Maritime Satellite Services
Transcription
Maritime Satellite Services
Asia-Pacific Satellite Communications Council•ISSN 1226-8844 NEWSLETTER Asia-Pacific Satellite Communications Council Suite T-1602, Poonglim Iwantplus, 255-1 Seohyun-dong, Bundang-gu, Seongnam, Gyeonggi-do, 463-862 Korea Tel: +82-31-783-6244 Fax: +82-31-783-6249 E-mail: [email protected] Website: www.apscc.or.kr Maritime Satellite Services INTERVIEW Nikolay Testoedov, General Designer & General Director, ISS-Reshetnev FOCUS ASIA EO in Asia: Government Awake – Private Sector Awakening 2 0 1 2 Q1 www.apscc.or.kr 1 S T Q u a r t e r 2 0 1 2 • Vo l u m e 1 8 • I s s u e 1 03 MESSAGE FROM THE PRESIDENT 04 F EATURES: MARITIME SATELLITE SERVICES 04 M aritime Satellite Communications: Moving to Higher Frequencies 08 Inmarsat Under Fire: A Coming Upset at Sea? 14 S atellite Communications and ICT Solutions for the Maritime Industry 20 KVH’s mini-VSAT Broadband Service 26 INTERVIEW 26 N ikolay Testoedov, General Designer & General Director, ISS-Reshetnev 30 FOCUS ASIA 30 EO in Asia: Government Awake – Private Sector Awakening 36 SATELLITE TRENDS 36 A pplications, Markets, Directions – Asia Pacific’s Golden Satellite Era 40 APSCC MEMBERS 42 INSIDE APSCC 42 Event Review: APSCC – PTC’12 Breakout Session 44 SATELLITE INDUSTRY NEWS 47 CALENDAR OF EVENTS 48 ADVERTISERS’ INDEX As we enter a new year in 2012, I pray from the bottom of my heart that this year will be wonderful for each and every company that is a member of APSCC. this, the satellite industry transitioned well, sustained by new demand from economic development in emerging nations and stable demand in advanced nations. As we reflect back on 2011, it was truly a difficult year. From the end of 2010 to the beginning of 2011, the La Nina effect brought great rains that resulted in flooding causing great damage to Australia, Brazil, Sri Lanka, and South Africa. In October, there were major floods throughout all of Thailand and businesses that had expanded into Thailand halted operations, causing great damage to the world economy. On the other hand, soon after the M6.3 earthquake happened in February in Christchurch, New Zealand, the M9.0 great earthquake happened in the coastal waters of eastern Japan in March, causing a massive tsunami that had a devastating effect across the eastern Japan region. At the same time, there was the major disaster at the Fukushima Daiichi nuclear power plant, leaving many inhabitants in the area with no choice but to evacuate. Because of these disasters, manufacturing of electronic and automotive parts in eastern Japan were stopped, greatly affecting production operations all over the world. In October, there was even an M7.1 earthquake in Turkey, making this year the worst year filled with a great deal of damage from both flooding and earthquakes. What does 2012, and beyond, have in store? Natural disasters resulting from climate change are predicted to be frequent in coming years, and occasional earthquakes are unavoidable. Learning from the myriad of disasters last year, there is surely a need for every nation in the world to work together to prepare for disasters. Maintaining communications during times of disaster is one of the most important issues in these preparations, and satellite communications, having a big role to fulfill in this, ought to be set up in every nation. Further, international cooperative relationships should be developed. APSCC would like to contribute toward these efforts, as much as we can. Looking at governmental affairs, the Jasmine Revolution in Tunisia was seen as an opportunity by anti-establishment groups in Arab nations including Egypt, Jordan, and Libya, where demonstrations intensified. As a result, the Egyptian and Libyan governments collapsed and were rebuilt as democratic systems. On the economic front, major national debt problems based mostly in American and European nations came to light, forcing the financial system into an extremely unstable state. With dollar and euro acceptance declining, the future of the world economic condition became very unclear. Last year, amidst the confusion in the world economy, we saw many situations where countries could not develop strong countermeasures within themselves, or could not work in cooperation to develop strong countermeasures regarding the financial crises, and problem solving had to be delayed. This year, starting with the presidential election in the United States, changes to governments in nations all over the world are anticipated. Currently, amidst the global disasters and political and economic confusion that once did not exist, democracy is on the verge of a crisis and many nations are finding that important policy decisions cannot be made. We hope that, truly for the people, and for global stability and economic development, bipartisan interests can be set aside and national pride and the egos of citizens will also be set aside, correct decisions will be made, strong governments that can create international cooperative relations with nations around the world will be set up, and solid policies will be implemented to help overcome the crises of today and tomorrow even one day sooner. In this way, 2011 was a very difficult year with economic and political crises as well as many natural disasters. Despite Yutaka Nagai President, APSCC 04 FEATURESⅠ Q1•2012 Maritime Satellite Communications: Moving to Higher Frequencies Wei Li, Senior Consultant, Euroconsult of the offerings are at 64 to 256 kbps range), and largely restricted to coastal waters and the the service is usually provided at a fixed monthly northern parts of the Atlantic Ocean. MSS sys- fee typically ranging from US$900 to US$5,000. tems like those in L-band require less mainte- Some Ku-band terminals are now even compara- nance and are highly resistant to environmental ble in size to L-band products, for example KVH’s conditions, such as rain fade, causing a reliabili- mini-VSAT service has a Ku-band antenna as ty issue for Ku-band VSAT. MSS terminals still small as 37cm in diameter. have significant advantage in equipment cost 05 and installation cost over VSAT systems as For 2011, Euroconsult has observed high single- well. Indeed, many maritime VSAT service pro- digit growth in both terminals and revenues for viders complain that they spend millions of dol- the maritime VSAT market. We estimate there lars per year to procure VSAT equipments and are currently about 8,800 active maritime VSAT then lease to end-users who are not willing to systems operating in C- and Ku-band on a glob- bear the upfront costs. al basis. This growth is expected to continue in the next decade, and by 2021 the global mari- Nevertheless, the MSS business faces increas- The maritime industry has been historically con- the upcoming Ka-band (26.5 to 40 GHz) frequen- time VSAT market will nearly triple in number of ing pressure from the Ku-band VSAT services, servative and slow to adopt new telecommuni- cies bring more cost-effective value proposi- active terminals. The upcoming Ka-band servic- affecting revenue and ARPU (average revenue cation technologies. In the past, shipping com- tions. es are expected to take the relay from currently per user), which has declined significantly. A fast-growing Ku-band services and become an very large number of recently-installed MSS panies largely relied on proven solutions, principally MSS (Mobile Satellite Systems) services Broadband satellite data communication servic- important driver for market growth in the next broadband terminals are intended as backup or provided by Inmarsat, Iridium and Thuraya sys- es are gaining market acceptance with a grow- 10 years. gap-filler solutions to a VSAT system. MSS tems operating at L-band or between 1525 and ing number of ships adopting these new gener- 1646.5 MHz. This situation has been changing ation services to replace legacy satellite termi- On the MSS/L-band side, high-data-rate sys- ular, is expected to grow at almost 15% annual- quickly, as satellite communication services nals, leading to strong growth in the maritime tems, such as FleetBroadband from Inmarsat ly in number of terminals through 2021. In terms operating at higher Ku-band (12 to 18 GHz) and satellite communications market. Mobile VSAT and OpenPort from Iridium, are also benefiting of revenue, despite strong growth of higher fre- (very-small-aperture terminal), especially from the trend towards higher speed data com- quency services, L-band service will still repre- Ku-band VSAT, has been rapidly taking market munications. For instance, the leading MSS share from legacy MSS services. operator Inmarsat will very probably report 2011 MSS Maritime Wholesale Revenue Forecasts broadband service (at least 128 kbps), in partic- as a second consecutive year with over 10,000 Asset munic ty com safe king & trac ations For a long time the use of maritime VSAT sys- FleetBroadband terminals in net addition. tems was limited to high-end market segments Inmarsat’s counterpart, US-based Iridium, also such as oil & gas rigs, petroleum tankers and has strong growth of its OpenPort broadband large cruise ships due to the constraints of a service. In the coming years, UAE-based large antenna, high capital investment and limit- Thuraya is expected to capture new subscribers ed coverage. However VSAT technology has for its broadband service developed through a advanced rapidly in the last several years, allow- partnership with Comtech. Number of VSAT Terminals by Frequency Forecasts Ka-band ing for smaller, lighter, cheaper and easier-toMSS Narrowband 2008 2009 2010 MSS broadband(from 128 kbps) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 install equipment. Other issues such as coverage Despite all the improvements from the VSAT have also been largely overcome through joint side, L-band solutions still have some advantag- efforts by VSAT service providers, equipment/ es over Ku-and C-band solutions. Maritime antenna manufacturers and satellite operators. VSAT still has considerable coverage gaps and Maritime VSAT system data rates are currently issues with the handover between different sat- available at up to 5 Mbps (although the majority ellite beams. In particular, Ku-band coverage is Ku-band C-band 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 06 Q1•2012 Quarterly Newsletter MSS Wholesale Revenue vs VSAT Capacity Revenue Forecasts nent personnel. Remote monitoring systems in 2013-2014 to win back market share lost to generally need only low connection speeds (<20 Ku-band VSAT providers. kbps) but increasing automation could require VSAT MSS higher connection speeds (i.e. 56-128 kbps). Shipping companies, fishing vessels and other That increasing automation may well be ahead. maritime customers are benefiting from the In one example, Hyundai Heavy Industries competition and the convergence between MSS unveiled its remote monitoring and control and VSAT. Many ship operators have reported 'smart ship system’ in March 2011. Vessel oper- that the migration to new generation MSS ser- ators can remotely control engines and control- vices has helped them to reduce spending, as lers and manage other important on-board sys- service prices for new MSS products are gener- tems from offices on shore using satellite links. ally lower than for legacy products. Many other The convergence of satellite technologies and ship operators are enjoying the fact that with hybrid L- and Ku-band terminals currently the same spending, their ships now have unlim- observed may help overcome the MSS data vol- ited satellite usage once switched from MSS to ume and speed issues, as well as coverage and VSAT. reliability issues related to Ku-band maritime 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 VSAT. Such solutions use VSAT systems as the On the supplier side, VSAT operators have expe- backbone and the MSS services as backup, with rienced a period of fast growth and are looking traffic and network management centralised forward to winning more customers from MSS into a single interface. providers. Meanwhile MSS operators are forced sent over 50% of the total maritime satellite the more recent Inmarsat service bundles communication market value in 2021. designed for heavy users to prevent them from Beyond the already widely-accepted Ku-band the market. For long term perspectives, compe- migrating to Ku-band VSAT). service, the maritime satellite communication tition among different satellite technologies will market will soon evolve to an even higher fre- endure, and the convergence of MSS and VSAT For both MSS and VSAT services, growth in the to cede some margins to remain competitive in next 10 years will primarily come from crew On the operations side, operational and adminis- quency, the Ka-band. The largest Ka-band proj- is expected to reshape the maritime satellite welfare communications and increasing data trative communications needs onboard vessels ect is from the MSS operator Inmarsat which is communication sector. demand from ship operations as well as admin- play an important decision-making role in the preparing its proprietary Ka-band VSAT service istrations. selection of satellite solutions. Higher frequency VSAT services allow ships to realize bandwidth- Shipping companies are facing increasing diffi- hungry applications such as route planning, culties attracting qualified personnel due to engine diagnostics, electronic cargo declaration, rough conditions at sea and the fact that crew navigation chart and real-time meteorological members must live for extended periods of time information updates at a flat monthly cost. away from families and friends; this has opened Despite a higher airtime price, L-band services market opportunities for satellite communica- generally provide a more reliably connection for tions for crew welfare and entertainment. such mission-critical applications. Traffic for crew communications can represent Wei Li is senior consultant at Euroconsult and editor of Maritime Telecom Solutions by as much as 80% of total data traffic onboard a Smaller fishing ships also require real-time sat- Satellite - Global Market Analysis & Forecasts, Aeronautical Telecom Solutions by ship. In this type of scenario, VSAT is the most ellite communications to acquire fish pricing Satellite - Global Market Analysis & Forecasts, and Mobile Satellite Communications cost-effective service; with a fixed monthly fee, information in order to choose the best destina- Markets Survey – Prospects to 2020. Euroconsult is a consulting and analyst firm spe- vessel crew can have unlimited access (MSS tion port while still in the middle of the ocean. cialising in satellite applications, communications, and digital broadcasting, providing services are still based on pay-as-you-go mod- Satellite is also used for remote management of els, except for government leasing services and certain operations which do not require perma- strategic consulting and analysis, comprehensive research reports and forecasts. Mr Li can be reached at [email protected]. 07 08 FEATURESⅡ Inmarsat Under Fire: A Coming Upset at Sea? It’s easy to manage a monopoly, not so easy to compete… Alan Gottlieb, Managing Director, Gottlieb International Group, Inc. As we move into 2012, the big news is the like- tive challenges. On all fronts it faces a battle to ly end of the Inmarsat maritime communications maintain its position as a market leader, or even monopoly and the dawn of a highly competitive a survivor in its present form. Like Kodak, RIM, environment where mariners can secure high and Nokia, disruptive forces in the market may speed, voice and data services at affordable have been recognized too late. prices. While I have written previously about some of With its highly touted Global Xpress service still the threats Inmarsat faces, when viewed collec- years away, Inmarsat faces head to head com- tively, these threats have profound implications petition with aggressive and well-financed mar- for the Company and for future competitive itime VSAT providers. In a desperate effort to landscape of the maritime satellite market. retain customers, it is slashing prices on Fleet Broadband and VSAT and “going direct,” a strategy that has resulted in Channel Conflict with its third party distributors. Global Xpress – The Right Service for Maritime? Introduced with much fanfare and billed as a As a testimonial to Inmarsat’s vulnerability, revolutionary new high speed service, significant Maersk’s recently announced selection of Ku doubts exist as to Global Xpress’ ability to effec- Band for its 400 vessel fleet constitutes a stun- tively support the increased reliability demanded ning rejection of Inmarsat’s Xpress Link with GX by major fleet operators as they deploy more upgrade offer and highlights the issue of wheth- and more latency and sensitive applications. er Ka Band’s receptivity to Rain Fade and the associated bandwidth and fluctuations may Based on our conversations with the service pro- make the GX Service unsuitable for the high- viders, there is significant skepticism regarding end, “mission critical,” applications increasingly the performance of Global Xpress in the severe common in large fleets. precipitation environment often encountered at sea. While Inmarsat tells us that a link can be Never before has Inmarsat faced such competi- maintained, the quality of that link is in question. 10 Q1•2012 Quarterly Newsletter According to our own experts, while it may be age on seven different beams thereby eliminat- is likely to produce an intensely competitive envi- possible to maintain a connection, Bit Rate and ing the need for VSAT service vendors to contract ronment and possible bandwidth over capacity – available bandwidth will drop dramatically and with as many as five different operators. This a situation that could drive prices down. vary significantly based on rain intensity, causing new network will feature enhanced coverage potentially disruptive affects for high bandwidth (approximately 95% of the world’s shipping In this region, Eutelsat, Avanti Communications, and Bit Rate sensitive applications. Regardless of routes), 50 Mbps speeds, automatic beam the Emirates Yahsat 1B and Newsat’s Jabiru 1 Inmarsat’s claims to the contrary, the fact is that switching and seamless global voice, data and service will all compete with Inmarsat. In addi- Ka services have never been proven to operate video services. As Ku technology is proven in the tion to Middle East competition, Telenor effectively in such environments. Ironically, maritime VSAT market, VSAT vendors, unlike Satellite Services will launch its own competi- Inmarsat in the past consistently challenged Ku Inmarsat, can offer this service to their most criti- tive regional Ka Band maritime service over Ship Equip has been highly successful to date, Band on the same issue, and now introduces Ka cal customers and be assured that it will be reli- Europe in Mid 2012. its early sales volume success was built primar- Band, a service much more sensitive to Rain Fade. able in most weather conditions. (Photo: Maersk) ily upon the Offshore Service Vessel and Fishing markets in the Scandinavian region, a market Acknowledging this potential limitation, the Third Party Distributors in Jeopardy that is now saturated. Company plans to offer unlimited Fleet Broadband A Highly Competitive Market back up as assurance of connectivity. However, Unlike the L Band market where Inmarsat previ- the market as to Global Xpress’ Rain Fade charac- As the Company (now selling under the Inmarsat the 1500 Millisecond latency rates sporadically ously enjoyed a near monopoly, the Company teristics; Inmarsat will need the support of a loyal banner) attempts to grow beyond its home reported for this service raise doubts as whether now faces numerous aggressive competitors. In and effective third party distribution network to region, it will face intense competition from the it too can be relied upon to host latency sensitive addition to giant Vizada, Orange Business counter competitor critique. Yet, incredibly, established VSAT players and in the case of the applications and the fact that it is a fully contend- Services, MTN, Harris/Caprock, Speedcast, Inmarsat has chosen to compete against the very European shipping community, markets less ed service suggests that availability of bandwidth NSSL, Globecomm, KVH Industries, Globe resellers it needs to assist it in marketing the new receptive to a VSAT transition. However, for could be limited in congested sea-lanes. Wireless and other smaller players are all fight- service - a channel through which it currently those new customers who Ship Equip can con- ing for their share of the commercial shipping generates around 60 per-cent of its sales volume! vince to buy Xpress Link, the new SeaTel upgrad- Of course, as Ku competitors continue to educate Given the potential technical shortcomings of VSAT market. Lacking monopoly power, Global Xpress and Fleet Broadband combination Inmarsat is now forced to compete on equal This “going direct” initiative has created a great no risk upgrade to Global Xpress. It’s another and the need for VSAT service providers to pro- terms, a tough challenge for a company that has deal of animosity and raised doubts as to story for the existing customer base. vide increasingly reliable service to their high been accustomed to unlimited pricing advan- whether the DPs will remain in the Inmarsat end customers, we expect that Global Xpress tage and market dominance. able antenna does leave the door open for a new, camp or turn to alternative providers. In addi- The installed base is equipped with SeaTel 4003 will only be deployed in less demanding appli- tion, Vizada, Inmarsat’s largest third party dis- and 4006 and 4009 antennas. While the 4006 cations such as web surfing or for sporadic tributor representing nearly 40 per-cent of and 4009 will be upgradable at several thousand Inmarsat’s sales volume, has been acquired by dollars cost, the 4003 will not be upgradable. clear sky conditions, if and only if it is offered at Numerous Ka Band Competitors Emerging European aerospace giant EADS, giving Vizada This means that the 4003 antennas will have to low cost. If so, it could also find a market Further complicating the outlook for Inmarsat’s the financial backing it needs to compete at any be de-installed and disposed of in some way. among small commercial vessels and leisure Global Xpress is the coming competition in what price level with Inmarsat. Furthermore, the de-installation will require the craft that sail in temperate weather regions. was anticipated by Inmarsat to be a prime mar- transmission of high volume batched data under use of a crane, and the packing and crating and ket for the new service – the Middle East. With a shipping of the SeaTel antennas poses a costly Enhanced Ku Availability active oil exploration, the Middle East is an ideal Ship Equip Internal Distribution – Capabilities Limited By 2014 Intelsat will have launched its new environment for Ka Band services. Acquired as a potentially effective distribution Global Xpress upgrade. Unless Inmarsat is pre- channel for Global Express, Ship Equip’s ability pared to absorb the costs involved in the relatively dry climate, continued military conflict, Global Mobility Network. Based on proven Ku (potentially $5,000 to $10,000 removal cost per vessel) and logistically complex obstacle to a Band technology, the service will have a total of However, the attractiveness of the region has not to upgrade a significant number of existing Ku upgrade or for the removal of the 4003 anten- four new satellites comprising a constellation gone unnoticed by Inmarsat’s competitors and customers to Global Xpress and generate nas, we see no real incentive for the existing that will provide single operator, global Ku cover- the availability of several new Ka Band services increased sales volume remains in doubt. While customer base to upgrade to Global Xpress. 11 (Photo: Maersk) 12 Quarterly Newsletter Limited Potential in Commercial Aviation and Energy price in most applications. C Band SCPC links With high demand for bandwidth and a rain free price point; Ku Band has not achieved a domi- environment, one could expect Inmarsat’s new nant position in the market. Hence, the mass service to be especially appealing to the com- adoption Global Xpress in this sector is extreme- mercial aviation market. However, due to the ly unlikely. While we do see potential in desert cell-like infrastructure of Global Xpress, its regions and for mass broadcast of batched in acceptance is unlikely. clear sky conditions and for Crew Welfare pur- are still extremely common and even at a lower poses, mass displacement of C and Ku by Global While the service’s 50 MBs per/cell capacity Xpress’ Ka service is extremely unlikely. may be sufficient for maritime, it is highly limiting for aviation. According to Panasonic craft can be concentrated in a relatively small Light Squared – An End to a Lucrative Revenue Stream area creating enormous demands for bandwidth With the FCCs recent denial of Light Squared’s not characteristic of maritime. This capacity lim- permission to operate due to interference with itation, combined with the Service’s inability to GPS, Inmarsat’s revenue stream from the ill-fat- support bandwidth intensive IP TV programming ed broadband venture will likely be terminated. Aviation, in this market, large numbers of air- Boeing i5 (Photo: Boeing) and the lack of a spare satellite is expected to limit Global Xpress’ acceptance to second tier commercial and corporate aviation markets In Conclusion where smaller aircraft and less congested Whether Inmarsat is able to overcome substan- routes may make the service feasible. First tier tial obstacles to the adoption of Global Xpress commercial Carriers will almost certainly con- and successfully the new Service will determine tinue to rely on Ku Band where multiple tran- if the once giant monopoly ultimately prospers or sponders can provide the capacity and back up suffers irreversible decline. Either way, the suc- satellites exist to insure continuity of service. cess or failure of Global Xpress will determine The prospects for Global Xpress in Energy mar- who looses and who wins in the ongoing battle kets are even less promising. for the maritime communications market. In upstream Energy, VSAT buyers are extremely conservative and reliability takes precedent over Alan Gottlieb is Managing Director of Gottlieb International Group Inc. (www.gottliebinternationalgroup.com). Established in 2001, his firm is a recognized authority on the use of VSAT in Maritime and Oil and Gas VSAT markets. The Company provides Product Development, Marketing Research, Sales Training to VSAT Service Vendors and Satellite Operators, System and Vendor selection assistance to shipping companies and M & A support to Private Equity firms. Gottlieb is the author of numerous articles in Sat News, Digital Ship, and Satellite Market Research And is a frequent speaker at Digital Ship, Offshore Communications, The Pacific Telecommunications Conference, Nor Ship, the Washington Satellite Exhibition, and other industry events. He also founded and Manages “Maritime Satellite and VSAT – Independent Opinions,” a well-known Group on “LinkedIn.” 14 FEATURESⅢ Q1•2012 Satellite Communications and ICT Solutions for the Maritime Industry 15 three months of 2011 with 142 attacks worldwide 3. Faced with such challenges, ship owners need to increase their ability to monitor their assets at sea. Maritime communications services have seen a rise in adoption to bridge the gaps for needs Titus Yong, Vice President, SingTel Satellite including crew communications, crew management, operations and vessels monitoring. Where satellite links to provide for ship to shore communications, and subsequently Internet connectivity, become a norm, shipping companies already recognize the benefits beyond having Internet onboard, by demanding and implementing innovative communications applica- Outlook of the Maritime Industry Regulations such as the Maritime Labour 2006) 2, 2Maritime Labour Convention, 2006 (MLC, 2006), International Maritime Organisation, 2006 3International Chamber of Commerce, "Attacks off the Somali coast drive piracy to record high, reports IMB", 2011 tions to enhance crew welfare, cost manage- The shipping sector has long played a central role Convention, 2006 (MLC, which is aimed ment, operational efficiencies and vessels man- SingTel’s global and regional MVSAT solutions in facilitating trade and economic activity, and at safeguarding seafarers’ rights to proper work agement, thereby capitalizing and transforming provide shipping operators with “always-on” maritime shipping is still considered to be the conditions, have been ratified by an increasing communications cost to returns. broadband connectivity and the added flexibility most cost-effective method of bulk transport over number of countries. These regulations are use- to choose between C- or Ku-band networks. great distances. Yet, despite its vital contribution ful and have produced positive results, but apart SingTel also developed the world’s first and to world trade, the maritime industry is facing a from regulations, the onus is still on maritime perfect storm of challenges that will have signifi- firms to look for innovative and cost-effective cant impact on its continued sustainability. ways to further enhance the working environ- SingTel: Driving innovations in satellite communications and maritime ICT solutions ment onboard. Maritime operators around the world are part- smallest 1.5m diameter C-band stabilised antenna, bringing the benefits of MVSAT to smaller vessels with limited deck space. nering with SingTel to meet their communica- One of the most significant is in the hiring and 1T he Nippon Foundation and the Japan International Transport Institute “A study on the future global supply and demand for seafarers and possible measures to facilitate stakeholders to secure a quantity of quality seafarers,” 2010 Global satellite communications coverage with SingTel (Photo: SingTel) retaining of qualified personnel. The Nippon The industry’s profitability has also been badly tions needs. As a satellite operator and tele- Foundation and the Japan International affected by rising fuel prices and vessel overca- communications service provider across multi- Facilitating unified communications to enhance crew welfare Transport Institute (JITI) predict that by 2020, pacity. Yet, global demand remains anaemic: as ple platforms, SingTel offers the advantage of a Equipping vessels with onboard Internet con- the maritime industry will face a shortfall of consumers in Europe and the United States buy one-stop satellite ICT communications provider, nectivity and voice communications is essential, approximately 32,153 senior officers and 46,881 less, maritime firms are now facing a massive with end-to-end integration of the ICT value but beyond that, SingTel offers a suite of value glut in shipping capacity. In late January 2012, chain — from infrastructure to support services. added Internet services, which provides seafar- the Baltic Dry Index, a key barometer used to Leveraging more than 35 years of experience ers options to connect with their loved ones and Shipping companies find it hard to attract and assess freight cost on international maritime working with maritime operators and an allows crew to move beyond communicating retain onboard personnel because the salary lev- routes, fell to a three-year low. Companies are installed base of more than 20,000 ships, over costly circuit voice networks, thereby els are less attractive, given the long work hours, looking raise operational efficiencies to improve SingTel has the expertise and track record to enhancing live onboard. tough and isolated conditions. Furthermore, rising margins. offer a total solution approach to help maritime maritime staff 1. fuel cost forces operators to implement slow- companies streamline their communications To facilitate low-cost, real-time communications steaming to save on fuel consumption which Finally, vessel security has also become a grow- infrastructure, and cater to specific service at sea, SingTel AIO Connect Services offer a increases travel time between destinations and ing concern. According to the International requirements of its vessels. These include a secure and comprehensive solution that unifies prolongs the duration crew spends onboard. Chamber of Commerce (ICC) International range of satellite narrowband and broadband data, email, call, chat and Internet surfing func- Maritime Bureau’s (IMB) global piracy report, services such as Maritime VSAT (MVSAT), tions into a single, integrated platform. Seafarers piracy at sea hit an all-time high in the first Inmarsat FleetBroadband and E&E Services. can now send and receive emails and SMS via a Clearly, the industry recognises the problem. World’s first and smallest 1.5m diameter C-band stabilized Antenna developed by SingTel, bringing the benefits of MVSAT to smaller vessels with limited deck space (Photo: SingTel) 16 Q1•2012 Quarterly Newsletter web interface, keep up with the latest news, and SingTel is further transforming crew communica- of policy setting, coupled with data compres- make Voice over IP (VoIP) phone calls with tions with the recent introduction of CrewX sion and network acceleration to minimise reduced bandwidth constraints and less expen- change@SingTel (crew.singtel.com). This is an bandwidth consumption. sive traffic charges. industry first lightweight portal catered especialShip owners can make use of SmartPacketTM Monitoring and management of vessels to ensure security Shipping companies can further leverage activities and enrichment, such as world news, compression technology to enable bandwidth One of the key priorities of ship owners is to be DesktopConnect solution, a key component of sports news, stock portfolio, chat, Facebook, efficient voice communications onboard. updated on the status of their cargoes, crew AIO Connect Services, to increase crew mobili- Twitter and online courses. Seafarers can also SingTel AIO Connect Services includes and vessels by maintaining consistent ship-to- ty. Using DesktopConnect, crew can log in to a create online communities to stay in touch with ConnectPortal, a compact device that provides shore communications. Indeed, more maritime single email account, even when moving from friends, family and co-workers. Using widgets secured access for up to three Ethernet devices companies are now realising the full potential one vessel to another. DesktopConnect also pro- and compression technology to scale down data such as notebooks, wireless access points, or of shipboard ICT to achieve greater visibility vides seafarers the freedom to use pre-paid size, crew and shipping companies enjoy greater even the Multi-VoIP Connect device. Integrated into the most critical aspects of their fleet oper- messaging cards to manage their own SMS, cost savings using CrewXchange. management tools ensure that only authorised ations and monitor for security threats. devices can be plugged in, and data usage can Since its launch in April 2011, CrewXchange be closely accounted for. To optimise communi- SingTel provides a comprehensive suite of sat- AIO Connect Services includes Multi-VoIP has attracted resounding interest and reviews cations cost, ConnectPortal offers ship owners ellite communications services and solutions for Connect that allows multiple crew members to from seafarers and their family and friends, full cost visibility through its data usage moni- remote management of vessels from shore. The make voice calls at the same time. This rugge- with current registration rates far exceeding toring capabilities. SingTel integrated Network Management dised console comes with eight analogue phone expectations. A well-received crew rewards ports for eight concurrent voice connections to program offering participation in festive games Ship owners also require advanced monitoring obtain real-time visibility in tracking ship loca- be made per IP, compared to industry norms and opportunities to win welfare related prizes tools to enable them to better manage call, data tions and proactively monitor the status of sat- which limit each IP to just one voice or data continue to propel the number of visits and reg- and streaming traffic expenses. The SingTel ellite connectivity and network equipment connection. Sing Tel uses SmartPacketTM com- istrations to the site. Commtroller delivers these functionalities, onboard their vessels. Ship owners can be bet- pression technology, which consumes 5kbps or allowing shipping companies to take control of ter updated on vessel status and key operation- less to enable phone calls to be made with min- traffic expenses while enjoying the convenience al issue through on-demand reports and real- of accessing on-demand satellite communica- time alerts. Connect also gives users their own voicemail, Raising operational efficiency and optimising costs through maritime ICT applications direct phone extensions, as well as three voice To maximize business efficiencies, vessels func- quality settings to manage costs. tion as extended offices of the shipping compa- imum bandwidth consumption and without impacting web surfing or email. Multi-VoIP CrewXchange screenshot (Photo: SingTel) tions traffic information. ly to seafarers, providing entertainment, social mail, chat, web and voice traffic expenses. 17 System (iNMS) allows maritime operators to nies. Regular exchanges of operational data between ship and shore are necessary for both parties to be well aligned on information such as shipping reports, journey progress and approval procedures. In the offshore marine sector, for instance, research vessels for the oil and gas exploration industry generate large amounts of data which need to be delivered via the Internet to corporate networks for analysis and decision making. SingTel is helping operators reduce costs with improved traffic management through the use Proprietor to satellite, fibre and IP infrastructure, SingTel owns 4 teleports pointing to more than 30 satellites including hot birds, and has an extensive terrestrial network of 125 PoPs over 80 major cities. (Photo: SingTel) 18 Q1•2012 Quarterly Newsletter Piracy threats still loom large over the maritime located in countries shielded from natural disas- sector, and major shipping operators are tap- ters offer the advantage of availability and reli- ping into advanced shipboard ICT to fortify the ability. On top of that, satellite communications safety of its crew and the security of its vessel provided by operators with teleport backups will operations. SingTel’s IP-based e-surveillance offer resiliency on an infrastructural level. solution is one such technology that is aimed at helping ship owners protect their vessels by From the angle of ease of management, an enabling remote monitoring of vessel opera- established network of end to end infrastructure tions from their land offices through Internet or from satellite, fibre to IP will help shipping com- 3G-enabled mobile devices. Armed with infor- panies, especially those with a global or region- mation regarding the status of their vessels, al footprint, gain time savings . A single point of maritime operators can now make quicker contact and ownership for connectivity and responses during emergencies or take pre-emp- communications provisioning will bring the ben- tive action in case of pirate activity. efits of convenience and responsiveness to change of business requirements and for fault Asset tracking is another way of allowing mari- management. time firms to ensure that their crew and cargoes SingTel’s ST-2 satellite covers the Middle East, Central Asia, Indian sub-continent, South East Asia and Mediterranean Sea for both C-band and Ku-band. (Photo: SingTel) are safe. Available through SingTel’s collabora- From a resource standpoint, maintaining a pool tion with GlobalStar Inc., SingTel AITrac helps of IT resources to serve internal functions is a network of more than 125 Points of Presence Innovation Award in 2009, and a Top 20 ranking maritime operators consistently track and man- luxury for most companies. Especially for the (PoPs) in over 80 major cities, supported by an for Global Teleport Operators by World Teleport age their assets, and provide notification when maritime industry, where IT needs are split into award winning IP VPN infrastructure (Connect- Association in 2010. the assets stray outside the coverage area via niche shipboard technology and software tech- Plus) for secured connectivity. SingTel supports geo fencing alarms. nology, it is even more challenging to provide the maritime industry with professional services While maritime firms have traditionally lagged end to end internal IT support. To create sus- including three 24x7 Network Operating behind other industry segments in terms of tainability in value added services rendered for Centers, a global service center and global technology adoption, there is a growing aware- Provisioning for End to End Maritime Satellite Services satellite communications, managed services deployment services in major ports worldwide. ness among today’s ship operators about the From a larger perspective, providing effective satellite communications services with round The maritime and communications industries vices can bring. SingTel’s close collaboration satellite communications go beyond the scope the clock Network Operating Centers, Helpdesk, have consistently recognised SingTel's technical with key players across the entire industry in of offering options for uplinks and downlinks and integrated vessel network management superiority and leadership in maritime ICT. the development of shipboard ICT is creating a and the ability to value add with Maritime spe- systems can offer targeted expertise to proac- Industry awards the company have garnered in future where vessels can always rely on cific services. There are fundamental factors tively monitor and troubleshoot connectivity recent years include the SeaTrade Asia advanced maritime communications to operate like communications infrastructure, geographi- concerns to ensure availability. Technical Innovation Award in 2010, Lloyd’s List efficiently, cost-effectively and securely. can alleviate operational IT concerns. Effective advantages that advanced communications ser- cal location and professional services that are key to support uninterrupted services, availabili- As one of Asia’s leading satellite communica- ty, and quick turnaround time. tions and ICT provider, SingTel, strategically Titus Yong is the Vice President of SingTel Satellite since 2006. He has held various located in Singapore, offers operational advan- senior positions in the ICT industry over 18 years, including Senior Director of Corporate Ship to shore communications can be on- tage with the ownership of 4 teleports pointing Business Marketing and COO for Managed Hosting business unit in SingTel, and Director demand; however, satellite connectivity must be to more than 30 satellites including hot-birds. of Business Marketing and Product Management for Optus based out of Sydney. His always available. For a satellite communica- With almost fully sold capacity in its second achievements include a successfully implemented pan-Asia network of data centers, IP tions provider to deliver uninterrupted services, satellite, ST-2, launched in May 2011, it has convergence and SME solutions investment championing and securing of key govern- it needs to also mitigate natural calamities and plans to launch its third satellite next year. In power outages. Earth stations strategically addition, SingTel has an extensive terrestrial ment and enterprise contracts. Titus holds an Honours Degree in Electrical & Electronic Engineering from the National University of Singapore, specializing in Communication Technology. 19 20 FEATURESⅣ KVH’s mini-VSAT Broadband Service Vivian Quenet, Vice President, Sales, Asia-Pacific Region, KVH popularity among commercial mariners by offer- Why are ship operators choosing broadband, and why now? ing a valuable combination of benefits from a Mariners are bringing broadband connections single provider onboard every day, to support business opera- KVH’s mini-VSAT Broadband service gaining tions, crew morale, and retention efforts, and The demand for broadband at sea is really no ever-changing regulatory and reporting require- different than the demand for broadband on ments. The commercial maritime industry, one shore. The difficulty has always been that the of the world’s most expansive business chan- cost of data communication at sea has been so nels, is looking for ways to improve efficiency expensive that mariners have spent most of and cut costs just like every other business their time trying to figure out how not to use it. dealing with the current global economy. Modern communication services and especially KVH’s TracPhone V7 satellite communications system in use aboard a U.S. Coast Guard cutter (Photo: KVH) VSAT have finally provided affordable broad- Almost every aspect of operations on board a band connections at sea, and ship owners and vessel can be managed more efficiently when ship management companies are jumping at the they are connected to the company's business opportunity to harness the productivity of network. For operations, real-time navigation onboard networks to drive profitability. information and weather reports can help a vessel captain select more efficient routes, result- In addition to existing satellite communications ing in shorter voyages and significantly less fuel users on large vessels increasing their data use, consumption. Administrative tasks can be han- smaller vessels are now starting to deploy broad- dled from centralized locations as opposed to band satellite services, as well. Advancements in being performed by personnel on board the ves- small broadband satellite technology like KVH's sel. Maintenance and support services for mini-VSAT Broadband service and TracPhone® onboard equipment or IT systems can be provid- V-series antennas are enabling vessels as small ed remotely from centralized groups of experts as 30 feet to bring the advantages of broadband working with onboard technicians. If there is a service onboard. breakdown, video conferencing can be used to SM enable the onboard technician to show the 22 Q1•2012 Quarterly Newsletter With low barriers for entry for “virtual network operators”, many of these service providers migrate between the lowest-cost services available, with little to no incentive to invest in network infrastructure or commercial-grade hardware development. In contrast, the mini-VSAT Broadband network was designed from the ground up to be a unified, global maritime satellite communications solution. KVH identified the challenges of older KVH’s TracPhone V7 and V3 (Photo: KVH) KVH’s TracPhone V7 (Photo: KVH) solutions and set out to create a radically new KVH’s TracPhone V3 (Photo: KVH) hardware and service combination that would problem to an onshore expert, offering the pos- tion to support recruiting and crew retention provide mariners with compact, low-cost, easy- and support all coming from the same provider sibility of remote diagnostics and assuring that efforts, because a connection to home is an to-use connections that would help their busi- – KVH. This concept eliminates the frustration the appropriate repair parts are available when important benefit to crew members. Since this nesses succeed. of other services, which piece together an their ship reaches port. Hundreds of different kind of connection can be provided easily and at aspects of the vessel’s performance can be a very low cost with a TracPhone V7 or V3, this KVH teamed with satellite technology partner ware from another, and service from yet anoth- monitored remotely and optimized for improved essential benefit can be offered without risk to ViaSat to design the mini-VSAT broadband net- er, creating a nightmare if something goes performance, again resulting in greater fuel effi- the ship’s bottom line. antenna from one provider, below-decks hard- work. Built on a foundation of advanced spread- wrong. For mini-VSAT Broadband providers, the ciency and reduced emissions. Security manag- spectrum technology, the global network uses equipment comes from one place, is installed by ers can monitor the real-time positions of the the kind of small, affordable hardware typical of one of KVH’s hundreds of factory-certified tech- Inmarsat, and delivers the fast, low cost broad- nicians in ports around the globe, and is then band service typical of VSAT solutions. A vari- activated by KVH. If a question arises, there’s ety of metered and fixed-rate airtime plans are no question about who to call. The benefits of a input on hazardous areas with recent reports of What’s so different about VSAT solutions, particularly the ones that have been introduced in the past 5 years? available to meet the requirements of any appli- unified solution provide valuable convenience at pirates or terrorists. Finally, requirements of Historically, the satellite communication solu- cation and the constraints of any budget. As an every stage, from purchase decision to installa- maritime labor conventions for improving the tions available have been impractical, due to example, an entry level metered airtime pro- tion to maintenance. communications and entertainment services hardware size, airtime cost, or both, for a large gram offers 50 MB of data for only $49 per offered to crew members can be delivered over number of commercial mariners. The popular month. This works out to only $.99 per mega- An additional benefit of this unified, single-pro- broadband networks. Inmarsat service was globally available and byte. Voice calls to either land phones or cell vider solution is that KVH designs all of the offered small, affordable hardware, but the ser- phones anywhere in the world are only $.49 per TracPhone V-series hardware. Following the Applications of particular importance are those vice was limited to 432 Kbps, and it was very minute. Packages designed specifically for the introduction of the network and the TracPhone that support regulatory compliance (electronic expensive. Maritime VSAT (Very Small Aperture commercial market are also available -- for V7 antenna in July, 2007, KVH developed the filing of paperwork for programs like ECDIS), Terminal) adapted a service designed for use on example, a customer spending just under $2000 compact, 14.5" TracPhone V3 in 2011. The remote monitoring of engines and other sys- land to provide fast, low-cost broadband con- per month can select a package that includes TracPhone V3 brought reliable broadband to an tems, as well as IT systems, and affordable, nectivity at sea. Unfortunately, the equipment both the lease charge for a TracPhone V7 anten- entire population of mariners for whom it had always-on connectivity to support business effi- needed to deliver the VSAT service was very na and a fixed-rate mini-VSAT broadband air- never been practical, because the system is ciency, including sending large files. Solutions large and prohibitively expensive. time plan. compact enough to work on fishing boats, small vessels in their fleets, communicate with government forces deployed to protect commercial shipping, and review planned routes to provide like mini-VSAT Broadband can be easily inte- supply vessels, and other vessels as small as grated with a ship operator’s corporate IT struc- In addition, the maritime VSAT market is highly The mini-VSAT Broadband service offers an 30'. The system was well-received and is gain- ture to support these functions. Many mariners fragmented, with more than 75 providers offer- additional, one-of-a-kind benefit in that it is a ing popularity, even as KVH began work on its also utilize the mini-VSAT Broadband connec- ing service via a variety of hardware solutions. single, unified solution, with hardware, service, next development. 23 24 Q1•2012 Quarterly Newsletter In February, 2012, KVH introduced the 1-meter ability to competing hardware and software-only crew members, or allow the crew to use the crew TracPhone V11 antenna in conjunction with a solutions. This is achieved using CommBox’s calling phone to buy minutes directly from KVH major upgrade to the mini-VSAT Broadband net- many features, which include web and data com- using their credit card. and ensure reliable, high-quality service. A scalable, customizable solution for every application pression and optimization to increase network specifically to work with a new C-band overlay to the Ku-band network, expanding the cover- The mini-VSAT Broadband network is an ideal departments; integrated e-mail, web compres- Covering key global markets age area to 75°N and 70°S latitude, or 95% of channel for running interactive ship-to-shore sion, firewalls, and security; and least cost rout- Of course, the maritime business is a global the Earth’s surface. The TracPhone V11 is the applications. The network is very fast, with data ing and bandwidth management for multiple one, and communications services need to be first next-generation global VSAT network using speeds as fast as 2 Mbps from shore to ship communication systems and/or carriers. available where they are needed in order to be a single, relatively small antenna to provide off- and 1 Mbps from ship to shore. It also has very shore connectivity to vessels almost anywhere low latency and very low jitter, which are impor- CommBox is fully customizable, offering fleet oper- expansion plan for the mini-VSAT Broadband they travel, including all of the world’s major tant considerations in the quality of data com- ators the choice of a private or KVH-managed hub, network in 2011, bringing service online along shipping routes, offshore oil fields, and com- munications. The mini-VSAT Broadband network along with five distinct software modules that can almost all of the world’s major shipping routes mercial fishing grounds. It uses a single, stabi- has a proven track record of more than three be packaged in any configuration so that operators and fishing grounds. This was followed in lized antenna with a unique dual-band transmit years of operation and is now delivering more only need to purchase the functionality they plan February, 2012, with the announcement of a and receive capability to seamlessly switch than 100 terabytes of data per year with a net- to use. C-band overlay for the network that extends between the mini-VSAT Broadband network’s work reliability rate of better than 99.5%. This global C- and Ku-band satellite coverage, pro- quality is most critical for large shipping compa- The mini-VSAT Broadband service’s affordable with the exception of the extreme polar regions) viding the same high-quality voice and broad- nies like Nordic Tankers that need to track mul- rate plans make it easy to allow crew Internet for TracPhone V11 users. Best of all, service is band data services regardless of the type of sat- tiple vessels during long voyages, and defense and e-mail use with minimal affect on the ship’s seamless throughout the single- or dual-band ellite connection. organizations like the U.S. Coast Guard, which bottom line. For operators utilizing the CommBox mini-VSAT Broadband coverage areas, so mari- adopted the TracPhone V7 and mini-VSAT Ship/Shore Network Manager, the QuickCrew™ ners can rely on a solid connection even as they Broadband for more than 200 of its cutters. software module offers more control, with roam- travel from port to port. work. The new dual-band system was designed Further, because KVH manages the mini-VSAT capacity; remote PC management for customer IT successful. KVH completed the original global coverage even further (blanketing the globe ing crew e-mail accounts and pre-paid e-mail and Broadband network with its partner, ViaSat, ves- KVH is also invested in supporting major mari- sels, weather conditions, and other factors can For owners and operators like these, with multi- be tracked in real time, and adjustments can be ple vessels to keep track of, fleet management made to ensure optimal service for all subscrib- software is the go-to tool for tracking ship and KVH also offers the Crew Calling Gateway, an 2011, the company opened headquarters in ers. KVH employees monitor the mini-VSAT fleet data. KVH’s CommBox™ Ship/Shore easy-to-manage solution specifically for crew tele- Singapore. This office ensures a local point of Broadband Network Operations Center (NOC) 24 Network Manager is a perfect choice for these phone use. This option features a dedicated voice contact and local-language services to partners hours a day, 7 days a week to support customers operations, offering superior flexibility and reli- line just for crew members, which can be hooked and customers throughout the key Asia-Pacific up to any telephone onboard. Management of this region. In addition to headquarters in Singapore feature couldn’t be simpler – fleet operators can and Denmark, KVH also operates a local office choose to purchase pre-paid calling cards from in Norway, with offices planned for Japan and KVH in $25 or $100 increments and resell them to South America in the near future. KVH’s dual-band TracPhone V11 and C/Ku-band mini-VSAT Broadband coverage map (Photo: KVH) KVH’s TracPhone V7 in use aboard a Vroon tanker Internet access. time markets around the world. In October, Vivian Quenet is KVH’s Vice President of Sales for the Asia-Pacific region. He previously served as director, Asia-Pacific for mobile satellite communications provider Vizada and as a corporate sales manager for Bouygues Telecom Enterprises. Quenet holds a degree in Marketing and International Sales from the University of Toulon & Var in France and speaks fluent French, English, and German. 25 26 INTERVIEW Q1•2012 Interview with Nikolay Testoedov, General Designer & General Director, ISS-Reshetnev The world satellite market is known for fierce competition. What do you do to enforce the ISS position at the market? What countries do you consider as potential customers? 27 manufactured solar array panels for satellites ELECTRO-L and SPECTR-UF created by the Lavochkin Company. This is not just an object of labour, as we have very extensive amount of work to do over the nearest years. The point is that different satellites impose different requirements which in turn require different designs which Currently, our achievements at the international market are first we then employ for our own use. Pragmatically speaking, we have stipulated by strategic foresight of the Russian Federal Space an opportunity to develop various modifications of separate assem- Agency which financed creating of new perspective satellite buses blies and mechanisms to be then employed in our products, for the of medium and heavy classes. Thanks to these developments based money appropriated for other projects. on long-time experience of JSC ISS and on the quality system adopted at the Company, we were capable of entering the international market with confidence. It goes without saying that the current situation is such that, as a The enterprise headed by you pursues the innovation strategy course. Please provide some more details on the point. proverb says, “you need to scat to keep aflat”. We constantly evolve relations with our potential customers. We understand for sure that I would like to recall that the simplest and most understandable def- nobody will welcome us at the markets of Europe, America and inition of the word “innovation” is “to convert knowledge to China as they are developing their productions and create their own money”. While considering the company’s development process dur- The JSC “M.F. Reshetnev “Information satellite systems” is one of the world leaders in cre- working areas. However, there are other countries, such as coun- ing the last five years, it is necessary to highlight that today we ating communications, navigation and geodetic satellites. Company offers the hi-tech com- tries of Latin America, Africa, Arab countries, and Indo-Chinese have practically exhausted extensive methods of the Company’s pro- petitive products at the market, that is acknowledged with winning the international tenders countries. They already have real needs in satellite services to be duction cycle. That is, we have implemented the maximum opera- and concluding international contracts. procured from western suppliers, and moreover they have reached tion rate currently achievable, including overtime work during week- such a level of national self-consciousness which requires having ends and days-off, maximum possible machine utilization. However, The General designer and general director of JSC ISS, Nikolay Testoedov is confident that their own products including domestic information networks, televi- such an approach has its own limitations. As a result, today we designing of new spacecraft shall not be limited with improving of their technical perfor- sions systems, etc. Today, these countries are rather customers than manifest the intensive production methods. mances only. The intensive way of development shall be selected which finally will allow purchasers of services from countries of Western Europe and the creating products capable of providing users with new-quality services. In his interview, Mr. United States. We consider them to be of first priority among our The most evident approach is purchase of high-performance equip- Testoedov provides details of tendencies in the advanced satellite-building field, and keys of potential customers; that is why currently we are manufacturing ment, computerization of all production cycles and implementation the Company success. satellites for Israel, Indonesia, Ukraine and Kazakhstan. of electronic circulation of documents. This is our permanent target. Use of advanced software to perform computations, analyses, estimations, monitoring at various stages of spacecraft production The sequence of satellite production adopted by ISS starts with designing stage and goes through up to in-orbit control of satellites. And what about commercial promotion of complete satellites and, in particular, separate achievements? cycles, employment of elements with higher integration levels mostly, qualitative measures including mastering of Ka-band frequencies, developing new large-scale Today, it has no sense and it is economically inefficient for each The most important is new quality. For example, it is not an innova- antennas, increasing satellite power capabilities. enterprise to keep the complete sequence of all satellite production tive approach for our company to procure a machine with a process- stages thus it makes a specialization preferable. Roscosmos realizes ing speed of 30,000 rpm. However, when this machine is used to Today, the main strategic task of the Company in terms of spacecraft production is creating payloads this tendency in establishing industrial centers. We believe it cor- process not ordinary details but honeycomb structures which cannot of our own. We gradually implement “import substitution” and increase portion of our own works in rect to be involved in creating not only complete satellites but also be processed using a machine with less processing speed, then each new contract. individual components, assemblies and systems. For example, we some innovation features are evident because in this case we have What is the current strategy of the ISS development? The current tasks of the Company include rather development and manufacturing of new class satellites than just increase of the production volumes. We have already created perspective and competi- which means that these elements are simpler externally but more complicated internally (from kitting-up point of view), unification of designs – all these processes are innovative to some extent though they are also extensive ones. tive satellite buses EXPRESS-1000 and EXPRESS-2000, and continue improving quantitative and, 28 Quarterly Newsletter new quality allowing to implement manufacturing of new structures. At the end of day, a satellite has new characteristics. Being the top manager of a big company, are you confident in stability and success of your company for next years? For sure, I am. This confidence is based on multiple factors. Historically, it is based on the fact that many years ago M.F. Reshetnev founded a scientific production association with a design bureau playTELKOM-3 satellite in the assembly workshop (Photo: ISS) ing the leading role. Such organization appeared to be very viable, in particular, under the difficult conditions of the last several years when only enterprises with complete products managed to survive. The decision made many years ago to establish the closed cycle of ground experimental testing of spacecraft was very important for us. Today, the JSC ISS is the only Russian company whose satellites are transported nowhere but to launch sites, because we are capable of carrying out all types of tests. Our Company has very good production capabilities, quality assurance system, high skilled specialists. We know that we are independent in terms of tests, costs of production elements, etc. This is our Adjustment of large-scale folded antennas of the LOUTCH-5A satellite (Photo: ISS) confidence of today. Confidence of tomorrow is the deserved role in the Russian longterm strategic federal programs such as the Federal Space Program, Federal Targeted Program “Global navigation system”, State arms program; as well as involvement in programs of the Ministry of Telecom & Mass Communications, and other ministries and agencies. As a result, we are sure in the directions of further development of our company, performances of satellites to be created and our production volumes. Extraordinary and Plenipotentiary Ambassador of France in Russia, Mr. Jean de Gliniasty, in the assembly workshop (Photo: ISS) Nikolay Testoedov, the doctor of engineering, professor, corresponding member of the Russian Academy of Sciences, was born in 1951. He graduated from the Leningrad Mechanical Institute with a specialty of mechanical engineer. In 1974-1998, he worked at Reshetnev NPO-PM (now JSC ISS) as an engineer, then as a head of department. In 2006, appointed as a head of the Reshetnev Company, which is the leading Russian company in manufacturing communications, navigation and geodetic satellites. 30 FOCUS ASIA Q1•2012 EO in Asia: Government Awake – Private Sector Awakening Stéphane Gounari, Analyst, Northern Sky Research (NSR) ernments and military organizations. Overall, deep knowledge of local actors and environ- commercial EO satellite operators are reporting mental conditions (crops and agriculture meth- data revenues coming at more than 75% from ods, geomorphology, forest inventory), they are these customers. somewhat shielded from competing larger oper- 31 ators and data resellers. The biggest contract in EO is “Enhanced View” from the U.S. National Geospatial-Intelligence Agency (NGA). It started in 2010 and will last for Asia – EO Consumer, not a Producer 10 years with a total value of more than $7.5 bil- NSR estimates the Asian EO market (data and lion for the delivery of EO data (imagery), VAS and VAS) reached approximately $200 million in contributions to the construction of a satellite. 2010 and is closing in on the European EO mar- Global Optical EO Data Revenues By Region, 2010 Latin America 4% ket (approx. $250 million). The demand for data When assessing EO, it is traditional to separate in the region is increasing, driven by applica- resolution into high, medium, and low and tions such as defense and intelligence, agricul- instruments in either optical or radar. The opti- ture, urbanization, natural resources monitoring and disaster monitoring. The Asian Earth Observation (EO) sector is events such as India’s change of its EO regula- cal segment represents the vast majority of rev- marked by strong governmental and military tions and the acquisition by a Chinese company enues, and there is an ongoing race towards the presence. Major scientific, weather monitoring of an accumulated 21 years of 1m optical imag- higher resolution. The sub-meter optical imag- If imagery from several Indian, South Korean, and military programs, conducted independently ery are signs that government and military ery market represented around 60% of the total Singaporean, Chinese and Japanese (until or in partnership with other space agencies, approaches are being supplemented by more market in 2010. recently), satellites is available on the market, enabled the development of a strong base of market driven approaches. this is more part of a “cost-offsetting” strategy Procurement of an EO satellite being capital than of a real commercial approach. There is local commercial set of players. intensive and thus requiring strong financial currently no fully private Asian EO satellite backing, the EO data market is markedly con- operator. Consequently, satellites are built for The demand for EO products is strong in the World EO Market - Technology and Defense Driven centrated. Three satellites operators possess the countries’ governmental needs, and com- Asian market, which was the third largest mar- Worldwide, the satellite-based EO sector is divid- more than 70% of the market: GeoEye (USA), mercialization of their data is not the primary ket in the globe in 2010 close behind the 2nd- ed into two main parts: commercial, and the gov- DigitalGlobe (USA) and Astrium GIS (Europe). focus. Their reseller network to access world- place European EO market. It is currently non- ernment/military. For the commercial market, it is However, thanks to a trend that NSR identified wide markets is small compared to private Asian companies such as Astrium GIS, GeoEye made up of organizations offering EO data and/or as the commoditization of EO satellites, new actors. This translates into a very low share of and DigitalGlobe that play a significant role. value-added-services (VAS) on an open market. private companies are entering the market with Asian EO satellite operators in the global EO However, this dynamic is changing, and recent On the other hand, the governmental and military affordable satellites offering imagery with an data revenues market, be it for optical (as part of the sector consists of EO satellites whose always better resolution, which will help them shown below) or radar (roughly same market data is not offered in the market. gain some of the major players’ market share. share). The worldwide EO market shows constant Further down the chain, the VAS market is frag- Following the lack of Asian commercial EO sat- growth year-after-year. In 2010, it reached an mented, full of many small SMEs with about 10 ellite operators, most of the revenues in the estimated $900 million for data and $1.2B for to 20 employees. EO satellite operators also Asian market go to non-Asian companies. value-added-services (VAS). While private com- offer VAS but represent only 20% of the down- Astrium GIS has a large share of the Asia mar- pany results for the full year 2011 are not stream market. VAS companies are traditionally ket and is estimated to capture almost 40% of released yet, the first three quarters were very very “local”, having an expertise in their vicinity, EO data revenues from the region. The two oth- promising. which is a key differentiator and a core offering ers “majors”, GeoEye and DigitalGlobe, are esti- (often a specialization in a vertical market such mated to have less than 20% of the Asian EO as agriculture, mining, oil and gas). Coupled to a data market altogether. The market is largely driven by orders from gov- Middle East and Africa 8% North America 65% Asia 3% Source: NSR skills and manufacturing, but not yet a strong Global EO Data and VAS Revenues, 2010-2020 Europe 20% 32 Q1•2012 Quarterly Newsletter However, it has to be noted that 27% of the imaging capacity for 7 years. 21AT will re-sell These changes have to be put in relation to the International Ties Asian EO data revenues are captured by a group this imagery, either directly or have it integrated situation of Asian VAS companies, which is more The strength in international cooperation and of smaller operators, which include the Korea in value-added products for their clients in difficult to assess especially as VAS companies partnerships in the EO sector echoes the Aerospace Research Institute and the National China. This ‘anchor-tenant’ model, applied are traditionally focused on their home market. strength of international relations between Space Organization (Taiwan). mostly to government customers’ purchase of Nonetheless, initiatives such as that created by countries. India, Japan, South Korea and commercial EO data, means 21AT will not be an local Google-Earth in China and India added to Taiwan, for example, have strong and long One important difference between Asian and EO satellite operator “per-se” but “as-if”, mean- numerous contracts for providing EO data to standing relations with Western countries in Western EO sector is the approach to meet the ing that it will act as such for its main customer, Asian VAS companies such as EastDawn and building, operating and financing EO satellites. needs of the defense and Intelligence (D&I) sec- the Chinese government Asian location-based-services companies such as Some examples are: tor. Western countries “externalized” some of Asia Market Share by EO Operator, 2010 ImageSat 6% Antrix/ISRO 4% MDA GSI 6% Others 27% Astrium GIS 39% DigitalGlobe 9% GeoEye 9% Source: NSR China Mobile, YF International and Hazens are •Megha-Tropiques, focused on the analy- their needs to the private sector, accelerating India has for a long time had a commercializa- signs of a healthy and dynamic VAS industry in its development. Asian governments have not tion policy for its EO satellites motivated by a the region. yet reached the same conclusions and still gath- cost offsetting structure. The model they used tropical area, was launched in 2011 is a er data from their own spacecrafts. called for Antrix Corporation to be in charge of result of a collaboration between ISRO and sis of water and energy cycles of the inter- selling EO data from ISRO’s satellites on the Big Government CNES (French Space Agency). France built global market. However in 2011 a report from If the commercial Asian EO sector is not yet as the spacecraft and India launched it. A Tide is Coming the Indian Government’s “Comptroller and developed as it could be, it is not the case in •FORMOSAT-3, a constellation of 6 micro- While there is no real Asian commercial EO sat- Auditor General” put ISRO and Antrix EO activi- the government and military segment. Asian satellites aimed at collecting atmospheric ellite operator in view, there are however signs ties into the spotlight. Besides showing under- government and military organizations are very data for weather prediction and for iono- of change. use of ISRO’s EO fleet of imaging satellites and dynamic with many scientific, meteorology and sphere, climate and gravity research, was operational expenditures not recovered by sales defense programs. This was very well exempli- launched in 2004. It was the result of collab- Beijing-based Twenty First Century Aerospace of data, this report examined the EO data reve- fied by China’s white paper released in early oration between NSPO from Taiwan and the Technology Company Ltd. (21AT) is a reseller of nues from both Indian and international custom- 2012 calling for a “24-hour continuous, high- U.S. based University Corporation for EO imagery for many years now. It has been ers and noticed poor results. Following this resolution surveillance of the Earth”. Atmospheric Research. It will be followed by selling imagery from Beijing-1 to the Chinese report, India had to change parts of its EO poli- government (mostly) for traditional applications cies. such as agriculture, forestry, urban develop- FORMOSAT-7, a constellation of 12 microsatNSR estimates that approximately one-third of ellites to be launched in 2014 and 2017. The the EO satellites launched globally in the next project will be a collaborative project ment, desertification, monitoring of natural Among other changes, it decreased the maxi- 10 years will come from Asia. This represents between NSPO and the U.S. National resources as well as for earthquake related mum resolution down to 1m (was 5.8m) and approximately 100 new satellites over 10 years. Oceanic and Atmospheric Administration. applications (Beijing-1 imagery proved vital dur- opened the acquisition of imagery with a 1m or Half of those will come from government and ing 2008’s Sichuan earthquake for assessing a lowest resolution, from an Indian satellite to military programs of the 3 main Asian EO coun- damage). any foreign or local organization. Such a change tries: China, India and Japan. The other nations of regulation should spur the Indian market as with serious ambitions are South Korea, In 2011, 21AT contracted the UK-based DMCii more applications are available with 1 meter Vietnam, Pakistan, Singapore and Indonesia. for a $170M contract for the supply of imagery imagery. from three 1-meter resolution satellites. Built China’s meteorological program, for example, by a manufacturer based in the UK (SSTL), and Also in Asia, South Korea will launch its shows high ambitions with a LEO and a GEO with launches expected for 2014-2015, these Kompsat-3 satellite in 2012, which will offer 0.8 segment that calls for more than 20 satellites to satellites will be operated by DMCii and are meter resolution optical imagery on the market be launched before 2025. India’s and Japan’s fully financed and dedicated to 21AT during (even if commercialization may not be the main meteorological programs (based on GEO satel- their expected 7-year lifetime. In fact, if 21AT focus) and will therefore be the first Asian satellite lites) are also to be noted, as well as South will not own the three satellites (mainly for with sub-meter imagery commercially available. Korea’s recent one. technology-transfer reasons), it will acquire its Cumulative and New EO Satellites, Asia, 2010-2020 33 34 Quarterly Newsletter •GPM-core, expected to launch in 2013, is ing done by Thales Alenia Space. a collaborative project between Japan’s space agency JAXA and NASA aimed at the But not all Asian manufacturers are controlled measurement of rain from space. It is a fol- by governments. Japan’s NEC Corporation, for low-on of TRMM launched in 1997. example, won in 2011 a contract to provide •China is also deeply involved in internation- Vietnam with two 500kg radar satellites, sign- al collaboration. A good example is the ing its first export contract. However, South CBERS program, done in collaboration with Korea’s Satrec Initiative is maybe the most Brazil. Three satellites have been launched active into the global EO satellite manufacturing under this program since 1997; the fourth market. It developed two EO satellites for the one is expected for 2012-2013. Another United Arab Emirates, one launched in-orbit in example is the China-France CFOSAT, devot- 2009, the other one soon to be launched. It is ed to the monitoring of the ocean surface also assisting Turkey in developing Göktürk-2 wind and wave and planned for launch in and the Spanish-based Elecnor-Deimos in man- 2014-2015. ufacturing Deimos-2. Local Craft Bottom Line Similarly, the Asian satellite manufacturing sec- The Asian EO market is reaching the point tor is very much oriented to meet the needs of where the growth of private satellite operators government and military oriented users, and the becomes possible. Supplementing the govern- main manufacturers are national organizations. mental and military orders, local private satel- Asian EO satellite manufacturers’ skills are in lite operators could drive the use of EO applica- line with their investment in the space sector. tions in Asia, answering the needs of the local Overall, when their skills are not comparable to markets and addressing other regions’ needs by Western manufacturers, they catch up through exporting their products and selling their data. collaboration and technology transfer programs Western EO private players are heavily depen- This article is an to develop local skills and their industrial base. dent of the governmental and military orders, excerpt from a recent NSR report A good example of such collaboration is South and this recipe may also work in Asia. The main entitled Global Satellite-Based Earth Korea’s Kompsat-5, a radar satellite to be question will be if Asian governments are ready Observation, 3rd Edition. launched in 2012 offering 1 meter resolution and willing to entrust their private companies Complete information can be found at imagery (best radar resolution currently avail- with the same level of orders and the same kind www.nsr.com able on the market) that was developed and of applications. managed by KARI with part of the manufactur- Stéphane Gounari is an Analyst at Northern Sky Research (NSR), where he provides quantitative modeling, research, data verification, market analysis and forecasting for the satellite earth observation, satellite launch and manufacturing, and government and military communications sectors. He holds a M.Sc. of Space Management from the International Space University and a Master in Risk Management from Marne-La-Vallée (Paris) business school. 36 SATELLITE TRENDS Q1•2012 Markets, Applications, Directions – Asia Pacific’s Golden Satellite Era Richard T. Kusiolek, Managing Director, TransGlobalNet LLC and 2.8%, the EU at 1.6% and 1.6% respectively. Kopin Tan recently 37 Applications wrote in 2012 that “China begins the second year of the Communist Party’s five-year plan, an exhaustive blueprint that aims to transform Internet Driving Growth Earth’s factory into a more balanced economy with better living The Internet has transformed the World and the Satellite Industry as standards, domestic spending, next-generation technology, cleaner well. Asia Pacific certainly will need a 21st Century communication energy and advanced manufacturing…sales and margins continue infrastructure to grow economically. Many Asian Pacific nations to expand thanks to orders from emerging markets…” The conclu- have huge rural areas that require an extensive investment in inter- sion from the experts was that China will be investing heavily in net land based networks, however, expanding internet technology infrastructure and that will benefit Asia Pacific’s Satellite Industry. for satellite platforms, software, and useful applications will be a powerful incentive to expand their Internet access by flexible satellite networks. William Wade, President and Chief Executive Officer Markets the Global and Asia Pacific’s Satellite Industry, Japan of AsiaSat said that “about 35 percent of our business is this data- but questions still remain. The earthquake, tsunami and nuclear crisis in Japan shook world type broadband connectivity-type activity, as opposed to video. And Growing Economic Surge financial markets and disrupted important global supply chains. Mr. I think, for the foreseeable future, that will continue to be a key driv- Northern Sky’s Research 2012 reported that the Mitsutoshi Akao, General Manager, Global & Mobile Business er for our development as there is so much that is still underserved Division, Space & Satellite Business Group SKY Perfect JSAT in Asia, I think we have a fairly good future. Still we realize that the worth collectively over $250 billion USD from The Outlook for Selected Economies and Markets Corporation talked that “GDP in some Asian countries is growing at terrestrial networks will fill in the gaps. We already have a strategy 2012 to 2027. NSR expects over 1,600 satellites The Asia Pacific (AP) region consists of countries a rate that is outpacing other regions of the world. This growth will in place to develop our satellites, and to look at beams and cover- to be launched by 2025. The US Satellite Industry such as Australia, People’s Republic of China, expand the market population for those looking for the DTH experi- age for some of these emerging markets and applications that we Association (SIA) report concluded, “World Hong Kong, Macau, Indonesia, Japan, South ence. JSAT plans to launch JCSAT-13 in 2012 to meet this demand see on the horizon.” Satellite Revenues were $ 161 billion in 2009, Korea, Malaysia, New Zealand, Singapore, in the Indonesia market. In addition, there are several new satellites and since 2004 showed a steady 11.7% growth. Thailand, Taiwan, Philippines and Vietnam. India planned for the Asia region which will allow replacements for cur- Will the use of the Internet to view television growing in Asia and Russia are sometimes included in this rent satellite assets and will provide new expansion opportunities in Pacific? Harms, stated that “IPTV demand Television delivered by region. The population in (AP) is more than 3.6 markets where further DTH growth is expected.” internet is definitely on the rise and we expect that to continue. global satellite industry should launch satellites Realities billion. China, India and developing countries will There is such a proliferation of digital content around the world that Research by Satellite Industry Association (SIA) continue to drive global economic recovery with demands for both satellite and terrestrial infrastructure will contin- revealed that “the U.S. satellite industry was in strong output growth in developing countries and India a slow downturn shedding 12,219 jobs, or 4.6%, a weaker performance in developed economies. India hopes to linked to the global economic downturn.” The These economic realities in Asia Pacific are driv- launch by June February 7, 2012 Aerospace Industries ing all market sectors, but you must begin with 2012, its heavy population density, the business case for satellite is strong for a Association Report on US commercial satellite any overview on the powerful economic dragon; Geosynchronous variety of applications including direct-to-home video and broad- manufacturers from 1999 to 2009, indicated namely, China. Satellite Launch band solutions.” William Wade acknowledged that “IPTV has had a that the US share of global commercial-satellite Vehicle Mark III little bit of a slow start in many parts of Asia, although it’s gaining sales fell by 50%, or one of three large satel- (GSLV-Mk III) , momentum in places like China and Japan. It’s very well-established China which will give here in Hong Kong, Singapore, South Korea, and in those areas that lites delivered. ue to grow. Ultimately we think that satellite capacity will be inteJCSAT-13 (Photo: SKY Perfect JSAT Corporation) grated with fiber and cable networks to provide integrated solutions that meet the market requirements. Of course in areas with low China, like the current governments of the U.S. ISRO the confidence in launching heavier communication satellites have good fiber connections, and the population density is very Since 2008, the EU and the U.S. have been in a and the European Union (EU), adheres to a of the Insat-4 class, which weigh 4,500-5,000kg (10,000-11,000 lb.). high. Some of the major cities in China are installing IPTV systems, “debt driven economic free-fall” in which they Keynesian command and control economy. In If successful, the rocket also would enhance India’s ability to be a and those seem to be picking up momentum and growing at a fairly are not expected to recover well passed 2015. 2011, China’s GDP grew at 9.2% and currently it competitive player in the multimillion-dollar commercial launch mar- good rate. China has significant restrictions on satellite distribution However, despite a worldwide economic slow- is at a steady 8.4% growth. China’s growth tar- ket, providing launch capability for geostationary Earth, low Earth, and use in China. Therefore, IPTV is a pretty strong growth option down, overall Asia Pacific’s Satellite Industry get in the next five years was set at 7%. As a polar and intermediate circular orbits. ISRO also is preparing 2012 there that the government is looking at, because they feel that they sectors are expected to see revenues expand comparison, the U.S. “had been projected” in launches of GSAT-10, GSAT-7, and GSAT-14, which will fly on have more control over it than they do for DTH or some of the other considerably. This is a key moment in history for 2011 at 2.6% and in 2012 2.8%, Japan at 0.7% GSLV-D5, said K. Radhakrishnan, the ISRO Chairman. satellites.” 38 Q1•2012 Quarterly Newsletter Satellite Network Equipment 39 tors that provide DTH video services in this region to help meet the for a place like China, or high bandwidth broadband satellites that we build provide a cost demand. We currently have several satellites in our backlog that are India, you know, looks pretty effective solution for remote and mobile access, and there are no destined for this region.” William Wade mentioned, “the demand strong. If China is looking to indicators that demand for that is softening. We see growing ment, system components and over the next three years (2012-2015) in Asia for satellite capacity, put up their own positioning demand for video distribution and broadband in the Asia Pacific sub system manufacturing, appli- in the FSS (fixed service satellite) space, is going to be DTH (Direct- satellite networks, I’m sure Region. There is also growing demand for cellular backhaul.” cations, and satellite services rev- To-Home). …DTH will become the main driver for video and then that they’ll try to support that enue? William Wade, said “gen- you will see a conversion from standard-definition to high-defini- with a lot of new applica- erally speaking about Asia, Ka tion, which has not really taken place fully in Asia. Once the conver- tions that will use that ser- band is more wide beams, as sion happens then there will be more demand for satellite capacity.” vice. GPS could be a very interesting development for Asia.” Will increased demand create a surge of Satellite ground equip- AsiaSat 7 Launch, Baikonur 11-26, 11 Nov. 2011 (Photo: AsiaSat) Beidou GPS Shanghai exhibit Visitors looked at a model of the BeiDou satellite navigation system in Shanghai in May 2011 (Photo: Wall Street Journal) Cost Models Cost models in the Satellite Industry will not be coming down in the opposed to spot beams. Ka is foreseeable future. However, Point-to-Multipoint broadcast stream- being used to add more frequency ing-type services particularly those associated with video; satellite as the Ku band fills up, but for Competitive Horizons Directions (2012-2015) still remains the most cost-effective distribution. Reusable space high-throughput requirements, we Mitsutoshi Akao said, “Mobile applications, both in the Maritime Telecommunications, broadband data distribution, satellite news- launch vehicles hold the promise of lowering the cost to access space are seeing people look to Ka band. The demand for the technologies of and Aeronautical fields will also show opportunities for expansion in gathering, emergency services and recovery services, education ser- considerably SpaceX’s CEO Elon Musk says such vehicles could Ka high-power spot beams, frequency re-use, and providing services into regions of the world where satellite is still the best service choice.” vices, cellular back haul are satellite services that are in a growing reduce the capital cost of a space launch to about $50,000. “We see homes, is being driven by governments looking at their education and Wade stated, “China has a great opportunity to use positioning and demand cycle across Asia. Bill Wade spoke, “telemedicine hasn’t important growth potential in the Asia Pacific market. SpaceX’s focus medical systems. However, none of them have really caught on yet, and location devices and these chipsets could be manufactured into set- really taken off on a large scale, but you see it in small, regional on producing the most advanced launch vehicles is really resonating so I think it will take a couple of years before it will be concluded that the top boxes. If you couple that with the cellular networks, China’s fear applications, but it’s not a big one for us.” with customers,” said spokesperson Kirstin Grantham. Ka band is a good fit. There will be certain markets that will start off ear- of unauthorized users accessing DTH could be eliminated. I think lier, like Australia and some of these others that have agreed on their that’s an area that they are probably looking at quite heavily to help national-broadband network plans. China has not decided yet. We are them as they try to roll out a DTH market in China.” Quality of Service Golden Satellite Era watching the trends. We have got a couple of wide-beam Ka band on our Mitsutoshi Akao echoed a common belief that “Demand for higher Asia Pacific appears to be heading for a Golden Satellite Era. satellites just mainly as kind of testing the market and preserving our fre- quality services in these areas will increase the need for more satel- Consumerism and growing disposable incomes are on the rise in lite transponders in some regions. Also Ka and Ku-band use in the Asia. Asia has become truly the engine of growth that Jack Welch, lite broadband services, demand for HDTV, 3D video, and availability of Global Navigation Satellite Systems – a Bright Development in Asia Pacific areas of Government assisted consumer broadband is likely to result the former CEO of GE, envisioned ten years ago after the US col- satellite capacity for those services (will create a surge). However, Direct At the APSCC satellite conference in Tokyo, Project Manager Koji in higher demand for satellite coverage in the years to come. lapse due to the dot-com bubble and financial malfeasance. In 2012, to consumer broadband and TV via satellite will be a preferable solution Terada gave an update on Japan Aerospace Exploration Agency’s Although all these sectors will likely contribute to increased satel- Asia’s infrastructure and the applications are dominant drivers of due to the geographic complexity of the region.” JAXA GPS System, QZSS. Japan’s entry into a GPS constellation will lite sales, DTH applications are still expected to be the most profit- fast growth. The smart phones and devices, when they are launched be a regional space-based PNT (Positioning, Navigation and Timing) able in the future.” in Asia Pacific, their applications skyrocket. Wade said, “From our quencies at our orbital slots.” Harms, talked that the “expansion of satel- system which will covers East Asia and Oceania region and transmits view, Asia has very strong potential. It is economically sound, Satellite Broadband (HDTV, 3D Video) six civil PNT signals. One satellite (QZS-1; MICHIBIKI) was launched emerging markets exist, and the populations are hungry for this new Mitsutoshi Akao of SKY on September 11, 2010. Japan continues to test the operational Growing Demand for High-Bandwidth Broadband technology, and they don’t have legacy systems that have to be Perfect JSAT believed that aspects of its first satellite and is expected to launch other satellites. With a growing demand for high-bandwidth broadband communica- adapted to or upgraded. I would have to agree that the future looks “the future is likely to see Pang Zhihao of the China Daily wrote, “(China’s GPS 35 satellite con- tions by the maritime industry, demand continues to expand even as pretty bright for many of these telecommunications and communica- advancements in communi- stellation) BeiDou currently consists of 10 satellites and covers a the Global Economies are contracting. Dawn Harms said, “Demand tions applications in the near future.” As Oliver Wendell Holmes, Jr. cations distribution in the swath of the Asia-Pacific region from Australia in the south to Russia trends point in the direction of providing more bandwidth every- wrote, “A wise man recognizes the convenience of a general state- DTH, Mobile, and Government and Military sectors in the next in the north. The system is accurate to within 82 feet (25 meters) and where and satellites will continue to play a large role in that. The ment, but he bows to the authority of a particular fact.” decade. Many South Asia countries are expected to have growth now serves China and surrounding areas on a test and not on an oper- potential in DTH viewership, especially for the demand in high-defi- ational basis. Six more satellites are due to launch in 2012. BeiDou is Richard T. Kusiolek nition quality programming.” Harms, said that “we (SS/L) see con- designed to be compatible and interoperable with China’s satnav sys- tinued demand for increasingly higher power geostationary satel- tems.” William Wade spoke, “China is a huge consumer market; and, lites and growing demand for the high throughput broadband satel- as you look at the new applications that are emerging for GPS and lites that we build. SS/L is continuing to work with satellite opera- positioning-type devices, I think it goes without saying that market, Satellite Magazine, UK Satellite Evolution Asia, APSCC, China Communications (CIC) and COSPAR. Professor Kusiolek is a Senior Director of JP Technologies Ptc. Ltd. and Managing Director for TransGlobalNet Consulting Group. TGN is a Global Consulting firm focused on the Satellite, Aerospace, and High Technology Industries. Professor Kusiolek served as the Senior Management Consultant for India’s Metamor Corporation, China’s Huawei Technologies, China’s National Aerospace/Aviation Base, Beijing’s Satellite Conference and Forum, and as the General Manager and Director for China’s WeSoftware Corporation. AsiaSat 7 (Photo: AsiaSsat) is a faculty adjunct professor with the University of Phoenix and also has been a contributing writer for Via As of 2 March 2012 Platinum Member Gold Member Affiliate Member Regular Member (Governments) Regular Member 42 INSIDE APSCC Event Review: APSCC – PTC’12 Breakout Session “Bringing Cost Effective Satellite Communications Technology” Cellular subscribers continue to grow at astounding rates. The rollout of 4G networks is a reality and LTE deployments continue to increase. These are positive growth indicators, but also a strain on the infrastructure. Backhauling and trucking cellular traffic from remote sites have become major challenges. Terrestrial capacity is often unavailable, unreliable and costly. In order to be competitive, the industry needs cost-effectively expanding coverage methods. To tackle these issues in the industry, the first spin-off session of the Asia-Pacific Satellite Communications Council (APSCC) in 2012 was held in conjunction with the Pacific Telecommunication Council (PTC) during the PTC’12 event on January 18th the Hawaiian Village Beach Resort & Spa in Honolulu, Hawaii. The session titled “Bringing Cost Effective Satellite Communications Technology” consisted of presentations by each speaker and panel discussions from eading satellite communications companies from APSCC members including Frederic Morris from Comtech EF Data, Imran Malik from O3b Networks, Rick Abbasi from Intelsat, Dani Indra from Telkom Indonesia and Pedro Leon from ZTE Columbia. Moderated by Gregg Daffner, Vice President of APSCC as well as CEO of GAPSAT, the session covered the subject of how each company is bringing cost effective satellite communications to the customers through their own business strategy and solution. The session also offered an opportunity to the audience to share their insight on extending the current network using satellite backhaul effectively. With industry experts from the APSCC member society, APSCC will continuously hold various satellite expert sessions in 2012 to promote satellite communications as well as the services that satellites can provide. 44 Q1•2012 Quarterly Newsletter 45 Satellite Industry News Satellite Business customer segments, including leisure, commercial transport, oil and SatLink Launches Amos-5 Platforms gas, and commercial shipping vessels. February 1, 2012 - SatLink Communications, a teleport providing First Hughes JUPITER Gateway Commissioned and Delivering High-Speed System Traffic global satellite services, has announced that it has launched operations on the new Amos-5 Satellite across Africa, on 17 have successfully completed their factory and field qualifications and are now operational, delivering high- Gilat Selected by O3b for Supply of Ka-Band Ground Infrastructure speed, end-to-end system traffic over the AMC 15 Ka-band satellite. Crossing this major milestone paves February 14, 2012 - Gilat Satellite Networks Ltd. has signed an 2012, is available on the Pan African C-band coverage in DVB-S and the way for the launch in Q2 2012 of JUPITER, a next-generation, high throughput satellite, which will agreement with O3b Networks Limited, the developer of a new high- DVBS-2 and additional two Ku-Band MCPC (Multi Channel Per deliver HughesNet® Gen4 broadband satellite Internet services across North America. Hughes is in the speed, low-latency satellite-based service for telecommunication Carrier) platforms to serve Sub Saharan countries. Utilizing the process of installing and testing the infrastructure for the JUPITER system with the initial Gateway providing operators and enterprises in emerging markets, for the development Amos-5 satellite pan-Africa C-band reach, SatLink will provide local support for multiple spot beams across the United States. Use of the Echostar AMC 15 Ka-band satellite is and supply of Ka-band infrastructure for O3b's VSAT services. The African and European, Asian and American broadcasters with a enabling Hughes to validate the user experience and high-speed service plans that will be delivered to agreement between the two parties ensures a range of hub, platform for video delivery across the whole continent to reach their subscribers starting in the summer of 2012. terminal and network management systems will be available to O3b local partners. February 1, 2012 - Hughes Network Systems, LLC announced that the JUPITER Gateway and user terminals degrees East. The service, which is launched on the February 1, customers for use on the fleet upon launch. The solution developed Integral Systems Receives CCS-C Contract Extension by Gilat for O3b is based on Gilat's existing SkyEdge II platform, February 1, 2012 - Integral Systems subsidiary has received a US$15.69 million extension to its Command which includes support for Ka-band and a unified system for SCPC SES Confirms Satellite Leadership in TV Channel Carriage and High Definition Transmission and Control System-Consolidated, or CCS-C, contract from the US Air Force, or USAF, Space and Missile and MF-TDMA on the same terminal. Gilat's solution is further February 3, 2012 - SES announced that it is confirming its satellite Systems Center, or SMC. Under the terms of the contract extension Integral Systems will continue to customized for cellular backhaul and high-end enterprise VSAT leadership in TV channel carriage and high definition transmission. provide the USAF and SMC with its EPOCH Integrated Product Suite, or IPS, to simplify operations by solutions on the O3b network, supporting upload and download data By year-end 2011, SES broadcasts over 5,200 TV channels, consolidating satellite ground systems. The award extends CCS-C system sustainment, hardware rates of over 20Mbps. including over 1,200 High Definition (HD) channels. In the second half of 2011 alone, SES added more than 100 HD channels. While maintenance, software maintenance, and operations support through calendar year 2012. North America and Europe contribute the majority of the channels Newsat Boosts Jabiru Pre Launch Contracts to $526 Million with MEASAT Commitment BROADCASTING February 3, 2012 - NewSat Limited announces the execution of a strategic satellite capacity contract with broadcast on SES satellites, an increasing portion of the channel growth is coming from emerging markets such as Latin America, Asia-Pacific and Africa. SES now carries 44 DTH platforms, more for a minimum of US$180 million. The contract provides MEASAT with multiple transponders covering South M7 Group Contracts Additional Astra Capacity for New Belgium HD Services Asia and South East Asia for the 15 year life of the Jabiru 1 satellite. The agreement will be finalised over February 1, 2012 - SES has signed a new capacity and uplink 5,200 TV channels, close to 1,000 radio channels are broadcast via the next two weeks with the completion of the Jabiru 1 technical specifications and the execution of a lease agreement with M7 Group, the Luxembourg-based satellite the global satellite fleet of SES. agreement with MEASAT to secure capacity for the Jabiru 2 satellite. MEASAT, with capacity across five television provider, for distribution via ASTRA's 19.2 degrees East communication satellites has over fifteen years of experience providing satellite communication services to orbital position. The newly contracted capacity on 19.2 degrees the region’s international broadcasters, DTH platforms and telecom operators. The capacity leased on Jabiru East will be used for the direct-to-home (DTH) distribution of the HD DVB Starts Investigating New Standards for Satellite Contribution and High Speed Links 1 will provide back up services to its well established customer base. versions of La Une and RTL TVi, the leading French speaking February 9, 2012 - Satellite communications specialist Newtec has channels for the Belgian market. The channels will be included in taken the lead, teaming up with DVB members Arabsat, Cisco, SES Marlink Upgrades Global Maritime VSAT Service with iDirect the TeleSAT offering, the M7 Group owned satellite television and Thomson Video Networks, to get the discussion for an update to February 6, 2012 - VT iDirect, Inc. (iDirect) announced that Marlink, one of the largest maritime VSAT network bouquet for French speaking Belgium that started on ASTRA 19.2 the DVB-S2 standard on the DVB agenda. Last week DVB took up the operators, has upgraded its global service with the integration of iDirect's Evolution X5 Satellite Router and degrees East in November last year. In January 2012, M7 Group task and has already started investigating the commercial reasoning latest operating software release, iDX 3.0. Vessels operating Marlink's WaveCall services have all received the already added RTBF's third channel "La Trois" to its TeleSAT behind a specific standard for satellite broadcast contribution and required onboard equipment, enabling Marlink to increase reliability and bandwidth efficiency for core voice, offering on ASTRA. high speed IP trunking and backbone links. As a first step in extending MEASAT Satellite Systems Sdn. Bhd. (MEASAT). The core agreement for capacity on the Jabiru 1 satellite is email, Internet and remote business applications. Marlink's new service upgrade will benefit several maritime than any other satellite operator in the world. In addition to over the current DVB-S2 standard, Newtec is launching its Clean Channel 46 Quarterly Newsletter Satellite Industry News 2 0 1 2 APSCC Officers conference. Clean Channel Technology further improves satellite Space Systems/Loral Awarded Contract to Provide Two Satellites for MBN Co efficiency for IP trunking and backhauling, but also broadcast February 8, 2012 - Space Systems/Loral (SS/L) has been awarded a President Yutaka Nagai, SKY Perfect JSAT contribution by up to 15% compared to the current DVB-S2 standard. contract to provide two high throughput communications satellites Newtec’s customers will be able to immediately benefit from Clean that will be used to deliver high speed broadband service to rural Channel Technology as it is available as a software field upgrade for and remote areas of Australia. The satellites will be operated by existing Newtec equipment. NBN Co Limited (NBN Co). The two satellites, NBN Co 1A and 1B, Technology™ at the up-coming Cabsat and SATELLITE exhibition and are Ka-band, high-throughput broadband satellites that use multiple spot beams in an advanced design that tailors capacity to Australia's LAUNCH / SPACE distributed population. When launched in 2015, the satellites will provide service to some of the most remote places in Australia, as Ariane 5 to Launch Galileo Constellation well as its coastal islands and external territories including Norfolk February 3, 2012 - Jean-Yves Le Gall, Chairman and CEO of Island, Cocos Island, Christmas Island and Macquarie Island in the Arianespace, and Didier Faivre, Director of the Galileo Program and Antarctic. The satellites are based on the SS/L 1300 platform and Navigation-related Activities at the European Space Agency (ESA), are designed to provide service for 15 years or more. The contract have signed an agreement to launch satellites in Europe’s Galileo award also includes satellite control facilities, support for system satellite positioning system by Ariane 5 launchers. This agreement capacity planning and optimisation, systems to manage satellite provides for the possibility of using Ariane 5 launchers in 2014 and operations and end-to-end systems integration support. 2015 to complete the deployment of the Galileo constellation. constellation using a combination of Soyuz launch vehicles (two ESA’s New Vega Launcher Scores Success on Maiden Flight satellites per launch), and Ariane 5 launchers (four satellites per February 13, 2012 - ESA’s new launch vehicle is ready to operate launch). The contract for adapting the Ariane 5 launcher to enable alongside the Ariane 5 and Soyuz launchers after a successful simultaneous launch of four Galileo satellites was also signed by qualification flight this morning from Europe’s Spaceport in Kourou, the European Space Agency and EADS-Astrium. French Guiana. With Vega extending the family of launchers Arianespace will have launched the 26 satellites in this available at the spaceport, Europe now covers the full range of SpaceX to Launch AsiaSat 6 and AsiaSat 8 in 2014 launch needs, from small science and Earth observation satellites February 8, 2012 - Space Exploration Technologies (SpaceX) and Asia to the largest missions like ESA’s supply freighters to the Satellite Telecommunications Company Limited (AsiaSat) announced International Space Station. Vega’s light launch capacity an agreement to launch two AsiaSat communications satellites using accommodates a wide range of satellites – from 300 kg to 2500 kg SpaceX’s Falcon 9 rocket in 2014. AsiaSat 6 and AsiaSat 8 are – into a wide variety of orbits, from equatorial to Sun-synchronous. scheduled to launch in the first half of 2014 from SpaceX’s launch Its reference mission is 1500 kg into a 700 km-high circular Sun- complex at Cape Canaveral Air Force Station in Florida, USA. AsiaSat synchronous orbit. Vega will thus add to Europe’s set of launch 6 will have 28 high-powered C-band transponders while AsiaSat 8 services next to the Ariane 5 heavy-lifter and the Soyuz medium- will have 24 Ku-band transponders and a Ka-band beam. The high- class launcher already in service. The combination of these three powered transponders on the satellite will enable the use of small systems operating from French Guiana will also improve the antennas on the ground. The two SS/L 1300 satellites will serve Asia, efficiency of Europe’s launch infrastructure by sharing its operating the Middle East and Australasia. costs over a larger number of launches. Advisory Board Nongluck Phinainitisart, Ph.D. THAICOM Eui K. Koh, Ph.D. JB Technologies Yasuo Otaki David W. Thompson Orbital Sciences Corporation 03 March 01 02 03 04 05 06 07 08 09 10 11 12 12-15 Satellite 2012, Washington D.C., USA www.satellitetoday.com/satellite2012/ 20 CASBAA India Industry Forum, New Delhi, India www.casbaa.com 21-22 Oil and Gas Communications, London, U.K. www.smi-online.co.uk/events/overview.asp?is=5&ref=3775 G. Madhavan Nair, Ph. D. Indian Space Research Organisation John Celli Space Systems/Loral 21-23 Convergence India 2012, New Delhi, India www.convergenceindia.org Richard E. Butler Asia Space 25-27 Broadband MEA, Dubai, UAE http://mea.broadbandworldforum.com/ Board of Directors Richard Bowles Arianespace 27-28 MilsSpace 2012, Vienna, Austria www.military-space.com Thomas Choi Asia Broadcast Satellite William Wade AsiaSat Zhiheng Fu China Great Wall Industry Corporation Thomas Carroll International Launch Services Terry Bleakley Intelsat 04 April Yeong-mo Kwon KT Corporation 14-19 NAB SHOW, Las Vegas, USA www.nabshow.com 16 Australasia Satellite Forum 2012, Sydney, Australia www.talksatellite.com 16-19 Global Aerospace Summit, Abu Dhabi, UAE http://aerospacesummit.ae/ Paul Brown-Kenyon MEASAT Satellite Systems 16-19 28th National Space Symposium, Colorado Springs, USA www.nationalspacesymposium.org Hiroyuki Inahata Mitsubishi Electric Corporation Ted McFarland Orbital Sciences Corporation Dani Indra TELKOM Indonesia Deepak Mathur SES Titus Yong SingTel Dawn Harms Space Systems/Loral Christophe Bauer SpaceX Eddie Kato Thales Alenia Space, North America 05 May 09-10 MilSatCom Asia 2012, Singapore www.milsatcomasia.com 15-16 Global Broadcast Summit, London, UK www.globalbroadcastsummit.com/ 21-24 SatCom 2012 Africa, Johanessburg, South Africa www.terrapinn.com/2011/satcomza/ APSCC Newsletter - A Great Way to Advertise With a vast international circulation that includes the most prominent members of the satellite, space and communications communities, APSCC Newsletter is seen by an elite readership of industry professionals around the Asia-Pacific and globally. Your message will reach the right people. Advertising in APSCC Newsletter is a cost-effective way to reach your potential clients and business partners. APSCC Newsletter can bring your company to the attention of key personnel in the satellite and space technologies, telecommunications and broadcasting industries. We offer you exclusive contact with people in the government, academic and industry sectors. 1ST Quarter 2012 Advertiser Page NewSat Inside front cover SKY Perfect JSAT Corporation 02 Asia Broadcast Satellite 09 Orbital Science Corporation 13 talk Satellite 21 ISS-Reshetnev 29 Sat TV 35 APSCC 2012 43 Arianespace Inside back cover APSCC is a non-profit, international regional association representing all sectors of satellite and space related industries. APSCC membership is open to any government body, public and private organization, association, or corporation that is involved in satellite services, broadcasting, manufacturing, launch services, risk management or associate fields such as datacasting, informatics, multi-media, telecommunications, and other outer space-related activities with interests in the Asia-Pacific region. APSCC aims to exchange views and ideas on technologies, systems, policies and outer space activities in general along with satellite communications including broadcasting for the betterment of the Asia-Pacific region. Conferences, forums, workshops, summits, symposiums, and exhibitions are organized through regional coordination in order to discuss issues that affect the industries and to promote and accelerate the efficient introduction of outer space activities, new services and businesses via satellites. 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