RECENT BRAZILIAN SATELLITE EXPLOITATION RIGHTS AUCTION



|XXV MEETING OF PERMANENT |OEA/Ser.L/XVII.4.2 |

|CONSULTATIVE COMMITTEE II: |CCP.II-RADIO/doc. 3778/15 |

|RADIOCOMMUNICATIONS |12 February 2015 |

|February 23 to 27, 2015 |Original: English |

|Medellin, Colombia | |

| |

| |RECENT BRAZILIAN SATELLITE EXPLOITATION RIGHTS AUCTION | |

| |(Item on the Agenda: 3.3) | |

| |(Information document submitted by the Delegation of Brazil) | |

Introduction

For the purpose of reinforcing the telecommunications infrastructure in Brazil, the auction of four Brazilian Satellite Exploitation Rights was carried out by Anatel in the first semester of 2014. These rights are granted for a period of 15 years, with the option of renewal for additional 15 years.

The winning bidder could request to use orbital positions and frequency bands that were in coordination or notification process on behalf of Brazil or resulting from coordination procedures to be initiated before the International Telecommunication Union (ITU).

A total of R$ 153,15 million (approximately U$ 58.9 million for an exchange rate of U$ 1.00 = R$ 2,60) was raised for 4 Brazilian Satellite Exploitation Rights, which represents an average premium of 213.25% over the minimum reference price.

The minimum reference price for each Brazilian Satellite Exploitation Right was set at R$ 12.223.484,27 (U$ 4,701,340.10). Seven companies submitted their proposals for this bidding (Eutelsat do Brasil Ltda., Hispamar Satellites SA, Navigation Ventures Limited, SES DTH do Brasil Ltda., Star One S.A., Star Satellite Communications Company, Telesat Brasil Capacidade de Satélites Ltda.), which means that most of the main world satellite operators have participated through their Brazilian affiliates.

Winners

Hispamar Satellites SA submitted the best offer for the first Brazilian Satellite Exploitation Right (R$ 65 million, about US$ 25 million) and selected the 61o W Orbital Position associated with the Region 2 frequency bands of the Appendices 30 and 30A of the Radio Regulations.

SES DTH do Brasil Ltda. presented the best offers for the second and third Brazilian Satellite Exploitation Rights (R$ 33 million and R$ 26,8 million, respectively, which are equivalent to US$ 12.7 million and US$ 10.3 million), and subsequently selected the 48o W Orbital Position, associated with the C, Ku and Ka non planned bands, and the 64° W Orbital Position, associated with the Appendices 30 and 30A bands.

Eutelsat do Brasil Ltda presented the best offer for the fourth Brazilian Satellite Landing Right, and selected the 69.45o W Orbital Position, associated with the frequency bands of the Appendix 30B of the RR.

Those companies shall launch and put their satellites in service at the chosen orbital positions and frequency bands within a 4 to 6 year period, and shall provide permanent coverage of 100% of the Brazilian territory, in accordance with the provisions of the document signed with Anatel. This does not mean that companies cannot begin the operation of their satellite immediately, if they have the capability to do so.

In this context, it should be noted that Hispamar Satellites SA has already put the satellite Amazonas 4A into operation at the 61o W Orbital Position, in the Appendices 30 and 30A planned bands, for DTH services.

The NSS-806 satellite has also been put into operation by SES DTH do Brasil Ltda. at the 48o W Orbital Position, in C and Ku bands. The capacity of this satellite is being used for several different telecommunications services in Brazil.

Applicable rules

The bidding process for granting Brazilian Satellite Exploitation Rights is conducted in accordance with the provisions of the Brazilian Telecommunications General Law (Law nº 9.472, of 16 July 1997).

The above mentioned Law establishes that a bidding process for granting such rights may or may not be required, depending upon the situation. It is worth mentioning that the bidding is not required in the event that only one party can provide the satellite capacity in the established conditions or when all interested parties can do so simultaneously, without adversely affecting one another.

The procedures applicable must be, in any case, subject to the fundamental principles of the public administration, such as publicity and morality, for example, in order to evaluate the technical, operational, economical and legal conditions of the interested party.

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