US$ 50,000 monthly. The whole process will force clients to make changes in electronics and extend their antennas to receive emissions of new satellites.

Satellites that clients could rent capacity from belong to Intelsat and among them: Americas 8, the 707, the 705 and the PAS 3 are found. As for position 72º , negotiations advanced but no agreement has been reached. The Argentine government had negotiated, at the end of last year, with the operator SES Americom, because its satellite AMC6 is in the same orbital position (72º E) as Nahuel I, however, that company was not very receptive, assured market sources, because a few months before, Argentine officials had acted arrogant and rude before SES Americom.

This option would have been the most convenient for both the Argentine State and clients of Nahuelsat, from a technical and economic point of view. At the moment, there is anxiety among the 45 clients of the operator, because the useful life of the satellite expires before June of 2008.

In addition, several liabilities that Nahuelsat had have been absorbed by current shareholders. In addition to the bloated tax debt with the Buenos Aires Treasury, that claimed the payment of revenue stamp.

On the other hand, Argentina continues defending its right on the 81 degree West orbital position. As a result, it signed a contract with Intelsat to occupy that orbit. Intelsat will launch a satellite that it will test in the orbital position to reaffirm its rights and in December 2008, it will establish it in a definite form. This will occur after the Conference of the UIT to  be carried out in November, where the 81 West orbital position will be dealt, and several operators will be present, among them SES Americom.