How will future HTS satellites impact and drive maritime communications

EUROCONSULT FOR DIGITAL SHIP HAMBURG 2015

Prepared byWei LI, Senior ConsultantMarch 18th, 2015

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THE MARITIME MARKET

12,000 VSAT terminals

121,000Addressable vessels

70+ VSAT service providers

352,000MSS terminals

$760 millionrevenues for satellite operators

68,000 Merchant ships

6,500 Passenger ships

8,500 Offshore rigs and support vessels

• A historic market for mobility

• Strong change in usagepattern. Broadband is now thekey revenue generator

• Legacy MSS terminals stillstand for the bulk ofinstallation

• VSAT is becoming morepopular especially for highend market segments

• MSS market is consolidating

• VSAT market is fragmentedleaving opportunities for M&A

HTS VS REGULAR SATELLITES REGULAR SATELLITES HTS SYSTEMS

• High throughput• Designed for data• Dedicated beams for mobility• Lower cost per MB

• Large coverage• Designed for TV

broadcasting • Lower throughput

HTS satellites Regular FSS satellites

• Through 2016, a number of new HTSsystems are being launched with Oceancoverage

• Inmarsat’s Global Xpress will provide globalKa-band spotbeam coverage

• Intelsat EPIC will provide multi-spotbeamKu- and C- band coverage through a numberof upcoming EPIC class satellites

• Viasat-2 planned for 2016 will cover theNorthern Atlantic with Ka-band

• Eutelsat 172b with HTS Ku-band beam tocover the Pacific Ocean from 2017

•Thor-7 will add 6-9 Gbps to Atlantic andMediterranean in 2015

• O3b has steerable beams providing up to1Gbps per user to off-shore rigs and cruiseships

EXAMPLES OF HTS

Global Xpress

O3b

Thor 7

EPIC

Viasat 2

HTS systems to increase capacity overoceans to over 65Gbps by 2016

The Northern Atlantic and the PacificOcean with strongest capacity increase

Ka-band to grow from ~1Gbps in 2012to over 40Gbps by 2016

Ku-band to almost triple over the next5 years

Inmarsat (GX) and Intelsat (EPIC)leading operators, but a number ofregional projects do exist in the market

FSS CAPACITY OVER OCEANS

Estimated FSS satellite capacity over oceans, 2005-16

Gbps

Pacific

Indian Ocean

Mediterranean

Atlantic

0

10

20

30

40

50

60

70

2005 2007 2009 2011 2013 2015

Gbps

0

10

20

30

40

50

60

70

2005 2007 2009 2011 2013 2015

Ku-band

Ka-band

0

10

20

30

40

50

60

70

2005 2007 2009 2011 2013 2015

Intelsat

Inmarsat

O3b

others

Gbps

Investment in HTS systems• FSS operators CAPEX on HTS systems expected to surpass $12

billion by 2016.• Nearly 1,500 Gbps of HTS capacity by 2016

New systems • Multi-satellite constellations such as Inmarsat (Global Xpress),

Intelsat (EPIC) and O3b designed (in part) to target mobility applications traditionally served by MSS systems

• A larger number of operators provide regional coverage from single satellites (Thor-7, etc.)

• Except Inmarsat, most maritime HTS systems are of open architecture

Pricing pressure• The significant increase in capacity will break the supply-demand

balance in short term

• The demand increase is exponential but linear while the supply increase is leapfrog

• Competition will put pressure on the price

Key Trends in satellite capacity supply

Supply

Demand

• Various sensors on vessels

• Supporting a large variety typesof applications includingmaintenance, remote diagnostic,performance optimizations, etc.

• Reducing IT investment

• Improving efficiency

• Must-have solution forcrew and passengercommunications

• Content is the key element for differentiationfor SPs

• Lead to incremental revenue from existingcustomers

Significant bandwidth increase

in the next decade

New applications enabled by HTS

CONTACTS

Wei LIli@euroconsult-ec.com

www.euroconsult-ec.com

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