Sky's the limit for Hughes thanks to new Argentine satellite regulations

Satellite company Hughes is pleased about regulatory changes in Argentina that have allowed greater opening of the satellite market.

The company, which last year launched its largest-capacity satellite, Jupiter 3, expects to grow in Argentina, where the satellite has allocated 15Gbps of dedicated capacity.

Hughes had previously been operating in the country with Arsat, but with the new licenses granted by regulator Enacom, it will now be able to do so directly.

BNamericas spoke with Hughes's general manager for the Caribbean & Latin America, Hugo Frega, during a recent visit to Buenos Aires, to find out more about his views on the outlook for the company.

BNamericas: How do you view the satellite policy of Javier Milei’s government?

Frega: President Milei took a big step in regularizing the market. It’s about positioning ourselves within a capitalist reality. So, it’s a good start.

At the same time, he regularized the licensing issue. This is important, and we appreciate this decision because it allows us to deliver our solutions directly through partners.

BNamericas: How do you see the competition with the opening of the skies that's taking place in Argentina?

Frega: We have competed and continue to compete with different technologies, so we welcome President Milei’s opening and thank him because now we no longer have just one channel, as we did before, which was Arsat. Now we can work directly, and we have the license.

There’s an advantage for those who invest first, and we have a well-established name and we have a track record.

Having other operators is good news for the market. There’s no limitation, and the market decides.

BNamericas: Where do you see the greatest opportunities for Hughes in Argentina?

Frega: Last year, we launched the Jupiter 3 satellite, which is an ultra-high-density satellite with more than 500GB of capacity. This allows us to offer bandwidths of up to 100Mbps with small antennas of 70-90cm. This allows us to reach rural areas where there is no connectivity or power, using solar panels.

We have developed projects of this nature, particularly in Argentina, in collaboration with Arsat since 2014. We’ve been working on connectivity for schools, healthcare, and during the pandemic for emergency hospitals 

[Editor’s note: The state-owned company had contracted Hughes' 63W satellite as a bridge for its SG1 satellite to provide services to emergency hospitals in rural areas.]

Good news is coming for Argentina, as we're increasing investment with a next-generation ultra-high-capacity satellite [Jupiter 3], which has 15GB of capacity dedicated to Argentina.

BNamericas: What other companies are you working with besides Arsat?

Frega: We’re also working with the Buenos Aires provincial lottery, with about 7,000 lottery points connected through our technology since 2008. Then we have Megatrans, which has made significant investments in our technology and has its own teleport.

BNamericas: What is your agreement with OneWeb?

Frega: We're the manufacturers of OneWeb’s technology, and at the same time, we integrate GEO technology with LEO [low Earth orbit satellites], resulting in a very interesting final product or solution. There are clients that require geostationary and LEO architectures. 

We provide what is called solution provisioning management. Some solutions require a service level agreement, so you can’t do it with just any internet solution available in the market. In Colombia, for example, we have about 25,000 connection points in rural areas, and our name is associated with meeting quality requirements. This is why we are integrating these solutions.

Today, we have an equation that allows us to reach very economical values for digital divide reduction projects.

We're already working with OneWeb in Chile and Colombia, and we're planning to run pilots here in Argentina as well.

BNamericas: Are you considering partnerships with other low-Earth orbit companies?

Frega: There’s no policy… we provide an integrated service with different technologies and are always open to integration.

BNamericas: Given that Milei’s administration is looking to downsize the national government, do you think provinces and municipalities will take on a bigger role in connectivity projects?

Frega: They're already taking on a bigger role. In fact, we’re working on solutions for the province of Buenos Aires to provide connectivity to schools and delegations.

There’s a path forward. It’s going to take some time. I don’t rule out that when problems are solved, a national solution might be required.

BNamericas: In Argentina, projects in mining, oil, and gas are expected to grow significantly, industries that have typically used satellite services. What do you think of that opportunity?

Frega: We have extensive experience in the business sector. In Colombia, we're providing satellite backhaul services for mobile coverage obligations in rural areas, and for mining sites, we’re working on projects in Peru.

Now that we have 5G frequencies, satellites are very important to support this expansion and complement the networks that operators already have.

BNamericas: Have you started conversations with operators?

Frega: Yes, we're in discussions and are having meetings, but no agreement has been signed in Argentina. We have an agreement with Claro in Colombia.

There's still a need for 4G rollout. Satellite technology would allow for very quick deployment of mobile networks, and when fiber arrives, those points can be relocated.

BNamericas: Do you plan to offer direct broadband to homes?

Frega: Not in Argentina, but in the region, we have around 400,000 users. Here, we're talking to operators who are interested in the retail market, and we can provide the solution because we already have experience in other countries. We're already in talks.

BNamericas: What kind of operators are you talking to?

Frega: There are regional operators and national operators. We don’t have exclusivity. We try to ensure that the business and market solution make sense.