Satellite operator Yahsat in demand and plans expansion

Masood Sharif Mahmood, CEO of Yahsat. Courtesy Yahsat

The satellite communications company Yahsat said demand for its services is now beginning to recover, after it had slowed because of global economic woes and the oil price plunge.

Yahsat, a unit of Abu Dhabi investment firm Mubadala Development, believes the industry will grow after bottoming out in key emerging markets, according to chief executive Masood Mahmood.

“Overall the industry has been depressed over the last two years 2015, 2016,” said Mr Mahmood.

“What we are seeing in emerging markets such as Africa [is that] we are near the bottom when it comes to demand [for] satellite services, IP and broadband, and definitely the worst is sort of behind us.”

Globally, satellite industry revenue grew 3 per cent to US$208.3 billion last year from 2014, a slower growth rate than the 4 per cent achieved in 2014, according to the Washington-based Satellite Industry Association.

“When it comes to broadcast, we have our niche markets, which is the eastern markets,” said Mr Mahmood. “We have seen some pressure due to the global economic conditions and also due to depressed oil prices, where oil-dependent economies in the region and budgets in the region are depressed, but definitely we have started to see some recovery.”

The company plans to launch its third satellite, Al Yah 3, which follows Y1 A and B in 2011 and 2012, next year as part of plans of expanding its footprint.

Al Yah 3 will extend the company’s YahClick satellite broadband services to a further 19 countries and 600 million users across Brazil and Africa as the company looks to meet rising demand for broadband internet access in emerging markets.

Yahsat has established an office in Rio de Janeiro ahead of the official launch of services in Brazil next year.

Yahsat already has offices in Abu Dhabi and Cape Town.

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