Exploring the current and future trends in the maritime communications industry Adonis Violaris

Managing Director Telaccount Overseas Ltd

Full Management vessels: 320Bernhard Schulte Vessels: 82

Crew Management vessels: 35340 VSAT Terminals with unlimited dataOver 17,000 employees onboard and ashore8 Service Delivery Centres1 Crew Management Centreand 25 Crew Service Centres Presence in over 25 countries around the globe

BSM Overview

Established in January 1989 by 17 Members Today: 155 Member-Companies

ShipowningShipmanagementCharteringShipping-related

2200 Ships - 49 Million Gross TonsAmong the largest Shipping Associations Globally!11 Companies have 236 VSAT Terminals on their vessels

Cyprus Shipping Chamber Overview

Telaccount Overseas – 25 years of Experience takes us forward

Established in 1988Accounting and Communication Service providersRecognised Accounting Authority by 36 major Flags StatesDistributor partners of 5 Land Earth Station Operators: Inmarsat Direct, Airbus Defence & Space, Otesat Maritel, Station 711 and SingtelInstallation and support of satellite terminals, Electronic Bridge Equipment, LRIT Conformance Test and Certification, SVDRs, ECDIS, Radars, etc.Certified with ISO 9001:2008www.telaccountoverseas.com

Telaccount Crew Welfare Platform

Internet for Crew News for Seafarers Roaming Free GSM Card

Demand of transferring high amounts of data to and from the vesselsInmarsat price increase for narrowband terminals over the last 2 years made it almost unbearable for the ship operators to retain this technology, making the switch to a broadband terminal the only optionIncreasing pressure on ship operators to provide a better overview about the vessel’s operation: cargo status and containers temperature, fleet tracking and reporting with real time updates, bunker fuel consumption, paperless vessel, etc.Safety and other regulatory requirements increasing the need for connectivity at sea with average data consumption growing rapidly New enterprise applications require higher bandwidth, VPN, Intranet, etc.Crew Welfare - the need to have internet Cafés onboard. Maritime Labour Convention (MLC) 2006 - regulatory focus on crew welfare and trainingVSAT taking a larger share of the market, supported by improving VSAT coverage and capacity supply and decreasing hardware prices

Changes in usage pattern drive the growth

Changes in the usage pattern ashore 5 years ago and now

91% of all people on earth have at least one mobile phone, 6.8 Bil subscriptions56% of people own a smart phone50% of mobile phone users, use mobile as their primary Internet source80% of time on mobile is spent inside apps72% of tablet owners purchase online from their tablets each weekInternet connections made via mobile devices in 2013 were 17% and expected to be 80% in 2025.Global mobile 4G connections in 2012 are 60 Mio and expected to be 992 Mio in 2017Number of Apps downloaded 81.5 Mio in 2013 and expected to be 310 Mio in 2016

Mobile Growth Statistics in 2013 and in the future

Internet in 2020

59% of travellers expect a “home away from home” experience when they are traveling.61% of travellers are expecting more from hotels with regards to amenities and services now that internet prices have decreased.68% of Ratings and 28% of Officers have no access to email onboard97% of Ratings and 86% of Officers onboard have no access to the internet for social media, email, web surfing, etc.While on leave and at home 39% of Ratings and 82% of Officers have daily access to the internet

Home away from Home

Home away from Home

EADS acquired Vizada for its Astrium division for $920 Mio. Astrium was renamed Airbus and now under sale for $1bil.Cobham acquired Thrane & Thrane for $445 MioWins Eutelsat acquired the German based DH InterkomSpeedCast acquired Pactel and Elektrikom Satellite ServicesPanasonic Avionics acquired majority stake in AeroMobile for $400 MioEutelsat acquired Asia-Pacific Satellite from GE Capital for $228 MioWasserstein buys Globecomm for $340 MioBroadband Satellite Services (BSS), an investment company based in the UK, acquired AND Group and Satcom GlobalInmarsat acquired Globewireless for $40 Mio. With this acquisition Inmarsat now has the majority of vessels with Airbus being the next and followed by the other DPs

Acquisitions

Challenges for the Maritime Industry

Improve Crew Welfare, add new services – Higher retention rateImprove operator satisfaction by providing greater connectivity Drive up usage from bandwidth services – social media, more voice calls, skype, etc.Establish and improve IT infrastructureImprove voice and data quality onboard

Who are the big players in the Maritime Satellite Communications?

Inmarsat Satellite history

Inmarsat Terminals

Source: Inmarsat Partner Conference, Istanbul, Nov. 2013

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35,040 33,854 32,375 30,838 29,810

25,728 26,734 26,436 25,256 24,321

5,667 16,005 25,823 33,845 39,696

133,834139,970

145,181 149,343 151,434

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Inmarsat Coverage Map

There are currently 40.000 FBB terminals installed onboard the vesselsKa-band frequencies provide more capacity than traditional C- and Ku-band frequencies.One network infrastructure and provider with seamless spot beam handovers6 satellite access station (SAS) sites: two per satellite regionI-5 satellite for IOR launched on 8th

December 2013Next two Satellites to be launched in 2015??Construction of fourth satellite under way

Global Xpress – Ka Band

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Inmarsat core network

Inmarsat Ka Band Coverage Map

Global Xpress 89 Spot Beams

One Operator, One Network, One Seamless Global ServiceGMDSS through F77 and SATCStill pay per MB except on XpressLinkPrice hiking every year during the last 3 yearsInmarsat “Monopoly” and new acquisition: iFusion instead of Infinity? Globe Email instead of Amos Connect? Will iFusion be the GX Service Enablement Platform (SEP) Smartbox? Is Inmarsat becoming a one stop shop? Is this what the industry want?Airbus Xchange, Setel SmartBox, W-Link Shipsat, Station 711 Start@Sea, Otesat S@tGate, Dualog will still be used with the GX Platform? What will be the prices for GX? Indication for 256/256kbps will be the same price as what we currently pay for 128/128kbps on XpressLink for ~$2500.

Inmarsat - Pro and Contras

Who are the big players in the Maritime Satellite Communications?

Iridium Open Port, Pilot and Extreme

Operational infrastructure is complete which will be operating the Iridium NEXT satellites from launch through the entire Iridium NEXT mission66 new satellites to be launched in 2015 by Boeing providing higher capacity of up to 1.5Mbits on L-Band and high-speed Ka-Band service of up to 8 Mbit/s.Expected Year of Operation 2016Iridium applied for GMDSS certification through the IMOIs Iridium going to be a real competitor for our industry in 2 years’ time?

Iridium NEXT

Maritime Shipping Traffic Worldwide

Who are the big players in the Maritime Satellite Communications?

VSAT C Band Coverage Map

VSAT Ku Band Coverage Map by Speedcast

VSAT C and Ku Band Coverage Map by KVH V11 Antenna

VSAT Ka Band – Europe & Med via Skylogic/Eutelsat

VSAT Ka Band – Regional EMEA AVANTI via Hylas 1+2

VSAT Ka Band – Middle East & Africa via YahSat

VSAT Ka Band – Inmarsat Global Xpress

VSAT Ka Band – ComparisonKA-SAT Avanti YahSat Global Xpress

ViaSat 2013 2013-14 2013-14 2015-16

Coverage AreaEurope & Mediterranean

AFG, S.Africa, UK, Syria

Middle-East & Africa Global

Modem ViaSat-PRO iDirect-X5 Hughes iDirect-GX7

NewsSpotter - YES CIR or SCPC - YES GO-Uplink - YES YESPro Service Tooway - NO Yah-Click - NO QoS for Streaming

Max Upstream <10Mbps <5Mbps <3Mbps <4~10 Mbps*

“Tooway” residential best-effort service with Contended-Shared internet“NewsSpotter” professional Streaming service with Dedicated CIR internet“Yah-Click” residential service with Contended-Shared internet“GO-Uplink” professional service with Dedicated CIR internet"CIR" Committed Information Rate - "SCPC" Single channel per carrier * Dish size contingent

Military & GovernmentMedia broadcasting & TV ChannelsTelecomsOil & Gas, strong in US, Canada, Russia, Australia and Latin AmericaMiningBanking / ATMs strong in Asia. India is leading the way with creative use of ATMs for country empowerment. Latin America is following in similar way.Large scale Enterprise Solutions for network and server infrastructure, software deployment and management, Operation and maintenance.Mobility

AeronauticalDisaster RecoveryMaritime

Key Markets

VSAT – Applicable for different market segmentsAlternative to terrestrial in underserved & un-served regionsSeamless service for email, audio, small form video and voice

Ideal for data heavy applications (e.g. Oil & Gas sector)Resilient connectivity (e.g. ATMs in Banking sector)Affordable internet alternative for SMEs vs. legacy VSAT

Govt. services (e.g. election, civil projects, disaster relief)M2M for remote control and monitoringSecurity and surveillance (e.g. border control)

Educational organizations (e.g. e-learning, networked schools)Humanitarian aid & healthcare (e.g. telemedicine, rural clinics)Economic development (e.g. agricultural support, e-finance)

Alternative to L-BandUnlimited dataHigher bandwidth

Non Governmental Organisations

Government

Business

Home

Maritime

Maritime VSAT Terminals in Service

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Maritime VSAT Terminals by segment – The largest spenders

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O&G Rigs

High throughput satellites is a classification for communications satellites that provide at least twice, though usually by a factor of 20 or more the total throughput of a classic Fixed satellite service for the same amount of allocated orbital spectrum thus significantly reducing cost-per-bit.Such satellites do provide more than 100 Gbit/s of capacity, which is more than 100 times the capacity offered by a conventional Ku-band satellites.HTS are primarily deployed to provide broadband Internet access service (point-to-point) to regions unserved or underserved by terrestrial technologies where they can deliver services comparable to terrestrial services in terms of pricing and bandwidth.Industry analysts at Northern Sky Research believe that high throughput satellites will supply at least 1.34 TBps of capacity by 2020 and thus will be a driving power for the global satellite backhaul market which is expected to triple in value – jumping from the 2012 annual revenue of about $800 million to $2.3 billion by 2021.

High throughput satellite - HTS

Anik F2 (July 2004)Thaicom 4 (August 2005)Spaceway-3 (August 2007)WINDS (February 2008)KA-SAT (December 2010)Yahsat Y1A (April 2011)ViaSat-1 (October 2011)Yahsat Y1B (April 2012)EchoStar XVII (July 2012)HYLAS 2 (July 2012)Astra 2E (July 2013)O3b satellite constellation (June 2013)Inmarsat Global Xpress constellation (2015)Intelsat Epic (2015)

List of high throughput satellites

Airbus Defence & Space and Marlink are “again” for sale. What does this mean for the maritime industry? Is it going to be a new name only?The maritime VSAT world is changing radically, soon. Are your Ku Band antennas Ka Band compatible? Can Iridium Next be the solution you are looking for? Choose the appropriate system for your needs.Take into consideration the new regulations that are coming into the market e.g. e-navigation in 2020. Will your ship to shore applications require higher bandwidth?Are you ready to go for higher bandwidth and for HTS? Is Crew Welfare a good reason to move to higher bandwidth and unlimited data?Ship operators need to educate themselves which technology they should use before they commit themselves in 2-3 years contracts.

Current and Future Considerations

Last month, the start of a new future ashore….

THANK YOU!

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