Eutelsat and Hispasat ink digital divide deal

Eutelsat Communications (Euronext Paris: ETL) and Hispasat, the satellite telecommunications operator of the Red Eléctrica Group, 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.

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.

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.

Commenting on the agreement, Rodolphe Belmer, Chief Executive Officer of Eutelsat said: “We are delighted by this strategic deal with our long-standing partner, Hispasat. 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.”

Miguel Ángel Panduro, CEO of Hispasat added: “Digitalisation cannot be addressed without having guaranteed connectivity everywhere first. 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 digitalising economic activity regardless of geographic location. That’s why we have entered into this partnership with Eutelsat to complement our current capacity”. StreetInsider