Satellite operators jockeying for position in Brazil as competition rockets

The satellite internet market in Latin America remains highly dynamic, especially in Brazil.

Various operators have recently filed requests with Brazilian regulator Anatel to operate new satellites or return usage rights for existing ones.

“There has been a lot of interest, competition has intensified in this market, especially in medium and low orbits. We expect new demands and contacts from companies, including advances regarding new entrants,” a source from the communications ministry told BNamericas on condition of anonymity.

As BNamericas reported, Amazon’s Kuiper is speeding up its preparations to obtain all due licenses and permits to start operations in Latin American markets, including Brazil, as it readies the launch of its low-orbit satellite fleet.

Meanwhile, established players have been looking to build up their network, as in the case of Starlink.

The Spacex company filed a request with Anatel for authorization to operate 7,500 new satellites in the country.

The company has had rights for up to 4,408 satellites in Brazil since 2022, encompassing the Ku and Ka spectrum bands.

However, the Starlink system has already reached the maximum number of satellites operating in the country, hence why it filed a new request. This involves the E band (71GHz-86GHz) and the company's second generation of satellites.

Starlink's request is undergoing public consultation, as Anatel is looking to assess the possible impacts on competition and the concentration of orbit usage.

SES

In the area of geostationary satellites, Luxembourg-based SES renounced its right to utilize its NSS-7 satellite in Brazil, after the model's useful life came to an end.

NSS-7 was launched in 2002 by New Skies with an expected lifespan of 14 years. The company was acquired by SES in 2005.

The satellite occupied the 20º West orbital position and was designed to provide telecoms, data transmission and internet services in the C and Ku bands.

Anatel's board accepted the request this week, according to a filing published in the official gazette.

SES has been focusing on new-generation satellites.

In 2023, the company launched another two O3b mPOWER satellites, joining two others that had been launched in December 2022 to serve the Americas.

Key customers who have signed up for the improved O3b system include Microsoft, Princess Cruises, Marlink, Jio Platforms, Orange, Claro Brasil, Vodafone Cook Islands, the Luxembourg government, and CNT Ecuador, in a recently-announced deal.

VIASAT

Another satellite company, Viasat, also made a request to Anatel to give up its 79º West orbital geostationary position.

The company had to rework its Viasat-3 constellation of geostationary satellites after a failure in the launch of the first of them.

Viasat-3 F1 Américas was to be located at 79º West, but after technical problems it ended up with only 10% of its total capacity. The company then decided to relocate for exclusive coverage of the US aviation market.

An additional two Viasat-3 satellites will be placed in the 89º West orbital position and, if all goes well, should serve the Americas.

Viasat currently operates in Brazil using the geostationary defense and communications satellite SGDC, owned by state-run telco Telebras, under a revenue-sharing, commercial usage contract.

Prior to Viasat-3, the company signed a contract with Brazilian aircraft maker Embraer to have in-flight connectivity available on the E2 family of aircraft.

It also previously partnered with federal lender Banco do Brasil's digital platform Broto to offer satellite services to farmers.

MARKET

There was a total 471,200 customers of satellite internet services in Brazil at end-May, following the addition of nearly 59,000 subscriptions in the month, according to Anatel data.

Starlink became the market leader, with 42.5% of all satellite accesses in that month, followed by Hughes with 38.1%. Next was Viasat (5.6%), Brazil’s Telebras (4.4%) and then Claro (4.2%). 

In April, Hughes was the leader of this segment with a 43.7% market share, compared with 39.4% for Starlink.