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Vrio to Offer Project Kuiper Satellite Broadband in 7 South American Countries to Help Bridge the Digital Divide

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Vrio , parent company of DIRECTV Latin America and Sky Brasil, has partnered with Amazon's Project Kuiper to bring satellite broadband to seven South American countries: Argentina, Brazil, Chile, Uruguay, Peru, Ecuador, and Colombia.

This agreement aims to provide affordable, high-speed internet to unserved and underserved communities, benefiting an estimated 200 million people who currently lack connectivity.

The collaboration leverages Project Kuiper's low-latency, high-bandwidth satellite network, offering nationwide coverage without the need for extensive infrastructure. Initial service demonstrations are expected to begin later this year.

Positive
  • Vrio's partnership with Amazon's Project Kuiper will provide affordable, high-speed internet to underserved communities.
  • The project targets approximately 200 million people without internet access in seven South American countries.
  • Project Kuiper's low-latency, high-bandwidth satellite network ensures fast and reliable internet connectivity.
  • Nationwide coverage without the need for extensive infrastructure like fiber optics or fixed wireless systems.
  • Service demonstrations are expected to start later this year, showcasing the project's feasibility and readiness.
Negative
  • The project relies heavily on the successful deployment of Project Kuiper's satellite constellation.
  • Potential regulatory hurdles in each country could delay implementation.
  • Initial service demonstrations may not cover all planned areas, leading to slower rollout.

Insights

Market Impact: The announcement of Vrio's collaboration with Amazon's Project Kuiper has significant implications for the South American internet service market. By leveraging low Earth orbit (LEO) satellites, Vrio can bypass the challenges of traditional infrastructure, offering competitive and affordable internet access. This could disrupt existing providers and create new market dynamics, especially in underserved areas.

Competitive Landscape: Traditional ISP's reliance on ground infrastructure, such as fiber optics, is costly and geographically limited. Vrio's satellite-based service can rapidly scale, offering nationwide coverage. This partnership positions Vrio as a formidable player in the broadband market, potentially capturing a significant share in regions where competition is limited.

Long-Term Potential: In the long run, this initiative can transform digital connectivity in South America, fostering economic growth and digital inclusion. Industries like e-commerce, remote work and online education will likely see substantial benefits, driving overall consumption and regional economic development.

Revenue Streams: This deal can significantly boost Vrio's revenue. By targeting unserved and underserved areas, Vrio taps into a massive, untapped market. The operational expenses of satellite broadband are relatively lower after initial deployment, promising high margins.

Investment Perspective: For investors, this partnership offers a robust growth story. The scalability of satellite internet can lead to a rapid increase in customer base, translating to higher revenues and potentially stronger financial performance. However, investors should be cautious about initial deployment costs and regulatory hurdles.

Risk Factors: Despite the promising outlook, there are risks. The success of Project Kuiper's full deployment is important and any delays or technical issues could impact service roll-out and revenue realization. Moreover, local regulatory environments across different countries could pose challenges.

Technology Impact: The use of LEO satellites by Project Kuiper represents a significant technological advancement over traditional geostationary satellites. LEO satellites offer lower latency and higher bandwidth, making them suitable for modern internet applications like video streaming and online gaming. This can drastically improve user experience compared to existing satellite internet services.

Innovation Potential: Vrio's use of Project Kuiper's network could serve as a test case for the viability of satellite internet in other global regions. Successful implementation in South America could pave the way for similar initiatives worldwide, elevating Amazon's and Vrio's status as pioneers in this field.

Vrio companies DIRECTV Latin America and Sky Brasil will use Amazon’s satellite broadband network to make internet connectivity available for unserved and underserved communities

SEATTLE & BUENOS AIRES, Argentina--(BUSINESS WIRE)-- Today Vrio Corporation, parent company of DIRECTV Latin America and Sky Brasil, and Project Kuiper, Amazon’s low Earth orbit satellite broadband network, announced a distribution agreement to offer fast, affordable internet connectivity in seven countries in South America.

Outside Amazon headquarters in downtown Seattle. From left to right: Rajeev Badyal, vice president of Project Kuiper; Darío Werthein, president of Vrio Corp.; and Panos Panay, senior vice president of Amazon Devices & Services. (Photo: Business Wire)

Outside Amazon headquarters in downtown Seattle. From left to right: Rajeev Badyal, vice president of Project Kuiper; Darío Werthein, president of Vrio Corp.; and Panos Panay, senior vice president of Amazon Devices & Services. (Photo: Business Wire)

Vrio plans to use Project Kuiper’s network to provide connectivity services to residential customers in Argentina, Brazil, Chile, Uruguay, Peru, Ecuador, and Colombia through DIRECTV Latin America and Sky Brasil, in accordance with local regulations. This agreement will bring new affordable, high-speed internet connectivity options to an area with a total population of approximately 383 million people, including approximately 200 million people the World Bank estimates are still not connected to the internet.

DIRECTV and Sky will use Project Kuiper's low-latency, high-bandwidth satellite network to bring the benefits of fast and reliable internet to areas that would otherwise be both challenging and prohibitively expensive to serve. With Project Kuiper, the companies will offer nationwide coverage in each country—something that is not practical with traditional connectivity options like fiber optics or fixed wireless that require extensive infrastructure.

Darío Werthein, president of Vrio Corp., stated: "This collaboration with Project Kuiper is in line with our strategy of extending our services throughout South America and continues to define us as a regional leader in information, digital entertainment, connectivity and innovation promotion. We are concerned with bridging the technology gap and even more so the digital divide for our future generations. And the time is now. Our commitment translates into action. Providing internet access across the region ensures the development of communities; and that is a commitment for our company." He added, "We look forward to bringing the benefits of affordable internet access and connectivity to more communities to reach further with a service that will revolutionize the way people connect."

“Project Kuiper is a powerful opportunity to make a difference in people’s lives,” said Panos Panay, Amazon’s senior vice president for devices and services. “There are hundreds of millions of households around the world that don’t have access to reliable broadband internet, which means they can’t take part in things that we can take for granted, like being able to learn online, run a business online, shop, or enjoy streaming entertainment. Working with Vrio to bring affordable access to broadband means we can enable so many more people to create, connect, and learn in new ways.”

"Project Kuiper’s mission is to deliver fast, affordable broadband to areas that have traditionally been difficult to reach,” said Rajeev Badyal, vice president of technology and head of Project Kuiper at Amazon. "Our network has the capacity and flexibility to serve tens of millions of customers around the world, and this distribution agreement with Vrio is part of our commitment to working with regional providers who share that vision. We look forward to working with Vrio to serve customers across South America.”

Project Kuiper recently tested two prototype satellites as part of its successful Protoflight mission. It expects to begin deploying its satellite constellation in the coming months, and to start service demonstrations with Vrio and other select customers later this year.

For more information on Project Kuiper, visit https://www.aboutamazon.com/projectkuiper.

About Vrio Corp.

Vrio Corp. is a leading American media and technology company in Latin America and the Caribbean in digital entertainment services, content production, information and connectivity with more than 40 million viewers in 11 countries. It offers high-quality content live and on demand through DIRECTV Latin America, SKY Brasil, DGO and SKY+, with sporting events, international events and exclusive programming in Brazil through the SKY brand and in Argentina, Barbados, Chile, Colombia, Curacao, Ecuador, Peru, Trinidad and Tobago and Uruguay through the DIRECTV brand. DGO is its subscription service (OTT) via internet that provides access to a variety of live and on-demand programming in Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Uruguay. The company also offers fiber optic internet through DFIBRA in Argentina, Chile, Colombia, Ecuador and Peru and SKY Fibra in Brazil; and has state-of-the-art satellites and transmission centers, thanks to which it is possible to deliver a wide variety of content to homes in 4K format. Likewise, the firm controls the sports network Torneos y Competencias (TyC) in Argentina and Colombia. For more information visit: www.vriocorp.com.

About Amazon

Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.

About Project Kuiper

Project Kuiper is Amazon’s low Earth orbit satellite broadband network. Its mission is to provide fast, affordable broadband connectivity to tens of millions of customers living in unserved and underserved communities around the world. Project Kuiper is building its network with the capacity, flexibility, and performance to also serve a wide range of enterprise, telecommunications, and public sector customers who need secure end-to-end connectivity services for their people, facilities, and equipment. To achieve its goals, Project Kuiper is deploying thousands of satellites to low Earth orbit—connected to each other by high-speed optical links that will create a mesh network in space—and linked to a global network of antennas, fiber, and internet connection points on the ground. Following a 100% successful Protoflight mission, Project Kuiper will begin deploying its satellite constellation in 2024 ahead of launching commercial service in 2025. Learn more about Project Kuiper here.

Amazon.com, Inc.

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FAQ

What is the partnership between Vrio and Amazon's Project Kuiper?

Vrio has partnered with Amazon's Project Kuiper to provide satellite broadband in seven South American countries.

Which countries will receive satellite internet from Vrio and Project Kuiper?

Argentina, Brazil, Chile, Uruguay, Peru, Ecuador, and Colombia.

How many people are expected to benefit from Vrio and Project Kuiper's satellite broadband service?

Approximately 200 million people who currently lack internet connectivity.

When are the service demonstrations for Project Kuiper expected to begin?

Service demonstrations are expected to start later this year.

What are the key features of Project Kuiper's satellite network?

Project Kuiper's satellite network offers low-latency, high-bandwidth internet connectivity with nationwide coverage.

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