12
Satellite Executive Briefing Satellite Executive Briefing Satellite Executive Briefing Satellite Executive Briefing Satellite Executive Briefing April 1-15, 2009 1 Oppor Oppor Oppor Oppor Opportunities in the DTH Gr tunities in the DTH Gr tunities in the DTH Gr tunities in the DTH Gr tunities in the DTH Ground ound ound ound ound Equipment Mar Equipment Mar Equipment Mar Equipment Mar Equipment Market et et et et (Continued on page 4) Vol. 2 No. 9 June 1-15, 2009 Industr Industr Industr Industr Industry y y y y Trends ends ends ends ends, Ne Ne Ne Ne News ws ws ws ws Anal Anal Anal Anal Analysis ysis ysis ysis ysis, Mar Mar Mar Mar Market Intellig et Intellig et Intellig et Intellig et Intelligence and Oppor ence and Oppor ence and Oppor ence and Oppor ence and Opportunities tunities tunities tunities tunities s by Virgil Labrador Editor-in-Chief Contents Contents Contents Contents Contents From the Editor 3 Calendar of Events 2 Market Trends 6 Vital Statistics 9 Satellite Markets 25 Index 10 Featured Event: Satellite Industry Forum 2009 11 F rom 2005 to 2008, the number of direct-to-home (DTH) satellite platforms grew over 49% from 65 to 97 platforms worldwide, according to estimates by Euroconsult. At least 10 new DTH platforms were announced in 2008. Despite this dramatic growth in DTH platforms, the industry is facing pressure to reduce costs in the current global economic environment in order to maintain and expand its subscriber base and to meet investor expectations for returns. Growth in demand for content also drives a continuous need for expansion, upgrade and extension of both space and ground segment systems for DTH providers. High power amplifiers (HPAs) are one of the most critical selections made in designing and upgrading DTH uplinks. Amplifiers not only affect link performance and availability, but are also one of the major components in installation and operating costs. Leading manufacturers include Comtech Xicom, CPI, and Miteq/MCL. Traditionally, DTH uplinks have used rack- mounted Klystron vacuum-tube amplifiers to achieve the high transmit powers necessary to ensure the very high availability needed for all-weather operation. However, in the last five years, TWTA (traveling wave tube amplifier) solutions have become available at power levels that meet DTH uplink requirements and offer multi-carrier operation through a single amplifier. This is a significant advance because use of TWTAs reduces the cost to purchase, install, operate and maintain the HPAs by over 75% when compared to indoor klystron power amplifiers (KPAs), according to manufacturer estimates. And because the HPA is typically the single largest element in the uplink system’s power consumption, using fewer amplifiers with higher efficiency can also dramatically reduce the DTH ground segment’s power needs and carbon footprint. “...In most cases, a single TWTA operating with mul- tiple carriers can take the place of multiple klystron power amplifiers (KPAs), dramatically reducing upgrade costs. System reli- ability is enhanced and power consumption is re- duced dramatically, lower- ing ongoing operating costs...”

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Satellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive Briefing April 1-15, 2009 1

Oppor Oppor Oppor Oppor Opportunities in the DTH Grtunities in the DTH Grtunities in the DTH Grtunities in the DTH Grtunities in the DTH GroundoundoundoundoundEquipment MarEquipment MarEquipment MarEquipment MarEquipment Markkkkketetetetet

(Continued on page 4)

Vol. 2 No. 9 June 1-15, 2009

IndustrIndustrIndustrIndustrIndustry y y y y TTTTTrrrrrendsendsendsendsends,,,,, Ne Ne Ne Ne News ws ws ws ws AnalAnalAnalAnalAnalysisysisysisysisysis,,,,, Mar Mar Mar Mar Markkkkket Intelliget Intelliget Intelliget Intelliget Intelligence and Opporence and Opporence and Opporence and Opporence and Opportunitiestunitiestunitiestunitiestunities

s

by Virgil Labrador Editor-in-Chief

Contents Contents Contents Contents Contents

From the Editor 3Calendar of Events 2Market Trends 6Vital Statistics 9Satellite Markets 25 Index 10Featured Event: Satellite Industry Forum 2009 11

From 2005 to 2008, the number ofdirect-to-home (DTH) satelliteplatforms grew over 49% from 65 to

97 platforms worldwide, according toestimates by Euroconsult. At least 10 newDTH platforms were announced in 2008.Despite this dramatic growth in DTHplatforms, the industry is facing pressureto reduce costs in the current globaleconomic environment in order to maintainand expand its subscriber base and to meetinvestor expectations for returns. Growthin demand for content also drives acontinuous need for expansion, upgradeand extension of both space and groundsegment systems for DTH providers.

High power amplifiers (HPAs) are one ofthe most critical selections made indesigning and upgrading DTH uplinks.Amplifiers not only affect link performanceand availability, but are also one of the majorcomponents in installation and operatingcosts. Leading manufacturers includeComtech Xicom, CPI, and Miteq/MCL.

Traditionally, DTH uplinks have used rack-mounted Klystron vacuum-tube amplifiers toachieve the high transmit powers necessaryto ensure the very high availability neededfor all-weather operation. However, in thelast five years, TWTA (traveling wave tubeamplifier) solutions have become availableat power levels that meet DTH uplinkrequirements and offer multi-carrier operationthrough a single amplifier. This is asignificant advance because use of TWTAsreduces the cost to purchase, install, operateand maintain the HPAs by over 75% whencompared to indoor klystron power amplifiers(KPAs), according to manufacturer estimates.And because the HPA is typically the singlelargest element in the uplink system’s powerconsumption, using fewer amplifiers with

higher efficiency can also dramaticallyreduce the DTH ground segment’s powerneeds and carbon footprint.

“...In most cases, a singleTWTA operating with mul-tiple carriers can take theplace of multiple klystronpower amplifiers (KPAs),dramatically reducingupgrade costs. System reli-ability is enhanced andpower consumption is re-duced dramatically, lower-ing ongoing operatingcosts...”

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Satellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive Briefing June 1-15, 20092

EDITORIAL STAFF

Virgil [email protected]

Peter I. GalaceEditor, [email protected]

Howard GreenfieldContributing Editor, Europe, Middle Eastand Africa (EMEA)[email protected]

Contributing Writers:

Bruce Elbert, Dan Freyer,Robert Bell, Elisabeth TweedieAlan Gottlieb, Lou Zacharilla,B. H. Schneiderman, Tom Watts

SYNTHESIS PUBLICATIONS LLCP.O.Box 4174, West Covina CA 91791 USA

Phone: +1-626-931-6395 Fax +1-425-969-2654E-mail: [email protected]

Advertising

Michelle ElbertDirector of [email protected]

Comtech Xicom........................8www.xicomtech.com

GlobeCast.......................... .....6 www.globecast.com

Satellite Executive Briefing is publishedbiweekly by Synthesis Publications LLC

and is available for free atwww.satellitemarkets.com

The Asia-Pacific Satellite Market

© 2009 No part of this publication may bereprinted or reproduced without prior writtenconsent from the publisher.

June is upon us and for the those in the Northern Hemisphereit means the start of summer. It also means that most of uswill be heading to Singapore for CommunicAsia, arguably

the most important show for our industry in the Asia-Pacificmarket. This year, CommunicAsia will have added significanceas it will showcase the Asian-Pacific market and how it’s copingwith the global economic crisis.

The Asia-Pacific market with over half the world’s population has been toutedfor as long as I can remember as the world’s largest market for everything, andthat includes the market for satellite products and services. However, the un-even development of countries, strict regulatory regimes and other factorshave one way or the other stymied the full development of the Asian market toits full potential. How Asia is coping with the current global economic crisisis instructive. The coutnries in the ASEAN region, where Singapore is part of,have managed to avoid the worse effects of the crisis and are predicted to growat a modest rate this year. These countries, which include Indoneisa, Vietnamand the Philippines are robust markets for Direct-to-Home satellite services.Perhaps a good indicator of the viaibility of the Asian market is the announce-ment as we went to press of the Echostar and AsiaSat joint-venture to launcha DTH service in Asia. Echostar, which is slowly losing subscribers in theirbailiwick in North America, has been expanding in different regions and has putsubstantial resources toward Asia. This bodes well for this market.

We will be covering the Asia market in greater depth is our next issue which wewill be distributing a print edition at CommunicAsia and at the Cable andSatellite Broadcasters Association (CASBAA) Satellite Industry Forum whichwil be held in Singapore, the day before CommunicAsia (see feature on page11). Watch out for that. And if you haven’t made plans to attend the CASBAASatellite Industry Forum, I strongly recommend it as it will focusing exclusivelyon issues of importance to the satellite industry in this vital market.

Also, we invite everyone to our booth at CommunicAsia, which we are sharingwith the GVF at Hall 6, stand no. 6G4-07.

See you in Singapore!

ND SatCom..............................12 www.ndsatcom.com

San Francisco Intern’l Gateway.9 www.sfig-teleport.com

Advertisers’ Index Advertisers’ Index Advertisers’ Index Advertisers’ Index Advertisers’ IndexThe Satellite Technology Guide.......3www.satellitemarkets.com/node/34

From the Editor

TO GET A FREE SUBSCRIPTION, REGISTER AT WWW.SATELLITEMARKETS.COM

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Satellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive Briefing June 1-15, 2009 3

June 2-4, 2009 ISCe 2009 San Diego Marriot Hoteland Marina, San Diego, California, USA Tel: +1 (562)901-9191 Fax: +1 (562) 901-9192 e-mail:[email protected] web: www.isce.com

June 15, 2009 CASBAA Satellite Industry Forum,Four Seasons Hotel, Singapore Tel: +852- 2854-9913 e-mail: [email protected] web:www.casbaa.com/satellite_industry_forum.aspx

June 16-19, 2009 CommunicAsia 2009 SingaporeExpo Convention Center, Singapore, Tel: +65- 6233-6638 web: www.communicasia.com

September 7-10, 2009 World Satellite BusinessWeek 2009 Paris, France Tel: +33-(1) 49 23 75 24e-mail: [email protected]: www.satellite-business.com

September 10-15, 2009 IBC Conference and Expo2009 RAI EXhibtion Center, Amsterdam, TheNetherlands Tel: +44-(0) 20-783-24100 e-mail:[email protected] web: www.ibc.org/

September 29-October 1, 2009 APSCC 2009Satellite Conference and Exhibition, KualaLumpur, Malaysia. Tel: +82 31 783 6246 e-mail:[email protected] web: www.apscc.or.kr

October 5-9, 2009, ITU Telecom World 2009, Geneva,Switzerland, Tel. +41 22 730 6161 Fax: +41 22 730 6444Email: [email protected]: www.itu.int/WORLD2009/

October 7-11, 2009 CeBIT Eurasia BilisimInternational Trade Fair for InformationTechnology, Telecommunications, Software +Services, held in conjunction with CeBIT Broadcast,Cable+Satellite Eurasia, Istanbul, Turkey Tel: +90(212) 334 69 69 Fax: +90 (212) 334 69 70 e-mail:[email protected]: www.cebitbilisim.com/index.htmland www.cebit-bcs.com/en/index.html

Calendar of Events

The Satellite TechnologyGuide for the 21stCentury

by Virgil S. Labradorwith chapter contributionsfrom John M. Puetz, DC Pal-ter and Daniel B. Freyer.

200 pages / 5.5" x 8.5" /Illustrated with photos, tablesand diagrams with appendi-ces.

ISBN: 978-1-60530-421-2

Price: US$ 25.99 (includingshipping and handling)

The Satellite Technology Guide for the 21st Century clearly explains innon-technical terms the basics of satellite communications technology andhow it works. This book also provides a historical background of theindustry, its current status, market prospects, trends and the future ofsatellite communications.

Fully illustrated with graphs and tables, thebook contains appendices including a glos-sary of terms and a list of industry resources.

Chapters include: A Brief History of the Sat-ellite Communications Industry; Overviewof the Satellite Communications Industry;The Basics of Satellite Communications; TheSpace Segment; The Ground Segment;Satellite Services; VSATs; Satellites and theInternet; The Future of Satellite Communi-cations.

An indispensable guide to the basics of sat-ellite technology and the global industry. Noother book in the market today provides a

more comprehensive view of satellite technology and the industry in oneeasy-to-read volume at a very low price of only $25.99 including ship-ping and handling.

For more information or to order your copy now,go to: www.satellitemarkets.com/node/34or e-mail: [email protected]

NoNoNoNoNow w w w w AAAAAvvvvvailabailabailabailabailablelelelele

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Satellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive Briefing June 1-15, 20094

Cover Story

Ground Equipment Market...from page 1

TWTAs present a unique opportunityfor cost-savings and reduced systemcomplexity for DTH operators in theseeconomically challenging times.

Reducing System Cost and Complexity

High power outdoor TWTAs, such asComtech Xicom’s new TWTAs designedfor direct-to-home, enable uplinkengineers to mount the HPA at theantenna, eliminating long waveguideruns and shelter requirements whilemaintaining high reliability (see sidebararticle ). In existing systems, movingfrom multiple (one per carrier plusswitched 1-for-N redundant) indoorrack-mounted Klystrons to a 1-to-1redundant multi-carrier outdoor TWTAsolution can free up valuable rack spacefor capacity expansion, withoutexpensive and time-consuming physicalbuild-outs. It can also dramaticallyreduce thermal/air-conditioningrequirements. This TWTA-basedapproach offers significant advantagescompared to earlier Klystronapproaches, reducing both systemcomplexity and the cost to install,operate and upgrade a system. Here’show:

Operational Flexibility: Growing anetwork using TWTAs is easy whencompared to a Klystron power amplifier(KPA) approach. Physical imple-mentation of the outdoor TWTAs ismuch simpler than providing additionalsheltered, air-conditioned rack space fornew Klystrons. Carriers can be addedwithout installing additional amplifiersas long as the system operates withinthe power and linearity requirements of

the TWTA. This gives an earth stationoperation critical flexibility compared tothe traditional approach of adding a newKPA for each added carrier. It alsoprovides flexibility in the link for changesin power and linearity requirements perchannel as transmission standardschange.

Cost Savings: Multi-carrier operationwith a single HPA dramatically reducesHPA installation and replacement costs.For example, a DTH provider with 4channels to transmit can multiplex thesewith a 1+1 TWTA solution, requiring only2 HPAs, compared with 4 onlineamplifiers and at least 1 spare for aKlystron solution.

Advantages with this kind of TWTAapproach include:

• Eliminating the need for multiplexersand simplifying switching systems,thus reducing acquisition costs andimproving system reliability.

• Reducing a DTH uplink’s HPApower consumption by about 90%in most cases due to the reducednumber of HPA’s required andhigher TWTA efficiency. Thisdirectly lowers recurring operatingcosts.

• Reducing the size and cost of theemergency backup generator (orincreasing backup operation time byup to a factor of 10)

• Eliminating the need for a fastchannel changer for the backup HPAsince transmit frequencies are easilychanged on a TWTA by modifying

its input frequency; klystrons mustbe mechanically tuned, increasingoperational manpower requirements.

Moving the HPAs to the antenna from thetransmission room provides still morebenefits:

• It eliminates the need for longwaveguide runs between thetransmission room and antenna - andassociated losses. In many cases, asingle TWTA, with its higherinstantaneous bandwidth, canprovide much more power at theantenna compared to KPAs in thetransmission room.

• It also reduces space requirements forthe transmission room facility, saveson new installations, and frees upspace needed for upgrades.

• In addition, it can reduce airconditioning costs by eliminating a

TWTA vs. KlystronAdvantages

••••• Reduced system costs

••••• More bandwidth peramplifier

••••• More operational flexibility

••••• More redundancy

••••• Less electrical powerconsumption

••••• Less space

••••• More antenna flange power

••••• More supplier options

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Satellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive Briefing June 1-15, 2009 5

significant portion of the thermaldissipation in a transmission room.

DTH providers usually plan to operatepermanent carriers for as long as possible,even for decades, over which time thetubes, a component in the amplifier, maybe replaced without a need to retire thewhole HPA. Using Klystrons that relyon a single tube supplier for thatcomponent puts all of a DTH uplink’s“eggs in one basket.” In replacingklystrons with TWTAs, DTH operatorscan choose a TWTA product that iscompatible with multiple supply sourcesof tubes, reducing their long-termdependency on a single supplier forreplacement parts.

Overall, the business case for outdoorTWTAs in DTH uplinks is compelling:DTH networks benefit from a reliablesolution offering reduced amplifier costs,lower electricity consumption and areduction in facilities and ancillaryequipment cost. That should make bothengineering and financial managementhappy.

North American Direct-to-Home Providers

HPA Upgrade Choice: TWTAsIn recent years, HPA manufacturers, antenna manufactures and NorthAmerican Direct-to-Home operators have been coming to the same conclusion:system expansion using klystrons is expensive, impractical and unsustainable.With the growth of HD and local channels via spot beams, facilities becamestretched to their capacity.

Klystron amplifiers have narrower bandwidths, and require indoor facilities,multiplexers, tuners, rotary joints, and other parts. Broadband amplifiers(TWTAs and SSPAs) enable rapid re-configuration, making it easy to add orchange channelconfigurations. MajorNorth American Direct-to-Home operators saw thefundamental superiority ofmigrating to a broadband,outdoor architecture,sources say. By movingamplifiers into the antennahub, these operators havesaved on facility expensesand power. A singleTWTA, operating withmultiple carriers, took theplace of multiple klystronpower amplifiers (KPAs),dramatically reducing theirupgrade costs.

These are no doubt key reasons why TWTAs from Comtech Xicomhave made big inroads with the major direct-to-home providers in NorthAmerica. Comtech Xicom is a leading worldwide manufacturer of high poweramplifier products for satcoms markets, including TWTAs, SSPAs and KPAsfor a wide range of frequencies and applications. Xicom’s 750 Watt XTD-750DBS has been the amplifier of choice in North American direct-to-homeuplinks, changing how the industry operates. At Ka-band, where greaterbandwidth availability enables new HD capability, Xicom’s 250 Watt XTD-250Ka TWTA has set the standard, with a new 500 Watt unit now available.For DTH operators using the Ku satcom band, a new 1250 Watt XTD-1250KuTWTA is making the case for the outdoor TWTA approach even moreattractive for their DTH uplinks.

Comtech Xicom’s amplifiers have proven tobe an amplifier of choice in direct-to-homeuplinks in North America. (photo: ComtechXicom)

Virgil Labrador is theEditor-in-Chief ofSatellite Markets andResearch based in LosAngeles, California. He

is the author of two books on thesatellite industry and has been coveringthe industry for various publicationssince 1998. Before that he worked invarious capacities in the industry,including a stint as marketing directorfor the Asia Broadcast Center, a full-service teleport based in Singapore. Hecan be reached [email protected]

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Satellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive Briefing June 1-15, 20096

Market Trends

Asia-Pacific Market to Lead Telco TV Growth

.com GlobeCast Group

Media Sharing Platforms.ai 25/05/2009 18:31:23

The bleak market outlook in the last quarter of 2008did not seem to deter the growth of pay TV. Service

operators, especially those in mature high-speed Interneteconomies – many of which are in the Asia-Pacific region –continue to strive towards providinginteractive bi-directional television.According to new pay-TV market datafrom ABI Research, APAC will continueleading subscription growth, delivering a37% CAGR (compound annual growth

rate) over the next three years.

Telco TV in general will grow at anestimated CAGR of 29% over the nextthree years to 47 million subscribersglobally by the end of 2011. ABIResearch industry analyst Serene Fongnotes that, “By the end of 2008, telco TVusage continued to be concentrated incountries such as France, South Koreaand Hong Kong. Massive countries suchas China and India are still very muchinhibited by the lack of sufficiently broadbandwidth but they are expected to behigh growth markets in the years to

come.”

As the popularity of telco TV growsnearly exponentially, legacy satellite,cable, and terrestrial TV formats will alsowitness cannibalization. However Fongbelieves that, “They will continue toretain their footholds in their key marketsfor some time. And we will continue tosee overall growth heading north for awhile, but it will become more and more

constrained.”

ABI Research’s new study, “Pay-TV Subscriptions” which isupdated quarterly, profiles global pay-TV subscriptioninformation. For more information visit www.abiresearch.com,or call +1.516.624.2500.

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Satellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive Briefing June 1-15, 2009 7

Using Stimulus Funds to Levelthe Broadband Playing FIeld

Market Trends

Of the nominally US$787 billion that makes up theAmerican Recovery and Reinvestment Act of 2009, less

than 1% has been directed to be used for funding a varietyof broadband initiatives throughout the U.S. Yet, it seemsthat the broadband subsidy funding has attracted muchmore than its fair share of attention with all types of projectsand proposals being floated and developed by entities largeand small across the country.

The U.S. Commerce Department’s NationalTelecommunicationsand InformationAdministration (NTIA)has been given $4.4billion to extendbroadband andwireless services torural, suburban andurban areas, whileanother $2.8 billiongoes to theDepartment ofAgriculture’s RuralUtilities Service (RUS)to expand broadbandaccess specifically to rural areas. Both agencies have beenseeking comments and developing timelines on how themonies should be spent and, completely unsurprisingly,there appears to be little consensus among the myriad ofinterested parties beyond each wanting a slice of the pie.

In its recently published “Broadband Satellite Markets 8thEdition” study, NSR projected uptake of what it calls singlesite satellite broadband Internet access subscribers in theNorth American market (U.S. plus Canada). This essentiallyequates to subscribers to the likes to HughesNet andWildBlue plus a smaller number of additional serviceproviders in the North American market. As can be seen fromthe below table, NSR projects that single site satellitebroadband subscribers in North America will reach some 2.9

million in 2018, up from about 885,000 in 2008. The Baselineforecast assumes satellite service providers will onlymoderately benefit from eventual stimulus monies. Shouldthe satellite sector be highly successful and the governmentundertakes a long-term effort in subsidizing any type ofbroadband service to rural areas such that subscribers canobtain metropolitan equivalent services, then NSR’s currentHigh Growth projections from the BBSM 8th Edition studycould well turn out to be too modest. Conversely, should thegovernment take a path that chooses one technology over

another and places moneymainly into infrastructureinvestments, then satellitebroadband serviceproviders could well beundercut due to theplaying field being tiltedagainst them, and the LowGrowth projects couldeven over-estimate marketdemand for the coming tenyears.

In summary, NSR clearlyfavors direct government

intervention that, among other policy alternatives, brings torural households and businesses in the U.S. broadbandservices that are equivalent in both price and true quality ofservice as is found in urban and suburban parts of thecountry. NSR does not believe that government agenciesshould get in the business of choosing one technology overanother and infrastructure investments, being they satellitesin space or wires in the ground or boxes on towers, should beavoided when it comes to addressing underserved markets.Instead, structuring a subsidy scheme that is open to allpotential service providers to tap into while at the same timesetting fair standards for service quality in order to offerconsumers who only have a single choice some measure ofprotection appears to NSR the best way to both create a levelplaying field and to allow the entire broadband industry thefreedom to choose how to best serve the market.

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Satellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive Briefing June 1-15, 20098

Market Trends

The number of broadband enabledairplanes will increase from 25 in

2008 to 800 in 2009, reports In-Stat. Asa result, broadband hungry airlinepassengers will generate over $49million worldwide in 2009. The in-flight broadband market is stillemerging and will grow well beyond$1 billion annually by 2012.

“The market is clearly gainingmomentum, with deploymentsescalating in number,” says DarylSchoolar, In-Stat analyst.“However, in-flight broadbandfaces challenges, however, by thestruggling economy and competingnon-traditional IFE solutions.”

Live broadcast video is also poised forsignificant growth in 2009. While thisservice is more established than in-flight broadband, usage revenues arestill anticipated to nearly double in

2009 and continue to grow stronglythrough 2013.

The report by In-Stat found thefollowing:

•In-flight broadband equipment revenuewill nearly double between 2009 and2013.

•Competing providers of include Aircell,Panasonic and Row44.

•In-Stat forecasts over 200 millionannual in-flight broadband connectsby 2013, with long-haul connectsdominating over short-haul connects.

•Connections from handheld deviceswill account for about 1/3 ofconnects, with notebook computersaccounting for 2/3.

The In-Stat research report , DelayedDeparture: Will In-FlightBroadband Take Off? covers themarket for next-generation in-flightentertainment (IFE), with a focus onin-flight broadband services.

For more information on this researchor to purchase it online, please visit:http://www.instat.com/catalog/mmcatalogue.asp?id=281

In-Filight Broadband Market to Grow to Over 1 Bil. by 2012

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Satellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive Briefing June 1-15, 2009 9

Cover Story

The sustainability of the military satellite market, which has formed a major part of revenues in the last few years for thecommercial satellite industry has come to question with a new administration in Washington, D.C. and the recentannouncement by the US Department of Defense (DoD) that it is cancelling its planned Transformational SatelliteSystem (TSAT). However, projections by research firm NSR reveals a robust market for years to come.

The Military/Government MarketThe Military/Government MarketThe Military/Government MarketThe Military/Government MarketThe Military/Government Market

Source: NSR (www.nsr.com) For more Vital Statistics go to: www.satellitemarkets.com/node/9

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Satellite Operators

AsiaSat 1135.HK 8.97 +0.31% 4.61-15.00 38.98%Eutelsat Communications ETL.PA 18.21 +5.45% 14.40-20.50 8.95%Hughes Communications Inc. HUGH 22.36 +1.80% 8.25-55.99 55.27%Inmarsat ISAT.L 522.50 +3.95% 300.00-585.00 14.90%SES SES.F 14.06 +3.49% 11.36-16.81 16.36%

Satellite and Component Manufacturers

Boeing BA 47.70 +4.16% 31.40-88.29 42.26%COM DEV International Ltd. CDV.TO 3.39 -0.94% 2.21-3.95 14.82%Lockheed Martin Corp. LMT 84.16 +5.03% 63.10 -120.30 30.04%Loral Space and Communications LORL 31.12 +2.75% 6.02- 31.12 8.13%Orbital Sciences Corp. ORB 14.73 +5.70% 13.60 -27.89 43.99%Ground Equipment Manufacturers

C-COM Satellite Systems Inc. CMI.V 0.32 +12.50% 0.15-0.50 4 20.00%Comtech Telecommunications Corp. CMTL 28.07 +5.62% 36.51-51.21 41.93%CPI International, Inc. CPII 12.20 +8.82% 5.07-16.02 23.85%EMS Technologies, Inc. ELMG 20.10 +6.67% 16.20-31.78 29.55%Viasat VSAT 25.91 +15.56% 15.10-28.07 7.70%Satellite Service Providers

Gilat Satellite Networks Ltd. GILT 3.64 +8.80% 2.17-11.20 67.50%Globecomm Systems Inc. GCOM 6.82 +1.47% 3.96-10.94 37.66%Internatinal Datacasting Corp. IDC.TO 0.29 -4.84% 0.15-0.69 39.80%ORBCOMM Inc. ORBC 1.66 +12.05% 1.22-6.87 75.80%Skyterra Communications SKYT.OB 2.79 +10.04% 3.55-8.85 68.47%Consumer Satellite ServicesBritish Sky Broadcasting Group BSY 29.50 +4.75% 19.90-46.30 31.00%The DIRECTV Group DTV 23.01 -1.38% 17.70-29.10 20.93%ECHOSTAR Communications DISH 16.93 +7.21% 8.34-36.11 52.62%Globalstar, Inc. GSAT 1.05 +25.72% 0.15-7.98 69.30%Sirius XM Radio Inc. SIRI 0.35 0.00% 0.05-3.89 87.27%

Company Name Symbol Price(June 1) 52-wk Range

% Change from52-wk High

The Satellite Markets 25 IndexTM

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

© 2009 Satellite Markets and Research, Satellite Executive Briefing and the Satellite Market IndexTM are trademarks of Synthesis Publications LLC. SynthesisPublications LLC is the owner of the trademark, service marks and copyrights related to the Index. This newsletter does not constitute an offer of an investmentproduct. Satellite Executive Briefing makes no representation regarding the advisability of investing based on the information provided in the Satellite MarketsIndexTM. All information is provided ‘as is’ for information purposes only and is not intenteded for trading purpose or advice. Neither Satellite Executive Briefingnor any related party is liable for any informational error, incompleteness or for any actions taken based on information contained herein.

Comparison of Indices Index value Percentage Change (June 1’09) 2-Weeks Ago Jan. 2 ’08Satellite Markets 25 IndexTM 897.64 3.89% 12.36%

S & P 500 942.87 6.37% 31.68%

% Change from2-Weeks Ago

Satellite Markets 25 IndexTM

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Satellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive Briefing June 1-15, 2009 11

Featured Event

SaSaSaSaSatellite Industrtellite Industrtellite Industrtellite Industrtellite Industry Fy Fy Fy Fy Forororororum 2009:um 2009:um 2009:um 2009:um 2009:SaSaSaSaSatcoms Ovtcoms Ovtcoms Ovtcoms Ovtcoms Over the Horer the Horer the Horer the Horer the Horizizizizizononononon

Four Seasons Hotel, SingaporeJune 15, 2009

For more information on the Satellite IndustryForum call: Tel: +852 2854 9913E-mail: [email protected]: www.casbaa.com/satellite_industry_forum.aspx

During the week of CommunicAsia in Singapore, the Cable & Satellite

Broadcasting Association of Asia(CASBAA) will hold the ninthCASBAA Satellite Industry Forum onMonday June 15th in at the FourSeasons Hotel. Key executives from the

satellite industry drawn from around the world will sharetheir insights and address issues for the Asia-Pacific market.

Themed “Over the Horizon”, the one day annual conferencewill cover critical issues including the future for satcomstechnology, the latest business models and the road toprofitability; how CEOs are coping withtoday’sfinancialchallenges; thepotentialbusinesses ofKa-bandsatellitesystems andsatelliteservices formobile users.

At the Forum,Rob Bednarek,CEO, SES NewSkies and MarkDankberg, Chairman & CEO, Viasat will deliver keynoteaddresses. Other featured speakers include:

- Vikram Kaushik, MD & CEO, TataSky

- Matteo Altobelli, Marketing Director, Eutelsat

- David Ball, Chairman, CASBAA Satellite IndustryCommittee & Regional VP, AP, Intelsat

- Jay Yass, VP, Business Development, Strategy andGlobal Marketing, Intelsat

- Rudy Tanoesoedibjo, CEO & President, IndovisionIndonesia

- Serge van Herck, CEO, Newtec

- Gregg Daffner, President, G3 GlobalCommunications

- Anthony Colucci, VP Marketing and Sales, SpaceSystems Loral

- Andrew Jordan, President and CEO, SAT-GE

-Tom Choi, CEO, Asia Broadcast Satellite

- Peter Jackson, CEO, AsiaSat

“The new demand for spectrum devoted toHDTV, interactive and broadband TVcontent is driving the market. Theopportunities, for both FSS and DTH,are enormous,” said Simon TwistonDavies, CEO of CASBAA. “On top ofthis, the industry also expects to seenew demand emerging from stillundeveloped video services such asmobile TV and the further deploymentof VSAT networks.”

The CASBAA Satellite Industry Forum 2009 is sponsored byArianespace.

Keynote addresses will be given by from left:Houlin Zhao, Deputy Secretary-General, ITU;Huang Bao Zhong, VP, DBSAT, China; RobBednarek, CEO, SES New Skies and MarkDankberg, Chairman & CEO, Viasat.

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