SES and Eutelsat Announce Joint Investment to Serve Markets for Mobile Broadcasting and Other Communications Services in Europe
SES GLOBAL (Paris:SESG)(LuxX:SESG) and Eutelsat Communications
(Euronext Paris: ETL) announce a joint investment in the first
European satellite infrastructure for broadcasting video, radio and
data to mobile devices and vehicle receivers.
In view of the innovative nature of this market, SES and Eutelsat
have agreed to join forces in a 50/50 joint venture company, which
will operate and commercialise the S-band payload on W2A. The company
will be set up by SES ASTRA and Eutelsat following approval from
relevant regulatory agencies. The S-band space segment represents an
investment of approximately 130 million euros.
The S-band (2.0 and 2.2 GHz), which represents a new frequency
band for both SES and Eutelsat, provides a set of frequencies
optimised for supporting a wireless distribution network for
delivering video and other services to mobile devices, including
phones, PDAs, laptops and vehicle receivers. Mobile video services
represent a large and currently undeveloped market in Europe, emerging
today through existing terrestrial solutions. The development of
mobile video services through a satellite-based hybrid network will
provide content providers and operators with alternative or
complementary solutions to terrestrial-based networks and will bring
the benefit of universal coverage that satellites can provide.
Eutelsat has commissioned the W2A satellite from Alcatel Alenia
Space for launch on Sea Launch in the beginning of 2009. W2A will be
operated at 10 degrees East, with a state-of-the art S-band payload
which will be an essential building-block for a hybrid infrastructure
over Europe, combining satellite and terrestrial networks, to provide
both universal coverage and indoor penetration for mobile video
services. The S-band payload has also been optimised for a broad range
of business applications such as security surveillance and other
commercial data services including two-way communications.
States Romain Bausch, President and CEO of SES GLOBAL: "This joint
investment will allow for the development of new, innovative satellite
delivered mobile broadcast services, thereby enabling satellite to
compete with as well as to complement terrestrial infrastructure
solutions in the mobile television and radio distribution chain.
Satellite provides a unique and highly efficient coverage and the
joint investment will therefore increase choice and convenience for
consumers, content providers and service providers. Mobile
applications form an important element of our strategic development
plan, and by joining forces with Eutelsat, this infrastructure
investment offers an attractive business opportunity in line with our
internal investment hurdle rates."
Giuliano Berretta, Chairman and CEO of Eutelsat Communications,
commented: " Digital content and the mobility afforded by new portable
devices lie at the heart of the current dynamic in the communications
landscape, bringing new revenue streams for electronics manufacturers,
content and service providers, as well as new products for consumers.
Through a resource, which is optimised in terms of bandwidth and
universal coverage, satellite services using S-band frequencies can
make a vital contribution to the overall success of the mobile
broadcasting market while the design of the S-band payload is also
fully suited for two-way communications. By adding this new payload to
a platform using our traditional set of Ku-band and C-band frequencies
it has also been possible to put in place an efficient and
cost-effective solution for entering a new frequency band."
About SES GLOBAL
SES GLOBAL (Paris:SESG)(LuxX:SESG) wholly owns three
market-leading satellite operators, SES ASTRA in Europe, SES AMERICOM
in North America, and SES NEW SKIES, which provide global coverage and
connectivity. The Company also holds strategic participations in
AsiaSat in Asia, Star One in Latin America, SES Sirius in Europe, Ciel
in Canada and Quetzsat in Mexico. Americom Government Services
provides network solutions and bandwidth to the US government and its
contractors. SES GLOBAL provides outstanding satellite communications
solutions via a fleet of 44 satellites on 33 orbital positions around
the globe.
Additional information on SES GLOBAL is available at:
www.ses-global.com
About Eutelsat Communications
Eutelsat Communications (Euronext Paris: ETL, ISIN code:
FR001221234) is the holding company of Eutelsat S.A. The Group is a
leading satellite operator with capacity commercialised on 23
satellites providing coverage of the entire European continent, as
well as the Middle East, Africa, India and significant parts of Asia
and the Americas. The Group is one of the world's three leading
satellite operators in terms of revenues. Its satellites are used for
broadcasting more than 2,100 TV and 970 radio stations to more than
120 million cable and satellite homes. The Group provides TV
contribution services, corporate networks, mobile positioning and
communications, Internet backbone connectivity and broadband access
for terrestrial, maritime an d inflight applications. Eutelsat
Communications is headquartered in Paris, and the Group's workforce
comprises over 480 from 27 countries.
Additional information on Eutelsat is available at:
www.eutelsat.com