Hispasat has sealed new agreements and contract renewals to provide dedicated satellite capacity to extend mobile networks in Latin America.
In particular, the operator is consolidating its important role as a provider of these services in the Americas, where it offers connectivity to more than 2,400 base stations, distributed across the United States, Mexico, Brazil, Peru, and Ecuador along with providing service for the first time to Chile and Colombia over the last few months. Additionally, Claro and Hispasat will use base stations to provide connectivity to 250 rural Argentine communities after the agreement between the two companies was announced last week. Hispasat is thus extending its business activity to three new countries in the Americas.
For Ignacio Sanchis, the Hispasat Chief Commercial Officer, "cellular backhaul solutions via satellite are fundamental to ensure robust, high-capacity connections that mobile communications need in regions that lack suitable terrestrial infrastructure or where satellite links are more efficient. These new agreements that Hispasat has reached in the Americas strengthen our position in this market segment, which is key for our growth".
A highly important vertical in Latin America
The cellular backhaul services who provide the satellites represent a highly interesting solution for mobile telecommunications companies who want to extend their connectivity in areas where terrestrial infrastructure roll out has geographic difficulties or is not viable in economic terms. Thanks to a satellite connection, it is possible to connect remote areas to the global mobile network, thus optimising economic investment and ensuring the capillarity that this type of communications needs.
The implementation of 4G technology and the arrival of 5G will lead to a growth in the demand for these backhaul services. As such, this type of satellite solution is especially ideal for regions like Latin America, with very large countries, challenging geographic features and less-developed terrestrial communication infrastructures in certain areas. Specifically, market studies predict that the demand for geostationary satellite capacity for backhaul services in the region will increase by 21% in the period from 2018-2028.