Satellite telecommunications in Latin America have evolved from a niche role in the countries’ telecommunications systems to become a central part of the advanced communications infrastructure by which carriers provide services today. This “high flying” technology has contributed a great deal to improving local economies. Satellites become more competitive in areas where there is a low density of telephones. And privatized telecommunications systems rely on satellites to provide telephone services to rural areas in order to comply with universal service obligations.
The satellite systems being used in Latin America today are categorized as the Low Earth Orbit (LEO), and the Geosynchronous Earth Orbit (GEO). They both provide a wide range of services that include cellular extension, business transactions, rural telecom, Internet access and direct-to-home TV. LEO systems are subdivided into big and small LEO. Globalstar is the only big LEO service available today that provides voice quality, mobile telecommunication services to areas not covered by cellular. This cellular extension service benefits people that live and work in areas that are beyond cellular reach. Big LEO systems also provide services to rural communities and international roamers. Orbcomm is a small LEO system that provides only mobile satellite data services.
GEO satellites provide a wide range of services that include business communications, regional long distance and rural telephony, TV broadcasting and Internet access. Privatization of state monopolies and deregulation of the industry allowed for private carriers to emerge using very small aperture technology, known as VSAT, that provides quick implementation of their networks. As a result, Intelsat saw its dominance as the only space-segment provider diminished by the emergence of players such as PanAmSat and Loral Skynet from the US, Argentina’s Nahuelsat, Mexico’s Solidaridad, Brasilsat, Hispasat, and Inmarsat.
These satellite operators sell or lease capacity to network operators who provide end-to-end solutions. Internet service providers can connect directly to the Internet backbone and directly to corporations that operate their own network. As an example, Comsat and Impsat both lease bulk capacity from Intelsat, Panamsat, Nahuelsat, and Brasilsat and offer telecommunication solutions tailored to their customers needs. These carriers operate their own teleports in every country where they are present and therefore, leverage on this presence to provide end-to-end regional international services.
There are domestic, regional, and Pan-American systems. PanAmSat was the first private satellite system allowed to offer services in Latin America. Along with Intelsat, Loral Skynet, and Hispasat are offering intra-Latin American and intercontinental link services. Other systems such as Nahuelsat, Solidaridad and Brasilsat were launched as domestic systems but are now offering services in certain regions in Latin America.
Applications for satellites in Latin America include the banking, mining, and energy industries. Individuals can benefit from this technology using mobile satellite communications, direct-to-home television (DTH) and Internet access. Direct-to-home television uses GEO satellites to broadcast TV programming in three languages to audiences throughout the region. The two main players in this sector are DirecTV and Sky Latin America.
Governments are the key drivers in promoting rural telephony projects. Peru and Chile are good examples where the governments have given out concessions to operate networks in rural areas based on the lowest-offered cost. Companies such as Global Village Telephone in Peru and Chile, and Direct-To-Phone in Venezuela are providing rural telephony services today.
The VSAT industry emerged as a solution to offer thin route private communication services to business users and rural communities. VSATs also forced regulatory constraints to be removed, and allowed satellite communications to be immediately and easily accessed from many regions in Latin America. Due to the lack of infrastructure outside the major populated centers, the banking, mining, and energy industries found VSAT a well-suited technology to interconnect their branch operations.
Andres Castro is xx at Globalstar, L.P.