UAE-based Al Yah Satellite Communications Company (Yahsat), which is wholly owned by Mubadala Investment Company (Mubadala), and Hughes Network Systems, a subsidiary of EchoStar Corporation, have agreed to enter into a joint venture (JV) to provide commercial Ka-band satellite broadband services in Brazil.
The new entity will combine Hughes do Brasil with Yahsat’s consumer broadband company in Brazil, creating a strong value proposition to serve the growing market demand for a wide range of broadband services, including consumer internet access, enterprise networks, cellular backhaul and Community Wi-Fi Hotspot solutions. The venture will combine the companies’ more than 65Gbps of Ka-band satellite capacity on the Hughes 65 West, Hughes 63 West and Al Yah 3 high-throughput satellites (HTS), reaching more than 95% of Brazil’s population. It also includes Hughes and Yahsat’s three gateways in Brazil. In addition to the combined existing capacity, the new entity will also leverage the capacity on Hughes’ JUPITER 3 Ultra High Density Satellite (UHDS), which has been designated EchoStar XXIV, and is planned for launch in 2021.
Completion of the transaction is subject to customary regulatory approvals and closing conditions and is expected to occur later this year. Following the closing of the deal Hughes will hold the majority interest in the JV. (Previously, in 2018, Yahsat and Hughes launched a JV to provide satellite broadband services to the Middle East, Africa and in southwest Asian markets.)