Hispasat, the Spanish satellite company, and Telemar, a telecommunications firm in South America, have signed a collaboration agreement to begin feasibility studies that would lead to the joint construction and launch of a new communications satellite.

An investment of nearly 50 billion pesetas (300 million euros) is envisaged for the construction and launch of this new communications satellite, which is scheduled for commissioning in the second half of 2003.

The technical equipment on board the new satellite will provide for both C-band frequencies, to be used primarily by Telemar, and Ku-band operation, intended for corporate and Internet use, with North-South and transatlantic connectivity.

Hispasat is the first European satellite communications company to obtain national authorization from the Brazilian telecommunications authority (Anatel) to operate in Brazil, Latin America's largest telecommunications market. The contract formally awarding Hispasat Brazil's 61 degrees West L. orbital position was delivered in September. The Spanish firm plans to institute a large satellite operator covering all of Latin America, with a development hub in Brazil.

With the development of multimedia services in Spanish and Portuguese, the combination of its orbital positions at 30 degrees W.L. and 61 degrees W.L., with service across the entire American continent, provides Hispasat with a commercial asset.