6DWHOOLWHV RQ WKH 0RYH - · PDF fileendorse Intelsat’s objectives for revenue growth and operating ... in the midst of a cycle of strong performance,” said Raymond ... Ltd. in

Satellites on the Move

Worldwide Satellite Magazine Vol. 5 No. 4July/August 2007

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SATMAGAZINE.COMJuly - August 2007

Vol. 4 No. 4, July - August 2007

TABLE OF CONTENTSClick on the title to go

directly to the story

COVER STORY

.

REGULAR DEPARTMENTS

By Claude Rousseau

By Jim Parm

23 / One BusyWeek inJune forSatellitePlayers

The influx of new mobilesatellite systems requirestrict performancedemands.

by Chris Forrester

3 / Notes from the

Editor

4 / Calendar of Events

5 / Industry News

10 / Executives Moves

14 / New Products

by Bruce R. Elbert

EXECUTIVE VIEW FEATURE

28 / Mobility andHybridNetworks:An ISCe 2007Retrospective

19 / New MobileSatelliteSystems

17 / SatelliteHandheld PriceWar Leads toMoreMainstreamRates

The MSS business has beengrowing at double-digit ratesannually over the last fewyears, and the entrance ofnew players such asInmarsat, Terrestar, ICO andMSV in the handheld MSSbusiness points to either ill-advised investments or adesirable high yield market.

One week in June saw thereselling of Intelsat andthe awarding of Canadiansatellite licenses, amongother events that shookthe industry.

The recently held ISCe 2007Conference and Expo in SanDiego highlighted theincreasing popularity ofmobile satellite services andhybrid network solutions.

VIEWPOINT

EXECUTIVE

SPOTLIGHT

32 / Interviewwith DonBrown,Vice-PresidentBusiness Development,Intelsat General

Don Brown speaks on IntelsatGeneral’s Hosted Payload programand what it can offer the governmentand military sectors.

GITEX, GULFCOMMS& GVF: “InterActive”Analysis in aCapacity Crisesby Martin Jarrold,Global VSAT Forum

37 / Advertisers’ Index/Stock Quotes

and Services

35 / Market Intelligence:

SATMAGAZINE.COM

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July-August 2007

Satnews Publishers is the leadingprovider of information on theworldwide satellite industry. Formore information, go towww.satnews.com

Cover Design by: Simon Payne

Published monthly bySatnews Publishers800 Siesta Way,Sonoma, CA 95476 USAPhone (707) 939-9306Fax (707) 939-9235E-mail: [email protected]: www.satmagazine.com

David Hartshorn, Martin JarroldContributing Writers, EuropeBaden WoodfordContributing Writer, Africa

Jill DurfeeAdvertising [email protected]

Copyright © 2007Satnews PublishersAll rights reserved.

EDITORIALSilvano PaynePublisher

Virgil LabradorManaging Editorand Editor, North [email protected]

Chris ForresterEditor, Europe, Middle Eastand Africa

Bernardo SchneidermanEditor, Latin America

Peter GalaceEditor, Asia-Pacific

John Puetz, Bruce ElbertDan Freyer, Howard GreenfieldDan MackinsterContributing Writers,The Americas

NOTE FROM THE EDITOR

(

MESSAGE FROM THE PUBLISHER

We have been making some important changesin our publications in the last few months in order

to continue providing you with vital, up-to-date infor-mation in the most accessible format. Recently, we havetotally redesigned our website, Satnews.com and addednew features such as video interviews anddownloadable podcasts. You can also now receiveSatnews Daily updates on your PDA or mobile phone.

Regretably, during this exciting time of transition for our company and theindustry, the longest standing member of our staff, Virgil Labrador will bemoving on to pursue other opportunities, after nine years with Satnews.Virgil has been instrumental in the growth of Satnews to what it is now--aleader in the provision of cutting edge information on the satellite indus-try. When Virgil started with us as an advertising executive in 1998--thereliterally was no Satnews yet. We were then called Design Publishers andour products consisted of the annual directory, some books and CD-ROMs. Since then we have built Satnews.com as the definitive portal onthe satellite industry and have launched several very successful web-based magazines such as SatMagazine and MilsatMagazine, thanks inlarge part to Virgil’s innovation, creativity and tireless efforts.

We will certainly miss Virgil and his enthusiasm, professionalism anddedication. However, we wish him well in all his future endeavors.Meanwhile, a new editor will be taking over starting August 1st, Mr.Hartley Lesser. Hartley is an experienced multimedia journalist who bringsin a wide background and IT skills to take Satnews tothe next level.

All good things must come to an end. After nine years, I have to bid my farewell to Satnews, which has beena very important part of my personal and professional life.I would like to take this opportunity to thank our publisherSilvano Payne, for all the support he has given me overthe years. I would also like to express my sincerestappreciation to all our readers and the many individual

supporters and satellite companies that have faithfully patronized ourpublications over the years. My thanks to the Satnews staff, especiallyour associate editor, Peter Galace, our Sales Manager, Jill Durfee, ourwebmaster Simon Payne, and to all our contributing editors, writers andcorrespondents, too numerous to mention here.

I am proud to have been a modest part of Satnews and its developmentthrough some of the most exciting and storied times for the satelliteindustry. The one thing that I have learned from the experience ofcovering the industry in the last nine years is that the only constant ischange. And in our own little way, I hope we were able to help younavigate through some of those inevitable changes. Thanks to you all forwhat has been an incredible run.

July-August 2007 SATMAGAZINE.COM

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July 15 - 20The 22nd Residential Training Courseon Satellite Communication SystemsUniversity of Surrey, Guildford, Surrey, UKTelephone: + 44 (0) 1438 765647E-mail: [email protected]

July 30-August 1GRIDCOM Summit 2007Georgetown University ConferenceCenterWashington, DCChristine FishTel: [email protected]://www.gridcomusa.com

August 2-311th Denver DBS SummitDenver, ColoradoPhone: (303) 777-7055Email: [email protected]://www.LtenDenver.com

Aug. 21-23LandWarNet Conference 2007Greater Ft. Lauderdale/Broward County ConventionCenter, Ft. Lauderdale, FL, USA Terry RogersTel: (703) 631-6238E-Mail: [email protected]://www.afcea.org/events/landwarnet/

September 3-6World Satellite Business WeekParis, FranceLinda ZaicheTel: +33-149-237517E-mail: [email protected]://www.satellite-business.com

Sep. 6-11IBC 2007RAI, Amsterdam,THE NETHERLANDS

Tel +44-20-7611 [email protected] /http://www.ibc.org/

Sep. 18-20APSCC 2007Bangkok, THAILAND+82 2 508 4883/5http://www.apscc.or.kr

September 24-27The 9th Annual Global Industry VSAT 2007ConferenceThe Waldorf Hilton Hotel, London, EnglandTel: + 44-1727-832288Fax: +44-1727-810-194E-mail: [email protected]://www.comsys.co.uk SM

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INDUSTRY NEWS

BC Partners Takes Ownershipof Intelsat

NEW YORK - UK-based private equityfirm BC Partners has purchased 76percent of Intelsat, Ltd., the world’slargest commercial satellite operator, for$5.03 billion in cash.

BC Partners, which has its businessfocus in Europe, will also take onIntelsat’s debt load of $11 billion and afurther $3.9 billion in debt. The firmreceived $5 billion in financing commit-ments from Credit Suisse (whichadvised Intelsat on the transaction),Banc of America Securities and Morgan

Stanley. BC Partners’ advisers were Merrill Lynch and PerellaWeinberg. The acquisition is the largest in BC Partners’ history.

Intelsat later announced the signing of a definitive agreementfor the purchase of a majority of the shares of its parentcompany, Intelsat Holdings, Ltd., by funds advised by BCPartners and other investors.

Intelsat CEO Dave McGlade said this transaction highlights thesignificant value that Intelsat has created for its shareholdersand the tremendous opportunities the business and employeeswill enjoy going forward.

“The company has thrived under private equity ownership,including the 2006 completion of the transformative PanAmSatcombination that firmly established Intelsat’s global leadershipposition. As a result, we have a keen appreciation for thefinancial and strategic support that a firm such as BC Partnerscan provide. We are confident that they will continue toendorse Intelsat’s objectives for revenue growth and operatingimprovements,” he said.

“Intelsat and the FSS sector are in the midst of a cycle of strongperformance,” said Raymond Svider, a managing partner of BCPartners. “Intelsat is the premier FSS satellite operator, withhigh-quality assets and a strong global brand. Its valuable cableand direct-to-home neighborhoods, strength in networkapplications, blue chip customer base and solid backlog oflong-term contracts create an attractive investment opportunity.We look forward to working with and supporting Intelsat’smanagement team as they pursue their growth strategies.”

The BCEC funds-led group will acquire some 76% of the primaryownership of Intelsat Holdings, Ltd. in a transaction valuing thecompany’s equity at around $5.03 billion. Taking into account$11.4 billion of debt as of March 31, 2007, the enterprisevaluation implied by the transaction is about $16.4 billion.

BC Partners described Intelsat as an attractive investmentopportunity given its blue chip customer base, strong orderbacklog and extensive cable and direct-to-home services.Among BC Partners’ technology acquisitions were German firmTelecolumbus, a Level 4 cable service provider, and French firmLD COM, a backbone, local fiber ring and web center operator.It also has major investments in the food and healthcareindustries.

Analysts said the price paid by BC Partners was within expecta-tions. Earlier reports said the six firms interested in Intelsat werewilling to invest from $4-6 billion for the satellite operator, whichis based in Bermuda.

Intelsat bought rival PanAmSat Holding Corporation in 2004 for$3.2 billion, creating the world’s largest commercial satelliteoperator with 51 satellites. SES Global SA, the second largestsatellite operator, has 43 satellites.

Founded in 1989, BC Partners describes itself as a leader inacquiring and developing businesses in partnership withmanagement. It has invested in 63 acquisitions (excludingIntelsat) with a total value of $64.3 billion, and took a leadingrole in 48 acquisitions with an aggregate value of $47 billion.

Over the next five years, BC Partners expects its funds toacquire 15 to 20 businesses, with transaction values typically inthe range of $400 million to $5.4 billion, with a cumulativeenterprise value of over $20 billion.

Satellites Set to Dominate HDTVMarket

LONDON — Satellites will become the most important mode ofreceiving high definition TV (HDTV) programming over the nextfour years.

IMS Research forecasts the global HDTV market to reachalmost 150 million households by 2011, with some 40 percent ofthese households receiving HDTV programming via satellite.

IMS said the growth in satellite HDTV households in the nextfour years will be driven by the US and Western Europe. In

David McGlade,Intelsat CEO

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Western Europe,the slow growth ofdigital cable inrecent years hashelped positionsatellite as the mostcommon method ofreceiving pay-HDTV. Recentconsolidation ofthe cable TVmarkets in severalcountries is

expected to aid European cable HDTV growth over the longterm.

This contrasts with the cable-centric US market, where thegrowth of digital cable and heavy promotion of triple-play andadvanced services are expected to keep cable dominant in theUS HDTV market through 2011. The US is forecast to drive themajority of worldwide cable HDTV growth over the period,however. Satellite is still expected to make substantial gains inthe US, thanks to focused marketing efforts by US satelliteoperators to push HDTV as a competitive differentiator.

Europe is expected to surpass Asia Pacific by 2011 to becomethe second-largest HDTV market in the world behind theAmericas. Much of this growth will be fueled by lower costs forMPEG-4 AVC set-top boxes for operators and consumers, morelocal HD content, better competitive pricing for HD services, thegrowing popularity of flat-screen TVs and sports-drivendemand for HDTV.

ESA, Thales Alenia Space SignContract for GMES Sentinel-1 satellite

PARIS - The European Space Agency (ESA) and Thales AleniaSpace have signed a $307 million contract for the design anddevelopment of Sentinel-1, the first Earth observation satelliteto be built for Europe’s Global Monitoring for Environment andSecurity (GMES) program.

The ESA Sentinels, composed of five satellites, constitute thefirst series of operational satellites responding to the earthobservation (EO) needs of GMES, a joint initiative of theEuropean Commission and ESA. Sentinel mission requirementsfocus on the continuity of existing services exploiting EO dataand satisfying user requirements derived from GMES applica-tions.

Sentinel-1 is expected to be launched in 2011 and will ensure thecontinuity of C-band Synthetic Aperture Radar (SAR) data withESA’s ERS and Envisat satellites. Important applications drivingthe mission concept include marine vessel detection, oil spillmapping and wind products and sea ice mapping.

The Sentinel-1 spacecraft is expected to weigh around 2200kilograms at launch and image the Earth in swaths of 250kilometers in diameter with a ground resolution of five meters.Sentinel-2 and 3, scheduled for launch in 2012, will support landand ocean monitoring, while Sentinel-4 and 5 will be dedicatedto meteorology and climatology through atmospheric chemistry.

GMES is the response to Europe’s need for geo-spatial informa-tion services. It provides autonomous and independent accessto information for policy-makers, particularly in relation toenvironment and security.

ILS Books over $1 Billion in LaunchOrders for Proton Breeze M

PARIS - International Launch Services (ILS) has brought inmore than $1 billion in new firm launch orders for the ProtonBreeze M vehicle since the beginning of 2007.

ILS has exclusive rights to market the Proton vehicle worldwideto commercial satellite operators. Khrunichev State Researchand Production Space Center of Moscow, one of the corner-stones of the Russian space industry, manufactures the Protonand is a partner in ILS.

The new business for ILS this year represents “an all-star list ofcustomers,” said ILS President Frank McKenna. “They includemajor operators, blue-chip companies that have been purchas-ing launch services for many years, as well as new entrants thatare entrusting the launch of their businesses with ILS.”

The new business includes Ciel 2, contracted through SESAmericom for Ciel Satellite Group, for launch in 2008; CMBStarfor Echostar, for launch in 2008; Nimiq 5 for Telesat Canada, forlaunch in 2009; One Mobile Satellite Ventures satellite forlaunch in 2009 (with an option for a second, beginning in 2010);a fifth-generation Arabsat satellite, for launch in 2009-2010;three satellites for other commercial customers and a multiple-launch agreement with SES for five launches and additionalintegration work through 2013. This is the largest singlecontract to date for ILS.

“We’re moving at a healthy pace. In less than six months we

DirecTV-10 will broadcast HDTVprogramming in the USA. (Boeingphoto)

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INDUSTRY NEWS

have captured orders for 13 launches from eight customers, aswell as a study contract that will likely lead to five more mis-sions,” said McKenna.

Alliant Techsystems AcquiresSwales Aerospace

MINNEAPOLIS, MN - Alliant Techsystems , which producessolid rocket motors for the U.S. Space Shuttle fleet and struc-tures for the International Space Station (ISS), has takenownership of Swales Aerospace, a provider of satellite compo-nents and subsystems, small spacecraft and engineeringservices for NASA, the Department of Defense and commercialsatellite customers.

The acquisition was subject to standard federal regulatoryreview and approval from the majority of shareholders in theemployee-owned company. The Swales facility in Beltsville,Maryland is now the headquarters of ATK’s Space Divisionwithin the Mission Systems Group. Mike Cerneck, the previouschief executive officer of Swales Aerospace, will lead thedivision, which includes the existing space structures andsubsystems operations of ATK’s current Space Division.

Recently, ATK’s reusable solid rocket motors (RSRM) providedmore than six million pounds of thrust as NASA’s Space ShuttleAtlantis launched into orbit to begin a 11-day mission to the ISSto continue installation of two additional solar panels.

During the STS-117 mission, the crew will install the second andthird starboard truss segments (S3/S4) that include a third set ofsolar arrays. In addition, the astronauts will retract the P6-2B

http://www.cpii.com/satcom

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INDUSTRY NEWS

wing, installed six years ago in a temporary location, to provideclearance for the rotation of the new Solar Alpha Rotary Joint(SARJ) and the deployed S4 solar arrays.

Astrium to Rocket Tourists intoSpace . . . by Jet

PARIS -European satellite and rocket system maker Astriumhas unveiled a revolutionary new aircraft/spacecraft for spacetourism at a special event ahead of the Le Bourget Airshow inParis. Development of this hybrid vehicle is expected to begin in2008 with a first commercial flight possible by 2012.

The Astrium space jet, which externally resembles a corporatejet, is designed to travel 100 km into space giving its fourpassengers more than three minutes of “zero G” or weightless-ness. It will take off and land conventionally from a standardairport using its jet engines. Once the craft is airborne at about12 km altitude, however, the rocket engines will be ignited togive sufficient acceleration to reach 100 km. It takes the spacejet just 80 seconds to reach 60 km altitude. The rocket propul-sion system is then shut down as the ship’s inertia carries it onto over 100 km, where passengers will become part of an elitefew (mainly astronauts) to experience zero gravity in space.

The pilot will control the craft using small rocket thrustersenabling passengers to hover weightlessly for three minutesand to witness the most spectacular view of Earth imaginable.After slowing down during descent, the jet engines are re-started for a normal and safe landing at a standard airfield. Theentire trip will last about an hour and a half.

Astrium proposes using the one stage system that is consid-ered the safest and most economical to operate. Development ofthe space jet able to operate at altitudes between aircraft (20km)and below satellites (200 km) could well be a precursor for rapidtransport ‘point-to-point’ vehicles or quick access to space,opening up previously unexplored territory. Its development willcontribute to maintaining and enhancing Europeancompetences in core technologies of space transportation.

DirecTV-10 Satellite To be LaunchedJuly 6

MOSCOW, DirecTV-10, a satellite of leading US pay TVprovider DirecTV Group, Inc., will be orbited in July 6 by aProton-M launch vehicle.

Russia’s Khrunichev State Space Scientific Production Center

said a Breeze-M boosteron a Proton-M carrierrocket will putDirecTV-10 into orbit.The booster is nowat the Baikonurspace center inKazakhstan.

Launch services willbe provided by

International Launch Services (ILS), a U.S.-Russian joint venturewith exclusive rights for worldwide commercial sales and missionmanagement of satellite launches on Russia’s Proton carrierrockets. The joint venture partners are Space Transport, Inc.,Khrunichev State Research and Production Space Center andRSC Energia of Moscow. ILS has conducted a total of 46 commer-cial Proton launches since 1996, and has 15 scheduled launchesthrough 2010.

DirecTV-10 and its sister satellite, DirecTV-11, are both dedicatedHDTV (high definition television) satellites. They will belaunched this year to provide DirecTV with national and localbroadcast coverage in HDTV. They will be among the largest andmost powerful Ka-band satellites ever launched.

DirecTV in 2004 entered into a contract with Boeing to build threeBoeing 702 model satellites: DirecTV-10, DirecTV-11 and a groundspare. These birds will enable DirecTV to significantly expandbroadcasting to their customers across the continental UnitedStates, Hawaii, and Alaska. In addition to expanded nationalHDTV broadcasting, standard definition TV broadcasting andinteractive TV, DirecTV-10 and DirecTV-11 will provide thecapability for DirecTV to broadcast local HDTV to 90 percent ofits customers.

In the Works: a More Powerful and“Prettier” ISS

CAPE CANAVERAL, Florida — This month will see theInternational Space Station (ISS) receive more electrical power forfuture projects and look a whole lot “prettier”.

The U.S. space shuttle Atlantis recently docked with the ISS aftera two-day chase carrying with it a new segment for the stationthat includes a third set of solar arrays to provide more power foradditional modules. It was the first space shuttle flight this year.Atlantis was to have originally launched last March but dents toits main booster rocket from a sudden hailstorm caused a two-

Directv 10. (Boeing photo)

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INDUSTRY NEWS

month delay to ensurethe spacecraft’s safety.

Mission STS-117 and itsseven astronauts havedelivered and will installcomponents to increasethe station’s electricitygenerating capabilityand prepare for thearrival of new laboratorymodules from EuropeanSpace Agency (ESA)and the Japanese SpaceAgency (JAXA). Duringits 11-day mission,Atlantis will attach tothe ISS a new 35,000 lb.truss segment with athird pair of solar arrays.The $376 millionsegment was attachedto the station during thefirst space walk on June11.

Attaching the newsegment, however, willalso make the stationlook “prettier. Missionlaunch package managerFloyd Booker said thatwith this flight, NASAhopes to see moresymmetry in thestation’s shape. The ISSnow resembles a letter“T.” Adding the newsegment will give it themuch more pleasantappearance of a letter“H.” The new shape hasa practical advantage,however. It will make iteasier for the station’sattitude-control systemto keep the ISS properlyoriented. SM

http://www.wavestream.com

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SAT-GE Announces NewExecutive Team

SINGAPORE— Asia-Pacific region satellite operator SAT-GEannounces a leadership team headed by Paul Heinerscheid,president & CEO.

With him are Andrew Jordan, general manager and VP sales;David Crenshaw, VP sales North America; Andy Frost, VPmarketing & business development; Ronny Svang, VP finance& CFO and Jim Lynch, VP & general counsel.

Operations will be managed from Singapore and Sydney byJordan, who joins SAT-GE after five years with Loft Communica-tions, where he was founder and managing director. Jordan hasover 16 years experience in the satellite industry and has heldsenior executive management positions in AsiaSat, PanAmSatand Measat.

“GE-23 is a unique asset for SAT-GE, ideally positioned betweenNorth America and East Asia. It can be used to deliver contentand services in and around the Pacific basin. With the forth-coming Olympics in China, it is the ideal platform on which totransport video coverage of this important event in Asia,” saidJordan. “I am really looking forward to the challenge of makingSAT-GE a success and delivering strong growth for the busi-ness.”

Jordan will be supported by Crenshaw who has responsibilityfor sales in North America. Crenshaw brings over 20 years ofindustry experience to the job having held previous senior andexecutive appointments in sales and business development forcompanies such as Intelsat, Spacenet, iBeam Broadcasting andCompression Labs.

MSV Appoints Gary Sharpe VicePresident, Investor Relations &Corporate Communications

RESTON, VA — Mobile Satellite Ventures LP (MSV) an-nounced that Gary Sharpe has joined the company as vicepresident for investor relations and corporate communications.

Sharpe, with more than 25 years of experience in financial andcorporate communications and media, has served as corporateofficer or consultant for investor relations and strategiccommunications at companies in the telecommunications,energy, biotechnology, manufacturing and financial servicesindustries in a career that began in 1982.

From 1997 to 2000, he led investor relations at Comsat Corpora-tion, which was the largest investor in satellite consortiaIntelsat, Inmarsat and New Skies. He also has directed commu-nications in 15 capital markets transactions valued at more than$4 billion.

“Gary’s extensive experience in global institutional investortargeting, capital-markets transactions, and corporate communi-cations and governance will help us increase awareness of thecompany with key audiences at this important juncture inMSV’s development,” said Scott Macleod, MSV executive vicepresident and chief financial officer.

Sharpe earned a bachelor’s degree from the University ofWashington, and has completed graduate studies in financeand accounting at the University of Pennsylvania-WhartonSchool, as well as course work toward the Chartered FinancialAnalyst credential through the CFA Institute. He is a pastpresident and/or director of National Investor RelationsInstitute chapters in Seattle, Los Angeles and Washington,D.C.

ProtoStar Appoints Dr. Eui Koh asPresident of ProtoStar Asia; ExpandsAsian Presence with New SingaporeOffice

SINGAPORE --- ProtoStar, a Bermuda corporation withprincipal U.S. operations in San Francisco, has opened an officein Singapore staffed with veteran satellite industry executivesas the cornerstone of its expanding Asian operations.

ProtoStar President and CEO Phil Father said that the new officewill be headed by Dr. Eui Koh, former President of the AsiaPacific Satellite Communications Council (APSCC) and previ-ously an Asian regional executive with both Intelsat and NewSkies Satellite (NSS). ProtoStar is developing a satellite constel-lation of high-powered geostationary satellites that will providea satellite network enabling direct-to-home (DTH) services inAsia.

Father said the Singapore office will be staffed by Raghu Das ,Vice President of Sales, formerly with Loral Skynet; StevenSmith, Vice President of Technical Operations, formerly withIntelsat and Patricia Chan, Marketing/Customer SupportManager, formerly with NSS.

“Our Singapore office will help us drive sales, marketingprograms, customer support and ground systems as we focus

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on launching our high powered satellite services supportingAsia ’s rapidly growing DTH operators,” Father said. “Dr. Kohbrings a wealth of satellite experience and knowledge from hismany years of working with Asian satellite operators and theircustomers.”

ProtoStar’s first satellite, a Space Systems/Loral 1300, iscurrently undergoing refurbishment at Loral’s Palo Alto,California manufacturing facility and is expected to be launchedin May 2008

SIA’s David Cavossa to JoinArrowhead Global Solutions

Washington D.C —- The executivedirector of the Washington, D.C.-based Satellite Industry Associa-tion, David Cavossa has an-nounced that he will be joiningArrowhead Global Solutions asVice-President of GovernmentAffairs in July.

Satellite communications providerArrowhead is based in Fairfax,Virginia and has extensivecontracts with the US military.

Cavossa has been with the SIA since 2001 and served asexecutive director since June 2004. The SIA represents US-based satellite companies in US legislative and regulatorybodies and conducts education and outreach projects. Aselection committee composed of the executive members ofthe SIA will conduct a search for the new executive director,according to Cavossa.

Genesis Networks Appoints DougTriblehorn Vice-President forAsia-Pacific

New York, NY, —- New York-based satellite service providerGenesis Networks has appointed Doug Triblehorn as Vice-President for Asia-Pacific. Doug Triblehorn previously workedat North Carolina–based End II End Communications as Vice-President for Sales.

Genesis Networks provides broadcasters, cable networks,production companies, and corporations with customized

video transmission services.

Triblehorn has almost 20 years of experi-ence in the satellite industry havingbegun his career in 1988 with IDB. He hasheld various senior level positions atKeystone Communications, GlobeCast,Intelsat, Zap Media Advisers and mostrecently with End II End Communications.He spent seven years in Singapore withGlobeCast where he rose to CEO ofGlobeCast Asia and then with Intelsat asVice-President, Asia-Pacific for its Media

and Entertainment business unit. At his current position atGenesis Networks, where he started June 1st, he will beresponsible for growing Genesis’ business in Asia and thePacific region.

David Cavossa

Doug Triblehorn

http://www.nardamicrowave.com

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David D. Bowne Appointed VicePresident of Sales at ND SatCom, Inc.

FRIEDRICHSHAFEN, Germany — ND SatCom, an SES Astracompany and a global supplier of satellite-based broadbandVSAT, broadcast, government and defense communicationnetwork solutions, has appointed David D. Bowne to theposition of vice president of sales for ND SatCom, Inc., itssubsidiary based in Dallas, Texas. Bowne is responsible foroverall sales in the Americas region.

Chris Morris, president and CEO of ND SatCom, Inc., saidBowne is a 22 year veteran of the satellite industry having spenthis years with the General Dynamics’ legacy companies,TriPoint Global, VertexRSI and Vertex. “David’s extensiveexperience in the commercial, government and defence marketsis a tremendous asset to ND SatCom. We welcome him aboardand are excited about the experience and knowledge that Davidwill bring to our team.”

ND SatCom’s presence in the Americas region consists of salesand service offices in Dallas, Miami, Denver, Washington D.C.and Mexico City. ND SatCom operates a state-of-the-art facilityin Dallas built specifically for the design, integration and testingof both fixed and mobile satellite earth terminals.

DigitalGlobe Promotes ThreeVice Presidents

LONGMONT, CO - DigitalGlobe, a provider of high-resolutioncommercial satellite imagery and geospatial information prod-ucts, has promoted three vice presidents: Dawn Sienicki,government relations; Mike McGill, U.S. sales, commercialbusiness unit; and, Barry Clapp, international sales, commercialbusiness unit.

Sienicki leads DigitalGlobe’s Washington D.C. operations. Herresponsibilities include serving as a liaison between thecompany and Capitol Hill and the executive branch, with a focuson policy, legislative and political matters. She is currently theelected president of Women in Aerospace. Prior to joiningDigitalGlobe, Sienicki was executive director of the U.S. Cham-ber of Commerce’s Space Enterprise Council, an organizationSienicki founded to better serve U.S. companies with invest-ment and business interests in commercial space.

McGill leads DigitalGlobe’s commercial sales activities in theU.S. His responsibilities include leading domestic sales of thecompany’s satellite and aerial imagery products and supporting

the growth of reseller and partner relationships. Prior to joiningDigitalGlobe, McGill served as market development managerand director of sales and business development at Autodesk.

Clapp leads DigitalGlobe’s commercial sales activities interna-tionally. His responsibilities include leading global sales,increasing international market share and building new revenuestreams through strategic partnerships. Prior to joiningDigitalGlobe, Clapp headed Worldwide Sales for AdvancedElectron Beams.

Northrop Grumman Appoints CarlJohnson Vice President Programs-Broad Area Maritime Surveillance

EL SEGUNDO, CA - Northrop Grumman Corporation(NYSE:NOC) has appointed Carl Johnson to vice president ofPrograms-Broad Area Maritime Surveillance (BAMS) within thecompany’s Integrated Systems sector.

Johnson joined the company in 1982 as an engineer with the B-2stealth bomber program and subsequently served as manager ofthe B-2 modification line and deputy B-2 program manager. In2000, he was appointed Global Hawk program manager and in2003 he was named vice president and Global Hawk integratedproduct team leader.

He earned a bachelor’s degree in mechanical engineering fromNorthern Arizona University, a master’s degree in mechanicalengineering from Colorado State University, and a master’s inbusiness administration from the University of California, LosAngeles.

Northrop Grumman’s BAMS solution incorporates maritimeintelligence, surveillance and reconnaissance (ISR) capabilitiesinto the Global Hawk Block 20 air vehicle. The system can carryup to 3,000 pounds of payload comprising a variety of sensorsoptimized for searching, tracking and identifying targets, whilecollecting and transmitting data over open ocean and littoralareas. Northrop Grumman’s offer includes an RQ-4N air vehiclederived from the RQ-4B Global Hawk, uniquely configured forthe Navy and the maritime ISR domain. A contract is expected tobe awarded later this year.

In support of one of the company’s strategic pursuits, Johnsonwill oversee all BAMS development and capture activities. Hisappointment solidifies the company’s strategic effort to build ateam that can effectively define and complement the U.S.Navy’s existing manned maritime patrol and reconnaissance

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force capability with a combat-proven, persistent, unmannedISR aircraft.

2000. Advent’s goal is to deliver the expertise and innovationfor end-to-end communications solutions in demandingenvironments. SM

Anver AndersonJoins AdventCommunications

LONDON — Advent Commu-nications has appointed AnverAnderson as Regional SalesDirector with special responsi-bility for the company’s growthin Asia and the Americas.

Anderson is well-known in thesatellite industry from hisprevious roles with BT andInmarsat and his previousposition with EuropeStar. Hehas also operated his ownindependent full servicessolutions agency.

“We are delighted that Anverhas joined Advent”, saysStephen Rudd, managingdirector of Advent Communica-tions. “Anver brings Adventthe benefit of his very broadexperience and his knowledgeof the international satellitebusiness from other roles.”

“Advent is still one of thebest-known names amongstthe satellite uplink manufactur-ers,” said Anderson, “with anexcellent reputation for thedurability of its products andcustomer support. I am verypleased to be joining a com-pany with this standing in themarketplace.”

Based in London with officesin Singapore and Boston,Advent has been a strategicarm of the Vislink Group since

http://www.advantechamt.com

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NEW PRODUCTS

Wavestream Unveils Matchbox Seriesof Solid-State BUC Amplifiers

SINGAPORE — Wavestream Corporation, a manufacturer ofcompact, solid-state power amplifiers, has unveiled its newestseries of outdoor solid-state Block Upconverter (BUC) amplifi-ers for Ka- and Ku-band applications.

Named the Matchbox Series for its small size and weight, theseamplifiers pack in excess of 40 Watts of Ku-band power and 10Watts of Ka-band power into a 9.8- by 5.4- by 4.4-inch packageweighing less than nine pounds.

“Wavestream’s spatial power combining technology has againreset outdoor amplifier performance limits for fly-away andcommunications-on-the-move applications,” said WavestreamCEO Chris Branscum. “With its versatile modular design, theMatchbox Series enables the realization of previouslyunachievable systems performances and economies in bothmobile and VSAT applications. The Matchbox Series providesthe highest linearity per pound per unit volume in a versatile,single interface solution.”

The Ku-band Matchbox BUC incorporates Wavestream’s DeckPower Amplifier modules to provide high efficiency 40-, 25- and16-Watt RF output levels with less than 280 Watts power drawat 40 Watts output. The Ka-band Matchbox grid amplifiermodule yields 10-Watt output with less than 110 Watts of powerdraw. Both the Ku- and Ka-band series operate from 28 VDC or48 VDC with 110 VAC optional. Production deliveries for theMatchbox Series will commence in the third quarter of 2007.

Branscum said that with the Matchbox Series, Wavestream iscontinuing to raise the bar in developing compact, modularpower amplifiers for Ka- and Ku-band applications. “Further, weexpect to bring an additional BUC to market later this year thatwill achieve Ku RF output levels of 80 watts, giving customers acutting-edge product while increasing Wavestream’s leadershipposition in developing the industry’s most compact andpowerful solutions for mobile and VSAT applications.”

Wavestream develops and produces high-power solid-stateamplifiers that meet the needs of communications and sensingsystems. Wavestream currently offers Ka-band and Ku-bandSSPAs and BUCs for satellite communications.

Newtec Unveils New Satellite Equip-ment for Mobile DVB-H and Terres-trial DVB-T Television Markets

SINGAPORE — -Newtec has launched a new family of profes-sional equipment for the satellite distribution of televisioncontent in mobile and terrestrial networks called Horizon.

Because it requires no deployment of a terrestrial infrastructureto connect the transmission towers to the broadcast network,primary distribution via satellite is recognized as the fastest andmost cost-effective way to deploy a mobile or terrestrial serviceover a large geographical area. Horizon is a family of profes-sional transceivers to be installed in each of the remote terres-trial transmission sites.

The transceivers are very compact and fully integrated unitsthat contain all the elements to receive the signal from thesatellite and re-transmit the programs to the terrestrial receiversor hand-held devices. Designed to give broadcasters andnetwork operators a competitive edge in the booming market ofmobile and terrestrial TV, Horizon reduces operational costs byimplementing the most bandwidth-efficient satellite transmis-sion technologies such as DVB-S2 and stream concentration.

Horizon also offers a unique Local Drop function that allows theefficient distribution of local content in addition to nationalchannels, even in Single Frequency Networks (SFN). Localprogramming increases the attractiveness of the service whilelocal advertisement can generate additional revenues for theoperator.

“This is a unique product that brings the best of the satelliteand terrestrial worlds together”, says Dries Coppens, director ofproduct marketing for Horizon. “Not only does this innovativeproduct really optimize the business perspectives of networkoperators and broadcasters alike, it will also make their life mucheasier: all Horizon transceivers are self-contained, reliable andmanageable remotely. This greatly simplifies the installation,maintenance and operation of the remote sites”.

Globecomm Introduces AxxSysOrion Satellite Network ManagementSystem

HAUPPAUGE, NY - - Globecomm, a provider of end-to-end satellite-based communications solutions, has introducedAxxSys Orion, the next generation of its AxxSys satellite

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NEW PRODUCTS

network management system.

A robust, scalable platform, AxxSys Orion monitors and controlsall of the terrestrial elements of asatellite communications network.This includes the ability tomanage other network elementssuch as routers, microwave, fiberand wireless subsystems.Deployed over an industry-standard IP network, it is capableof monitoring and controllingfrom dozens to thousands ofdevices. This standards-based,distributed architecture delivershigh quality of service, state-of-the-art security and high reliabil-ity with a low total cost ofownership.

With the introduction of AxxSysOrion, Globecomm engineers aretaking full advantage of the cost-efficiency and flexibility of IP.AxxSys Orion uses a distributedIP-based architecture to provide arobust, scalable platform. Itconsists of software running oncentralized or distributed servers,which communicate usingstandards-based protocols withAxxSys Multi-Protocol (AMP)processors serving each piece ofequipment in the network.

With the AMP units providingdevice-specific interface, thenetwork management traffic cantravel over any IP network, fromLAN to microwave or satellite totelephone. Distributed process-ing lowers network bandwidthdemands and provides the bestof both worlds in terms ofredundancy: centralized storageof all critical system data and fullconcurrent backup at the sametime.

Globecomm has retained and

improved the features that made AxxSys so popular, includingan intuitive Web-enabled user interface that simplifies naviga-tion and operation. Customizable, full-color, object-based

http://www.radn.com

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displays identify device status immediately and make problemseasy to diagnose. Scripting utilities allow operators to performcomplex repetitive operations easily, while a comprehensive GUIbuilder allows even non-technical personnel to build and deploygraphical screens.

AxxSys Orion also provides a broad range of standard reportsplus the ability to generate additional reports using any stan-dard SQL reporting tool. System scripting supports standardVB.NET language, requiring no additional compilation ordevelopment tools. In addition, a Device Driver Studio Toolprovides a wizard to speed development of new drivers withoutthe burden of writing custom programming code.

“Globecomm has been integrating its AxxSys network manage-ment system into fixed and mobile earth stations, uplink centers

and broadcast centers for years,” said Scott Herschander, vicepresident of Information Technology. “We have seen particu-larly strong adoption by military and government customers.With AxxSys Orion, we are offering customers the advancedfeatures they want with the simplicity and low operating cost ofan IP-based distributed network. It’s another example ofGlobecomm putting standards to work to save our customermoney and improve performance wherever customers need alittle bit of satellite to achieve their mission.” SM

http://www.miteq.com

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COVER STORY

Globalstar recent press release inCanada came on the heels ofrecent troubles for the company.

The statement was bold proclaiming“FREE SATELLITE PHONE” for thosewho would stay the course and not fleethe rocking boat. With much candor, theexecutive quote explaining the boldcapital letters stated, “It is alwayschallenging to grab the attention ofbusinesses and individual users withmarketing campaigns however we felt theintroduction of a free phone promotionwould help create the buzz to push salesto the next level.”

Indeed, it caught the attention ofmany, but anything that is FREE (in boldcapital letters) is sure to grab people’sattention.

The promotion offering free

Satellite Handheld Price War Leads toMore Mainstream RatesClaude RousseauAnalyst, Satellite CommunicationsNSR

handhelds though is perhaps notcompletely true. It is more likely thatcustomers pay for it over a year bysigning up to a minimum $1,800 (CDN)annual plan. In imitating cellularoperators’ successful promotions that“give away” a handset at little or no costin return for a 12 to 24 month contract,the company can adjust the price of thecontract to include the handset amortiza-tion cost as to give a zero-sum game forequipment purchase. The operators aresmart and decided that making money onthe equipment is not a must, but losingsubscriber minutes is to be avoided at allcost. So it generates attention andattracts subscribers who then talk up the

minutes with their “free” handset tobring the cellular operators the highermargins from airtime. However, fewusers stick to the plans, and most haveor will make use of additional servicesthat will be charged at a high price, allfor the benefit of the operators.

Is this enough to keep customers?Perhaps it is because the company that“gave away” satellite handsets alsoinstituted an “Unlimited Loyalty” rateplan for unlimited satellite airtime with adeclining monthly subscription price inthe U.S., again in the hopes of keepingcustomers from jumping ship.

The Globalstar satelliteconstellation (image courtesy ofGlobalstar).

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COVER STORY

to other MSS operators? Perhaps forGlobalstar, this is the case in view oftheir satellites coming at the end of theirexpected useful life and suffering fromantenna problems since late 2006. Theirchurn rate and average revenues peruser have suffered in the first quarter of2007, and many resellers have gleefullytaken orders for Iridium phones fromGlobalstar users.

But if we look at how this pricingstrategy has influenced other players inthe satellite handheld business, it isobvious that they started a movementthat the others have thought about for awhile. The MSS business has grown atdouble-digit rates annually over the lastfew years, and the entrance of newplayers such as Inmarsat, Terrestar, ICOand MSV in the handheld MSS businesspoints to either ill-advised investmentsor a desirable high yield market. We’lltake the latter and say that operatorsthat have followed suit to Globalstarsuch as Iridium have finally beenpushed to take the step to meet main-stream cellular airtime prices with whatIridium candidly called “street prices.”Its new plan announced two weeks afterGlobalstar’s Unlimited Plan dropped perminute calling rates to as low as $0.15per minute with unrestricted calls within

North America. It is aggres-sive pricing that is dead setto compete with mobileoperators, not just torespond to MSS counter-parts.

The domino effectcontinued in June whenThuraya released an 81-country cut-rate per-minuteoffering with “terrestrial-likeprice for a premium satelliteservice” or 50% to 70%cheaper compared to their

Claude Rousseau is Analyst, Satellite Communications forNSR. He can be reached at [email protected]

handset delays and satellite jammingproblems, so one would wonder if thelong-term outlook is conducive to suchlow prices.

It is true that the risk component ofthe MSS market is still very high andbehind the price plans announced aretwo LEO operators that have come outof bankruptcy almost debt-free with lowoperational costs today. The risk ofcourse is to see the subscribers con-tinue service once their contracts expire,which would leave the MSS operatorswith huge upcoming capital investmentsfor their 2nd generation satellites to paywith little money in the bank. They aremore likely betting that the MSS pricewar turns into a larger share of themobile market pie for satellite operators.

SM

previous list pricing. The call charge is$0.20 per minute for communications toand from Thuraya phones and $0.39 perminute to any other destination.

The handheld price “coup” ofGlobalstar can be seen from theirperspective as a short- to mid-termmarketing strategy and from theindustry’s point of view as a wise long-term approach to mobile communicationspricing. Given the healthy state of mostoperators, the adoption of volumemarket pricing strategies is simply a signthat the market for MSS handhelds ismaturing and satellite telephone opera-tors see cellular as their main competi-tion.

The MSS industry has had bumpsin the road lately with the demise ofConnexion-by-Boeing, Globalstar’ssatellite problems, and Thuraya’s new

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EXECUTIVE VIEW

For years, the world’s largestmilitary agencies, commercialshipping firms and media organiza-

tions have depended upon mobilesatellite systems (MSS) to gain a tacticaladvantage and boost productivity.

Military commanders and corporateIT managers have benefited from theability of MSS to operate in remoteareas, beyond the reach of terrestrial andcellular networks, or areas where existinginfrastructure is outdated, insufficient ordamaged. In major emergency situa-tions, MSS are often the only practical,short-term solutions for getting criticalinformation to and from the scene. Wideadoption of MSS has been driven by thefact that these systems can be set upquickly, often in a few minutes, withoutbroad technical expertise.

Let’s take a look at how MSSproviders have met the increasingperformance demands of military andcommercial users – and which newmarkets have become increasinglydependant on these mobile technolo-gies.

Improving MilitaryPreparedness

With large force deployments in theMiddle East and other regions over thepast several years, the importance ofMSS has increased tremendously. The

New Mobile Satellite SystemsMust Meet Strict Performance Demands

by Jim Parm

use of sophisticated MSSfor voice, data, Internet,and tracking applicationshas become as prevalentas the use of any othermilitary hardware. TheMSS segment – whichfeatures services fromInmarsat, Iridium,Globalstar and others –has become the fastest-growing segment ofmilitary communications.

As the concept ofnetwork-centric opera-tions continues totransform military andsecurity operations,leading MSS manufactur-ers have introduced awide range of services tohelp ensure the successof any mission. Theseservices include: voicecommunications;narrowband data;broadband data; Internetaccess; and dedicatednetwork access.

While missionsuccess is always thehighest priority, intoday’s funding environments the costfactor remains a significant consider-ation. In addition to traditional satellitesystems where users pay for the amount

of time connected to the network, manynew MSS services only charge for thedata transmitted – allowing users to

BGAN is ideal for broadcasters who needdependable, secure voice and broadband access inlocations with an unreliable or non-existenttelecommunications infrastructure. BGAN’ssimultaneous voice and data capabilities enablefield reporters to maintain voice contact with theirstudio for queuing of the video story that followsvia IP streaming. BGAN’s ability to support IP dataand broadcast-quality video streaming is ideal forlive video feeds. The service also supports store-and-forward applications for sending images orvideo files to headquarters.

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maintain constant network access at greatly reduced costs.

Even in today’s data-driven environment, the power and utility of voicecommunications are still prominent. The latest handheld phones from Iridiumand Globalstar are widely used by military personnel of every major country,to make and receive calls virtually anywhere in the world. The new Inmarsatand Iridium handhelds are now smaller, lighter (less than one pound) and moreresistant to water, dust and shock – making them ideal for rugged militaryconditions. These new models also provide narrowband data transmissioncapabilities (up to 9.6 kbps) via internal modems, which connect to laptops toaccess applications such as email.

Land mobile systems that provide high-speed and true broadband dataconnectivity comprise the largest segment of the MSS category. The latestland mobile systems keep field commanders connected at all times, enablingthem to access command-and-control (C2) systems and maximize the effec-tiveness of their forces.

Inmarsat’s BGAN (Broadband Global Area Network) system is deployedextensively in Middle Eastern battle theatres and other strategic areas by theUnited States, Australian and British defense forces. These systems provide

BGAN enables battlefield commanders to maintaintrue, mobile-office connectivity wherever they travel. BGAN has been widely adopted by military agenciesworldwide for battlefield and ground command-centerapplications.

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EXECUTIVE VIEW

small, lightweight (3 kg.), ruggedizedterminals for voice, high-speed data (upto 492 kbps) and video communications.BGAN systems feature Mobile PacketData Service (MPDS) that enables usersto pay only for data packets transmittedand received.

BGAN systems provide advancedvoice services including STU-III/STE,Brent and FNBDT compatibility forsecure calls. They also provide broad-cast-quality transmissions for e-mail,file-transfer, Internet access and videoteleconferencing. BGAN is also compat-ible with data-encryption devicessupporting the encryption standardsnative to all major countries.

Many of the same MSS servicesused by land and sea forces are alsoavailable to serve airborne militarypersonnel, to support air traffic controland full ISR (intelligence, surveillanceand reconnaissance) integration. TheUK’s Royal Air Force recently begandeployment of Inmarsat’s Swift 64service on its Nimrod fleet to enablehigher capacity air-to-ground communi-cations and interoperability between

other nations.

The Appeal ofMSS to FirstResponders

The first re-sponder community isat a crossroads when itcomes to implementa-tion of emergencycommunicationssystems. After livingthrough 9-11 andrecent hurricanes, localgovernments arekeenly aware thattraditional telephonelines are not likely to

ment of Homeland Security offersseveral grant programs to first respond-ers for equipment to enhance theirability to respond effectively to anincident. BGAN meets the criteriaestablished by these grant programs.

BGAN Excels for SatelliteNewsgathering

Broadcasters are second only tomilitary commanders when it comes toutilization of BGAN for high-speed datacommunications. Since 2006, BGAN hasbeen widely adopted by broadcasterssuch as the BBC and Fox News in Iraq,Afghanistan and other remote regions inEurope and Asia for on-the-sceneconnectivity where satellite news vansare unavailable, too cumbersome or toocostly.

BGAN’s simultaneous voice anddata capabilities enable field reporters tomaintain voice contact with their studiofor queuing of the video story thatfollows via IP streaming. BGAN’s abilityto support IP data and broadcast-qualityvideo streaming is ideal for live videofeeds. The service also supports store-and-forward applications for sendingimages or video files to headquarters.

These broadcasters have learnedthat leading BGAN distributors offervalue-added services that help makeBGAN usage more productive andaffordable. These services provide costcontrol, firewall management, full trafficinformation, pre-paid facilities, highsecurity options and easy VPN access.

MSS Increases MaritimeProductivity

The merging of shipping compa-nies is resulting in large organizationalstructures that require ever-more

BGAN is ideal as a mobile office solution for energy,construction and engineering professionals. For amobile office, BGAN can be used for e-mail, Internetaccess, VPN, and broadcast-quality IP streaming.

be available – and cellular and radiocommunications are apt to be unreliable– after disasters.

Government task forces havebegun to recognize the critical need toincorporate reliable MSS into theiremergency response plans – to achieveseamless interoperability among firstresponders, hospitals, emergency reliefworkers and local government agencies.

First responders require immediatecommunications upon arrival on a scene.Voice and high-speed data is critical, toallow for voice contact with commandcenters and for direct access to IncidentManagement systems, either via Internetor VPN. BGAN clearly fits the needs ofthis market, as it offers greater datacapability simultaneously with voice in acompact, rapidly deployable unit.

In addition to police, fire and EMS,other examples of agencies evaluatingBGAN include emergency managers,public health, border-patrol, centers fordisease control, and governors’ offices.While these agencies typically operateunder fixed budgets, the U.S. Depart-

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sophisticated management systems.The only way to meet these challengesis with a unified technological solutionthat seamlessly and cost-effectivelyintegrates all maritime operations onland and at sea.

To meet the demands of themaritime market, major MSS distributorsdeliver a wide portfolio of satelliteservices, including as Inmarsat, Iridium,Globalstar and Maritime VSAT. Oneservice enjoying especially strongadoption is the Inmarsat Fleet F77system. It is the first, full-featured modelin a family of new high-bandwidth IP-enabled global satellite systems.

Fleet F77 is ideally suited to larger

BGAN is ideal as a mobile officesolution for energy, constructionand engineering professionals.For a mobile office, BGAN can beused for e-mail, Internet access,VPN, and broadcast-quality IPstreaming.

vessels which require a complete officeat sea, and is designed to provide asingle integrated platform to supportboth dedicated, high-speed ISDN andalways-on mobile packet data service(MPDS), as well as voice and Group 3and 4 fax services.

The promise of increasinglypowerful MSS will be available to shipmanagers later this year with theintroduction of Inmarsat’sFleetBroadband services.FleetBroadband is expected to providecost-effective, high-speed data andvoice communications – for both primaryand backup connectivity – at speeds upto 432 kpbs, regardless of the vessel’slocation.

Communications managers will findthat FleetBroadbandcan be rapidlydeployed across anentire fleet and, as astandard IP service,seamlessly inte-grated with head-office networks.Terminals willoperate globally andthe user interface isexpected to bestandard across allhardware.

FleetBroadbandwill support thelatest IP services, aswell as traditionalcircuit-switched

Jim Parm is President and CEO of StratosGlobal Corp., a provider ofadvanced mobile and fixed-site remotecommunications solutions. He can bereached at +1-301-214-8800 [email protected]

SM

voice and data for legacy applications.Terminal costs are expected to berelatively low and the network willsupport all the latest security protocols.

All indications are that leadingMSS manufacturers will continue tointroduce faster, more cost-effectiveproducts to meet the increasing perfor-mance demands of military and commer-cial users. To complete the equation,distributors, service providers andLESOs must continue to develop newvalue-added services to fully customizethese systems to meet specific customerrequirements. By working together,manufacturers and solution providerscan ensure the MSS segment maintainsits critical role of increasing safety,productivity and efficiency for keymarkets.

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http://www.gottliebandcompany.com

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FEATURE

Not for the first time are wereminded of former British primeministerHarold Wilson's

phrase, that ‘A week in politics is a longtime’, and a single week in June mightwell go down as being significantlymeaningful for the satellite industry.

First up was the reselling ofIntelsat. It isn’t, in my view, whereIntelsat finally ended up that mattersquite so much as the audacious sellingoff of the merged Intelsat and PanAmSatassets, and that the current owners canstill take a small fortune – in truth, quitea large fortune – in cash out of theoperation. It is also fascinating to seesome of the players involved in thebidding war, not least John Malone (thecable guy) and Charlie Ergen (thesatellite guy) get cosy around a tableand contemplate a bid for Intelsat.

It will be interesting to see whatdifference BC Partners makes to theoperation, and how well Intelsat man-ages under a $16bn debt burden oncethe deal closes.

We all know about the hugeamounts of cash thrown off by satelliteoperators, with EBITDA profits in the75%-80% range commonplace in theindustry, that is the goal of the newowners. Predictable profits extendingwell beyond the horizon are alwaysappealing, but my question focuses onthe single unstated asset of all satelliteoperators, not the satellites or theirback-log of contracts but the orbitalslots themselves. They are also runningout, and as HDTV takes root, and

One Busy Week in June for SatellitePlayersby Chris Forrester

Telesat 72.5 deg W

Telesat 82 deg W

Telesat 86.5 deg W

Ciel 91 deg W (Ka)

Ciel 91 deg W

Ciel 103 deg W

Ciel 107.3 deg W

Ciel 109.2 deg W (Ka)

Ciel 111.1 deg W

Telesat 118.7 deg W (Ka)

Telesat 118.7 deg W

Ciel 138 deg W

The Canadian LicenseAwards

capacity demand increases,one wonders where the newslots will come from.

Which is certainly theview with the Canadian auctionresults also announced in June.Seven Canadian licences havebeen awarded to Ciel, an SESGlobal subsidiary, which wonan impressive seven licences tooperate North Americanservices. Telesat of Canadawon five licences. The endresult, according to Canada’sindustry minister MaximeBernier, is that ‘Canada’ will see10 new satellites launched by2010. The Minister talked aboutthe extra capacity being usedto launch new HDTV services,high-speed internet access and

additional communication services.

Ottawa-based Ciel is already inbusiness with a rented satellite, and willhave its first new craft on station laternext year. Ciel is a consortium led byCanadian investors, with SES a juniorpartner in the business. Canada’sindustry ministry had originally placed29 licences on offer, but only 12 weretaken up. The appeal for all 12 is theactivity taking place not in Canada –important though that will be – but inthe growth potential elsewhere in North

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FEATURES

America. Telesat, which won fivelicences, is in the process of mergingwith Loral Space & Communications.

It is also interesting that both Cieland Telesat adopted some of the Ka-Band slots on offer, and if capacity inKu-band does become squeezed there’selbowroom in the new frequency bands.

Of course, there are other Europeanplayers besides SES Global that arelooking closely at American opportuni-ties. Top of this list is Eutelsat, which formany years has had an investmentposition in Madrid-based Hispasat,largely because of Hispasat’s powerfulAmazonas satellite slot at 61 deg Westand in prime position for capturing ‘TheAmericas’ (and with excellent connectiv-ity to Europe and Africa). Amazonas 1has been a commercial success, but aslow fuel leak will curtail its life onstation, and has forced Hispasat to bringforward its replacement. Amazonas 2 wasordered in June. Astrium will design andbuild Amazonas 2. The new satellite,based on a Eurostar E3000 platform andequipped with 64 transponders (54 Ku-band and 10 C-band), will provide a fullrange of telecommunications services toboth North and South America and willallow Hispasat to respond to thegrowing market demand in this region,especially in Brazil.

Amazonas-2 will be co-located at 61deg W. alongside the Astrium-builtAmazonas 1 satellite launched in 2004.Amazonas 1 will take early retirementbefore 2014 (its expected lifespan was tolast until 2019). Amazonas-2 is sched-uled for launch in 2009.

Despite these problems, Amazonas(and Hispasat) is an attractive option forconsolidation by Eutelsat. It could stillhappen, although probably not in theway Eutelsat first imagined. In JuneSpain’s government gave its unequivo-

cal approval forconstruction totelecomsconglomerateAbertis toacquire up to40% of Hispasat.Unfortunately,the go-aheadcomes withstrings attached,not least thatHispasat muststay firmlySpanish. This, atfirst blush, rulesout the long-anticipatedprospect thatEutelsat couldabsorb Hispasat, and transfer itsownership to Paris.

This has long been Eutelsat’s plan,where it had patiently held onto asignificant 27.69% shareholding, with –now terminated – options to acquire alarger stake over time. Part of theproblem is that Hispasat carries amilitary payload serving Spain’s armedforces, and governments are usuallysensitive about “foreign” ownership ofsuch communications.

The other factor concernsHispasat’s soon-to-be investor Abertis.Abertis is also a major 32% shareholderin Eutelsat, and many had expectedAbertis to be the catalyst to bringHispasat into Eutelsat. Now, it seems,Abertis’ longer-term strategy is begin-ning to emerge. Somehow or other the“military” obligation on Hispasat will behived off to a wholly Spanish business,and then the merger between Hispasatand Eutelsat can take place

.But given that Spain’s government

has ruled so decisively that Hispasatmust remain in Spanish hands, the only

route forward would be for Eutelsat tobe merged into Hispasat, again withAbertis being the catalyst. Quitewhether this would mean a relocationaway from Paris is – as yet – unclear. Butthere’s certainly no reason for “new”owners to seek that degree of consolida-tion. Eutelsat could happily stay at itsParis location, but flying a Spanish flagabove the front door.

This is an all-too-simple explana-tion for a complex operation, and subjectto a thousand future variants andinfluences. But it does provide asolution to the current conundrum ofHispasat (and Abertis’) wish for consoli-dation to take place, but under a Spanishregime. There’s also a prospect forHispasat to mount an Initial Public shareoffering (IPO).

Whatever the eventual position,the investing community still findsEutelsat attractive. Giant investmenthouse Franklin Resources has quietlybeen building a stake in Eutelsat. Anannouncement June 13 said Franklinnow held more than 10% of Eutelsat’sstock, having purchased a large bundle

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FEATURES

on June 7 taking its total holdings to21.69m shares, representing 10.02% ofthe company. Franklin, in a statement,said it was not seeking a seat onEutelsat’s board, nor is it buildinga stake to take control of thebusiness. However, it said itreserved the right to buy or sellEutelsat’s stock in the future.

Eutelsat itself, as this iswritten, has yet to update its ownweb-site as to the preciseshareholdings of its other keyinvestors, believed to still beAbertis (with 31.96%) and Frenchstate bank CDC (26.15%). If thislatest 10.02% stake has comefrom the free float of sharehold-ers, this would leave about 32%in public hands.

This news emerges at thesame time as a major 17-pagereport from investment bankersMorgan Stanley on Eutelsat,which delivers an upbeatoverview of the satelliteplatform’s prospects. The bankspecifically alerts investors toEutelsat’s upcoming full-yearresults, due about July 26, whichmight prompt a further upgrade.The report takes the view that allsatellite operators remain “highlyattractive” as we are seeing withthe continued interest in Intelsat.

Morgan Stanley presentsits usual Bull, Base and Bearcases for Eutelsat’s future. Its‘Bull’ case anticipates strongcontinued demand withutilisation at 80% between nowand 2014 (or better) and EBITDAup in the 78% average. On thisbasis Morgan Stanley suggestsEUR22.7 as a target price. Basecase sees fleet utilisation of 75%average over the same period,

and 77+% EBITDA delivering a targetprice of EUR19.1. The Bear case, notexpected by too many people but always

a possibility, talks about a 68% fill rate,and EBITDA of 76.6% which combine tosuggest a share price of just EUR13.9.

http://www.newtec.eu

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“As the results of Eutelsat, SESand Intelsat all show, the FSS industryremains in rude health, with strongglobal demand”, say Morgan Stanley.“This was reflected in Eutelsat’s strongQ3 results: [with] underlying revenuegrowth in the period was 5.4%, or 7.2%excluding the effects of currency. Thisresult was particularly good given atough comparable period (Q3 2006+6.4%). As we have noted in previousresearch, since their IPO in late 2005,Eutelsat management has consistentlyraised guidance. Most recently, therevenue target for FY 2007 was in-creased from ‘above EUR800m’ to‘above EUR815m’, while EBITDA marginguidance for 2007 rose from ‘at least77%’ to 78%, giving it the highest groupmargin amongst its FSS peer group.”

The bank added: “We believe thereis scope for management to increasefurther its medium term targets. Currentguidance is for 2007-9 revenue CAGR of‘more than’ 4.5%, driving an EBITDAmargin of ‘above’ 76% over that period.The five new satellites joining the fleetin fiscal 2009 will bring an additional 83transponders of new capacity not

contracts at this position. In ourforecasts we assume 2 transponders aresold by the end of 2008, 5 in 2009 and 6in 2010. We assume these are sold at anaverage price of EUR1.75m per transpon-der per annum.” The report continued:“The announced 2009 relocation ofHotbird 7A and the ‘possible’ redeploy-ment of Hotbird 6 to another orbitallocation outside 13E. The relocation ofthese satellites is made possible with thelaunch of Hotbirds 9 and 10, which willprovide more than sufficient backupcapacity at 13E thus allowing anothersatellite (Hotbird 6) to be Moved fromthis position. As far as Hotbird 7A isconcerned, this will be moved to 10E andused to expand capacity for the provi-sion of video services over Europe. Theaforementioned relocation of Eurobird 10to 4E leaves the 10E position occupiedby W1 which has approximately 14transponders primarily for data use. 7Ahas38 transponders and was launched in2006 with an expected operational life of18 years. We assume that Hotbird 7A isrelocated at the end of 2009 to 10E, witha 20% utilization rate in 2009. Given that10E will be used for “spill over” demandfrom 13E, and noting that 13E is basi-

cally full, we assume a steady increase inthe utilization rate: 30% in 2010, rising to40% in 2011, 50% in 2012 and 60% in2013.”

“Eutelsat will need to encouragecustomers to transfer from 13E to 10Ewhich will clearly involve a priceincentive. However, this will increasecapacity available at premium priced 13Efor anchor customers. In our forecasts,we assume an average price per tran-sponder of EUR1.8m in 2010 and 2011,rising 2% per annum thereafter. Thisrepresents a discount of around. 50%per annum compared to the Hotbird 13Eposition. As regards Hotbird 6, manage-ment has already indicated that it maylocate this satellite to an alternativelocation once the new satellites, Hotbird9 and 10 are operational. For the combi-nation of these two satellites withHotbird 8, which we assume remains atthe 13E position, should provide about86 backup transponders at that orbitallocation.”

Despite this celestial ballet, wheresatellites are pirouetted to new locationsand fresh money-earning propositions,the bankers are still favouring SES overEutelsat at least as far as the pair’strading multiples are concerned. Butthere’s more potential for shareholdersin the shape of Merger & Acquisitionactivity. Morgan Stanley specificallyrefers to the Abertis/CDC shareholdingsin Eutelsat, reminding readers of theAbertis statement made back in Decem-ber 2006 when it said its purchase of itsstake in Eutelsat represented a “strategicmovement toward the consolidation ofthe telecommunications infrastructurebusiness” indicating it is a long termshareholder of the company. Theinvestment strategy at Abertis isfocused on increasing stakes suffi-ciently in order to build a controllingposition. As stated by Abertis, a key

FEATURES

previously included in guidance. Wealso expect relocation of othersatellites, amounting to a furtherincrease in the number of transpon-ders in commercial use.”

These new operating slots arefascinating, and the bank commentson them, saying: “Eutelsat’s an-nouncement of the creation of a neworbital slot over Europe at 4 deg East.Eurobird 10 (previously namedHotbird 3) has been relocated from10E to service this slot. At 4E it hasbeen renamed Eurobird 4. With 8transponders in operation, it willserve primarily data and multi-usageclients and Eutelsat has indicatedthat it has already signed new

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FEATURES

objective for the company is “Obtainingmajor or controlling stakes or being thesole industrial partner”. At the time ofthe purchase of the 32% stake, Abertisindicated that it is happy with its currentshareholding in Eutelsat, but this doesnot preclude the company from increas-ing its stake at a later date. “Abertis hasno current plans to increase its holdingin the capital of Eutelsat, nor does itintend to make a public takeover bid.”

We note that Abertis has more thansufficient funds to fund either anincrease in its stake or a full takeoverbid,” adds the bank’s report. As to thecurrent position at Hispasat, the banksays: “Eutelsat has consistentlyreiterated its interest in Hispasat, inwhich it has a 27.7% stake, making it thelargest strategic shareholder. Approxi-mately 41% of the company is held bySpanish investors who have indicated adesire to exit their shareholdings, soEutelsat, with pre-emptive rights overthese positions, could be in a goodposition to be a buyer. The problem isthat this requires governmental ap-proval, which does not look to beforthcoming, possibly because Hispasatdoes handle Spanish military traffic(although less than 10% of revenuescome from this source), or possiblybecause, like many other nationalsatellite operators, keeping this businessdomestically owned is viewed as part ofnational pride.”

Which brings us full circle,wondering where this current set ofchanges, new owners, fresh challenges,potential mergers and/or acquisitionsmight all end up. Either way, the satelliteindustry proves there’s never a dullmoment!

London-based Chris Forrester, a well-known broadcast-ing journalist is the Editor for Europe, Middle East andAfrica for SATMAGAZINE. He reports on all aspects ofthe industry with special emphasis on content, thebusiness of television and emerging technologies. Hehas a unique knowledge of the Middle East broadcastingscene, having interviewed at length the operationalheads of each of the main channels and pay-TV plat-

forms. He can be reached at [email protected]

SM

http://www.satnews.com/products.htm

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VIEWPOINT

It’s been a few short weeks since theconclusion of this year’s International Satellite and Communications

Exchange (ISCe), an annual conferenceheld June 5 – 7, 2007 in SanDiego, CA. According to the organizer,Hannover Fairs USA, attendance was up14% over last year; a significant increasein the buzz “dB” level was obvious. Ithought I would take the opportunity toreview aspects of the conference thatwere particularly timely and interesting.Two sessions represented theconfluence of hybrid media and technol-ogy that will become more and moreimportant to satellite industry growth incoming years. The first session dealtwith hybrid networks that mergeinteractive satellite communications withterrestrial networks (wired and wireless)to deliver broadband mobility to users.Reflecting ISCe’s dual focus on commer-cial and military satellite communica-tions, the speakers presented technol-ogy and applications that offer broad-band links to both flavors of mobileusers. The second hybrid-relatedsession described how current DBSsystems are adding terrestrial broadbandInternet connections and employingpowerful set-top boxes and web-basedprogram guides to provide more in theway of entertainment (read, fun). Bydoing so, DBS operators can maintaintheir growth rates in the face of stiffcompetition from digital cable. Lastly,the awards banquet gave us a top-downperspective on how Arthur C. Clarke’s

Mobility and Hybrid Networks:An ISCe 2007 RetrospectiveBruce R. ElbertPresidentApplication Technology Strategy, Inc.

abstract idea from 1945 could become a$100 billion growth industry.

Hybrid Satellite/TerrestrialBroadband Mobility

The session titled “Hybrid Solu-tions for Mobility” on Tuesday, June 5,was sponsored by the World TeleportAssociation and the Global VSATForum. This interesting and dynamicsession included senior representativesof leading service and equipment

providers that seek a wide range ofmobile users. Leading off was StuartClark, Director, Strategic Channels &Business Development, Mobile SatelliteVentures (MSV). Stuart acquainted uswith the current status of the MSVAncillary Terrestrial Component (ATC)project that will place two very highpowered L-band satellites into orbit forhybrid satellite/terrestrial mobilebroadband satellite services. Accordingto Stuart, the system will serve palm-sized handheld devices akin to the

The recently held ISCe Conference and Expo in San Diego featured adistinguished lineup of speakers as this panel composed exclusively ofCEOs of major satellite companies. (photo by Virgil Labrador).

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VIEWPOINT

Blackberry and allow users to roamwithin urban areas and to the remotestplaces in the country. Expectations arethat MSV and its ATC rivals, ICO andTerreStar, need big telecom industrypartners to deploy the terrestrialcomponent. The satellite piece appearsto be well in hand with all three compa-nies being under contract with Boeing(for MSV) and Space Systems/Loral (forICO and TerreStar).

More in the way of background onATC was provided by noted industryresearcher, Christopher Baugh, Presidentof the research firm NSR. His viewis that the financial markets (and likelythe consumer markets as well) will notsustain multiple ATC entrants. Thisposes the obvious question: which onewill prevail and/or which will merge? Atthe Mobile Satellite Users Association(MSUA) conference last May, RomeoReyes of Jeffries and Company statedthat ATC is challenged to obtain thesepowerful partners and produce the kindof user device that Stuart described.These, as we say in aerospace, areprobably “doable dos”, but none of theentrants have publicly demonstratedprogress in either area.

Alan Kittson, Vice President ofGovernment Services and Sales,Spacenet, discussed how his organiza-tion is working closely with the USmilitary and other government agencieswho require broadband on-the-go. Tothis end, he described the NetworkModule (NM) VSAT that can fit within astandard CISCO router. The issue thatthe NM VSAT resolves relates toproviding secure Virtual Private Network(VPN) services with minimum latencyover a GEO satellite link. As I under-stand it, the TCP/IP acceleration neededfor good performance is accomplishedprior to the creation of the secure VPNtunnel; thus, the necessary TCP headersare not hidden from the acceleration

software, allowing it to functioncorrectly. The VSAT and acceleration aretherefore embedded in the router, underthe control of the CISCO networkoperating system. Terrestrial VPNs arebroadly popular among enterprises andgovernment agencies, but applicationsfor the NM VSAT so far have been inemergency communications where anincident commander must establishsecure broadband communications at adisaster scene.

An innovator in transportable andself-acquiring Ku-band dish antennas,Leslie Klein, President and CEO of C-COM Satellite Systems Inc., told us howmilitary units and first responders haveemployed his products to good advan-tage. The range of these auto-point andtrack antennas has increased markedlybecause government agencies andcommercial users in broadcast as well asoil and gas require broadband serviceswherever they may need to operate. Thehigher power of Ku band satellites tieswell with mobile dishes like those fromC-COM, as users demand more in theway of bandwidth and applications nomatter the location.

Location versatility is somethingcentral to the business of companies likeArrowhead Global Solutions, a providerof broadband satellite services

to the US military.Michael Shakarji,Senior Vice President& CTO, SATCOMServices at Arrow-head, spoke aboutthe investments insatellite capacity andteleports that hisorganization hasmade to supportmobile forces. Inparticular, the USMarine Corps relieson Arrowhead to

deliver broadband communications ondemand anywhere on the globe that theirabilities are required. Michael’s examplesincluded anti-terrorist operations inSoutheast Asia and emergency relief inAfrica.

To make his point about themobility of the Inmarsat BroadbandGlobal Area Network (BGAN), GeorgeSpohn, Vice President, Sales andMarketing - Thrane & Thrane, Americas,held up one of their very-compact L-band Internet access devices. Capableof over 400 kbps of bi-directional dataflow, as well as 64 kbps ISDN service,the Explorer 500 has found a followingamong news reporters, field techniciansand disaster workers.

Stephen Yablonski, Vice President,Globecomm Systems Inc.(GSI), ad-dressed how a hybrid satellite – cellularsystem introduced mobile telephoneservice to remote towns and villages inthe State of Alaska. What was particu-larly interesting in this GSI solution isthe application of a flexible softwaredefined radio (SDR) within the remotebase station. Through the satellite link,the base station can be reconfigured forany of the current second generationdigital cellular standards (i.e., GSM andCDMA). That same satellite link pro-vides the connection back to a choice of

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VIEWPOINT

mobile switching centers in Alaska orLos Angeles. Mobile telephone calls donot even have to pass over the satellitelink if they are local to the particulartown or village.

This pre-conference panel gave usa comprehensive picture of hybridmobile networks that address enterpriseand government needs. Through theefforts of the represented companiesand others, service providers and usersare able to piece together an applicationand deliver it literally anywhere peoplemay go. Applications that demand datarates above 1 Mbps generally require anaperture around one meter and thus fitbest with Ku and Ka bands. MSSproviders like Inmarsat and MSV areconstrained by L and S-bands in termsof available spectrum, and yet theypromise true portability and mobilitywithout a large physical structure. Thereis still a financial premium is using thetypes of systems and networks offeredby the other members of the panel;however, the operational and financialrequirements for these resources areaffordable in the enterprise and govern-ment sectors. It is a matter of research-ing and defining the requirements for thesatellite network, and contracting withthe appropriate service or systemprovider.

Satellite Television andTerrestrial Broadband

A different perspective on hybridsatellite networks was presented in theopening session on Wednesday, June 6,organized by the Carmel Group and ledby its chairman, Jimmy Schaeffler. Thekeynote speaker, Alan Guggenheim,President and CEO of OpenTV, gave us apreview of what may become themainstream for home entertainment.OpenTV produces software for the set-top-box using a web-based interface. Itis available in 88 million television

homes today and supports DBS andInternet on a common platform. Alanstated that DBS is here to stay as itprovides the greatest range of TVchannel options, both SD and HD. Atthe same time, the hybrid approachpresents content via a home networkand the Internet to multiply thoseoptions and give an interactive mecha-nism. Perhaps in anticipation of this,DISH Network has for several yearsbeen supplying set-top-boxes thatinclude Ethernet connections.

The new paradigm that AlanGuggenheim foresees is one whereviewers are no longer subscribers butbecome customers. He predicts the endof subscription services where we pay amonthly fee for a hundred or morechannels. There are two problems withthe subscription model: 100 channels isno longer enough, thanks to viewingoptions from the Internet, DVDs andother non-broadcast media; and much ofthis new content is available for freefrom the Internet. A larger share ofrevenue for content will come fromadvertising, reverting to the old modelfor over-the-air-broadcasting andbuilding on the new Internet-model madesuccessful by Yahoo and Google.Another twist to the hybrid media futureis that customers will obtain much of thesame content through a variety ofschemes – offering anytime, anyplaceviewing and listening. The means fordoing this - DVR, VoD, HD, IPTV, EPGsand mobile TV – further confuse themarket for content. Younger customersare finding much enjoyment in produc-ing content and making it available toothers over the Internet. It’s certainlyconfusing and perhaps of concern tothose who make their business out ofsubscriber revenues and connectioncharges.

The point made about the valueand longevity of satellite TV gives

comfort to a substantial and still-growing segment of the satellite indus-try. The key to DBS stability is theterrestrial broadband channel nowwidely available. We can thank cableand telephone companies for makinglow-cost high speed Internet available toover half of all television homes. Whilesatellite broadband is certainly valuableto remote users, terrestrial broadband ispreferred for delay-sensitive applica-tions such as VoIP and on-line computergames. Recently, DIRECTV and DISHannounced an agreement with Clearwire,a leading provider of terrestrial WiMAXnetworks. While WiMAX penetration islimited today, it is possible that it willbecome another household word andbring broadband Internet penetrationnumbers close to 80% in a few years. Asa ubiquitous hybrid approach with morechannels and HD offerings, DBS couldaccelerate toward an even split of marketshare with cable.

Industry Leadership and theFuture

The awards banquet is always ahighlight because it showcases industryleaders and accomplishments. This year,ISCe held the dinner in the Casa delPrado at San Diego’s Balboa Park, wherethe old and the new blend beautifully.We were treated to the story ofEchostar’s origins by David Drucker,one of its founders. David reminded usthat the DISH network had a modestbeginning as a startup venture calledAntares (the name of a star 10,000 timesmore powerful than our sun), which wasone of a number of DBS applicantsbefore the FCC. It demonstrates onceagain that in the US, a major businesstoday can begin with nothing more thanan idea. David also played a major role increating the recipient of the ISCeInnovation Award, WildBlue, and is onhis way to a third major satellite startup.

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Bruce Elbert has over 30years of experience insatellite communicationsand is the President ofApplication TechnologyStrategy, Inc., whichassists satellite opera-

tors, network providers and users in thepublic and private sectors. He is anauthor and educator in these fields,having produced seven titles and con-ducted technical and business trainingaround the world. During 25 years withHughes Electronics, he directed majortechnical projects and led businessactivities in the U.S. and overseas. He isthe author of The Satellite Communica-tion Applications Handbook, secondedition (Artech House, 2004). Web site:www.applicationstrategy.comEmail: [email protected]

VIEWPOINT

we must adapt to and enhance what iscommonplace. Fortunately, our everydaytools and toys employ computers andtelecommunications and satellites offer aunique means to get the information tous.

Currently, it takes relatively deeppockets to employ hybrid broadbandsatellite systems; but, there are severalmeans available that render the costwithin our individual budgets. Inmarsatand Thuraya demonstrated that compactdevices can be very useful in limitedcomputer network applications and forvoice. When ATC finally appears in themarkets, it will find application and valueas well. The larger dishes used bybroadcast media and the military may becostly, but they are not technicallydifferent from low priced alternativesoffered for the home by WildBlue andthe RV and boat by KVH Industries. Youmay not be able to pinpoint the specificwinners in this picture, but you can bepretty confident that the aggregate willblossom like roses in the spring.

Mobile Satellite Ventures (MSV)Next Generation Satellite supportby the Ancillary TerrestrialComponent (ATC) technology onthe ground. (image courtesy of MSV).

The television scene at home is also onewhere hybrid satellite networks will play apowerful role. With home networks lookinglike the corporate networks of the 1990s, themeans exist to make home theater intosomething quite spectacular. The consumerswho purchased all of those HD sets lastChristmas will want greater entertainmentoptions and more interesting and engagingmaterial to enjoy on them. Advanced set topboxes that integrate content and provideexcellent interactivity are part of the next waveof consumer electronics. SM

http://www.satnews.com/mobile

July-August 2007 SATMAGAZINE.COM

Back to Contents 32

Interview with Intelsat General VP for BusinessDevelopment Don Brown

Don Brown

At the ISCe 2007 Conference in San Diego last month, Don Brown,Vice President, Business Development and Hosted Payload Programsof Intelsat General spoke to SatMagazine Managing Editor, VirgilLabrador. Brown is responsible for all business development activitiesof Intelsat General, a wholly-owned subsidiary of Intelsat catering tothe government and military markets. Prior to Intelsat General,Brown was the Vice President of Military Systems with PanAmSat’sG2 Satellite Solutions. Brown has held senior positions withSpace.com, American Mobile Satellite Corp., and in the SatelliteSystems Division of Federal Express Corporation. Excerpts of theinterview:

EXECUTIVE SPOTLIGHT

Q. Can you describe briefly IntelsatGeneral’s Hosted Payload Programwhich you are responsible for?

A.Intelsat has 52 satellites in orbit. Wehave an ongoing fleet replacementprogram for these satellites. That meansthat we have many opportunities toprovide capability for thegovernment to provision capacityof a whole variety on-orbit.

Q. I understand that you alreadyhave a hosted payload for theFederal Aviation Administration(FAA) and you aredemonstrating the IRIS conceptfor the US military. How’s thatworking out so far?

A. These are just two examples of thehosted payload program. There are somenotable characteristics that each ofthose represent. With the FAA hostedpayload on Galaxy 15, we were able toput that capability into orbit in anamazingly short time--within 18 monthsfrom contract to flight. That program isworking very well.

The IRIS or IP Router in Space programis an example of working with thegovernment to rapidly provision on-orbit capability that is a huge technicalleap for satellite communications. IRISenables the US government todemonstrate and test the capabilities ofa router in space, fundamentally

changing space architecture for thewarfighter. IRIS provides a nicesummary of the promise of hostedpayloads. It enables us in two years toput an IP router in orbit and begin tobring the promise of net-centriccommunications for the warfighter to thecommercial satellite industry--which isso important to them. Hosted payloadsis about a new way of working to be able

to provide capability in space in arelatively short period of time.

Q. For the FAA, how manytransponders does that dealinvolve, or is it a wholesatellite they are using?

A. That’s what makes thisprogram very interesting.It’s an L-Band payload. Its

not a payload that we regard in terms oftraditional C- and Ku-Bandtransponders. It is its own discreetpayload that’s an L-Band system.

Q. How do the contractual terms workfor the hosted payload program--arethey on long-term lease, or are theypart owners?

“....Hosted payloads is about a new way ofworking to be able to provide capability inspace in a relatively short period oftime...”

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EXECUTIVE SPOTLIGHT

A. There are a variety of ways in whichthis works. First, one of our themes withour military customers is to get them tounderstand that a hosted payloaddedicated to their mission can beprovisioned as a service. You know,there are a lot of people in thegovernment who are accustomed toacquiring and launching capability ontheir own. We’ve got a new model forthem. This model is one in which weprovide the service based on dedicatedcapability and the government pays forthat service as it is consumed. Thereare any number of models in addition toa lease model that hosted payloads canoperate with.

Q. How do you overcome the inability ofthe US DoD to go into long-term leasesor contracts?

A. As you heard in the sessionyesterday, the government is actuallynot legally prevented from entering intolong-term contracts. It’s more a culturalthan it is a regulatory barrier. The wayyou deal with it is first--you have tounderstand the government’srequirement in detail. That is how wecan convince our management that thereis a long-term opportunity there.Second, you can look at the LEASATmodel which we currently fly. TheLEASAT has been operated successfulthrough many generations--the LEASAT5, the last satellite in the series has beenin orbit for 17 years. We have a verygood relationship with the Navy whichextends the contract into multiple years.

Q. You mentioned Intelsat’s 52satellites. Is the hosted payloadprogram a way for you to fill up unusedcapacity in these satellites?

A. No. In fact it’s very different fromthat. We certainly will interconnect thesehosted payloads to transponders. In factwith IRIS, it will connect to C- and Ku-

Band transponders on the IS-14 satellite.But it’s a different way of working that.

Q. Are you offering capacity on all yoursatellites or are there are just a few thatyou have dedicated to the hostedpayloads program?

A. The entire fleet is an asset that can

be considered for a hosted payload.When I say the entire fleet, I mean ourreplacement fleet as we go and replaceeach of the 52 satellites as they reachthe end of their service life. Every singleorbital location os up for considerationfor a hosted payload. That givesIntelsat a unique advantage. Because ofthe size of our fleet and the extent of our

http://www.iridium.com

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EXECUTIVE SPOTLIGHT

coverage, we are able tooffer users a choice ofanywhere in the globe forplacement of their hostedpayload.

Q. How do you addressthe security concerns ofthe military being put ina satellite where thereare other non-securecommercial services?

A. First you have to acknowledge thatthere is such a concern. However, Idon’t believe that three are a lot in themilitary that have such a concern,

because they recognize afew facts. First, morethan 80 percent ofcommunications in theAtlantic Ocean regionare run on commercialcommunicationssatellites. Are any ofthose military usersconcerned that thosesame satellites serve

broadcasters? Secondly, is thegovernment concerned that most of theglobal information grid--over 90 percent--are over leased fiber? Are theyconcerned that the fiber they are on alsocarries traffic from Verizon or Quest?

Thirdly, we need to look at what kind ofsecurity do you need. Is it the physicalsecurity of a payload that is going to gointo a commercial satellite? If that’s thecase, we have a very long history ofprotecting individual payloads during itstransport to a launch site. We also havevery good relationships with launchservice providers to ensure the securityof the payloads.

(Intelsat image)SM

http://www.comtechefdata.com

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MARKET INTELLIGENCE

Frequently in this column I havemade reference to three fundamentaldefining characteristics of

satellite – Cost Effectiveness; NoLimitation of Distance, Geography orLocation; and, Rapid, Economic andReliable Deployment – which, togetherwith the facts of various vertical marketICT requirements, form much of thefoundation to a number of GVF annualconferences/summits/symposia/workshops that are dedicated to theexamination of communications impera-tives in different regions of, and differ-ent markets around, the world.

The recent GVF event in Cairo – the2nd Annual Oil & Gas Communications:North Africa and the Middle EastConference – organized in collaborationwith UK Event Management Partners(UK-EMP) – was an example of thismodel for the Middle East & NorthAfrica, but it is far from being the onlyGVF event dedicated to the communica-tions agenda of the MENA region in2007.

Over the period 8-12 September, theDubai World Trade Centre will host theGITEX Technology Week, whichencompasses the GITEX andGULFCOMMS exhibitions, as well assome new program features. To augmentand supplement this program, GVF willbe re-introducing its “branded” regional

GITEX, GULFCOMMS & GVF:“InterActive” Analysis in a Capacity CrisisBY MARTIN JARROLDCHIEF, INTERNATIONAL PROGRAM DEVELOPMENTGlobal VSAT Forum

conference format, the Middle East &North Africa Satellite Summit –MENASAT – which will run in parallel tothe GITEX program.

Throughout the planned two-daysof Summit proceedings the emphasis willbe on promoting discussion and debate,and to facilitate this, the format willcomprise a series of clearly themed“InterActive” Panels, punctuated withboth Applications Case Studies andIndustry Case Studies.

In Cairo, in May, the oil & gasconference featured a series of these“InterActive” Panels, centered on topics

of specific concern to that particularvertical, for example:

• Applications Evolution andthe Dynamics of Oil & GasNetworking Communications.

• Bandwidth Supply/BandwidthDemand: Optimising Price,Quality and Reliability

• •Variables in Oil & Gas Communications

• Oil & Gas Networking Innovation: Satellite and theHybridisation of the WideArea Seamless Solution

• Communications Regulation

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MARKET INTELLIGENCE

and Vertical Market GrowthMaximisation

• “Future Evolution”: Advancing the Dynamics of the IP-Based CommunicationsSolution.

• Maintaining the MissionCritical Link: Oil & GasCommunications WhenDisaster Strikes

• Collaborative Oil & GasCommunications: Sharing theBenefits

In Dubai, in September, MENASATwill comprise a similarly structured seriesof panels, all of which will be designedto contribute to the overall missionobjective of the Summit, being:

“Building Networks, ForgingConnections & Doing Business”

However, as was often notedduring the “InterActive” discussions atthe Cairo conference, the Middle Eastregion as a whole is facing something ofa problem with the availability of satellitecapacity… there just isn’t enough of it!

Therefore, with an “InterActive”agenda that will focus upon such themesas:

• The International, Regional &National Satellite Operatorsand their Regional Connectivity Initiatives

• Fixed & Mobile SatelliteServices: Challenge orComplement to TerrestrialMobile Networking Connectivity;

• Setting-up New EnterpriseSatellite Networks in the GulfStates

• Developing ICT Access viaSatellite & Satellite Hybrids

• Hybrid Connectivity & theEmerging Convergence

Environment for Enterprise• Broadband Satellite Systems

& Implications for RegionalICT Application Demand &Supply

• Growing the Gulf StatesCommunications Market:Advancing the Cross-BorderSatellite Solution

• Regional Vertical MarketCase Studies

MENASAT will be constantlymindful of two of the questions thatwere frequently posed in Cairo…

1) What are the satellite operatorsplanning to do about the problem?

2) When will the region have moresatellite transponder capacity?

These questions have, of course,been prompted by the failure/loss,within the last year-or-so, of twospacecraft that would have made asignificant addition to the transponderinventory over the region, and naturally,MENASAT will provide an importantplatform at which the growing number ofsatellite-dependent and satellite-hybrid-dependent end-users will be able to putthese questions directly to the global,regional and national satellite operators.

Is this regional satellite capacityactually needed?

Yes, undoubtedly so. Not onlybecause there remains the fact of thetremendous potential for the Arab Statesregion with regard to providing ex-panded access to cost-effective satellite

and satellite-hybrid communicationsservices for its continued social andeconomic advance. And, not onlybecause a number of administrations inthe region have introduced liberalizingreforms, with others having demon-strated a strong interest in doing so,thereby creating an enhanced founda-tion for growth in the communicationssector. And, not only because the nextsteps that the industry is aiming for inthe reform process are recognizablemoves in the direction of both regula-tory reform and market liberalization forsatellite and satellite-hybrid services inthe delivery of cross-border interna-tional communications solutions – forsuch applications as distance education,telemedicine, disaster recovery, andvillage communications, as well as trafficfor vital commercial enterprises –thereby expanding that foundation andpotential for growth even more. No, alsobecause – as clearly evidenced in Cairo– the end-user verticals that are vital tothe region are simply craving for thisincreased capacity.

Without it, not only will the growthof the satellite networking sector inMENA be stifled, so will the economicadvance and the social development of astill emergent region. A region thatneeds to have its communicationsinfrastructures and connectivity to theworld substantially expanded.

Martin Jarrold is the Director, International Programs ofthe Global VSAT Forum. He can be reached [email protected] For more information on the GVFgo to: www.gvf.org

SM

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STOCK MONITOR

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Wavestream 9www.wavestream.com

52-wk Range

APT SATELLITE ATS 1.80 1.20 - 2.60ANDREW CORP ANDW 14.36 7.79 -14.60ASIA SATELL ITE SAT 20.50 16.00 - 23.55TELECOMMUNICATIONS(ASIASAT)BALL CORP BLL 53.44 35.21 - 55.75BOEING CO BA 96.61 72.13 - 101.45BRITISH SKY ADS BSY 51.61 40.47 - 53.27CALIFORNIA AMPLIFIER CAMP 4.12 4.09 - 9.50C-COM SATELLITE CMI.V 0.2950 0.29 - 0.56SYSTEMS INC.COM DEV INTL LTD CDV.TO 5.35 4.26 - 6.88COMTECH TELECOM CMTL 46.85 26.90 - 47.74THE DIRECTV GROUP DTV 23.15 16.44 - 26.09ECHOSTAR COMMUNICATIONS DISH 43.84 30.65 - 49.69GILAT SATELLITE NETWORKS GILT 9.90 7.60 - 10.26GLOBECOMM SYSTEMS INC GCOM 14.50 6.30 - 15.05HARRIS CORP HRS 55.30 37.80 - 56.50HONEYWELL INTL INC HON 57.07 35.53 - 59.37HUGHES COMMUNICATION HUGH 52.16 29.75 - 54.36INTL DATACASTING IDC.TO 0.39 0.15 - 0.56CORPORATIONINTEGRAL SYSTEMS ISYS 23.98 21.42 - 33.55KVH INDUSTRIES INC KVHI 8.70 8.48 - 14.48L-3 COMM HLDGS INC LLL 97.99 66.50 - 99.95LOCKHEED MARTIN CORP LMT 94.57 73.52 - 103.50NEWS CORP NWS 22.93 19.00 - 25.78NORSAT INTL INC NSATF.OB 0.75 0.30 - 0.98ORBITAL SCIENCES CORP ORB 22.06 16.30 - 22.55QUALCOMM INC QCOM 43.65 32.76 - 47.72RADYNE CORPORATION RADN 10.70 8.61 - 13.33SES GLOBAL FDR SES.F 15.76 10.10 - 16.50SIRIUS SATELLITE RADIO SIRI 3.04 2.66 - 4.37TRIMBLE NAVIGATION TRMB 32.60 21.45 - 32.65WORLDSPACE INC WRSP 4.86 1.90 - 5.69VIASAT INC VSAT 32.49 24.04 - 36.00XM SATELLITE RADIO XMSR 12.06 9.91 - 17.70

Company Name Symbol Price(July 1)

Documents

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