SeaAccess as Transit LinkedIn version

Ver. 1.3.2011 © Copyright 2011 Harris CapRock Communications. This material is Harris CapRock proprietary information for the sole use of the intended recipient. Any disclosure without expressed permission is strictly prohibited. 1

SeaAccess as Transit for Rigs in the O&G Market

Ver. 1.3.2011 © Copyright 2011 Harris CapRock Communications. This material is Harris CapRock proprietary information for the sole use of the intended recipient. Any disclosure without expressed permission is strictly prohibited.

TRANSIT IN O&G MARKETProblem

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Transit cases

• What is transit in Energy Market?Transit cases are when the Offshore rig travels from one region to another and it needs constant communications during the journey. The journey takes from 1 to 4 months regularly.

• When it’s used?When the customer initiates a contract with us or is already a customer and wants to operate in different region keeping the same relationship with us

• Why it’s important?It can be the initial requirement for long term contracts or the continuity of them during these long term contracts.

• What we quote at present time?We offer them an all-you-can-eat service (normally SCPC) for reduced crew during the journey normally with C coverage using SeaTel 9797 or SpaceTrack 4024 required for C Global coverage expensive beams resulting into rates in the range of 30 to 40 K per month (512 Kbps) during these transit months, when most likely pay-per-use satellite services could be 1/3 due to the consumption* in some of the cases. Not only that, once that they arrived to destination, we still are charging them the same expensive 2.4 mts antennas with dual Ku operation if Ku domestic or regional lower costs satellite space segment is available to continue the service at destination, instead of regular 1 mt antennas, due to the transit effect.

* Hypothetically with a regular consumption of 400 Mbytes for IP traffic and 2,500 minutes calls per month, same rate.

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Cases Analyzed: 60 transits over last 4 yearsStatistics as follows

– By Customer• 40 % Transocean• 9 % Diamond• 51 % rest (other 18 customers)

– By Region• 38% Brazil• 16% Asia• 11% America• 10% India• 25% rest

– By Solution• 83% C Band SCPC with 2.4 m Antenna SeaTel 9797 or Spacetrack 4024• 15% Ku Band SCPC with 1 m Antenna 4009 or Spacetrack 4012

– By Capacity• 95% are 512x512 Kbps or below requirements, most popular 512x512 Kbps - 65%

– By Price• Average 30 KUSD per month• Only 10% of transit quotations below $10,000, which is a normal rate offered by

Fleetbroadband (400 Mbytes & 3,000 minutes per month)

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Disadvantages of present Transits products• More experience customers could shop around, mainly if they detect that pay-per-usage

services fit their requirements due to high price per month VSAT broadband solution during the journey with more modest requirements for a reduced operations crew.

• Then we can have the risk that they use other service provider for the long term contract at destination as well, considering the competition provided the transit services.

• Competition is moving forward with more competitive prices to provide these services not only for Global Maritime solutions but Oil & Gas as well as main targets (look competition section)

• The services we quote do not use any backup for out of coverage, or when a failure happens.

• We do not provide automatic beam switching for different satellites used during the journey in most of the cases, it is through NOC assistance.

• In some cases is not only NOC assistance required but field support required as well to change equipment at middle points, for instance C circular to linear feeds, TDMA to SCPC (or viceversa), weak signals, poor elevation angles, etc.

• Due to many factors and different situations the prices are not consistent for the same service even in the same region.

• The combination of costly C band global satellite coverage and high price 2.4 mts antennas used during short terms (we use 6 months in the calculator to get the transit price) results in two or three times the regular Energy MSRP prices for the same service during the transit period.

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TRANSIT QUOTESPotential Competition

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Competition below __ per month(512 Kbps & Above w/ Automatic Beam Switching and backup)

• Inmarsat (Ku & Ka w/ L band as backup)– XpressLink (now Ku)

• Antenna 1 mt.– Global Xpress (future Ka)

• Antenna 60 cms• KVH (Ku for V7 and Ku & C band as backup for V11)

– Tracphone V7 (now)• Antenna 66 cms

– Tracphone V11 (future)• Antenna 1.30 mts

• Globecomm (Ku w/ L band as backup)– Se@Flex (now)

• Antenna 1 mt.• Intelsat (Ku and C band as a backup)

– Mobility Solution/Intelsat One• Antenna 2.4 mts. C band and 1 mts Ku band

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Competition Coverage- PresentAutomatic Beam Switching & w/ backup

Intelsat (Ku w/ C backup) Globecomm se@Flex(Ku w/ Fleetbroadband backup)

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Traditional Antennas 2.4 mts C band1 mt Ku band


KVH Coverage Competition ThreatAutomatic Beam Switching, Higher BW, Smaller antennas w/ backup

KVH V7( Ku w/ Iridium Open Port backup, now)

KVH V11( Ku w/ C backup, future)

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1 Mbps Up2 Mbps Down

1 Mbps Up4 Mbps Down


Inmarsat Ultimate ThreatAutomatic Beam Switching, Highest BW, Smaller antennas w/ backup

Xpress Link (Ku w/ Fleetbroadband backup, now)Free Upgrade Global Xpress

Global Xpress (Ka w/ Fleetbroadband backup, future)Up to 5 Mbps Up & 50 Mbps down

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TRANSIT O&GInterim Solution Recommended

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SeaAccess Classic Features

• 512 Kbps Downstream• 256Kbps Upstream• 64 Kbps duplex CIR increments• 3 Year contract minimum• Ku band 1 mt antenna• C band 2.4 mts antenna (optional)• iDirect Automatic Beam Switching• Up to 4 Voice Channels• Enhanced SLA for proactive

maintenance (optional)• VPN Backhaul connection

(optional)

Coverage Ku & C band

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Enhancements for Transit Services

• Provide Symmetrical Traffic up to 512 Kbps• Upgrade coverage for Ku band mainly in the South Hemisphere where most

of the transit journeys happen from Asia to America and viceversa passing by Cape Town, South Africa

• Allow to use SeaAccess rates month to month rates considering the customer has a long term contract with Harris CapRock already

• Provide same SLA than Energy Packages during the Journey• For Ku band provide Backup with Iridium Open Port + Iridium Phone (prepaid

amount for emergencies)• Use same Energy Package Ku band TDMA equipment for SeaAccess during

the journey and change equipment if needed for destination (SCPC if required)

• Charge similar rates as SeaAccess, with targets in the range for 4 to 8 K USD depending on the rates available (128 K, 256 K, 512 K suggested)

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Product Development Targets

• SeaAccess for Energy Transit– Higher than regular SeaAccess traffic– Competitive vs other alternatives– Lower than estimated pay-per-use satellite services on transit with certain average

Mbytes and VoIP minutes used.

• OBM Plus– Achieve more than 99.5% availability– With Roll Over using Pay-Per-Use mobile satellite services– Without Roll Over

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SeaAccess as Transit LinkedIn version

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