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2016 Results: RSCC posting 24% revenue increase

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RSCC has summed up the preliminary results of 2016. The Company revenues totaled 11.4 billion rubles, up 24% vs 2015 (9.2 billion. rubles).

The latest Russian satellite Express-AMU1 was commissioned in February 2016. Thus, RSCC has completed implementation of the satellite constellation renovation program for 2009-2015. Tens of millions of viewers in the European part of Russia have gained access to multi-channel digital television via the Express AMU1 spacecraft which delivers a new level of quality, including HD and UHD.

At the present time, the RSCC space fleet includes 12 communication and broadcasting satellites positioned along the geostationary orbital arc from 14 degrees West to 145 degrees East.

In 2016, acting on RSCC orders, the ISS Reshetnev company in collaboration with Thales Alenia Space proceeded to build the Express-80 and Express 103 spacecraft. The two new satellites are scheduled for launch into the geostationary orbit in 2019.

TV and Radio Broadcasting

RSCC continues to actively participate in the implementation of the federal target program "Development of TV and radio broadcasting in Russia in 2009-2018." As part of the approved federal broadcasting plan, agreements were signed in 2016 with the Russian Television and Radio Broadcasting Network (RTRS) for services to provide digital packages containing 20 required nationwide TV channels and three required nationwide radio channels. For broadcasting Russian TV and radio digital multiplexes in Area "M" (European Russia) and Area "G" (Urals), the new RSCC Express-AM6 (40˚) and Express AM7 (53˚ E) satellites are used.

Commercial Activity

Consistent implementation of the Company development strategies has made it possible for RSCC to solidify its position in Russia and bring up to 40% the share of international earnings in its total revenue. In 2016, the Company entered the Latin American market where it had not previously operated. RSCC has received its initial orders in that region and significantly expanded its customer base in South Africa, including the provision of backbone communication links, corporate applications, and services to mobile operators.

Last year, RSCC implemented a project to make available to the largest mobile operators (MTS, Megafon, Vimpelcom) the required base stations to support connectivity services and backbone links in remote areas of the Siberian and Far Eastern Federal Districts. To implement the project, the RSCC satellite capacity is used totaling more than 250 MHz in the C- and Ku- bands.

Satellite Broadband

In May 2016, Russian operators started to provide broadband services in the Urals and in the Central Region of Russia using Express-AM6. The new satellite-supported system of high-speed access in the Ka-band is intended to provide up-to-date high-quality Internet access services to private users and small and medium businesses. The system now operates based on the Express-AM5 / Express-AM6 satellites over the area from Kaliningrad to Petropavlovsk-Kamchatsky, encompassing virtually all densely populated regions of the country.

As of the end of 2016, RSCC in conjunction with its partners provides communication services in the Ka-band using approximately seven thousand subscriber stations, including through public Internet access outlets.

On the basis of Space Communications Center (SCC) Dubna, RSCC in partnership with Eutelsat S.A. and its subsidiary company, Eutelsat Networks, have deployed ground infrastructure designed to provide communication services using Express-AMU1 frequency capacity in the Ka-band (36 ° E). In so doing, RSCC addresses the problem of (i) access to the satellite segment, and (ii) monitoring the performance of communication channels.

Maritime VSAT

RSCC continues to implement the project of using VSAT on sea transport. The Company’s operations in the high-latitude Arctic areas have proved that it is technically feasible to provide broadband services using fixed and mobile satellite communication stations up to 80 ° N. At present, RSCC provides services in the territory of Eurasia and in the adjacent waters of the Atlantic, Arctic and Pacific oceans for more than 90 vessels, including scientific expeditions, research vessels and nuclear icebreakers, the latter providing year-round pilotage of ships along the North Sea Route.

Based on the results of 2016, an independent jury of the reputable American journal Via Satellite included Yuri Prokhorov, RSCC Director General, in the short-list of nominees for the prestigious international award "Manager of the Year in the Satellite Industry." Besides Yuri Prokhorov, the list of nominees includes heads of the world's five largest companies operating in the satellite communication industry: ViaSat CEO Mark Dankberg, Arianspace CEO Stefan Izrayol, Kymeta CEO Nathan Kundts, SpeedCast CEO Pierre-Jean Beyler, and DigitalGlobe CEO Jeff Tarr.