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Management Presentation October, 2009 Broadband Innovation in Latin America 1 Regional forum for the Americas development Promoting Access to Broadband.

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Presentation on theme: "Management Presentation October, 2009 Broadband Innovation in Latin America 1 Regional forum for the Americas development Promoting Access to Broadband."— Presentation transcript:

1 Management Presentation October, 2009 Broadband Innovation in Latin America 1 Regional forum for the Americas development Promoting Access to Broadband Mexico City, April 18-19, 2012 Foro regional de desarrollo para la Américas Promoviendo el Accesos a la Banda Ancha Ciudad de México, de Abril 2012

2 According to the Broadband Commission for Digital Development, which has done a great job on this, the high-speed, high-capacity Internet broadband connections are an essential element in modern society, with wide social and economic benefits The economic, health, government and education sectors demand the use of digital contents to access more information and to develop a new life style by using TIC´s The digital content industry experienced a moment of expansion with new ways of watching TV, listening to the radio, playing music and video games, producing movies, online sales, social networks, or simply reading a book, which demand more bandwidth Satmex Broadband Market Research The growth of broadband

3 The practical result is that broadband enables the combined provision of voice, data and video at the same time so, the following applications, among others, will take full advantage of this It should be noted that contents will play an important role on these applications: broadband doesnt make sense without useful contents to be supported Government Health Education Science e Satmex Broadband Market Research Broadband Applications Smart Grids Buildings Communities Cities

4 Source: IYU world communication /ICT indicators database. Report by the Broadband Commission for Digital Development Satmex Broadband Market Research Broadband Subscriptions In 2011 the Americas represented one quarter of total Broadband households worldwide and which 8% goes for Latin America Global Broadband market has a CARG of 7.7% to reach 744 million household connections Broadband Subscriptions Broadband Subscriptions per region

5 Some regions are advancing faster than others, during the following 5 years, regions with larger expected CAGR are Latin America with 11.9%, Middle East with 11.7% and Asia- pacific with a 10.4% Source: 2012 SNL Kagan, a division of SNL Financial LC, estimates Satmex Broadband Market Research Household per region 3.7% CAGR 11.9% CAGR 10.4% CAGR 11.7% CAGR 8.2% CAGR 2.8% CAGR

6 Satmex Broadband Market Research Broadband Additions Broadband Household CAGR in Latin America will be of 11.9% It is expected to consider Latin America in growth phase for the following years Latin Americas total broadband additional connections in 2015 will be around 32 million Source: 2012 SNL Kagan, a division of SNL Financial LC, estimates

7 7 more populated countries represents 88%of total Broadband connections in Latin America for 2011 In 2015 this rate will remain steady in 18% Is estimated that Broadband Market penetration in Latin America will grow consistently from 29% in 2011 to 40.6% in 2015 Satmex Broadband Market Research Broadband households in Latin America Source: SNL Kagan Global Multichannel Comparison Table 2012 and Frost and Sullivan Latin American Broadband Services Markets Argentina46%51%57%61%64% Brazil22%25%27%30%34% Colombia25%27%28%30%31% Chile45%48%50%53%55% Ecuador18%23%28%32%35% Mexico52%58%62%65%67% Peru15%16%18%19%21% Others4%5%6%7%8% Broadband households Market penetration by country BB Households / Households

8 Cable26.3%26.9%27.6%28.1%28.4% DSL69.2%67.9%66.1%64.0%62.0% Fiber0.8%1.6%2.8%4.5%6.4% Satellite0.3% Fixed Wireless3.2%3.1% 3.0%2.9% Other0.1% Broadband (Million Households 2011 Brazil15 Mexico14.4 Argentina5.2 Colombia2.7 Chile2.0 Peru1.0 Ecuador0.7 Others5.3 More populated regions represents a total of 40.9 million connections In 2009 Broadband Satellite market share is the lower in all regions, representing an opportunity for Ka-band low cost broadband in a growing market Satmex Broadband Market Research Broadband households in Latin America Source: 2012 SNL Kagan, a division of SNL Financial LC, estimates

9 Brazil, Colombia and Peru have less than 25% broadband market penetration Latin America Broadband market is considered to be in growth stage based on the low penetration rates in most of the countries Revenues in 2009 were of 7.7 USD billion and the potential revenues in the long term is around 19.3 USD billion Market concentration is 64.2% 1 and is expected to increase Customers in Latin America have a medium satisfaction rates mainly because the high prices and low bandwidth High prices and low bandwidth could be driven by the high concentration rate in the top 3 operators Telmex, Telefónica an Oi and their main broadband product is DLS 1)64.2% in Connection market share and 63.3% in Revenues Market share Source: SNL Kagan Latin America Special Report and Frost and Sullivan Latin American Broadband Services Markets 2010 Satmex Broadband Market Research Market penetration and concentration

10 DLS Broadband dominates in all regions This concentration is driven mainly by Broadband DSL operators offer, which concentrate most of the connections and it is growing faster than other tipes due to the limited coverage triple or quadruple and high cost in other services like satellite. Ka-Band broadband in Latin America introduction will drive a massive market to use Satellite broadband due the price reduction and speed increase Ka-Band characteristics will generate a more efficient solution for specific users with specific needs CAGR DLSCable Brazil23.8%18.3% Mexico16.0%11.3% Argentina11.4%6.8% Colombia15.3%11.6% Chile5.8%14.9% Source: Frost and Sullivan Latin American Broadband Services Markets 2010 Satmex Broadband Market Research Broadband market share by application Unlike the other countries, Chile has a higher CAGR in cable than DLS broadband

11 Broadband Innovation in Latin America Satellite technology trends, Ka Band 11 Reasons to use Ka-Band Ka-Band Satellite technology trends Ka-Band Satellites have had a slow introduction in Latin America, how ever this trends to change in the following years due new, more accessible and flexible technologies Reach regions with lack of wired broadband Lower the price per equipment (compared to Ku-band broadband) Increase the available bandwidth to applications Point to Point Improve the quality of satellite IP services To respond to the demand of the mass market by band broadband Provide cost-effective services of IP technology for the professional market Spot Beam Technology Frequency re-use Specialized in Broadband Services High Power Small dishes Less expensive equipment Point to point applications Better quality for IP services

12 Broadband Innovation in Latin America Alternative Models to provide satellite Broadband solutions to different Sectors Social Developments to close the Technological gap for rural communities Countries would have to dedicate part of their budgets to develop this type of programs Governments shall promote regulations in order to open markets to the Competition High Speed internet IP Solutions Voice and Data applications Equipment cost is still high to end-users High Speed Internet Services focused on closing the Technological Gap Tax benefits Remarks Possible benefited sectors Commercial Government– sponsored projects NGOs High Speed Internet Services for remote places Expected lower cost General Users For the characteristics of the upcoming generation of Ka-band Satellites, different possible users will be benefited

13 106.0° – AMG-106W 107.1° – UKSAT-14 (Spaceway 4/Jupiter-1, 2Q2012) 115.1° – USASAT-71K 111.1° – CANSAT KA ° – LUX-G7-38C 118.7° – CANSAT KA-5X Anik F3 (119.0°W) 1 spot South East CAN Anik F2 WildBlue-1 45 Spots USA & CAN 109.2° – CANSAT-33 (Telesat / Ciel-1) 121.0° – USASAT-31G EchoStar 9/Galaxy 23 4 Tp Ka / 1 spot 105.0° – USASAT-31K 107.3° – CANSAT ° – USASAT-31L 99.0 – USASAT-31N 97.0° – UKSAT-13 (HNS) AMC Tp Ka CONUS or MEX Spaceway F2 (99.2° W) DirecTV 11 (99.2° W) CONUS 115.0° – IOMSAT 11A 114.9° – MEXSAT KA G (N/U) CAN (N/U) CAN (C) EUA (N/U) MEX (C) 101.0° – USASAT-31M (file DirecTV 8 y 9S) EUA (N/U) G (C) 109.1° – UKSAT-16 (Spaceway 5/Jupiter-2, 2Q2016) G (C) EUA (N/U) LUX (C) CAN (N/U) 116.8° – LUX-G8-39 (SES) VIASAT-1 (115.1°W) 56 Tp Ka USA & CAN 113.0° – GIBSAT-113W (SES) RUS (C) F (C) 102.0° – AST-102W LUX (A) 119.0° – LUX-G ° – INMARSAT-KA 118W G (A) EUA (A) LUX (C) EUA (C) Broadband Innovation in Latin America UIT files priority in the Arch 121.0°-97° West

14 (C) B (N/U) CAN (N/U) EUA (N/U) CAN (C) F (N/U) URG (C) EUA (C) B (C) PNG (C) MLA AMC-16/GE-6 10 spots CONUS or MEX Nimik 4 8 Tp Ka Venesat-1/Simón Bolivar 2 Tp Ka Spaceway F3 (HNS) USA (C) CHN (N/U) G (C) G (N/U) G (C) LUX Galaxy 28 Nimik 2 (A) LUX (C) J (C) G UKSAT-10 – 95.0° (2GHz MSS Satellite ICO-G1, Ka TT&C & Feeder Link) ICO-G – 93.0° (TeleBras) BSAT-2F – 92.0° CANSAT-30 – 91.0° USASAT-31S – 89.0° LUX-G7-43 – 87.0° USASAT-31U – 85.0° (Administration) LUX-G8-44 – 83.0° CANSAT KA-3 / CANSAT-31 – 82.0° N-SAT-A-81W – 81.0° (Administration) DRN-D2 – 80.0° VENESAT-1 / 1A– 78.0° [Proyecto VIASAT-2, 1Q2014] USASAT-71B – 77.3° (TeleBras) B-SAT-2N – 84.0° (MeaSat Satellite Systems) MEASAT-ROUTE-3B – 75.5° (Spaceway 6, 2Q2016) UKSAT-15 – 90.9° (China Satcom) CHINASAT-AL9 – 86.3° (SES) AM-SAT-79W-G – 79.0° NEW DAWN 1 – 77.0° (ManSat Ltd.) IOMSAT-S25 – 76.8° (C) G Broadband Innovation in Latin America UIT files priority in the Arch 95°- 77.3° West

15 The broadband networks are powerful tools for accelerating progress towards the Millennium Development Goals (MDGs), and they will underpin all industrial sectors and increasingly are the foundation of public services and social progress. Digital contents are transforming the Information Society It is very important to continue working on the technology development to access broadband networks, i.e. Ka Band Also, it will help a lot if our countries have flexibility in their regulations to facilitate access to these new technologies On the other hand, satellite operators like Satmex, may have limited access to key orbital slots because many of them are under control of big Administrations, and we cant take advantage of satellite cost reduction if there is not enough room to place them in orbit Broadband Innovation in Latin America Conclusions


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