Satellite Executive Briefing 1 November 2011

Industry Trends, News Analysis, Market Intelligence and Opportunities

Vol. 4 No. 10 November 2011

The Military Satellite Market

by Virgil Labrador, Editor-in-Chief

T he mood at satellite conferences when the

subject of the military satellite market comes

up for discussion is decidedly not as upbeat as it was several years ago. But despite looming

budget cuts and a drawdown of the major conflicts in

in Iraq and Afghanistan, it is definitely not down

either.

At the West show in San Diego ear-

lier this year, Jim Loizelle, Vice-

President, Federal Operations of

Accenture said that ― The military is

going to look at systems that are less

risky to build and less major pro-

grams. Military requirements are expanding exponentially, even with

the drawdown and will continue to

do so,‖ he said. ―There will in-

creased competition among the

commercial vendors, but the de-

mand is not going to go away and

there won‘t be a dramatic drop off,

there might not be a dramatic in-

crease but there won‘t be a big dro-

poff in military spending,‖ added Loizelle.

Despite all the attention that budgets cuts have been

getting in the media, the U.S. military budget from

2009-2010 has actually remained the same or in-

creased slightly. However, major cuts are definitely

in the offing. With the total troop withdrawal in Iraq

scheduled for the end of this year and the pullout

from Afghanistan scheduled in 2014, the U.S. mili-

tary budget will see some significant changes.

―For the past decade, we have lived in a world where

we can meet new security challenges with increased

resources. Those days are over. We are going to

have to make hard choices. Our challenge is to ac-

commodate changing fiscal circumstances without undercutting our military effectiveness,‖ said U.S.

Deputy Defense Secretary William Lynn at a DISA

Customer and Industry Forum in Baltmore last Au-

gust.

The main target of the budget

cuts are big-ticket items like the F-35 Joint Strike Fighter

and the C-17 transport plane.

The U.S. Department of De-

fense (DoD) also cancelled the

Transformation Satellite Com-

munications Program (TSAT).

Despite these major cuts, the

commercial satellite industry

anticipates that military de-

mand for satellite communica-

tions services will continue to grow.

Jay Icard, Vice-President of

Government Services for TeleCommunication Sys-

tems, said that ―there is a continuing requirement for

communications solutions as the market transforms.

You look at C4ISR (Command, Control, Communi-

cations, Computer and Intelligence, Surveillance and

Reconnaissance), there will always be communica-

tion requirements for these. Last year we saw some

delays in budget approvals but we‘ve had a good run

in the last few months in terms of new business com-ing in, as there is always the need for more band-

width by our military.‖

...Continued on page 4

What’s Inside

Changing the Way You Buy and Sell Satellite Services by Howard Farr…...6 The Internet and the Future of Satellite by Robert Bell……20 Executive Views: GSS Deputy Director General Igor Kot…..9 ITU Sec-General Hamadoun Touré..14 Show Report: ITU Telecom 2011..12 MILCOM 2011 MarketPlace….…...16 Regional Focus: The South East Asian Market….….19 Industry Briefs…...22 Market Briefs…….24 Vital Statistics.......28 Events Calendar/ Ad Index……….….29 Stock Index……....30

The drawdown in the Allied presence in Iraq and Afghani-stan will have an impact on military budgets.

November 2011 2 Satellite Executive Briefing

and at the ISR SUMMIT 2011

Satellite Executive Briefing 3 November 2011

EDITORIAL Virgil Labrador Editor-in-Chief virgil@satellitemarkets.com Elisabeth Tweedie Associate Editor elisabeth@satellitemarkets.com Contributing Editors: North America: Robert Bell, Bruce Elbert, Dan Freyer, Lou Zacharilla Latin America: B. H. Schneiderman Europe: Martin Jarrold, London Jan Grøndrup-Vivanco, Paris Roxana Dunnette, Geneva Asia-Pacific: Peter Galace, Manila Tom van der Heyden, Hong Kong Riaz Lamak, India

ADVERTISING

Michelle Elbert Director of Marketing

michelle@satellitemarkets.com

Satellite Executive Briefing is published monthly by

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SYNTHESIS PUBLICATIONS LLC P.O.Box 4174

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©2011. No part of this publication may be reprinted or reproduced without prior written consent from the publisher.

From the Editor

A fter several delays, the long-awaited launch of the all-Ka-

Band Viasat-1 satellite finally lifted off October 20th from the Baikonour Cosmodrome in Kazakhstan. Viasat-1 will pro-

vide 140 gigabits per second of capacity, which is 14 times more

than the previous record held by Hughes‘ Spaceway-3 satellite.

Viasat-1 is scheduled to be operational in December 2011 which will provide

much needed additional capacity to the US consumer broadband market.

The successful launch of Viasat-1 is significant as more and more Ka-Band

satellites are entering the market in other regions such as Europe, the Middle

East, Africa and Latin America where there are insatiable demands for band-

width for various applications. ―Viasat-1 is designed to transform the econo-

mics and quality of service that satellite broadband can provide,‖ said Viasat‘s

CEO Mark Dankberg. With other Ka-Band satellites coming on board, it will be interesting to see how Viasat-1 fares over the competitive consumer broad-

band and other markets.

In our cover story this month, we look into the changing military and govern-

ment market. One of the most promising segments of that market is the provi-

sion of Ka-Band services.

Also, this month, Satellite Markets and Research will be exhibiting at

MILCOM 2011 in Baltimore, Maryland from November 7-10 We hope to see

you there. Drop by our booth # 157 anytime.

Viasat-1 Finally Takes Off

Go online and view videos from SATCON 2011 and SSPI Southern California Event

Jay Icard, VP-Government Solutions

TeleCommunication Systems

www.satellitemarkets.com/current

Jim Ferris, Sales Manager

C-Com Satellite Systems

Jörg Schmidt, President and CEO

Dev Systemtechnik

Virgil Labrador, Editor-in-Chief

Satellite Markets and Research

November 2011 4 Satellite Executive Briefing

Military/Government Market...from page 1

Cover Story

Research firm NSR has identified that

the government and defense markets

need to anticipate increased data, video

and voice rates over satellite. NSR‘s

report highlights a trend in the US, now being seen worldwide, of a rapidly in-

creasing demand for communications

over satellite. This is driven by the in-

creasing numbers in video and data

traffic by Unmanned Aerial Vehicles

(UAVs) and manned aircrafts, as well

as advances in fixed government com-

munications and national security tech-

nologies.

Jose Del Rosario, Senior Analyst, NSR,

said ―cost considerations in the time of expected budget tightening coupled

with tremendous pressure to offer crea-

tive solutions to address complex mis-

sion requirements for data and video

should lead to tighter commercial part-

nerships over the long term. The com-

mercial opportunity for the government/

defence should grow at healthy levels.

From $3.2 billion in 2009, NSR fore-

casts revenues to reach $9.2 billion at

the end of 2019 with a representative Compound Annual Growth Rate

(CAGR) of 10.9%."

Hosted Payloads

As an alternative to the military build-

ing and operating their own satellites,

which can be a costly and long-drawn

out process, the commercial satellite

industry has been offering ―Hosted Pay-

loads‖ on its satellites where the mili-

tary can lease specific transponders or whole satellites at a fraction of the cost

of their building, launching and operat-

ing one themselves. Hosted payloads

also shorten the lead times necessary to

build and launch satellites.

Satellite operators Intelsat, SES and

Iridium has been marketing hosted pay-

load to the government and military

markets for a few years now. Satellite

manufacturer Boeing, which is building hosted payloads satellites for operators

such as Intelsat, formed a new division

earlier this year to focus on marketing

hosted payloads.

Military Demands Outside the US

In the coming decade, we will definitely see a shift in the global security respon-

sibilities from the U.S. to other

regional players. Countries such as

Australia, Japan, Brazil and other U.S.

allies are expanding their military and

defense capabilities which should more

than make up for any reductions in the

U.S. defense spending in the coming

years.

Opportunities in the Ka-Band Space

The Wideband Global Satcom system

(also called the Wideband Gapfiller

Satellite system), a joint project of the

U.S. DoD and the Australian Depart-

ment of Defense will have significant

number of Ka-Band transponders in the

system. Satellite equipment manufac-

turers are preparing for the increased

demand in Ka-Band terminals which

will be smaller and more portable than

existing Ku-Band equipment.

New Ka-Band satellites that have been

recently launched and will be launched

by commercial satellite operators can

also be tapped for the military and

government requirements.

Other Markets

While there might not be major wars in the coming decade, global security re-

mains a top priority and will require

huge investments in infrastructure.

Border security will continue to be a

major concern and as we have seen sat-

ellite technology can play a vital role in

surveillance and intelligence operations.

One other market where there will be

continued demand is in disaster prepar-

edness and management. The require-ments of disaster management and

emergency response operations are

very similar to military requirements in

that they need to operate in rugged en-

vironments under adverse conditions.

Thus most satellite equipment and ser-

vices that are used for military applica-

tions can easily be configured for the

disaster management markets.

There are certainly many opportunities

within and outside of the military mar-ket for satellite companies. By all indi-

cators, the military‘s demand for satel-

lite capacity will continue to increase in

through this decade and beyond and

will always remain a vital and signifi-

cant market for the commercial satellite

industry.

Virgil Labrador is the Editor-in-Chief of Satellite Market and

Research based in Los Angeles, California. He is the author of two

books on the satellite industry and has been covering the industry

for various publications since 1998. Before that he worked in vari-

ous capacities in the industry, including a stint as marketing direc-

tor for the Asia Broadcast Center, a full-service teleport based in Singapore. He

can be reached at virgil@satellitemarkets.com

“...For the past decade, we have lived in a world where we can meet new security challenges with increased resources. Those days are over. We are going to have to make hard choices. Our challenge is to accommodate changing fiscal circumstances without undercutting our military effectiveness…” —U.S. Deputy Defense Secretary William Lynn

Satellite Executive Briefing 5 November 2011

November 2011 6 Satellite Executive Briefing

Feature Feature

by Howard Farr

I magine your first day on the job. You‘re new. No one

knows who you are. In fact, you‘re a new company, fac-

ing uncharted territory. You need satellite space, but perhaps before that a managed service? You don‘t know the

industry players. You‘ve got a big, cumbersome directory

full of lists. You have found the satellite operators and the

managed service providers in their respective categories.

You‘ve done some research. You know the names. You may

have even met some of the industry professionals at a trade

show or through contacts of contacts. You peel back the lay-

ers: the various platforms and technologies, the satellite

fleets, the types of satellite, the frequency bands within

which they operate. You have a

growing stack of business cards

and from these, e-mail ad-dresses.

Before you start to contact the

e-mail address or telephone

number to etch out your service

enquiry you wake with a start.

You‘re not new at all. You have

been doing this for ages. You

are a character in this industry.

People know you. Before the

coffee has brewed you remember that you did not receive back that call about some hotly-contested, high in demand

satellite space capacity that you desperately need. It‘s not

that your supplier is a sloth: he‘s very busy; he‘s on travel in

another time zone; everyone wants a piece of him or her; you

are not the only game in town.

What if, notwithstanding corporate customer intranets, the

labyrinth of opportunistic resellers, you had an interactive

window display, a postings board that complemented your

usual day-to-day trading activity?

Growth in the Reseller Market

In the current economic climate an increasing number of

parcels of satellite space are being sub-leased as organiza-

tions trim costs, aim to increase EBITDA and make efficient

use of contractually committed resource. You hear stories of

the major players having to track down and buy back their

own capacity from other parties in order to satisfy their cus-

tomer order book. How do they get to correlate where all this

type of trading activity occurs? How do the new entrants

know where the reseller capacity is? How do they find the

available inventories for sale without trawling through multi-ple avenues of enquiry?

Accelerate the Handshake

How is the buying and selling of satellite space and managed

services changing? Is it purely transactional and becoming

more commoditized? Will a no commission, web-based mar-ketplace catch on where the buyer and seller can find each

other instantaneously and for a much reduced cost of sale?

SatServMarket (www.satservmarket.com) envisions that

when the majority of buyers and sellers of satellite space and

managed services are using the web-based marketplace, it

will serve to reduce costs and greatly improve the time his-

torically required to find new trading partners, and close the

deal.

SatServMarket is a complementary sales

and purchasing channel, one that rein-forces sales team activity. The deals are

made directly between the buyer and the

seller. SatServMarket facilitates the con-

tact and does not charge a commission.

When you search a Satellite Space or

Managed Service Offered ad on

SatServMarket, you open the View Ad

window to provide you with the satellite

operators‘ own coverage map link and the

direct e-mail contact details of the com-

pany e-mail address that placed the ad, whether a salesperson or the web marketing team.

What about Relationships?

In my career I have worked for many burgeoning carrier

services providers and satellite operators and have extensive

experience of building relationships with major channel part-

ners in the mobile/cellular and land/maritime VSAT markets,

as well as smaller, niche players. The relationship is key, no

doubt.

SatServMarket looks to reinforce the relationship. During market research, an industry expert stated that we will never

replace the human relationship. That is true and not the mis-

sion of SatServMarket. Many service requests are certainly

non-trivial in their need for the most skilled and professional

expertise. Others, well-known in the satellite industry, have

complimented some of their suppliers with their consistency

of good sales and purchasing response times. These same

individuals have too often reported supplier complacency,

arrogance, a lack of response and an environment of dealing

with ‗corporate ghosts‘.

SatServMarket is simply an additional sales and purchasing

Changing the Way You Buy and Sell Satellite Services

Satellite Executive Briefing 7 November 2011

November 2011 8 Satellite Executive Briefing

Feature

The Hispasat/Hispamar fleet of satellites provide state-of-the-art technology with the latest on-board processing and innovative solutions for the American market. We can provide leading-edge, end-to-end services for broad-cast, broadband, enterprise and military/government applica-tions.

Your Gateway to the US and the rest of the Americas and beyond

www.hispamar.com.br

www.hispasat.com

tool that can be used by large corporates, resellers, smaller

start-ups and as a first-stop shop for those new to the myriad

network of service providers and suppliers. SatServMarket

has handled the more transactional side of business already

with capacity sales both on satellite spacecraft and on estab-lished managed services platforms. The most prominent or-

ganisations in our industry recognize the existence of a sec-

ond-hand and even a third-hand market. SatServMarket can

accommodate these and the prime market all under one site.

„Where Serious Buyers Meet Serious Sellers‟

Take a look at www.satservmarket.com and register as a

Trading Member. Join the authorized, registered user com-

munity. Upon registration and authorization as a Member of

the Trading Group you will be issued with unlimited use of

the site in the introductory period: you can post a Corporate Advert and quickly compose Selling Adverts offering Satel-

lite Space and Managed Services. The bulk of the FSS fleets

is already loaded into the ad composition piece of Sat-

ServMarket. Post ―unloved/unwanted‖, inclined orbit and

premium services. Check it out, give it a try. It‘s not as if

you are exposing your entire unutilised inventory. Which

salesperson continually pushes ―unloved/unwanted capac-

ity‖? How does that salesperson reach those new companies

he or she cannot possibly know about? SatServMarket has

members from the UK, Israel, the USA, France, the Nether-

lands, the UAE, South Africa, Germany, Eqypt, Kuwait, Pakistan, Ireland, Saudi Arabia, Kenya, Indonesia, Canada,

Jordan, Belgium, Nigeria, Australia, Italy and Slovenia.

You post your ad. Sellers and buyers deal direct. There are

no Third Party commissions. No pricing is displayed. Sat-

ellite Space & Managed Services Offered. On-line Members'

Directory. Suppliers & Equipment listings.

View available inventory on-line. Reduce your cost of sales.

Reinforce Sales Team activity. Maintain backlog revenue.

Connect more quickly and efficiently on available capacity

and services.

Howard Farr is a carrier services and satellite communications executive with over 30 years international field and management experience in markets across Europe, the Middle East, Africa, Central Asia, Russia and the CIS. He

can be reached at: hfarr@satservmarket.com

“...when the majority of buyers and sellers of satellite space and man-aged services are using the web-based marketplace, it will serve to reduce costs and greatly improve the time historically required to find

new trading partners, and close the deal…”

Satellite Executive Briefing 9 November 2011

Executive Views

Igor Kot, Deputy Director-General, Gazprom Space Systems

What is the significance of your recent

strategic partnership with SES? How

will this improve your company's posi-

tion in the market?

This is the first time we have entered into such a strategic agreement with

another operator. Our main purpose was

to start our business development ac-

tivities for our new orbital slot 55E be-

fore the launch of the Yamal-402 satel-

lite at this position at the end of 2012.

The idea behind this scenario is to pro-

vide for the continuity of services be-

tween the temporary and permanent

satellites, allowing our clients smooth

transition from ASTRA 1F to Yamal-402. Once it becomes operational, Ya-

mal-402 will have higher power and

wider service coverage over Russia.

We hope ASTRA 1F will relieve the

acute situation of scarcity in terms of

domestic satellite capacity in the Rus-

sian market.

To be honest, SES was not the only

international satellite operator we had

similar discussions in the past. It turned

out that in this case our interests met, they definitely had what we needed, so

the deal was concluded in a very short

time. Also we hope to extend our part-

nership in the future. We see this part-

nership as benefiting both parties in the

mutual promotion of new satellite

capacity in different markets.

To develop satellite services provision

for the Russian market we are building

a new modern teleport facility. We hope

to leverage the extensive experience of

SES ASTRA in their core competency

and expertise in the TV broadcasting

and broadband services for the con-

sumer market.

A new satellite always presents new

opportunities for all players involved.

For the operator/service provider, it

represents a new asset to that can gener-

ate revenues, and a new base to develop

business in line with technical develop-ments to meet the growing expectations

of customers. For end users, it is a new

offering that ensures new services and

makes existing ones more affordable.

The introduction of new capacity is

always a driver for new service devel-

opments and expansion. New capacity

for the market is like fresh air in a

closed space. It enhances the market‘s

level of health. All that improves an

operator‘s economic position and over-all image in the market. For example

when we announced the ASTRA 1F

deal at the IBC we immediately felt the

increased interest from the satellite

community. And hopefully this is only

the beginning…

What can we expect from Gazprom

Space Systems in 2012? What are your

targets for next year?

We are hopeful and we will do our best in order that 2012 will become one of

the most significant years in the history

of our company. We expect two satel-

lites to be launched next year. The first

will be Yamal-300K aimed at strength-

ening our Russian business at 90E in

May 2012 and then in October 2012

Yamal-402 will be launched in the 55E

slot to support ASTRA 1F in the Rus-

sian market and increase our coverage

and capabilities for the international

market. The importance of these long-awaited events is obvious and so all our

main activities will revolve around

them.

What markets segments or regions will

you be focusing in the next few

months?

The regions and market segments that

O ne satellite company that is aggressively pursuing expansion plans is Russia-based operator Gazprom Space Systems (GSS). At the recent IBC show in Amsterdam, GSS an-

nounced that it entered into a strategic partnership with global sat-ellite operator SES to provide additional satellite capacity to serve the Russian market. Under the terms of a multi-year agreement, SES has re-located its ASTRA 1F satellite previously located at 51 de-grees East to the orbital location 55 degrees East. GSS will utilize 16 Ku-band FSS transponders on the ASTRA 1F satellite to provide communication services for Western Russia prior to the launch of GSS’ Yamal-402 satellite in 2012. In return, SES will use capacity on GSS’ Yamal-402 once it becomes operational at 55 degrees East. Yamal-402 is currently under construction and scheduled for launch in October 2012. To shed light on this agreement and their future plans, Satellite Executive Briefing spoke to GSS’ Deputy Director-General Igor Kot. Excerpts of the interview follows:

Igor Kot

November 2011 10 Satellite Executive Briefing

interests us are predetermined by the

parameters of our new satellites to be

launched next year and the interests of

our main shareholder Gazprom.

As I already mentioned Yamal-300K

will add new capacity to the Russian

market thereby enlarging the volume of

our current, one can call, traditional

services, ie. Data, Internet and TV dis-

tribution. And to be prepared, we up-

dated our own infrastructure and per-

form some ―educational‖ work among

our customers in order that their infra-

structure will also be ready to interface

with our new satellites. Also Yamal-402

beams will be high powered beams. So

we are exploring the opportunities for new services for Russia including DTH

TV and broadband for the consumer

market.

Yamal-402 will extend our presence on

the international market. Together with

Russian beams it will have European,

African fixed beams and steerable beam

can be pointed over for example, to

Australia or to South Africa–all new

regions for us that will be in our focus in the coming years.

How do you plan to address the mar-

kets you are targeting?

With regards to the Russian market,

which is our main target, it is new high

quality capacity for traditional and new services.

The international market is also very

important for us in order to distribute

the commercial risks involved in this

business. Our Yamal-202 at 49E is well

known among our international clients

from the Middle East and South East

Asia. Now a quarter of our annual reve-

nue comes from the international mar-

ket. We hope Yamal-402 will support this ‖ business tradition‖ and lead us to

the new markets such as the African

and may be the Australian markets.

Here our partnership with SES or any

other operator can play a significant

role.

In conclusion I would like to note that

we are very excited with these long-

awaited events in the coming year–our

new satellites launch. We can be very

optimistic as we feel well prepared to

meet the challenges and opportunities ahead.. We have a team of highly quali-

fied professionals, a new teleport, wide

client base, favorable market situation

and established partnerships. What else

do we need? Just good luck! We are

confident that we will achieve our

goals, because as the saying goes:

―Walk and ye shall reach.‖

The agreement between SES and GSS will move the ASTRA 1F satellite to the 55 E orbital position and will operate there until the Yamal-402 satellite is launched in that position in October 2012. GSS will have exclusive rights to all of ASTRA 1F’s available capacity of 16 Ku-band transponders. This will give GSS a jump start on their marketing efforts prior to the launch of Yamal-402 next year and address the current shortage of available capacity in the Russian market. (image courtesy of GSS)

Executive Views

“...A new satellite always presents new opportu-nities for all players involved. For the operator/service provider, it represents a new asset to that can generate revenues, and a new base to develop business in line with technical develop-ments to meet the growing expectations of cus-tomers. For end users, it is a new offering that ensures new services and makes existing ones more affordable…”

Satellite Executive Briefing 11 November 2011

November 2011 12 Satellite Executive Briefing

I TU Telecom World took place in Geneva, Switzerland

from 24 to 27 October 2011, an event that focused on the

latest technologies, services, regulatory issues and trends

in the telecommunications sector.

It was also the 40th anniversary of the ITU Telecom event

that started in Geneva in 1971. This year‘s event was the 12th

edition, having been previously held every four years. Over

300 VIPs, head of states and governments, ministers, CEOs

of global corporations attended the event this year to cele-

brate this important milestone.

“Broadband for the Global Good” and “Forum for

Change” were the main focus but also featured thematic

exhibitions and national pa-

vilions showcased applica-

tions, smart living and digi-

tal innovations.

―As the leading UN agency

for ICT issues, ITU is

uniquely positioned in being

able to bring the public and private sectors together for

ITU Telecom World, opening

doors that otherwise remain

shut, stimulate debates that

without it would remain si-

lenced and creating networks

of industry peers who to-

gether can drive real global

change,‖ said ITU Secretary-

General Dr. Hamadoun

Touré.

The main event was however

the ―Broadband Leadership Summit‖ that set the tone for

the role of broadband as a critical infrastructure for economic

growth, climate change challenges, knowledge and education

on global access.

The Broadband Commission for Digital Development

held on 23 October, under the patronage of President H.E.

Paul Kagame of Rwanda and ITU Secretary-General Dr.

Touré set four new targets for 2015 to stimulate the global

introduction of broadband at accessible prices:

1. Making broadband policy universal. By 2015 all

countries should have a national broadband plan or stra-

tegy to conform to Universal Access Services.

2. Making broadband affordable.

By 2015 first level of broadband ser-vices should be made affordable in

developing countries at a cost of less

than 5% average monthly household

income.

3. Connecting homes to broadband. By 2015 40% of

households in developing countries should have Internet

access.

4. Getting people online. By 2015 Internet user‘s penetra-

tion should reach 60% worldwide, 50% in developing coun-

tries and 15% in Least Developed Countries (LDCs).

In order to achieve those targets and bring the benefits of

ICTs to all, the political will

is necessary together with

private sector commitment

and requires work at the local

level to develop the adequate

policy and regulatory frame-

work, business models and

financing, introduce fair taxa-

tion and stimulate content production in local lan-

guages.

A broad spectrum of subjects

were discussed in other ses-

sions including: Cloud com-

puting, Internet of the Future,

Mobile Banking, LTE De-

ployment, Cyber Security,

Transition from Analogue to

Digital TV, Climate Change

and ICTs, E-Health, Child Online Protection, Connec-

tivity on the Move, Broadband in the developing world,

among others.

A special one-day event has been dedicated to ―Digital

Cities‖ where mayors, experts in utilities, city planners and

technology innovators gathered to discuss the urban future

where physical and virtual realities are connected.

With the WRC-12 conference coming up in January 2012

several sessions have been dedicated to spectrum issues. Some ideas came up as good initiatives to the efficient use of

the spectrum like: good migration from one generation to

another, from narrowband to broadband convergence of net-

works and services, and optimization of what we have .

The ITU sets aggressive targets for broadband access

ITU Telecom Celebrates 40th Anniversary

by Roxana Dunnette

The ITU Telecom World event celebrated its 40th anniversary this year. Major changes were made to the format of the event, foremost of which was the change in frequency from every fours years to an annual event. (photo courtesy of ITU)

Show Report

Satellite Executive Briefing 13 November 2011

at the United Nations in New York and the International Tele-communication Union as US government representative. She can be reached at: roxana.dunnette@ties.itu.int

Roxana Dunnette is the Executive Director, of R&D MEDIA, based in Geneva, Switzerland. She has had an extensive career in Broadcasting and media including senior management positions at Worldspace, CBS and PBS in New York covering primetime sports and news events, and interna-tional telecommunication activities through work

Mobile broadband will require a lot of bandwidth and in or-

der to avoid spectrum scarcity some possible measures have

been discussed as well:

Taxation and the best way to provide coverage by rein-

vesting in the sector;

Digital dividends to be used for convergent services to consumers;

Video as the driver for local broadband content;

Convergence of networks, ie. cable, satellite & wireless;

Reducing the response time (now 10-11 years) from the

allocation of spectrum to entry into use of the service;

Use of the white space;

Improvement of fixed networks;

Cognitive management of the spectrum;

Consolidation of networks, and sharing of networks in

rural areas.

Developing countries not having much terrestrial infrastruc-

ture rely heavily on mobile services and have difficulties to

reduce the digital divide as they have to face the challenge

coverage obligations vs. spectrum allocation.

Although this was not a dedicated satellite conference some

speakers emphasize the role of satellites in bridging the digi-

tal divide and achieving the United Nations‘ Millennium

Goals.

One was O3b Networks which announced US$ 1.5 billion in

fundraising to deliver broadband content to 177 countries

using a constellation of satellites. That will help the decen-

tralization of Internet traffic, offer good quality video and

affordable mobile broadband in developing markets.

On the exhibition floor some applications using satellites are

worth mentioning:

The African country of Gabon presented ―Surveillance

Environnementale Assiste par Satellite‖ (SEAS) an in-

novative Central African project that resulted from the

Copenhagen Convention on ICT and Climate change.

The project will use satellite teledetection system for the

responsible management of resources in Central Africa.

The Excellence Center and the station uplink in Libre-

ville with a radius of 2800km will process data and high definition images from satellites to monitor and manage

forestry resources, water, urbanization and climate

change.

CONECTADA was the name of the Argentinean pavil-

ion showing the country‘s satellite network covering

all remote areas for distribution of full video Internet

content.

The Japan pavilion highlighted the concept of ―Smart

Living‖ with Smart networks featuring applications

such as digital signage using solar power, intruders‘

detection, speech to speech translation on smart phones,

and personal authentication technologies. The Pavilion

also displayed new Disaster Readiness Measures using

satellites. Japan is committed to re-establishing commu-

nications in disaster affected areas by making greater

use of satellite and wireless communications as a prior-

ity and the establishment of a reliable broadband wire-

less communication system in a smart society using satellite-terrestrial hybrid systems.

ICT QATAR & Partners presented MADA, the Qatar

Assistive Technology Center in Doha where people with

various disabilities can access Internet, study, read

books, play games using assistive technologies now

available on the market.

ITU Telecom World event attracted 6,500 on-site partici-

pants, 332 global leaders in the Broadband Leadership Sum-mit and 234 exhibitors from 41 countries. A global audience

of 10,000 schools, 100,000 telecenters and hundred of thou-

sands of people were connected via webcasting and twitter.

The Forum concluded with a ―Manifesto for Change,‖ cre-

ated from all discussions that took place at the event with

Heads of states, ICTs ministers, industry leaders and partici-

pants on site and from around the world. The Manifesto rec-

ognizes the importance of broadband for socio-economic

development in a connected world and a knowledge society

where ―communication is a human need and a right.‖ ITU

encourages world leaders to take appropriate regulatory and policy measures to facilitate private sector implementation of

this change.

A major change announced this year at the show is that the

ITU Telecom World will now be held every year with

the next one to be held in Dubai, UAE in October 2012.

November 2011 14 Satellite Executive Briefing

At the recently-concluded ITU Telecom event in Geneva, Satellite Executive Briefing correspondent Roxana Dunnette spoke with the ITU’s Secretary-General Hamadoun Touré on the new ITU Telecom format and other issues. Excerpts of the interview:

As one of the most influential persons in the telecom indus-

try you have a personal involvement in broadband deploy-

ment with the creation of Broadband Commission for Digi-

tal Development. How is the satellite industry participating

in this program?

As you know my background

is in satellite engineering and

I highly value the satellite

business. In any service and

application, satellite techno-

logy is very important. I am happy to have four satellite

companies represented in the

Broadband Commission and

we invite more as we recog-

nize how important broad-

band is for the satellite indus-

try and how satellites are

important for broadband im-

plementation. Together in the

Commission we see the im-

portance to promote broad-band as key enabler to meet the Millennium Development

Goals and there is no better technology then satellites to

reach the remote corners of the world. They are all within the

reach of satellite communications therefore there are many

opportunities to link all remote areas of the world.

How can the use of satellites contribute to the creation of

content and m-applications in developing countries and

remote areas?

I think there is a bad perception regarding the cost of satel-

lite links. They do not cost more but the satellite industry has to do more to take away this perception. There is no better

way to connect rural areas other then the satellite to bring the

wealth of knowledge and applications, from health applica-

tions to mobile banking, education and to create a positive

impact by bring social-economic development to remote

areas. That‘s why we are linking the broadband with the Mil-

lennium Development Goals for people to create wealth and

go beyond poverty reduction. Information Communication

Technologies (ICT) industry, and satellite is part of it, has

shown that this is the one creating new jobs in developing

and developed countries. Two-thirds of new jobs are in this sector. If technology is based on innovation, and innovation

is one natural resource driven by the brain—a natural re-

source equally distributed everywhere, we need to see at

country level the creation of right legal and regulatory condi-

tions for private sector to come in and governments need to

put in place national strategies clear enough to become road maps for private sector to invest giving new opportunities for

job creation.

What about the role of the ITU in shaping the strategy for

broadband implementation?

There are national strategies in place and our role at ITU is

to share the experience so people

do not have to reinvent the wheel or

waste time, we share good and bad

practices. It could be an irony to

live in an information society and not make the right decisions be-

cause of lack of information.

This is the reason we organized the

Broadband Summit at ITU World

Telecom in Geneva where the

Broadband Commission presented

its report to the UN Secretary-

General so every country can put

broadband high on the agenda. The

financial crisis in the world will be solved through ICT, this is where

new jobs are created, and the

wealth will be created by implementing the right policies for

the benefit of individual countries.

Are you happy with the new Telecom event format, where

high level people meet, discuss and make things happen?

I am very happy that at the last Plenipotentiary Conference,

ITU members took into consideration my recommendation

of an annual event. Four years was too long to wait for the

next event. Even one year is too much in this fast changing business. It will be annual, more interactive, less formal

speeches, more debates, more political and industry leaders

will come together to work hand in hand. At this time of

financial crisis there is a need for Telecom to be seen as an

World ICT Forum where we can invite heads of states and

leaders at the highest level and discuss at the same table how

ICT can improve people‘s lives.

I hope that in the last five years I was able to bring the

organization to adapt to the new environment characterized

by convergence, change, global E-commerce and green economy as well at the time when we are facing multiple

challenges from climate change and global crisis to bringing

health and education to all citizens. This can be done only

through use of ICTs.

Executive Views

ITU Secretary-General Hamadoun Touré

ITU Secretary-General Hamadoun Touré sur-rounded by schoolchildren in one of his many field visits. (photo courtesy of ITU)

November 2011 15 Satellite Executive Briefing

November 2011 16 Satellite Executive Briefing

Products and Services MarketProducts and Services MarketProducts and Services MarketPlacePlacePlace

A guide to key products and services showcased at Milcom 2011 exhibition in Baltimore, Maryland from November 7-10, 2011.

Agile Milcoms Booth no. 720 www.agilemilcoms.com

Agile Communication Systems (ACS) is a full service

communications design and integrator providing superior RF

communication services to government, military broadcast, mobile vehicles worldwide. Our focus is to offer the highest

level of services to clients worldwide base by assimilating

the latest in both digital and analog communications tech-

nologies and products.

The Man-Pack Satellite

Terminal (MST) is a port-

able communications

system consisting of

a .75m satellite dish, tri-

pod, and modem which

are conveniently carried in a backpack for easy,

remote use. The system

can be configured to ac-

commodate various up

and down bandwidths. With Advanced DVB-RCS/S2 the

system is capable of uplinking over 1 Mbps of usable band-

width. Slightly larger antennae can yield higher uplink band-

widths.

The MST-100 is available in two models: MST-100 with

Computer Assisted Pointing (CAP) and MST-100M (motorized pointing).

Cobham Tracstar Booth no. 931 www.cobham.com/tracstar

Cobham‘s TracStar line of products

includes In-Motion VSAT and TV

Systems, On-the-Pause vehicle mount

and Fly-Away antenna systems with all

ancillary communication equipment.

The TracStar ACU, antenna control

system, is now the standard of measure

for auto-acquire and auto-deploy an-

tenna systems throughout the world.

The LVT Series lightweight manual

terminal is the ultimate in portability, featuring an 8-segment shaped parabolic composite reflector. Operates in Ku-, Ka–

or X-Band. BUCs and LNBs are available as well.

Comtech Xicom Technology

Booth no. 743 www.xicomtech.com At Milcom, Comtech Xicom will be introducing a number of new products that increase linear power in smaller pack-

ages with greater efficiency. These products are designed for

transportable and fixed applications where size weight and

power are critical factors in mission success.

NEW 40 Watt Ku-band BUC

The Xicom Technology Model XTS-40KHE-B1 BUC, is the

perfect solution for commercial and military users ready to

take advantage of available Ku-band capacity. Break-

throughs in efficiency enable Comtech to offer 40 Watts of

1 dB compressed output power in a self-cooled, feed-mountable, package that consumes only 300 watts. It draws

only 210W when operated at linear power.

NEW 20Watt Ka-band BUC in 18 pound package

The state-of-the-art XTS-20Ka1 is designed for military and

commercial high data-rate satellite communications uplinks

and is available covering 29.5 to 30GHz or 30 to 31 GHz. It

features 12 Watts of linear power in an 18 pound antenna-

mount package. It is very energy efficient consuming only

180 Watts in typical operation. This rugged, compact and

efficient product is optimized for transportable Satcom

terminals.

NEW 750W high efficiency Ku-band in the size weight

and power of a typical 400W system

The XTD-750KHE is a highly compact, rugged antenna

mountable power amplifier designed for high efficiency and

long life. The XTD-750KHE

design uses high effi­ciency,

dual-stage collector peak travel-

ing wave tubes (TWT) to fit a

750 watt rated amplifier into

the package size previously offered as a 400 watt TWTA.

Some ben­efits of this type of

tube are: significantly reduced

prime power consumption, lower internal operating tempera­

tures, and reliability enhancement.

NEW Compact Ka-band BUCs with more than 100Watts

of linear power

The XTLIN-110Ka-B1 High Power Block Upconverter is a

compact, fully integrated antenna mount units designed for

outdoor operation. The new high efficiency BUC is an ideal upgrade for military systems that were designed for SSPAs

but need additional linear power.

Man-Pack MST-100M

LVT Series Back Pack Series

XTD-750KHE

Satellite Executive Briefing 17 November 2011

Globecomm Systems Booth no. 1131 www.globecommsystems.com At Milcom, Globecomm will be showcasing its Auto-Explorer Multimedia Transportable Satellite Communica-

tions Terminals which provide high bandwidth, cost-

effective, two-way communications designed to meet the

demands of military units, governmental agencies, corpora-

tions, and other organizations to extend the reach of their

networks to remote locations where traditional telecommuni-

cations infrastructure is either inadequate or non-existent.

Applications include voice, fax, data, video, Internet and

LAN-to-LAN connections.

The 1.0/1.2-meter Auto-Explorer Satellite Communications Terminal

is a compact self-contained Ku-

band system that is packed into

three transport cases, which meet

the requirements for airline-

checked baggage. The Auto Ex-

plorer is designed to meet the per-

formance requirements of interna-

tional and regional satellite operators. One person can easily

set up the terminal in less than 15 minutes. The auto-

acquisition antenna peaks up and drives to the theoretical

cross-polarization position with base tilt correction.

Spacenet Integrated Government Solutions Booth no. 653 www.sigs-raysat.com Spacenet Integrated Government Solutions (SIGS) –

Supporting today‘s US military On-The-Move mission-

critical communication challenges.

Specializing in the development and provision of robust, low

-profile, in-motion, 2-way satellite antenna systems and

emergency communications systems, SIGS‘ SATCOM-On-

The-Move (SOTM) solutions are designed to enable highly

mobile users, such as the military, access to broadband con-

nectivity virtually anywhere supporting secure voice, video

and data transmission.

SIGS‗ RaySatTM line of StealthRayTM low-profile satellite

antenna systems provide government agencies the reliable

SOTM solutions they need to enable secure transfer of real-

time, reliable, broadband connectivity even from vehicles

traveling at a high rate of speed. Most importantly, the

StealthRay‘s low profile design does not alert the enemy

which vehicle is supporting vital communications, therefore

avoiding it becoming a high value target.

Walton De-Ice Booth no. 1502 www.de-ice.com

Walton De-Ice designs and manufac-tures the broadest line of equipment

available for preventing the accumula-

tion of snow and/or ice on satellite

earth station antennas. Walton De-ice

offers several options for heating in-

cluding, gas heaters with their economical operation advan-

tages or the low maintenance Stainless Steel Electric Heat-

ers.

At MILCOM, Walton De-ice will be providing demos of its

Ice Quake System configured to conform to military require-ments. The Ice Quake system (U.S. patent pending) en-

hances the reliability of de-ice and snowshield systems by a

factor of 100 percent.

Wavestream Booth no. 653 www.wavestream.com Wavestream ‗s field-proven solid state power amplifiers are

the choice for mission-critical SATCOM systems. Our Ka,

Ku, X and C-band amplifiers deliver higher power output in compact, rugged packages that use less energy and improve

reliability. Wavestream products are suited for extreme envi-

ronments, COTM, fixed installations, and fly-away terminal

applications.

What sets

Wavestream prod-

ucts apart from tra-

ditional amplifier

solutions is the com-

pany‘s patented

Spatial Power Ad-vantage™ technol-

ogy, which provides

high output power,

greater efficiency

and improved reli-

ability in more com-

pact product packages. Our products are field-proven, with

thousands of Ka- and Ku-band products in use today sup-

porting military ISR, Comm-on-the-Move, Comm-on-the-

Halt, flyaway, and fixed satellite communication systems.

We‘ve expanded our product offering to support C and X-band, helping meet the demand for additional band and fre-

quency options.

Wavestream products can now be found in VSAT, mobile

and fixed broadcast systems, SNG, and teleport applications

worldwide.

The Auto-Explorer deployed in the field

200W X-Band BUC

November 2011 18 Satellite Executive Briefing

Satellite Executive Briefing 19 November 2011

Regional Focus

The South East Asian Satellite Market

Martin Jarrold is Director of Interna- tional Programs of the GVF. He can be reached at: martin.jarrold@gvf.org

by Martin Jarrold

E conomic stagnation and finan-

cial uncertainty across U.S. and

European markets, the continu-

ing significant political unrest manifest

in the ―Arab Spring‖, the litany of man-

made conflicts and natural disasters

across the globe (including serious

flooding in Thailand, Cambodia, Laos,

and the Philippines), concerns over hy-

drocarbon-based energy supplies, con-

sumption, prices, and climate change

impact – short-, medium-, and longer-

term problems, and justified news head-

line-grabbers all!

But, over the medium- and longer-term, all is not doom and gloom, at least as

far as one of the key industry building

blocks of a number of Asia‘s economies

is concerned. During a recent World

Economic Forum (WEF), the President

of Indonesia described Asia as the

―continent of the future‖, and its pan-

national growth rate has placed the con-

tinent securely at the heart of the global

economy. With economic growth there

has been a parallel resurgence in the oil & gas industry – most clearly evident in

the South-Eastern region where a prolif-

eration of joint ventures and mergers

and acquisitions have been indicative of

the region‘s scaling-up on expertise and

technology to better meet its future en-

ergy needs.

In one country alone, in Malaysia,

South East Asia‘s regional energy secu-

rity framework is being consolidated

with joint ventures facilitating expertise and technology upgrades that are taking

place between foreign and local part-

ners. Similar developments and trends

are evident in relation to the oil (and

gas) resources of the Philippines, Cam-

bodia, Brunei, Thailand, Laos, and else-

where in the region, signaling a coming

of age of South East Asia‘s oil & gas

industry. Independent exploration &

production (E&P) companies and na-

tional oil companies (NOCs) have be-gun placing their investments in this

―continent of the future‖.

However, in regard to this regional re-

surgence in the oil and gas industry,

certain key questions must be answered,

specifically:

Is the regional O&G industry opti-

mizing its production and exploration

activities?

How can upstream domestic pro-

duction be enhanced?

What technologies are needed for

enhanced oil recovery?

The answers to these key questions lay

within the realms of multiple disciplines

and perspectives, but must include ref-

erence to the fact that mission critical operational success in the upstream

E&P environment is dependent on ac-

cess to the most efficient information

and communications technologies

(ICTs), and to the wealth of sophisti-

cated applications these technologies

bring to the disposal of the teams of

geologists, geophysicists, drilling engi-

neers, seismic data analysts, etc., etc.,

who locate new oil & gas reserves and

get them out of the ground and from beneath the ocean floor through the

collection of massive amounts of dispa-

rate data in multiple formats (including

GPS, acoustic, compass and other sen-

sor data) and using the information for

predictive analysis.

Such key issues on the current regional

oil & gas upstream (E&P) – and down-

stream refining and distribution – com-

munications and applications network-

ing agenda will be prioritized, together with other topic areas arising from the

international energy environment and

the wider global economy, during the

GVF & EMP conference Oil & Gas

Communications South East Asia

2011: „Redefining the Digital Oilfield

Onshore, Offshore, Deep & Ultra-

Deepwater‟ (O&GCSEA2011), which

will bring the GVF Oil & Gas Commu-

nications Series to its landmark 13th

event.

The questions cited above are only

some of the most recent additions to the

list of compelling reasons for this an-

nual event, which, once again, will fa-

cilitate an ICT-oriented dialogue at the

crucial interface of the demand for solu-

tions by the energy vertical and the sup-ply of those solutions from the commu-

nications industry.

Working in association with major oil

& gas industry-related organizations, as

well as the communications sector,

GVF & EMP have again chosen the

Crowne Plaza Mutiara Hotel in Kuala

Lumpur, as the venue for extended net-

working opportunities for communica-

tions end-user and solution vendor ex-

pert practitioners, set within the context of a conference program in which the

nature of the applications and connec-

tivity imperatives of the energy market

vertical will be fully addressed.

Communications solutions represent a

small fraction of energy companies‘

total CAPEX and OPEX, yet well-

managed ICT networks play a dispro-

portionately great role in reducing ex-

penditures not only in exploration, drill-ing, and production, but in every other

area of operations.

Over two days the conference will ex-

amine a combination of satellite-based

communications, and integrated satellite

-terrestrial hybrid communications solu-

tions, to which the oil & gas industry

upstream segment (and downstream

segment) turns to play a vital role in

providing the essential connectivity and

access to vital applications.

Details of the event program, which is

also supported by the Asia Pacific Sat-

ellite Communications Council

(APSCC), can be seen at the dedicated

conference website www.uk-

emp.co.uk/13th.O&GSEA.2011/.

November 2011 20 Satellite Executive Briefing

T he Internet is:

A. Good for the satellite business;

B. Bad for the satellite business; C. Both of the above;

D. None of the above

Which answer did you circle? Since the 1990s, when the

business of delivering Internet trunking via satellite emerged,

I think most people in the business would choose option A.

It is not so often that an industry finds a completely new line

of business, and delivering Internet connectivity to remote

regions certainly proved to be one. Yet the longer we live

with the Web, and the more it changes how we do things, the

more nuanced the answer becomes.

For one thing, there is the lingering concern that, sooner or

later, a ubiquitous high-speed Internet will take over many of

the applications currently delivered via satellite. We see the

early signs of this in digital newsgathering, where live

streaming and file transfer are on the rise as an alternative to

rolling the satellite truck. Sports, which once traveled via

satellite from most stadiums, now heads for the broadcast

center in IP format over fiber. Yet the launch of ViaSat-1

this month reminds us that the demand for cost-competitive

Internet is so strong, it has justified business plans that are

putting more than $5 billion worth of Ka-band spacecraft into space through 2014.

A recent report, Future TV and the Teleport, looks at the

impact of ―connected TV‖ – television to the computer, mo-

bile device, iPad or Web-enabled TV set – on the service

providers that make a living from video. The rate of change

is staggering. Informa Telecom & Media forecast in July

that, by 2016, there will be 1.8 billion ―in-home video de-

vices,‖ including tablets, so that 70% of all in-home video

devices will be able to connect to the Internet.

As interactivity becomes an essential component of the tele-vision experience, how will it affect the satellite business?

The experts interviewed for the report ranged from cau-

tiously optimistic to pretty darned pumped about the future.

The cautious ones noted that fast growth of alternatives to

linear TV consumption does not appear to be dampening the

appetite for linear content. Quite the reverse: the more ways

people have to consume media, the more media they seem to

consume. As one broadcast executive put it, "The alternative

media platforms are like parasites. The TV network and the

linear business are like hosts. If the parasites kill the hosts,

they die. The legacy engine needs to be sustained in order to grow these new businesses."

The cautiously optimistic group includes broadcasters, who

believe that ownership of content will increase their leverage

as media outlets proliferate,

and satellite operators, who

see demand for video distri-

bution continuing to grow.

The ―pumped‖ crowd is

made up in part of alternative

media distributors, as you

might expect. But teleport

operators, steeped in satellite technology, are equally ex-

cited. "Take a pay TV chan-

nel that is already distributed

on satellite to cable

headends,‖ one executive explained. ―Today, the same one-

way TV channel may be repurposed on fixed or mobile

broadband. That is additional business right there. But as

those alternate distribution paths develop – growing their

advertising and subscription revenues – they will want cus-

tomized offerings that exploit their interactivity advantage.

This need for customized content will drive higher content production, management and distribution volumes for every-

body."

Another executive reported already seeing ―a lot of demand

for archiving, format change, media asset management and

cloud solutions. Customers want content preservation, digi-

tal rights management for mobile and Internet markets. We

upgraded our global network last year to be all-IP and are in

the final stages of building a new state-of-the-art teleport to

support all the new services."

So, what do you know? If these teleport and satellite opera-tors are right, the Internet may turn out to be a good thing

after all.

Future TV and the Teleport is available free to WTA mem-

bers and for sale to non-members from the WTA Web site at

www.worldteleport.org.

Opinion

Internet and the Future of Satellite

by Robert Bell “...As interactivity becomes an essential component of the television experience, how will it affect the satellite business?…”

Robert Bell is Executive Director of the World Teleport Association, which represents the world's most innova-

tive teleport operators, carriers and technology providers in 20 nations. He can be reached at:

rbell@worldteleport.org

Satellite Executive Briefing 21 November 2011

November 2011 22 Satellite Executive Briefing

IndustryIndustryIndustryBriefsBriefsBriefs

Major industry news and developments

MERGERS & ACQUISITIONS

Konsberg Aquires Norspace Kongsberg Defence & Aerospace AS

has entered into an agreement to ac-

quire 100% of the shares in the Norwe-gian satellite equipment provider

Norspace AS.

Norspace AS was established in 2003

and is an extension of the former AME

Space and Alcatel Space Norway. Nor-

space AS currently has 95 employees

and supplies high-tech components and

equipment to the international space

industry. The company participates in a

number of international space pro-

grams, and the company's equipment is

currently on board more than 140 satel-

lites for customers all over the world.

Konsberg has for several years in-

creased its activities in space and sur-

veillance. Through the subsidiaries

Kongsberg Satellite Services and

Kongsberg Spacetec, the company is

leading in services related to ground

stations and satellite data. KONGS-

BERG currently operates a worldwide

network of ground stations, including

Svalbard and the Antarctic, and sup-plies high-tech solutions to NASA and

ESA, among others.

Pole Star Space Applications Completes Merger with

Application Software, Inc. Pole Star Space Applications Ltd. has

completed its merger with Absolute

Software, Inc. and Absolute Maritime

Tracking Services, Inc. Near Earth

served as the exclusive strategic and

financial advisor to the Absolute com-panies. Near Earth partner, John Stone,

remarked ―This transaction is antici-

pated to unlock significant synergies for

all parties involved and continues Near

Earth‘s heritage of serving companies

in the satellite communications sector,

and in particular, the rapidly growing

and evolving maritime satcom sector. ‖

Eutelsat Board of Directors Proposes Replacement to

Giuliano Berretta

The Board of Directors of satellite op-

erator Eutelsat Communications

unanimously decided to propose to

shareholders at the General Assembly

on November 8, 2011 to nominate

Jean-Martin Folz as a Board member.

If elected, Folz will be appointed by

the Board as Chairman to succeed

Giuliano Berretta.

Folz is a graduate of France's Ecole

Polytechnique and the Ecole des Mines.

He began his career in the French ad-

ministration where he served in various

ministries from 1972 to 1978 before

joining Rhône-Poulenc as plant man-

ager. In 1984 he became Chairman and

Chief Executive Officer of Jeumont-

Schneider. He joined Péchiney in 1987 as Chief Executive Officer and was

Chief Executive Officer of Eridania

Béghin-Say from 1991 to 1995. Folz

joined PSA Peugeot Citroën in 1995

and was the Group's CEO from 1997

until February 2007. He was Chairman

of AFEP (The French Association of

private companies) from 2007 to 2010.

Meanwhile, Eutel-

sat also announced

the appointment of

J e a n - F r a n ç o i s

Bureau has been

appointed Director

of Institutional and

International Af-

fairs.

Bureau, a graduate

of the Institut

d ' E t u d e s

politiques de Paris, began his career in the private

office of France's Ministry of Defense

where he was technical advisor from

1983 to 1985. From 1991 to 1994 he

worked in the secretariat-general of the

Presidency of the French Republic, and

from 1994 to 1998 was a rapporteur at

France's Court of Auditors (Cour des

Comptes). In 1998, Jean-François Bu-

reau set up the Communications and Information Delegation at France's

Ministry of Defence, which he man-

aged until 2007, in addition to acting as

spokesman. From 2007 to 2010, he was

NATO Assistant Secretary General, in

charge of public diplomacy. He was a

General Controller at France's Ministry

of Defense from July 2010.

Thuraya Appoints Patrick Chenel as CFO

Mobile satellite operator Thuraya

Telecommunications has appointed

Patrick Chenel as Chief Financial Of-

ficer. In addition to leading Thuraya‘s financial management, planning and

reporting functions, Chenel will also be

responsible for maintaining and devel-

oping the company‘s relationships with

the relevant

financial insti-

tutions and

strategic suppli-

ers across the

globe.

Prior to joining

Thuraya,

Chenel was the Chief Financial

Officer for the

real estate arm of the Qatar Investment

Authority, Qatari Diar. He began his

career with Alcatel in 1989, holding a

number of various senior positions in

the finance area. Chenel has extensive

experience overseeing business per-

formance and strategic growth initia-

tives through his various international

assignments in the UAE, Qatar, Can-ada, China, and France.

Chenel‘s appointment comes following

the departure of Mr. Mohammed

Sharaf, a long-time Thuraya CFO, ear-

lier this year.

EXECUTIVE MOVES

Jean-François Bureau

Patrick Chenel

Satellite Executive Briefing 23 November 2011

November 2011 24 Satellite Executive Briefing

MarketMarketMarketBriefsBriefsBriefs

Key industry trends and opportunities.

B roadband continues to spread throughout the world‘s

population, getting faster and benefitting millions,

but according to analyst firm Point Topic this has

also increased the need for accessible and transparent map-

ping. It is such mapping of take-up, coverage and speeds that highlights to governments and regulators the evident dispari-

ties of broadband availability and where investment funds

are best spent.

―In barely more than a decade, broadband has spread across

the world with ever increasing speeds, and now boasts well

over half a billion fixed sub-scribers. This is a powerful

demonstration of its capa-

bilities, however there is

much more to be done in

order to ensure everybody

has access to high quality

broadband services. Map-

ping is key to delivering

this,‖ says Oliver Johnson,

CEO of Point Topic, speak-

ing at ITU Telecom World

conference.

As more markets gain faster

broadband and are able to

make it available to more of

their population, govern-

ments and regulators start to face a different set of chal-

lenges. They need to con-

sider how much needs to be

spent and where in order to

get the maximum percent-

age of the population and

businesses online. Mapping

is an essential element in

achieving this and the USA

has led the way in imple-

menting a coherent response to this increasing need accord-

ing to Johnson.

―The USA allocated $350 million dollars to produce a de-

tailed map of what speeds, suppliers and technologies are

available where, with updates over the next five years,‖ he

said. ―This has already contributed to the discussion as to

where there are issues and has highlighted areas of success and relative failure. Importantly, it has done it in an accessi-

ble and transparent way.‖

However it is unlikely that other countries would want to

match this level of expenditure, particularly in the current

climate. Johnson explains: ―You can provide information

much more cost effectively. If you can get the right inputs

then instead of the census approach that the US took, which is where they spent most of the money, you can build very

effective models that mean the benefits of a comprehensive

coverage and technology map can be offered for far less ex-

penditure.‖

Point Topic has recently carried out just such a project for

the European Space Agency

(ESA).

―In order to establish the areas

of Europe that won‘t be

reached by fixed broadband,

and despite the recent an-

nouncement of infrastructure stimulus funds which will help,

there will be large areas that

will still be outside the fixed

footprint. We undertook a re-

search and modelling pro-

gramme which offers a decent

approximation of where the

challenges will be,‖ says John-

son.

To generate the estimates Point

Topic mapped current and fu-

ture deployments, factored in

affordability, education and

other socio-economic and infra-

structure metrics, and projected

the commercial spread of fixed

broadband. Importantly it does not make an allowance for re-

cently announced and future EU and country government

subsidies or central funding; effectively this is what would

happen if the EU27 went on as they are going today.

―Fixed superfast broadband is the most straightforward way

of delivering high speed internet services but by no means

the only way. Satellite, and to an extent other wireless tech-

nologies, will have a significant contribution to make to cov-erage in the EU and given the extent of the challenge they

are going to be essential in meeting even the most basic ob-

jectives driving deployment in Europe,‖ says Johnson.

Mapping Vital to Future Broadband Investment

Source: Point Topic

Satellite Executive Briefing 25 November 2011

November 2011 26 Satellite Executive Briefing

MarketMarketMarketBriefsBriefsBriefs

Key industry trends and opportunities.

Online Video Reaches 50% of US Population Each Month

A ccording to a new market report from the telecom re-

search firm Berg Insight, the global market for loca-

tion-based services (LBS) platforms

and middleware will see steady

growth in the coming years, with de-mand primarily driven by emergency

call and lawful intercept mandates.

Annual revenues for mobile location

platforms, including A-GPS servers

and middleware platforms, are pro-

jected to grow from about US$ 150

million in 2010 to US$ 300 million in

2016.

Ericsson remains the leading vendor in

terms of number of contracts for location platforms, ahead of

Nokia Siemens Networks and TeleCommunication Systems.

Governments and telecom regulators in many parts of the

world are introducing stricter emergency call and lawful in-

tercept mandates that require network operators to invest in

location platforms. These mandates typically entail accurate

location of any handset deployed and therefore require in-

stallation of network-based location technologies. Network-

based location technologies also have superior

indoor coverage and reliability. Commercial LBS

are not likely to have a similar impact on the mar-

ket for location platforms.

Today consumer LBS can rely on alternative lo-

cation sources including GPS in the handsets, Wi-

Fi location and third party Cell-ID databases.

Location-based services have gained mainstream

acceptance, enabled by broader adoption of GPS-enabled smartphones, said Andr Malm, Senior

Analyst, Berg Insight. All leading handset ven-

dors provide their own assistance services for

GPS handsets to ensure a good user experience in case the

operator has not yet deployed A-GPS services.

F o r m o r e i n f o r m a t i o n g o t o : h t t p : / /www. r es ea r chan dmar ket s . com / r esea r ch / d3e606 /

lbs_platforms_and

comScore, Inc. released data from the

comScore Video Metrix service show-

ing that 182 million U.S. Internet users,

nearly 50% of the U.S. population,

watched online video content in Sep-tember for an average of 19.5 hours per

viewer. The total U.S. Internet audience

engaged in 39.8 billion video views.

Google Sites, driven primarily by video

viewing at YouTube.com, ranked as the

top online video content property in September with 161 million unique

viewers, while VEVO ranked second

with 57.3 million. Microsoft Sites

climbed to the #3 position with 54 mil-

lion viewers, followed by Viacom Digi-

tal with 53.4 million and Facebook.com

with 49.9 million. Nearly 40 billion

videos views occurred during the

month, with Google Sites generating the

highest number at 18.6 billion. The av-

erage viewer watched a record 19.5

hours of online video content, with

Google Sites (6.3 hours) also demon-

strating the highest engagement.

Americans viewed more than 6.8 billion

video ads in September, with Hulu gen-

erating the highest number of video ad

impressions at more than 1 billion.

Tremor Video ranked second overall

(and highest among video ad ex-

changes/networks) with 811 million ad

views, followed by Adap.tv (803 mil-lion) and BrightRoll Video Network

(665 million). Time spent watching

video ads totaled more than 2.9 billion

minutes during the month, with Adap.tv

delivering the highest duration of video

ads at 450 million minutes. Video ads

reached 50 percent of the total U.S.

population an average of 45.3 times

during the month. Hulu delivered the

highest frequency of video ads to its

viewers with an average of 38.2.

Other notable findings include:

85.3 percent of the U.S. Internet

audience viewed online video.

The duration of the average online

content video was 5.3 minutes,

while the average online video ad

was 0.4 minutes.

Video ads accounted for 14.7 per-

cent of all videos viewed and 1.4

percent of all minutes spent view-

ing video online.

Global Revenues For Mobile Location

Platforms Will Grow to US$ 300 mil. by 2016

November 2011 27 Satellite Executive Briefing

November 2011 28 Satellite Executive Briefing

T he number of TV sets con-nected to the Internet will

reach 551 million by 2016 for the 40 countries covered in a new report from Digital TV Research, up from 124 million at end-2010. The Connected TV Forecasts report states that this translates to 20% of global TV sets by 2016, up from only 6% at end-2010. Despite all of this rapid growth, only 8.9% of global TV sets will be connected to the Internet by 2016. However, this is up from a mere 1.4% at end-2010. Propor-tions will vary considerably from one country to the next, with South Korea the market leader in 2016 (boasting 15.0% penetra-tion). The gross proportion of TV households with a connected set will be 43% by 2016, up from 11% in 2010. Report author Simon Murray explains: “These are gross figures as it is possible that one TV household can have several sets connected to the Internet. For example, a TV household could own a con-nected TV set, and may also have a connected fixed games console. This report identifies five different ways by which a set can be connected to the Internet – and one form of connection does not exclude the other forms.” There were 31 million installed connected TV sets by end-2010, and this total will rocket to 244 million by 2016. The number of connected TV sets will exceed the number of connected games consoles by end-2012. Nearly a fifth of TV households will have a connected TV set by 2016, up from only 2.6% at end-2010.

Satellite Executive Briefing 29 November 2011

AVCOM of Virginia…………………….…….…...7

www.avcomofva.com

Agile Milcoms…………….….…..,……….....…...31

www.agilemilcoms.com

Cobham Tracstar....................................................5

www.cobham.com/tracstar

Cabsat 2012............................................................23

www.cabsat.com

CommunicAsia 2012..............................................21

www.communicasia.com

Comtech Xicom.....................................................28

www.xicomtech.com

Gazprom Space Systems……………….....….....11

www.gazprom-spacesystems.ru

Globecomm Systems……………………............32

www.globecommsystems.com

Hispamar Satélites…………………..…........…...8

www.hispamar.com.br

O3b Networks……………………...….………...15

www.o3bnetworks.com

Spacenet………….................................cover and 2

www.spacenet.com

Walton De-Ice......................................................18

www.de-ice.com

Wavestream.........................................................27

www.wavestream.com

Work Microwave................................................25

www.work-microwave.de

ADVERTISERS’ INDEX

October 31-November 3, 2011, CASBAA Convention

2011, Grand Hyatt Hotel, Hong Kong, Tel. +852-2854 9913

E-mail: casbaa@casbaa.com web: http://events.casbaa.com/

convention2011/

November 7-10, 2011 MILCOM 2011: “Networks...

Attaining the Value‖, Baltimore, Maryland, USA, Contact

person: AFCEA Plans Department, Email: milcom@afcea.org Tel: +1.703.631.6170

web: www.milcom.org

November 22-23, 2011, GVF Oil & Gas Communications

South East Asia 2011, Kuala Lumpur, Malaysia,

Tel: +44 (0)20 8342 8159

Email: martin.jarrold@gvf.org & paul.stahl@uk-emp.co.uk

web: www.uk-emp.co.uk/13th.O&GSEA.2011/

December 13-15, 2011 DoD Commercial SATCOM

Users' Workshop, Crystal Gateway Marriot, Arlington, Virginia, USA, web: www.dodsatcom.com

Calendar of Events

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November 2011 30 Satellite Executive Briefing

The Satellite Markets 25 IndexTM is a composite of 25 publicly-traded satellite companies worldwide with five compa-nies representing each major market segment of the industry: satellite operators; satellite and component manufactur-ers; ground equipment manufacturers; satellite service providers and consumer satellite services. The base data for the Satellite Markets IndexTM is January 2, 2008--the first day of operation for Satellite Market and Research. The Index equals 1,000. The Satellite Markets IndexTM provides a benchmark to gauge the overall health of the satellite industry.

© 2011 Satellite Markets and Research, Satellite Executive Briefing and the Satellite Markets IndexTM are trademarks of Synthesis Publications LLC. Synthesis Publica-tions LLC is the owner of the trademark, service marks and copyrights related to the Index. This newsletter does not constitute an offer of an investment product. Satel-

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Satellite Executive Briefing 31 November 2011 and at the ISR SUMMIT 2011

November 2011 32 Satellite Executive Briefing