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Page 1: January 2007 SAT MAGAZINEJanuary 2007 SAT MAGAZINE.COM INDUSTRY NEWS AMC-18, WildBlue-1 Satellites Successfully Launched KOUROU, French Guiana — On Dec. 8, Arianespace placed two

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SATMAGAZINE.COMJanuary 2007

Page 2: January 2007 SAT MAGAZINEJanuary 2007 SAT MAGAZINE.COM INDUSTRY NEWS AMC-18, WildBlue-1 Satellites Successfully Launched KOUROU, French Guiana — On Dec. 8, Arianespace placed two

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SATMAGAZINE.COMJanuary 2007

Vol. 4 No. 9, January 2007

TABLE OF CONTENTSClick on the title to go

directly to the story

COVER STORY

.

By Peter I. Galace By Chris Forrester

32/ NewChallengesin NetworkDesign

Europe-based satelliteoperators SES andEutelsat are in for achallenging year.

by Alan Gottliebwith Mike Hinz

3 / Notes from the Editor

4 / Calendar of Events

5 / Industry News

10 / Executive Moves

15 / New Products and Services

36 / Vital Statistics

37 / Market Intelligence: Vertical

Markets and IP Over Satellite

40 / Advertisers’ Index/

Stock Quotes

FEATURE EXECUTIVE

34 / Interview withGlobecommCEO DavidHershberg

27 / SES Astraand Eutelsat:in the NewsAgain

19 / The AsianTelecom Market:A lot on TheirPlate

There are manydevelopments in the Asiantelecommunications marketthat could prove instructiveto US operators.

Network planning isbecoming more and morecomplex in the newsatellite environment.

VIEWPOINT

Industry veteran andGlobecomm CEO DavidHershberg speaks on theprospects in the satelliteservices market and otherissues.

REGULAR DEPARTMENTS

SPOTLIGHT

by Martin Jarrold, Global VSAT Forum

Page 3: January 2007 SAT MAGAZINEJanuary 2007 SAT MAGAZINE.COM INDUSTRY NEWS AMC-18, WildBlue-1 Satellites Successfully Launched KOUROU, French Guiana — On Dec. 8, Arianespace placed two

SATMAGAZINE.COM

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January 2007

Satnews Publishers is the leadingprovider of information on theworldwide satellite industry. Foremore information, go towww.satnews.com

Cover Design by: Simon Payne

Published monthly bySatnews Publishers800 Siesta Way,Sonoma, CA 95476 USAPhone (707) 939-9306Fax (707) 939-9235E-mail: [email protected]: www.satmagazine.com

Baden WoodfordContributing Writer, Africa

Bekah Benefiel([email protected])Advertising Sales

Copyright © 2007Satnews PublishersAll rights reserved.

EDITORIALSilvano PaynePublisher

Virgil LabradorManaging Editorand Editor, North America

Chris ForresterEditor, Europe, Middle Eastand Africa

Bernardo SchneidermanEditor, Latin America

Peter GalaceEditor, Asia-Pacific

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

David Hartshorn, Martin JarroldContributing Writers, Europe

NOTE FROM THE EDITOR

The Telecom Market

(

The traditional show kicking off the year for the satelliteindustry is the Pacific Telecommunications Council

Conference and Expo (PTC) in Honolulu, Hawaii. Thosefortunate enough to be sent to sunny Hawaii in Januaryknow that the PTC looks into the Asia-Pacifictelecommunications market and invariably the questionalways arises whether trends and developments in the USand Europe have a spillover effect on the Asian market or

vice-versa. It’s really a chicken and the egg kind of question.

For one segment of the telecom market, the consumer cellular market, onething is certain the US has lagged behind in terms of technicaldevelopments and with is Asian and European counterparts. Now withmobile TV and quadruple play services poised to explode in the cellularmarket, the US cannot afford not to look into the experiences in otherregions, particularly Asia-- the largest market in the world. That’s whyfor this special issue on the evolving telecommunications market forsatellite services, we look into trends and developments in the diverseAsian market. Our Asia-Pacific editor based in Manila, who has beencovering the Asian telecom market for over 15 years writes the coverstory for this issue.

There is certainly a lot we can learn.

Article Contributions to SatMagazine

Satmagazine accepts article contributions from the industry. Weencourage contributions that deal with issues affecting theindustry as opposed to company or product-specific articles. Weare specifically interested in case studies, opinion (op-ed) pieces,features or market studies and trends. To submit proposals forpossible articles , send a one-paragraph or less abstract of theproposed article or to obtain more information on our editorialcalendar, publishing guidelines and deadlines, please send an e-mail to [email protected]

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SATMAGAZINE.COMJanuary 2007

Jan. 8-11, Las Vegas, Nevada, USA2007 International CESConsumer Electronics Association (CEA)Tel +1-(866) 233-7968 / Fax: +1-(301)-694-5124Email: [email protected]: www.cesweb.org/default.asp

Jan. 14-17, Honolulu, Hawaii, USAPTC’07: Beyond TelecomPacific Telecommunications CouncilTel.: +1.808.941.3789 / Fax: +1.808.944.4874Email: [email protected] Web: http://www.ptc07.org

Jan. 24-26, Broward County Convention Center, FortLauderdale, FL, USAInternet Telephony and Expo East 2007Natasha BarberaTel.: 203-852-6800 x : 203-295-0172Email: [email protected]: www.tmcnet.com/voip/conference/

Jan. 30-31, Rio de Janeiro, BrazilIPTV World Forum Latin AmericaVera BensonTel: +44 1173 116 220 / Fax: +44 1173 116 221E-mail: [email protected]: www.iptv-latinamerica.com

Feb. 5-8, Cairo, EgyptCairo ICT Mahmoud MazenTel: +202 4144585 Mobile: +2 010 1102570Fax: +202 4171371E-mail: [email protected]: www.cairoict.com

Feb. 6-9, Moscow, RussiaCSTB-2006: New TV EraAnastasia Kasatkinaor Victoria SenukhinaTel.: +7 (095) 737 74 79Fax: +7 (095) 145 51E-mail: cstb@midexpo.:Web: www.cstb.ru

Feb. 19-22, Washington, D.C., USASatellite 20071-508-743-0512 or +1-800-915-9801Email: [email protected]: www.satellite2007.com

Mar. 5-6, London, UKThe Connected HomeDee AnthonyTel: +44 1173 116 220Fax: +44 1173 116 221 / E-mail: [email protected] Web: www.the-connected-home.co.

Mar. 5-7, London, UKIPTV World ForumIan JohnsonTel: +44 1173 116 223 / Fax: +44 1173 116 221E-mail: [email protected] Web: www.iptv-forum.com

Mar. 6-8, Dubai, UAECABSAT 2007Web: www.cabsat.com

Mar. 7, London, UKTV over NetIngrid AnusicTel: +44 1173 116 220 / Fax: +44 1173 116 221E-mail: [email protected] Web: www.tvover-net.com

Mar. 7-8, Brussels, BelgiumMilSpace 2007: Planning, Funding & Strategies Teri Arri Tel: +44 (0) 20 7827 6162E-mail: [email protected] Web: http://www.smi-online.co.uk/events/overview.asp?is=1&ref=2539

Mar. 12-16, Johannesburg, South AfricaSatCom Africa 2007Brian ShabanguTel: +27 11 463 6001 / Fax: +27 11 463 6903Email: [email protected]: www.satcomafrica.com

Mar. 21-23, Nanyang Technological University,Singapore3rd Asian Space ConferenceTimo Rolf BretschneiderPhone: +65 – 6790 6045Fax: +65 – 6792 6559E-mail: [email protected]: http://pdcc.ntu.edu.sg/ASC2007

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SATMAGAZINE.COMJanuary 2007

INDUSTRY NEWS

Abertis Telecom Agrees toBuy a 32% Stake in Eutelsat

PARIS — Abertis Telecom, a subsidiary of AbertisInfraestructuras SA based in Spain, has agreed to acquirethrough a tender offer a 32 percent minority interest in EutelsatCommunications SA for EUR1.1 billion (US$1.5 billion) in cash,the European press has reported. Reports say Abertis Telecom plans to finance the acquisitionwith a syndicate bridge loan. Abertis is said to have reached anagreement through its subsidiary Abertis Telecom with invest-ment funds Texas Pacific Group, Spectrum, Chiven and GoldmanSachs to make the purchase. The deal is subject to approval byanti-trust authorities. Eutelsat Communications, the holding company of EutelsatS.A., has capacity on 23 satellites that provide coverage overthe entire European continent, as well as the Middle East,Africa, India and significant parts of Asia and the Americas.Eutelsat is one of the world’s three leading satellite operators interms of revenues. As of June 30, 2006 Eutelsat’s satellites were broadcasting over2,100 television channels and 970 radio stations, of which over900 channels were broadcasting via its Hot Bird video neigh-borhood which serves more than 110 million cable and satellitehomes in Europe, the Middle East and North Africa. TheGroup’s satellites also serve a wide range of fixed and mobiletelecommunications services, TV contribution markets, corpo-rate networks, and broadband markets for Internet ServiceProviders and for transport, maritime and in-flight markets. The acquisition is expected to increase Abertis Telecom’sgeographic market presence by expanding international busi-ness operations. Eutelsat confirmed the purchase saying it acknowledges thetransactions announced by Abertis Telecom to acquire 32percent of its share capital, and by the investment bank LehmanBrothers International (Europe) to acquire approximately 2percent of its share capital from certain shareholders at a priceof 15.50 EUR per share.

Alcatel Alenia Wins Euro 661-MContract With Globalstar to BuildTheir Second-Generation LEOSatellite Constellation

PARIS — Alcatel Alenia Space has won a Euro 661 million($880.42 million) contract with Globalstar, Inc. to provide theirsecond-generation satellite constellation. Under the contract, Alcatel Alenia, as prime contractor, willdesign, manufacture and deliver 48 low-earth-orbit (LEO)Globalstar satellites as well as launch support services prior toand during the launches and mission operations support. Jay Monroe, chairman and CEO of Globalstar, Inc. and PascaleSourisse, president and CEO of Alcatel Alenia, formally signedthe contract agreement in New York, N.Y. The definitive contractoccurs a few weeks after the preliminary contract (AuthorizationTo Proceed) signature aimed at defining the program readinessreview and developing program milestones. Sourisse said they are grateful for the confidence demonstratedthrough the contract and are looking forward to a beneficialrelationship over the next several years with Globalstar. With a launch mass of approximately 700 kg and an end-of-lifepower of 1.7 kW, Globalstar satellites will be fitted with 32transponders in C-band, S-band and L-band. Starting in 2009,Globalstar satellites will be launched by 6 to 8 at the same timeand will have a lifetime of 15 years. The agreement will involve Alcatel Alenia Space’s productionsites in France, Italy, Spain and Belgium. Globalstar’s second-generation satellites will be assembled and integrated in AlcatelAlenia facility in Roma (Italy). The payloads will be provided bythe company’s facility in Toulouse (France); the structures aswell as the thermal subsystems being provided by its facility inCannes (France). Alcatel Alenia participated in the design of the complete firstgeneration system and was responsible for the supply ofsatellites payloads, structures, thermal subsystems as well asthe complete satellite integration. The company was alsoresponsible for manufacturing and installing the Globalstarground station antenna terminals.

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INDUSTRY NEWS

AMC-18, WildBlue-1 SatellitesSuccessfully Launched KOUROU, French Guiana — On Dec. 8, Arianespace placedtwo satellites into geostationary transfer orbit for two privateAmerican operators: WildBlue-1 for WildBlue Communicationsand AMC-18 for SES Americom. The two satellites were successfully launched onboard anArianespace Ariane 5 ECA launch vehicle from the FrenchGuiana Spaceport in Kourou at 7:08 p.m. Friday, local time (5:08p.m. Eastern U.S.; 11:08 p.m. CET). The WildBlue-1 satellite was deployed first, released by thelauncher approximately 27 minutes into the flight. This wasfollowed about five minutes later by the separation of AMC-18.Within minutes, AMC-18 sent an initial signal which was

received at LockheedMartin’s Uralla, Australia

facility. (6:08 p.m. Eastern U.S.; 00:08 a.m. CET on December9th).

Another successfullaunch for Ariane 5, theonly commerciallauncher in servicecapable of simultaneouslylaunching two payloads.Over the last 12 months,Arianespace has orbited12 communicationssatellites, plus anexperimental payload.(Arianespace photo)

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INDUSTRY NEWS

Arianespace said the latest Ariane 5 launch was its 16thsuccess in a row. Colorado-based WildBlue Communications started its Internetservice offering by using capacity on Telesat’s Anik F2 satellite,launched by an Ariane 5 in July 2004. With the WildBlue-1satellite, the company will be able to expand its broadbandservice offering to consumers and small businesses located inzones where ground-based services do not exist.

AMC-18 is the 25th SES Global satellite to use an Arianelauncher. SES Global is the leading private satellite operator inthe world. The AMC-18 satellite will be operated by SESAmericom, the largest supplier of satellite services in the UnitedStates, which operates a fleet of 18 satellites, and primarilyserves the Americas. As part of the SES Global family, SESAmericom can provide end-to-end telecommunications solu-tions anywhere in the world.

WildBlue-1 is one of the first satellites to be totally dedicated tobroadband Internet services. Built by Space Systems/Loral inPalo Alto, California, WildBlue-1 weighed 4,735 kg at launch.Offering 35 spotbeams, it will enable operator WildBlue Commu-nications to provide broadband Internet access for the contigu-ous United States - even in the most isolated regions of thecountry. It will be positioned at 111.1° West.

Loral, Canadian Pension FundAcquires Telesat

NEW YORK and MONTREAL — Loral Space & Communica-tions Inc. has partnered with a Canadian pension fund, thePublic Sector Pension Investment Board, to acquire 100 percentof the stocks of Telesat Canada for approximately $2.8 billion(CAD 3.25 billion), plus the assumption of $148 million (CAD172 million) of debt from BCE Inc. Under the agreement, Loral will transfer the fixed satelliteservices and network services assets of Loral Skynet to a newCanadian company, to be known as Telesat, based in Ottawaformed by Loral and PSP Investments. As part of the transaction, Loral will contribute to the newcompany the fixed satellite services and network services assetsof its Loral Skynet subsidiary. This gives the enlarged Telesat aglobal footprint and will make it the fourth-largest satelliteoperator in the world based on the number of satellites in orbit. Loral said the new company will have a combined fleet of eleven

satellites and four additional satellites to be launched over thenext three years. The new company will have combined trailing12 months revenue for the period ended September 30, 2006 ofapproximately $568 million (CAD 658 million) and $4.9 billion(CAD 5.6 billion) of backlog, generating combined trailing 12months Adjusted EBITDA for the period ended September 30,2006 of approximately $295 million (CAD 341 million).

The new company will feature a management team to be drawnfrom both Telesat and Loral Skynet and Daniel Goldberg willcontinue to serve as chief executive officer. Loral and PSPInvestments will hold a 64 percent and 36 percent economicinterest, respectively, in the new company. Consistent withCanadian law, Loral’s total voting equity will be 33.3 percent,with PSP Investments and other Canadian investors having 66.7percent.

In a statement, Loral and Telesat said the combined Telesat-Loral Skynet company will offer its customers expanded satelliteand terrestrial coverage, enhanced back-up advantages and anunparalleled level of customer service. Loral’s satellite fleet provides an array of video and dataservices primarily outside of North America, and complementsTelesat’s North American fleet, which hosts strong video anddata distribution services across North America, as well asCanada’s two premier direct-to-home video services.

Based on the exchange rates used by Loral and PSP Invest-ments in submitting their final proposal, Loral would be contrib-uting $238 million (CAD 271 million) while PSP Investmentswould contribute $523 million (CAD 596 million), for a total ofUS $761 million (CAD 867 million).

Boeing Delta II to Launch Pair ofAlcatel Alenia COSMO-SkyMedSatellites

ST. LOUIS — Alcatel Alenia Space Italia, the prime contractorof the Italian Space Agency, has awarded Boeing Company acontract to launch two commercial satellites in 2007. Two Delta II expendable launch vehicles, both in the 7420-10configuration, will each carry into orbit a COSMO-SkyMedspacecraft from Vandenberg Air Force Base, Calif. “Boeing Launch Services is honored to support these missionsfor Alcatel Alenia Space, the European leader in satellite-basedsolutions,” said Boeing Launch Services director Ken Heinly.

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INDUSTRY NEWS

“The COSMO/SkyMed system is a critical mission for Italianscience, commerce and security, and the Delta II was selectedfor its reliability, timeliness and affordability.” The Delta 7420-10 configuration is approximately126 feet tall and eight feet wide. It features a firststage and four strap-on solid propellant rocketmotors, an interstage and a second stage. Thefirst stage RS-27A main engine is manufacturedby Pratt & Whitney Rocketdyne, Canoga Park,Calif. The solid strap-on motors are provided byAlliant Techsystems, Minneapolis, Minn. Themain engine and the four solid rocket motorsdeliver a total thrust of 485,000 pounds at liftoff. COSMO-SkyMed is an end-to-end Earth observa-tion dual-use (civil and military) system com-posed of four satellites and ground stations. Thesystem will take radar imagery of the Earth usingan X-Band Synthetic Aperture Radar instrumentat the request of institutional (including defense,civil and scientific) and commercial users. Boeing Launch Services will procure the launchvehicles and related support from United LaunchAlliance, the Boeing-Lockheed Martin jointventure that began operation on Dec. 1.

ILS Proton SuccessfullyLaunches Measat-3 Satellite BAIKONUR COSMODROME, Kazakhstan — AProton Breeze M launch vehicle successfullyplaced the Measat-3 satellite into orbit on Dec,12, for the final mission of the year for Interna-tional Launch Services (ILS). The launcher liftedoff at 5:28 a.m. Tuesday local time (6:28 p.m.Monday EST, 23:28 Monday GMT). The mission lasted 9 hours and 12 minutes beforeMeasat -3 was released into a geosynchronoustransfer orbit. This was the fourth Proton launchof the year for ILS. The satellite is a 601HP model built for MeasatSatellite Systems Sdn Bhd by Boeing SatelliteSystems International Inc. On Tuesday, Boeing[NYSE: BA] and Measat announced that Boeinghas acquired the first signal from the satellite

following its successful launch on Dec. 11. The satellite nowwill maneuver itself to a geostationary orbit approximately

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INDUSTRY NEWS

22,300 miles above Earth where aseries of spacecraft deploymentsand tests will verify that it is readyto begin service. From its final orbital position of91.5 degrees East longitude,Measat-3 will serve customers inmore than 100 countries at C-bandand in Malaysia, Indonesia andSouth Asian with DTH-quality Ku-band coverage. This was Measat’sfirst launch on an ILS Protonvehicle, as well as the 10th 601model spacecraft launched onProton. The Proton vehicle, built by ILSpartner Khrunichev State Researchand Production Space Center ofRussia, has carried out 323missions for the Russian govern-ment and commercial customersover more than 40 years.

Boeing DemonstratesInteroperability between TSATand BAE Systems’ AirborneLasercom Risk Reduction Terminal ST. LOUIS — Boeing recently demonstrated communicationcapabilities between its Transformational Satellite Communica-tions (TSAT) laser communications terminal and BAE Systems’Airborne Lasercom Risk Reduction Terminal (ALT), whichincluded a telescope, optical bench assembly, and closed-looppointing and tracking hardware. The demonstration, Boeing said, presented to MILSATCOMSystems Wing officials and members of the TSAT user commu-nity, used several optical waveforms to route TSAT communica-tion signals through the ALT Risk Reduction Terminal at datarates of up to 10 gigabytes per second. On command, the TSATterminal dropped its link to the ALT risk reduction terminal andacquired and established communications with a secondemulated TSAT terminal. Testers then reversed the process toillustrate the system’s agility. The successful demonstrationbrings us one step closer to realizing TSAT’s ability to serve theairborne community on unmanned systems.

“This demonstration was an important event for the TSAT andALT risk reduction programs,” said John Peterson, BoeingTSAT program director. “We showed that terminals made byBoeing along with our partner Ball Aerospace and terminalsbuilt by BAE Systems and Ball could work together to providerisk reduction for the government’s Lasercom mission needs.” TSAT is a highly sophisticated communication satellite sched-uled to begin U.S. military service by 2014. It is designed toprovide conventional communications services and lasercommunication capabilities to all branches of the military,including space and airborne platforms. The data capacityafforded by the Lasercom service will be extraordinary —starting at 2.5 gigabytes per second, nearly the equivalent of150 simultaneous high definition television channels. TSAT willopen up new airborne mission possibilities in the areas ofcommand and control, surveillance and reconnaissance. U.S. Air Force Minotaur 1 RocketLaunches TacSat- 2 Satellite WALLOPS ISLAND, Va. — The NASA Wallops Flight Facilitydemonstrated its quick response capabilities with the success-ful launch last Dec. 16, of a U.S. Air Force Minotaur 1 rocketfrom the east coast of Virginia. The rocket was launched at 7:00 a.m. (EST) carrying the AirForce Research Laboratory’s TacSat-2 satellite and NASA’sGeneSat-1 microsatellite after the liftoff was delayed for almost aweek because of a software problem on TacSat-2. The satellites were launched on the four-stage Minotaur Ilaunch vehicle contracted by the Space and Missile SystemsCenter through Orbital Sciences Corp.’s Launch SystemsGroup. The mission was conducted from the Mid-AtlanticRegional Spaceport’s launch pad on Wallops Island.

A Russian Protonlaunch vehicle lifts offDec. 12 from theBaikonurCosmodrome,carrying the Measat-3satellite for Malaysia.(ILS photo)

Boeing recently demonstratedcommunication capabilitiesbetween its TransformationalSatellite Communications(TSAT) laser communicationsterminal and BAE Systems’Airborne Lasercom RiskReduction Terminal (ALT).TSAT, above, is a highlysophisticated communicationsatellite scheduled to begin U.S. military service by 2014.(Boeing photo)

SM

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EXECUTIVE MOVES

Northrop Grumman Appoints NewVice Presidents in its SpaceTechnology Sector

REDONDO BEACH, Calif. — Northrop Grumman Corp. hasappointed three new vice presidents at the company’s SpaceTechnology sector to lead the Advanced Concepts organiza-tion; the Intelligence, Surveillance and Reconnaissance (ISR)Business Development organization; and the Contracts, Pricingand Programs Business Management organization. Those appointed are: Steve Hixson - vice president of Ad-vanced Concepts; Timothy J. Frei - vice president of ISRBusiness Development; and Brian Chappel - vice president ofContracts, Pricing and Programs Business Management Steve Hixson will lead the newly created Advanced Conceptsorganization, established to identify, define and mature con-cepts for new mission areas and develop responsive and rapidprototype solutions. Advanced Concepts is a strategic re-sponse to the growing need for a quick turnaround capabilityfor lower-cost demonstration programs. Hixson earned a bachelor’s degree in optics from the Universityof Rochester, a master’s degree in electrical engineering from theUniversity of Southern California, and a master’s degree inbusiness administration from the Anderson School of Manage-ment at the University of California, Los Angeles. Timothy J. Frei, as vice president of ISR Business Development,will lead the formulation and execution of Space Technology’sISR market area strategy and head new business pursuits. Inaddition, Frei will oversee the architecture, design and develop-ment of advanced systems through both government andinternally funded studies, and he will determine the appropriatetechnology investment strategy for future ISR needs.

He earned a bachelor’s degree in aerospace engineering and amaster’s degree in mechanical engineering from UCLA. Frei has

completed the UCLA Executive Program at the Anderson Schoolof Business. Brian Chappel likewise brings a broad set of skills to his newrole as vice president of Contracts, Pricing and ProgramsBusiness Management. He has more than 20 years of combinedgovernment and industry experience in a diverse set of busi-ness, strategy, management and technical disciplines. Most recently, Chappel was a key member of the National Polar-orbiting Operational Environmental Satellite System leadershipteam where he has acted in several roles including capturemanager, supply chain manager, systems integration managerand systems engineering manager. Previous leadership posi-tions include director of Business Development for TRWVentures as well as senior-level new business capture, programmanagement and systems engineering roles on major programs. Prior to moving into technical management, Chappel spent fiveyears working in the business management community as thedivision pricing manager for the sector’s Defense SystemsDivision.

SkyTerra Names Alex Good CEOand President, Scott Macleod CFO

RESTON, Va. — SkyTerra Communications, Inc. has namedAlexander H. Good as chief executive officer and president,while Scott G. Macleod was named executive vice president,chief financial officer and treasurer. SkyTerra said Good will continue to serve in his current role asvice chairman and CEO of Mobile Satellite Ventures LP (MSV),the principal operating subsidiary of SkyTerra. Macleod willalso continue to serve in his current role as chief financialofficer of MSV. Good is replacing Jeffrey Leddy, who has served as CEO andpresident of SkyTerra since April 2003 and was concurrentlyadded to the board of directors of SkyTerra. Leddy also willretain his position on the MSV Board. SkyTerra said CraigKaufman who has served as SkyTerra’s controller and treasurersince April 2003, has ceased his employment with the company. Good has a long history in the telecommunications field as anoperating executive and on the Boards of telecom businesses.Good was the executive vice president of Bell Atlantic (nowVerizon) and served as a member of that company’s executivecommittee.

Brian ChappelSteve Hixson Timothy J.Frei

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EXECUTIVE MOVES

Prior to that, Good served as CEO and president of Bell AtlanticInternational, where he led the company’s high growth interna-tional operations. Healso initiated andoversaw thecompany’s invest-ments in other areas,including the satelliteindustry. Prior to hisservice with BellAtlantic, he served asCEO and chairman ofthe board of MtelInternational.

GeneralOsterthalerto LeadAmericomGovernmentServices

WASHINGTON &PRINCETON, N.J.— SES Americom hasappointed retiredBrigadier GeneralRobert Tipton (Tip)Osterthaler aspresident and CEO ofAmericom Govern-ment Services (AGS),a wholly ownedsubsidiary of SESAmericom. Mostrecently Osterthalerserved as senior vicepresident of ScienceApplications Interna-tional Corporation(SAIC) where he wasdeputy generalmanager for theStrategies, Simulationand Training Busi-ness Unit.Edward D. Horowitz,president and CEO of

SES Americom, said Osterthaler will engineer the communica-tions networks that underpin the success of American armed

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EXECUTIVE MOVES

forces operating throughout the world, and to deliver thebandwidth that connects government agencies with vitalinformation resources domestically and beyond. Osterthaler’s record at SAIC spanned 1998 to 2006 with twoimportant assignments, the first being senior vice president andoperation manager within the Strategies Business Unit, followedby the more recent assignment as senior vice president anddeputy general manager of the Strategies, Simulation andTraining Business Unit. In both assignments, Tip oversaw theP&L, managed and grew large international programs andclients, and developed teams and strategic partnerships. Prior to joining SAIC, Tip served in the U.S. Air Force for 27years, retiring as Brigadier General and deputy assistantsecretary of Defense for European and NATO Policy. He holds aBS in Economics from the U.S. Air Force Academy and an MBAfrom Texas A&M University.

Satmex Appoints New ChiefExecutive Officer

MEXICO CITY — Satelites Mexicanos, S.A. de C.V., Mexico’sleading satellite service provider, has appointed Raul CisnerosMatusita to serve as the new CEO of Satmex, effective Novem-ber 30, 2006, to help chart a new direction for the company.Cisneros’s appointment was made on the same day the com-pany officially concluded its U.S. bankruptcy case. Cisneros brings to Satmex over 22 years of experience, specializ-ing in turnaround strategies, asset sales and restructurings.Most recently, he has been an operative partner of AdventInternational Corp., supervising investments in mortgagelending institutions, leasing operations and turnaround ofdistressed assets. He was also deputy director general of Compania Mexicana deAviacion through January of 2006, entrusted with the success-ful sale of Mexico’s leading airline to Grupo Posadas, and forthree years, director of Asset Administration and FinancialPlanning. For five years, he was the CEO of ConsultoriaInternacional, a leading foreign exchange trader and from 1996to 1999, he was appointed by Banco de Mexico to turnaround orsell troubled corporations. Cisneros succeeds Sergio Miguel Angel Autrey Maza, who wasdesignated by Satmex’s Board as interim CEO in February 2005.Autrey will continue serving as a member of reorganizedSatmex’s board of directors.

Raytheon Names Darlington to LeadRaytheon Technical Services Com-pany Engineering and Technology

RESTON, Va. — Fred Darlington hasbeen named vice president of Engineer-ing and Technology for RaytheonCompany’s Raytheon Technical ServicesCompany LLC (RTSC). Darlington will lead the planning andexecution of RTSC’s Engineering andTechnology organization. He will beresponsible for strengthening RTSCengineering capability, defining and

supporting RTSC’s current and future technology needs andworking collaboratively across the Raytheon enterprise toleverage the company’s diverse technology and engineeringtalent. Darlington will report to Raytheon vice president and RTSCpresident Bryan J. Even and will be located at RTSC headquar-ters in Reston, Va. He will also report to Taylor W. Lawrence,Raytheon vice president of Engineering, Technology andMission Assurance, as a member of the enterprise-wideRaytheon Engineering and Technology Council. With more than 25 years of experience with Raytheon,Darlington joins RTSC from Raytheon’s Network CentricSystems (NCS). He previously served as director of the satellitecommunications product line in Marlboro, Mass., and directorof engineering for the NCS northeast region, including Canada. RTSC, a subsidiary of Raytheon Company, provides technologysolutions for defense, federal and commercial customersworldwide. It specializes in Mission Support, counter-prolifera-tion and counter-terrorism, base and range operations andcustomized engineering and manufacturing.

Intelsat General Corp. Appoints Thomas Foust as its New VP of Sales

BETHESDA, Md. — Intelsat General Corp. has named ThomasL. Foust as its new vice president of sales. Foust will beresponsible for Intelsat General’s sales to government organiza-tions, including the Department of Defense, NATO, and civilianand intelligence agencies. He will report directly to Kay Sears,senior vice president of sales, marketing, and business develop-ment.

Fred Darlington

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Sears said Foust’s military and commercial background, coupledwith his business management skills, complement the companymission of providing government customers with innovativesolutions to meet their satellite and networking challenges.

Foust has spent more than three decades in the telecommunica-tions industry – both in the military and the private sector. Hisservice in the U. S. Air Force included positions as operationssupervisor, program manager, and quality control supervisor atRhein-Main Air Base in Germany. He also served as contractsmanager for the Defense Information Technology ContractingOrganization at Scott Air Force Base in Illinois.

Foust has an Associate’s Degree in Electronic Systems Tech-nology and a Bachelor of Science in Management InformationSystems. He currently is pursuing a Master of Arts Degree atLiberty University.

American Express Senior ExecutiveJoan Amble Joins XM Board ofDirectors

WASHINGTON — Joan Lordi Amble, the executive vicepresident and corporate comptroller for American ExpressCompany, has joined the board of directors of XM SatelliteRadio. Gary Parsons, chairman of XM, said Amble’s experience atAmerican Express, GE, Ernst & Young, and the FinancialAccounting Standards Board (FASB) and considerable financialexpertise will be useful to the board. As a senior executive at American Express, Amble is responsiblefor all controllership finance functions across the four majordivisions of the company. Her accountabilities include over-

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sight of all aspects of the company’s global reporting, control,technical advisory and financial shared service center func-tions. Prior to joining American Express, Amble served as chiefoperating officer and chief financial officer of GE CapitalMarkets, a service business within GE Capital Services, Inc.,overseeing securitizations, debt placements and syndication. Amble, a CPA, obtained her under-graduate degree in Accounting fromPennsylvania State University, andattended graduate school at UniversityCalifornia, Los Angeles (UCLA).

Former TSA ChiefDavid Stone JoinsSkyPort Int’l Board HOUSTON — David Stone, formerAssistant Secretary of HomelandSecurity for the Transportation SecurityAdministration (TSA), has been namedto the board of directors of SkyPortInternational Inc., a providers ofsatellite and terrestrial communicationsservices. Stone, a retired Rear Admiral in the U.S.Navy, will assist SkyPort in playing aneven larger role in providing disastercommunications capability to first-responders and to the military. Admiral Stone said he wants to help theUnited States at the federal, state andlocal levels, improve its disasterresponse communications capabilities.“SkyPort’s performance in support ofKatrina related operations were excel-lent. I am eager to assist my fellowboard members in building on thatsuccess so that our nation has the kindof communications capability we needto respond quickly and effectivelyduring future disaster responseevents.” Stone, a 1974 graduate of the U.S. Naval

Academy, retired from the Navy in 2002 and shortly thereafterbecame the first Federal Security Director at Los AngelesInternational Airport for the Department of Homeland Security.President Bush nominated him as assistant secretary for theDepartment of Homeland Security in charge of the entire TSA in2004. He held the top leadership position at TSA for 18 monthsbefore leaving to form and serve as president of The AlacrityHomeland Group, a Washington, D.C., based firm. SM

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US Navy Acquires AutoExplorerTerminals

In the last quarter of2006, Globecommannounced that it hadsigned a deal with the

Naval Air Warfare Center Aircraft Division for 50 of thecompany’s AutoExplorer satellite terminals, to be delivered bymid-2007. The Navy award added to a string of military,government and commercial awards for the self-aligningportable satellite terminals, which are available in .77, 1.0 and1.2-meter configurations.

AutoExplorer terminals include integrated electronics (Lthrough Ku-band and all intermediate frequencies) and are IP-enabled to accept optional routers and satellite IP-optimizedsolutions. Suited for tactical support of military and peacekeep-ing forces as well as enterprise network and Internet access, theterminals provide cost-effective, two-way communications atrates of up to 2 Mbps. The antenna can be set up in less than15 minutes and the auto-align system automatically locates,peaks-up and drives to theoretical cross-polarization positionwith base tilt correction. More information on AutoExplorer isavailable at www.globecommsystems.com.

Alcatel Demos Europe’s First LiveMobile TV in S-band

PARIS — Alcatel has announced the successful demonstra-tion of Europe’s first broadcast of live TV channels on mobilehandsets in S-band.Alcatel said the demonstration took place in Alcatel’s UKpremises and it used the new DVB-SH standard (Satelliteservices for Handhelds), which is currently being drafted by theDVB Project. Alcatel was assisted by UK broadcasters Sky, ITVand BBC in the demonstration.

Alcatel said representatives from European mobile operators,TV broadcasters, industry analyst firms and regulatory bodiesattending the demonstration were able to enjoy high qualityimages displayed on SAGEM myMobileTV handsets. Theseterminals used the S-band telecom frequency between 2.17GHzand 2.20GHz, which is adjacent to the 3G/UMTS band. 30MHzof spectrum is currently available all across Europe and in othermajor regions in the world.

DVB-SH is a new technology targeting the S-band. DVB-SH is a

related standard to DVB-H. With DVB-SH technology, MobileTV signals can be broadcast from satellites as well as fromterrestrial transmitters directly to handhelds. DVB-SHhandhelds can be designed in such a way that they becomecompatible with DVB-H so that both standards can be receivedin one end-user terminal.

Alcatel also demonstrated two possible key technical featuresusing the DVB-SH standard. Reception Antenna Diversity, afeature using two antennas inside the same mobile device,enables improvements in the signal quality under difficultconditions. Another feature called Time Interleaving overcomesfading impairment in mobility conditions. The significant qualityenhancement was demonstrated by implementing these DVB-SH features according to Alcatel.

Telenor Satellite Extends High-Speedon Demand Maritime Service Globally

OSLO, Norway & ROCKVILLE, Md. — Telenor SatelliteServices, a subsidiary of Telenor of Norway, has announcedthat it now offers high-speed 128 kbps maritime satellitecommunications service globally. Telenor said it has added Pacific Ocean coverage to its existingFleet F77 128 kbps service in the Atlantic and Indian Oceanregions. The service is terminated at the company’s PacificOcean teleport in Santa Paula, California. The Fleet F77 128 kbps service operates over the Inmarsatsatellite system and uses Fleet F77 hardware while virtuallydoubling the data speed normally available associated with theservice. The Fleet service and hardware, commercially availablesince 2002, is currently used by many large vessels such asmerchant ships, oil and energy transport ships, cruise liners andferries, and super yachts. Telenor said the enhanced global service uses a dedicated 128kbps channel and arms ship owners and ship captains with apowerful communications solution designed to meet the variedcommunications and data requirements of the maritime industry.The extended service provides users at sea with a single,integrated satellite terminal that delivers mobile 128 kbps ISDNdata and mobile packet data service, as well as high-qualitytelephony and fax services. The service also meets requirementsof the Global Maritime Distress and Safety System (GMDSS)

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enabling pre-emption and prioritization of voice calls over lowpriority voice and data traffic, according to the company. Spacenet Launches New StarBandNova Pro Service

MCLEAN, Va. — Spacenet has unveiled its new StarBandNova Pro satellite broadband Internet service for residentialcustomers. Spacenet said the Nova Pro service, along with the NovaUltimate service that was launched in September, are part ofStarBand’s completely revamped product line aimed at smalloffice and home users looking for a more reliable, professional-grade broadband satellite Internet connection at an affordableprice. The Nova services utilize the advanced Gilat SkyEdge VSATplatform for improved speed and user experience. The NovaPro service offers speeds of up to 512 kbps download and 128kbps upload, while the Nova Ultimate provides speeds of upto 1 Mbps download and 256 kbps upload. Spacenet vice president of Channel and Consumer SalesSteven D’Argenio said the Nova Ultimate service has gener-ated a lot of demand, and we know that there is already a highdemand for the new Nova Pro service. “The Nova services offer an exceptional value by deliveringprofessional quality satellite broadband performance in a veryaffordable package, and we are excited to satisfy our custom-ers’ high-speed Internet requirements with our new offerings,”he said.

WorldSpace Satellite LaunchesIndia’s First 24-Hour GujaratiChannel

SILVER SPRING, Md. — WorldSpace Satellite Radio hasintroduced ‘Radio Umang’, the first ever 24-hour Gujarati radiochannel for subscribers in South Asia including the company’sprimary market of India. ‘Radio Umang’ (channel 111) presents a unique platform,ranging from the pulsating tunes of the Garba and DandiaRaas to the melodious Sugam Sangeet and Ghazals, thatshowcases the rich diversity of musical traditions of Gujarat.There are over 50 million people in India alone who speakGujarati.

William Sabatini, vice president, global programming forWorldSpace, said this most recent addition to the lineupdemonstrates the company’s commitment to differentiate itselffrom the offerings of traditional radio in India and around theworld. ‘Radio Umang’ joins a growing portfolio of Indian regionallanguage channels available on the WorldSpace. WorldSpacecurrently offers eight other regional channels with dedicatedprogramming in Tamil (KL Radio), Malayalam (RM Radio),Telugu (Spandana), Kannada (Sparsha), Bengali (Tara), Punjabi(Tunak Punjabi) Urdu (Falak) and Marathi (Surabhi). These WorldSpace channels also reach Indian listeners livingwithin the AsiaStar satellite coverage area, including in theMiddle East where there is a large Indian population.

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government, military, broadcasting, and emergency/disasterrelief markets.

IPSTAR Launches the “iMOVE”Mobile Broad-band Solution

NONTHABURI,Thailand ̄ Shin SatellitePublic Company, theoperator of the IPSTARsatellite system, haspartnered with RaySatAntenna System LLC, aprovider ofsatellite antennatechnology for 2-waymobile applications inthe market, to offermobile broadbandsolution for movingvehicles using theThaicom-4 (IPSTAR)satellite. The IPSTAR “iMOVE”product consists ofRaySat’s advanced lowprofile (5.9") arrayantenna that can befitted to any vehicle(such as in SUVs, vans,buses, trains, andvessels). The antenna isable to track theThaicom-4 satellite at alltimes while the vehicle ismoving providing truemobile broadbandservices. ShinSat said IPSTARiMOVE offers the fastestmobile satellite band-width solution in themarket today. It addedthe service is ideal forhigh performance andcost-effective mobilevideo, voice, and dataapplications and suitablefor the enterprise,

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Both companies have successfully tested the IPSTAR iMOVEin Thailand and said they will jointly market the productthroughout the 14 countries in the Asia-Pacific Region whereThaicom-4 provides services. Patompob Suwansiri, head of marketing at ShinSat, said with thepowerful combination of Raysat’s advanced mobile antennaproduct and the high performance and unique characteristics ofthe IPSTAR satellite, they are able to offer our customers thebest performing broadband satellite solution for movingvehicles in the market today.

Promax LaunchesNew Portable Analyzer for Digital Broadcast,Cable and Satellite

BARCELONA, Spain —Promax Electronicsrecently introduced a newportable analyzer, theProdig-5B US TV Explorer,that for the first time canmeasure terrestrial, cableand satellite DTV signalsin America. This new unit,Promax said, allows thecompany to bring aunique solution to the

market that combines existing spectrum analyzer capabilitiestogether with advanced DTV measurements and signal demodu-lation. Designed to meet the needs of professional installers, broad-casters, cable networks and satellite operators, the US TVExplorer is compatible with 8VSB, QAM and QPSK (DVB-S andDSS) as well as analog NTSC signals. Moreover, it contains anMPEG-2 and AC3 demodulator that makes it possible to displaytransport stream information and watch digital channels. The US TV Explorer provides quick and reliable testing capabili-ties for installation, troubleshooting and maintenance of digitaland analog TV signals. It allows users to perform detailedspectrum analysis, display all measurements in one screen andwatch TV picture. In addition, the AUTO-ID feature searches forchannels, detects digital transmission parameters automaticallyand reads network identification data from the MPEG-2 trans-port stream.

Arabsat and Nilesat Sign PartnershipAgreement to Establish “ArabsatMedia Gateway”

RIYADH — The Arab Satellite Communications Organization(Arabsat) and the Egyptian Satellite Company (Nilesat) havesigned a strategic partnership agreement enabling Arabsat toestablish a new “Arabsat Media Gateway (AMG)” from Cairolocated in Nilesat’s 6th of October City free zone area premises. Engineer Khalid Ahmed Balkheyour, Arabsat’s president andCEO, and Amin Basyouni, Nilesat’s chairman, have expressedtheir satisfaction on the agreement that will benefit millions ofArab viewers, considering it as a critical first step towards afurther constructive and mutually beneficial cooperation. Arabsat said the new Media Gateway will enable the companyto provide the Egypt-based Broadcasters with direct access to acomprehensive range of video services such as uplink andturnaround onto Arabsat’s 26°East 130 million viewers neigh-borhood, full digital platform management, as well as extensivecontent processing such as playout, store and forward,transcoding, etc. As part of its strategic move towards getting closer to itscustomers’ locations, this 9th AMG from Arabsat will comple-ment the ones already serving the MENA region from Amman-Jordan, Beirut-Lebanon, Bonn-Germany, Dubai-UAE, Madrid-Spain, Riyadh-KSA, Sharjah-UAE and Tunis-Tunisia, thecompany said.

AEgis Technologies, DigitalGlobeUnveil Advanced GeospatialModeling and Simulation Solutions

HUNTSVILLE, Ala. and LONGMONT, Colo. — AEgisTechnologies Group, provider of expert modeling and simulationservices and products, and DigitalGlobe, provider of highresolution commercial satellite imagery, will demonstrate a newcollaborative 3-D mapping application at the 2006 Interservice/Industry Training, Simulation and Education Conference (I/ITSEC) in Orlando, Fla. The two companies said the combination of current 60-cmresolution satellite imagery with a highly detailed 3D modelingand terrain database dramatically merges geospatial intelligencewith virtual simulation. The I/TSEC demo of this new capabilitywill showcase the Arak nuclear-associated facility in Iran.

SM

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By Peter I. Galace

The Asian Telecom Market :A Lot on Their Plate

It was a huge stepfor South Korea but onegigantic leap for Asia’ssatellite service provid-ers.

South Korea’sintroduction of theworld’s first S-DMB(Satellite-DigitalMultimedia Broadcast-ing) TV service formobile phones in May2005 was a historicmilestone highlightingthe satellite industry’s key role indelivering mobile video and highspeed IP broadband—the twindrivers of current telecom growth.

S-DMB provides cost-effectivemultimedia services to mobile usersby interworking satellite systemswith 3G and 4G terrestrial networks.

The US cellular industry in previous years trailedits European and Asian counterparts in therace to introduce technologies such as mobile

digital TV, an application intended to boost Average Reve-tnue Per User (ARPU) he face of a nearly saturated cellular market. That gap has been narrowed recently, however, (mobile TV has launched in the USA) with new applications taking root and driven by pent up demand from US consu-mers for a richer mobile experience. To gauge trends inthe telecom sector, it might be instructive to look atdevelopments in Asia and see what lessons can belearned from its experience.

It is a hybrid mobile satellite broadcastsystem where broadcast and multicastservices are delivered by a satellitenetwork.

Terrestrial repeaters that extendsatellite coverage in urban areascomplement this network. Among thehybrid mobile satellite broadcast

systems in operation is the XM-radiosystem in the USA that broadcasts radioprogramming to vehicular terminals.

For Asia, the launch affirmed itsstatus as a first mover in hot satellitedelivered technologies such as mobilevideo and IPTV (Internet Protocol TV).Earlier, in October 2004, Japan’s MobileBroadcasting Corporation (MBCo)introduced the world’s first commercialS-DMB service for motor vehicles withthree data, seven video and 30 audiochannels.

Both TU Media, the unit of SKTelecom that launched the S-DMBservice, and MBCo use Japan’s MBSat(called “Hanbyol” in Korean) to delivertheir mobile offerings. TU Media is co-owned by SK Telecom and Toshiba.

Leveraging satellite powerThe advent of mobile TV on digital

handheld devices, smartphones or carterminals adds an interesting facet—anda potential huge revenue source—toAsia’s satellite services industry stillheavily dependent on DTH services formuch of its revenues.

In South Korea, TU Media’s S-DMB service signed up some 370,000subscribers by the end of 2005, com-pared to its target of 420,000. Thesesubscribers, however, paid about $13 permonth for seven video and 20 audiochannels and used mobile phonescosting some $750 apiece. TU Media, aconsortium of 200 companies, expects tosign up six million subscribers by 2010.

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In contrast, SkyLife, South Korea’ssole DTH provider, had over 1.8 millionsubscribers in the same year who paidless than $10 monthly for 160channels.

TU Media’s video-on-the-go service currently offers news,sports, soap operas, movies andgames. And to keep subscribershappy and place a lock onrevenues, the company offers a10% monthly discount for a one-year mandatory contract; 15% fortwo-years and 20% for threeyears. S-DMB revenues areexpected to hit $813 million by2010, according to TU Media.

While S-DMB’s revenuepotential is clear, the technologystill has to contend with issuesrelating to content and quality ofservice. Surveys found initialsubscribers concerned about thelimited content and overallservice quality. Only 24% saidthey were satisfied with theservice while 45% voiceddissatisfaction.

The pricey handsets(Samsung Electronics’ SCH-B100and SK Teletech’s IBM-1000)seemed less of a concern tosubscribers than the quality ofservice, however.

But that was then and TUMedia has since gone forwardwith installing the 8,000 repeatersor low power gap fillers forenhanced indoor coverage inurban areas, guaranteeing almostcomplete terrestrial blanketing ofa country with a land area of lessthan 100,000 km2 and betterleveraging the power of MBSat.

This satellite’s high EIRP

downlink signal enables smartphones,other digital handheld devices and carterminals to receive the downlink signal.MBSat carries high power S- band

transmitters and a 12-meter S-band highgain antenna to deliver high EIRP.

MBSAT currently delivers digital

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multimedia services such as MPEG-4video and data to mobile users in SouthKorea and Japan.

IPSTAR goes mobileShin Satellite’s iPSTAR-1Broad-

band Internet Satellite, the world’s firstInternet satellite, this December an-nounced it was joining the mobile raceby offering mobile broadband servicesfor moving vehicles, but one differentfrom that provided Japanese customersby MBSat.

ShinSat has a name for its product:iMOVE. ShinSat claims iMOVE allowsusers to track iPSTAR while theirvehicles are moving. This, said ShinSat,should enable users to do videoconferencing while on the road andallow the production of live, on-the-move satellite news broadcasts insteadof having TV crews stop and deploytheir antennas.

The system’s low-profile arrayantenna permits automatic connectionand has a claimed uplink speed of up to1.5 Mbps. ShinSat noted its system ischeaper based as it is on monthlysubscription fees compared to thestandard practice of blocking andleasing airtime for a satellite feed.

ShinSat said iMOVE” is available inThailand, China, Vietnam Australia andNew Zealand and should be available inthe rest of Asia-Pacific by 2007.

iPSTAR or Thaicom 4, the largestcommercial satellite in space, waslaunched in August 2005. It carries 94beams and has a capacity of 45 gigabitsper second covering all of Asia Pacific. Itis designed for digital high-speedInternet access and can send and data,video and audio simultaneously.

It provides a broad range of

broadband applications and high-speedInternet access such as E-government,corporate Intranet, Virtual PrivateNetworks (VPNs) and VoIP.

Australia is becoming an importantmarket for iPSTAR’s broadband services.ShinSat is expected to sign up 2,000 newsubscribers a month by the end of 2006,double the rate a few months ago.IPSTAR’s market in Australia and NewZealand consists of some one millionhouseholds and small businesses.

ShinSat’s Australian partner saidiPSTAR has consistently provided itscustomers with reliability, security andspeed. It is also a ubiquitous andaffordable broadband solution thatmeets the needs of remote customers inAustralia and New Zealand.

Excaping market saturationPhilippine Long Distance Tele-

phone Company (PLDT), the Philippines’largest telco and Asia’s eighth largestmobile provider, remains keen on bothmobile TV an IPTV as a means ofbreaking into the lucrative broadcastindustry and improving ARPU for itsindustry leading cellular service.

Its intent to acquire an obscurecompany called GV Broadcasting, whichanalysts say seems increasinglyprobable, will give it immediate entryinto both business. GV Broadcasting is alicensed DTH satellite televisionprovider that intends to be the country’ssecond DTH provider after PhilippineMultimedia Satellite Systems, providerof the Dream DTH service.

It has also applied for a certificateof public convenience to install, operateand maintain a Philippine-wide digitalmobile TV system.

In a disclosure statement, PLDT said

it remains interested in developing itscontent strategy, and is looking atservices such as DTH, IPTV and mobileTV. PLDT expects its broadband andbusiness process outsourcing opera-tions to take over from cellular as itsmain revenue drivers in the years ahead.

Mobile penetration in the Philip-pines is nearing saturation and wasestimated at 43% in late June. PLDTthrough mobile subsidiary SmartCommunications, Inc. owns some 60% ofthe market. Revenues from its mobilebusiness will continue to grow but atsingle-digit levels, hence PLDT’s focuson DTH, IPTV and mobile digital TV.

Europe and the USA fallbehind

A step behind Asia in the deploy-ment of satellite delivered digitalmultimedia services is Europe where awide range of trails based on S-DMBand DVB-H standards were recentlycarried out.

S-DMB is scheduled to make itsEuropean debut in 2009 followingextensive trials. An initial commercialrollout is set for 2007, with full-scaledeployment in 2009.

As in Korea, European 3G userswill receive streaming television andvideo on their handsets at an affordablesubscription fee in the range of 10 euros.The service will be available anywhere inEurope.

S-DMB’s European launch followsthe MAESTRO (Mobile Applications &sErvices based on Satellite & TerrestrialinteRwOrking) trials that sought to use

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the technology to implement a broad-cast/multicast layer complementary toexisting 3G mobile networks.

MAESTRO’s satellite componentwas designed to reuse current 3Gtechnology, minimize the development ofnew products and technologies andincrease the content delivery capacity ofnetworks.

Results from pilots of broadcastDVB-H mobile TV services amongconsumers in Finland, the UK, Franceand Spain revealed clear consumerdemand for these services and pointedto future business models for commer-cial mobile TV services. The DVB-Hpilots involved broadcasts of live digitalTV content over DVB-H networks to theNokia 7710 smartphone.

As a result, Alcatel and Eutelsat areexpected to launch a geostationary DVB-SH satellite covering Europe in 2008.Alcatel is to deliver DVB-SH terrestrialrepeaters beginning 2007. DVB-SH(satellite services to handheld devices)is a hybrid architecture using the S-bandthat its proponents claim is morepowerful than S-DMB.

As shown in South Korea, Euro-pean consumers want a wide range ofchannels and content suitable forwatching on mobile devices. And as inSouth Korea, the most popular types ofcontent were news, sports, music andsoaps. Europeans, however, wanted topay less than the South Koreans did fortheir mobile TV services.

With actual market experience inhand, TU Media intends increase itsvideo channels to 14 and offer morecompelling content such as more of thesoaps Korea is popular for.

In the USA, 2007 should see thefirst national rollouts of mobile TVservices by Modeo (a subsidiary of

Crown Castle Media) and by partnersSES Americom and Aloha Partners. SESAmericom provides the infrastructurethat supports Aloha Partners’ mobile TVnetwork called Hiwire.

Both Modeo and Aloha Partnersare deploying DVB-H. Modeo, however,will first trial it’s mobile TV offering to aselect group of users in New York City inearly 2007.

On the other hand, VerizonWireless has announced its adoption ofQualcomm Inc.’s MediaFlo technologyfor its mobile TV service that willbroadcast data, audio and videostreams, and information such as stockmarket quotes and weather reports.

The different technologies used todeliver mobile TV mirrors the joustingamong technologies seen in Asia andEurope with the winner being decided bysubscriber revenues. Both services weretrailed at selected locations in 2006.

The case for mobile TV in the USArests on the huge market numbers: thereare currently about 200 million cellphonesubscribers and a penetration rate of65% nationwide (higher than cable TV,home Internet access and computers).About seven billion text messages aresent every month in the USA.

S-DMB vs. DVB-HDespite its first mover advantage,

S-DMB will have its hands full againstDVB-H, which is being pushed by aconsortium led by Nokia. Research firmInforma Telecoms & Media. projectsDVB-H to dominate as the internationalvideo standard with 121 million users by2011, or 57% of the world market.

DVB-H is also receiving traction inAsia because of DAPA, the DVB-H AsiaPacific Alliance. DAPA and Nokia this

October conducted a DVB-H technologyworkshop in Singapore, the first of itskind in Asia Pacific.

But S-DMB and DVB-H are justtwo satellite delivered mobile TVtechnologies on the plate of Asia’ssatellite service operators. There’s alsoJapan’s ISDB-T and Qualcomm’sMediaFLO. These, however, will alsorequire deploying additional networkinfrastructure, developing new hand-sets, adding new spectrum—and forkingover a lot of money.

Asia’s satellite operators also haveto consider IPTV, high definition TV(HDTV), digital radio, two-way Internetand the “headend in the sky” model thatinvolves bundling content and technol-ogy into a turnkey package as amongthe applications that should generatehuge demand for satellite capacity.

A plate of pleasant choicesWhich brings Asia’s satellite

operators to a pleasant problem: aplethora of choices in which to sink theirmoney.

Choosing the next moneymaker willbe no easy task. The safest bet,however, seems to be IP or deliveringhigh speed IP broadband from point tomultipoint at the least possible costwhile forging alliances with terrestrialnetwork operators.

Satellite operator Loral Skynet isconvinced video and IP broadband willdrive growth in Asia’s satellite servicecompanies. The company believes Chinaand India will be the lead players invideo distribution and DTH applica-tions.

Video will be a key market driver,especially when China legalizes DTH. Asfor IP broadband, Loral Skynet said that

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out of the more than 50 announcementsfrom satellite service providers of newbusiness in Asia in 2005, over 75% ofthese were IP broadband related.Regulatory challenges, however, wereholding back growth especially in thehuge markets of China and India.

Recovery at lastLoral’s observations also confirm a

reassuring reality: the satellite industrycontinues on a growth path begun in2005 after years of weak revenues andflat growth.

The commercial launch industry iscontinuing a recovery begun in 2005when global revenues rose 7% afteryears of decline. Arianespace, Interna-tional Launch Services and Sea Launch,the world’s major launch providers, arebullish on the industry’s short-termgrowth with launches scheduled toreplace ageing satellites operating overAsia.

The Satellite Industry Association(SIA) has said consumer focusedsatellite services drove growth in 2003and 2004. SIA noted that companies fromevery major region and across eachsector (operators, manufacturers,teleports, value-added resellers, carriers)reported improved business in 2005.

It said satellite services wereleading the industry’s recovery, ac-counting for 63% of industry revenuestotaling $97 billion in 2004. DTH ac-counted for over 80% of satellite servicerevenues.

China’s intent to begin DTHsatellite broadcasting in time for the 2008Beijing Olympics should furtherstrengthen the satellite industry’srecovery. The recent launch of China’sfirst DTH satellite was to have been thekey that unlocks China’s vast DTH

market.

SinoSat-2, produced in China, wasto have provided broadcast TV, digitalTV, live broadcast TV and digitalbroadband multimedia systems to theChinese mainland, Hong Kong, Macaoand Taiwan, according to Sino SatelliteCommunications (SinoSat), a state-owned satellite operator.

Although launched successfully inOctober 2006, the satellite later failed inNovember because one of its two solarpanels did not deploy. A replacementsatellite is three years away althoughSinoSat-3, another DTH satellite, is tolaunch as scheduled in May 2007.

Chinese media earlier speculatedthe launch of SinoSat-2 might trigger theamendment of Decree 129 that prohibitsindividuals from setting up satellitedishes that receive foreign programs.Telecoms regulator the State Administra-tion of Radio, Film and Television is saidto be considering amending the regula-tion.

Industry analysts predict that some100 million households are expected tobecome DTH users between 2006 and2010. The launch of ChinaSat-9 in late2007 is also intended to exploit thecoming boom in DTH. ChinaSat -9 iscapable of covering most of China,making it possible for 98% of residentsto receive DTH programming.

Asia: world DTH leaderDTH’s propagation in India and

China will enable Asia/Pacific to remainthe world’s fastest growing TV distribu-tion market. Analysts estimate theregion’s CAGR at 13%, with revenuesrising from US$16 billion in 2004 toUS$30 billion in 2009.

Asia’s regulatory environment is

also improving. India’s more liberalizedtelecoms regulations, for example, arebelieved to have contributed to its DTHrush.

Marketing a free-to-air (FTA)service on a DTH platform is the goal ofnewly organized Asia Broadcast Satellite(ABS) based in Hong Kong.

ABS in September acquiredLockheed Martin Space CommunicationsVentures (LMSCV) and Lockheed MartinIntersputnik (LMI) from LockheedMartin Global Telecommunications.LMSCV owns and operates the LMI-1satellite (now called ABS-1).

ABS-1 covers Asia, the MiddleEast, Eastern Europe and Africa with 28C-band and 16 Ku-band transpondersproviding DTH and CATV services.ABS’ goal, however, is to market an FTAservice via satellite to countries in Asiaand the Middle East.

ABS sees DTH as a profitablealternative to existing terrestrial andcable TV in many developing marketswhere there are limited cable infrastruc-ture and penetration. Offering FTA willallow ABS to quickly capture a largeaudience.

IPTV to the rescueInternet Protocol Television (IPTV)

via satellite, while in its infancy, offerssteady revenue possibilities for satelliteoperators.

IPTV, which is TV over broadbandconnections such as DSL, FTTH andEthernet, is broadband’s hot technology.

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COVER STORY

It enables broadband Internet users toaccess TV broadcasts (both live streamsand video on demand) via computers oron TVs with digital set top boxes. Bydistributing TV content over theInternet, IPTV permits a morecustomized and interactive userexperience.

IPTV carries the promiseof high market growth and, forAsian telecom operators,minimal investment in new IPnetworks. The value of Asia’sIPTV industry was estimated atUS$300 million in 2005. China’sIPTV market alone was valuedat US$36 million last year andJapan is world leader in FTTHinstallations.

Asia is the heartland forIPTV. Research firm IDCpredicts 30 million people willbe using IPTV worldwide by2009, two-thirds of them in Asia.

This welcome mat forIPTV in Asia offers satelliteservice providers a window toexploit as analysts agree thatIPTV will become mainstream.The question is not if but when.

South Korea entered theIPTV arena when KT Corpora-tion, its largest fixed-line andbroadband operator, launched atrial IPTV service in November2006.

KT said the trial serviceincludes a broad range ofapplications including broad-cast, DVD, video conferencing,video-on-demand and multime-dia messaging. Also availableare multiple pictures-in-picture,remote programming of digitalvideo recorders and digitalphotos.

The trial service provides 24 TVchannels, 1,200 on-demand videos and27 interactive services ranging fromeducation to finance. An electronicprogram guide and user-created content

available.

It was rolled out to 260 householdsin Seoul and Yangpyeong County,southeast of Seoul, where broadcasting

are

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COVER STORY

signals are often weak or distorted.

The government hasselected two consortia forthe IPTV trials. The twoconsortia are led by KTand Daum Communica-tions and include contentproviders, broadcasters,cable and satellite opera-tors and electronicsmakers

A niche service?Satellite delivered

IPTV will become animportant revenue streambut is expected to evolveinto a niche service saidNorthern Sky Research(NSR) in an IPTV marketstudy. NSR believes theIPTV via satellite marketshould account for a smallpercentage of the marketpotential terrestrial-basedplatforms are likely togenerate.

Satellite-based IPTVrevenues from 2005 to 2010are projected at $1.6 billioncompared to over $7 billionfor 2010 alone for terres-trial-based services.Despite this, NSR saidIPTV does provide aunique growth opportu-nity for the satelliteindustry especially inselect regions.

NSR said given theproven broadcast econom-ics of satellites in deliver-ing content cost-effec-tively to large geographicfootprints, particularly inunderserved areas, growthof IPTV via satellite

services should increase at a steadyrate.

Talking about IPTV as a whole,research firm Gartner, Inc estimates thenumber of households worldwide

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COVER STORY

Peter I. Galace is editorial director of Satnews Publishers.He has written extensively on the telecommunicationsdevelopments in Asia for numerous publications. Currentlyhe is associate editor of Satnews Daily and Weeklyeditions, and art and production editor of the InternationalSatellite Directory and the monthly e-zine, Satmagazine. Hecan be reached at [email protected].

SM

subscribing to IPTV services offered bytelecom carriers at some 49 million in2010. Subscriber numbers are expectedto rise from 6.4 million in 2006 to 13.3million in 2007.

Global IPTV revenue should growfrom $872 million in 2006 to $13.2 billionby 2010. Although IPTV presentstelephone companies with the opportu-nity to sell TV services, Gartner saidIPTV will not be a panacea to replacevanishing voice revenue for carriers butcan help retain customers of theirexisting voice and broadband services.

IPTV, however, is a godsend fortelcos (who lord it over Asian telecoms)that can dominate the technology end-to-end with their network infrastructure.End-to-end control allows telcos toguarantee enough bandwidth for theirsignal at all times, which is necessary forthe high quality of service demanded byIPTV.

IPTV in the USAIPTV presents telcos with the

unique opportunity to enter the TVarena and provide triple play services.Telcos are, therefore, investing billionsinto new fiber rollouts and backendinfrastructure. AT&T, for example,signed a US$400 million deal forMicrosoft’s IPTV Edition software and aUS$1.7 billion deal with Alcatel.

AT&T also spent $5 billion to buildthe first IPTV network in the UnitedStates while Verizon CommunicationsInc. is spending $3 billion to deliver on-demand movies to subscribers via IPTV.Telcos, however, face stiff competitionfrom cable and satellite TV companiesthat have an edge in numbers andexperience, and resistance from custom-ers who haven’t the slightest idea aboutwhy they should choose IPTV instead ofcable or DTH.

Some 85% of US households areserved by either cable or DTH. This highpenetration rate means IPTV’s onlygrowth path is by taking subscribersaway from cable and DTH. And thatmeans competing on price, no easy taskfor any new technology burdened byhigh infrastructure costs, but which istaking place in Europe.

The USA and Canada, however, areexpected to have one of the highestIPTV growth rates over the next fiveyears. Gartner Consulting forecastsIPTV subscribers doubling almost everyyear until 2010. Gartner noted the most-successful ongoing IPTV services areoffered either as part of an overallhousehold bundle of services.

Analysts feel IPTV could shake upthe cable industry the same way thatVoice-over-Internet Protocol (VoIP) hasdiminished the voice telephone busi-ness. But it should be years before IPTVpulls in significant market share.

IPTV’s potential can be seen inIndia. Research firm Media Partners Asiapredicts that DTH will become India’sprimary digital platform in the long term,taking over 65% of subscribers. IPTV isexpected to take 25% while cable’s shareshould drop to 10%. India currently hassome 100 million TV homes, 62% ofwhich have cable.

IPTV, however, is another competi-tor for the satellite industry especially indeveloped countries with their advancedIP network infrastructure.

One analyst believes the satellite

market will be affected by the growingcompetition from IPTV and cable serviceproviders launching on-demand serviceson their two-way networks.

But in countries where infrastruc-ture has yet to develop, satellite opera-tors have a great opportunity to buildstrong brands and make major marketpenetrations.

HDTV by satellite is gaining anAsian foothold and iPSTAR is about tooffer HD video on demand among othernew services.

ShinSat will offer its triple-playservice in the form of “push HDTV,”which is video on demand on high-definition video. ShinSat said iPSTARtoday serves almost 40,000 terminalscompared to 26,000 in 2005.

The company said it can do bothunicasting and multicasting. iPSTAR ‘scommercial broadband services areavailable in the six countries where it hasgateways, including Australia andChina. It is building two more gatewaysin China and expects to launch itsservice by yearend. It also expects tobuild a gateway in India.

There certainly are a lot of develop-ments in Asian telecoms that can bevery instructive to their US counter-parts. One thing is certain—increasingconsumer demand will be driving themobile market in the next few years, andUS operators need every lesson it cangleam from experiences in other regions.

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FEATURE

Just before the holiday, two majortransactions saw Eutelsat’s investmentfund shareholders selling out. The firsttrade saw Barcelona-based constructionand communications outfit Abertis,buying a 32% stake in Eutelsat (for€ 1.1bn/$1.4bn) on December 5, paying€ 15.50 a share. The overall stake boughtis less than that required for a mandatedoffering for the complete business, butmore than sufficient to firmly directprogress at Eutelsat.

Abertis is betterknown for itsinterests in many ofEurope’s motorwaysystems, and isbuying the Eutelsatstock in the name ofAbertis Telecomwhich already ownsSpanish transmissioncompany ReteVisionwhich in turn owns aslice of Madrid-basedsatellite operatorHispasat. Abertis’purchase is subject to

SES and Eutelsat: In the news againBy Chris Forrester

regulatory approval, expected to be aformality and to close early this year.

The market did not expect thisinitial Spanish purchase. Stock was soldby investment funds Spectrum EquityInvestors and Texas Pacific (the 15%‘Nebozzo’ holdings), Cinven Group(12%) and Goldman Sachs (7%). Eurazeoheld onto its 25.5% stake for a fewhours.

Then, the second trade on Dec 7saw Eurazio sell its 25.5% holding to theFrench state-owned bank, Caisse desDépôts et Consignations, for € 862.7m, or€ 15.70 a share. Giuliano Berretta, CEO atEutelsat said: “We will now benefit froman association with two leading Euro-pean groups in infrastructure who willenable us to pursue and accelerate ourdevelopment.”

Market sentiment wasn’t 100%,with Eutelsat’s share price fallingimmediately after the Eurazeo sale.However, the two trades now certainlysuggest a period of stability for Eutelsat.The French bank (100% state-owned) isknown to be looking to boost itsportfolio of holdings in the telecomssector, and tends to be a longer-terminvestor and not likely to be seeking a“quick flip” of its holdings.

The market responded well to thestock sales in that it removed the majorportion of the 65% share overhang inEutelsat, which had created a degree of

As Bette Davis said in ‘All About Eve (1950): “Fasten your

seatbelts. It’s going to be a bumpy ride.” 2007, just days old, is

already showing that Europe’s satellite industry might be in for a

challenging year. For example, Paris-based Eutelsat, which is now the world’s

3rd largest satellite operator, might well end up further consolidating its position

during the year. That’s generally considered to be good news, but arch-rival

SES Global definitely has a few challenges to overcome, of which more in a

moment.

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FEATURES

uncertainty. Abertis, in its statement,said it was not “necessary in the presentcircumstances” to take full ownership.

Abertis’ CFO Jose Aljaro, specifi-cally asked where Hispasat fitted in hisoverall plans, stressed that Abertis hasno plans to merge Hispasat withEutelsat, although was a little vaguewhen asked what future synergies mightbe achieved. At Madrid-based HispasatEutelsat has a 27.7% holding. Last yearAbertis did attempt to expand itsholdings in Hispasat, where Abertis isthe Number 2 client for Hispasat. Theanalyst’s presentation, issued byAbertis, talked of the Eutelsat acquisi-tion being part of a “strategic movementtowards the consolidation of thetelecommunications business unit”within Abertis.

Abertis’ statement said: “Eutelsat isdestined to become a noteworthycomponent of Abertis’ core equityinvestments, within the framework of aninvestment model based on the principleof commitment to, and invigoration of,growth-oriented industrial projects,guided by a vision of stability and long-term investment horizon.”

Market sentiment was good, withDresdner Kleinwort in a Dec 5 notesaying the Abertis acquisition repre-sented increased diversification for theconstruction group and expansion for itstelecoms division. Telecoms representan 11% segment of Abertis’ overallsales.

Merrill Lynch in its note talked ofthe Hispasat link, saying: “One ramifica-tion of the Abertis move could be tospeed up an acquisition of HispasatWith a Spanish cornerstone investor atEutelsat, we believe this should allaySpanish concerns about nationalsecurity regarding Hispasat’s 43%interest in Hisdesat, a Spanish military

satellite venture. We believe an acquisi-tion of Hispasat is strategically andfinancially sensible.” The bank added:“The move by Abertis, which highlightsthe strategic rationale for combinedterrestrial and satellite distribution,could also be the first move in a (possi-bly drawn out) full blown takeover.”

Morgan Stanley in a pre-holidaynote, downgraded their advice onEutelsat to an ‘Equal Weight’ investmentposition, and instead suggested thatinvestors should now focus on SESGlobal, in that the Fixed Satellite Ser-vices sector remained good and whilethe short-to-medium term news flow hadnow evaporated for Eutelsat, SES Globalremained their preferred pick. AyshaZaman, senior analyst at Dresdner, alsonow firmly picks SES Global, and with atarget price of € 17.

Eutelsat’s uncertain future is oneproblem. SES Global has a problem ofanother colour, and it is taking place atits European Astra division. Just asAbertis’ lawyers were signing theirdocumentation, in a German court therewas another set of decisions beingmade. The German Bundeskartellamt(Cartel Office) has blocked the plannedlaunch of SES Astra’s ‘entavio’ system.The ‘entavio’ scheme would have seenAstra link with two German commercialbroadcasters which would encrypt theircurrent free-to-view satellite signals,with an Astra subsidiary issuing set-topboxes.

Specifically, the German authoritiesstopped the investigation because Pro7/Sat1 told the Cartel Office on Dec 5 thatit would scrap its encryption plan forfree-to-air channels. Dr Ulf Boege,president of the Cartel Office, said withPro7/Sat1 withdrawing their plans “thesuspicion of coordination ceased toexist”. Dr Boege was quoted as sayingthat documents it had seen “corrobo-

rated” the reasons for their examination.Other local critics of the SES plandescribed the result as a verdict forcommon sense. The Federation ofGerman Consumer Organisations(VZBV), for example, talked about thedecision resuming consumers’ trust.

Either way the ‘entavio’ (initiallyknows as Project Dolphin) scheme hascreated acres of negative press for SESAstra, and this constant stream of badnews has badly affected SES Global’sshare price, now trading at a discount toEutelsat.

SES Astra says its original ‘entavio’plan is now modified so that the newfocus will now be as an open platformfor pay-TV. This revised SES revenuemodel sees income coming not fromconsumers paying a planned – andhighly controversial - “technical fee” ofaround € 3.50 a month, but from potentialpay-television platform partners (withwhom SES is already in discussion). Themarket expects SES revenues to be lowerin absolute terms, but its costs will alsobe lower than anticipated, and overallleading to a 4-5% improvement inEBITDA during 2007.

This EBITDA improvement is thegood news, and unanimously welcomedby the market. However, the bad news isthat without a firm strategy for broad-casters to switch from simple analoguetransmissions to revenue-generatingdigital transmission, there’s a high riskthat German viewers will hold onto thestatus-quo, sticking with analoguebroadcasts and NOT migrating to anyform of pay television, whether atAstra’s ultra-low € 3.50 a month orPremiere’s more conventionally pricedsat-TV bundle. SES, of course, mightwell end up earning very useful longer-term transponder rentals as a result ofany extension to analogue viewing andwhile this is superficially appealing, the

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FEATURES

Cartel Office’s decision does little to drive the digitalmarket forward.

This was the view of the market. Morgan Stanley, in apre-holiday note (“Dolphin Lite”), said the Cartel Officedecision meant the prospect of analogue switch off beingextended to the middle of the next decade was “very realindeed”. In the bank’s view, the longer that analoguecontinues, the easier it will be for the transponders inquestion to be gradually reabsorbed into the market. “Theaim will be the same, for an open platform upon which allservices can be carried, thus making it easier for consum-ers to subscribe for different permutations of pay and freetelevision. However, the business model will be verydifferent: this will now be a B2B model, and will generaterevenues from the pay-television bouquets that sit on theplatform, rather than from consumers paying a monthlytechnical access fee,” said Morgan Stanley. SES Astra isalready in discussion with some broadcasters, not least anew entrant, the ‘Stargate’ platform, which proposesaggregating channels for new subscribers. Indeed,Dresdner Kleinwort in its note, reminds us that emergingdigital packagers like Stargate might well end up happilysubsidizing Entavio boxes.

The German satellite mix2.7m homes have digital FTA satellite3.6m have digital pay-TV by satellite10.1m have analogue satelliteData: Morgan Stanley/SES Astra

The German digital mix2005 2006

Cable analogue 46.7% 44.6%Cable digital 5.0% 7.2%Cable total 51.7% 51.8%Satellite analogue 26.4% 23.5%Satellite digital 16.7% 19.5%Satellite total 43.1% 42.0%Terrestrial analogue 5.3% 3.9%DTT 4.4% 5.3%Terrestrial total 9.7% 9.2%Data: New Television Insider

Morgan Stanley suggests that SES might still end upwith a modest per-subscriber fee: “Looking at the financialimplications of this change, firstly we note SES’ commentsthat the revised platform business model will result in thegeneration of far lower revenues than were envisagedunder the old scenario. In the latter case, SES planned to

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FEATURES

charge consumers a technicalaccess fee of € 3-3.5 per month,as well as a one-off connectioncharge. It is very clear that nopay-TV operator will be willingto pay a fee of that magnitude,unless SES were to take oversome activities of the pay-TVoperator (i.e. become anoutsourced servicing company).However, we do not see this aslikely, given that SES was in anycase going to outsource a lot ofthe consumer facing activitiesanyway. Thus it is likely thatthere will be a very small fee percustomer paid by the pay-TVplatform, perhaps € 0.50/month.”

“The German satellitemarket is rather a disorganizedsystem,” says Morgan Stanley,“with no interoperabilitybetween set-top boxes and/orpay-TV platforms. Without theentavio system, which wasdesigned to knit the whole thingtogether, we do not see anyreason why the pace of ana-logue conversions shouldaccelerate. On this basis, wecontinue to believe that demandfor analogue transponders willremain firm for a considerableperiod of time, such that the driftback into the market of theanalogue transponders aboutwhich the market has worriedwill be very slow. In our view,the slower the rate at whichanalogue broadcasting is givenup, the easier it will be to absorbthose transponders back intothe market.”

Morgan Stanley’s initialestimates that by 2012 therewould only be some 10 analoguechannels still broadcasting is nowprobably out of the window, and – says

the bank – now probably too low afigure. Currently there are 43 Astratransponders (41 focusing on Germany)

fully occupied with analogue transmis-sions. However, the bank says there istoo much uncertainty to revise those

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FEATURES

SES : Revenue predictions (in 000,000 Euros)2005 2006 2007 2008 2009 2010 2011 2012

EMEA 765 886 1,007 1,054 1,108 1,065 1,068 1,070Americas 459 522 427 472 500 522 569 624Asia/Other 34 33 34 38 31 33 35 37New Skies 0 152 198 208 217 226 233 240Project Dolphin 0 0 13 66 121 204 296 398Total Revenues 1,258 1,593 1,679 1,837 1,978 2,050 2,203 2,368Growth % 16.7 26.6 5.4 9.4 7.7 3.6 7.5 7.5Data: Morgan Stanley

SES news calendarGood news Bad news

Dec Entavio decision EBITDA up Delay to digital conversionDec AMC-18 launch Safe and sound -Dec Panasonic/Connexion

decision Worth € 12m p/a ?1Q/07 Astra 1L, NSS8 launches Sighs of relief ?1Q/07 Quetzsat RFP expected Expansion into Mexico -1Q/07 TPS/Canalsat sat. details Benefit for Astra?Benefit to Eutelsat?Feb 07 2006 resultsQ2/07 Sirius 4 launchData: Morgan Stanley/Inside Satellite TV

London-basedChrisForrester, awell-knownbroadcastingjournalist is theEditor forEurope, Middle

East and Africa forSATMAGAZINE. He reports onall aspects of the industry withspecial emphasis on content,the business of television andemerging technologies. He has aunique knowledge of the MiddleEast broadcasting scene, havinginterviewed at length theoperational heads of each of themain channels and pay-TVplatforms. He can be reached [email protected]

estimates upward other than to say thatthere’s plenty of scope for extensions tothe length of time needed for Germany’sanalogue-to-digital transition that wouldhelp SES Global’s revenues in the 2008-2012 time-frame.

There also seems to be progress onGeneral Electric’s 19% shareholdingstake in SES Global. GE acquired itsshares as part of the SES purchase of GEAmericom. Morgan Stanley suggests

that GE might exit SES Global “within thefirst six months of the year” and thatSES could buy back the majority, if notall, of the stake. This news, as with theBluCom news mentioned above, is partof a much more positive newsflow overthe upcoming weeks, not least possiblenews on the ‘Connexion by Boeing’aircraft broadband replacement servicefrom Panasonic. SM

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VIEWPOINT

Network planning isn’t simpleanymore. Satellite and fibernetworks are becoming ever

more complex. Numerous new elementsare being added to networks and newtechnologies on the satellite side areproliferating. Where once SCPC was thedominant means of satellite transmis-sion, shared hubs combined with themigration to IP based networks aregenerating new and complex problems,problems that network managers andsuppliers of individual network compo-nents are unlikely to resolve on theirown.

While each individual componentmanufacturer has an in-depth under-standing of the functionality of theirown device or software platform, howwell each individual component willwork when combined with other compo-nents and run across hybrid satellite/terrestrial networks remains a mysteryuntil those components are tested in asimulated environment. In addition,latency associated with some softwarepackages, including certain Microsoftproducts, can be a problem as well whenused across a satellite network. Thesenew complexities have generated a needfor a new, higher level network planningexpertise and problem solving.

Enter YR20, a unique networkengineering and consulting firm focusedon confirming the viability of complexnetwork design through extensivelaboratory testing and simulation andtrouble shooting existing networkproblems.

By Alan Gottlieb with Mike Hinz

New Challenges in Network Design

Headed by Mike Hinz, formerDirector of Real Time Services atHalliburton, YR20 leverages Mike’sunique expertise in network design andmanagement acquired through extensivefield experience managing Halliburton’smassive VSAT network. Compared to thesimple old days of SCPC, the kind ofcomplex problems faced by Mike and histeam everyday require expertise farbeyond the skill level of typical in-houseIT groups. For example:

The Onshore OperationsCenter

In the North Sea, a major oilcompany is evaluating moving itsRealTime operations from the rigonshore. For the oil company, thismeans moving 15-20 highly skilledgeophysical and engineering personnelfrom the rig to a secure land-basedoperations center. The net result: asignificant enhancement to employeeefficiency, a drastic lowering of operat-ing costs and a reduction in requiredpersonnel space on the rig itself.

However, from the communicationsperspective, the oil company needs toassure an acceptable quality of serviceacross both satellite and fiber networksunder conditions involving a myriad ofhigh bandwidth applications and criticaloilfield telemetry.

Essentially, managing the band-width to assure uninterrupted transmis-sion of the telemetry across finitebandwidth is absolutely critical. Toassure prioritization of critical telemetry

as well as available bandwidth for newbroadband applications, YR20 tested theplanned configuration in the laboratory,and assured that QOS was properlymanaged end to end across the numer-ous links in the network. If necessary,YR20 will use proprietary instrumenta-tion to assure QOS is applied uniformlyacross the network.

The net result of this project was anetwork that performs properly, asubstantial saving for the oil companycustomer, and significantly enhancedoperating efficiency.

Risk Management Software– Web Client

In order to manage risk, oil compa-nies frequently employ risk managementsoftware to assure proper compliancewith corporate and regulatory proce-dures. Typically, such software isinstalled at major company date centersworld-wide and accessed from rigs andremote locations via the network. Insuch a thin client environment andacross both fiber and satellite links,software can be very latency sensitive.In some cases, the network needs to befine tuned and in others, certain modifi-cations need to be made to the actualsoftware itself including re-writing ofcode.

YR20 was recently approachedby a manufacturer of risk managementsoftware. While the software performedwell across domestic terrestrial links, onrig sites performance was abysmal. Toresolve the problem, YR20 tested the

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VIEWPOINT

software in a lab environment.

YR20 immediately defined two issues. First, the web server was mis-configured which severely limited the data rate at which the server was able torespond to data requests. Second, certain client queries caused the databaseserver to respond extremely slowly. As a result of these observations, changeswere made in individual queries resulting in significant improvement insoftware performance and reduction in latency across the network..

The kinds of network problems faced by YR20 are now becomingsignificantly more prevalent in the industry as new technologies and newsoftware applications strain network performance as never before.

Broadband demand is soaring and users are taking advantage of theincreased bandwidth to send video, photos, documents and even music. ASPmodels are proliferating. Offshore rigs are using more and more bandwidth ascompanies are discovering the advantages of re-location of critical rig basedapplications onshore, use of video conferencing, transmission of engineeringdocuments and VoIP.

What YR20 does is rapidly becoming a vital function in the oilfieldand for any enterprise involved in the transmission of data and broadbandapplications across a wide area network, and, in particular, in particular, firmswhose transmission technology spans fiber, microwave and satellite.

Alan Gottlieb is CEO and Principal Consultant,Gottlieb and Company.Some of his most notableassignments including opening of enterprise marketsin Oil and Gas, International Construction, Pulp andPaper, Hospitality and Call Center Industries forVerestar and a survey of the market for InmarsatBGAN services in the oil and gas industry for

Inmarsat. In these assignments, Mr. Gottlieb employed an innova-tive combination of on-site market research interviews and special-ized sales technique to produce market entry strategies as well asgenerate initial sales. He can be reached [email protected]

Mike Hinz is President of YR20, a highly suc-cessful company founded in 2001 that offers acombination of proprietary world-class networkdiagnosis and monitoring hardware and softwaretools on service basis backed up by highly qualifiedengineering expertise. YR20 fulfills a critical role inassuring the quality, performance, and reliability of

data and telecommunications networks. YR20 also offers indepen-dent consulting services regarding remote site communicationssolutions. He can be reached at [email protected]

SM

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EXECUTIVE SPOTLIGHT

David Hershberg

Interview with Globecomm Systems Chairman

and CEO David Hershberg

Hauppauge, New York-based Globecomm Systems is probably oneof the most vertically integrated companies in the satellite

industry being able under one roof, to design, install, integrate,support, manage and operate your systems and networks. Theyprovide turnkey services that offer the same features and functions asa customer-owned facility. They manage and implement a varied rangeof projects worldwide including program origination for major USbroadcasters, hybrid fiber-satellite networks in Afghanistan and GPStracking system for NATO in Europe, among others. At the helm ofGlobecomm is their Chairman and CEO, David Hershberg, a 47-yearveteran of the industry who has seen both good times and bad timesduring his long and storied career. Hershberg recently sat down withSatnews Managing Editor, Virgil Labrador to share his insights onrunning a company as complex as Globecomm and his thoughts on thesatellite industry as a whole. Excerpts of the interview:

Q. For the benefit of our readers, canyou give us a brief background of yourcompany and where you are at rightnow in the industry?

A. Where we are right now is really aculmination of a lot of things that wehave been doing for a lot of years.When we first started the company webegan as a supplier of satellite communi-cation earth stations and we went alongquite happy for quite a while providingjust that. In 1996, we started a divisioncalled Netsat Express to provide internetservices to developing countries. NetsatExpress has since developed into ourservice arm which is Globecomm NetworkServices. So, where we are this year isthe result of a lot of the things we’vebeen wanting to do for a long time.Number one, we wanted to get into newmarkets. The government market wasour first priority-we were not strong inthat market five years ago. This year

close to 50 percent of our business is inthe government sector. The other areaswhere we have made some very goodstrides are the broadcast industry--wherewe are now building the MPEG- 4headend for SES Americom’s IP PRIMEservice. Another area where we havebeen active in is in the provision ofservices to common carriers. Voice overIP services this year will be at a recordlevel and we are doing a lot of intercon-nections for ISPs. We also do somebusiness in the enterprise area--not asmuch as we want to, but it a growing areafor us. We have two flagship customersin the enterprise area--Home Depot andBank of America.

What we really have been working ondoing is taking the service business thatwe’ve had and putting that with ourbasic infrastructure business that we’vebeen working on since we started thecompany and be able to offer our

customers a real full turnkey solution towhatever kind of telecommunicationsissues or needs they’ve got. And by thatI mean we’ll build the network for them,we’ll maintain and operate it for them,we’ll provide the space segment, we’llterminate it into teleports for them andwe run a 24 x 7 call center, Basically weare a one-stop shop. And we truly are,as we can do it all from our 125,000 sq.foot facility in Hauppage, New York.

Q. At this point in time where will thebiggest growth coming be coming from?

A. The government, then broadcast andfinally IPTV.

Q. With so many different projects inmany parts of the world and only 210people, how do you manage all of your

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SATMAGAZINE.COMJanuary 2007

EXECUTIVE SPOTLIGHT

US Navy Acquires AutoExplorer Terminals fromGlobecomm Systems

In the last quarter of 2006, Globecomm announced that it had signed a deal with theNaval Air Warfare Center Aircraft Divisionfor 50 of the company’s AutoExplorersatellite terminals, to be delivered by mid-2007. The Navy award added to a string

of military, government and commercial awards for the self-aligning portable satelliteterminals, which are available in .77, 1.0 and 1.2-meter configurations.

AutoExplorer terminals include integrated electronics (L through Ku-band and allintermediate frequencies) and are IP-enabled to accept optional routers and satelliteIP-optimized solutions. Suited for tactical support of military and peacekeepingforces as well as enterprise network and Internet access, the terminals provide cost-effective, two-way communications at rates of up to 2 Mbps. The antenna can be setup in less than 15 minutes and the auto-align system automatically locates, peaks-upand drives to theoretical cross-polarization position with base tilt correction. Moreinformation on AutoExplorer is available at www.globecommsystems.com.

diverse projects?

A. With a lot of less sleep. But seriously,we are very fortunate to have a lot ofvery good people who have been with usfor a long time. They are excellentemployees and they know their businessvery well. We aren’t a lot of things butwe do have a very good IP capability andthat has really helped us. Without thecapability to converge all the differenttechnologies that we are doing for ourcustomers, we would not be able to dowhat we are doing now.

15 years ago-- you needed myriad typesof equipment like multiplexes, switchers,etc., and then you’ll have a differentkind of network for video, data andvoice. Now, you only need one routerand one server and you can havedifferent video, voice and data servicescoming out of the same platform.

Q. Do you think you can sustain thisgrowth in the next few years?

Well, as a public company you really donot have any choice, you have to. Ithink we are in enough places now andwe have enough capability and theproduct and services to grow. I definitelythink we can sustain our growth becausewe are well-positioned in the market andwe have good product lines.. We‘vegrown from about $55 million to over$100 million in annual revenues in a four-year period and we’ve done that mainlyinternally.

Most companies in this business hasbeen merging or acquiring other compa-nies to grow and if you want to keepgrowing I think it’s something you’llhave to look at. It would be nice if wecould find an acquisition somewhere, asit will make our life a lot easier, but in themeantime, we have nothing yet, butwe’re looking.

One other thing we are doing in order tostay on top of technological develop-ments is constantly innovating. We havefour laboratories doing research anddevelopment.

Q. Are you profitable?

A. Yes, we have been for the last 12quarters. We lost a lot of money in thelate 90s from the Netsat Express venture,but we really turnaround the company bydiversifying our services and the marketsthat we serve. That way if there is adownturn in one area, say in the govern-ment business, we still have otherproduct lines such as the broadcastingand enterprise to fall back on.

Q. What about the satellite industry aswhole, what do you think are theprospects in the near-term?

I’m very bullish about the industry. I’vebeen in the industry 47 years now and itschanged a lot. I think I learned a lot more

in the last five years than in the first 42years.

There is certainly a lot of opportunitiesfor the satellite industry. One is thebroadcast part of the business wheresatellite is an obvious choice for that.Another is stuff like the handheld medialike satellite radio will be a big businessand satellites have a big role to play inthat. Then you have the military--whichis becoming more net-centric in thebattlefield, that will require a lot morebandwidth. I think there is also growingdemand for backup systems because ofthe concern for Homeland Security. Oneother subtle opportunity is the cellularmarket which now has two billion usersmostly in cities. The next billion userswill have to come from rural areas, socalled “telecommunications islands,”where satellite is a natural deliveryplatform. So there’s a lot of good thingsgoing for the industry. SM

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SATMAGAZINE.COMJanuary 2007

VITAL STATISTICSThe satellite industry is still paying a heftyprice for its excessive investments of the late 90s’

About Aon ExplorerAon Explorer is the strategy consulting arm of Aon France in the aerospace and telecoms markets. Resulting from theacquisition of Vista Advisers in January 2005, Aon Explorer Strategy & Finance has developed a thorough expertise inbusiness plans, feasibility studies, companies due-diligence both for the satellite industry and the finance community.Please contact Laurence Journez, Vice President, tel: +33 1 5875 6064, email: [email protected]

n Recent consolidations have not yet contributed to resolve oversupply situations especially in Asia and Latin America.n Operators are not equal in facing stiff market conditions

• Global operators benefit from large economies of scale. They are in a position to drop prices to increase their fillfactors

• National flagship operators protected by regulatory barriers are able to keep heir prices reasonably high• The other operators struggle to contain serious price competition while keeping their financials sustainable

n Prices have decreased by 30% between 2000 and 2005.• Low end prices for commodity capacity can be found at USD0.5-0.7 million• Large fleet operators owned by private equity firms could further enhance this trend with the objective to rapidly

improve fill ratesn Consolidation of regional players is thus bound to occur, especially in Asia, to provide them with a stronger ability to face

global operators.• It would lead to wider groups with larger assets, lower risks and superior access to corporate and project

financing.• It would enable to benefit from economies of scale, combined know-how, enhanced track-record, satellite back-ups,

fleet rationalization, diversification of revenue sources, and a wider distribution network.n The creation of mega global operators stresses the point, and is likely to further jeopardize the survival of small operators.

• In Latin America, the first steps of rationalization are happening respectively around SES Global and Intelsat.However, it is still too early to notice any change.

• Asian players will have to undergo a consolidation process. They are still in a position to decide whether they wantto remain independent or not, but this situation is unlikely to endure.

Presented by

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SATMAGAZINE.COMJanuary 2007

MARKET INTELLIGENCE

In the purview of satellite industry‘insiders’ it is certainly firmly appreciated that much of the world’s

broadband ICT networking capacity isdependent on state-of-the-art satellite-based solutions, and that this is soessentially because of the three funda-mental defining characteristics ofsatellite.

Cost EffectivenessCommunications over satellite canbe extremely cost-effective. Thetotal cost of ownership of broad-band via satellite solutions has beenreduced by economies of scale inthe use of satellite networks and ofseamless satellite/terrestrial hybridnetworks in most countries over a20-year period. Globally, over onemillion receive-only terminalsusing IP multicasting have beendeployed, together with nearly onemillion interactive terminals.

No Limitation of Distance, Geogra-phy or LocationThe unmatched cost-effectivenessof broadband over satellite alsoarises from the unique combinationof broadcast capabilities within fullnetworking solutions, withoutlimitation of distance, geography orlocation. IP over DVB is the defacto standard for broadbandcommunications over satellite, andsuch systems clearly demonstratetheir greatest cost-effectiveness by

By Martin JarroldChief, International Program Development, Global VSAT Forum

Evolving the Dialog on Operational MissionCriticality for ICT Applications

Vertical Markets & IP Satellite:

matching the asymmetric nature ofInternet traffic. Satellite servicescan provide 35-45 Mbps forbackbone connection, with signifi-cantly greater data rates availablefor key business applications, e.g.videoconferencing. Multicastingspeeds reach 2-10 Mbps anddelivery of Internet to consumerscan be achieved at DSL speed orgreater.

Rapid, Economic and ReliableDeploymentSatellite access solutions can bedeployed rapidly and economicallywith uniform quality of service at alluser locations. High-speed andsecure delivery of all types ofbroadband applications is achievedthrough a single, end-to-endsolution that is more reliable thanterrestrial alternatives, flexible to fitwith present demand, and scalableto fit all future requirements.

Equally, it is understood within thepurview of ‘insiders’ in the very manycommercial, industrial, government andcivil society “vertical” markets aroundthe world that the ready availability of,and reliable, cost-effective, access to,efficient means of communication isessential to mission critical operationalsuccess.

The key is in continuing to bringthese perspectives into close proximity

in ever more innovative and creativeways. This – of course – is a majorelement of the global educational briefof the GVF. Nowhere are the facts ofvertical market ICT requirements moreevident – to mention but three of theseverticals – than in the energy/rawmaterials exploitation environment, inthe business continuity/disasterrecovery/emergency managementenvironment, and in the extendeddeployment of terrestrial mobile net-works supporting voice and extendedbroadband data applications. Satellite-based communications, together withsatellite-terrestrial hybrid solutions,already play a vital role within thesesectors – providing essential connectiv-ity in challenging geographic and otherphysical circumstances – but it is a rolewhich has both demand-side andsupply-side potential to expand.

To promote and facilitate thisproximity, to bring focus to key points ofdiscussion, and to provide networkingopportunities for demand (end-user) andsupply (vendor) expert practitioners, theGVF has announced two key opportuni-ties in the first half of 2007 at which thenature of the communications impera-tives of such verticals will be fullyaddressed:

• The 3rd GVF Satellite Sympo-sium @ CABSAT – organized incollaboration with Dubai WorldTrade Center, UAE, and which

Presented by

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SATMAGAZINE.COMJanuary 2007

MARKET INTELLIGENCE

takes place during the 13th MiddleEast International Cable, Satellite,Broadcast & CommunicationsExhibition, 6 – 8 March 2007.

• Oil & Gas Communications2007: The Second Africa and theMiddle East Conference –organized in collaboration withUK Event Management Partners(UK-EMP), and following theacclaim for the first Oil & GasCommunications event in May2006 will once again take place inCairo, Egypt, during May 2007(exact dates yet to be confirmed).

The program for the latter of theseevents is in development, but willinclude such themes as: The evolution-ary dynamics of application and technol-ogy trends; Bandwidth supply anddemand; Bandwidth pricing and Qualityof Service issues; Hybridization ofcommunications solutions offerings;Satellite links and disaster recovery;Using communications to manageenvironmental impact; Oil & gas e-commerce; the licensing/regulatoryenvironment; and, industry case studies.

However, for this issue ofSatMagazine.com I will focus on the firstof these events in Dubai.

‘Applications Innovation forMission Critical Solutions: VerticalMarkets & the Growth of MiddleEastern IP Satellite’ is the title/themefor the 3rd GVF Satellite Symposium @CABSAT. With reference to the demand– supply/end-user – vendor contextdefined above, this is a title that reflectsthe vitally significant trends in theevolving business mission of thesatellite communications industry:

(1) To overwhelmingly focus onthe delivery of IP-based applications;and,

(2) To direct that focus on ensur-ing that key vertical markets are well

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SATMAGAZINE.COMJanuary 2007

MARKET INTELLIGENCE

served.

CABSAT has always been animportant exhibition in the Middle Eastsatellite show calendar, particularly forthe satellite broadcast industry, but by2005 it had been through a noticeabletransition. At the 11th Middle EastInternational Cable, Satellite, Broadcast& Communications Exhibition I firstobserved a very significantly elevatedpresence on the exhibition floor from thesatellite communications industry. Thistransition continued in 2006 at the 12th

CABSAT show, and 2007 promises evengreater things, with an even strongerreference to, and particular focus on, thevertical markets environment.

With ‘Applications Innovation forMission Critical Solutions: VerticalMarkets & the Growth of MiddleEastern IP Satellite’ the GVF has lined-up another program to again bring avalue-added conference flavor to whatis, otherwise, primarily an exhibition.The content of this program is, ofcourse, set against the regional back-drop of unprecedented demand for IP-based services which continues to drivemillions of potential end-users towardsvarious technology platforms that candeliver broadband communicationssolutions. But, the ongoing question

remains… justexactly how aresatellite-based IPbroadband solutionscompeting in thisdynamic environ-ment?

The GVFSymposiumprogram isstructured toanswer this keyquestion, and insummary, is asfollows.

Identifying Key Regionalerticals & the Mission CriticalSolution•̀ ` The Energy Sector and IP

Satellite• Disaster Recovery, Emergency

Management, and BusinessContinuity Provision overSatellite

· Satellite in the Market forMobility: Mobile SatelliteServices and TerrestrialServices Backhaul

Current State-of-the-Art IPSatellite in the Middle East

• Making the Most of theBandwidth

• Regional Satellite Capacity: IsThere Enough?

• Spectrum Competition: Is theBattle for C-band a Middle EastIssue?

Martin Jarrold is the Director, International Programs of theGlobal VSAT Forum. He can be reached [email protected] For more information on the GVF gotowww.gvf.org

The Innovation Challenge:Evolving, Developing & Adapting theSatellite Application

• Innovation Challenges – CaseStudy 1 and the Solution

• Innovation Challenges – CaseStudy 2 and the Solution

• Innovation Challenges – CaseStudy 3 and the Solution

“Future Evolution”: Advancing theDynamics of the IP Satellite Solution

• Alternative Satellite Technologies: Platforms and Performance

• Cost-Effectiveness and theCompetitive Business Modelfor IP Over Satellite

• Extending the Role of VoIP –The Satellite Connection

• Next Generation Networkingover IP Satellite

A number of the key speaking/presentation opportunities in thisprogram have already been filled, butslots are still available, as are opportuni-ties for organizations to heighten theirCABSAT profile through sponsorship ofthe Symposium.

The complete Symposium programwill be published on www.cabsat.com,and further information on speakingslots and sponsorships may be obtainedfrom Martin Jarrold, the SymposiumChairman, at [email protected], ortelephone + 44 1727 884513 SM

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SATMAGAZINE.COMJanuary 2007

STOCK MONITORSTOCK MONITORSTOCK MONITORSTOCK MONITORSTOCK MONITOR

For real-time stock quotes go to www.satnews.com/free/finance.html

ADVERTISERS'INDEX

AAE Systems 8www.aaesys.com

Advantech AMT 24www.AdvantechAMT.com

Andrew 29www.andrew.com

ANACOM 25www.anacominc.com

AVL Technologies 33www.avltech.com

COMTECH EF DATA 6www.comtechefdata.com

CPI SATCOM 38www.cpii.com/satcom

Global Link 17www.globalinktv.com

L-3 Narda SatelliteNetworks 16www.lnr.com

NEWTEC 30www.newtec.be

MITEQ 13www.miteq.com

RADYNE 20www.radn.com

SES AMERICOM 11www.ses-americom.com

WAVESTREAM 14www.wavestream.com

APT SATELLITE ATS .55 1.20 - 2.10

ASIA SATELLITE (ASIASAT) SAT 18.30 15.91 - 19.60

BALL CORP 43.60 34.16 - 45.00

BOEING CO BA 88.84 65.90 - 92.05

BRITISH SKY ADS BSY 41.20 34.06 - 43.75

CALAMP CORP CAMP 8.44 5.44 - 13.90

C-COM SATELLITE SYSTEMS INC. CMI.V 0.34 0.23 - 0.56

COM DEV INTL LTD CDV.TO 6.46 2.10 - 6.88

COMTECH TELECOM CMTL 38.07 25.67 - 39.86

THE DIRECTV GROUP DTV 24.94 13.28 - 25.57

ECHOSTAR COMMUNICATIONS DISH 38.03 26.88 - 38.92

GLOBECOMM SYS INC GCOM 8.81 5.88 - 9.70

HARRIS CORP HRS 45.86 37.69 - 49.78

HONEYWELL INTL INC HON 45.24 35.24 - 45.77

INTL DATACASTING CORPORATION IDC.TO 0.19 0.14 - 0.31

INTEGRAL SYSTEMS ISYS 23.17 18.63 - 33.55

KVH INDS INC KVHI 10.61 9.43 - 14.48

L-3 COMM HLDGS INC LLL 81.78 66.50 - 88.50

LOCKHEED MARTIN CORP LMT 92.07 62.52 - 93.24

NEWS CORP NWS 22.26 16.21 - 22.95

NORSAT INTL INC NSATF.OB 0.55 0.30 - 0.90

NTL INCORPORATED NTLI 25.24 19.99 - 31.00

ORBITAL SCIENCES CORP ORB 18.44 12.50 - 20.36

PT PASIFIK SATEL ADR PSNRY.PK 0.0001

QUALCOMM INC QCOM 37.79 32.76 - 53.01

RADYNE CORPORATION RADN 10.74 9.52 - 17.85

SIRIUS SATELLITE RADIO SIRI 3.54 3.50 - 6.82

SES GLOBAL FDR SDSFA.F 12.45 -

TRIMBLE NAVIGATION TRMB 50.73 34.60 - 53.00

WORLDSPACE INC WRSP 3.50 1.90 - 14.70

VIASAT INC VSAT 29.81 22.32 - 30.83

XM SATELLITE RADIO XMSR 14.45 9.63 - 30.46

COMPANY NAME SYMBOL PRICE 52-week Dec. 30) range