Eutelsat Enters Agreement With Hispasat for High-Speed Broadband in Spain, Portugal; Continues Partnership With Nilesat

Eutelsat Communications and Hispasat have entered into a multi-year strategic agreement for wholesale capacity on the EUTELSAT KONNECT satellite with the objective of supporting ubiquitous access to high-speed fixed broadband in Spain and Portugal. In addition, the company has agreed to partial renewal terms with Nilesat for broadcast services across the Middle East.

Hispasat
The capacity will serve to promote initiatives to bridge the digital divide in Spain and Portugal Hispasat has already implemented. Under the agreement, Hispasat will complement its current capacities with those of the EUTELSAT KONNECT satellite over the two countries, thereby operating in collaboration with Eutelsat and marketing high-quality broadband connectivity services at 100 Mbps to telecommunications operators and Internet Service Providers.

Under the agreement, which is effective immediately, Hispasat has committed to the Iberian capacity on EUTELSAT KONNECT becoming the exclusive operator and distributor of the capacity in Spain and Portugal. The agreement represents a high-single digit €m annual revenue stream at full speed. At a later stage, the agreement could be extended to future capacity.

“We are delighted by this strategic deal with our long-standing partner, Hispasat,” says Rodolphe Belmer, Chief Executive Officer of Eutelsat. “Coming after wholesale agreements covering France and Italy, and a distribution deal for Germany, this latest commitment by a satellite operator to cover the territories of Spain and Portugal confirms the relevance of powerful, cost-efficient next generation geostationary satellites as an immediate solution to the ubiquitous deployment of reliable, high-speed broadband.”

It follows wholesale contracts with Orange in France and TIM in Italy for capacity covering their respective markets, and the recent distribution agreement with Deutsche Telekom for Germany, further underlining the role of satellite as a cost-effective, off-the-shelf and reliable infrastructure to extend coverage beyond the reach of terrestrial networks.

In service since November 2020, EUTELSAT KONNECT has a total capacity of 75 Gbps, offering speeds of up to 100 Mbps to both companies and individuals in the digital divide at competitive monthly rates.

“Digitalization cannot be addressed without having guaranteed connectivity everywhere first,” says Miguel Ángel Panduro, CEO of Hispasat. “Satellite technology has evolved and permits Internet access at 100 Mbps immediately from any location, no matter how inaccessible it is. At Hispasat we are fully committed to the goal of providing all citizens Internet access and contributing to digitalizing economic activity regardless of geographic location. That’s why we have entered into this partnership with Eutelsat to complement our current capacity”.

Nilesat
The multi-year, multi-transponder agreement represents the partial renewal of capacity by Nilesat at enhanced terms.

“We are pleased to renew our collaboration with our long-standing partner, Nilesat, at this key orbital position for the Middle East and North Africa, further cementing our relationship and assuring service continuity to Nilesat’s customers in the region,” says Belmer.

Eutelsat and Nilesat’s 7/8° West video hotspot represents the most powerful, widespread and dense footprint in the Middle East and North Africa, reaching 90% of TV homes in the region. It is one of the most dynamic neighborhoods in the global satellite TV market with over 60 million homes and 1,000 channels.

“We are very happy to pursue our cooperation with Eutelsat, enabling us to continue to optimize resources at the 7° West position for satellite broadcasting and pursue our mission to provide reliable, secure, high quality broadcast services that aim to inform, educate and entertain our valued viewers throughout the Middle East and North Africa,” says Chairman and Chief Executive Officer of Nilesat, Ahmed Anis.