The 30th meeting of the Advisory Committee of the European Telecommunications Satellite Organisation (EUTELSAT IGO) was held last 25-26 October in Paris, chaired by Spain (Laura Pérez Martos).
The meeting was attended by all the committee’s member states, i.e. Croatia, Spain, France, Luxembourg, Poland and Switzerland. Portugal took part as an observer, as did Italy, which was represented by Franco Malerba as both observer and chair of the Assembly of Parties (AP).
The EUTELSAT IGO executive secretary, Christian Roisse of France, reported on activities since the committee’s last meeting in March, especially supervision of the Eutelsat company, whose financial situation continues to ensure conditions able to comply with the Basic Principles, with the IGO in charge of monitoring.
Noteworthy was the June 2012 decision by the shareholder Abertis Telecom to sell 7 percent of its stake in EUTELSAT to the China Investment Corporation. The deal took place outside the market and at above-market prices. Abertis Telecom had already disposed of half its stake in January; it now holds 8.35 percent of the company. All the Abertis Telecom directors resigned from their posts on the boards of directors of the EUTELSAT Communications holding and the EUTELSAT operator.
With this context in the background, the Committee attended a presentation given by IGO legal advisors on the relationship between the EUTELSAT group and that international organisation and the possibility of a takeover bid in the near future, which raises doubts about whether potential new investors will comply with the Basic Principles and about the solidity of existing institutional protection mechanisms, i.e. the Arrangement and the Letter Agreement signed by both Parties.
The EUTELSAT group posted revenues of 1,222.2 million euros in financial year 2011-12, equivalent to growth of 4.6 percent; growth between 3 and 4 percent was forecast for the following year. In early October the company issued 10-year titles for an amount of 300 million euros. This financing is basically for new acquisitions and satellite fleet renewal – plans call for seven new satellites to be launched in the next three years, which should up capacity by around 28 percent.
The Advisory Committee also took note of the IGO’s financial results for the period from July 2011 through June 2012 vis-à-vis budget forecasts. Noteworthy was the positive result of nearly 69,000 euros with respect to the operational budget.
Iran’s interference with the EUTELSAT operator’s radio and television broadcasts was discussed once again. Both the company and the executive secretary reiterated their displeasure regarding the overly neutral stance taken by the International Telecommunication Union (ITU) on this matter.
The executive secretary also reported that both EUTELSAT and Arquiva decided last 15 October to end broadcasting emissions in channels held by the Islamic Republic of Iran Broadcasting (IRIB) in the wake of European sanctions and the decision by France’s High Audiovisual Council, regarding human rights violations in IRIB programming.
The Committee was able to directly ask questions to the company’s directors. EUTELSAT vice-CEO Michel Azibert and its director of international and institutional affairs, Jean-François Bureau, were confident about the good performance and forecasts for growth of the group’s business. Regarding recent changes in its shareholder structure, they indicated that if Abertis Telecom eventually takes total control of Hispasat, as announced, becoming the top shareholder of the Spanish satellite operator, then EUTELSAT might consider leaving that group. They added that the situation should be made clear by the end of the year. The company’s representatives stressed that the Chinese group did not assume nor will it be invited to assume any position on the company’s board of directors, as they consider that the deal was done in an unfriendly manner.
In reply to a question from Portugal, and following a proposal put forward by the executive secretary at the previous Advisory Committee meeting, the vice-CEO indicated that he was “personally” receptive to the eventual introduction of broadband internet access by means of satellite services in the concept of universal service, which for the IGO means in the Basic Principles. He nevertheless said that if that public service obligation is to be created, its geographic scope should be made clear beforehand, along with the characteristics of such service, namely regarding speed.
Although this point was not on the agenda, because the deadline for submitting candidate applications had not been reached, two candidates for the post of executive secretary are already known: Italy (Franco Malerba, current chair of the AP) and France (Christian Roisse, who finishes his second term in June next year).
The next Advisory Committee meeting has been scheduled for 21-22 March 2013.
