Ohio History Grade 4 Ohio Social Studies Strands By Heidi Shively ED 417-02.
WildBlue History - Ohio University
Transcript of WildBlue History - Ohio University
© 2007 WildBlue Communications, Inc
WildBlue History
November 2007
2© 2007 WildBlue Communications, Inc
WildBlue Communications
• Headquartered in Denver, Colorado in the U.S.
– Privately held corporation
– Entered commercial service June 2005
– Growing rapidly – more than 20,000 new customers a month
• U.S. national infrastructure with
– 2 Ka-band spot beam satellites
– 11 Gateway Earth Stations
– Network Operations Center
– Business Systems Data Center
– Customer Call Center
WildBlue is a “Broadband Internet via Satellite”
service provider with more than 250,000customers in the 48 contiguous United States.
3© 2007 WildBlue Communications, Inc
“Satellite Telephony Bubble”
• By the late 1980’s, the cellular telephone business was growingfaster than anyone had imagined.
• Possibility of world-wide cell phones from space set off anirrational frenzy in the satellite industry in the early 1990s.
SYSTEMPrimaryInvestors
First SatelliteLaunched
ServiceLaunched
BankruptcyFiling
EstimatedMoney Lost
Iridium Motorola05/05/1997(90 total)
01/01/1998 08/13/1999 ! $8B
GlobalStarLoral;Qualcomm
09/09/1998(52 total)
01/10/2000 02/15/2002 ! $5B
OdysseyTRW;Teleglobe
never neverAbandoned12/01/1997
$1-2B
• Satellite telephony only worked outdoors, required big heavy phoneswith limited battery life – they were not cell phones; a limited market.
Iridium
Globalstar
4© 2007 WildBlue Communications, Inc
“Satellite Data Bubble”
• Early in the Satellite Telephony frenzy, before any hint ofbusiness failure and multi-$B losses, an even more irrationalSatellite Data frenzy broke out.
• On 12/03/1993, Hughes Aircraft Company, parent of DirecTV,filed with the FCC for the first Ka-band satellite, Spaceway.
• The FCC was surprised; they had no process for satellitelicensing in the Ka-band
• On July 28, 1995, the FCCissue a call for Ka-bandsatellite applications andset a deadline ofSeptember 28, 1995.
• 15 companies filed newor amended applications
5© 2007 WildBlue Communications, Inc
Applicant Satellites Orbital Slots Ultimately Awarded
Comm, Inc. (Motorola) Millenium 75W, 77W, 87W, 91W
Echostar None 83W, 121W
GE-Americom GE*Star 17W, 85W, 105W, 56E, 114.5E
Hughes/Galaxy Spaceway49W, 67W, 99W, 101W, 25E, 36E, 40E ,48E,54E, 101E, 111E, 124.5E, 149E, 164E, 173E
KaStar Satellite Ladybug 1, 2 73W, 109.2W
Lockheed Martin Astrolink 21.5W, 97W, 38E, 130E, 175.25E
Loral Cyberstar 115W, 28E, 105.5E
MorningStar MorningStar 62W, 147W, 30E, 107.5E
NetSat 28 NetSat 28 95W
Orion (3 companies) Orion F2…F9 47W, 81W, 89W, 78E, 126.5E
PanAmSat PAS-10, 11… 133W, 58W, 45W, 68.5E, 72.7E, 166E
VisionStar VisionStar 113W
Teledesic Teledesic 840 Ka-band satellites in low earth orbit
15 First Round Ka-band ApplicationsSeptember 28, 1995
Guess the only one of these companies to offer a Ka-band data service to date?Guess the only one of these companies to offer a Ka-band data service to date?
6© 2007 WildBlue Communications, Inc
Teledesic
• Craig Macaw, Bill Gates venturewith Boeing, Motorola, others
• Announced on March 21,1994 andseeded with billions in cash
• Was to be a constellation of 840Ka-band satellites in low earth orbit
– Nearly free OC-12’s for everyone, everywhere
– All interconnected with lasers, 8 per satellite
– Unimaginable technology
• Licensed by the FCC on March 14, 1997for worldwide operations in the Ka-band
• Officially abandoned on June 27, 2003
840
satellites!
Teledesic Satellite Concept
7© 2007 WildBlue Communications, Inc
KaStar Established in October 1998
• May 8, 1997 the FCC licensed 109.2W & 73W orbital slots to KaStar
• October 1, 1998 KaStar opens for business
8© 2007 WildBlue Communications, Inc
WildBlue Timeline: Start-up Phase
• KaStar was founded inApril 1995 and filed with FCC
• Grew to !10 people by end of 1999 andto !40 people by the end of 2000
• Raised !$250M; early investors wereTRW/NGC, Kleiner Perkins Caulfield &Byers , Telesat Canada, EchoStar, TVGuide, Liberty
• WildBlue-1 “QuickStart” (22 months)contract with Loral signed in Nov 1999
• Invested in US Monolithics in Mar 2000
• Anik F2 Ka-band payload lease signedwith Telesat in Mar 2000
• Original Ariane, ViaSat contracts signed
• KaStar became iSKY, then WildBlue
8/10/1984ACTS satellite contract awarded toRCA AstroSpace
9/12/1993 ACTS satellite launched
12/3/1993 Spaceway FCC filing
4/21/1995 KaStar established as a Colorado Corp
7/28/1995 FCC calls for 1st round Ka-band filings
9/29/1995 First round FCC filings due date
3/14/1997 Teledesic FCC license granted
5/9/1997 FCC first round assignment order
10/1/1998 First two WildBlue employees
10/19/1999KaStar renamed iSky.net, thenrenamed iSKY, Inc. on 12/3/1999
11/2/1999 WildBlue-1 contract with Loral signed
3/17/2000WildBlue and Telesat sign Anik F2lease agreement
3/24/2000 WildBlue invests in US Monolithics
8/14/2000 iSKY, Inc. became WildBlue Comm.
3/5/2001 ViaSat SM/SMTS contract signed
6/25/2001 Telesat takes equity stake in WildBlue
9© 2007 WildBlue Communications, Inc
WildBlue Timeline: Dark Days
9/11/2001Terrorist attack on the UnitedStates
9/26/2001WildBlue-1 satellite contractualship date
11/6/2001 Astrolink folds; closes down
12/2001 –01/2002
All WildBlue contracts suspendedor terminated; project put on hold
12/18/2002WildBlue licensed by FCC to useAnik F2 in the US
• Prior to 9/11/01, we were workingon several sources of new funds
• 9/11 attacks wiped out any hopeof continuing the project as planned
• Company chose to “weather the storm”with an assertion that the business planwas sound and economic conditionswould improve eventually
• Renegotiated/delayed all of our contracts
• Hunkered down with 9 remainingemployees
• Sold our stake in US Monolithics to ViaSatin Jan 2002, the proceeds of whichprovided cash to stay alive for at least ayear
• Spent all of 2002 looking for new partners,modified business plans including videobroadcast, etc.
Terrorist Attack – September 11, 2001
10© 2007 WildBlue Communications, Inc
WildBlue Timeline: Dark Days
Dow Jones Industrial Average 2001
Early 2002: “Reports of our death were greatly exaggerated.”
Economic Impacts of 9/11 Were Hard on WildBlue
We Explored Every Mickey Mouse Idea (Well Almost!)
11© 2007 WildBlue Communications, Inc
WildBlue Timeline: Recovery & Growth
12/23/2002Liberty, Intelsat, NRTC, Kleinerannounce $156M investment torestart WildBlue
4/22/2003Liberty, Intelsat, NRTC, Kleinerclose $156M investment
6/27/2003 Teledesic Folds
3/28/2004Spaceway F1, F2 sold to DirecTVfor video
4/28/2004 ACTS decommissioned
7/17/2004 Anik F2 satellite launched
10/18/2004First email sent over the WildBluenetwork
4/26/2005Spaceway F1 satellite launched byDirecTV for video
6/3/2005WildBlue enters commercialservice
8/21/2006WildBlue closes $350M debtfacility with Liberty, Tennenbaum
10/1/2006WildBlue reaches 100,000subscribers
11/2/2006WildBlue-1 satellite actual shipdate to the launch site
12/8/2006 WildBlue-1 satellite launched
• Liberty, Intelsat, and NRTCwith Kleiner Perkins andDavid Drucker invested$156M to restart WildBlue
• Company restarted with a one satellitebusiness plan based on Anik F2
• WildBlue-1 satellite was completedand placed in storage at SS/Loral
• Began rehiring in April 2003 andentirely rebuilt the company during thesecond half of 2003
• Successful launch of Anik F2 satelliteoccurred in July 2004
• Massive effort 2004-2005 to build outthe gateways, IT systems, NMSsystems, CPE manufacture capability
• Commercial service was establishedin June 2005.
12© 2007 WildBlue Communications, Inc
WildBlue Timeline: Recovery & Growth
First Customer – June 3, 2005 Echo/DirecTV – June 8, 2006
Anik F2 Launch – July 17, 2004WildBlue Team – July 17, 2004Anik F2 Launch Party
First WildBlue eMail – October 18, 2004
13© 2007 WildBlue Communications, Inc
Today’s WildBlue
• >250,000 subscribers, healthy growth rate
• Approximately 250 employees
• Exclusive distribution agreement NRTC
• Exclusive distribution agreements with both majorUS satellite TV companies, EchoStar & DirecTV
• Strategic distribution agreement with AT&T
• Two operational satellites providing CONUS service
• WildBlue controls almost 100% of bent-pipe Ka-bandspot beam satellite capacity over the United States.
The little bug that
just never gave up…
14© 2007 WildBlue Communications, Inc
Rural Broadband Users- 2006
Homes & Small Offices(Rural = C&D Counties)
Homes & Small Offices(Rural = C&D Counties)With No Access To TerrestrialBroadband
35m100% -
Have Access
To CableModem/
DSL(21m)
DON’THave
AccessTo CableModem/
DSL(14m)
14m
Don’t use Internet
(4.9m)
Dial-UpSubs(8.6m)
Satellite (0.3m)
Fixed Wireless (0.2m)
WB
Target
Market
15© 2007 WildBlue Communications, Inc
Satellite Broadband Market Size Forecast
2006 2007 2008 2009 2010
# Rural homes/SOHOs 34.2 34.0 34.0 34.0 34.0
# Rural homes/SOHOsw/ no terrestrial broadbandaccess
13.9 12.9 11.9 10.8 10.2
# Rural homes/SOHOsw/ no terrestrial broadbandaccess that are online
8.6 8.3 8.1 7.9 7.7
Satellite broadband subs 0.5 0.8 1.2 1.3 1.8
Satellite broadband subscriber
penetration of rural online w/no
terrestrial broadband access
6% 10% 15% 17% 23%
(millions)
Source: U.S. Census 2005, Frost & Sullivan 2006, WB estimates
16© 2007 WildBlue Communications, Inc
Key Drivers of Satellite Broadband Market
Social Trends– Urban & second home movement to rural areas for “lifestyle”– Long-term reduction in rural jobs– Telecommuting
Product Trends– Decline in upfront price– Demand for speed & capacity (usage)
Competitive Trends– Growth of DSL/CM (assumed very low)
! LECs: “we will not serve 20% of our customers with DSL”
– Growth of fixed wireless– Expansion of nascent technologies (BPL, 3 or 4G, etc.)
17© 2007 WildBlue Communications, Inc
Satellite Provides Ubiquitous Coverage
18© 2007 WildBlue Communications, Inc
Network Architecture
SpaceSegment
SubscriberTerminal
GatewayEarth Stations
WAN/LANConnectivity
NOC andOSS/BSS
Internet
DOCSIS-based Standard Platform
Simple “Bent-Pipe”
DOCSIS-based
Unmanned Facilities
Leased connectivity DOCSIS-based
Commercial Products
19© 2007 WildBlue Communications, Inc
Our “Bread & Butter” Market
20© 2007 WildBlue Communications, Inc
WildBlue vs U.S. Homes (Density Comparison)
Density U.S. Homes WB Customers
(Homes/mi2) Cumulative (m) Cum % Cumulative Cum %
0-9 4.9 4% 19,082 45%
10-19 10.5 10% 26,374 62%
20-29 15.2 14% 29,285 69%
30-39 18.4 17% 31,621 75%
40-49 21.5 20% 33,116 78%
50-59 24.1 22% 34,299 81%
60-69 26.2 24% 35,139 83%
70-79 28.0 26% 35,753 85%
80-89 29.8 27% 36,279 86%
90-100 31.4 29% 36,714 87%
101-150 37.5 34% 38,124 90%
151-200 41.5 38% 38,808 92%
201+ 109.0 100% 42,266 100%
Total 109.0 42,266
Source: WB Analysis, U.S. Census data
21© 2007 WildBlue Communications, Inc
Broadband Market (by Technology)
0
10
20
30
40
50
60
4Q'05 4Q'06
Satellite
Fixed Wireless
DSL
Cable Modem
Source: Jupiter; ignores BPL subs
U.S. Broadband Customers
22© 2007 WildBlue Communications, Inc
Technology Comparison
2005 EOY
Subscribers
Growth 2005-09
(CAGR) Pro Con
Cable
Modem/DSL44.6 million 10% • Speed
• Price
• Local Presence
• Bundled offering
• Not ubiquitous
Fixed Wireless 0.2 million 32% • Price
• Local Presence
• Not ubiquitous
• Mostly unlicensed
spectrum (except
Sprint/Clearwire)
• Must choose where to
build
Satellite 0.3 million 42% • Ubiquity • CPE Cost
• Unproven VoIP offering
• Time to market for new
capacity
Broadband Over
Power Line (BPL)<0.1 million n/a • Price
• Local Presence
• Some existing
infrastructure
• Cost
• Not ubiquitous
• Must choose where to
build
23© 2007 WildBlue Communications, Inc