{"id":66309,"date":"2018-01-20T01:20:48","date_gmt":"2018-01-19T17:20:48","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/are-ppps-the-answer-to-colombias-satellite-demand\/"},"modified":"2018-01-20T01:20:48","modified_gmt":"2018-01-19T17:20:48","slug":"are-ppps-the-answer-to-colombias-satellite-demand","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/are-ppps-the-answer-to-colombias-satellite-demand\/","title":{"rendered":"Are PPPs the Answer to Colombia\u2019s Satellite Demand?"},"content":{"rendered":"<\/p>\n<p>The Colombian government sees satellite as a potentially cheaper (and therefore attractive) alternative to deploying hundreds of miles of fiber. The question is: what\u2019s the most cost-efficient way for an emerging country to loft a satellite for its population? The key, according to <strong>Axesat<\/strong> founding partner Miguel Eduardo Rodriguez, is engaging in Public-Private Partnerships (PPPs).<\/p>\n<p>Satellite\u2019s cost per megabyte wasn\u2019t always as low as it is now. As a result, years ago the Colombian government first decided to focus its efforts on expanding fiber coverage throughout the country. In 2011, it formed a partnership with <strong>Union Temporal Fibra Optica Colombia<\/strong>, a joint venture between <strong>TV Azteca<\/strong> and <strong>Total Play<\/strong>, to extend the country\u2019s fiber optic network to 1,078 municipalities. But the rollout of this infrastructure has \u201creached its limit,\u201d Rodriguez said, as it has become prohibitively expensive to deploy fiber to the rest of the territories needed to achieve the government\u2019s coverage goals. \u201cNow that the satellite capacity cost is quickly dropping the government should consider it again as a very viable alternative,\u201d he said.<\/p>\n<p>Like every other country on the planet, connectivity has become increasingly important in Colombia. Demand for broadband access ramps up yearly both for the general population and companies with remote operations. The retail, banking and fishing sectors in particular see satellite as the preferred backup solution for communications, Rodriguez said.<\/p>\n<p>The low deployment costs and the ever-increasing affordability of capacity make satellite connectivity the best option to meet these demands, Rodriguez believes. However, he also asserted that the government should not aim to build, launch and operate its own satellites due to its limited investment capacities. Instead, Colombia, and other countries in the region, should turn to the private sector just as it has for fiber.<\/p>\n<p>\u201cBecause of geographical conditions, lack of internet access coverage, lack of capital investment resources, and more urgent priorities requiring attention, the PPP approach is appropriate for all the countries in the region. In fact, some of them have or are working in projects where the governments provide funding and the private companies are responsible for providing coverage using the technology they consider more adequate,\u201d Rodriguez said. \u201cSatellite is proving to be a favorable option.\u201d<\/p>\n<p>Rodriguez\u2019s reasoning is that the private sector has already done most of the hard work, \u201cinvesting in infrastructure, building experience [and] optimizing services which can be put immediately to serve the needs of the country.\u201d Both multinational operators and local satellite service providers such as Axesat have also already expressed interest in using their technology for government development projects. Governments could save both time and expense by taking advantage of existing technologies rather than trying to develop them on their own.<\/p>\n<p>\u201cThe government can facilitate, encourage and help improve the economies of the projects by reducing the costs of their implementation. The comparison in investments to use satellite technology leveraging what exists at the private level versus trying to develop it autonomously is abysmal,\u201d Rodriguez said.<\/p>\n<p>Moreover, satellite technology in recent years has evolved at a continually accelerating clip. Staying up-to-date with the latest capabilities requires long-term sources of investment. Existing satellite operators have the advantage here, too, Rodriguez said: \u201cPrivate initiatives have to do it to remain competitive and because the economies of scale of their businesses allow it.\u201d<\/p>\n<p>Rodriguez added that it is the government\u2019s responsibility to stimulate and incentivize the growth of its private sector, rather than acting as a source of competition with redundant Research and Development (R&amp;D). \u201cGovernments must provide development opportunities to their private sectors. They must support and nurture them because they represent growth, job opportunities [and] fast advancement in knowledge,\u201d he said. \u201cThe function of the state in these cases is not to administer technologies, it is to use them in the best possible way to benefit the communities.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Colombian government sees satellite as a potentially cheaper (and therefore attractive) alternative to deploying hundreds of miles of fiber. The question is: what\u2019s the most cost-efficient way for an emerging country to loft a satellite for its population? The key, according to Axesat founding partner Miguel Eduardo Rodriguez, is engaging in Public-Private Partnerships (PPPs). 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