Izvestia: RSCC is planning to expand to America and Australia

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To become a member of the world’s top-five satellite operators, the state-owned company intends to become a global player by 2020.

RSCC, Russia’s state-owned satellite operator, intends to become a global player in the next few years after entering the communications services markets of Africa, South America, Indonesia, and Australia. Speaking at the SatComRus, Andrei Kirillovich, director of RSCC Department of Integration Services and Comprehensive Projects, said that exploration of new markets will be pursued as part of the task that the RSCC management has set forth, i.e. by 2020 RSCC should become the world’s No. 5 satellite operator in terms of the volume of services.

“To this end, the company should venture beyond the confines of its traditional markets: we are interested in three macro-regions where we would like to assert our presence with the launch of new satellites,” says Kirillovich. “The first such region is South America with its counterpart of our Far East – the Andes and the Amazon delta, where satellite-supported communications dominate. Our strategy in the region includes alliances with large players such as cellular operators. Also, with one of our partners we plan to set up a Ku-band service platform for the Andes region.”

The next region on RSCC’s blueprints is Africa. There the great potential of the market is somewhat neutralized by low paying capacity, notes Kirillovich. In Africa, RSCC plans to work with large players, telecom operators and end users. A new service platform is planned, and there will be new proposals for new operators entering the African market of VSAT services. 

“The third macro-region on our plans is South and South-East Asia and Australia,” Kirillovich explains, “Regarding South Asia market and, above all, India: we are not entering but staging a comeback because our Express-AM1 satellite was quite successful there. We would like to expand the coverage to include Indonesia. Australia is a totally new market for us, and we plan our operations there in alliance with local players”.

RSCC has been developing international markets since 2000 года. RSCC is active in the Middle East, in Europe and some countries in South-East Asia.  

“In those markets we work not only with large service providers but with end users whose profile has somewhat changed recently,” notes Kirillovich. “In the past they were primarily European teleports and service providers operating from Europe to the Middle East and providing corporate and departmental communications mostly for oil and gas companies. In recent years there has been a steady trend towards new clients emerging and operating inside Middle East. Above all, they are TV companies, cellular operators, and companies providing marine communications in the Mediterranean and Persian Gulf.

Sergey Pekhterev, CEO of AltegroSky group of companies, believes RSCC has what it takes to position itself in the markets that the RSCC management has outlined.

“It won’t be easy to penetrate the new markets. Essentially, they have no room to spare, they have been occupied and divided”, says Pekhterev. “However, in some cases the political factor may be favorable for RSCC. This world is multi-polar, and I will concede that that, say, in some Latin American countries there may be people and business entities that will take a positive attitude to the Russian company. The price factor should not be neglected: our company has some potential in that respect. Experience of tough negotiations is also valuable: RSCC has already closed deals in Australia and in other markets that were new to RSCC. If you work hard and do not make mistakes, everything is possible.”

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