Eutelsat and Hispasat have signed 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 broadband connectivity services at 100 Mbps to telcos and ISPs.
Under the agreement, which is effective immediately, Hispasat has committed to the Iberian capacity on the satellite 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.
Commenting on the agreement, Rodolphe Belmer, CEO 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”.