BRASILIA, Brazil and
CARLSBAD, Calif., May 22, 2019 /PRNewswire/
-- Telebras (B3/Bovespa: TELB3 & TELB4), a Brazilian
state-controlled public telecommunications company, and Viasat Inc.
(NASDAQ: VSAT), a global communications company, announced today
the final approval of their contract by The Tribunal de Contas da
União (TCU), also known as the Brazilian Federal Court of Accounts.
Today's TCU ruling gives Viasat and Telebras the ability to quickly
provide internet service across all of Brazil.
In October 2018, the TCU requested
certain modifications to the Telebras-Viasat contract in order to
fully commercialize broadband services on Telebras's SGDC
(Geostationary Satellite for Defense and Strategic Communications)
Ka-band satellite. Today's TCU ruling approved all modifications,
enabling the two companies to continue bringing high-speed,
affordable internet service to unserved and underserved
communities, health clinics, schools and hospitals across all
of Brazil. The agreement also enables the companies to
leverage the SGDC satellite for enterprise and aviation markets, as
well as provide satellite-enabled Community Wi-Fi hotspot and
residential services across Brazil.
Lisa Scalpone, vice president and
general manager, Viasat Brasil, commented, "From the beginning, we
have been committed to full compliance with Brazilian law. We
recognize that our relationship with Telebras is a complex and new
business model, and we appreciate the thorough analysis of it by
the TCU and its staff."
Since October 2018, Telebras and
Viasat have installed more than 4,500 broadband access sites,
mostly schools. Telebras and Viasat combined the capacity of
Telebras' SGDC satellite with Viasat's innovative satellite
platform to bring affordable and scalable broadband services to
Brazil. The arrangement is founded
on a success-based revenue-share model.
"This is a great day for the people of Brazil," said Helcio
Vieira, commercial director of Telebras. "In working on a
partnership model, we can take full advantage of the synergies
between the partners to enable the commercial viability of the SGDC
satellite — Brazil's only
high-capacity Ka-band satellite covering 100% of the country's
territory. Our goal is to connect the unconnected across the
country and meet our obligations to provide internet services to
Brazil's citizens, including under
the e-government initiative known as Governo Eletrônico - Serviço
de Atendimento ao Cidadão (GESAC), of the Ministry of Science,
Technology, Innovation and Communications (MCTIC)."
Scalpone continued, "With today's TCU approval, Brazil's important goal to reach every corner
of the country with internet will be realized. We expect to connect
thousands of additional sites in the coming months, bringing
important social and economic benefits to the people that need it
most in the region. We are proud to be a part of Brazil's digital growth plans, and will
continue to work with Telebras to provide critical socio-economic
benefits, achieved through the power of our connectivity
partnership."
"The importance of today's TCU decision, regarding the
Telebras-Viasat contract, is that it will enable Brazil to leverage the benefits of the
investments made in its satellite communications infrastructure,
and bring broadband connectivity to key government points of
interest; provide communications assistance during major
catastrophes; and help connect millions of Brazilians, promoting
digital and social inclusion. In the first few months of the new
Federal administration, we were able to make satellite connectivity
available over the SGDC satellite, connecting over 4,500 sites,
with more than 1,200,000 students now connected at around 3,700
schools," reinforced the president of Telebras, Waldemar
Gonçalves.
For more information about Viasat's presence in Brazil, visit here.
About Telebras
Telebras is a mixed-capital and
publicly traded company, linked to the Ministry of Science,
Technology, Innovation and Communications (MCTIC). It is today
identified as the telecommunications arm of the State in the
execution of policies for the sector and in the strategic guarantee
of a private and secure network for the traffic of public
administration information. The SGDC project and the more than
26,000 kilometers of the terrestrial fiber optic network of
Telebras form the most modern and comprehensive telecommunications
network in Brazil, offering
integrated solutions throughout the country.
About Viasat
Viasat is a global communications company
that believes everyone and everything in the world can be
connected. For more than 30 years, Viasat has helped shape how
consumers, businesses, governments and militaries around the world
communicate. Today, the Company is developing the ultimate global
communications network to power high-quality, secure, affordable,
fast connections to impact people's lives anywhere they are—on the
ground, in the air or at sea. To learn more about Viasat,
visit: www.viasat.com, go to Viasat's Corporate Blog, or
follow the Company on social media
at: Facebook, Instagram, LinkedIn, Twitter or YouTube.
Forward-Looking Statements
This press release contains
forward-looking statements that are subject to the safe harbors
created under the Securities Act of 1933 and the Securities
Exchange Act of 1934. Forward looking statements include among
others, statements about the benefits of the strategic agreement
between Viasat and Telebras; including the continued
delivery of high-speed, affordable broadband services to all of
Brazil; and the number and
prioritization of sites that will be connected in the future.
Readers are cautioned that actual results could differ materially
from those expressed in any forward-looking statements. Factors
that could cause actual results to differ include: the parties'
ability to successfully integrate and operate the new strategic
agreement, and achieve expected synergies and other benefits; the
ability to attract and retain key employees for the new strategic
agreement; the impact of competition; the ability to develop
products and technologies; the impact of changes in the financial
markets and global economic conditions; risks associated with the
operation of Viasat's ground segment infrastructure;
risks associated with the operation of Telebras' satellite, which
is to be used to supply new internet services, including the effect
of any anomaly, operational failure or degradation in satellite
performance; reduced demand for products as a result of constraints
on capital spending by customers; changes in relationships with, or
the financial condition of, key customers or suppliers; reliance on
a limited number of third parties to manufacture and supply
products; and other factors as may be detailed from time to time in
the Company's public announcements and SEC filings. Please refer to
the risk factors contained in Viasat's SEC filings available
at www.sec.gov, including Viasat's most recent Annual Report
on Form 10-K and Quarterly Reports on Form 10-Q. Readers are
cautioned not to place undue reliance on any forward-looking
statements, which speak only as of the date on which they are made.
Viasat undertakes no obligation to update or revise any
forward-looking statements for any reason.
Copyright © 2019 Viasat, Inc. All rights reserved. Viasat, the
Viasat logo and the Viasat signal are registered trademarks of
Viasat, Inc. All other product or company names mentioned are used
for identification purposes only and may be trademarks of their
respective owners.
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SOURCE Viasat, Inc.