FINAL REPORT: DEFINITIONAL MISSION TO AZERBAIJAN:
AZERCOSMOS – AZERSPACE-2 FEASIBILITY STUDY
August 07, 2013
Space Partnership International
20
regional markets brings with it new regulatory challenges.
Barriers to Entry for Commercial Customers: Policy for new commercial players must be
updated as the Azerspace programs are implemented to avoid creating artificial market constraints
on the country’s satellite-enabled capacity development. This can be addressed
through the creation
of new telecommunications policy, including the creation of new open licensing and access
practices for satellite systems and earth stations, open market access, open skies, international
gateway liberalization, regional harmonization of regulatory networks, and orbital slot
procurement.
Government Satellite Sales: Another main source of demand for satellite capacity and services
derives f
rom Azerbaijan’s government agencies. The various programs represented under the MCIT
plans are discussed in detail later in this document. Contractor believes that the aggregate demand for
capacity, represented by the various programs, could easily exceed the unsold transponder capacity
available on the first satellite and would demand considerable bandwidth on the second as well. This
bandwidth and the related satellite services, custom-tailored for the various governmental departments,
could be easily served by Azercosmos from a centrally-managed VSAT platform owned and operated
by MCIT. Contractor suggests that the government must do what it can to encourage open and
transparent business relationships between the various ministries. Without such relationships, it will be
impossible to implement and sustain a centralized VSAT platform for the government’s national
services.
Regional Market Access: See Section 3 below on sales and marketing skills and resources required to
capture the new regional markets targeted in Azercosmos business plan. In addition, to deliver its
capacity and services at an international level, the Azercosmos regulatory team must obtain appropriate
operating licenses (e.g. landing rights) from the telecommunications authorities of each country within
the region targeted for satellite services.
FINAL REPORT: DEFINITIONAL MISSION TO AZERBAIJAN:
AZERCOSMOS – AZERSPACE-2 FEASIBILITY STUDY
August 07, 2013
Space Partnership International
21
3.4. PROJECT SPONSOR'S CAPABILITIES AND COMMITMENT
The Contractor shall submit a description of the host country Project Sponsor's authority to receive
and manage a USTDA grant. The Contractor also shall assess and describe the Project Sponsor's
business/government operations, and commitment and ability to implement the project. This should
include a description of the Project Sponsor's previous commitments; work with U.S. companies,
overall responsiveness, business activities, and government mandate.
Azercosmos Capabilities
Azercosmos has been directed to develop a complex and dynamic national and regional satellite
communication business in a very competitive commercial environment. Its capabilities must meet
the critical demands required by this project.
Based on our review of the organization, we feel that Azercosmos has the resources, expertise, and
positive local experience to meet its objectives. It has a qualified local staff to meet technical and
operational requirements for its current program, but may need to enhance its knowledge or add
managerial positions for the proposed Azerspace-2 program through additional training and
expansion in IT, engineering, sales, and services. Refer to Appendix 1 for staff listing by function
and location.
Contractor has identified asymmetry in the organizational structure, with major human resources
gaps in sales and marketing functions. In order for Azercosmos to grow in this emerging market,
both nationally and regionally, it will need to immediately develop a skilled and globally-
networked sales and marketing force to compete in an ever-changing and competitive satellite
services marketplace. Although Azercosmos started its business relatively recently, in February
2011, it has already achieved great progress. It has hired dozens of employees from the
telecommunications industry, the majority of whom hold advanced degrees from universities
outside of Azerbaijan.
Azercosmos believes that a service-oriented focus, a politically neutral approach, possession of
language skills commensurate with its target markets, and an understanding of the culture of those
markets will provide the company with a unique competitive advantage.
12
Satellite operators in the
area that Azercosmos covers with Azerspace-1 and/or plans to cover with Azerspace-2 who may
constitute direct competitors are listed in the table below.
12
Source: Interview with Azercosmos Sales & Marketing Management
Top Satellite Service Operators: Africa
•
Intelsat
•
Eutelsat
•
SES
•
Hispasat
•
Measat
•
Telesat Canada
•
Turksat
Top Satellite Service Operators: Central Asia
•
Turksat
•
Intersputnik
•
JSAT
•
Telesat Canada
•
ABS
•
AsiaSat
•
Measat