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1 Back to Contents June 2005 SATMAGAZINE.COM

Transcript of Back to Contents 1 - SatMagazine 14-17 , Singapore CommunicAsia 2005 Victor Wong Tel: (65) 6233 8662...

Page 1: Back to Contents 1 - SatMagazine 14-17 , Singapore CommunicAsia 2005 Victor Wong Tel: (65) 6233 8662 / Fax: (65) 6835 3029 Email: vw@sesallworld.com Website: June 14-17, Singapore

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June 2005 SATMAGAZINE.COM

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Vol. 2 No. 6, June 2005

TABLE OF CONTENTS

COVER STORY FEATURES

3 / Note from the Editor

4 / Calendar of Events

5 / Industry News

10 / Executives Moves

15 / New Products

Chris Forrester provides anupdate on the world’slargest satellite companyand its plans.

REGULAR DEPARTMENTS

By Chris Forrester

Waiting for the Calvary to Come Charging In

25 / SES GLOBAL: More $/E to Come

29 / The Asian Economy, the Oil and Gas Industry andSatellite Communications: What’s the Connection?

34 / Competition and Consolidation in the Satellite Launch Sector

VIEWPOINT

By Bruce Elbert

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By Peter I. Galace

19 / Asian Satellite Companies:

The Asian satellite market isenjoying modest growth.Increased military andgovernment demand is fuelingsome of the growth, but muchis anticipated from the launchof new broadband servicessuch as IPSTAR later this year.

Things are shaking up in theailing launch services sector.Boeing and Lockheedannounced this month a newalliance and the sector mightbe well on its road torecovery.

33 / Executive Spotlight:

Interview with AsiaSat

CEO Peter Jackson

39 / Country Profile: Brazil

42 / Stock Quotes / Advertisers’ Index

By Tom Van der Hayden

The booming oil and gasindustry in Asia opens up apotentially lucrative marketfor satellite communic-ations services.

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SATMAGAZINE.COM

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Satnews Publishers is the leadingprovider of information on theworldwide satellite industry. Foremore 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

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Copyright © 2005Satnews PublishersAll rights reserved.

EDITORIALSilvano PaynePublisher

Virgil LabradorManaging Editorand Editor, North America

Chris ForresterEditor, Europe, Middle Eastand Africa

Bernardo SchneidermanEditor, Latin America

Peter I. GalaceEditor, Asia-Pacific

John Puetz, Bruce ElbertDan Freyer, Howard GreenfieldContributing Writers,The Americas

David Hartshorn, Martin JarroldContributing Writers, Europe

The Asia-Pacific Market

NOTES FROM THE EDITOR

It’s that time of year again where the industry makes a beeline toSingapore for one of the major shows, CommunicAsia. Perhaps

this year CommunicAsia will have greater significance than inrecent years with a modestly recovering Asia-Pacific satellitemarket. Also CommunicAsia is a unique show as it is actuallyseveral shows in one with Broadcast Asia held concurrently.Apart from being the largest telecom show in Asia, it also offersa unique perspective on the convergence of telecoms, IT, theinternet and satellites. CommunicAsia has come a long way sinceit was cancelled two years ago due to the SARS epidemic.

I spent five years in Asia based in Singapore in the ’90s.With my extraordinary luck, I came in during the height of theboom in the early 90s and left just in the nick of time when theAsian recession hit in 1998. From all accounts, the Asia-Pacificmarket is making a huge comeback. Although all eyes are fixedon the highly-touted IPSTAR satellite to be launched later thisyear.

To help you understand this complex but growing market,our editor based in Manila, Peter Galace provides a good over-view in our cover story on the Asian situation--where theopportunities are and who are the major players. We also havean interview with AsiaSat CEO Peter Jackson and Tom van derHeyden writes about a vital niche market for satellite services inAsia in the oil and gas industry.

On another note, much is happening in the launch servicessector, with Boeing and Lockheed announcing that they areburying the hatchet and forming an alliance. Bruce Elbert helpsus navigate this important segment of the industry in his regularviewpoint article this month.

As the inndustry always looking for new opportunitiesand markets, the Asia-Pacific region--with its over 3 Billion peopleand covering almost half of the world’s area-- is certainly worthlooking at.

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JUNE/JULJUNE/JULJUNE/JULJUNE/JULJUNE/JULYYYYY

CALENDAR OF EVENTS

May 31-June 2, Cologne, Fair Grounds Congress Centrum Ost,GermanyANGA Cable Trade Fair for Cable, Satellite & MultimediaANGA Services GmbHTel: ++49 (0)228/96 21 890 / Fax: ++49 (0) 228/96 21 895E-mail: [email protected] /Website: www.angacable.de

May 31-June 2, Long Beach, CA, U.S.A.ISCe Conference and ExpoTel: +1-310-410-9191 / Fax: 1-310-410-9396Gina LermaE-mail: [email protected],Website: www.isce.com

May 31-June 3, Almaty, KazakhstanKITEL 2005- 12th Kazakhstan and Central Asian International Telecoms &Computer Technologies Exhibition- 1st Kazakhstan and Central Asian Satellite, Broadband,Wireless and Broadcasting Conference and ShowcaseElena Peredel’skaiaTel: + 44 (0)20 7596 5205/ 5000Fax: + 44 (0)20 7596 5208Email: [email protected]: www.ite-exhibitions.com/www.caspianworld.com/

June 6-7, Montreal, CanadaAIB Global Media Business ConferenceTel: +44-20-8297-3993 / Website: www.aib.org.uk

June 14-17, SingaporeCommunicAsia 2005Victor WongTel: (65) 6233 8662 / Fax: (65) 6835 3029Email: [email protected]: www.communicasia.com

June 14-17, SingaporeBroadcast Asia 2005Jackson YeohTel: (65) 6233 8633 / Fax: (65) 6835 3029Email: [email protected]: www.broadcast-asia.com

June 23-25, Agricenter International Memphis, TNSatellite Expo 2005Lee Gilliland1-877-SAT-SHOWE-mail: [email protected]

July 17-22, University of Surrey, UKIEE 20th Residential Course on SatelliteCommunication SystemsLee GillilandTel: +44 (0) 1438 765658 / Fax: +44 (0) 1438 767305E-mail: [email protected]

August 25-28, Beijing, ChinaBIRTV 2005Steve WalleyTel: 408-213-3000 / Fax: 408-213-3001Email: [email protected]: www.birtv.com

September 5-9, Paris, FranceWorld Satellite Business Week 2005Tel: +33 1 49 23 75 17 / Fax: +33 1 48 05 54 39E-mail: [email protected]: www.euroconsult-ec.com

September 8-12, Amsterdam, The NetherlandsIBC 2005Tel: +44 (0)20 7831 6909Fax: +44 (0)20 7242 8907Email: [email protected] / Website: http://www.ibc.org/

September 21-22, Sheraton Delfina, Santa Monica, California,USA2005 PTC Mid-Year SeminarTel: +1 808 941 3789Email: [email protected] / Website: www.my2005.org

September 27-28, Dubai, United Arab EmiratesMENASAT 2005 Satellite Summit to serve asprivate and public sector forumJustin BambridgeTel: +44(0)207 0894200 / Fax: +44(0)207 0894201Email: [email protected]: www.thecwcgroup.com

AAAAAUGUST / SEPTEMBERUGUST / SEPTEMBERUGUST / SEPTEMBERUGUST / SEPTEMBERUGUST / SEPTEMBER

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Boeing, Lockheed Martin to FormLaunch Services Joint Venture

CHICAGO and BETHESDA ̄ Boeing Co. and Lockheed MartinCorp. have agreed to create a joint venture that will combine theproduction, engineering, test and launch operations associatedwith U.S. government launches of Boeing Delta and LockheedMartin Atlas rockets.

The joint venture, named United Launch Alliance, will reduce thecost of meeting the critical national security and NASA expend-able launch vehicle needs of the United States, the two compa-nies said in a joint statement.

“It has become increasingly clear that an alliance of launchcapabilities is essential to meet the space communications,surveillance and reconnaissance needs of the 21st century, andto assure access to space,” said Lockheed Martin chairman,president and CEO Robert J. Stevens. “This combination willpermit our national customers to achieve their mission objectiveswhile reflecting current budget pressures and providing thegovernment with full cost visibility.”

“Both of our companies have developed versions of the EvolvedExpendable Launch Vehicle (EELV) in collaboration with the AirForce and have flown them successfully,” said Boeing president,CEO and chief financial officer James A. Bell. “By joiningtogether we are convinced that we can provide the customer withassured access to space at the lowest possible cost whileensuring enhanced reliability by eliminating duplicate infrastruc-ture and bringing experts from both companies to focus onmission assurance.”

United Launch Alliance will be structured as a 50-50 joint venturebetween Boeing and Lockheed Martin—combining servicescurrently provided separately by Boeing Integrated DefenseSystems’ Expendable Launch Systems division and by LockheedMartin’s Space Systems Company—for launches of eachcompany’s respective rockets. Based upon initial estimates,annual savings to the government resulting from the combinationare expected to be approximately $100 - $150 million.

Proton Launches DirecTV 8in Kazakhstan

BAIKONUR COSMODROME, Kazakhstan ̄ A Russian ProtonBreeze M launcher carrying the DirecTV 8 telecommunicationssatellite was launched from the Russia’s Baikonur space center in

Kazakhstan on May 22.

International Launch Servicessaid the Proton vehicle liftedoff at 11:59 p.m. local time (1:59p.m. EDT, 17:59 GMT). Itcontinued its climb throughspace for nine hours and 15minutes, after which time thesatellite separated from therocket into an elliptical geosyn-chronous transfer orbit.

Satellite controllers confirmedthat DirecTV 8 is now function-ing properly. Over the next tendays, ILS said, the satellite willbe maneuvered into a circulargeosynchronous orbit, 22,300miles (36,000 km) above theequator.

The launch had been post-poned one day due to a technical issue on the launch vehicle.The launch was originally scheduled for Saturday.

The DirecTV 8 satellite was built by Space Systems/Loral and isbased on its 1300 platform. Its loaded weight is 3,710 kilos andhas a designated service life of 15 years. It carries both Ku-bandand Ka-band payloads and its final operating position is 101degrees West longitude.

Jim Butterworth, senior vice president, Communication Systemsof DirecTV, Inc. said the spacecraft will play an important role instrengthening the company’s satellite fleet and the rollout of newservices for our more than 14.4 million customers. The satellitewill provide support for the expansion of DirecTV’s new digitaland high-definition services.

The Proton vehicle is built by Khrunichev State Research andProduction Space Center, and the Atlas is manufactured byLockheed Martin. DirecTV 8 is the second spacecraft ILS haslaunched for DirecTV on Proton. The previous launch wasDirecTV 5 in 2002. The Atlas vehicle also has launched twosatellites for DirecTV: DBS 2 and DirecTV 6, in 1994 and 1997,respectively.

INDUSTRY NEWS

Russia’s Proton vehiclecarrying DirecTV 8satellite lifts off at 11:59p.m., May 22, in BaikonurCosmodrome,Kazakhstan. (ILS photo)

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NASA’s NOAA-N Satellite LaunchedAfter 5 Attempts

SUNNYVALE, Calif. ̄ The NOAA-N spacecraft, a PolarOperational Environmental Satellite (POES), was finally launchedsuccessfully on May 20 at 3:22 a.m. PDT from Vandenberg AirForce Base, Calif. after five launch attempts.

Lockheed Martin Space Systems Company in Sunnyvaledesigned, built and tested the NOAA-N spacecraft.

NOAA-N is the latest in the Advanced TIROS-N (ATN) satelliteseries. All have been designed and built for the National Aero-nautics and Space Administration (NASA) by Lockheed Martinsince the first Television and Infrared Observational Satellite(TIROS) weather satellite launch in April 1960. NASA manages

the spacecraft’s launch and theNational Oceanic and AtmosphericAdministration (NOAA) operatesthe satellite once in space. Overmany years of service, the TIROSsatellites have earned the reputa-tion as the workhorses of the CivilSpace Earth-imaging inventory.

“We are very pleased to haveNOAA-N in orbit and healthy,”said Dan Hoffman, LockheedMartin TIROS Program Director.“The Lockheed Martin team hasbeen totally dedicated to provid-ing NASA with a series ofsatellites that extend NOAA’s

INDUSTRY NEWS

A Boeing Delta II rocketsuccessfully launchesthe latest satellite forthe National Oceanicand AtmosphericAdministration (NOAA).(Boeing photo)

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ability to provide uninterrupted environmental data products tousers.”

Following the launch and a comprehensive on-orbit verificationperiod that lasts 45 days, NASA will turn operational control ofthe satellite over to NOAA. NOAA will operate the satellite fromthe Satellite Operations Control Center in Suitland, MD, alongwith the nation’s other environmental satellites that it operates.

A constellation consists of two POES satellites circling the planetin nearly north-south orbits. As the Earth rotates, the entireglobe, one swath at a time rolls into view of the satellites’instruments. The satellites provide measurements of reflectedsolar and radiated thermal energy from land, sea, clouds and theatmosphere in the visible and infrared spectrum, atmosphericsoundings of temperature and humidity, measurements of globalsea surface temperature, aerosol distribution data, ozoneconcentration data, soil moisture data, and measurements oforbital proton and electron flux.

POES satellites collect data from remote platforms, relay searchand rescue data, and also provide direct broadcast of environ-mental data worldwide. Data from the spacecraft supports abroad range of environmental monitoring applications includingweather analysis and forecasting, climate research and predic-tion, ocean dynamics research, volcanic eruption monitoring andforest fire detection.

Air Force Selects Lockheed Martin forDevelopment of Space-based RadarAntenna Technology

DENVER, Colo. ̄ The U.S. Air Force has selected LockheedMartin to continue development of the Innovative Space BasedRadar Antenna Technology, known as ISAT. The contract, valued at $19.5 million, is for the next phase of theDefense Advanced Research Project Agency’s (DARPA) ISATproject, administrated by the Air Force Research Laboratory(AFRL), Lockheed said. The Air Force will continue developmentof the ISAT Flight Demonstration Experiment design over thenext 14 months, which will take it to the Critical Design Review(CDR) maturity level. Following the CDR, DARPA and the AirForce plan to select a contractor to build and deploy a scaleversion of the antenna for a one-year proof of technologyexperiment in low earth orbit.

Tom Scanlan, vice president of Special Programs at Lockheed

Martin Space Systems, said its novel design work during theprevious phase of the program, developed together with ourteammates at Harris Corp., has demonstrated the feasibility ofdeploying an extremely large, electronically scanning antenna inspace that will help enable global persistent surveillance.

The objective of the ISAT program is to create and demonstratetechnology for very long space-borne electronically scanningantenna. The demonstration experiment will use an antennaextending about 100 meters (325 feet) in length; the full scaleversion is designed to extend 300 meters.

Lockheed Martin said the full scale antenna payload would befolded up to about the size of a sport utility vehicle and placedinside a payload fairing atop the launch vehicle. Once deployedin space, the antenna’s length would be similar to the height ofthe Empire State Building. Such a lightweight and lengthyantenna could significantly increase global persistent surveil-lance coverage.

South Korea Negotiates withEC on Galileo

PARIS ̄ The EuropeanCommission said it is seekingEuropean Union’s Councilapproval to start negotiationson a cooperation agreementwith South Korea on thedevelopment of a Civil GlobalNavigation Satellite system(GNSS).

EU is currently developing Europe’s own global navigationsatellite system called Galileo that will provide a highly accurate,guaranteed global positioning service under civilian control. Itwill be inter-operable with America’s GPS and GLONASS, the twoother global satellite navigation systems.

“Galileo attracts the interest from countries all over the world.Negotiations with South Korea, the fourth economic power inAsia, represents a new step forward in the international coopera-tion for Galileo,” said Jacques Barrot, Vice-President of theCommission in charge of Transport.

He said the Commission intends to start the negotiationsimmediately after approval of the Council.

South Koreahas been leveraging space technology and its

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applications. It produces and consumes electronic goods andsystems for which satellite navigation brings competitiveadvantages. South Korea uses actively satellite navigationservices in areas such as transport, fleet management, scienceand geodesy.

Inmarsat, ViaSat to Develop MobileSatellite Solutions

LONDON ̄ Inmarsat is collaboratingwith ViaSat Inc. to developnew solutions based on theintegration of Inmarsat’s forthcomingBGAN mobile satellite service andViaSat’s AltaSec family of programmable,HAIPIS-compliant inline networkencryption products.

The two companies said they will exploreways to better serve US Governmentrequirements, with specific emphasis onthe Department of Defense. They willexamine the use of HAIPIS encryptiondevices, such as the NSA-certified KG-250, to secure the Inmarsat BGANnetwork.

BGAN, due for launch later in 2005, is thenew voice and 492kbps IP data servicethat will be available on Inmarsat’s next-generation satellites – the Inmarsat 4s –the first of which was launched in March.

Inmarsat and ViaSat have alreadysuccessfully proven the viability ofusing the ViaSat KG-250 Type 1 IPNetwork Encrpytor with Regional BGAN,Inmarsat’s 144kbps mobile data servicecurrently serving users in a satellitefootprint that covers Europe, the MiddleEast, Northern Africa and parts of Asia.

The joint development team will alsoensure that the planned multicast servicefor BGAN is optimized for supporting IPencryption, and specifically compatiblewith the High Assurance IP EquipmentInteroperability Specification, which isthe standard for securing US Government

networks.

Michael Butler, COO of Inmarsat, said mobile satellite communi-cations, when combined with NSA-certified Type 1 encryptiondevices, can be secured to the highest level. “With our BGAN service launch, planned for later in 2005, wewill offer customers unparalleled mobile broadband IP service,

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and it is essential that this capability can be similarly assured forgovernment users,” he said.

Aerojet Wins Contract to DevelopPropulsion System for Future SpaceCargo VehiclesSACRAMENTO, Calif. — Aerojet, a GenCorp Inc. has an-nounced that it won a multi-year contract from NASA’s Explora-tion Systems Mission Directorate to design, build, test anddeliver a 600kW Hall Thruster electric propulsion system topower future cargo transport vehicles to the Moon and Mars.Aerojet said the contract, including all options, is valued at $32.4million.

When the new system is delivered to NASA, Aerojet’s work willrepresent a 30-fold increase in total power and thrust delivered

over current state-of- the-art systems, which are approximately18kW. According to Aerojet, an additional benefit of thecompany’s Hall Thruster system is the significant reduction ofpropellant mass. The system will require approximately one-thirdthe propellant of equivalent propulsion systems. Industry studiespredict a vehicle mass savings of up to 30 metric tons.

“Aerojet is a world leader in the development of new electric andchemical propulsion technologies for space applications,” saidAerojet President Michael Martin. “This contract win strength-ens Aerojet’s position as NASA’s supplier of enabling propulsiontechnology and the propulsion provider of choice for the returnto the Moon and further exploration of Mars.”

Aerojet is teamed with Lockheed Martin Missiles and Space,NASA Glenn Research Center (GRC) and Colorado PowerElectronics, Inc. on the program. SM

INDUSTRY NEWS

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Orbital Names Dr. James G. Roche toBoard of Directors

DULLES, Va. ¯ Dr. James G.Roche, former secretary of theUnited States Air Force and long-time senior defense industry execu-tive, has been appointed to theOrbital Sciences Corp. board ofdirectors.

He becomes the company’s 13thboard member, joining a group ofnine other highly-qualified non-management directors drawn fromthe aerospace and defense industry,

government service, financial institutions and academia, plusthree members of Orbital’s executive management team who areon the board.

From 2001 to 2005, Dr. Roche served as the 20th secretary ofthe U.S. Air Force. As the civilian leader of the Air Force, hewas responsible for organizing, training and equipping theservice’s 700,000 Active Duty, Reserve, Guard and civilianpersonnel to be prepared to defend America’s security and ourvital interests around the world. As Air Force secretary, heoversaw an average annual budget in excess of $90 billion.

Dr. Roche worked at Northrop Grumman Corp. from 1984through 2000, becoming corporate vice president and presidentof its Electronic Sensors and Systems Sector (ESSS), a $3billion a year (annual revenues) operating unit. Earlier, heheaded Northrop’s Advanced Technology and DevelopmentCenter, its Business Strategy Group, and its Washington Analy-sis Center as the company’s Chief Strategist.

EADS Board to Approve FutureEADS Structure

AMSTERDAM ̄ The EADS Board of Directors will combine theelection of new CEOs, the approval of the company’s futurestructure, and the nominations for the Executive Committee intoone decision.

The European Aeronautic Defense and Space Co. (EADS)said the newly appointed board, headed by re-elected chairmenDr. Manfred Bischoff and Arnaud Lagardère, met on Wednesday

last week immediately after EADS’ Annual General Meeting ofShareholders in Amsterdam and agreed to decide on these majorstrategic issues for the future of EADS until June 1. Until then,chairmen Bischoff and Lagardère will temporarily take responsi-bility.

The designated CEOs Tom Enders (46) and Noël Forgeard (58)will propose to the EADS Board a new Executive Committee tolead the company’s business operations. Following this, Endersand Forgeard will be elected as CEOs of EADS and will assumetheir new positions for a five-year term. For the time being theyremain in their current roles: Enders is heading EADS’ Defenceand Security Systems Division, and Forgeard is heading Airbus.

Last year EADS generated revenues of € 31.8 billion and em-ployed a workforce of about 110,000.

CapRock Names Brandon KnicelyEngineering VP

HOUSTON ̄ CapRock Communications, a provider of globalsatellite services, has appointed Brandon Knicely as VicePresident of Global Engineering & Technology responsible formanaging the company’s global engineering, technology andsupport strategies.

“As CapRock continues to expand its global infrastructure andfurther penetrate new vertical markets, a clear technical vision isparamount,” said CapRock resident and COO Errol Olivier.“Brandon’s extensive engineering experience, along with hisstrategic market perspectives, makes him an excellent fit for thisimportant role.”

Knicely previously served as executive manager for a privatelyfunded technical consulting firm and vice president and chieftechnology officer for OnSite Access, a communications serviceprovider. He has held prior executive positions at NetworkedSystems, Consulting Group, Inc. and IBM. Knicely earned hisbachelor’s degree in Mechanical Engineering from West VirginiaUniversity.

Globalstar Appoints New GeneralManager for Europe Satellite Services

MILPITAS, Calif. ̄ Globalstar LLC has named Greg Tees asGeneral Manager of Globalstar Europe Satellite Services.

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Tees will oversee Globalstar’s European business operationsfrom Globalstar’s Dublin, Ireland office. He will work to sharpenGlobalstar’s European focus on marine markets and applications,expand Globalstar points of presence and launch remote asset-tracking applications.

“The addition of Greg Tees to the Globalstar team is a major partof the Globalstar commitment to reinvigorate and grow itsEuropean presence,” said Steven Bell, senior VP, InternationalSales, Marketing and Customer Care Operations.

EMS Appoints New FederalSales Director

MONTREAL ̄ EMS Satellite Networks (SatNet), a division ofEMS Technologies, Inc., has appointed Bill Hafner as Director of

Federal Sales, effective immediately. SatNet also has hiredconsulting firm Zelinger Associates Inc. as its sales and market-ing agent to the U.S. Government.

EMS said both appointments will help bolster the company’sgovernment sales capability in North America’s open-standard,two-way DVB-RCS hub and terminal market, in which EMS isthe market share leader. Last month the Defense InformationSystems Agency within the U.S. Department of Defense (DoD)selected EMS to supply a DVB-RCS system.

Don Osborne, senior vice president and general manager, said allbranches of the U.S. government, including DoD, need open-standard, commercial off-the-shelf (COTS) technologies to helpreduce long-term procurement costs for their IT projects. “Bill’sappointment, in conjunction with our new relationship withZelinger Associates, will help us pursue government IT opportu-

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nities where DVB-RCS technology can provide strategic advan-tage,” he said.

Hafner joined EMS Technologies in 1999, most recently servingas a product director in EMS Satellite Networks. He brings morethan 20 years of experience in the satellite communicationsmarket. As an engineer involved in product development as wellas sales, his knowledge of EMS Satellite Networks’ product lineand his understanding of customers’ needs and applications willbe a strong contribution to this effort.

Zelinger Associates, based in Washington, D.C., provides arange of consulting, marketing, sales, and business-developmentexpertise that matches commercial IT companies to federalgovernment needs. Zelinger has worked with a variety ofsoftware and hardware manufacturers and systems integrators totarget federal and state government IT opportunities.

Lockheed Board Elects Robert J.Stevens as Chairman

BETHESDA, MD, ̄ The Lockheed MartinCorp. board of directors has elected RobertJ. Stevens as chairman of the board,effective April 29, 2005.

Lockheed said the election followed theannouncement on Nov. 23, 2004 of VanceCoffman’s intention to retire as chairman ofthe board after 37 years with the company,including seven years as CEO.

Stevens assumes his new duties as chairman of the board, whileretaining his position as president and CEO.

Stevens has held a variety of increasingly responsible executivepositions including chief operating officer, chief financial officer,and head of Strategic Planning through a career that has includedexperience in program management, finance, manufacturing, andoperations.

Stevens is a Fellow of the American Astronautical Society, and anAssociate Fellow of the American Institute of Aeronautics andAstronautics. He serves on the International Advisory Board ofthe British-American Business Council, and on the ExecutiveCommittee of the Aerospace Industries Association.

He is a member of the Council on Foreign Relations, is presidingdirector of the Monsanto Co., and a member of the board of

directors of the Congressional Medal of Honor Foundation.During 2001 and 2002, Stevens also served on President Bush’sCommission to Examine the Future of the United States Aero-space Industry.

ViaSat Names Harvey White toBoard of Directors

CARLSBAD, Calif. ̄ ViaSatInc. has appointed Harvey P.White to its board of directors.White is chairman of (SHW)2

Enterprises, an independent business development and consult-ing firm which he established in June 2004. Previously, White waschairman and CEO of Leap Wireless International, Inc.

ViaSat said White will stand for election to the ViaSat board at thecompany’s 2005 annual meeting of stockholders. The ViaSatboard now totals seven members, six of whom are independentdirectors.

Prior to Leap Wireless, White was a co-founder and a member ofthe board of directors of QUALCOMM from its inception in July1985. He was executive vice president and COO until appointedas president and COO in 1992. As COO, he was responsible forthe day-to-day operations of QUALCOMM as it grew to be aFortune 500 telecom technology and manufacturing company.

He left QUALCOMM to head Leap Wireless, which was spun offas an independent company in September 1998. Under White’sdirection, Leap Wireless’ Cricket service grew to be one of the 10largest U.S. carriers by pioneering the “all you can use for a setprice” concept for wireless service.

NorsatNames William J Coyne III as New CEO; George King Named NewChairman of the Board

BURNABY, British Columbia, Canada ̄ Norsat InternationalInc. has announced that it has appointed William J. Coyne III as President and Chief Executive Officer effectiveimmediately.

Coyne, a former Sprint and Cable & Wireless executive, succeeds Cameron Hunter who resigned last month. Meanwhile, Norsat alsonamed George King as the new Chairman of the Board, who succeeds

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EXECUTIVE MOVES

Ken Crump, who also resigned.

Coyne was previously the vice president& general manager at Sprint Communi-cations Northeast Division, one of the largest providers of telecom services in the United States. Coyne also worked with a number of smaller start-up firms.

Coyne has a B.A. from St. Joseph's Univeristy in Philadelphia where he wona presidential scholarship.

-

.

.

The company also appointed Dan Dixon to the board of direc-tors. With over 20 years of experience in senior management, govern-ment and public affairs, business development, private andpublic financing, international business, investor relations andlaw, Dixon brings to Norsat considerable multi-disciplinedexpertise. Dixon’s distinguished career includes serving as afounding director of Cambridge Partners, LLC; as the Interna-tional Counsel, Investment Advisor, and General SecuritiesPrincipal for the Seattle-based law firm Foster Pepper &Shefelman; and as the head of a subsidiary company of FosterPepper & Shefelman.

.

Cameron Hunter

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Coyne also served as Chief Operating Officer at Cable and Wireless, one of the largest network operators in the world with operations spanning Europe,Asia and the Americas. Coyne was instrumental in spearheadingCable and Wireless’s worldwide expansion as a member of theGlobal Marketing Council.

Coyne also has worked with or counseled a number of smaller,entrepreneurial companies to help drive profitable revenuegrowth and complete their IPOs. These include a number of pre-IPO companies in the telecommunications, wireless messagingand cellular industries.

ILC Adds Three Execs to ManagementTeam

ATLANTA ̄ ILC has added newleadership in the Sales, Marketing andOperations departments with theappointment of Renee Luke asDirector of Operations, Scott Prangeras vice president of Worldwide Sales,

and Darrek Porter as director of marketing.

Renee Luke brings more than 20 years of IT management andnew business leadership to ILC. Formerly a director at AT&T,Luke received the company’s coveted award — the AT&TLeader’s Council Award — honoring her contributions ingrowing AT&T’s server and application management business.Luke began her career as a programmer and quickly rose tonumerous leadership roles on application development, designand operations teams that provided business applicationsupport, electronic messaging, and networked communications.

Scott Pranger is a senior executive with more than 18 years ofinformation technology, sales, marketing and executive manage-ment experience. Prior to ILC, Pranger led company operationsand organizational strategy for financial services solutionsprovider Magnet Communications. Pranger held previous salesand management positions with Brokat Technologies AG, S2Systems, Inc. and Stratus Computer, Inc.

Darrek Porter’s marketing expertise will stimulate ILC’s internaland external communications programs to achieve bottom-lineresults. A proven leader in directing strategic marketing initiativesfor high-growth organizations in diverse industries, Porter mostrecently served as vice president of marketing and communica-tions for network management company Oculan. Prior to Oculan,

SM

Globalstar Appoints Wireless VeteranGreg Tees as General Manager,Globalstar Europe Satellite Services

MILPITAS, Calif.¯ Globalstar LLC has named Greg TeesGeneral Manager for Europe Satellite Services.

Tees will oversee Globalstar’s European business operationsfrom Globalstar’s Dublin, Ireland office. In his new capacity, Teeswill work to sharpen Globalstar’s European focus on marinemarkets and applications, expand Globalstar points of presenceand launch remote asset-tracking applications.

“The addition of Greg Tees to the Globalstar team is a major partof the Globalstar commitment to reinvigorate and grow itsEuropean presence,” said Steven Bell, senior VP, InternationalSales, Marketing and Customer Care Operations.

Eagle Broadband Appoints AlbertMcCabe as VP of Set-Top Box Sales

HOUSTON, — Eagle Broadband has appointed technologyindustry sales veteran Albert McCabe, formerly with Softier,Texas Instruments and IBM, to the position of Vice President ofSales, Set-Top Boxes, effective May 23, 2005.

Eagle said McCabe will assume worldwide sales responsibility forEagle’s complete line of standard and high definition Media ProIP set-top boxes for the hospitality, residential and enterprisemarkets. McCabe brings more than 20 years of senior sales andmarketing management experience and a proven track record withdirect and channel sales of systems, communications andmultimedia technology and services to a wide range of marketsincluding hospitality, telecommunications, OEM/ODM andenterprise.

McCabe joins Eagle from multimedia and set-top box providerSoftier, Inc., where he led domestic and international sales as VicePresident of Worldwide Sales. Prior to joining Softier, he servedas Executive Vice President of Sales and Marketing for AccelentSystems Inc., a leading provider of system software and tools forthe PDA and Smartphone market. Prior to Accelent, McCabe wasVice President Worldwide Sales for Linux software and develop-ment tools provider LynuxWorks, Inc.

Porter held senior management positions with Atipa LinuxSolutions, Missouri Gas Energy and the U.S. Congress.

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NEW PRODUCTS

New Global IP VSATPhone forService Providers

Telematics Business Consultants (TBC)with Viper Networks are launching thisquarter a new Global IP VSAT Phonesolution for satellite service providers andcarriers. This USB Global Phone providesmore options for clients that need to callthe PSTN from IP VSAT terminalsanywhere in the world.

The main advantages of this VSATPhone are

- Global IP roaming with no charge andnumber Global Portability with voicequality.

- Pre-Paid Services with rates startingwith 1 cent per min. (average 3 cts permin. main cities in the world)

- Calls between VIPERHONES is nocharge

- Receive calls from a US or Europeannumbers no charge

- Activation and account set up viaInternet browser in 3 minutes anywherein the world

- IP Global VSAT Phone wholesale price

New Global IP VSAT Phonefor Service ProviderHOW IT WORKS

start with less than US$ 40.00 per unit(Volume Discount)

- Pay only for the minutes used. Nomonthly fees, contracts or hiddencharges.

Minimum System Requirements:- PC Windows 98 or XP- Use only 8 Kbps or equivalent of 12

Kbps in space segment base in tests ofVSAT IP Platforms

- Easy to use and Install: Customer needsonly to plug in phone to PC via sup-plied USB cable and download dialersoftware from VIPER website.

Additional information is available bysending emails at [email protected] via phone at + 1-949-552-6871.

Americom GovernmentServices UnveilsSmartPoint System

WASHINGTON & PRINCETON, N.J.— Americom Government Services, Inc.(AGS), a wholly-owned subsidiary of SESAmericom, launched on Tuesday theSmartPoint system to provide mobile highspeed Internet, data, voice and video viasatellite service.

Orbimage IntroducesMasterCast in Version6.0 of Its OrbMapSoftware DULLES, Va. — Orbimage Inc. hasannounced the release of Version 6 of itsOrbMap software, featuring MasterCast.

The company said Orbimage’s OrbMapsoftware and SeaStar Fisheries Informa-

Satnews Publishers Launches theFirst Book Covering the History of theSatellite Communications Industry

Satnews Publishers has just released the first book covering the entire history ofthe commercial communications satellite industry. The book entitled “HeavensFill With Commerce: A Brief History of the Communications Satellite Industry”by Virgil S. Labrador and Peter I. Galace. The 216 page book, filled with photos,illustrations and graphics, covers all the major events that shaped the industryfrom Sputnik, to the formation of Intelsat and the road to commercialization andprivatization of the industry that continues to the present. For more information orto order a copy go to www.satnews.com/products/historybook.htm

The SmartPoint system, AGS said, is anintegral part of the CSS Proof of Conceptprogram, which has demonstrated themission critical role that deployable verysmall aperture terminals (VSATs) couldplay for theater based mobile logistics.

“From deployed forces to logisticaloperations, effective command andcontrol operations require reliable andsecure connectivity delivered any place atany time without time-consuming deploy-ment,” said David Fields, senior directorof Technical Operations at AGS. “TheSmartPoint system was created with thenon-technical user in mind to achieve asimple method of deployment andoperation without special tools or ad-vance training.”

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tion Service support commercial fishingcaptains worldwide by combining theworld’s highest quality plankton data fromOrbimage’s OrbView-2 satellite with othermeteorological and oceanographic data.Orbimage processes and transmits thederived information products, in the formof digital maps, to fishing vessels world-wide, which the captains then view andmanipulate using the OrbMap software ontheir vessel’s personal computer.

By using the SeaStar and OrbMapsoftware, fishing captains can betterdetermine where to search for fish,minimizing search time and reducing highvessel operating and fuel costs, Orbimagesaid.

MasterCast is an all-new interactive toolwithin the OrbMap software designed toallow fishing masters and captains tohighlight the best fishing grounds basedon their own specified criteria.

Parvus Targets OnboardComputing ApplicationsRequiring WorldwideGSM/GPRS Roamingand Precise GPSPositioning

SALT LAKE CITY — Parvus Corp. hasannounced it will soon release theOrbiTrak GSM, a new PC/104module for intelligent vehicleand airborne computingsystems requiring worldwideGSM/GPRS roaming and GPSpositioning. An ideal solution for de-

manding mobile communica-tions and global positioningapplications (bus, rail, ship, air),the OrbiTrak GSM combineswireless tri-band GSM/GPRSconnectivity with a low-power

12-channel parallel-tracking GPS receiverin a single, highly integrated embeddedboard, according to Parvus. This compact(3.550" x 3.775"), hardened telematicsmodule is built to resist high mechanicalstress, thermal shock and extended

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temperature operation.

Supporting full interrupt-sharing for all itsserial ports, the board includes a 4-channel 16C550 UART with two RS-232serial ports free for other devices. Boardconfiguration is done using FlexiSetEEPROM board settings, which eliminatesbanks of interrupts and base addressjumpers, according to Parvus.

A 16-bit-wide programmable digital I/O isprovided to interface with other low-power digital devices, along with twoautomotive-level digital inputs to connectto any 12V or 24V digital signals.

Hughes Certifies ArelSpotlight ConferencingSolution for DirecWayBroadband SatelliteService

ATLANTA — Arel Communications andSoftware has announced that HughesNetwork Systems, LLC (HNS) has certifiedArel’s Spotlight conferencing solution tooperate over its DirecWay broadbandsatellite service.

Areal said the certification means thatenterprise customers can use Arel’sSpotlight conferencing solution as avalue-added application for live and on-

demand interactive distance learning overthe DirecWay service.

Ken Cohen, assistant vice president atHNS said its enterprise customers can useArel’s network multicast capabilities tomanage delivery of video-based trainingto create a competitive advantage. “Bysuccessfully completing testing of itsSpotlight conferencing product in ourcertification program, Arel has assured itscustomers of a high-quality trainingexperience over our DirecWay satelliteservice,” he continued.

Arel Spotlight’s full-featured e-learningconferencing solution addresses allaspects of an organization’s trainingneeds and challenges, Arel said. Geo-

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NEW PRODUCTS

graphically dispersed users can now worktogether in groups, attend webinars andpanel discussions, participate in trainingcourses, and have one-on-one meetingswith customers or colleagues, fromvirtually anywhere using desktop sys-tems, laptops or even handheld wirelessdevices.

Rockwell CollinsCompletes Tests withAirCell Satcom

GENEVA, Switzerland — Rockwell Collinshas successfully tested AirCell’s ST 3100Iridium Satellite Communication System asa qualified data channel for the Airshow4000 In-Flight Information System. “The success of these tests means that

Rockwell Collins’ custom-ers have additional choiceand flexibility in selectinga global data serviceprovider for Airshow4000,” said Tim Rayl,senior director, AirshowSystems for RockwellCollins. Available with theAirshow Network andGenesys systems since2003, the AirCell ST3100Rev. K phone system is now confirmed tobe available for the Airshow 4000, deliver-ing custom news, financial, sports, andweather data to the aircraft. AirCell’sIridium-based Satcom provides globalaccess to the Rockwell Collins contentdatabases located within the Member

Services Center inTustin, Calif.

Airshow 4000 iscapable of supportingvarious multimediaapplications, video,audio, text andgraphics, which aredisplayed on theaircraft’s cabin andflight deck monitors,according to

Rockwell. Real-time flight information fromthe aircraft’s long-range navigation and airdata systems is processed by the systemand the appropriate maps

.

● RF over Fiber Transmission atDistances of over 60 Km

● Ultra Low Phase Noise Using Direct Modulation● Optional Weatherized Outdoor Units● Maximum Bandwidth from 10 MHz

✴ Earth Stations✴ Teleports✴ CATV Headends✴ VSATS✴ Broadcast Studios

Please contact us at: Foxcom, Tel: 609.514.1800, Fax: 609.514.1811Email: [email protected] www.foxcom.com

For more than 10 years Foxcom has provided Fiber OpticInterfacility Links to satellite service providers, militaries, andbroadcasters worldwide. With a wide range of products andaccessories covering up to 15 GHz of bandwidth, Foxcom’sIFLs set the market standard for high performance andreliability.

✴ GPS✴ Military✴ TT&C✴ IP Gateways

SM

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COVER STORY

On a wasteland strewn withvictims of transponderovercapacity and the Little

LEO fiasco, that hardy band ofsurvivors from the battered commer-cial satellite industry hunkers downfor another battle against “TheHorde.”

They don’t have long to wait.Assaulting them from all directionsare their old adversaries: cheapfiber; terrestrial bandwidth oversup-ply; savvy cable mass marketing;regulatory hurdles; rain attenuation.

The battle is vicious. But thesatelliteers are on the losing end.They give ground. But just when allseems lost, a shout of hope abovethe tumult of imminent defeat:

“Here comes the cavalry,boys! We’re saved!” A wild yell ofrelief goes up.

And charging over the horizonin the nick of time is the cavalry (akathe U.S. Department of Defense), scatter-ing The Horde and dispensing multi-million dollar transponder leases thatbreathe life—and revenues—back into thewounded commercial satellite industry.

Pardon the old-fashioned melodramabut it’s a case of life imitating art intoday’s satellite communications industry.Right now, no one doubts that US militaryspending for its war on terror is the largestsingle factor in the rebound of thecommercial satellite industry as a whole.

For non-US players, however, thebounty from the military-led recoveryhasn’t been the flood tide they expected.

Waiting for the Cavalry to Come ChargingAsian satellite companies:

And Asia’s satellite operators aren’traking in tons of dollars from US defensespending. They’ve had to rely on theirbread and butter revenue generators—broadcasting and telecommunications—totide them over 2004, which is widelydismissed as another year of flat growth.

Northern Sky Research concurs andsaid the industry grew modestly in 2004 inboth supply and demand for satellitecapacity.

“The region as a whole exhibited nomajor developments in terms of applica-tions that drove revenue streams abovehistorical levels within say a three-year

period. The major satelliteplayers with the largest fleetscontinued to account for thebulk of demand in the videomarkets while the smallerplayers continued to tapniche markets in terms ofapplications and regions orcountries they serviced,” saidJose del Rosario, senioranalyst & regional director ofAsia-Pacific.

He noted that the bread-and-butter for the industryremained the video marketswith growth in that specificsector largely dominatingdemand and revenue growthfor the entire Asia Pacificregion.

“The price competitionthat has been widely talkedabout has really been of littleconsequence since the videomarkets that tend to exhibitlong-term contracting with

satellite operators, have exhibited stabletransponder pricing. Video customers areeven paying a premium over the regionalprice average in order to achieve long termreliability and stability.”

As for 2005, Northern Sky sees theyear as just another year. Del Rosariobelieves 2005 should be business as usualdue to the relatively stable video marketswith some potential growth in terms ofequity interest. He pointed to ambitiousprograms that should come on line in2005, including the long delayed launch ofthe iPSTAR-1 Broadband Internet Satelliteand Japan’s MBSat beginning service thisyear.

By Peter I. Galace

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“MBSat inparticular looks to be apromising service giventhe installed base ofsubscribers it recordedwithin the first monthsof service in SouthKorea. WhetherMBSat’s success can bereplicated outside theJapanese and Koreanmarkets remains to beseen.”

On the other hand, iPSTAR will bewatched closely from both the technicalside as well as market acceptance in thebroadband space. The much antici-pated service launch has generated a

lot of interest as well asimpatience in the regiongiven the delays thatprogram has experienced.

“Should iPSTARand MBSat succeed in2005, private equitywhich has had a tremen-dous influence in theUnited States and tosome extent in Europe,will begin to play a moreactive role in Asia in the

coming years. Then we could begin to seesome real changes and impact in ourregion,” del Rosario said.

Asia, however, will remain a market

dominated by video. Del Rosario empha-sized that whoever controls the videomarkets, controls the Asian satellitemarket.

“Unlike the North American marketwhere government/military use hasbenefited the industry in very profoundways, there is no new application orcustomer segment that we at NorthernSky Research see will heavily impact themarketplace at least for 2005.”

Regional Players

Continuing to tap into broadcastingand telecoms seems to be the way to gofor a number of Asia’s leading satellitecompanies.

Northern Sky’s Josedel Rosario

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Asia Satellite Telecommunications(AsiaSat), a leading regional satelliteoperator and an affiliate of SES Global,reported double-digit revenue growth in2004, a rise in net profit and overallsatellite utilization rate. Turnoveramounted to US$129 million in 2004compared to $115 million in 2003, a 12%increase. Profit improved 2% to US$55million as against US$54 million in 2003.

AsiaSat, however, said revenuegrowth would have been flat were it notfor the early termination of a transponderutilization agreement. It expects 2005 to bemarked by limited growth but will see theintroduction of some new channels andservices. It expects transponder prices tostabilize since customers are beginning torealize that certain satellites are better atproviding what they require than others.

SingTel Optus, an affiliate ofSingapore Telecommunications Ltd(SingTel), reported a rise in satelliterevenue by 4.8% to $42 million for its yearending March 31, 2005. It operates foursatellites with two on order.

Shin Satellite Public Company Ltd(ShinSat) earned revenues of $31 millionfor the first quarter of 2005 and net profitof $5 million. The company plans to spendsome $100 million to replace its Thaicom 1and Thaicom 2 satellites that are to retirein 2008 and 2009. But of more interest tothe industry is ShinSat’s iPSTAR-1broadband Internet satellite that, ifcommercially successful, might usher inthe era of Ka-band satellites.

Another of Asia’s top 10 satellitecompanies, APT Satellite Company Ltd,however, reported a loss of $36 millioncompared to a loss of $39 million in 2003because of transponder overcapacity andweak demand. It saw no signs of tran-sponder market improvement because ofweak demand.

Japan’s JSAT Corporation, Asia’slargest satellite company in revenues,reported lower revenues of $196 million forthe six months ending September 2004compared to $202 million for the sameperiod in 2003 due partly to the cancella-tion or expiration of transponder con-tracts. JSAT, however, said the 2004revenue was higher than forecast. Net

income dropped to $248 million from $272million.

The varying fortunes of five ofAsia’s top 10 satellite companies tend toreflect the results of a weak marketburdened by excessive C- and Ku- bandtransponder capacity. About three-fourthsof the market is broadcast where demandremains flat but demand for telecommuni-

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cations, especially mobile communica-tions, is expected to take up the slack leftby the aging of the broadcast market.

Clearly the cavalry (or satellitetelecommunications) hasn’t come to therescue of Asian satellite companies—yet.But this situation may change since USmilitary operations expected to continue inIraq and Afghanistan for the rest of thedecade.

Iraq and Afghanistan Wars DriveSatellite Demand

International satellite operators,however, are raking it in from the wars inIraq and Afghanistan and the consequentmassive satellite bandwidth grab by theU.S. DoD to support ongoing militaryoperations. Northern Sky Research saysworld satellite communications revenuegrowth is being driven largely by U.S.military demand and will not be satisfiedbefore 2020.

The continuing U.S. presence in theMiddle East and the demands of homelandsecurity should continue to drive demandand sustain satellite industry revenuegrowth. Northern Sky believes thatmilitary use will generate 46% of allrevenues from 2002 to 2007 as against39% for commercial satellites and 15% for

Thailand’s Shin Satellite iPSTAR broad-band satellite is to be launched in July

science satellites.

That’s goodnews for the commer-cial satellite industry—and for any industrywith a similar lock onshort-term profitability.Global satellitecompanies operating inAsia such as Intelsatand Inmarsat arecashing in on the hugemilitary appetite forsatellite bandwidth.

The suddenly upbeatoutlook for the worldwidesatellite services industrywas evident at the 3rd annualInternational Satellite andCommunications Conferenceand Expo (ISCe) in 2004.

Respondents to asurvey conducted during theconference confirmed thatnew business growth overthe past 12 months camefrom the U.S. military andthat the greatest revenuegrowth over the next threeyears is expected to comefrom military services.

Of the respondents,69% predicted more invest-ments over the next threeyears. Revenue growth isexpected to come fromsatellite services, followedby ground equipmentmanufacturing and satellitemanufacturing.

In satellite services, thegrowth leader is expected tobe broadband, along withdirect-to-home (DTH)television, satellite radio andmobile satellite services.India and China continue to

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dominate the cable and satellite market bytheir sheer strength of numbers.

Asian research firm Media PartnersAsia Ltd (MPA) said the leading cable andsatellite markets according to subscribernumbers were China (100 million subscrib-ers); India (48 million); Korea (12 million);Japan (8 million) and Taiwan (5 million).

DTH Subscribers Rising

As for DTH, subscribers rose 19% in2004 to reach 8.4 million. MPA said thecontinued penetration of subscription-based TV services and growingviewership of cable and satellite TVchannels will increase the market for payTV advertising.

In 2004, the leading DTH marketswere Japan (3.3 million subscribers), SouthKorea (1.6 million). Malaysia (1.5 million),Australia (890,000) and New Zealand(490,000). And it’s not only in Asia whereDTH is king. Research firm Euroconsultsays 13 of the 45 geostationary satellitesdue to launch in 2005 and 2006 arededicated to DTH, digital radio broadcast-

with its third-generation satellites.

Northern Sky Research projectstransponder demand for broadband,narrowband VSAT and other services willmore than double in the next five yearsacross all of East Asia including Chinaand India. The dominant video servicessector, which surpasses all others com-bined, including telephony and carrierservices in the region, is seen expandingby 40%.

India’s cable and satellite growth isalso being driven by that uniquely Indian mo-vie industry phenomenon called “Bollywood.”

Analysts believe 25% of worldentertainment is going to be generatedfrom Asia, with most of this coming fromIndia and China. India’s entertainmentindustry is expected to grow 18% andChina at 25%. Broadband will be the keydriver for Asia while DTH will be a majorgrowth driver for India. It is estimated thatcable and satellite reaches more than 15million homes in India. India’s regulatoryenvironment, however, is cause forconcern but is seen as vital to the growthof the satellite and entertainment indus-tries if changed for the better.

For Asia, Northern Sky is especiallyupbeat about the prospects for satellitebroadband, saying that revenues of $2.7billion in 2004 were to grow to $4 billion in2009. Driving this 7.8% CAGR will bebroadband Internet access via satellite. Itbelieves that satellite Internet accessmight well become the satellite industry’sfirst truly mass market service capable ofcompeting against DSL on price.

But the future of satellite andInternet broadband hinges on the successof Ka-band satellites. Of the threeplanned—Spaceway, WildBlue andiPSTAR-1—only the latter two remain inthe running.

But the attention of world telecomsis now focused on Shin Satellite plc

ing, and fixed/mobile broadbandservices.

MPAestimates thatvideo serviceswill provide thebulk of revenuesfor the broadbandpay TV industry.It projects totalvideo revenues(subscription andadvertising) asrising from $16billion in 2004 tosome $30 billionin 2010 and 40billion in 2015. Inthe long term,video services are

seen accounting for almost 90% ofbroadband pay TV industry revenues.

In addition, new commercial satelliteservices such as DMB (Digital MultimediaBroadcasting) services via satellite andbroadband via satellite hold the brightestpromise for Asia’s satellite companies.Satellite enabled CANs or captive audi-ence networks (also known as digitalsignage) are seen as a prime driver offuture satellite growth in Asia. GlobeCast,a subsidiary of France Telecom, is alreadymaking a play for CANs in Asia.

By 2015, MPA estimates that theleading revenue markets will be Japan ($15billion), China ($11 billion) and India ($11billion). By 2015 also, the leading digitalcable and satellite markets in terms of totalsubscribers will be Japan (21 million),China (16 million) and India (15 million).

All three countries, incidentally, areAsia’s three leading satellite powers.China’s satellite industry is a maturebusiness, with a history dating back to the1970s. Today, China is poised for stablegrowth and is looking to leapfrog ahead

India’s cable and satellite growth is also driven by thatuniquely Indian phenomenon called “Bollywood.”

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Peter I. Galace iseditorial director ofSatnewsPublishers. He haswritten extensivelyon thetelecommunicationsdevelopments inAsia for numerouspublications. Currently he isassociate editor of Satnews Dailyand Weekly editions, and art andproduction editor of the InternationalSatellite Directory and the monthly e-zine, Satmagazine. He can be reachedat [email protected]

(ShinSat) multi-million dollar baby: the$400 million iPSTAR-1 Broadband InternetSatellite. To launch this year after a two-year delay, iPSTAR holds the promise oflow-cost, high-speed satellite broadbandservice for the Asia/Pacific. It will alsomake two-way broadband servicesaccessible in Asia.

The market success of iPSTAR willdeliver a powerful message that Ka-bandis no longer a non-starter but is a servicecapable of significantly changing thefortunes of the commercial satelliteindustry. The market is there: NorthernSky projects 1.7 million broadbandsatellite subscribers by 2009 from 843,000

in 2004. Serving that market, however, willbe a tall order for an as yet unproventechnology.

Broadcasting will continue todominate Asia’s satellite industry until thenext decade. But telecommunications isbound to increase in importance, espe-cially with the continuation of the US-ledwar on terror.

Satellite telecommunications haslong played second fiddle to broadcast-ing. It rise in importance—which is boundto occur—may yet give Asia’s satelliteindustry two firm legs to stand on.

the studios via satellite.

Real-time news and sports events will be delivered to 3Gmobile or other handheld devices and the distribution of thiscontent will be via satellite to the cell sites. AsiaSat says it isalready carrying some occasional HD traffic and content formobile devices.

In urban areas, AsiaSat sees DST or ADSL provided overthe telephone network as the bulk provider with satelliteservice serving enterprise customers that require largecapacity links and they do not have good quality telephoneservice.

In rural or outlying areas without telephone service orareas where the telephone lines do not support ADSL, AsiaSatsees a market need for satellite broadband but the ability ofcustomers in these areas to pay for the service is an importantfactor. For these areas a bundled telephony/internet productto a local community center may provide a more economicsolution.

Demand could well pick up in the second half of 2005,according to AsiaSat. In terms of pricing, the revived demandwill result in higher prices for C-band, but for Ku-band there isstill oversupply in certain markets and this could hold pricesdown.

The next five years for Asia’s satellite industry shouldherald interesting developments, including new usesfor old services, an industry boost from the 2008

Olympics and higher prices for C-band.

Northern Sky Research believes video markets willremain relatively stable with some potential growth in terms ofequity interest. In the next three to five years, Northern Skyexpects a China based DTH service, either ChinaSat orSinoSat, to emerge. Also, the 2008 Olympics could have amajor impact on HD worldwide given the large amount of HDprogramming this event is expected to generate.

It also sees mobile video and satellite technology’sincorporation in terrestrial 3G/4G to open up new opportuni-ties for the industry. In all these, it is the broadcast componentof satellites that will provide the most compelling valueproposition for customers.

AsiaSat says satellites will continue to play a significantrole in content delivery. In the coming years, as qualityincreasingly becomes a market differentiator, it expects to seethe development of new types of video content beingdelivered by satellite such as HDTV and Digital Cinema.

AsiaSat believes Asia will emulate the U.S. and Europeand will see increased live news events being transmitted to

New opportunities for Asia’s satellite industryin the next 3 to 5 years

SM

SM

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Investment bankers Morgan Stanleyhave taken a close look at SES Global,following on the May 6 news of SES’

announced plan to buy in 9% of its ownstock. Morgan Stanley senior analystSarah Simon suggests there’s likely morecash to come to shareholders, althoughshe also says that SES’ two core inves-tors, the Luxembourg state and GeneralElectric, might also have to give up someequity if the free float is to stay in equilib-rium.

But this is only part of the story. Itseems, at least according to MorganStanley, that SES is in for a buoyantcouple of years, with Americom and Astra,its two “anchor” brands, being wellpositioned to take advantage of a marketrenaissance.

A few weeks ago, SES Globalpresented at the Morgan Stanley Media &

SES: “More $/€ to come”By Chris Forrester

Communication event inWashington, and evidentlydelivered a highly bullishpicture of its trading position, inparticular with reference to SESAmericom’s activities. Itemerged that Americom isachieving some 85% penetra-tion of the US cable market withits HD Prime slot, and expects tobe at 90% by the end of thisyear. Moreover, the very realcapacity shortages in the USand Europe means SES now hasreal opportunities to startramping transponder prices up.Morgan Stanley’s revenue forecastpicture for SES Astra, for example, isimpressive. Its satellites at 19.2 degE, now mainly transmitting toGermany and France, can expect to

generate an extra €90m over the next 4years (compared to 2004), and at 28.2 degE where Astra transmits BSkyB’s UK andIreland channels, revenues will expand€70m. Even allowing for modest growth onAstra 4A’s bundle of transponders intoAfrica (from just €1.7m this year to €12.8min 2008, and a phasingout of the 24.2 and 5.2deg E slots, Astra’sgross revenues willexpand from last year’s€663.6m to an impres-sive €868.6m during2008.

Morgan Stanley,in its May 16 report,says: “We believe thata share buyback can drive further valueappreciation as it should result in a lowercost of capital.” The report suggests thatthe share buy-back could affect SES’ two

major shareholders: GE Capital and theLuxembourg government, who might trimtheir stakes. An alternative might be forSES to significantly increase its dividendsto shareholders. “If the latter, we believeSES Global could offer a 2006 dividendyield of more than 15%,” say the bankers.

Meanwhile, SES has green-lit theacquisition of Astra 1M. The new satelliteis being fast-tracked as a fleet back up,

with a primary mission to replace toreplace Astra 1H and provide in-orbitbackup capacity for Astra fleet at 19.2 degEast. Astra 1M will have 32 active Ku-

SES utilisation*2005 2006

Astra at 19.2 deg E 85.5% 89.5%Astra at 28.2 deg E 96.5 96%NSAB Euro-footprint 75% 80%HD Prime (Americom) 90% 95%*Data: Morgan Stanley

SES Global’s African magic bulletKey to SES’ new thinking is WorldSat 2(originally known as AMC-12), and nowpartly renamed Astra 4A, at 37.5 degWest. SES partner company Star One ofBrazil is taking 18 transponders thatserve South America, and this portion ofthe craft will be marketed as Star One C-12. Astra 4A/WS2 is a 72-transponder C-Band giant, built by Alcatel Space anduses their Spacebus 4000 configuration.The craft was launched in February.

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band transponders. Astra’s president andCEO Ferd Kayser says the object of theexercise is to guarantee absolute safetyfor the fleet ahead of the plannedlaunches of Astra 1KR and 1L. “Theprocurement is expected to include theoption to interrupt the build programmeand to resume the build at a later datemore closely aligned to the replacementof Astra 1H capacity,” said a statement.“By slightly advancing the procurementof Astra 1M, we will also protect thetiming of the move of Astra 2C to 28.2East, to secure the growth in the buoyantUK and Irish markets,” said Kayser.

Then there’s SES Americom, whichis also changing its attitude internation-ally. First, a year or so ago, Americomwas going to manage its widely-deployedinternational fleet itself. Then, the non-US assets would be spun off into a newcompany, WorldSat (with AndreasGeorghiou as CEO). Now the plan is tobring Americom’s European arc of assets– including the Middle East and Africa -under Astra’s control with most Asianassets and sales under the care of Peter

Jackson’s team at AsiaSat.Americom/Astra firmly has Africa in

its sights, and has Steve Rich lookingafter Africa from his Johannesburg base. Itis early days, but evidently the signs areall very positive. SES’ secret weapon isSES Global’s acquisition, via Americom, ofVerestar last year (the purchase closedDec 1). Verestar’s 4 Earth Stations (Alex-

andria, VA, Brewster, WA, Holmdel, NJ,and Leuk, Switzerland) and their Africantraffic, by and large now carried byPanAmSat, will switch to Astra 4A whencontract terms permit. “The first traffic willstart appearing as soon as June,” says anSES insider, hinting that the traffic couldsoak up anything between 6 and 12transponders. “We can now provide very

SES board changesAt a May 6 Board Meeting SESGlobal made some significantchanges to its Board structure,reducing the overall size from 21members to 18, but at the same timeimproving the expertise andprofessional independence of theBoard’s structure. In comes oldSES hand Marcus Bicknell, formerNew Skies chairman Terry Seddonand Jacques Espinasse, formerlyVivendi-Universal’s CFO, and GerdTenzer, a former main boarddirector at Deutsche Telekom. Thenew blood is seen as improvingcorporate governance as well as ahigher degree of independence toSES’ top-level supervision. RenéSteichen remains as Chairman ofthe Board

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easy connectivity between almostanywhere in Africa to a USA hub.” SESsees its African clients welcoming Astra4A’s higher-power C-Band output.

But what about future revenues forAmericom and Astra? Again we can turnto the detailed Morgan Stanley report.Morgan Stanley suggest that Astra’scurrent average transponder rentals standat €4.3m a year for 19.2 deg (for a currentmanifest of 101 transponders), andbargain basement €3.7m for 28.2 deg East(and 54 transponders) which serve theBritish Isles. These revenues will grow,with 19.2 transponder rates rising by€100,000 next year, and the same for eachof the next few years until the slot isusing 112 transponders at €4.6m p/a each.The second position, 28.2 deg E, will beslower to rise in per-transponder value,especially given the longer-term ratesnegotiated by BSkyB, and not showingmuch uplift until 2008 (and then only to€3.8m a year). The bank predicts Astra’s28.2 orbital position will grow in terms of

transponder utilization from today’s 54 to69 in 2008. Americom’s transponderrentals typically range from €1.3m-€1.4mper annum.

Add in Americom, NSAB, AsiaSatand its other part-owned satellites andother investments, and the revenue picturegrows from last year’s €1.082bn to ahealthy €1.6bn during 2008. As part of awider picture, Morgan Stanley acknowl-edges that SES has to maintain a flexibleattitude to capital expenditure especiallyin regards to satellite launches, a risk-laden process unfortunately, where little iscertain. Currently SES guidance is thatAstra’s recent RFP for Astra 1M will gothrough to procurement and launch, evenif there remains a possibility that thesatellite is held as a ‘ground spare’. Thisgives Morgan Stanley three potentialoutcomes:

1: Capex guidance is lowered for2007 and 2008, because Astra 1KR andAstra 1L are both launched successfully,

and 1M is put on ice;2: Revenues are higher than we

forecast from 2008, because 1M islaunched and begins to capture newbusiness alongside that generated by1KR and 1L.

3: 1KR or 1L fails, 1M is thereforelaunched and capex and revenues areunaffected. SES receives insurancecompensation for the lost satellite.

“One of these alternatives is correct,the problem is that we do no know whichone. What is clear, however, is that ourforecasts are too conservative in thisrespect,” states Morgan Stanley. “In ourview Astra 1M is more likely to be asource of medium and longer-termearnings upgrades. For given the strongdemand in Europe at present, we wouldexpect that 1M will be launched, perhapsin 2008, and that, as discussed earlier itwill generate revenues that are notcurrently in our estimates.”

SES Global Headquarters inBetzdorf, Luxembourg. (photocourtesy of SES Global).

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SES Astra:Revenue Forecasts (€m)Year to December 2004 2005e 2006e 2007e 2008e19.2 426.2 437.4 463.4 490.2512.428.2 190.5 197.2 199.1 229.3260.523.5 27.7 29.6 31.9 34.537.324.2 2.6 9.4 14.3 8.5-5.2 0.2 0.1 - --Other 16.5 17.0 17.5 18.018.4DPC* - 22.0 22.9 23.824.7Spot Beam - 0.2 0.8 1.72.5Astra 4A - - 1.7 8.3 11.112.8Total ASTRA 663.6 714.5 758.1 817.1868.6Note: Astra’s Digital Play-Out Centre, net of inter-company

Data: Morgan Stanley

London-based Chris Forrester, a well-knownbroadcasting journalist is the Editor for Europe,Middle East and Africa for SATMAGAZINE. Hereports on all aspects of the industry with specialemphasis on content, the business of television andemerging technologies. He has a unique knowledgeof the Middle East broadcasting scene, havinginterviewed at length the operational heads of each of the mainchannels and pay-TV platforms. He can be reached [email protected]

SM

SES is reportedlyin discussions withEchostar to moveEchostar 4 (alreadydeclared a total loss byinsurers) to Mexico’s 77deg West slot ahead ofa July 10 FCC deadline,in order to secure theorbital position forSES-backed QuetzSat.

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In the February 2005 issue ofSatMagazine I wrote an article on howWi-Fi and satellite communications are

teaming up to deliver the “last mile”, anddoing so cost effectively with commer-cially off-the-shelf products. With thefocus of this month’s issue on satellitecommunications in Asia I decided to writeabout how much satellite communicationsin the Asian energy industry affects us all.

Most of us are aware that theindustrial revolution has grown exponen-tially in China over the last decade andwith this growth has come an insatiableappetite for hydrocarbon-based energy(oil & gas). Considering the rate at whichAsian consumption is increasing andrecognizing that the nations which requirepetroleum as the life blood of theirindustrial development will take seriousand long term moves to invest in andprotect access to petroleum, Asia is not tobe found sitting on the sidelines when itcomes to the race to find, develop, anddeliver this hydrocarbon lifeline.

The average American consumes 25barrels of oil a year. In China, the averageis about 1.3 barrels per year; in India, lessthan 1 barrel. As the 2.4 billion Chineseand Indians move toward improving theirliving standards, and their industrialdemands on energy increase, they’regoing to want (need) more petroleum —likely more than can be produced. Al-ready Japan and China are the world’slargest consumers after the USA.

India now ranks sixth in the world interms of petroleum demand, of which 70per cent is met through import of crude oil.By 2010, India is projected to replaceSouth Korea and emerge as the fourth-largest consumer of energy, after theUnited States, China and Japan.

At an April conference on energy inBeijing the Chinese government estimatedthat, even if all their efforts to develophydrocarbon and alternative energysources go well, by the year 2020 Chinawill need to import 60% of its energy

needs. The problem is not going away,it’s only growing.

One of the more important tools inoperating and improving the efficiency ofthe hydrocarbon/ petrochemical basedenergy industry is satellite communica-tions and its ability to reach out to thoseremote locations with communicationservices befitting a king. Satcom ad-dresses those issues which make indus-tries such as oil & gas, mining, andmaritime operations difficult to serve.

The Asian Economy, the Oil and GasIndustry and Satellite Communications:What’s the Connection?By Tom van der Heyden

Satellite communications is the most effective way to link various vesselsand rigs in the oil and gas industry.

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Energy Industry RequirementsServed by Satellite CommunicationBased Solutions

Remote, Harsh, Unfriendly Environ-ments are ‘the Norm’. The five major oiland gas exploration and productioncompanies spent an average of 62%(using 2002 figures) of their annual budgeton exploration. This money went intoexploration at sea, in remote deserts, inplaces so cold that they have to heat upthe oil for it to flow. None of theselocations are served by class five switchesor fiber optics. Its either satcom ornothing.

Mobile, Transportable, and at theSame Time High Reliability. Oil and gasexploration teams on land and at sea areconstantly on the move. Moving can bemeasured in days, weeks, and monthswhile in some cases a team may stay inone location and grow into a small city ofseveral hundred if a sizable oil/gas field islocated. In all cases, reliable mobilecommunications delivering substantialamounts of data (mega & gigabytes daily)from remote sites to HQ for analysis is acritical part of the operation. The ‘busi-ness of energy’ demands efficiency inbeing able to analyze vast amounts ofdata and make decisions as to the nextstep in a given exploration with a minimumof delay. With daily exploration anddrilling costs ranging into the hundreds ofthousands of dollars, an explorationoperation can not afford to waste timewaiting on the results of a test holeevaluation nor can they afford to moveon, only to find out a week later that theyhave to return to an already surveyed siteto expand a survey due to corrupted dataor a decision to carry out additionalexplorations at what ‘appears’ to be apotential favorable site.

Global Real-time Networks.Today’s energy companies have opera-

tions at sea, and on land, in as many as 15different countries at the same time, invarious stages of development, allrequiring voice, data and internet access,typically over a secure network (VPN), inreal-time, with availability measured in the99.99 range. Real-time networks ensurethat everyone in a given operation or

logistics environment is making decisionsbased on the same information. With theinvestment required and the high stakesinvolved, secure networks, including tothe most remote and extreme locations,must be secure. Only satellite communica-tions can deliver the connectivity andefficiencies required.

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Fewer Experts and More Opera-tional Locations Demand CentralizedExpertise. As the number of experts inexploration decrease over time and thenumber of exploration sites increase,centralized and pooled (including virtualpooling) is required. It has been a longtime since a seasoned engineer could befound on every site. Today by example,engineers in Houston are monitoring; thedepth and angle of drilling, drill tempera-ture, back-pressure, and many otherparameters, in operations off the coast ofBrazil, in Yemen, and in the SakhalinIslands simultaneously – all via satellite.

Health and Welfare. Today surgicaloperations are being carried out by ‘ship’sdoctors’ in remote locations, some on off-shore oil platforms, some remote oil fields,all via satellite links which inter-connectmedical experts from multiple fields andmultiple locations together in a virtualoperation room, helping to maintain thehealth of those working far from home.Cable television, email and family commu-nications are provided by satellite tooperations which may have as many as400 employees, from 25 different compa-nies, working months at a time in isolatedregions.

Security. All major energy opera-tions must consider security from severalperspectives, most of which are facilitatedor made possible by satellites. Theseinclude real-time video surveliance(internal and external), biometric ID andaccess control, monitored simultaneouslyon and off site.

Environmental Impact Monitoring.Satellites are reporting real time on theenvironmental impacts of; oil pipelinescrossing the deserts, air and waterpollution at off-shore facilities, toxicemissions from production facilities, waterpurity, and air quality in living quarters onoff-shore facilities.

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Growing Requirements DemandsIncreased Reserve Efficiencies. Oil andgas field reserves can now be monitoredreal-time via satellite helping to improvethe efficiencies and overall production ofa given field by as much as 20%. Whenthe cost of exploration and production isimproved by 20% the figures come out inthe billions of dollars.

Managed, Private, Multinational,Dedicated, Secure Networks. Membersof the oil and gas exploration and produc-tion industry, operating on satellite basednetworks, often rely on one, integratedvoice and data network. Such networks,by example provide dedicated toll qualityvoice circuits across international bordersand a virtual high speed secure officeLAN connecting ships at sea, productionfields in the Middle East, engineers inGermany, with logistics’ teams in Qatar allsimultaneously and all using the most

cost effective information super highway– today’s satellites.

In Asia, where the energy demand isgrowing the fastest, we see extensiveexploration both on land and off the

coasts of Australia, Indone-sia, Vietnam, China, Timor-Leste, India and in the farnorth – the Sakhalin Islands.The economies of Asia andthe rest of the world are tiedto the petrochemical industrywhich relies heavily onsatellites for much more thancable TV via satellite.

Satellite communica-tions supporting the energyindustry serve the mostremote and harshest oflocations, with the highestquality of communicationservices (voice, data,security, environmentalmonitoring, etc.), providingthe umbilical cord throughwhich vital communicationsflow.

Thomas van der Heyden is the Asia-Pacific Business DevelopmentExecutive for CapRock Communications, a global satellite communica-tions provider for the off-shore oilfield, maritime, construction, andmining industries, as well as for disaster relief and governmentapplications. CapRock offers complete managed telecommunications solutions in theworld’s harshest and most hard-to-reach environments for broadband networking, real-time video, and digital telephony.

Tom, one of our industry’s pioneers, started out in the Advanced Satcom Projects Groupof the US military in 1972. Having completed his engineering and business law degrees,he has spent most of his career designing and implementing satcom systems in develop-ing countries and remote regions of the world. His accomplishments, in addition toseveral patents in spacecraft design, include building China’s first voice and datanetworks, building Indonesia’s first wideband TDMA system network, writing the firstFCC filing for DAB/DARS, the development of the Indonesian DBS program, and afluency in six languages. Tom can be reached at [email protected].

SM

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How did the commercialsatellite industry in the Asia-Pacific farein 2004?

The Asian transponder marketremained slow in 2004. Though therewere signs of economic improvement insome markets, the recovery of thetransponder market usually lags behindthe economic recovery.

What was the major growthdriver in this market?

We continue to see growth fromareas where satellite has unique advan-tages over all other forms of communi-cations. The first is the delivery ofcommon content, the largest applicationbeing video content, over a largegeographic area to an unlimited numberof locations for a single fixed price. Inaddition, the satellite’s ubiquitouscoverage and reliability allows it toprovide high quality connectivity to anylocation under its footprint making itideal for certain telecommunicationsnetworks.

So far, how is 2005 shaping outto be like, for your company and for thewhole Asian industry?

We achieved a double-digitrevenue growth in 2004 after taking intoaccount of a one-off payment, excludingthat payment revenue would have beenflat. Stepping into 2005, we see limitedgrowth with some new channels andnew services introduced into the region.Transponder prices are stabilising ascustomers realise that not all transpon-

Interview with AsiaSatCEO Peter Jackson

ders are equal and certain satellites arebetter at providing what they require thanothers.

Satellite broadband is beingtouted as the Next Big Thing in thecommercial satellite market. What areyour views on this?

In the urban areas we see DST orADSL provided over the telephonenetwork as the bulk provider with satelliteservice only serving enterprise customersthat require large capacity links and theydo not have good quality telephoneservice. In the rural or outlying areaswithout telephone service or areas wherethe telephone lines do not support ADSLwe see a market need for satellite broad-band but the ability of customers in theseareas to pay for the service is an importantfactor. For these areas a bundled tele-phony/internet product to a local commu-nity centre may provide a more economicsolution. With such a system in placelocal landlines can extend the services toother locations such as police stations orbusinesses that can afford direct service.In some countries, Australia is an example,Governments have imposed universalservice fees to subsidise service to theseoutlying areas and this will make broad-band via satellite more viable.

What is your prognosis for 2005 as awhole?

With the region’s economy improv-ing, demand could well pick up in thesecond half. In terms of pricing, therevived demand will result in higher pricesfor C-band, but for Ku-band there is stilloversupply in certain markets and this

could hold prices down.

What do you think would bethe biggest development in the next 3-5 years in Asia?

Satellite will continue to play asignificant role in content delivery. Inthe coming years, as quality increas-ingly becomes a market differentiatorwe will see the development of newtypes of video content being deliveredby satellite such as HDTV and DigitalCinema. Asia will emulate the U.S. andEurope and we will see increased livenews events being transmitted to thestudios via satellite and the nowinfamous “Satellite News Gathering”trucks. Real-time news and sportsevents will be delivered to 3G mobile orother handheld devices and thedistribution of this content will be viasatellite to the cell sites. In fact,AsiaSat is already carrying someoccasional HD traffic and content formobile devices.

Where is your company in allthese developments?

We hope at the front; workingwith our customers to develop theirtransmission and distribution plansthat will allow them to continue to growand prosper. We will increasingly belooking to develop and provide themost up-to-date satellite and groundassets that meet their needs at the bestprices.

EXECUTIVE SPOTLIGHT

SM

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Commercial satellites are nowexclusively launched by commer-cial launch companies. No

longer is orbit delivery a governmentalenterprise, justifying such huge programsas the Space Transportation System(STS). Rather, commercial companies inthe US, the EU and Russia lift themajority of geostationary satellitesthrough a competitive procurementprocess. More importantly, the reliability oforbit placement has stabilized to the pointthat satellite operators can plan replace-ment and expansion satellites, usuallyobtain sufficient insurance, and get thelaunches they need to maintain and growtheir businesses. The stream of successesin recent years by the leading rocketcompanies yields greater confidence inany given launch (although this is neverassured since the chance of failure isgenerally in the range of five to ten out ofa hundred).

Launch System ProvidersThe focus of this article is on

geostationary satellites of the classneeded to meet major application de-mands in video transmission, broadbanddata communications, mobile satelliteservices, radio/audio broadcasting, andpoint-to-point links. Launch servicessuitable for these are offered internation-ally by: Arianespace, Boeing LaunchServices (BLS) and International LaunchServices (ILS). Delivery of up to sixcommunications satellites at one time hasbeen demonstrated in the past. However,the norm is either one very large satellite(weighing between 3,500 and 6,700 kg)or one or two smaller satellites (weighing

Competition and Consolidation in theSatellite Launch SectorBruce ElbertPresident, Application Technology Strategy, Inc.

between 1,200 and 2,500 kg). The massvalues stated here are for delivery togeosynchronous transfer orbit (GTO), theelliptical orbit used as the most commonintermediary phase prior to GEO.

Boeing Launch ServicesBoeing has consolidated its commer-

cial satellite launching operations into asubsidiary called Boeing Launch Services(BLS). Delta II is a direct descendant ofthe original Delta series and has beendescribed as the workhorse of NASAowing to the quantity of vehicles pro-duced and the overall success record. Itslift capability is limited to approximately2,000 kg to GTO, restricting its use to

smaller satellites like GPS and DigitalGlobe. Boeing has in its manifest a totalof five Delta II launches this year, themost recent in January being DeepImpact, a NASA mission to collide with acomet, and GPS just this May.

Delta IV takes the heavy end of themass spectrum, delivering payloads up to13,000 kg to GTO. In fact, Delta IV canbe provided in various configurations tomatch payloads between about 4,000 and13,000 kg by combining differentquantities of strap-on rockets and solidrocket boosters (two or four). Both fourmeter and five meter farings are usable.There have been four launches of Delta

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IV, three of which were completelysuccessful; one (a demonstration) met itsobjectives but underperformed in terms ofpayload to orbit. Eutelsat W5 and two AirForce DSCS II satellites in March andAugust, 2003, respectively, were amongthose successfully launched by Delta IVrockets.

Sea Launch is the commercialcenterpiece of BLS in terms of liftcapability and performance, having justachieved a record of 14 successes in arow. Already familiar to our industry frompublicity photos of the launch platform (aconverted ocean-going oil drillingplatform) and the command ship, SeaLaunch is a joint enterprise of thefollowing organizations:

· Boeing - payload fairing,analytical/physical spacecraftintegration, mission operations, andmanagement of the Home Port inLong Beach, CA· RSC Energia - Block DM upperstage, launch vehicle integration,ground systems and launch opera-tions· SDO Yuzhnoye/PO Yuzhmash -two stages of Zenit-3SL, vehicleintegration support, launch opera-tions support· Kvaerner ASA - Odyssey LaunchPlatform and the Sea Launch Com-mander (Assembly and CommandShip)This group has done a wonderful job

on a very innovative approach to launch-ing big satellites. The success ofDIRECTV/Spaceway on April 26 placedwhat is the heaviest commercial satelliteever produced (6,080 kg) within 5 km ofits target. BLS calls this a “bull’s eye” ininjection accuracy terms. The Block DMfinal stage performed well in 17 launches,with only one missing its mark.

International Launch ServicesLockheed Martin gained a strong

position as a commercial launch provider

through their landmark jointventure with key highlyexperienced Russian launchvehicle manufacturer andoperator, Khrunichev StateResearch and ProductionSpace Center (KhSC). I had thechance to visit the KhSCfactory outside of Moscowthat produces the Protonbooster, a massive piece ofsteel that has achieved a recordof 45 consecutive successfullaunches. RSC Energiapreviously provided the upperBlock DM stage, now replacedwith the Breeze M from KhSC.ILS also offers the Atlas seriesof US launchers, whichresulted from the LockheedMartin acquisition of theConvair division of GeneralDynamics in San Diego. Asdescribed to me by Sales &Marketing Director Jack Juraco,ILS is now the largest supplierof launches to GTO. Thecurrent Proton and Breeze Msystem launches from BaikonurCosmodrome, Kazakhstan, andcan lift up to about 6,000 kg toGTO.

The venerable Atlasrocket, originally an ICBM butused successfully for manydecades as an expendablelauncher, has been upgradedby Lockheed Martin SpaceSystems, Denver, CO, as aresult of the Air Force EELVprogram. The high end of theAtlas V system can lift up to8,700 kg to GTO. This iscurrently outside the range ofcommercial satellites, which arenot yet in this size category.Lockheed Martin has launchedfive Atlas Vs and all versions

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of Atlas have achieved a record of 76successes in a row (i.e., Atlas II, AtlasIIAS, Atlas III and Atlas V).Arianespace

Last but not least in myreview is Arianespace, basedin Evry near Paris, Franceand with its US office inWashington, D.C.Arianespace pioneered theconcept of a commercialsatellite launching company,a path followed in the US byLochkeed Martin andBoeing. Arianespace gainedprominence by successfullylaunching single and dualpayloads one after anotherusing the Ariane 3 and 4rockets out of their dedicatednear-equatorial launch site inFrench Guiana. This madeclear to our industry thatEuropean rockets andbusiness practices weregoing to be the norm. Whatstill distinguishesArianespace from the otherproviders is their customer-friendly approach of dividingup a particular mission topermit reduced launch costfor smaller spacecraft.

Arianespace retired itsworkhorse Ariane 4 rocket in2003 in favor of the muchlarger and more versatileAriane 5 launch system. Sofar, the reliability record ofthe Ariane 5 series needs toattain the level of Ariane 4 (alikely certitude).Arianespace successfullyflew the ECA (cryogenicupper stage) version of theAriane 5 in February of thisyear demonstrating thecapability to lift over 8,300

kg to GTO. The Ariane 5 ECA employsthe same SNECMA-built HM7-B cryo-genic upper-stage engine that flew arecord 74 consecutive successful flights

on the Ariane 4. Arianespace plans toincrease the Ariane 5 ECA’s lift capabilityto close to 10,000 kg over the comingmonths. Clayton Mowry, President of

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Arianespace, Inc. (the US subsidiary),stated that in June,

2004, Arianespace ordered a newbatch of 30 Ariane launchers from EADSSpace Transportation, demonstrating theirlong term commitment to the market.

Over 40 spacecraft are undercontract to launch on Ariane 5 in thecoming years giving it the largest backlogof any commercial launch servicesprovider.

Other Launch CapabilitiesFrom time to time, we hear an-

nouncements of new launching systemsand new launch sites. In some cases, thishas, in fact, borne true. The old Protonrocket of the Soviet Union along withtheir “southern” launch facility at theBaikonour Cosmodrome in Kazahkstanwas proven by ILS to represent solidcapability at an affordable price. Manylarge and medium-sized GEO satelliteshave successfully been placed into orbitby this system. Likewise, the Boeing SeaLaunch system, using another Sovietrocket, Zenit, is a solid performer.

The Asian-developed launch systemsfrom Japan, China and India are used formissions primarily within their respectivecountries. All of these countries provideheavy government support for thedevelopment, manufacture and operationof rockets in the small to medium class.The successful Long March 3-II launchlast April by China Great Wall was of a4,600 kg Alcatel-built satellite for HongKong-based satellite operator, APT.Generally, few western satellite operatorsare availing themselves of Asianlaunches, although the situation canchange quickly if a variety of obstaclesare reduced, pricing becomes veryattractive, or a string of bad luck befallsthe western providers.

Launch services have, at times,attracted startup ventures. The most

significant of these isOrbital Sciences,which began itsbusiness supplyingthe Transfer OrbitStage (TOS) toNASA for use inconjunction with theSpace Shuttle. TheirPegasus rocket thatis carried below an L-1011 has been usedsuccessfully to liftsome small payloadsto LEO. Morerecently, a startupcalled Space Explora-tion TechnologiesCorporation(SpaceX) moved tothe forefront bywinning an Air Forcecontract. Announcedon May 2, 2005, SpaceX was awarded a$100 million contract by the U.S. AirForce/Space and Missile Systems Centerfor Responsive Small Spacelift (RSS)launch services. The purpose of thiscontract will be to provide low cost orbitallaunch vehicles and responsive (launch 12months from award of basic contract)launch services, on a recurring basis,using a mature vehicle design and acommercially derived booster to meetmission/payload requirements.

Demand for LaunchesThe major sectors of the satellite

communications industry have undergoneconsolidation in recent years. Satellitemanufacturing is dominated by fivecompanies – Alcatel, Boeing, EADS/Astrium, Lockheed Martin and SpaceSystems/Loral . A smaller manufacturer, Orbital Sciences, suppliescommercial spacecraft as well. Themajority of operating GEO satellites isowned by the major operators – Eutelsat,Intelsat, JSAT, NewSkies, PanAmSat and

SES; and direct-to-hometelevision services byDish Network, DIRECTVand Sky employ a substan-tial quantity of satellitecapacity and serve tens ofmillions of subscribers.These companies havebeen fairly conservative inthe use of on-orbittechnology, but recentadvances in baseband on-board processing andmultiple-beam antennasystems are challengingthe traditional bent-piperepeater. Overall, there is aneed for between 15 and25 satellite launches peryear. The specific numberfluctuates wildly due tothe dynamics of satellitereplacement schedules as

well as the introduction of new applica-tions at new frequencies and new orbitpositions. Thus, the market for launches ismoving toward a few large buyersengaging a few large sellers.

The role of more focused companiesin the US like Orbital Sciences andSpaceX will likely be in the delivery ofsmall payloads to low earth orbit orpossibly GTO. Applications for suchmissions will probably not come from thetraditional commercial satellite sector.However, SpaceX indicates on its websitehow a 2,000 kg payload would be lifted toGTO by one of their proposed offerings.

Strategic Alliances Shape theLaunch Industry

It is now becoming the norm for themajor launch providers to form strategicalliances such as joint ventures and jointmarketing agreements. ILS was perhapsthe first such JV, followed successfully bySea Launch. Lockheed Martin and Boeinghave announced in May their plans to

DIRECTV’s Spaceway F1satellite launched by SeaLaunch last April 26, 2005.(photo courtesy of Sea Launch).

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form the United Launch Alliance (ULA) that would contain theirUS engineering and manufacturing operations. ULA would also bethe single marketing arm for the US government, principally the USAir Force. Design and engineering will be conducted at theLockheed Martin facility in Colorado and manufacturing at theBoeing Alabama factory. ILS and BLS will continue to operateindependently, selling and providing commercial launch servicesvia the Proton and Sea Launch systems, respectively, as well asAtlas and Delta.

The Launch Services Alliance (LSA) was formed two yearsago by Arianespace, BLS and Mitsubishi Heavy Industries (MHI).The successful launch of DIRECTV 7S by Sea Launch in 2004 wasthe first mission performed within the LSA framework. DIRECTV7S originally was to have been orbited by Arianespace at the endof 2003 - which created a scheduling conflict with the Ariane 5’sRosetta scientific mission. Using LSA’s flexibility, DIRECTV 7Swas transferred from Ariane 5’s manifest to a Sea Launch vehicle,and the spacecraft was lofted on May 4, 2004.

In May 2004, Australian telecommunications carrier Optus becamethe first customer to sign a new launch order incorporating analternate back-up launch vehicle with LSA. This order withArianespace calls for the Optus D1 and D2 payloads to be orbitedby Ariane and Soyuz (a smaller Russian vehicle) in 2005 and 2007,respectively. Back-up launch capacity, if needed, would beprovided through LSA.

Europe was first to create a commercial company to market arocket for use in launching commercial satellites. The rocketsthemselves were produced by aerospace companies in severalcountries, but final integration and launch operations remainedwith Arianespace. This same model is now pursued by ILS andBLS; the ULA joint venture is likewise a coalesced businessstructure. Their market power can make it difficult for the newentrant to compete in the GEO market. On the otherhand, there is always room for innovation, what-ever the size of the organization or its country oforigin.

Bruce Elbert has over 30 years of experience insatellite communications and is the President ofApplication Technology Strategy, Inc., which assistssatellite operators, network providers and users in thepublic and private sectors. He is an author and educator in thesefields, having produced seven titles and conducted technical andbusiness training around the world. During 25 years with HughesElectronics, he directed major technical projects and led businessactivities in the U.S. and overseas. He is the author of The SatelliteCommunication Applications Handbook, second edition (ArtechHouse, 2004). Web site: www.applicationstrategy.com / Email:[email protected]

SM

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COUNTRY PROFILE

Brazil is the largest country in LatinAmerica both in terms of population and in land area. Due to its

size, satellite communications is an idealto medium to communicate with itsremote regions. Brazil has been usingsatellites since 1969.

Satellite communications forcommercial applications has been growingduring the last 6 years since the BrazilianGovernment open the space for more localand international satellite carriers toprovide services in Brazil.

In the table below is the summary ofsatellite carriers with domestic Satelliteand international satellites licenses andactive in the Brazilian satellite communica-

Brazilian Satellite Market

Vital Statistics

Land area 8,456,510 sq kmComparative land area slightly smallerthan the USPopulation 186,112,794GDP - real growth rate: 5.1% (2004 est.)GDP - per capita purchasing power parity- $8,100 (2004 est.)GDP - composition by sectoragriculture:10.1%industry:38.6%services: 51.3% (2004 est.)Telephones - main lines in use 38.81million (2002)Telephones - mobile cellular 46,373,300(2003)Radio broadcast stations AM 1,365, FM296, shortwave 161 (of which 91 arecollocated with AM stations) (1999)Television broadcast stations 138 (1997)Internet hosts: 3,163,349 (2003)Source: CIA WORLD FACTBOOK

tions market. Anatel, theBrazilain telecom regulatorybody, requests that any satellitecarrier must have a localcompany organized in Brazil inorder to provide services inBrazil. As you can see all theinternational operators have abranch in Brazil to provide theservices.

The market will be more stable andgrow. The projects for HDTV in Brazil andthe expansion of the government programto popularize Internet with will be the bestpush in the market.

In addition to the Commercial area,Brazil has in place a space program that

includes the development of geostation-ary satellites. Further cooperation withUkraine and Russia aimed at improvingBrazil’s VLS rocket, which has yet tolaunch successfully, and the expansion ofBrazil’s Alcantara Launch Center locatedin the Northeast region is part of theprogram. Brazil has big plans forAlcantara Launch Center. In addition to itsaim to make the facility an international

By Bernardo Schneiderman

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spaceport, the Brazilian space agencyenvisions Alcantara as an aerospacecenter that would host a universitycampus and a complex of space museums.

Part of the Brazilian Space Programis the project to launch three geostation-ary satellites in orbital positions to be

defined by Anatel (equivalent of the FCCin Brazil). The project is coordinated bythe Ministry of Defense and plans tolaunch two redundant satellites withtransponders in L, C and X-Band and athird satellite in Ku-Band and meteorologi-cal and image sensors. The target of theproject is to become operational in 2009.

Satellite Carriers Satellites Bands Status

1 - Brazilian Carriers

Hispamar Amazons C 7 Ku 61.0W Operational

Local Skynet do Brasil Estrella do Sul Ku 63.0W Operational

Star One Brasilsat B1 C & X 70.0W Operational

Brasilsat B2 C &X 65.0W Operational

Brasilsat B3 C 84.0W Operational

Brasilsat B4 C 92.0W Operational

Star One C1 Ku & Ka 65.0W Planned 2006

to be defined Ku 70.0W NA

2 - International CarriersEutelsat do Brasil W1 Ku 10.0E Operational

Atlantic Bird 1 Ku 12.5W Operational

Atlantic Bird 2 Ku 8.0W Operational

Atlantic Bird 3 C & Ku 5.0W Operational

Hispamar Hispasat - 1C Ku 30.0W Operational

Hispasat - 1D Ku 30.0W Operational

Intelsat Brasil Ltda. 705 C 50.0W Operational

805 C 55.5W Operational

901 C 18.0W Operational

801 C 31.5W Operational

IS 903 C 34.5W Operational

IS 905 C 24.5W Operational

IS 907 C 27.5W Operational

Loral Skynet do Brasil Ltda. Telstar 12 Ku 15.0W Operational

Nahuelsat Satellites Com Lt. Nahuel 1 Ku 72.0W Operational

New Skies Satellites Ltda NSS - 806 C & Ku 40.5W Operational

NSS - 7 C & Ku 21.5W Operational

NSS - 8 C & Ku 105.0W Operational

Panamsat do Brasil PAS 1- R C & Ku 45.0W Operational

PAS - 9 C & Ku 58.0W Operational

(Under Galaxy do Brasil) Galaxy III R & C Ku 95.0W Operational

(Under Key TV) PAS - 3 C & Ku 43.0W Operational

Satmex do Brasil Solidaridad 2 Ku 113.0W Operational

Satmex V C & Ku 116.8W Operationa

SES American do Brasil AMC - 4 Ku 101.0W Operational

AMC -12 C 37.5W Operational

Star One S. A. Anik F1 Ku 106.8W Operational

Source Anatel - www.anatel.gov.br

OrbitalPositionin Degree

The life cycle of the two satellites isplanned for 15 years and the third one for10 years.

Last May 12 in a meeting held at theMinistry of Communications in theBrzilian capital of Brasilia, the results ofpreliminary studies for the technicalspecifications of the Brazilian geostation-ary satellite program was presented. Thestudy was developed by CTA (CentroTecnico Aerospacial- Aerospace Techni-cal Center), ATECH Foundation and CPQD(Centro de Pesquisa e Desenvolvimento –Research and Development Center).

The study started in 2003 andoutlined the plan to launch Braziliansatellites into orbit to meet the demandsof the Government Strategic Communica-tions in Brazil. The target is for theBrazilian Government to own their satellitesystem and control their security commu-nications needed for the Defense andstrategic requirements. The currentsatellite operators are private entitiescontrolled by foreign investors and do nothave any incentive to provide these kindof services. The program mission is toexpand and improve the surveillance ofthe vast Amazonian region and monitor-ing the air and maritime traffic in Brazil-ian territory. Additionally the otherbenefits are:

- Control the Air and Maritime

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Space direct without the need offoreign operators

- Develop the Local Space

SM

Bernardo Schneiderman has over 20 years of experience in Satellitecommunications and is the President of Telematics Businessconsultants based in Irvine, CA. He has been working in BusinessDevelopment, Sales and Marketing for Satellite Carriers, VSATEquipment Manufacturer and Consulting Companies in the USA,Latin America, Brazil and Africa developing business for the Telecom, Broadcastand the Enterprise Market Segment. He was the editor of the Publication BrazilTelematics Newsletter during 1995-2003. He has a MBA from University of SanFrancisco with Major in Telecom and International Marketing and BSEE fromUFRJ in Brazil. He can be contacted at [email protected]

Industry- Potential to share the satellite

services with other Latincountries

- Expand the surveillance in theAmazonian Region

- Expand the surveillance in thecoastal areas and the ocean limitsof Brazil

- Improve the meteorologicalforecast for several economicsectors in Brazil ( Agricultureindustry, Tourism, Transport,Power Distribution and othermain sector of the economy)

- Improve the logistics andpreparedness of the NationalGuard in case of naturaldisasters.

In a interview with one of therepresentatives of the program, it wasdisclosed that the next step is to finalizethe project in the 3rd quarter of 2005 andget the final government approval. Afterthis step is to issue the procurement at the

end of 2005 or early 2006. Several majorsatellite manufacturers have alreadysubmitted proposals for the satellitecomponent of the program includingSpace Systems Loral, Alcatel Space,EADS and others.

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VIEWPOINTSTOCK MONITOR

AAE SYSTEMS 31www.aaesys.com

ANACOM 30www.anacom.com

ARABSAT 41www.arabsat.com

ATCi 35www.atci.com

COMTECH EF DATA 16www.comtechefdata.com

ECC 13www.eccincorp.com

FOXCOM 18www.foxcom.com

GLOBAL LINK 38www.globalinktv.com

GLOBECAST 22www.globecast.com

ILC 11www.ilc.com

L-3 NARDASATELLITENETWORKS 26www.lnr.com

LORAL SKYNET 9www.loralskynet.com

MITEQ 17www.miteq.com

PACSAT 36www.pacsat.com

PANAMSAT 8www.panamsat.com

PTC 6www.my2005.org

SATNEWSPUBLISHERS 21www.satnews.com

SEATEL 28www.seatel.com

SES GLOBAL 20www.ses-global.com

ADVERTISERADVERTISER’ADVERTISERS 'INDEXINDEXINDEXINDEXINDEX

For real-time, up-to-the-minute stock quotes of satellite companies go to:www.satnews.com/free/finance.html

Company Name Symbol Price (May 27) 52-wk Range

APT SATELLITE ATS 1.31 1.25 - 2.10

ANDREW CORP ANDW 13.29 9.30 - 21.52

ASIA SATELLITE TELECOMMUNICATIONS (ASISAT) SAT 17.89 15.20 - 19.81

BALL CORP BLL 37.96 33.11 - 46.45

BOEING CO BA 63.02 44.91 - 63.00

BRITISH SKY ADS BSY 40.10 33.22 - 46.86

CALAMP CORP CAMP 6.67 5.12 - 10.18

C-COM SATELLITE SYSTEMS CMI.V 0.24 0.21 - 0.60

COM DEV INTL LTD CDV.TO 2.52 2.27 - 3.80

COMTECH TELECOM CMTL 34.80 10.8467 - 38.90

THE DIRECTTV GROUP DTV 14.87 13.88 - 18.25

ECHOSTAR COMMUNICATIONS DISH 29.05 26.95 - 34.38

FREQUENCY ELCTRONICS FEI 11.90 9.80 - 16.05

GILAT SATELLITE NETWORKS GILTF 5.99 3.95 - 7.62

GLOBECOMM SYS INC GCOM 5.528 4.67 - 7.58

HARRIS CORP HRS 29.11 21.60 - 35.00

HONEYWELL INTL HON 36.63 31.85 - 39.50

INTEGRAL SYSTEMS ISYS 21.72 15.29 - 24.70

KVH INDS INC KVHI 9.14 6.61 - 14.75

L-3 COMM HLDGS LLL 68.88 56.20 - 77.26

LOCKHEED MARTIN CORP LMT 65.40 48.39 - 65.46

NEWS CORP NWS 16.91 15.305 - 19.41

NORSAT INTL INC NSATF.OB 1.20 0.425 - 1.141

NTL INC NTLI 63.89 46.65 - 73.79

ORBITAL SCIENCES ORB 9.66 8.84 - 14.19

QUALCOMM INC QCOM 37.16 32.08 - 44.99

RADYNE COMSTREAM RADN 8.19 6.26 - 9.53

SCIENTIFIC ATLANTA SFA 33.92 24.61 - 36.06

SIRIUS SATELLITE RADIO SIRI 5.97 2.01 - 9.43

SES GLOBAL FDR SDS.F 10.98 6.30 - 11.10