Cellular Backhaul over Satellite

Cellular Backhaul over SatelliteINTERVIEWInterview with Erez Antebi, Chief Executive Officer, Gilat Satellite Networks

FOCUS ASIA The Case for Hosted Payloads in Asia www.apscc.or.kr

Q22 0 1 2

Asia-Pacific Satellite Communications Council •ISSN 1226-8844 NEWSLETTER

Asia-Pacific Satellite Communications Council Suite T-1602, Poonglim Iwantplus, 255-1 Seohyun-dong,

Bundang-gu, Seongnam, Gyeonggi-do, 463-862 Korea

Tel: +82-31-783-6244 Fax: +82-31-783-6249

E-mail: [email protected] Website: www.apscc.or.kr

03 MESSAGE FROM THE PRESIDENT

04 FEATURES: CELLULAR BACKHAUL OVER SATELLITE

04 UsingSatellitetoAchieveAccessforAll(HUGHES)

10 SmallCellsBackhaulforMobileCoverageExpansionandDisasterCommunications(IPSTAR)

16 AdvancingCellularBackhaulThroughSatellite(iDirect)

22 INTERVIEW 22 ErezAntebi,ChiefExecutiveOfficer,GilatSatelliteNetworks

26 FOCUS ASIA 26 TheCaseforHostedPayloadsinAsia

30 SATELLITE TRENDS 30 FSSIndustryDriventoIncreasedPartnerships,

InnovativeSatelliteProcurement

36 EVENT REVIEW 36 AustralasiaSatelliteForum2012

40 APSCC MEMBERS

42 NEW MEMBERS 42 NanoTronix

44 SATELLITE INDUSTRY NEWS

47 CALENDAR OF EVENTS

48 ADVERTISER’S INDEX

2 nd Quar te r 2012 • Vo lume 18 • I s sue 2

I participated in Satellite 2012 Conference & Exhibition held in Washington DC, in March. About 1,200 people, including many readers, flocked to this conference. I had an impression through the conference that the satellite business is stable and growing steadily, amid the global political and economic turmoil.

I would like to comment about some topics in the conference. The first topic was that WRC 2012 held in the preceding month clearly defined the start of satellite operation related to the issue of securing orbits and frequencies. The start of satellite operation was defined as keeping a satellite that can transmit and receive specified frequencies in the announced orbit for over consecutive 90 days. At the same time, suspen-sion period of recorded assignment to a satellite was extend-ed from 2 years to 3 years, considering the period for satellite manufacturing. Many considered the clarification of rules is favorable, but the operators related directly to the interests for securing their orbit rights had delicate opinions. Since the orbits and frequencies for geostationary satellites are con-gested, it is vital for each operator to secure them for busi-ness. Accordingly, they applied for as many orbits as possible relocated old satellites and those leased from other operators to target orbits for their advantages, and operated them for a short period of time to secure interests, regardless of their plans of launching satellites. The interests of an orbit matter to not only operators, but also countries from a global view-point, and so this issue cannot be settled easily. However, if the operators in each country keep their orbits idle for the future business, hindering the effective use of orbits and fre-quencies, this is problematic for the entire satellite industry. In this light, the clarification of rules is preferable also from

the viewpoint of securing fairness, although there are no per-fect solutions.

The next topic was a plan announced during the conference. The plan is that ABS and Satmex jointly purchase several Boeing’s new 702SP satellite and collaboratively launch the satellites on Falcon 9 of Space X. This attempt is innovative in 3 aspects. Firstly, different operators procuring satellites and launching them with the same rocket collaboratively is a new type of cooperation. Secondly, this is related to the design policy of 702SP. 702SP is a satellite with all-electric propulsion, it is injected into a geostationary orbit with elec-tric propulsion only, and it does not have an apogee motor. Compared with conventional satellites, the weight at the time of launch is significantly reduced. What is more, two satel-lites can be combined just like a single satellite so that they can be easily loaded onto a rocket together. Lastly, because of this satellite design, it becomes possible to launch 2 satel-lites on Falcon 9 of Space X, which claims competitive price, so that the launching cost per satellite can be significantly reduced. If this scheme is successful, this will produce a great impact on the satellite business. I think there have been no commercial geostationary satellites with all-electric pro-pulsion systems so far. The new satellite is also expected to enable the automation of on-orbit operation and lead to the reduction in operation cost through the satellite life, although it takes long time to be put into geostationary orbit. I would like to welcome the new trend in the satellite industry, which has not witnessed innovative activities in recent years.

Yutaka NagaiPresident, APSCC

04

Using Satellite to Achieve Access for AllVince Onuigbo, Senior Marketing Director, Hughes Network Systems

The tremendous growth of wireless devices,

including smart phones, tablets and the like, in

the last several years has driven the need for

connectivity anywhere, anytime. Moreover,

according to studies by the World Bank and

other economic organizations,* it has been

demonstrated that the introduction of these

technologies improves productivity and econo-

mies at a faster pace. It is estimated that a ten

percent increase in penetration of mobile

phones in a country increases the economic

growth in the range of 0.6% to 1.5% in develop-

ing and developed countries respectively. Thus,

bringing connectivity to developing and rural

areas is an important element in economic

development.

However, there are significant challenges in

bringing connectivity to “hard-to-serve” or rural

areas. Mobile operators initially target affluent

cities and communities with a high density of

subscribers leaving the lower density rural

areas not as well connected. Urban communi-

ties, with good terrestrial infrastructure such as

fiber and the power grid are well connected.

But the “hard-to-serve” areas, including rural

areas, islands, ocean vessels, and airplanes, are

oftentimes served most effectively by using sat-

ellite communications.

Evolution of Cellular Standards and InfrastructureBefore exploring the case for satellite backhaul,

it is useful to address the evolution of cellular

standards and technology. As summarized in

Figure 1, since the introduction of the first gen-

eration analog cellular standards and technolo-

gy in the early 1980’s, the industry has continu-

ally evolved into subsequent generations of 2G,

3G and now 4G digital standards to meet the

ever-increasing demand for high-speed Internet

FEATURESⅠFEATURESⅠ

Generation

1G

2G

3G

4G

NMT, AMPS, CDPD, etc.

D-AMPS, iDEN, GSM, GPRS, CDMA 2000

WCDMA, UMTS-TDO, HSPA+

WiMax, LTE

10 - 100 kbps

100 k - 1 Mbps

22 - 56 Mbps

75 - 1 Gbps

Technology ThroughputperUser

Figure 1. Wireless Standards Evolution

* Journal of Economic Perspectives, Volume 24, Number 3, Summer 2010, pages 207-232

06 Quarterly Newsletter Q2•2012 07

access and associated bandwidth-intensive,

largely video-driven applications.

In general, different classifications of cell site

infrastructure have evolved to cost effectively

serve geographic coverage areas with varying

subscriber density and traffic demands, namely:

Macro, Micro or Pico, and Femto. Macrocells

typically provide cellular coverage to the largest

areas, e.g. rural and ex-urban areas and

highways, while micro or picocells are used in

areas such as stadiums, malls or large office

complexes. Femto cells are the smallest class,

typically found in residences or small offices,

and more recently in ruggedized forms as a low-

cost solution in very low density rural and

remote areas.

Backhaul ConnectionsAn overview of a cellular network is shown in

Figure 2, including the different backhaul con-

nectivity options, namely fiber, copper, micro-

wave, and satellite. Backhaul terminology in

cellular infrastructure deployment refers to the

methodology of connecting the edge radio sub-

systems (base transceiver station or BTS) to the

base station controller or BSC, which intercon-

nects with the co-located or nearby core net-

work (mobile switching center or MSC). In gen-

eral, fiber is the preferred choice when avail-

able due to high capacity and reliability.

However, as described further below, its costs

are distance-sensitive making it prohibitive in

rural and hard-to-reach areas; the same con-

straint applies to copper and microwave options

although with different parameters. Only satel-

lite backhaul has a cost model that’s insensitive

to distance and location, requiring only direct

line-of-sight from compact antennas at the base

stations and base station controller locations.

Choices for Satellite Access ConnectionsGenerally speaking, satellite backhaul connec-

tions are implemented using one of two access

schemes: Single Channel Per Carrier (SCPC) or

Time Division Multiple Access (TDMA). As illus-

trated in Figure 3, SCPC is an access scheme

where a bi-directional channel is dedicated to a

link between two points. TDMA is an access

scheme where a channel is shared amongst

multiple end points and access is granted on

demand.

Figure 2. Cellular Wireless Network with Backhaul Options

Satellite

Rural - 2G, 3G

Urban - 2G, 3G, 4G

Dense Urban - 2G, 3G, 4G

Microwave PTP & PMP

Fiber OpticController/

Mobile Switch

PublicNetwork

Copper

SCPC is advantageous for links where the

amount of traffic is constant and TDMA for links

where the traffic is variable. Usually high-

capacity base stations will have a constant

traffic load while low-capacity base stations

will have variable traffic load. The decision of

what satellite backhaul solution to use in

providing cellular coverage to an area depends

on several factors including:

1. Cost

2. Throughput

3. Availability

CostAmong the key factors affecting the cost of

extending cellular coverage to rural areas are

the distance of the base station to the core net-

work, power, backhaul link capacity or through-

put, site rental, and maintenance. With refer-

ence to terrestrial backhaul solutions like fiber,

copper, and microwave, the further the base

station is from the core network the higher the

backhaul infrastructure cost. For satellite solu-

tions the story is completely different, as cost is

insensitive to distance. For this reason the low-

est cost solution for base stations located in

rural areas may be satellite.

With reference to power, in rural areas beyond

the reach of the electrical grid, the choice is

either generator or solar power. When practical,

solar provides a lower cost point than a genera-

tor given the requisite fueling and maintenance

costs. Based on current generation satellites,

Figure 4 shows the estimated breakdown of the

operating cost for a rural base station in central

Africa backhauled via satellite according to

Altobridge, a manufacturer of cost-effective

GSM rural base stations. Several years ago, the

operating cost of a remote base station site

attributed to satellite backhaul was in the range

of 70 percent; today it’s dropped to approximate-

ly 20 percent; the improvement due to signal

processing and packaging efficiencies gained by

both the BSS and satellite manufacturers.

With new generation Ka-band High Throughput

Satellites (HTS) designed with multi-spot beams,

the cost equation of satellite backhaul will

change drastically, as the cost per bit is expect-

ed to be up to ten times less compared to

today’s conventional satellites. The cost efficien-

cy of HTS is inherent in its design approach —

employing coverage beams together with fre-

quency re-use as in cellular systems to achieve

very high capacity. According to NSR Wireless

OPEX at Remote Sites

Satellite Transmission

Site Rental & Maintenance

Power

40%

40%

20%

Figure 4. Opex at a Remote Site Connected via Satellite

SCPC (Single Channel Per Carrier)

DVB-S2(TDM) / FD-TDMA

DVB-S2 Forward

FD-TDMA Return

F1

F2

Figure 3. Satellite Access Schemes


Backhaul Via Satellite, 5th Edition report, (see

Figure 5), the lower cost per bit of HTS will drive

the high forecasted growth rate of satellite con-

nectivity for picocells in particular.

In addition to the cost of space segment signifi-

cantly coming down, the cost of Ka-band

remote satellite equipment will also be reduced

compared to conventional Ku-band sites.

ThroughputThroughput measured in bits per second (bps) is

the average rate of data delivered over the back-

haul link. The driver of the wireless cellular tech-

nology evolution has been the drastic subscriber

and data increase over time. In general, high-

capacity cell sites require higher throughput for

backhaul. When available and practical, fiber and

microwave connectivity provide more cost- effec-

tive support for high- throughput backhaul links

compared to satellite, when distance between

the base and the core network is in the order of

tens of miles. When considering distances

between base station and the core network of

hundreds of miles, the whole equation drastically

changes in favor of a satellite solution, based on

the new generation of HTS systems.

Consider the following scenario based on

Hughes experience. In 2007 Hughes launched

SPACEWAY® 3, a Ka-band satellite with 10 Gbps

of capacity, the world’s first with on-board

switching and routing. SPACEWAY 3 is equiva-

lent to approximately eight conventional Ku-band

satellites yet its cost was approximately the

same as one Ku-band satellite; today SPACEWAY

3 supports over 500,000 HughesNet® consumer

subscribers in North America, representing the

world’s largest Ka-band network.

In mid-2012, Hughes will launch its next-gener-

ation satellite, EchoStar XVII, with JUPITER™

high-throughput technology, with well over 100

Gbps capacity through sixty steerable beams. To

put it in context, each single EchoStar XVII

beam has more capacity than an entire conven-

tional Ku-band satellite — making EchoStar

XVII equivalent to approximately 80 convention-

al Ku-band satellites — truly transformational

for the industry. This shows clearly that the cost

per bit is in a downward trend, and a clear indi-

cation that satellite is a viable option for back-

hauling high capacity base station sites cost-

effectively moving forward.

Global Wireless Backhaul In-service Units, Macrocells & Picocells, 2010-2020

Macrocells

Picocells

60

40

20

02010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Uni

ts(0

00s)

Source: NSR

Figure 5. Global Wireless Backhaul In-service Units, Macro & Picocells, 2010-2020

AvailabilityFor the purpose of this article, availability is

measured in how much time per year the back-

haul l ink will be down or out of service.

Typically the range for backhaul application will

be from 99.9% to 99.99% (four nines). For

99.9% availability it means that the backhaul

link will be out of service for 8.76 hours in a

year and for 99.99% availability, the backhaul

link will be out of service for 52.56 minutes in a

year. Normally backhaul links designed to sup-

port higher availability require more resources,

which in general cost more.

Implementing Satellite BackhaulThere exists a real “digital divide” in the world

where small communities in rural areas are not

effectively connected. In an effort to address

this digital divide, mobile infrastructure manu-

facturers are developing low cost pico and

femto cells to serve these very rural and diffi-

cult-to-reach areas. From these efforts the

industry is bringing forth a new generation of

solutions with the following characteristics for

these hard-to-serve areas:

• IP enabled base stations with higher

bandwidth efficiency than E1/T1 base

stations

• Lowest possible infrastructure cost

• Near zero field configuration (NZFC)

• Green energy powered — solar and wind

• Complete remote maintenance

As mobile infrastructure manufacturers are

developing these very low cost, ruggedized

small cell solutions for rural coverage, satellite

networking companies such as Hughes are mak-

ing great strides in developing cost-effective

and practical VSAT solutions for cellular back-

haul. Through the implementation of thousands

of cellular backhaul links via satellite, Hughes

has learned that there are a number of key fea-

tures that must be taken into consideration in

other to minimize the overall total cost of own-

ership, including:

• Highest efficient space segment access

• Dynamic bandwidth assignment efficiency

across multiple sites

• Easily expandable network by adding new

sites without additional equipment at the

Hub site

• Lowest latency and jitter for efficient real-

time data traffic throughput

• Low power consumption for remote units

• Zero truck roll for maintenance

Satellite cellular backhaul uniquely addresses

the issue of providing full mobile services, voice

and 3 & 4G data, to everyone, especially those

in difficult to reach areas. It is certain that the

continuing evolution of both cellular and satel-

lite technologies will continue to serve to bridge

the digital divide.

Vince Onuigbo leads the technical marketing and business development function of

the Satellite and Terrestrial wireless backhaul business globally. Prior to joining Hughes

in 1996, he held various technical positions at Motorola Cellular Infrastructure Group. He

is a Member of the IEEE and holds a BS degree with honors in Electrical Engineering and

an MBA degree.

10

Taksin Uppalakom, Director, Marketing and Business Development, Thaicom PLC.

FEATURESⅡFEATURESⅡ

Mobile Service TrendsThere has been an exponential increase in

mobile services in recent years. In the Asia

Pacific region, the mobile penetration rate is

expected to hit 106%, and the number of sub-

scribers is expected to reach 4 billion by 2016.

In parallel with the increase in mobile voice ser-

vice, data services have also increased expo-

nentially in recent years, mainly thanks to the

popularity of social networks. The overall data

traffic usage is expected to grow to more than 4

exabytes per month in the next five years in the

Asia Pacific region alone. This kind of demand

puts tremendous strain on the existing mobile

networks and technologies. At the same time

competition among mobile network operators is

increasing in markets which are seeing ever

shrinking ARPU (Average Revenue per User).

Mobile operators need to expand their coverage

and target new subscribers, while keeping their

CAPEX and OPEX within profitable limits.

New FrontiersThe urban and suburban mobile markets are

now saturated, however many rural and remote

areas are still lacking service coverage. The

focus of the mobile industry is now shifting to

these less developed areas. Mobile handset

vendors are continuously developing low cost

phones specifically targeting the low-income

rural areas. Semi-smart phones with built-in

social networking applications are being manu-

factured by vendors to target these developing

markets. Even though such low cost handsets

are now widely available, the fact still remains

that it is not cost-effective for operators to

extend their reach into remote areas using ter-

restrial based fiber and microwave networks.

Satellite backhaul still remains the effective

choice for targeting remote areas out of reach

from terrestrial nodes, and this choice will

remain so in the foreseeable future.

Operators in Asia-Pacific’s low ARPU markets

have mostly depended on funding and subsidies

from governments, for example USO (Universal

Service Obligation) funds to provide services in

remote areas. While in the past the objective of

these funds was to provide basic telecommuni-

cation services, the intent has now widened to

include the uplifting of quality of life of rural cit-

izens. The focus now is on providing broadband

to the remote areas, where access to broad-

band services will play a key role in bridging the

Digital Divide through health services, rural

Small Cells Backhaul for Mobile Coverage Expansion and Disaster Communications


schools, distance education programs, SME’s

and agriculture, and other community services.

This vision of broadband services in rural areas

can be realistically implemented using existing

broadband satellite backhaul technology.

Small Cells – New TechnologyA new technology in the field of mobile commu-

nications – Small Cells, is ideal for penetrating

rural areas and providing cellular voice as well

as broadband Internet services. Small Cell is a

small cellular base station originally designed

to be used in residential or small business envi-

ronments where the mobile network’s coverage

is weak or non-existent. It was designed to con-

nect to the mobile network using broadband

ADSL or any other type of IP-based Internet con-

nection as shown in figure 1. A sma ll cell typi-

cally supports 8 or 16 concurrent voice calls, as

well as access to data service. Small Cells from

different telecom vendors are currently avail-

able for 2G, CDMA and 3G technologies—ser-

vice providers can easily integrate them into

their existing networks. When a 3G small cell is

chosen for deployment, it can easily provide the

broadband speeds required for today’s needs

and applications.

Although originally intended for indoor use with

a small coverage of around 10 or 20 meters,

Small Cells are increasingly being adapted for

use outdoors with an extended range of up to 1

or 2 kilometers. Small Cells are plug-and-play

devices with Ethernet interfaces and work

immediately after connecting to a broadband

Internet connection, without the need for any

configuration.

Small Cells and Broadband Satellite Backhaul – Perfect Combination for Rural CommunicationSmall Cells are small devices about the size of

an average Wi-Fi Access Point (AP), consumes

little space, and can be easily integrated into an

outdoor waterproof box. This enables rapid

installation and deployment by operators. When

coupled with broadband satellite backhaul ser-

vices, a Small Cell based outdoor base station

can provide instant coverage in any remote

location. The remote base station site using

Small Cells can be setup rapidly within a few

hours using a standard electric pole. The Small

Cell AP, a signal booster, and satellite modem

can be installed in a small weatherproof box. A

standard Ku-band satellite antenna can be

strapped to the pole and the Omni-directional

cellular 3G antenna placed on top of the pole,

providing circular coverage of up to 1 or 2 kilo-

meters. Due to the low power requirements of

Small Cells, these remote sites can be powered

using solar panels and other alternative energy

sources, if grid electricity is not available. The

network configuration of Small Cell backhaul

over broadband satellite service is shown in fig-

ure 2.

The inexpensive cost of Small Cell equipments

and accessories enables deployment of this ser-

vice using lower CAPEX as compared to tradi-

tional base stations. Also, the lower bandwidth

costs of a broadband satellite as compared to a

conventional satellite allow for the feasible

operation of Small Cell service with reduced

OPEX. For remote areas beyond the reach of ter-

restrial access networks, Small Cells and broad-

band satellite backhaul are the perfect combina-

tion for a profitable business model. The combi-

nation allows mobile operators to immediately

tap into previously inaccessible markets and

start generating revenue from new subscribers.

Small Cells over Broadband Satellite for Rural Voice and Mobile Broadband ServicesIn 2010, one of Japan’s largest mobile operators

embarked on a project to expand its 3G service

in the remote islands of the country to provide

voice communications as well as broadband

Internet service to rural communities. The oper-

ator chose a broadband satellite service with

virtually nationwide coverage in Japan, the

IPSTAR system as their backhaul platform. One

technical constraint that comes with any satel-

lite based cellular backhaul is the problem of

latency, or delay. To provide a high level of ser-

vice, the quality of voice connections should be

as good as that of terrestrial networks. What’s

more, the Japanese islands are subject to vari-

ous forces of nature such as rain, typhoons,

snow, and varying temperatures from very hot

to extreme cold. The IPSTAR backhaul solution

would have to work flawlessly under all these

technical and environmental constraints to pro-

vide seamless voice and data communication

services.

Teams from the mobile operator and IPSTAR

made a joint technical effort to fine tune the

system and reduce jitter for the service to per-

form within adequate levels of voice quality and

Indoor Small Cell

ADSL Router

Internet

Mobile Core Networkc

Figure 1. Small Cell (Femtocell) generally backhauls over Internet to connect to the core network.

Figure 2. Small Cell service over broadband satellite backhaul

IPSTAR-Small Cell service in Japan [Photo: Thaicom]

IPSTAR Gateway

IPSTAR User Terminal

IPSTAR User Terminal

AP: Access PointAMPS: Access Point Management SystemRNC: Radio Network Controller

Indoor Small cell AP

Outdoor (IP-Node-B)

3G Core Network

APMS

Femtocell GW(RNC)


deployment cost. The solution that was final-

ized supports 16 concurrent voice conversations

as well as multiple Internet data sessions. Trial

operations were conducted at 100 different

sites in rural areas to verify long term stability

of IPSTAR backhaul for the Small Cell system.

These systems could be deployed within the

short period of a few days due to the compact

size and plug-and-play capability of Small Cell

base station equipments, and the small form

factor of the IPSTAR satellite modem – the

IPSTAR User Terminal (UT). Each such node can

provide 3G coverage up to a radius of 2 Km. The

operator has chosen to extend this service to its

customers in remote areas. Till date nearly 6000

3G Small Cell base stations sites have been

deployed in various parts of Japan, with a total

bandwidth consumption of more than 2,400

Mbps.

Small Cells over Broadband Satellite for Temporary Coverage ExpansionIt is evident that in very remote areas, Small

Cell base stations backhauled over broadband

sate l l i te can be a permanent so lut ion .

Additionally, their advantages can also be lever-

aged as an interim solution. Mobile operators

generally have deployment plans spread over

several years. To reach some of the outlying

areas, deployment of fiber may take a year or

more; deployment of microwave also requires

several months and requires line of sight.

However, using a broadband satellite the base

station deployment can be done immediately.

This enables the mobile operator to start gener-

ating revenues right away instead of waiting for

several months or even years. Once the desig-

nated area has been covered by fiber, the

broadband satellite unit can then be moved to a

more remote area.

Small Cells over Broadband Satellite in Disaster Management and Emergency CommunicationsThe Small Cell satellite backhaul proved to be

highly useful in the aftermath of the Great East

Japan Earthquake and Tsunami of 2011. In addi-

tion to the tremendous loss of lives, the disaster

caused extensive and crippling structural dam-

ages, including to that of communication net-

works. All the 4 major mobile operators of

Japan had their infrastructure destroyed—with

NTT Docomo, KDDI, Softbank Mobile (SBM) and

Emobile losing 6720, 3680, 3800 and 878 base

stations, respectively, in 11 prefectures.

In the immediate aftermath of the disaster, the

mobile operators also used instant IPSTAR

backhaul to provide mobile phone and Internet

services in emergency shelters, schools and

community centers. SBM and KDDI used Small

Cells to provide mobile coverage in designated

locations. Coupled with IPSTAR User Terminals

(UT), Small Cells became the ideal platform to

provide instantaneous cellular service in disas-

ter and emergency situations.

Additionally, the mobile operators also used

IPSTAR for its instant backhaul capability to

bring back their service into operation. Base

stations of various capabilities such as Pico

BTS, Micro BTS, and even full capacity Macro

BTS made use of IPSTAR backhaul to connect to

their core network. This backhaul over IPSTAR

was continued until the service providers recov-

ered their capability and reconnected their lost

terrestrial networks. Up to 500 base stations

were backhauled via IPSTAR, with most of the

deployments in the hardest hit Iwate and

Miyagi prefectures.

Small Cells – A Proven SolutionThis successful commercial deployment in Japan

has demonstrated the effectiveness of Small

Cells backhauled over broadband satellite in pro-

viding an efficient and scalable mobile service in

remote areas. Broadband satellite eliminates the

need to set up microwave links and optical fiber

networks, thus reducing CAPEX by up to one-

eighth depending on distance. A broadband sat-

ellite also enables the efficient use of spectrum

by allowing a number of base stations within the

same spot beam to share bandwidth, which in

turn reduces long term OPEX.

This combined technology of Small Cells and

broadband satellite backhaul enables network

operators to quickly and seamlessly expand 3G

cellular service into rural areas as a permanent

or interim solution. Extending service to accom-

modate higher traffic loads or to cover more

geographical areas can be done economically

via satellite since satellite-enabled cell sites

only require minimal additional infrastructure.

This technology has also proved to be of tre-

mendous advantage for providing emergency

communications in the aftermath of disasters,

and for recovering lost cellular coverage quickly.

IPSTAR, the broadband satellite service cover-

ing 14 countries in the Asia Pacific, has suc-

cessfully demonstrated in Japan that mobile

network backhaul via Small Cells can be a cost-

effective and robust technology. The technology

is currently being replicated in other countries

in the Asia Pacific.

Taksin Uppalakom is responsible for product and business development of

Thaicom’s Telecom and Government related market segments throughout the Asia

Pacific. He has worked in the satellite industry for over 15 years in various roles in

Marketing and Engineering. He has a Master’s degree in Information Technology and a

Bachelor of Engineering degree in Telecommunication.

Deployment of IPSTAR-Small Cells in the aftermath of Great East Japan Earthquake and Tsunami [Photo: Thaicom]

16

Advancing Cellular Backhaul Through SatelliteRichard Deasington, Director, Market Development, iDirect

The mobile industry is at an important cross-

roads. With new technology emerging every

day, mobile operators are rapidly moving from

GSM standard 2nd generation (2G) networks to

3rd generation (3G) and 4th generation (4G) net-

works. With these changes, however, come

challenges. While 2G networks offered primari-

ly voice connectivity, 3G and 4G networks are

much richer and more complex, offering Internet

access, video, and much more. As such, they

deliver a significantly greater volume of data.

In major urban areas, there is the infrastructure

to support all of this data, but in rural areas, it

is much harder for mobile operators to backhaul

3G and 4G data affordably. Fortunately, there is

a solution. Mobile operators that have used

advanced satellite technology to backhaul 2G

traffic are discovering that it is also a viable

solution for backhauling more complex and

bandwidth-heavy 3G and 4G voice and data.

This article will examine how satellite delivers

cellular backhaul for 3G and 4G, the ways that

satellite has evolved in the last several years to

be more efficient and affordable, and the impli-

cations that the expansion of 3G and 4G cellular

services has had on the Asia-Pacific region.

Advancing Cellular Backhaul Through SatelliteOver the past decade, mobile technology has

been advancing at a phenomenal rate and

nowhere have these changes been felt more

strongly than in the developing world where

mobile devices are the primary way that individ-

uals access the Internet. In a 2010 report, Cisco

projected that mobile data traffic would grow

from 14 million to 788 million users by 2015 - a

26-fold increase. With an ever-increasing num-

ber of subscribers transitioning from 2G mobile

phone networks to 3G and 4G technology, we’re

coming closer to that reality. For mobile opera-

tors, however, tapping into rural communities is

easier said than done.

A key challenge preventing mobile operators

from delivering 3G and 4G service to developing

regions, including many areas in Asia-Pacific, is

backhauling rural network traffic. Because

these regions are often remote and cut off from

terrestrial communications, it can be difficult for

mobile operators to backhaul cellular data

affordably. While this was less of a concern

with previous mobile technology, which was pri-

marily focused on voice communications, 3G

and 4G mobile provide voice, video, and Internet

FEATURESⅢFEATURESⅢ


access, which accounts for significantly greater

data volume.

Fortunately, there is a solution for mobile opera-

tors, and it’s one that they’re already familiar

with: satellite. Mobile operators can look to sat-

ellite as a solution for growing 3G and 4G net-

works in rural areas in the same way that they

used it to grow 2G networks. Furthermore,

because of significant recent advances in satel-

lite technology, mobile operators can leverage

satellite solutions even more efficiently than

before.

To understand how mobile operators can use

satellite technology for 3G and 4G, it’s impor-

tant to revisit how satellite helped mobile oper-

ators manage 2G data. The legacy approach for

backhauling cellular data relied on a technology

called SCPC (Single Channel Per Carrier). This

technology extends an E1 (or T1) fractional link

from the Base Station Controller (BSC) site to

the Base Transceiver Station (BTS) using a pair

of devices called SCPC modems. This solution

was effective for sites that had a high level of

traffic, but was operationally inefficient for

more remote and rural locations.

Because the capacity of the satellite link

between two SCPC modems has to be configured

for peak usage – which typically occurs for only a

few hours on the busiest day of the year – it ends

up costing mobile operators significant money in

wasted bandwidth. The shift in the market that

enabled mobile operators to backhaul data via

satellite more efficiently came in the mid-2000s

with the deployment of IP technology instead of

TDM (Time Division Multiplex) links.

As cellular data began to become more complex,

IP networks offered more efficiency to operators

by providing the ability to share capacity

between multiple sites rather than having a

fixed amount per site, as in a TDM network.

Concurrent to this change in the mobile industry

was a shift to IP in the satellite industry.

IP-based satellite networks use a concept called

TDMA (Time Division Multiple Access) to share

bandwidth across many sites. Through TDMA

technology, it is possible to allocate satellite

bandwidth on demand, based on the real-time

requirements of each site. When you pool band-

width like this, it creates a significant “trunking

gain” – requiring up to 80% less capacity on a

per site basis.

Modern carrier-class satellite systems built for

IP traffic are highly compatible with newer

IP-based 2G, as well as IP-based 3G and emerg-

ing 4G networks. Additionally, there have been

several other key technical innovations in the

satellite industry that made backhaul over satel-

lite an especially compelling option for 2G and

continue to make it a viable solution for 3G and

4G mobile operators.

The first key innovation supporting backhaul

over satellite was the move to the second gen-

eration of the Digital Video Broadcasting stan-

dard, or DVB-S2. This transition has made

TDMA networks significantly faster, particularly

when fine-tuned for maximum efficiency. The

addition of Adaptive Coding and Modulation

(ACM) technology makes satellite even more

efficient.

ACM enables each remote to operate at its

most efficient coding and modulation scheme at

any moment, depending on its location within

the satellite contour, antenna size and atmo-

spheric conditions. In practical terms, ACM

ensures that satellite connectivity will be unin-

terrupted by sudden weather changes in regions

where rain fade was previously a problem and

allows the satellite links to be configured on the

basis of optimal operation under clear sky con-

ditions instead of having to assume worst-case

conditions.

A second important development was the inte-

gration of TDMA and SCPC technology onto a

single networking platform. This innovation,

pioneered by iDirect, allows mobile operators to

use an SCPC Return channel when they need to

sustain fairly constant capacity, or to switch to

a TDMA link when throughput is more variable.

This flexibility takes away the guess-work from

network deployment – having to predict which

sites will be high-traffic in advance of their roll-

out.

Combining TDMA and SCPC on one platform not

only saves bandwidth but also lowers up-front

capital expenses by eliminating the need to

implement different types of ground infrastruc-

ture. Rather than sending a team to physically

swap a remote modem, a mobile operator can

switch modes from a central NOC using the

same hardware in the field. This is a powerful

incentive for mobile operators, particularly in

the Asia-Pacific region where rural subscribers

may be in areas where geographies and topog-

raphies make deployment difficult.

A third key development in the mobile industry

that has made cellular backhaul over satellite

appealing is the introduction of small cell/femto-

cell technology. Mobile operators are already

familiar with small cells as a means of offload-

ing data from the wireless network to the terres-

trial network, but they also offer the ability to

cost-effectively expand a wireless service area.

Many vendors are offering small cell platforms,

power amplifiers, power supplies and outdoor

enclosures to produce packages that can sup-

port 30 – 60 voice calls plus HSPA data traffic

and backhaul that traffic using any available IP

connectivity – including carrier-class satellite.

Compared to macro-cell solutions, which have

to be mounted on high towers and are expen-

sive to deploy and maintain, the price of these

small cell packages are significantly lower and,

combined with a low-cost remote satellite rout-

er, allow mobile operators to expand coverage

into rural areas quickly and economically.

Small cell solutions are challenging the tradi-

tional models that were used by mobile vendors

by developing new systems that incorporate the

entire 3G core network on the same server plat-

form that hosts the small cells. The effect of

this is to release mobile operators from the

need to operate large and extremely expensive

proprietary 3G core networks and replace them

with much lower cost soft-switches. These

devices allow scaling to much smaller networks

– even to allow entirely separate networks to

be operated in a building, ship or aircraft.

Given the game-changing potential of femtocell

technology, mobile operators that are already

RNC TeleportHub System Remote Node B

IP interfaceIP interface

IP-Based Cellular Network

20 Quarterly Newsletter

invested in Femto-gateways for core operations

in major cities are naturally interested in lever-

aging their existing investment to support rural

coverage.

Mobile Data Statistics in AsiaOne important characteristic of satellite tech-

nology as it relates to cellular backhaul is that

satellite can be integrated easily with existing

terrestrial networks. When you consider mobile

data usage trends in Asia, it is easy to see how

this can be a valuable benefit.

According to research from the International

Telecommunication Union1, South Korea and

Japan are ranked number one and number two

worldwide in mobile broadband penetration,

with 91 and 87.8 percent penetration respec-

tively. The ITU also found that, by the end of

2011 there were 6 billion mobile subscriptions

worldwide – roughly 87 percent of the world

population.2 Of those 6 billion mobile subscrip-

tions, 4.5 billion came from the developing

world, with adoption in China and India driving

much of the growth. Unsurprisingly, the top

three mobile operators in the world are from

these two countries (China Mobile, China

Unicom, and Bharti Airtel India, according to

Portio Research3).

In countries like this, which have large and

highly populated urban areas, there is a high-

level of telecommunications infrastructure

already in place in major cities. While extending

this infrastructure to rural areas with terrestrial

technology can be complicated and costly, sat-

ellite presents a strong complementary solution

that can overcome geographic barriers and

extend mobile network from cities to remote

areas affordably and efficiently.

ConclusionAs wireless communications technology contin-

ues to evolve and operators are able to offer

greater and more sophisticated high-speed

wireless data services to customers, they need

a solution that can backhaul data efficiently and

affordably. Because satellite can reach places

that no terrestrial technology can, it is the ideal

solution for mobile operators to reach remote

and rural areas that are lacking 3G and 4G cov-

erage. Additionally, as satellite technology con-

tinues to evolve with the development of band-

width management breakthroughs and integra-

tion with small cell technology, it is becoming

easier to deploy and significantly more afford-

able to manage.

By using satellite to extend cellular coverage to

remote and rural areas in Asia-Pacific, where

mobile technology continues to be the primary

way that individuals access the Internet, mobile

operators are able to expand their customer

base while also facilitating important economic

and social change by improving access to infor-

mation.

Richard Deasington has more than 25 years of experience in the telecommunications industry, holding senior level positions in

R&D and Engineering working closely on voice, data and transmission network systems. In his current role as Director of Market

Development for iDirect, Richard is currently responsible for leading iDirect’s engineering and sales efforts for GSM backhaul solutions.

Prior to joining iDirect, Richard held Managing Consultant position at PA Consulting Group and later Questus Ltd where he focused on

mobile systems: GSM and 3G systems in particular. He has been involved in a large range of mobile related activities from architecting

the world’s first shared 3G network to leading the design of a range of network planning tools. Richard has written several well-known

books and published many articles on subjects ranging from 3G power amplifier efficiency to network sharing and push-to-talk. Richard

holds a Bachelor of Science degree with Honors in Computer Science with Biology from the University of London.

1 http://www.itu.int/ITU-D/ict/facts/ 2011/material/ICTFactsFigures2011.pdf

2 http://www.itu.int/ITU-D/ict/statis-tics/at_glance/KeyTelecom.html

3 http://www.portioresearch.com/Ranking09.html

22 Q2•2012 23

Interview with Erez Antebi, Chief Executive Officer, Gilat Satellite Networks

What role does satellite play in the cellular market?

Cellular networks have been expanding over the past decade, sometimes at surprising rates, and the

underlying transmission infrastructure is the “make or break” of this expansion. Terrestrial-based

transmission technologies such as fiber-optic cables, DSL, SDH and Microwave cover most of the

densely populated areas but for countries with large rural populations, many areas cannot be reached

if one relies only on terrestrial transmission. By using satellite broadband transmission systems

mobile operators gain unlimited geographical access and can provide their subscribers with coverage

virtually anywhere. Mobile operators that have taken advantage of this benefit have succeeded in

Gilat Satellite Networks is a leading provider of products and services for satellite-based

broadband communications. Gilat develops and markets a wide range of high-performance

satellite ground segment equipment and VSATs, with an increasing focus on the consumer

and Ka-band market. In addition, Gilat enables mobile SOTM (Satellite-on-the-Move) solu-

tions providing low-profile antennas, next generation solid-state power amplifiers and

modems. With over 25 years of experience, and over a million products shipped to more

than 85 countries, Gilat has provided enterprises, service providers and operators with effi-

cient and reliable satellite-based connectivity solutions, including cellular backhaul, bank-

ing, retail, e-government and rural communication networks. Gilat also enables leading

defense, public security and news organizations to implement advanced, on-the-move tacti-

cal communications on board their land, air and sea fleets using Gilat's high-performance

SOTM solutions.

expanding their service footprint and growing their subscriber base and service portfolio. In addition,

operators have been awarded large scale government USO (Universal Service Obligation) project for

providing rural telephony services using this kind of satellite-based cellular backhaul.

How has Gilat been addressing this market?

Gilat has been focusing on the cellular back-

haul market for many years and we have

been continuously investing both in develop-

ing customized solutions dedicated to opti-

mize cellular backhaul, and integration with

the leading cellular equipment vendors such

as Huawei, ZTE, Ericsson and others, in order

to ensure seamless multi-vendor operation of

the solution. We have deployed over 40 cellu-

lar backhaul networks around the world using

our satellite broadband systems. As an expe-

rienced market leader we are able offer

mobile the most advanced VSAT systems that

allow them to deliver the highest quality cel-

lular service to their users while saving satel-

lite bandwidth.

INTERVIEWINTERVIEW

Figure 2. Rural Cell Tower with VSAT, Africa (Photo: Gilat)

SkyEdgeⅡ Hub

BSC/RNCSkyEdgeⅡ Accent

Figure 1. Cellular Backhaul over VSAT


How do you view the progress of cellular backhaul over satellite?

We believe that the business case for using VSAT technology for cellular backhaul is growing even

stronger than before. Mobile operators are seeking ways to expand their coverage and to address

new market segments, and cellular vendors are releasing new compact pico-cell and femto-cell base

stations that are ideal for the remote locations outside the reach of the terrestrial infrastructure

where satellite is the only broadband communications means. Leading operators such as Orange,

Telefonica, China Unicom, Optus and many more use our cellular backhaul solution in order to estab-

lish communications between their remote base stations and their core network. In the past these

networks would only have had only a few dozen sites but nowadays we are deploying cellular back-

haul networks with hundreds of sites. In addition, mobile operators are taking advantage of the fact

that VSAT technology can enable rapid-deploy cell-sites that can be used for a wide range of scenari-

os such as sports events or disaster recovery.

What new advancements and innovations do you see in this market?

Because the cellular market is a fast growing and highly competitive one, it is necessary to innovate

constantly in order to remain in the game. We recently deployed a network in Africa which imple-

mented a new breed of 2G base stations that are able to transmit the calls directly to one another

(BTS-to-BTS). We were able to support this new functionality due to the fact that the VSAT system

that we provided for this project is capable of simultaneously combining Mesh and Star connectivity.

This was the first ever deployment of its kind. Another example is an emergency response project in

Asia that required cellular connectivity for a convoy of vehicles, while in motion, and outside the cov-

erage area of the network. In order to achieve this this we used our low profile SOTM antenna system

connected to a base station both of which were mounted on a jeep.

A common dilemma that many operators face when designing the satellite potion of a cellular net-

work is whether to deploy SCPC or TDMA systems as each one is most suited for a particular set of

network conditions. These conditions cannot always be predicted in advance and the wrong choice

leads to wasted bandwidth. One of our latest developments on our SkyEdge II VSAT platform is the

Accent, a modem that can switch between SCPC or TDMA mode depending on the network condi-

tions. This development addresses the challenge and gives operators greater flexibility when deploy-

ing satellite based backhaul. We believe that this flexibility will contribute further to the increasing

demand for the advanced cellular backhaul solutions that we develop.

Erez Antebi is the Chief Executive Officer at Gilat Satellite Networks. Erez Antebi has been with Gilat for over 17

years. In his latest role as executive advisor to the CEO, Erez led Gilat’s entry to the new market of spot-beam satel-

lites and Ka Band VSAT technology. Previously Mr. Antebi served as Gilat’s Chief Executive Officer for Gilat Network

Systems (GNS) and Spacenet Rural Communications business units. Mr. Antebi previously served as the CEO of

Clariton Ltd, Gilat’s Chief Operating Officer (COO) and other executive positions in Gilat Satellite Networks LTD. Mr.

Antebi holds an MSc and a BSc, Summa Cum Laude, in Electrical Engineering from the Technion, Israel Institute of

Technology, Haifa.

Figure 3. Solar powered Base station and VSAT, Asia (Photo: Gilat)

26 Q2•2012 27

The Case for Hosted Payloads in Asia Jose Del Rosario, Senior Analyst, Northern Sky Research (NSR)

Growing concerns over Asia’s flashpoints and

potential hotspots are leading to a burgeoning

arms race within the region, led and proliferat-

ed by China. Large, wealthy but over-extended

countries as well as small, cash-strapped

nations are looking for ways to counter China’s

resurgence. Hosted payloads present large,

wealthy countries with options to quickly deploy

assets, while cash-strapped nations can exer-

cise the arrangement to achieve some kind of

parity with China on space-based capabilities.

In past, present and future military activities,

the commercial satellite industry was, is and

will continue to be a key player in addressing

strategic planning for current and future appli-

cations for a variety of mission requirements.

Leasing of satellite bandwidth has been the

most popular and most prominent option gov-

ernments have used to date.

Over time, however, as governments are

required to continue and increase engagement

via tactical and ISR (intelligence, surveillance &

reconnaissance) missions, while at the same

time working under heavy budget constraints,

more creative, cost-effective and quickly deploy-

able arrangements have to be undertaken.

China, Asia’s Flashpoints and Increasing Military BudgetsIn Asia, its many hotspots may be the impetus

FOCUS ASIAFOCUS ASIA

that could drive the hosted payload arrangement. The focus on mili-

tary activities has largely been concentrated on Iraq and

Afghanistan over the past decade, but as U.S. and Allied engage-

ment appears to be drawing to a close in terms of troop presence,

the new focus is headed towards the Asia Pacific. Indeed, the U.S.

Department of Defense has coined its so-called “Pivot Strategy

towards Asia,” and some satellite operators have indicated to NSR

that the shift in terms of demand has already begun.

There are currently five potential flashpoints in the region that could

erupt into a full blown conflict at any given time. Apart from the

threat of piracy, China is not only part of the other four potential

flashpoints but is considered a major component or player in each.

Foremost and related to these concerns is its military spending,

which is the second largest in the globe after the U.S. China official-

ly announced that military spending will rise by 11.2% in 2012,

pushing the budget to $110 billion. However, experts estimate that

Beijing's actual military spending could be as much as double the

official figures. In 2010 for instance, the U.S. Pentagon estimated

China's real total military outlays were already at over $160 billion.

The 2012 increase follows a 12.7 percent rise in 2011 and a string

of double-digit increases over the past two decades.

Various reports indicate that China’s spending is towards developing

an aircraft carrier, a stealth fighter jet, and missiles that can shoot

down satellites. China’s anti-satellite or ASAT weapon provides a

direct justification for hosted payloads:

• Hosted payloads can be deployed relatively quickly in case

military satellites are shot down.

• Hosted payloads in terms of cost are generally less expensive

compared to dedicated military satellites so funds for capaci-

ty-building are better spent.

Beijing is also building new submarines and ships, and developing a

range of anti-ship ballistic missiles. Its armed forces, the People's

Liberation Army, have more than two million personnel, which is the

biggest military in the world.

The result is that Asian military spending is expected to overtake

Europe in 2012 for the first time in centuries. Defense spending for

European members of NATO have dropped below that of Asia, even

if Australia at around $60 billion is removed from the Asian figure.

India, which is primarily concerned over Pakistan but is also in a

superpower race with China, has increased its military budget to

$49 billion.

With an escalating arms race, how would nations, particularly small

nations with limited budgets, boost their capabilities? A nascent

market proposition that governments, specifically their military

agencies, have used is hosted payloads, but exercising these

options globally has been relatively limited. However, as countries

in the region cannot match or outspend China in military hardware

including space-based capabilities, hosted payloads should provide

or become an increasingly attractive option to narrow the gap.

As the partnership between governments and the commercial satel-

lite industry becomes stronger, hosted payloads will likely become a

growing option by which governments take advantage of more long-

term arrangements that help buffer China’s build-up.

Market ProspectsSouth Korea’s communications satellite, Koreasat 5 (Mugungwha 5),

launched in 2006. The satellite offers secure military communica-

tions for the Korean defense forces. The payload carries 12 military

relay terminals and 24 commercial terminals, with military coverage

from the Malacca Strait to the central Pacific Ocean areas.

On 25 March 2012, an International Launch Services (ILS) Proton M

vehicle successfully launched the Intelsat 22 satellite, which carried

a specialized UHF communications payload for the Australian

Defense Force (ADF). Once operational in May, it is expected to

have a useful life of approximately 18 years.

For the ADF, the launch is its second deployment, the first of which

was aboard the Optus C1 satellite launched in 2003, which was a

UHF payload as well. It will not be surprising to see more hosted

payloads deployed by the ADF in the coming years, particularly as

the Optus C1 satellite comes to its end of life.

Other nations can emulate the ADF and Koreasat’s example in terms

of managing costs to facilitate space-based capabilities, particularly

nations that have tight and/or limited budgets. The ADF program in

general and the latest launch in particular establishes the viability

North and South Korea officially remain at war. North Korea launched a rocket carrying a weather satellite in April 2012. The launch was a failure but region remains highly concerned over the North’s nuclear development program and missile technology. Various reports indicate that China has conducted military sales to North Korea despite a ban.

China and Japan continue tensions over disputed islands northeast of Taiwan.

Beijing’s military spending has been on the rise and is estimated to be much higher than its officially released figures. As a result, Taiwan has been upgrading its military aircraft and air defenses.

China, Vietnam and the Philippines have competing claims over the Spratly Islands. The surrounding waters are believed to contain vast reserves of oil and gas.

Threat of piracy is constant.

Korean Peninsula

East China Sea

Taiwan Strait

South China Sea

Strait of Malacca

FlashpointsandHotspots Description

Regional Flashpoints and Hotspots

Source: NSR


and value proposition of hosted payloads in

delivering customized space solutions for gov-

ernment and military users, particularly during

times of severe budget cuts and fiscal con-

straints.

Indeed, in its latest market research study,

Hosted Payloads on Commercial Satellites, 2nd

Edition, NSR found that the market will become

more fully developed over the next 10 years

where it has been fairly limited as an option

exercised by governments during the past

decade. From 13 hosted payloads in 2012, the

market is expected to grow to over 180 in-ser-

vice payloads by the end of 2022. Significant

factors in this growth are the instruments

aboard the Iridium NEXT constellation.

Military communications missions are expected

to drive revenue streams for the entire hosted

payload market. Historically, the level of pro-

curement has been high in dollar terms, particu-

larly the ADF contract that carried a $167 mil-

lion price tag. The recent ADF 2012 launch is

likely at the same level as its 2003 predecessor

in dollar terms. Over time, more military pro-

grams similar to the ADF and Koreasat 5 are

expected to emerge.

It is worth noting that Asia has actually been

one of the forerunners in hosted payloads over

the past decade and with the region’s growing

dependence on space-based resources for spe-

cialized capabilities, the value proposition of

hosted payloads in the region should strength-

en as well.

Globally, from an estimated $106.2 million in

2012, revenues for payload equipment, engi-

neering services and commercial satellite oper-

ator hosting services are expected to range

from $330.8 million to $554.0 million by 2022,

yielding cumulative revenues of $1.8 billion to

$2.9 billion over an 11-year period. The range

of revenue streams depends largely on the

types and varying costs of hosted payload

equipment, and here, NSR conducted a scenar-

io-based approach in its forecast methodology

to reflect various payload complexities.

The revenue flows, when taken from a cumula-

tive perspective, do suggest increased streams

and thus opportunities in this given market.

The specific annual revenue flows could be

erratic; however, the overall trend of market

opportunity is expected to increase within the

forecast period.

Although long procurement processes are

expected largely due to the inherently complex

hosted payload arrangements as well as asso-

ciated fiscal and budget issues, the hosted

payload proposition as a feasible capability-

boosting instrument is expected to be exer-

cised by a host of Asian countries over the mid

to long term. A sustainable and viable busi-

ness model has emerged exemplified by the

Australian and Korean programs whereby risks

associated with hosting complex military

instruments can be justified by commercial

operators with the r ight compensation

arrangements and risk-mitigating safeguards.

Bottom LineThe recently successful launch of the ADF

hosted payload aboard the Intelsat 22 satellite

as well as the solid track record of both the

Korean and Australian programs have estab-

lished a firm layer of confidence in Asia’s host-

ed payload market. Over time, with Asia’s

flashpoints becoming more serious as well as

China’s spending and military ambitions creat-

ing more concern, instability and vulnerability

in the region’s smaller and less affluent

nations, hosted payloads are likely to become

a leapfrogging strategy to be adopted over

time.

Moreover, countries outside the region that

have a large interest (such as the U.S.) may

adopt a hosted payload strategy as well to

complement its internal asset build-up to

quickly and cost-effectively contain, track and

prepare for impending crises.

e level of orders and the same kind of applica-

tions.

Jose Del Rosario is a senior member of the consulting team and conducts research

in policy analysis, economic indicators, regulatory initiatives and end user demand

trends. Prior to joining NSR, Jose worked with USAID/Philippines, Frost & Sullivan, the

European Commission, the Malaysian Embassy, and the Law Offices of Irwin & Lesse.

Jose holds an M.A. in Applied Economics from The American University, and a B.S. in

Political Science/International Relations from the University of Santa Clara.

This article is an excerpt from

a new NSR report entitled

Hosted Payloads on Commercial

Satellites, 2nd Edition.

Complete information can be found at

www.nsr.com

UHF, X and Ka-band

12 relay terminals in Ka-band and SHF

UHF

Australian Defense Forces

Koreasat 5 (Mugungwha 5)

Australian Defense Forces

Program/GovernmentEntity Payload

Asia’s Hosted Payload Programs for Military Communications

Source: NSR

LaunchDate

NumberofHostYearsHostSpacecraft

Prime contractor is Mitsubishi Electric Company (MELCO); assembly, integration and testing by Space Systems/Loral

Alcatel Alenia Space

BSS-702B bus

SingTel Optus C-1 satellite

Koreasat 5

Intelsat IS-22

20

15

15

2003

2006

2012

Deployments & In-service Hosted Payloads on Commercial Satellites

Source: NSR

200180160140120100

80604020

02012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Hosted Payloads DeployedIn-service Hosted Payloads

Hosted Payload Revenues on Commercial Satellites

Source: NSR

600.0

500.0

400.0

300.0

200.0

100.0

02012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Baseline RevenuesModerately Priced PayloadHighly Priced Payload

30

FSS Industry Driven to Increased Partnerships, Innovative Satellite ProcurementWei Li, Senior Consultant, Euroconsult

A dynamic and diversified industryIn 2011, the FSS industry counted 40 active

fixed satellite system (FSS) operators of differ-

ent sizes and regions. Most FSS operators are

solely involved in satellite activity and are not

part of the larger telecommunications compa-

nies. Presently, eight FSS operators are busi-

ness units of incumbent telecom operators

(Hellas Sat, Indosat, KT Corp., SingTel, Optus,

Telkom Indonesia, Telenor and Vinasat) .

Thaicom, which also has business from cellular

and terrestrial broadband activities, derives only

a part of its total revenues from fixed satellite

activity. In addition, EchoStar, a large U.S. set-

top-box manufacturer and owner of pay-TV pro-

vider Dish Network, now leases some satellite

capacity to third parties other than Dish

Network. Fifteen of the satellite operators are

publicly listed companies, either on their own or

through a parent telecom company. Two new

companies have started commercial operations

in 2011: Avant i Communicat ion (United

Kingdom) and Yahsat (Abu Dhabi).

Euroconsult segments these FSS operators into

three main categories:

• Large top-tier global operators. This

includes the four leading and globally

active operators: SES, Intelast, Eutelsat

and Telesat. They account for more than

two-thirds of the industry’s revenues. They

have large satellite fleets, significant

economies of scale, good access to distri-

bution channels, great access to capital

and a large portfolio of services.

• Regional operators with medium-sized

satellite fleets. The majority of operators

fall into this category. They are operating

on a regional basis, covering one or two

continents, and generally have more diffi-

culty coping with the capital intensity of

the satellite industry. However, in many

cases, they have a good regional distribu-

tion network and sufficient knowledge of

customers’ needs and their regions’ speci-

ficities (ex: JSAT, Star One, Optus, Arabsat

and RSCC).

• Emerging small national and regional

operators. They have one or two satellites

at most in operation; in many cases, they

primarily serve national interests (e.g.,

Hellas Sat, Vinasat, Paksat, Venesat, etc.).

SATELLITE TRENDSSATELLITE TRENDS


Emergence of new market playersIn the last few years, several new satellite

operating entities have emerged in various

world regions. Two major categories of entrants

can be identified:

• State-owned national satellite operators

that mainly serve national interests and

typically have a domestic focus (e.g.,

Paksat, KazSat, Nigcomasat, Vinasat,

Venesat, Yahsat, Arsat, AzerSpace); and

• Private regional satellite operators that try

to profit from capacity shortages in certain

areas and markets (such as Avanti and

NewSat).

While the privately owned satellite start-ups try

to assure financing and the realization of the

business plan through an aggressive pre-launch

purchase policy, the nationally owned operators

seem to have a more secured domestic busi-

ness future. They have less pressure on finan-

cial performance, since they are largely subsi-

dized by their government shareholders.

The list of national satellite operators that are

at least partially owned by governments

includes Paksat (Pakistan), Venesat (Venezuela),

Vinasat (Vietnam), and Yahsat (Dubai), which

are already operational, as well as Arsat

(Argentina), Kazsat (Kazakhstan), Nigcomsat

(Nigeria), AzeSpace (Azerbaijan), and UkrSat

(Ukraine), which are expected to come in the

years ahead. The list of countries that are

reviewing possible satellite acquisition is grow-

ing (ex: Angola, Bolivia, Laos, and Afghanistan).

Apart from increasing regional competition, the

entrance of those new satellite operators, in

particular the state-owned systems, could have

a double-sided effect on the industry. On the one

hand, the establishment of national operators

will close certain markets for foreign operators

either because of regulatory measures or by sim-

ply favoring national over international capacity.

On the other hand, markets could open up as

national operators face capacity shortages and

subsequently take an opportunistic approach to

import additional third-party capacity.

It seems relatively clear that achieving profitabili-

ty is difficult for small operators. Therefore, there

are more small operators trying to increase their

fleet size as quickly as possible to achieve scale

economies in opex and capex, and to amortize

their investments faster. A few examples are

Arabsat and Gazprom Space Systems, which

have significant fleet expansion plans over the

next few years. In addition, new entrants such as

Avanti and Yahsat are trying to put a constella-

tion of satellites in place in a short timeframe

rather than depending solely on one satellite.

The FSS industry has entered into a new capex cycleOver the past 10 years, the industry experienced

four phases of changes in the capex-to-sales ratio.

• In the early 2000s, capex represented on

average just over 50% of sales, while in

the mid-1990s, the ratio was around 70%.

This was the period when the operators

launched numerous heavy satellites for

the booming TV and Asian markets.

• In 2003, the capex-to-sales ratio of the

industry plunged from 50% to 30%, when

all but three operators (Measat, Thaicom,

and Star One) reduced their capital expen-

ditures significantly. The plunge occurred

after the large operators entered a down-

turn in their investment cycles, with sever-

al large satellites being launched in 2004

(Anik F2 and Intelsat 10) and in 2005 (IA-8

and IPStar), which meant that capital

expenditures started to decelerate in

2003. The plunge also reflected low satellite ordering activity

in 2002, when orders for only six FSS satellites were sent to

manufacturers. There was also relatively low launch activity in

2003, as only eight FSS satellites were launched.

• In 2005, capital expenditures declined again to an industry

average of 30%, which was caused by major capex cuts experi-

enced by Intelsat, Eutelsat, Loral and regional operators such

as Measat. The plunge in capex-to-sales ratios was the result

of the low number of satellite orders in 2004 and the effects of

a tight cost policy by private equity-owned operators.

• Since 2007, capital expenditures have started to rise again,

signaling, on the one hand, the current replacement cycle in

the FSS industry and, on the other, the growth and expansion

strategies that a number of FSS operators are now pursuing.

The current level is at around 45% which is close to the level

of the early 2000’s.

The trend of increasing capital expenditures is expected to continue

at least for the next couple of years because many operators such

as Intelsat, SES, Arabsat and RSCC still have a large number of sat-

ellites under construction, and some are in the midst of their compa-

nies’ largest fleet renewal phases in history. Eutelsat also confirmed

in 2011 that it would likely keep a level of 40%-50% of capex to

sales over several years. Although a slowdown in demand could

affect plans for expansion capacity, the investment cycles that need

two to three years to build and launch the satellites results in fairly

good visibility on capex requirements in the next two to three years.

More partnerships and ventures After the large mergers in the middle of the decade and several

regional or national consolidations in 2007-2008 with Telesat, Loral,

Skynet, JSat, SCC, Chinasat and Sinosat, consolidation activity has

been lower. However, FSS operators continued to invest on an

opportunistic basis in selected in-orbit assets (satellites) rather than

acquiring entire companies. This could be seen in Hong-Kong based

ABS’ acquisition of Mabuhay’s Agila-1 satellite and the Koreasat-2

and Koreasat-3 of KT Corp. Intelsat acquired Protostar-1 and SES

Protostar-2 satellites, already both deployed in orbit after being auc-

tioned due to Protostar’s bankruptcy. Intelsat also bought the aging

Amos-1 satellite and uses it as an inclined orbit satellite.

Meanwhile, Amos-Spacecom acquired the former Asiasat-2 satel-

lite to bridge the gap until the launch of Amos-5.

In parallel, another trend has been observed, namely that of regional

strategic partnerships and joint ventures. Although strategic partner-

ships between operators are nothing new, they seem to have

become an increasingly attractive alternative for operators to expand

into new markets with limited costs and risks, and they involve the

large global and small regional and national FSS operators.

In addition to historic partnerships such as Horizon, an Intelsat and

JSat joint venture for North America, partnerships between Eutelsat

and Nilesat in the Middle East, Eutelsat and RSCC for Russia and

Central Asia, and Intelsat and TSB for Western and Central Eastern

Europe, recent regional strategic partnerships involving FSS opera-

tors include:

Capital Expenditure vs. Satellite Orders in the FSS IndustryIndustry

80

70

60

50

40

30

20

10

01996 1998 2000 2002 2004 2006 2008 2010

Number of satellite ordered and capex as % of revenue (World, 1996-2010)

Capex to sales ratio (capex in % of revenues) for a sample of FSS operators

Replacement and expansion phase

Peak in ordersRecord lows in satellite order and capex to sales ratio

Satellite orders (in # of GEO FSS satellites per year)

Backlog as a Multiple of Revenues in the FSS Industry

Backlog as a multiple of revenues (World, 2000-2010)

* Average for a sample of companies including mainly SES, Intelsat, Asiasat, SatMex, Thaicom (not including IPStar), Eutelsat , Telesat as well as New Skies Satellite and Loral Skynet in former years.

Max backlog/revenue

Average sample*

Min. backlog/revenue

10

9

8

7

6

5

4

3

0

2

1

2000 20102001 2002 2003 2004 20092005 2006 2007 2008


• A partnership between ictQatar and Eutelsat to launch a high

throughput broadband satellite to the 25.5°E orbital position in

2012

• Yahlife, a strategic joint venture between SES Astra and UAE-

based Yahsat for provision of DTH capacity and services for

the Middle East region

• New Dawn, a regional satellite joint venture between Intelsat

and local African companies to provide satellite capacity and

service for the African market

• A strategic agreement between ABS and SingTel for the pur-

chase of transponder capacity on ABS-2 that SingTel will mar-

ket as ST3

• An agreement between Measat and the Azerbaijan Ministry of

Communications and Information Technologies for the launch

of a new Azerspace/Africasat-1A satellite at the 46°E orbital

position

• An agreement between ABS and Satmex to jointly purchase

four Boeing satellites

Rather than acquiring and merging companies and/or assets in diffi-

cult markets, such strategic partnerships and joint ventures provide

market access opportunities for satellite operators while mitigating

their financial and market risks. This “cooperative” model seems par-

ticularly preferable for emerging markets with high uncertainty factors

and the need for a strong local partner. They also aim at managing

issues related to spectrum rights at different orbital positions.

The carriage of payloads for governments as a growing business opportunityAnother trend currently observed is an increasing interest from the

public side in hosted payloads, which are welcomed by commercial

operators as an additional source of revenue and/or as a means to

reduce capex. Examples were seen over the last 24 months with

contracts for SES and Intelsat. SES signed two contracts with the

European Space Agency (ESA) to host two EGNOS payloads on the

Astra 4B and 5B satellites, scheduled to be launched in 2011 and

2013, respectively. Intelsat was awarded a hosted UHF payload con-

tract by the Australian Defence Force onboard the Intelsat 22 satel-

lite, due to be launched in 2012. Although hosted payloads, in par-

ticular for the military, are nothing new in the FSS industry, they

seem to have gained more attention due to government budget con-

straints combined with the continuously increasing need for military

communications. Nearly all large FSS operators are actively looking

for more such opportunities.

In the U.S, this has resulted in the Hosted Payloads Alliance, an

association of industry players that aims to promote the concept of

hosted payloads. In Europe, the general interest of governments in

public-private partnerships should favor the development of hosted

payloads in the future. The European Space Agency recently signed

a PPP contract with Astrium Services for the development and oper-

ation of a data relay system, which will include at least one hosted

payload in addition to a dedicated satellite.

Wei Li is senior consultant at Euroconsult and editor of Maritime Telecom Solutions by Satellite - Global Market Analysis & Forecasts,

Aeronautical Telecom Solutions by Satellite - Global Market Analysis & Forecasts, Mobile Satellite Communications Markets Survey – Prospects to 2020, and Company Profiles – Analysis of FSS Operators. Euroconsult is a consulting firm specializing in satellite applica-tions, communications, and digital broadcasting, providing strategic consulting and analysis, comprehensive research reports and fore-casts, and executive-level events. Mr Li can be reached at [email protected].

Trend & Range in EBITDA Margin for the FSS IndustryEBITDA margin (in % of revenues) (World, 1998-2010)

* Adjusted EBITDA is EBITDA, not considering unusual items (severance, relocation costs, one-time compensation charges) and non-cash items.

Max. EBITDA

Weighted average adjusted EBITDA*

Weighted average EBITDA

Min. EBITDA

100%

90%

80%

70%

60%

50%

40%

30%

0%

20%

10%

1998 201020001999 2001 2002 2003 2004 20092005 2006 2007 2008

36 Q2•2012 37

Australasia Satellite Forum 2012Australasia Satellite Forum shows off region’s satellite

capabilities

The annual Australasia Satellite Forum took place in Sydney on the 16th of April 2012. The forum

brought together Australian Parliament representatives and industry heavyweights from around the

world to discuss the satellite industry in Australia, Asia and the Pacific.

The forum provided a great opportunity for open debate and discussion of challenges at the core of

the satellite industry today, with panels, roundtables and presentations focusing on the National

Broadband Network (NBN), supply and demand of satellite services, new technologies and first

responder communications in disaster zones. Forum hot topics included the NBN and the unique coop-

eration and competition that exists within the satellite industry.

Among the industry experts and market leaders in attendance were Shadow Regional

Communications Minister, Luke Hartsuyker, NewSat Founder and CEO, Adrian Ballintine, Arianespace

CEO, Jean-Yves Le Gall, SES Vice President Asia Pacific Glen Tindall, Intelsat Senior Sales Director

Robert Suber and Optus Director Paul Sheridan.

In the opening presentation, Shadow Regional Communications Minister, Luke Hartsuyker, provided

many insights into the applications of satellite communications within regional and remote Australia,

recognising the need for wireless communications and high-speed broadband while putting into ques-

tion the effectiveness and efficiency of the Labor Government’s NBN.

Mr Hartsuyker drew attention to the wealth that the mining boom is delivering to Australia, which,

like almost every other sector of the Australian economy is heavily dependent on “high speed reliable

communications, providing easy access to new markets, at home and abroad”. He reiterated that the

potential for regional Australia to increase its contribution to our economy is huge, as “communica-

tions will also provide new opportunities for new industries to move into regional areas: call centres,

data processors, designers, and software engineers”. Mr Hartsuyker also argued that better communi-

cations would provide many improvements to the quality of life in regional areas with “better health-

care, better opportunities and also entertainment in isolated locations”.

EVENT REVIEWEVENT REVIEW

Mr Hartsuyker continued by stressing how “Australia, all of Australia, must have modern high-speed

broadband”. His only question being: “How best to deliver that?”. With a portfolio covering not only

broadband but a wide range of communications issues including television and the mobile phone net-

work, Mr Hartsuyker couldn’t emphasise enough that “the satellite sector has a role to play in each

one of these arenas.”

The forum drew attention to the versatility of satellites when it came to providing fast, efficient, reli-

able and cost effective communications across the government, enterprise and consumer markets.

The satellite industry provides mobile phone coverage in parts of the country and some of Australia’s

key industries operate in these remote areas. According to Mr Harsuyker, “the satellite industry has

developed innovative solutions to ensure that mobile communications are available across 100% of

Australia’s land mass and out to sea.”

During the ‘Supply v Demand Satellite Operator Roundtable’ panel discussion, NewSat Founder and

CEO, Adrian Ballintine, discussed NewSat’s focus on the oil, gas, government, enterprise and military

markets, and also underlined the many benefits of satellite enabled communications in remote areas

both in Australia and overseas. With many government agencies, military and resource companies

expanding their operations into remote areas of Australia, the Middle East, Africa and South America,

NewSat has attracted many customers in need of fast and reliable communications on the eve of its

Jabiru-1 satellite launch. “Many Jabiru customers are existing customers of NewSat through our

existing Teleport business. Jabiru 1’s Ka-band satellite will be Australia’s first commercial satellite

and will provide NewSat customers with faster speeds, smaller end-user antennas and more cost-

effective solutions - along with more available bandwidth.”

Panel moderator, Senior NSR Analyst, Patrick French, steered focus of the conversation towards both the

cooperation and competition within the satellite industry. He defined the relationship between satellite

companies as “coopertition” and urged the panel to talk about their interactions and collaborations with

other companies within the fairly small and close-knit circle which makes up the global satellite industry.

Moderator Kevin French and NewSat CEO and Founder Adrian Ballintine discuss the cooperation and competition in the Australasia satellite industry, during the ‘Supply v Demand Satellite Operator Roundtable’ panel discussion. [Photo: NewSat]

Arianespace Chairman and CEO, Jean-Yves Le Gall presents on the satellite launch services and facilities offered by Arianespace and the cooperation that exists in the satellite industry, during the Australasia Satellite Forum. [Photo: NewSat]


First to speak, Mr Ballintine said that NewSat has an interesting perspective, being a new aspirant to

the world of satellite: “What I’ve learned in coming from other ally industries is that this is an industry

that’s good at cooperating and I’ve been generally surprised at how much cooperation we have been

lent in our journey going forward. I’ve been surprised for example that Arianespace CEO, Jean-Yves

Le Gall, will speak to me and say, “How do we help you move forward?”. Not with his sales hat on,

but in terms of helping us grow our vision. Arianespace has been extremely supportive and that then

manifests itself into how we see our journey progressing in developing the 8 orbital slots we have

with a dozen or so satellites that we are able to procure.”

Moreover, Mr Ballintine sees cooperation as extremely beneficial because it’s something which NewSat

has learnt a lot from, as the company found that it could get things done faster and more efficiently this

way. Combining muscle and putting forward a better solution for customers is what it’s all about, reiter-

ated Mr Ballintine. NewSat’s cooperation with Measat on Jabiru-1 and Jabiru-2 has helped the company

go forward. “Combining our intellectual sets helps us do things in a better way”, added Mr Ballintine.

The satellite operator panel echoed Mr Ballintine’s sentiments, “two parties can make a whole from

the parts that each doesn’t have”, explained SES Vice President Asia Pacific, Glen Tindall, and Robert

Suber, Intelsat Senior Sales Director, agreed, “cooperation and competition, combining the two is

becoming essential”, said Mr Suber.

According to Mr Suber, a lot has to do with the gestation period of a particular project. “From beer

coaster to seeing a satellite deploy takes about 3 years. So I think we’re all looking at mechanisms to

be able to enter the market earlier and take advantage of some opportunities earlier”, he added.

The Australasia Satellite Forum also provided opportunities for satellite experts to discuss the media

side of the business, as well as the role and capabilities of satellite-enabled first responder communi-

cations. Ultimately, the forum showcased an excellent line-up of Australian and Asian companies

which are complementing the rest of the world in the deployment of satellites and bringing innovation

to the global satellite communications industry with state-of-the-art, fast, reliable, efficient and cost-

effective solutions.

‘Supply v Demand Satellite Operator Roundtable’ panel discussion – Patrick French, Senior Analyst - NSR, Adrian Ballintine, CEO – NewSat, Paul Sheridan, Director – Optus, Glen Tindall, VP Asia Pacific – SES, Robert Suber, Senior Sales Director - Intelsat and Ng Guan Soon, Regional Manager – Technical Services Support Thuraya. [Photo: NewSat]

Platinum Member

Regular Member (Governments)

Affiliate Member

Regular Member

Gold Member

Asof23May2012

42

APSCC Welcomes a New Regular Member

NanoTronix

NanoTronix is a Korean company in Seoul, listed in the stock market (KOSDAQ, very similar to

NASDAQ in Korea), that specializes in the development and manufacturing of international standard

technology DVB-RCS (DVB-Return Channel via Satellite) based VSAT for hub and terminals.

Nano-Tronix is a total solution provider of Satellite Communication, manufacturing interactive

MF-TDMA VSAT modems for broadband service (upto Tx 4.7Mbps Rx 120Mbps) supporting star topol-

ogy of Point-to-MultiPoint remotes. NanoTronix is also a total SI/NI of all components of VSAT ODU/

IDU including FDMA etc of

- 1 way solution (Hub / Receiver)

- 2 way solution (Hub / IDU for Tx/Rx)

- Broadcasting solution.

OpenRCS 10000 is the TDMA VSAT Hub which supports Forward link (Downstream) 120Mbps and

Return link (Upstream) 18.8Mbps with system capacity (Concurrent Subscriber) maximum 3,500 sub-

scribers.

OpenRCS-4800 is an enterprise-grade VSAT Modem based on DVB-RCS, where the forward supports

DVB-S2 up to 120Mbps and return DVB-RCS based on MF-TDMA up to 4.7Mbps. OpenRS-4800 is the

most stable model commercialized up to 5 thousand units deployed during past decade.

VSAT (Very Small Aperture Terminal) solution converts the traditional land/marine communication

sites into a network that can be efficient nodes by offering value-added, online services previously

unavailable. It comprises the core of an efficient, cost effective and always-on satellite network, link-

ing all the sites- geographically remote from one another. VSAT is ideal for quick and efficient commu-

nication, gathering data and monitoring the status of all its networked sites in real-time.

NEW MEMBERSNEW MEMBERS

Untitled-1 5/9/2012, 2:22 PM1

Contact • MikeKIMDept. • SatComDivisionTel • +82-2-3444-7755E-mail • [email protected]

[email protected]


Satellite Industry News

Astrium Receives Secure Airborne Satcom Contract from YahsatMay 9, 2012 - Astrium has been awarded a contract to provide

airborne satcom systems from Star Satellite Communications

Company, a subsidiary of Al Yah Satellite Communications

Company (Yahsat). Initially Astrium Services will supply Yahsat

with airborne systems comprising modems, baseband equipment,

cryptos, network management and ground segment. The system

will help overcome the increasing requirement and demand for

secure, high speed transmission of data in the area.

Nilesat Chooses Cisco Media, Satellite, and Broadcast SolutionMay 11, 2012 - Cisco and Nilesat announced that Nilesat has

successfully installed Cisco Digital Media solutions for its

contribution network. Cisco's end-to-end Media, Satellite, and

Broadcast Video Solution provides all the important features

Nilesat will need in the digital headend, including acquisition, video

encoders and transcoders, video processors, encryption and

management. Using the Cisco Lifecycle Services approach, Cisco

and its partners developed a broad portfolio of services that

addressed all aspects of planning, deploying, operating, and

optimizing Nilesat's video network. The Cisco ROSA Video Service

Manager system will also provide a complete solution for end-to-

end management. It will monitor, manage, and control equipment

and services throughout the Nilesat network.

RSCC and Hughes Sign Technology Cooperation Memorandum of UnderstandingMay 14, 2012 - The Russian Satellite Communications Company

(RSCC) and Hughes Network Systems signed MoU under which the

companies will explore the development of multi-media video and

broadband Internet services via RSCC satellites in Russia. RSCC

expects to apply the experience gained by Hughes to the

development and management of satellite communications

networks in Russia. RSCC is furthermore willing to consider

providing Hughes with the necessary ground and space

infrastructure at RSCC's Space Communication Centres to conduct

testing and develop new solutions. Hughes, in turn, will thoroughly

examine the possibility of deploying its research and production

capabilities on Russian territory in the immediate vicinity of one of

RSCC's Space Communication Centres. RSCC and Hughes expect to

develop in the following year a full-scale partnership cooperation

program that would offer cost-effective solutions for public and

private entities interested in multiple-system services.

Space Systems/Loral Provides High Capacity Broadband Satellite to HughesMay 14, 2012 - Space Systems/Loral (SS/L) announced that the

EchoStar XVII satellite, designed and built for Hughes Network

Systems, a wholly owned subsidiary of EchoStar Corporation, has

arrived at the European Spaceport in Kourou, French Guiana, where

it will be launched aboard an Ariane 5 launch vehicle by

Arianespace. One of the highest capacity satellites ever built,

EchoStar XVII will be used to provide HughesNet® Gen4 high-speed

Internet service in North America. EchoStar XVII, with JUPITER

high-throughput technology, is an all Ka-band, broadband satellite

designed to provide well in excess of 100 gigabits per second

capacity to HughesNet's rapidly growing subscriber base. Its multi-

spot beam architecture will expand coverage and focus capacity on

the areas with the highest traffic demand for enhanced services by

consumers and businesses in North America.

Newtec Provides Key Satellite Communication Technology for EURO HAWKMay 14, 2012 - Newtec's IP traffic enhancement and shaping

technology Cross-Layer-Optimization has been implemented in the

flagship EURO HAWK Unmanned Aerial System (UAS) which

detects and collects information. The Newtec technology is

required in order to secure the downlink via satellite. EURO HAWK

is a joint program between Cassidian, an EADS company, and

Northrop Grumman. It is a UAS which signals a new era for

Germany’s Federal Armed Forces – the debut of the largest

unmanned aerial system in German airspace.

Ariane 5 ECA Orbits JCSAT-13 and VINASAT-2 May 15, 2012 - Arianespace successfully launched a direct

broadcast and a communications satellite: JCSAT-13 for Japanese


Satellite Industry News

operator SKY Perfect JSAT Corporation and VINASAT-2 for the

operator Vietnam Posts and Telecommunications Group (VNPT), as

part of a turnkey contract with Lockheed Martin Commercial Space

Systems (LMCSS). JCSAT-13 is to be positioned in geostationary

orbit at 124 degrees East, providing direct TV broadcast links to all

of Japan as a replacement satellite for JCSAT-4A, and its capacity

will meet satellite relay coverage demands in Southeast Asia.

JCSAT-13 is equipped with 44 Ku-band transponders and has a

design life exceeding 15 years. VINASAT-2 is the second satellite

launched by Arianespace for operation by the VNPT, and follows

the lofting of VINASAT-1 on an Ariane 5 flight in April 2008.

Equipped with 24 Ku-band transponders to handle radio, television

and telephone links for all of Vietnam, VINASAT-2 will operate from

an orbital position at 131.8 degrees East during a design lifetime of

15-plus years.

Thuraya and GTNT Say in One Voice ‘Hello Russia’May 15, 2012 -Thuraya Telecommunications Company has

announced the launch of its mobile satellite services in Russia in

partnership with GTNT. Spanning more than 140 countries,

Thuraya’s sophisticated satellite communications network

guarantees reliable, secure and affordable communications within

the world’s largest country, especially in remote and rural locations

typically underserved by terrestrial networks. Thuraya’s portfolio of

products includes high-speed data, voice and maritime offerings

that are tailored for the vertical markets. Through its partnership

with GTNT, Thuraya wil l provide uninterrupted satel l i te

communications services to federal, departmental and corporate

users in energy, petrochemical, construction, logistics, forestry,

relief and media sectors. GTNT is Thuraya’s sole Service Partner in

Russia authorized to distribute Company products, solutions and

services across the country.

Arqiva Takes Additional Satellite Capacity on EUTELSAT 7AMay 16, 2012 - Arqiva has signed a new contract with Eutelsat

Communications for additional satellite capacity to meet growing

demand for its Occasional Use satellite services. In this agreement

with Eutelsat, Arqiva has taken up 36MHz of capacity on EUTELSAT

7A. This provides Arqiva with excellent overall coverage of Europe

and specific coverage of the Middle East, Turkey and Russia. This

new contract for one transponder further consolidates a

longstanding partnership between the two companies. Arqiva has

the infrastructure and experience to help rights owners, program

makers and broadcasters to create and capture content, and to

manage and deliver high quality television around the world. With a

fleet of SNG trucks and over 80 earth stations, Arqiva regularly

enables the managed global delivery of live and special events

including sports, news and entertainment.

Inmarsat Launches FleetBroadband Multi-VoiceMay 17, 2012 - Inmarsat announced the launch of FleetBroadband

Multi-voice, a new capability that will allow up to 9 simultaneous

telephone calls to be made through a single FleetBroadband

terminal. The enhancement to FleetBroadband (FB) will enable

vessel owners and managers to separate crew communications

from operational use. It will also provide crew with more privacy,

making it easier to make personal low-cost calls away from the

bridge. The new capability is targeted at any vessel with the need

to manage separate voice calls – particularly the merchant

maritime market, but also other vessels that have similar crew or

passenger communications requirements, such as superyachts or

deep-sea fishing vessels.

Successful Launch of H-IIA F 21 with SHIZUKU and SDS-4 aboardMay 18, 2012 - Mitsubishi Heavy Industries, Ltd. and the Japan

Aerospace Exploration Agency (JAXA) launched the Global

Changing Observation Mission 1st - Water “SHIZUKU” (GCOM-W1)

and the Korean Multi-purpose Satellite 3 (KOMPSAT-3) of the

Korea Aerospace Research Institute (KARI) by the H-IIA Launch

Vehicle No. 21 (H-IIA F21) from the Tanegashima Space Center. The

launch vehicle flew smoothly, and, at about 16 minutes and 3

seconds after liftoff, the separation of the KOMPSAT-3, then at

about 22 minutes and 59 seconds after liftoff, the separation of the

SHIZUKU were confirmed respectively.

APSCC Officers

PresidentYutakaNagai,SKYPerfectJSAT

Advisory BoardNongluckPhinainitisart,Ph.D.THAICOM

EuiK.Koh,Ph.D.JB Technologies

YasuoOtaki

DavidW.ThompsonOrbital Sciences Corporation

G.MadhavanNair,Ph.D.Indian Space Research Organisation

JohnCelliSpace Systems/Loral

RichardE.ButlerAsia Space

Board of DirectorsRichardBowlesArianespace

ThomasChoiAsia Broadcast Satellite

WilliamWadeAsiaSat

ZhihengFuChina Great Wall Industry Corporation

ThomasCarrollInternational Launch Services

TerryBleakleyIntelsat

YoungTaikKimKT Corporation

PaulBrown-KenyonMEASAT Satellite Systems

HiroyukiInahataMitsubishi Electric Corporation

TedMcFarlandOrbital Sciences Corporation

DaniIndraTELKOM Indonesia

DeepakMathurSES

TitusYongSingTel

DawnHarmsSpace Systems/Loral

ChristopheBauerSpaceX

EddieKatoThales Alenia Space, North America

2 0 1 2

01 02 03 04

05 06 07 08

09 10 11 12

17-22 50th International Paris Air Show, Paris, France www.paris-air-show.com/en/

18 CASBAA Satellite Industry Forum, Singapore www.casbaa.com

19-22 CommunicAsia2012, Singapore www.communicasia.com

19 CommunicAsia2012 Summit, Singapore www.communicasia.com

26-29 Military Satellites 2012, London, UK www.militarysatellitesevent.com/Event.aspx?id=711980

06June

13-16 26th Annual Conference on Small Satellites, Logan, UT, USA www.smallsat.org08

August

03-07 2012 EUMETSAT Meteorological Satellite Conference, Sopot, Poland

www.conferences.eumetsat.int

06-11 IBC 2012, Amsterdam, The Netherlands www.ibc.org

10-13 World Satellite Business Week, Paris, France www.satellite-business.com

11-14 5th Annual GDI APAC: Geospatial Defence & Intelligence Asia-Pacific, Thailand

www.geospatialdefenceasia.com/Event.aspx?id=731784

11-15 COMSYS VSAT 2012, London, UK www.comsys.co.uk

19-21 China Satellite 2012, Beijing, China www.china-satellite.org/index.htm

25-27 APSCC 2012 Satellite Conference & Exhibition, Seoul, Korea www.apscc.or.kr

09September

APSCC Newsletter - A Great Way to AdvertiseWith a vast international circulation that includes the most prominent members of the satellite, space and communications communities, APSCC

Newsletter is seen by an elite readership of industry professionals around the Asia-Pacific and globally.

Your message will reach the right people. Advertising in APSCC Newsletter is a cost-effective way to reach your potential clients and business

partners. APSCC Newsletter can bring your company to the attention of key personnel in the satellite and space technologies, telecommunications and

broadcasting industries. We offer you exclusive contact with people in the government, academic and industry sectors.

APSCC is a non-profit, international regional association representing all sectors of satellite and space related industries. APSCC membership is open to any government body, public and private organization, association, or corporation that is involved in satellite services, broadcasting, manufacturing, launch services, risk management or associate fields such as datacasting, informatics, multi-media, telecommunications, and other outer space-related activities with interests in the Asia-Pacific region.

APSCC aims to exchange views and ideas on technologies, systems, policies and outer space activities in general along with satellite communications including broadcasting for the betterment of the Asia-Pacific region. Conferences, forums, workshops, summits, symposiums, and exhibitions are organized through regional coordination in order to discuss issues that affect the industries and to promote and accelerate the efficient introduction of outer space activities, new services and businesses via satellites.

In order to disseminate industry related information, APSCC publishes a quarterly satellite magazine as well as a monthly e-newsletter, which are distributed worldwide to members and others. The quarterly magazine and other publications are available on the Web at www.apscc.or.kr.

Inho Seo, EditorAsia-Pacific Satellite Communications Council Suite T-1602, Poonglim Iwantplus255-1 Seohyun-dong, Bundang-guSeongnam, Gyeonggi-do, 463-862 KoreaTel: +82-31-783-6244 / Fax: +82-31-783-6249E-mail: [email protected] / Website: www.apscc.or.kr

APSCC Newsletter is a publication of the Asia -Pacific Satellite Communications Council. It is published quarterly in March, June, September and December. The contents of this publication may not be reproduced, either in whole or in part without, prior written permission from the editor. The views and opinions expressed are those of the authors and are not necessarily supported by APSCC.

Design and Printing by Design CRETATel: +82-2-454-2022 / Fax: +82-2-458-1331 / Website: www.designcreta.com

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