Satmex: New competitor no threat

Mexican satellite operator Satmex does not see the authorization of Argentina's Nahuelsat to do business in Mexico as a competitive threat, Satmex operations vice president Arturo Gonzalez told BNamericas on Friday. "We have a strong market share in fixed satellite services with long-term contracts and we don't see it [Nahuelsat] as a short-term threat. Maybe in the long-term, but we'll have to see," Gonzalez said. Local daily El Universal reported on December 16 that the communications ministry had authorized Nahuelsat to operate in Mexico. "It's another competitor that is welcome," he said. "In Argentina we work together with Nahuelsat and we have an excellent relationship." Nahuelsat joins a crowded club of satellite operators providing service in Mexico or with operating licenses: Satmex, Inmarsat, GE, Panamsat, and New Skies Satellites. According to Gonzalez, the demand for satellite bandwidth in Mexico is around 2,000MHz, but the total potential capacity of the companies authorized to operate in the country is 35,000MHz. Satmex currently has around 3,000MHz of bandwidth, which will jump to about 4,500MHz when its latest satellite Satmex 6 enters service sometime next year. The company's existing fleet consists of Satmex 5 and Solidaridad II. A third satellite, Solidaridad I, was lost in space due to technical failures in 2000. The launch of Satmex 6 has been fraught with technical and financial difficulties, but now that glitches on the Ariane Space launch vehicle have been resolved it is up to Satmex to reach an agreement with creditors so it can access launch funding. A consortium of Principia and Loral controls 75% of Satmex, while the Mexican government has the other 25%.