The VSAT Report 2003 - DSLReports .The VSAT Report 2003 VSAT INDUSTRY STATUS REPORT TO CLIENTS Version

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  • The VSAT Report

    2003

    VSAT INDUSTRY STATUS REPORT TO CLIENTS

    Version 2.3

    PROFILE & SUMMARY

    HUGHES NETWORK SYSTEMS

    This report has been prepared subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out, or otherwise circulated without the prior written consent of Communication Systems Limited. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by

    any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Communication Systems Limited.

    Permission is granted to utilise the information in this report for the purposes of

    analyst research reports on Hughes Network Systems and the VSAT Industry with the express permission of Hughes Network Systems. This copy is only intended to

    be used by the company specified by Hughes Network Systems.

    For more information contact: Simon Bull, Senior Consultant

    COMSYS (Communication Systems Limited) 42 Holywell Hill, St Albans, Herts, AL1 1BX, England

    Telephone: +44-1727-832288 Facsimile: +44-1727-810194

    Internet: simon@comsys.co.uk Web: www.comsys.co.uk

    Communication Systems Limited, 2004

    http://www.comsys.co.uk

  • comsys vsat report - 2003

    comsys

    Hughes presence casts a shadow over almost every player in the market .. Its

    dominance of the enterprise VSAT industry is remarkable in the fact that the company has been able to sustain its lead for over fifteen years

    Hughes Network Systems retains its position as the company to beat and the

    company that a competitor ignores at its peril

    Spaceway represents a step function increase over current generation VSAT services .. it is quite possible for it to achieve a virtual monopoly on the VSAT

    enterprise networking business in the US

    HNS has managed to walk the tightrope between innovation and proven reliability which service providers in the enterprise business require to the

    exclusion of almost anything else.

    Hughes is the only company which has been able to demonstrate sustained leadership in technology, market share and financial results in the VSAT

    business.

    The company continues to exhibit its trademark attributes aggressive pricing, strong marketing and sales, continuous innovation in product development with strong system, hardware and software engineering and this makes Hughes both impressive to the customer and scary to the competitors.

    For the potential purchaser, the fact that buying Hughes is rarely a mistake

    counts for a great deal.

  • comsys vsat report - 2003

    comsys

    table of contents 1. HNS The Company.................................................................................. 1

    1.1 Performance in 2001/2002............................................................................................ 1 1.2 Company Overview ...................................................................................................... 4

    2. VSAT Industry Backgrounder .................................................................. 8 2.1 The Beginnings ............................................................................................................. 8

    2.1.1 Regulation ............................................................................................................ 10 2.1.2 Industry Consolidation ......................................................................................... 11 2.1.3 Shared Services .................................................................................................... 12

    2.2 Recent Events.............................................................................................................. 13 2.2.1 TDMA System Developments ............................................................................. 14 2.2.2 DVB-RCS, DOCSIS and Broadband Access....................................................... 15

    2.3 Conclusion .................................................................................................................. 16

    3. VSAT Market Shares ............................................................................... 18 3.1 Hardware..................................................................................................................... 18

    3.1.1 Star Data TDMA .................................................................................................. 18 3.2 Services ....................................................................................................................... 24

    3.2.1 North America...................................................................................................... 24 3.2.2 International ......................................................................................................... 27

    4. VSAT Market Analysis ............................................................................ 33 5. HNS Hardware....................................................................................... 38

    5.1 Star Data Systems - PES & DIRECWAY .................................................................... 38 5.1.1 ISBN/PES............................................................................................................. 38 5.1.2 DIRECWAY DW2000......................................................................................... 42 5.1.3 DIRECWAY DW4000/DW6000 ......................................................................... 44

    5.2 Mesh/Star Telephony - TES-Quantum/Quantum-Direct ............................................ 49 5.2.1 Performance ......................................................................................................... 49 5.2.2 Mesh Product Analysis ........................................................................................ 51

    6. HNS VSAT Service Provision............................................................... 58 6.1 Hughes Network Systems - North American Services ............................................... 58

    6.1.1 Performance ......................................................................................................... 58 6.1.2 Enterprise Services............................................................................................... 59 6.1.3 DIRECWAY Consumer Services ........................................................................ 67 6.1.4 Spaceway.............................................................................................................. 71

    6.2 Hughes Network Systems Europe - European Services ............................................. 75 6.2.1 Performance ......................................................................................................... 75 6.2.2 Additional Information......................................................................................... 76

    6.3 Hughes Escorts - Indian Services ............................................................................... 82 6.3.1 Performance ......................................................................................................... 82 6.3.2 Additional Information......................................................................................... 83

    6.4 Hughes do Brasil - Latin American Services .............................................................. 89 6.5 Shanghai Hughes Network Systems - China Services................................................ 91

  • comsys vsat report - 2003

    comsys

    A1. Appendixes.............................................................................................. 93 A1.1. HNS Customer List ................................................................................................. 93

    A1.1.1. Major Interactive Star VSAT Customers.......................................................... 93 A1.1.2. Major Interactive Star Shared Hub VSAT Customers...................................... 95 A1.1.3. Major Mesh DAMA VSAT Customers ............................................................ 97 A1.1.4. RTS VSAT Services ......................................................................................... 98

    A2. Contact & Organisational Information ....................................................................... 99 A2.1.1 Investor Relations ............................................................................................. 99 A2.1.2 Press Relations.................................................................................................. 99 A2.1.3 Hardware Sales Contacts ................................................................................ 100 A2.1.4 Service Sales Contacts.................................................................................... 100

    list of figures Figure 1 - Operator Growth 1988-2002 ................................................................................... 12 Figure 2 - Interactive VSAT Systems - Vendor Historical Enterprise Shipped Share ............ 19 Figure 3 - Major Manufacturer World Ordered Terminal Market Share by Year ................... 21 Figure 4 - Manufacturer Unit Shipments on Sales, World Market Share 2001 and 2002 ....... 22 Figure 5 - Shipped Consumer VSAT Terminals by Vendor - Historical................................. 23 Figure 6 - Consumer VSAT Shipments and Market Share by Vendor by Year ...................... 23 Figure 7 - N American Operator Service Market Share .......................................................... 25 Figure 8 - US Consumer VSAT Growth (Thousands) ..........................................................