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SHOW DAILY DAY 1 ❱❱ MONDAY ❱❱ 03.14.11 Investors Still Find Safety in Satellite Beginning to Look for Growth Opportunities The satellite industry remains enterprise demand for anytime, BY MARK HOLMES www.arianespace.com

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SHOW DAILYDAY 1 MONDAY 03. 14. 11Investors Still Find Safety in SatelliteBeginning to Look for Growth OpportunitiesThe satellite industry remains popular among technology/media ana-lysts at investment banks, and satellite stocks in Europe and North America remain popular with analysts. Chris Quilty, a satellite equity analyst at Raymond James, believes that the overall satellite industry held up well. The satellite industry performed well in 2010, experiencing only marginal impact from the global financial crisis that began in 2008. As expected, the FSS industry delivered consistent mid-single-digit growth, powered by consumer demand for video and wireless services as well as an acceleration of demand for mobile satellite services. Speaking to this latter point, the MSS industry also performed well and appears poised for strong growth in the next several years, driven by new product cycles (maritime VSAT, aero broadband and satellite-based M2M) and growing consumer/enterprise demand for anytime, anywhere connectivity. Satellite manufacturers and launch providers also maintained a brisk order and delivery rate in 2010, but the outlook for those sectors is somewhat clouded by potential spending cuts by the FSS sector and new launch capacity becom-ing available, Quilty said. Ground equip-ment providers rebounded from a period of soft commercial spending, but U.S. government budget issues could pres-ent problems for vendors who serve the defense sector, he said.Eric Beaudet, a satellite equity ana-lyst at Natixis Securities who covers both SES and Eutelsat, says the satel-lite industry remains a save haven for investors. We have seen their EBITDAs stay relatively stable over the last few years as well as consistent revenue growth. We have clearly [moved] above 5 percent EBITDA margin growth in the medium term. In a portfolio, you want to have some stocks that grow 5 to 10 per-cent a year in pretty much every given year with dividends of 3 to 4 percent, so overall, for any portfolio manager, they are very good defensive stocks to have in your portfolio. It wont give you the 30-plus percent growth that an Alcatel or a Technicolor can give you, but [FSS players] constant 5 to 10 percent growth plus dividends with visibility, he says.United StatesRichard Valera, a technology equity ana-lyst at Needham Research who covers companies such as ViaSat and Comtech, also believes that satellite stocks remain attractive to investors. I think there have been perceptions in the past that ubiquitous wireline broadband was going to obsolete satellite, Valera says. I dont think that is true at all. There are too many situations where wires arent page 8 MONDAY | DAY 1 | PAGE 1BY MARK HOLMESVS_2011_ShowDaily_Template.indd 1 2/28/11 7:16:07 PMwww.arianespace.com www.arianespace.comVS_ShowDaily_Day1_Imirus_Cover.indd 1 3/8/11 3:53:18 PMwww.arianespace.comArianespace salutes Ms. Petra Mateos for her exemplary leadership and vision as Chairwoman of Hispasat. Congratulations on being selected Via Satellites Satellite Executive of the Year 2010! We are proud to have launched six satellites in Hispasats fleet serving a diverse customer base.On February 16th we marked our historic 200th Ariane Mission that notched our 42nd success in a row for Ariane 5. With the worlds best operational team and family of three launch vehicles, we continue to set the industrys benchmark for reliable access to space.In 2011 we are targeting twelve missions in total. These include six with our heavy-lift Ariane 5, five with the workhorse Soyuz from both Baikonur and the Guiana Space Center, and the inaugural flight of the Vega light launch vehicle. We look forward to launching your next satellite.Jean-Yves Le Gall Arianespace Chairman & CEOArianespaceCoverWrap.indd 2 3/8/11 2:27:59 PMSHOW DAILYDAY 1 MONDAY 03. 14. 11Investors Still Find Safety in SatelliteBeginning to Look for Growth OpportunitiesThe satellite industry remains popular among technology/media ana-lysts at investment banks, and satellite stocks in Europe and North America remain popular with analysts. Chris Quilty, a satellite equity analyst at Raymond James, believes that the overall satellite industry held up well. The satellite industry performed well in 2010, experiencing only marginal impact from the global financial crisis that began in 2008. As expected, the FSS industry delivered consistent mid-single-digit growth, powered by consumer demand for video and wireless services as well as an acceleration of demand for mobile satellite services. Speaking to this latter point, the MSS industry also performed well and appears poised for strong growth in the next several years, driven by new product cycles (maritime VSAT, aero broadband and satellite-based M2M) and growing consumer/enterprise demand for anytime, anywhere connectivity. Satellite manufacturers and launch providers also maintained a brisk order and delivery rate in 2010, but the outlook for those sectors is somewhat clouded by potential spending cuts by the FSS sector and new launch capacity becom-ing available, Quilty said. Ground equip-ment providers rebounded from a period of soft commercial spending, but U.S. government budget issues could pres-ent problems for vendors who serve the defense sector, he said.Eric Beaudet, a satellite equity ana-lyst at Natixis Securities who covers both SES and Eutelsat, says the satel-lite industry remains a save haven for investors. We have seen their EBITDAs stay relatively stable over the last few years as well as consistent revenue growth. We have clearly [moved] above 5 percent EBITDA margin growth in the medium term. In a portfolio, you want to have some stocks that grow 5 to 10 per-cent a year in pretty much every given year with dividends of 3 to 4 percent, so overall, for any portfolio manager, they are very good defensive stocks to have in your portfolio. It wont give you the 30-plus percent growth that an Alcatel or a Technicolor can give you, but [FSS players] constant 5 to 10 percent growth plus dividends with visibility, he says.United StatesRichard Valera, a technology equity ana-lyst at Needham Research who covers companies such as ViaSat and Comtech, also believes that satellite stocks remain attractive to investors. I think there have been perceptions in the past that ubiquitous wireline broadband was going to obsolete satellite, Valera says. I dont think that is true at all. There are too many situations where wires arent page 8 MONDAY | DAY 1 | PAGE 1BY MARK HOLMESVS_SAT11_ShowDaily_Day1.indd 1 3/3/11 5:28:38 PMSpacecom is expanding coverage to the farthest reaches of Africa with the launch of the AMOS-5 satellite in the third quarter of 2011.Located at the 17E orbital position, the AMOS-5 satellite will offer enhanced capabilities, expanded coverage areas and high-power C-band and Ku-band capacity throughout the African continent. Spacecom has long served the U.S. DoD through its systems integrator partners. And, thanks to the AMOS-5 satellite, we will soon be able to meet the burgeoning satellite connectivity needs of a variety of fast growing vertical markets across Africa like the oil and gas industry. Additionally, Spacecom serves Direct-To-Home (DTH) platforms in Europe and the Middle East, TV broadcasters and programmers, government organizations, VSAT service providers and telephony operators. With AMOS-2 and AMOS-3 at the 4W orbital Hot Spot for European and Middle Eastern coverage, AMOS-4 launching in 2012 to serve Asia, and AMOS-6 in 2014, the AMOS satellite eet is perfectly positioned for performance.Pan-African C-band and Ku-band capacity on AMOS-5 is now selling. Contact us to nd out more.The AMOS-5 Satellite is Coming to Africas p a c e t o e x p a n d17E4234364438404420 10EIRP Contours (dBW)Visit us at: Satellite 2011 March 15 17 Washington, DC Booth #675For additional information visit: www.amos-spacecom.com or contact us at: Int. Tel: +972.3.755.1000, U.S. Tel: 1.212.920.8868 Email: [email protected] The AMOS-5 Satellite is Coming to Africa17E4234364438404420 10EIRP Contours (dBW)delivering X-band to the power of X xtar.comHigh-Powered, Mission Critical SATCOMSHigh-powered global, fixed and steerable spot beams. On-board switching for operational flexibility. XTAR delivers X-band capacity to the most demanding, mission-critical areas of operation. Anywhere. Anytime.XTARs NSA-approved command-link encryption and Status of Forces agreements enable faster host nation approvals. Fully compatible with WGS and DoD X-band terminals. XTAR, LLC. All rights reserved.PAGE 4 | DAY 1 | MONDAY PAGE 4|DAY 1|MONDAYSHOW DAILYWelcome to the SATELLITE 2011 pre-day, where we will launch our celebration of 30 years of the SATEL-LITE show by focusing on where the sector will go next.The pre-day schedule will look at some of the futures most press-ing issues, beginning with the return of the must-attend Satellite Finance Forum. Satellite sector analysts and experts from throughout the financial sector will look at current economic issues and their potential impact on satellite companies and their markets.The Satellite Finance Forum begins with a look at the Financial State of the Industry, where experts will provide analysis of the market today and provide projections related to the satellite sectors future. The Investment Bankers Panel will dis-cuss how satellite companies are coping with credit issues and market uncertainty and strategies for navi-gating the market.For a perspective from inside the satellite sector, check out Future Financial Investments, where CFOs from the globes largest satellite oper-ators will discuss where they may spending their money next, and the CEO Roundtable will gather execu-tives from different satellite niches to discuss the common issues they all face and how to solve them.The Engineering Forum returns for a second year, providing the more technically minded members of the satellite community a chance to dis-cuss their challenges today and in the future. A CTO Roundtable Break-fast will kick off the track, followed by a discussion focused on interfer-ence issues, quality of service, IPv6 compliance, engineering in extreme conditions and network security.Edward Horowitz, director, U.S. Space, will be the luncheon keynote speaker and discuss how satel-lite players have responded to the technological innovations that have forced the sector to adapt throughout its history. And after a day of discussing where the satellite sector is headed, please join us for the SATELLITE 2011 30th Anniversary Party on the L Street Bridge to help us celebrate all that satellite has accomplished. Editorial 301/354-2000 JASON BATES, Editor, ext. 1807 MARK HOLMES, Associate EditorJULIE BLONDEAU SAMUEL, Director, Satellite & Cable Online, ext. 1770JEFFREY HILL, News Editor, ext. 1805JENNIFER NEWMAN, CopyeditorContributing WritersSAM SILVERSTEINGREG BERLOCHERDesign/Production VINCE LIM, Senior Graphic DesignerSOPHIE CHAN-WOOD, Production Manager301/354-1671Conference ServicesJENN HEINOLD, Show Director, ext. 1813MICHAEL CASSINELLI, Exhibit Sales Manager, ext. 1691LINDSEY FULLER, Marketing Manager, ext. 1778Audience DevelopmentGEORGE SEVERINE, Fulfillment DirectorClient ServicesREPRINTS: Wright [email protected] SALES: JEN FELLING, [email protected]/778-8700CUSTOMER SERVICE: 847/559-7314JANIS DAVIS, Advertising Support301/354-1768MarketingJILL BRAUN, Senior Marketing Manager, Via SatelliteAccess Intelligence, LLCDON PAZOUR, Chief Executive OfficerED PINEDO, Exec. Vice President & Chief Financial OfficerHEATHER FARLEY, Divisional President, Business Information GroupMACY L. FECTO, Exec. Vice President, Human Resources & AdministrationJOE ROSONE, Vice President, Group PublisherJOE MILROY, Associate Publisher SYLVIA SIERRA, Senior Vice President, Corporate Audience DevelopmentMICHAEL KRAUS, Vice President of Production and ManufacturingROBERT PACIOREK, Senior Vice President &Chief Information OfficerSTEVE BARBER, Vice President Financial Planning and Internal AuditSubscribe to Via Satellite digitally at www.viasatellite.comPrinted in U.S.A.4 Choke Cherry Rd., 2nd FloorRockville, MD 20850Phone: 301/354-2000, Fax: 301/340-3169Email: [email protected]: www.satellitetoday.comSATELLITE 2011:Where Will Satellite Be in 30 YearsPAGE 6 | DAY 1 | MONDAY PAGE 6|DAY 1|MONDAYSHOW DAILYSchedule of Events At-A-GlanceMonday, March 14, 2011 (Pre-Conference Program)Start Time End Time Room Session7:30 AM 7:00 PM Grand Lobby Registration Hours7:30 AM 9:00 AM Rise-n-Shine Coffee Service12:00 PM 1:30 PM 202Keynote Luncheon: Decade of Disruption Ushers in Era of Opportunity5:30 PM 7:30 PM L St. Bridge SATELLITE 2011 30th Anniversary PartyWORKSHOPS8:30 AM 5:30 PM 143B IP Networking over Satellite8:30 AM 5:30 PM 209A Communications via Satellite: The Basics8:30 AM 5:30 PM 143C Launch Services for Satellite Operators8:30 AM 5:30 PM 143A GVF Presents: Emerging Applications SeriesSATELLITE FINANCE FORUM9:00 AM 9:15 AM 207A Satellite Finance Forum Welcome and Opening Comments9:15 AM 10:00 AM 207A Financial State of the Industry Market Trends and Observations10:30 AM 11:45 AM 207AThe Investment Bankers Panel: Financing Solutions for the Economic Rebound1:30 PM 2:45 PM 207A Future Financial Investments - Where Will the Money Be Going Next?3:15 PM 4:15 PM 207A Balancing Technical and Financial Risk4:15 PM 5:30 PM 207A CEO Roundtable: Similar Challenges, Different MarketsENGINEERING 20117:30 AM 8:30 AM 209B CTO Roundtable Breakfast: Technology Leaders9:00 AM 10:00 AM 207B Satellites Costly Nemesis10:30 AM 11:45 AM 207B Quality of Service: Best Practices You Can Implement Today1:30 PM 2:45 PM 207B IPv6: Compliance by 20123:15 PM 4:15 PM 207B Satellite Engineering in Extreme Conditions4:15 PM 5:30 PM 207B Network SecurityPAGE 8 | DAY 1 | MONDAY PAGE 8|DAY 1|MONDAYSHOW DAILYTHE DI FFERENCE BETWEEN ORDINARYAND EXTRAORDINARY.TIME TO WARN OF MASSIVE IMPENDING STORM SYSTEM www. i nteg. comTHE INTEGRAL DIFFERENCECOMMAND+ CONTROLENTERPRISENETWORK MGMT.SIGNAL PROCESSING+ DATA COMM.COMM. INFOASSURANCESERVICESdeployed. In regions like the Middle East, satellite is often the primary mode of com-munication for U.S. and allied militaries in many areas. I think, generally speaking, the demand for satellites remain healthy. The companies that participate in the market both from a service and infrastruc-ture point of view are going to see ups and downs depend-ing on what programs they are on as well as things like budgetary funding. I do think satellite is still a very viable technology and will remain in high demand for a long time.Along with providing the steady returns, Quilty thinks the satellite sector offers investors a moneymaking opportunity with satellite broadband. Long viewed as an option of last resort, satellite broadband technol-ogy is on the cusp of a major technological revolution that promises to drive double-digit growth over the next five to 10 years, he says. The key tech-nology underlying this trans-formation is the emergence of high throughput satellites such as those being devel-oped by ViaSat (ViaSat-1) and Hughes (Jupiter). In effect, these satellites are expected to deliver a 100-fold through-put yield as compared to tradi-tional Ku-band services, thus allowing service providers to significantly improve cus-tomer download speeds while concurrently slashing the cost of delivering these services from an estimate $30 per sub per month to as little as $1 per subscriber, he says.Valera believes EchoStars acquisition of Hughes could have an impact. The dynam-ics could have been changed pretty significantly, because you now potentially have Charlie Ergen owning Hughes, and he has the potential to use his Dish Network distribution channel to drive the Hughes consumer broadband busi-ness. We think that would be positive for Hughes, but at the margin, negative for ViaSat. Dish Network was one of their distribution partners. If Dish leaves ViaSat and does distrib-ute Hughes, it makes Hughes a more potent competitor than they would have been if they had maintained their largely retail strategy.EuropeEutelsat and SES remain solid picks in Europe, says Fabio Fazzari, a satellite equity analyst at Italys Equita Sim. SES and Eutelsat invested a lot in the past two years to grow their position in many developing markets and have increased capac-ity. They have seen a strong demand for capacity linked to technological innovations like HD. The satellite industry was the only one reporting revenues growth at mid-single-digit level in organic terms during the past two years thanks to the long-term contracts they have and the fact that the service they sell is not linked to consumer trends.Fazzari agrees with Beaudet that the investment banks have a good overall perception of the industry. The investment bank commu-nity has a very good percep-tion (of satellite operators), because they generate a lot of cash. For this part of busi-ness, the only risk is linked to launch delays or failures, which represent a postpone-ment in revenues. During the economic crisis, investors gravitated towards satellite stocks. It was actually very attractive sector during the crisis for investors. It was seen as a defensive sector. Long-term contracts were signed, and really, the most beneficial effect was the low price of broadcasting for pay-TV. In the downturn, pay-TV operators cut many things, such as their marketing costs and set-top box subsidies before reducing their offer-ing. It was seen as a very attractive sector over the last few years, says Beaudet. However, as economies around the world begin to pick up, investors perhaps are looking for riskier stocks outside the satellite sector. Over the past few months, we havent seen such great stock performance from SES, Eutelsat and even Inmarsat. That is because the appetite for risk has slightly increased in the market, says Beaudet, who believes the moves in Ka-band and data services will be risks for SES and Eutelsat. The main risk is that they are diversifying into Ka-band. Eutelsat has invested into a dedicated Ka-band satellite, and SES has invested into O3b Networks. That is the real next challenge for the different companies. There will be some blur-ring between medium-orbit satellites like O3b and some mobile satellite operators like Inmarsat, and Ka-band will see an intensifying of compe-tition through different actors and players from sectors that were separate until today. It is going to be interesting to see who will be the most aggressive and opportunistic and grab the new possibilities of Ka-band. That is the next uncertainty and the big chal-lenge for the groups.Inmarsats move towards Ka-band did take him by surprise, Beaudet says. The group had finished launching a new Ku-band constellation just two years ago that had added a lot of capacity, and is still has a fill rate of 20 percent or less. Everyone saw Inmar-sat as having a lot of free capacity, so having a highway of growth over the next two years. Launching a new Ka-band constellation was a big surprise. At the same time, it does underline that they see a really big need in the capac-ity, he says. page 1 THE DI FFERENCE BETWEEN ORDINARYAND EXTRAORDINARY.TIME TO WARN OF MASSIVE IMPENDING STORM SYSTEM www. i nteg. comDark clouds on the horizon can either mean impending massive disaster or a coordinated effort to avert tragedy. The difference is Integral. We provide complete solutions for government, military, intelligence and commercial networks. For 30 years, Integral Systems and its family of companies have worked closelywith its customers to solve their complex communications challenges. Thats what makes us Integral to safety, security and success. Thats the Integral Difference.THE INTEGRAL DIFFERENCECOMMAND+ CONTROLENTERPRISENETWORK MGMT.SIGNAL PROCESSING+ DATA COMM.COMM. INFOASSURANCESERVICESTHE INTEGRAL SYSTEMS FAMILY OF SOLUTION PROVIDERS.Visit us at Booth #557 at the 2011 SATELLITE Conference being held at the Walter E. Washington Convention Center, March 15-17.PAGE 10 | DAY 1 | MONDAY PAGE 10|DAY 1|MONDAYSHOW DAILYAs a regional operator work-ing in both Europe and Latin America, Hispasat Chair-woman Petra Meteos pro-vides a textbook example on how a smaller satellite operator can expand its reach and build a business.Hispasat will once again see growth in both rev-enues and profits for fiscal year 2010, continuing a trend of strong increases in all key financial met-rics over the past several years. In 2009, the operator saw profits increase by 50 percent compared to 2008, and the regional players profits doubled between 2007 and 2009. Hispasats growth has been based, in part, on making great strides in Latin America, securing good transponder fill rates for both its Amazonas-1 and Amazonas-2 satellites. The operator signed contracts for capacity in Latin America with companies such as Spain-based Telefonica, which provides services in Spain and Latin America, and Brazils Petrobras. The majority of the capacity on the Amazonas-2 satellite, placed in orbit in October 2009, already has been sold, giving Hispasat an even stronger position in markets such as the United States and Mexico. At the end of 2009, more than 30 percent of Hispasats overall revenues were derived from the Americas.The company ended the year with the launch of its Hispasat 1E satellite, the second of five spacecraft that form the basis of His-pasats latest growth planHispasat also was selected in 2010 by NASA to participate in the hurricane research mis-sion, Genesis and Rapid Intensification Processes, intended to better under-stand how tropical storms form and then develop into hurricanes.Due to Mateoss astute leadership, Hispasats growth curve shows no signs of slowing, and with strong positions in both Latin America and Europe, it is an operator on the rise.Under CEO Matt Desch, Iridiums total revenue improved in all four quar-ters of 2010, and the MSS company reported full-year revenue of $353 million, up from $319 million in 2009. In addition, Iridium grew its total billable subscriber base by 25 percent during the year to nearly 450,000 users and strengthened each of its business sectors. Government service rev-enues grew by 10.7 percent, commercial services by 14.7 percent and subscriber equipment by 9 percent. Iridiums total sales grew 10.6 percent on average.Besides boosting revenues, strengthening its global partnership networks and rolling out a slew of new products, Deschs main objective and challenge in 2010 was to plan for the operators next-generation offering Iridium Next at a time when financing ambitious projects was difficult. Because of ILS_Daily_Ad_mch.indd 1 2/16/11 3:32 PMSatellite Executive of the Year 2010The Nominees are...BY JASON BATES, MARK HOLMES, JEFF HILLPetra Mateos, Chairwoman, HispasatMatt Desch, CEO, IridiumVISIT US AT BOOTH #533 VISIT OUR NEW WEB SITE www.ilslaunch.comExperience ILS: Achieve Your MissionQUALITY | PERFORMANCE | EXPERIENCE | DEDICATIONCreating ValueThe success of ILS since our rst launch 15 years ago is a testament to our partnership with Khrunichev, the performance of the Proton vehicle and our ability to deliver value to our customers. We know how to adapt to changing environments and stay competitive by creating real value for customers. Thats why industry veterans and new entrants alike count on ILS Proton.ILS_Daily_Ad_mch.indd 1 2/16/11 3:32 PMwww.arianespace.comAr i anespaces l aunch compl ex i s l ocat ed wi t hi n NATO territory and has the highest level of protection to safeguard national security payloads. To date, 34 military observation, communi cat i ons and i nt el l i gence sat el l i t es have been o r b i t e d f r o m t h e Sp a c e p o r t a b o a r d Ar i a n e v e h i cl e s .SECUREPAGE 12 | DAY 1 | MONDAY PAGE 12|DAY 1|MONDAYSHOW DAILYNeil Gaydon, CEO, PacePace has emerged over the last few years as the new force within the set-top box market, and Neil Gaydon, who became CEO in 2006, is the man behind the companys surge. Pace works with cable, IPTV and terrestrial pay-TV operators but is particularly strong in the satellite field, working with operators such as BSkyB (United Kingdom), DirecTV (United States), Sky Deutschland (Germa-ny), Astro (Malaysia) and Viasat (Nordics). In 2010, Pace also secured con-tracts with MultiChoice (Africa), among others, to cement its position in the satellite market.In the first half of 2010, Pace saw profits before tax grow 40 percent com-pared to the same period in 2009, with revenues growing more than 20 percent to $989.5 mil-lion. Pace shipped nearly 10 million set-top boxes in this period, another double-digit percentage increase compared to the previous year. Much of this growth can be attributed to Paces suc-cess in cracking the U.S. market, always a major test for an aspiring Euro-pean technology company. At the end of June, Pace derived $357.6 million in revenues from the North American market due to its relationship with opera-tors such as DirecTV and Comcast. Pace also aims to be at the forefront in bringing cutting-edge technologies to the set-top box market. In June, the company became a member of the Wi-Fi Alliance, as Pace looks to incorporate Wi-Fi technology into select set-top boxes.Pace also has expanded its offerings in 2010 through acquisitions. In North America, Pace acquired 2Wire, adding services such as resi-dential gateways, multi-service media platforms, remote management sys-tems, value-added servic-es, customer support and end-to-end integration and professional services. In Europe, Pace announced it would acquire French company Bewan Systems. Bewans residential gate-way capabilities includ-ing expertise in xDSL and cable DOCSIS 3.0 IP con-nectivity technologies will combine with Paces existing gateway business, enabling Pace to offer con-verged gateway and digital TV solutions to pay-TV customers. Pace is seen as one of the U.Ks finest technol-ogy companies and in April, the company won a Queens Award for interna-tional trade as recognition for Paces success in inter-national markets, the third year in a row that Pace had won such an award.the economic climate, some analysts wrote off Iridium Next as unrealistic and too expensive, but the satellite operator secured and closed a $1.8 billion financing facility with a consortium of international investors led by credit export agency Coface. The deal put Iridiums full-scale system development contract with Thales Alenia Space and a launch contract with SpaceX into effect and opened the door for two long-term agreements that designate Boeing as Iridiums sole operations and maintenance provider for the current constellation as well as granted Boeing exclusive operations and maintenance rights for the Iridium Next constellation.Desch also led efforts to set up Iridium South Africa, an entity that will allow Iridium to operate, provide and sell mobile services in the country, where Iridium anticipates opportunities for more than 200 global distribution partners to form partnerships to deliver services in the South Africa. The company also won three contracts from the U.S. Department of Defenses Defense Infor-mation Systems Agency to upgrade the Enhanced Mobile Satellite Service Gateway in Hawaii. With the upgrades, Iridium is building in enhancements that support migration toward Iridium Next.The way we see it, you shouldnt be forced to invest in and manage two separate technology platforms to support your customers. Now iDirects new iDX 3.0 software brings TDMA and SCPC together for the irst time on one platform.You gain the adaptability to support every application most eiciently. And more scalability to grow your network on demand. Building on the power of the industry-leading Evolution platform, iDX 3.0 is loaded with all the abilities you need to thrive in any industry, any network coniguration. No more tradeofs, more choices. See for yourself. Visit idirect.net/ability or call +1.703.648.8000 to learn more.affordABILITYprotABILITY adaptABILITY manageABILITYavailABILITYreliABILITY sustainABILITYscaleABILITY visABILITYexpandABILITYexABILITY See us at Satellite 2011, Booth 709PAGE 14 | DAY 1 | MONDAY PAGE 14|DAY 1|MONDAYSHOW DAILYHISPASAT corporativo 15-2-11.indd 1 16/02/11 17:41Reynald Seznec, CEO, Thales Alenia Space Thales Alenia Space posted a strong 2010 under CEO Reynald Seznec, winning 12 satellite manufacturing con-tracts along with adding to its capabilities via acquisitions.Thales reported 1.13 billion euros ($1.46 bil-lion) in orders in 2010, a 39 percent increase over the same period in 2009. Thales captured four commercial geostationary communica-tions spacecraft orders W6A and W3D from Eutelsat, Apstar 7B for APT Satellite Holding and Arsat 2 for Argentinas Arsat. The four contracts trailed only Boeing and Space Systems/Loral, which captured five contracts apiece. Thales also captured contracts for the Jason-3, Athena-Fidus, Mete-osat Third Generation (with partner OHB Technology) and Sicral 2 contracts from various government entities as well as awards to develop payloads for the U.S. Navys Geosat Follow-On 2 satellite and for three RSCC commu-nications satellites.Where Thales has taken a commanding lead on its com-petitors is in the low-Earth orbit sector. During 2010, the company completed and delivered the first six of the 48 Globalstar second-gen-eration satellites it is manu-facturing and also finalized its $2.2 billion contract with Iridium to design and build 81 Iridium Next spacecraft.Thales received a Galileo System Support contract from the European Com-mission, one of six con-tracts for the Galileo sys-tem. Under the agreement, Thales Alenia Space Italia will perform overall system design, system security design, system integration, verification and in-orbit validation for Europes sat-ellite navigation system.Thales also boosted its capabilities via acquisitions, including the purchase of SESO, a precision-optics manufacturer, that augment-ed Thales ability to produce satellite optical sensors.Through the first three quarters of 2010, Thales recorded revenue of 3.72 bil-lion euros ($4.79 billion), a 7 percent increase from the same period in 2009. Elon Musk, CEO, CTO, SpaceXAlong with performing two key test launches of the Fal-con 9 heavy-lift launch vehi-cle, SpaceX CEO and CTO Elon Musk added $2.5 billion in business to the companys launch manifest during 2010, raising the fledgling launch providers total manifest from 25 to more than 40 missions. Among those orders was a commercial launch deal with Iridium that SpaceX claims is the largest in history.In June, SpaceX per-formed the first test launch of its Falcon 9 rocket from Space Launch Complex 40 at Cape Canaveral. SpaceXs accomplishment boosted NASAs confidence in the vehicle and put the company a step closer to providing cargo services to the International Space Sta-tion under the multibillion-dollar Commercial Orbital Transportation Services (COTS) contract. In December, SpaceX became the first commer-cial operation in history to re-enter a spacecraft from Earth orbit, lofting its Drag-on spacecraft into orbit atop a Falcon 9 rocket and then returning the vehicle and landing it less than a mile from the center of the target-ed landing zone in the Pacif-ic Ocean, bringing national attention to the future of the U.S. space program that could rely more heavily on commercially provided services. Previously, recov-ering a spacecraft that had re-entered from low-Earth orbit had been performed by only the United States, Rus-sia, China, Japan, India and the European Space Agency.The highlight of SpaceXs commercial launch wins in 2010 was a $492 million con-tract with Iridium to place part of satellite operators Iridium Next constellation in orbit via multiple Falcon 9 missions scheduled to take place between 2015 and 2017. SpaceX also added commercial con-tracts to perform missions for Israels Space Communi-cation Ltd., Space Systems/Loral and Taiwans National Space Organization. SpaceX also raised $50 mil-lion in additional funding from investors and, in September, unveiled a commercial agree-ment with Astrium to provide dedicated launch services to the European institutional small satellite market using the Falcon 1 rocket.Leader in DTH platforms in Spanish and Portuguese marketswww.hispasat.esExcellence in providing satellite capacity for government, video, broadband and corporate applications.Amerhis platform, the first OBP over the Americas.New space capacities over America, Europe and Africa.HISPASAT corporativo 15-2-11.indd 1 16/02/11 17:41PAGE 16 | DAY 1 | MONDAYPAGE 16|DAY 1|MONDAYSHOW DAILYEXHIBIT HALL FLOOR PLAN (AS OF 02.22.11)ConcealFabCorborationAzureShineInternationalInc.SatvisionTechnologyInternationalBrandywineCommunicationsBairdSatelliteSupportsFTGCorp.356Chenadu ACTiScience &TechnologyDevelopmentCo.954MONDAY | DAY 1 | PAGE 17Maryland ofOpportunity(State of Maryland)Science andTechnologyCenter inUkraineClydeSpaceLTDLPTechnologiesInc.AvantiCommunicationsNGN EasySatnder(Tianjin)Electronic Co. ,Ltd.DowKeyMicrowaveTerrasatCommu-nicationsStarlingAdvancedCommunicationsCrane Aerospace& ElectronicsInterpoint Brand980DefenseNews MediaGroup884BSCFilters Ltd.992NoiseComWTGSurfaceHeatingSystems(Kirkaldy) Ltd.896 8978991903Thrane &Thrane181SGSQ(A StratosCo.)17613041308MicroAnt Inc.1816MicrowaveFilterCompany, Inc.1714XTAR LLC1718DiamondAntenna&Microwave Corp.1410AdvancedSwitchedTechnology(AST)1212SpartonDefense& SecuritySystems1814DTAS.A.1717Wuxi HuaxinRadarEngineeringCo., Ltd.1925MatysSatcomLtd.PAGE 18 | DAY 1 | MONDAY PAGE 18|DAY 1|MONDAYSHOW DAILYCONF E RE NCE F L OOR P L A NCONFERENCE ROOMS BALLROOMSENTRANCE(LOWER LEVEL)TO EXHIBIT HALLTO REGISTRATIONLEVEL 2BALCONY BALCONY BALCONY BALCONYREGISTRATIONSHOW MANAGEMENTENTRANCE()ENTRANCE(LEVEL 1)TO LEVEL 2TO LEVEL 2LEVEL 3LEVEL 1LEVEL 2LEVEL 3REGISTRATION AND CONFERENCE ROOMSwww.ses.comWe are launching our largest ever satellite to bring vital expansion capacity to our customers across Latin America, Africa, Europe and the Middle East from 338 East.The state-of-the-art SES-4 hybrid satellite is just one element of our bold ve-spacecraft expansion plan for 2011.SES-4 delivers the capacity boost that our customers need to respond to the surge in demand for DTH, corporate, broadband and mobile services in the worlds most dynamic markets.At SES WORLD SKIES, we know what our customers require to gain future advantage and we have the capacity to provide it.expanding our capacityextending your advantagePAGE 20 | DAY 1 | MONDAY PAGE 20|DAY 1|MONDAYSHOW DAILYE X H I B I T O R L I S T ( A S O F 0 2 . 2 2 . 1 1 )COMPANY BOOTHA1 Microwave 1726AAE Systems, Inc. 663Access Intelligence 1100Accubeat Ltd. 1908ACORDE 1603Actipass Co. LTD 1910Actox Corporation 1613Adtec Digital 1124Advanced Cooling Technologies 990Advanced Microwave Components 940Advanced Switch Technology 1410Advantech Wireless 301AeroAntenna Technology, Inc. 1300AeroSat 1513Aerospace Corporation (The) 591Alcatel Lucent 1402Alga Microwave Inc. 936Alico Systems Inc. 298Allot Communications 363Ameripack Inc. 1806Amos - Spacecom 675Amplus Communication Pte Ltd. 1209AnaCom Inc 341ANRITSU COMPANY 1227Antcom Corporation 989Antenna Research Associates 1217Apexsat GmbH 1302Apollo Microwaves Ltd 361Applied Instruments Inc. 945Arianespace 300Arqiva 699ARTEL Inc. 543ASC Signal Corporation 347ASI - Agenzia Spaziale Italiana 1829ATCI 651ATK 324Avanti Communications 1113AVCOM of Virginia, Inc. 352AvL Technologies 449Ayecka Communication Systems Ltd. 1427Azure Shine International Inc. 841Baird Satellite Supports 943Belcom Microwaves Ltd. 978Bliley Technologies Inc 913Boeing Company 609Brandywine Communications 346BSC Filters Ltd. 992CapRock Communications 809Castor Networks 1224C-Com Satellite Systems 672Chengdu ACTi Science and Technology Development Co 954China Sun Communication Group Limited 1406ClearanceJobs 1206Clyde Space LTD 1226COBHAM 522Codan Satcom/Locus Microwave 669Coffee Break 1114COM DEV International 955Comcast Media Center 1418COMMTACT 1311Communications & Power Industries (CPI) 801Comtech Mobile Datacom 288Comtech Telecommunications 600ConcealFab Corporation 901Crane Aerospace & Electronics 980Cross Technologies, Inc. 921Crystal Solutions 480Cyber Cafe 1401Datum Systems Inc. 1901DAWNco Inc. 1815dBm 781Defense News Media Group 884Defense Systems 1126Delta Microwave 1710DEV Systemtechnik 1809DH Satellite 793Diamond Antenna & Microwave Corp. 1718DiTom Microwave, Inc. 1807Dow - Key Microwave 1304DRS Defense Solutions 845DTA SA 1814EADS Astrium 433EchoStar 755Elbit Systems - Shiron Satellite 292ELTA Systems Ltd. 1325EM Research, Inc 1724EM Solutions 947EMCORE Ortel 687Emerging Markets Communications 477EMS Technologies, Inc. 369Encompass Digital Media, Inc. 925Environmental Technology, Inc. 1719Ericsson 579ETL Systems 596Eutelsat America Corp. 761Evertz Microsystems Ltd. 556Expand Networks 996FEI - Zyfer, Inc. 939Filtel Microwave 956Finisar Corporation 1720Florida RF Labs/EMC Technology 1419Foxcom 762FTG Corp. 356Futron Corporation 365GATR Technologies 1624GE Satellite 861General Dynamics SATCOM Technologies 309Geosync Microwave, Inc. 938Gigasat 681Glenair, Inc. 1105Global Crossing 1927Global Invacom 460Global Satellite 1220Globe Wireless 183Globecomm 567Glowlink Communications Technology Inc. 769GMV 696GPS Networking, Inc. 1326GVF 1917COMPANY BOOTH COMPANY BOOTH Giving you the competitive edge to grow your business with hard-hitting data, news and analysis.VISIT US AT BOOTH 1100 to view our products and business solutions. We are ofering Show Specials and a Chance to Win Free Gifts!4 Choke Cherry Road, 2nd Floor Rockville, MD 20850 USA +1-301-354-2100 [email protected] SatelliteTODAY.com18469Market Intelligence. Global Reach. Accurate. Timely.PAGE 22 | DAY 1 | MONDAYSHOW DAILYPAGE 22|DAY 1|MONDAYHarmonic Drive LLC 1412Harmonic Inc. 880Harris Corporation 1507High Gain Antenna Co, Ltd. 1609Hispasat 786Hughes 701Hughes OE16I.F. Engineering Corp. 489I.S.T Corporation 982iDirect 709INDRA 891Integral Systems 557Integrasys, S.A. 1817Intellian Technologies, Inc. 387Intelsat 623International Datacasting Corporation 381International Launch Services (ILS) 533IPX International Systems, Inc. 1112Iridium Communications, Inc. 375Isola 979ITS Electronics, Inc. 768JDSU 1319JFW Industries, Inc. 1214KCEI International 1116KenCast, Inc. 333Klas Telecom Inc 967KNS, Inc. 281KOSPACE Co., Ltd. 1916L - 3 Communications 501L-3 GCS OE9LBI Sat LLC 789LightSquared 353Linearizer Technology, Inc. 797LinkSat Inc. 1404Lockheed Martin 633Logus Microwave 304LP Technologies, Inc. 1225M2 Global Technology Ltd 899Maryland of Opportunity (State of Maryland) 1218Matys Satcom Ltd. 1925MDA 327MECA Electronics, Inc. 1524MetricTest 1316MFG Galileo 499Micro - Ant, Inc 1308Micronetics Inc. 1715Microwave Filter Company, Inc. 1816Microwave Photonic Systems, Inc. 1612Millitech Inc. 1421MIL-SAT LLC 1119Mitec Telecom 573MITEQ INC. 517MotoSAT 690MTN Government Services 1725NAL Research Corporation 180National Reconnaissance Office 898ND Satcom 750NEC Corporation of America 987Network Innovations Inc. 1618Newtec 511NGN Easy Satfinder (Tianjin) Electronic Co., Ltd. 1109Noise Com, Inc. 896Noren Products Inc. 1314Norsat International Inc. 560Novella SatComs 497NovelSat Ltd. 1519Novotronik GmbH 1414Numerex Corp. 197Optimal Satcom 686Orban Microwave Products 1904Orbit Communication Systems, Inc. 775Orbital Research Ltd. 1708Orbital Sciences Corporation 817Orbital Systems, Ltd. 1125Overwatch Systems 783Packaging Strategies, Inc. 1400Peak Communications Ltd. 855Pelican Products, Inc. 1919Phytron, Inc. 1808PolarSat 985Pro Brand International Inc. 1525Q Microwave, Inc. 1526Quintech Electronics 837Red Rapids 1306Research Concepts, Inc. 495Riverbed Technology 949Rockwell Collins 643Rogers Corporation 358Rohde & Schwarz 1115Rotating Precision Mechanisms, Inc. 1107RRSat Global Communications Network Ltd. 338Russian Satellite Communications Company 1205Saft 1413Sales Office 1130San Francisco International Gateway 1312Satcom Direct 195SatCom Global 188Satellite Engineering Group, Inc. 461SatelliteTODAY.tv News Studio 1106Sat-Lite Technologies 1820SatPath Systems, Inc. 1810SATTRANS 189SATVISION TECHNOLOGY INTERNATIONAL 952SCAN Antenna A/S 1425Schlumberger 657Science and Technology Center in Ukraine 1121Sector Microwave Industries 689SED Systems 457Segovia 175Sencore 1204SES WORLD SKIES 411SGSI (A STRATOS COMPANY) 176Shaanxi Tianyi Antenna Co., Ltd. 991Sichuan Video Electronic Co., Ltd. 1213Siemens 1424Sinclair Manufacturing 998SIS LIVE 1903SKY Perfect JSAT Corp. 1701SkyBitz 191Skycasters 342Skyline Communications NV 1915Skylink Technology 1914Skyware Global 693Sojitz Corporation of America 909Sotca Inc. 1711Space News International 1818COMPANY BOOTH COMPANY BOOTHMONDAY | DAY 1 | PAGE 23COMPANY BOOTH COMPANY BOOTHSPACENET 178SPACENET 873SpaceX 1600Sparton Defense & Security Systems 1212Spinner Atlanta, Inc. 1120Squire Tech Solutions, LLC 1619ST Electronics (Satcom & Sensor Systems) Pte Ltd 719Starling Advanced Communications 1702Stellar Solutions Aerospace 594STM Group, Inc 275Surface Heating Systems (Kirkaldy) Ltd 897Surrey Satellite Technology Ltd. 1707Symmetricom 929Systemware Europe Ltd 334Tachyon Networks 280Taconic 1906Tampa Microwave 597TBC Integration 975TECOM Industries Inc. 1518Tecore Networks 1215TeleCommunication Systems, Inc. 321Teledyne Technologies Inc. 615Telenor Satellite Broadcasting AS 1110Telesat 825Telespazio 749Terrasat Communications, Inc. 1501Thales 471Thales Alenia Space 743Thermacore Inc. 1811ThinKom Solutions, Inc. 888Thrane & Thrane 181Thuraya Telecommunications Company 295Times Microwave Systems 1321Universal Switching Corp. 587Uplogix 360ViaLite by PPM 853ViaSat, Inc. 733Viking SATCOM 1208Virgin Technologies Inc. 1825Vizada 551Vocality 320Volga-Dnepr Unique Air Cargo 1324W.B. Walton Enterprises, Inc. 818Wavestream 443WEGENER 465Windmill International, Inc 1805Winegard Company 395Winsky Communication Technology, Ltd. 997WORK Microwave GmbH 1409Wuxi Huaxin Radar Engineering Co., Ltd. 1717XipLink, Inc. 868XTAR LLC 1714Zarges Cases 1625ZODIAC DATA SYSTEMS 879GE Satellitepacific starimagination at workHigh above the Pacific basin is a true star in satellite communications.The fully US-owned GE-23 Satellite delivers unrivaled coverage of the Pacific regions dynamic data and information traffic zone. It provides versatile, high bandwidth payload capability that meets a wide array of communications needs, and is ideal for military, maritime, backhaul and other VSAT applications.www.gesatellite.comPAGE 24 | DAY 1 | MONDAY PAGE 24|DAY 1|MONDAYSHOW DAILYIn the past, the most coveted and limited mili-tary resources were found in the energy sector. The U.S. Department of Defense adjusted its budget and the scale of U.S. military operations according to its available supply. Today, energy concerns have been equaled by satellite band-width issues.The proof of this shift can be found in Defense Secretary Robert Gates $553 billion 2012 Pentagon budget proposal. Gates told Congress that the future of military op-erations over the next five years would be based on leveraging existing assets through the optimization of critical technology and applications specifically unmanned aerial vehicles (UAV). The number of missions performed UAVs is expected to increase substantially as ground forces are scaled back and replaced by other means of gathering intelligence. UAV applications require mas-sive amounts of high-speed satellite bandwidth and can be cancelled when capacity is not available or impeded by interference or weather.With the absence of future military-exclusive bandwidth projects follow-ing the cancellation of TSAT in April 2009, NSR Senior Analyst Patrick French told Via Satellite that increased UAV missions would help continue to push growth in commercial transponder agreement revenues The 2012 military budget shows that commercial sat-com companies will stand to benefit from increased demand created by di-verted funds in the budget. Demand for commercial satcoms that are currently used by ground troops should continue to grow at modest levels for the next four years, says French. Budget cuts will certainly not affect commercial satellite in a negative way. A large percentage of budget cuts will come from inef-ficient programs, and funds available will be redirected to other programs. More-over, tactical UAV missions similar to drone attacks in Pakistan are likely to be sustained, if not increased, in the two major hotspots with troop withdrawals.Bob Canty is leading the development efforts for the next generation of GPS as program manager for Ray-theons GPS OCX efforts. Raytheon was awarded an $886 million contract to improve the accuracy of information from the GPS. Canty agrees that the focus of military optimization is being shifted to maximizing available assets.If you look at UAV missions, you will see that the main reasons those missions are sometimes aborted is because they lose a lock on the GPS signal, the com-link or both. UAV operators know that there are places on the globe that Budget-Conscious U.S. Military Looks to Commercial Bandwidth to Support Future OperationsBY JEFFREY HILL 13 RF-to-Fiber cards per chassis Outdoor equipment for up to 50 channels New DUAL Transmitter and Receiver technology Line cards for L-Band, IF, S-Band, C-Band, UHF, VHF and 10MHz Blind Mate hot swappable cards SNMP to monitor and program RF cards 26 channels per chassisKEY CAPABILITIES OF ViaLiteHD:RF & Digital Signal Transmission Over FiberViaLiteHD offers improved performance and new advanced system management featuresViaLiteHD sets the standard in ber optic installations and can help your company save time and cut costs.www.vialite-usa.comBooth 853MONDAY | DAY 1 | PAGE 25dont get GPS signals de-pending on the time of day. GPS is basically a line-of-sight system if you cant see four satellites, you cant lock on the GPS signal, Canty says. In my opinion, this is what U.S. Defense Secretary Robert Gates mentioned as a key element to cutting operational costs. The technology is there and has been evolving so rapidly and has become so critical to execution that special-ized abilities like GPS OCX were needed.Gates plan to cut expen-sive military programs will divert about $70 billion back into new technology purchases in the next five years, which will allow the Air Force to buy more Reaper drones made by General Atomics Aeronau-tical Systems and increase purchase orders for Boeing and Lockheed Martins Evolved Expendable Launch Vehicle. The Navy also said it would begin development of a seaborne unmanned strike and sur-veillance plane and a new generation of electronic radar jammers.The militarys future bandwidth plan has been mentioned in recent space-related contracts. In January, Lockheed Martin received a $424.7 million contract from the U.S. Air Force to produce the GEO-4 satellite as a part of the Space Based Infrared System Program, designed to provide early warning of missile launches. Lockheed Martin had been working on this project for some time, as the company re-ceived its $1.5 billion order for GEO-3 in June 2009.Aerospace Industries Asso-ciation CEO Marion Blakey says she was encouraged by the opportunities present-ed in the 2012 U.S. defense budget. At 34 percent of the total U.S. budget, it comes close to reaching the 35 percent marker that we think is needed to ensure a healthy industrial base for the aerospace and defense industry.Blakey also mentioned that the AIA has been concerned over the grow-ing imbalance of military operational costs over investments. Personnel and operations accounts are increasing at four times the rate of growth of the investment accounts, and we are concerned about the long-term ro-bustness of procurement and research. This year, for the first time since the beginning of flight, there PAGE 26 | DAY 1 | MONDAY PAGE 26|DAY 1|MONDAYSHOW DAILYis no new manned civil or military aircraft program in design, and there is a huge requirement to reset and replace equipment used in Iraq and Afghani-stan, she said.While the militarys long-term budget strategy generally was well received by market leaders in the satellite technology sector, not all analysts saw the spending cuts as positive. Zacks analyst Sherzn Mian said that despite regular contract wins by military satcom providers, which are scheduled and expected to sustain through 2013, military and government satellite providers and manufacturers should prepare for some impact on revenues. We believe that the cost savings initiatives of the U.S. Department of Defense through reduc-tion of the defense budget by $178 billion over the next five years will impact all major defense operators, and I maintain my neutral rating on most of those stocks until I see more specific benefits outlined in Gates plan, he said.Andrew Ruszkowski, vice president of global sales and marketing for Xtar, says that while the 2010 military spending budget has helped the satellite sector develop confidence in the sustained and growing strength of U.S. military-commercial satcom partnerships, busi-nesses are preparing for setbacks, as they did with the global recession in 2008. Theres no doubt that any talk of government budget cuts is going to be a con-cern for us. The government is our sole customer, and given that were X-band, we dont have the option to fall back on the commercial or enterprise sectors. How-ever, we see opportunities for us this year to deliver on the value proposition that Xtar has to offer. My confidence stems from the continued demand for our services and technol-ogy from government and military customers and the fact that the orders keep coming in.U.S. government space and satellite partnerships with commercial providers also are being driven by international competition, according to Lexington Institute Vice President Daniel Goure. Russian and Chinese investments in advanced military capabilities, anti-satellite systems and cyberwarfare capabilities remain a top concern for Gates, and Catch the latest news and happenings from the show oorSatellite TODAY.tv News Studio will be buzzing as Via Satellite editors conduct no holds barred interviews with Satellite executives.Stop by to gain valuable insight, market intelligence and key details surrounding the show.Visit Satellite TODAY News Studio at #1106.Stop by Today!18616MONDAY | DAY 1 | PAGE 27many of the industrys military providers may see a ramp-up in activity well into the future. Past defense spending downturns have always come in response to the end of conflict and public declarations that peace has broken out. That is not the case this time. Secretary Gates strongly emphasized this point in last weeks press conference, and we will continue to see a Pentagon effort to keep our space and satellite infrastructure up to date, says Goure.The United States status as an international space industry leader fell in 2010, according to Futron Senior Analyst Jonathan Beland, who agreed with Goures assessment that the factor could be one motivation for the Obama adminis-tration to continue and strengthen government and military space architec-ture investments. NASA and the U.S. government could learn a lot from Russia. Russia has become partner of choice for space agencies around the work seeking to develop new capacity. From South Ko-rea to China, from private enterprise to governments, Russia is capitalizing on its space investments and developing long-term re-lationships with emerging powers, he says.As resources to refresh or expand military space assets become limited, gov-ernment users will resourc-es from commercial opera-tors, freeing the government from the obligation to make large capital investments of its own. A good example of this is what happened with the TSAT cancellation in 2009, said Ruszkowski. After its termination, com-mercial solutions rapidly be-gan to fill the gaps left by its cancellation, truly exempli-fying the value commercial operators can deliver with solutions that are already in place. I think well continue to see that in the future. THE INTEGRAL SYSTEMS FAMILY OF SOLUTION PROVIDERS.TMAutomated Remote Site Management that acceleratesrecovery, enhances QoS and increases visibility. Guaranteed delivery of critical operational status and QoS indicators Quickly and easily recover from network outages Reduce operator intervention Complete network visibility from data traic to system functionalityMercury G3 reduces downtime of the site and the costlydispatch of technicians toremote facilities cutting costsand maximizing the revenuepotential of the network. 603-263-2014 | [email protected] | www.newpointtech.comVisit us at Booth #557 at the 2011 SATELLITE Conference being heldat the Walter E. Washington Convention Center, March 15-17.TMTHE DIFFERENCE BETWEENCONQUERING THEMSURVIVING NETWORK OUTAGES ANDNEWPOINT TECHNOLOGIESMERCURY G3REMOTE SITE MANAGERTHE INTEGRAL DIFFERENCECOMMAND+ CONTROLENTERPRISENETWORK MGMT.SIGNAL PROCESSING+ DATA COMM.COMM. INFOASSURANCESERVICESPAGE 28 | DAY 1 | MONDAYSHOW DAILYPAGE 28|DAY 1|MONDAYLatin America is an intriguing market for satel-lite communications. With low levels of broadband and pay-TV penetration as well as many rural areas where improving education and health is a priority, satellite could play a huge role in many different areas of society. Carmen Gonzlez-San-feliu, Intelsat regional vice president, Latin America & Caribbean, says it is a region on the rise. The state of the satellite industry in Latin America right now is very strong. Latin America remains one of the fastest-growing regions for Intelsat worldwide. During the recent global economic downturn, many Latin American econo-mies actually grew, she says. As the region continues to post economic gains, demand for satellite communications will be robust. Brazil is our largest growth market in the region. Colombia, Peru, Chile and Argentina also are show-ing significant gains.Robert Bednarek, CEO of SES World Skies, also sees plenty of growth prospects for FSS operators. There is a great combination of video and data applications. There is a lot of interest in rural inter-connection and rural Internet for educa-tion purposes sponsored by various governments. There are pretty strong and estab-lished programmes there for Ku-band. We anticipate the continued growth of that type of application. As well as that, there is a robust cable market, and that is beginning to digitize. As we have seen in North America, the digitization will entice the need for more capacity and more programming, so the traditional role of satellites in Inside the 2011 Satellite Industry Directory vou'll nd:SaLelllLe CperaLor roles Market Trends and Forecasts Transponder Frequency Charts Transponder Brokers & Resellers Comprehensive Whos Who in the Satellite Industry Satellite Product/Service Locator And More! lor more lnformauon, vlew sample paaes and order, sLop bv 8ooLh 1100 durlna SA1LLLl1L 2011 or ao Lo www.SaLelllLe1CuA?.com/sld.4 Choke Cherry Road 2nd Floor Rockville, MD 20850 301-354-2100 [email protected] www.SatelliteTODAY.comGet the most comprehensive resource to help you establish global bus|ness re|anonsh|ps to grow your bus|ness and max|m|ze your prohts!Stop by Booth 1100 to view sample pages and order your copy today! Were offering Show Specials, Plus well ship the book to your ofce for FREE!18611Latin America: New Jewel in Satellites CrownBY MARK HOLMESSHOW DAILYMONDAY | DAY 1 | PAGE 29cable networks will remain alive and well. It wont be just U.S. broadcasters expanding to South America. Programmers in the region will also look for more pres-ence, he says. Maria Velez de Berliner, president, Latin Intelligence, says the region held up well, in part, due to support from China, which purchased min-eral, energy and agricultural commodities along with investing in the region. The influence of China has been critical and this has and will continue to impact the satel-lite industry in the region. Its regional investments in critical infrastructure, telecommunications, natural resources, agriculture, critical infrastructure (ports, railroads and airports), logistics, finance, banking and the environment show that China is committed to stay in the region over the long haul. And Chinas primary concerns are order and dependability of access to resources, all supported by satellites. Bolivias cur-rent negotiations with China over China Great Wall will probably result in the cheap-est satellite delivered and launched in Latin America $300 million.Growth ProspectsCarlos Placido, a satellite analyst at NSR, also says the region is in good shape for satellite communica-tions players. I expect Latin America to continue show-ing growth-market charac-teristics in 2011, driving a healthy demand in capacity and satellite services and in an interestingly diversi-fied way. Demand will come from continuing growth in HDTV to support cable and DTH networks, new subscription and FTA DTH platforms being launched (including GVT in Brazil and government-backed FTA systems in Colombia and Argentina), renewed emphasis on digital-divide programs (e-Mexico, GSAC, Compartel, etc.), and cellular backhaul expansion in Peru, Brazil and elsewhere. The traditional enterprise VSAT market will also continue doing well, but the other sec-tors mentioned will be stron-ger drivers of capacity in the region, he says. Gonzlez-Sanfeliu also points to cellular backhaul as a key growth area. With the boom in demand for mobile voice and Internet connectivity, land-based telecom companies can Advertiser PageAmos/Spacecom 2Encompass Digital Media 25GE Satellite 23HispaSat 15iDirect 13Integral Systems 9, 27International Launch Services (ILS) 11JSAT International 7LightSquared 1Advertiser PageManSat, LLC 5MDA C3Paradigm Secure Communications C4Pulse Power & Measurement (PPM) 24Satellite Industry Directory 28SatelliteTODAY.com 21SatelliteTODAY.tv News Studio 26SES World Skies 19XTAR 3A D I NDE XPAGE 30 | DAY 1 | MONDAY PAGE 30|DAY 1|MONDAYSHOW DAILYincrease their capacity using Intelsats cellular backhaul service. In some countries, such as Haiti, where land lines are sparse, satellite is essential for phone and Internet as well as TV. That also applies to governments that need to expand reliable connectivity to remote populations. Network-services applications such as distance education and maritime broadband also are driving demand for satellite capacity in the region.Placido also see the cel-lular backhaul market as one with plenty of poten-tial. There is no question that cellular backhaul will continue driving demand in the region, but this is not homogeneous across the region and how strong such demand will be is not as clear as it was a few years ago, he says. As an example, Brazil has experienced strong cel-lular backhaul growth driven by (regulator) Anatel GSM coverage requirements. Now, emphasis will be shifting on the expansion of cellular data coverage, and coverage requirements in this regard will likely be more relaxed. Coupled with the fact that the economics for cellular data backhaul are not as attractive as cellular voice backhaul may hint at a shift in direction.Digital divide programs are also prevalent in the region, with satellites role in them open to question. Govern-ment-backed projects have gained renewed momentum in Latin America, particularly in Mexico, but Compartel-Colombia and Argentina Conectada clearly show that digital divide programs tend to be more technology-agnostic now and satellite connectivity has to prove cost-effectiveness versus the continuous expansion of terrestrial and cellular networks, Placido says. Country MarketsWhile a number of operators both global and regional players are bringing capacity online to serve the Latin American region, Plac-ido believes an over-supply situation is unlikely to devel-op. While there is always a risk of over-supply given that satellite capacity comes in waves as a result of multi-year planning cycles, I per-sonally do not see any risk of oversupply within 2011. Most capacity coming into the market is pre-booked, and there are certainly capacity-heavy initiatives at full swing to make good use of such capacity. However, it is worth noting that Latin America is attracting an increasing number of play-ers because of the regions recent performance and economic growth, so there is a risk of over-estimating the regions long-term potential as more players indepen-dently plan for additional capacity, he says. The growth in capacity is being driven, in part, by the 2014 World Cup and the 2016 Summer Olympics, both of which will be hosted by Brazil. Velez de Berliner says there could be an oversup-ply situation once these events are completed. The threat of overcapacity is real. The companies will be wise to begin thinking about what they will do when the demand created by the World Cup and Olympics disap-pears. But Brazil remains the single biggest market and the prize in Latin America for satellite players, she says. Two key factors combine as drivers for the growth of the industry in the country, and intra-regional from there. Firstly, you have Brazils defense policy that focuses on the security of the Pr-Sal Fields off the Atlantic Ocean and protection of the Amazon region. Secondly, you have the 2014 World Cup and the 2016 Olympics. The Pr-Sal development and protection calls for growth in demand for telecom-munications, weather, and surveillance satellites. The protection of the Amazon region by SISFRON and SIVAM (border monitoring) will also increase satellite demand, particularly in areas of border protection and people and cargo movement monitoring, she says.Outside of Brazil, there is growth to be had. DirecTV Latin America is seeing strong growth in pay-TV sub-scribers across the region as people have more disposable income and become more inclined to pay for media and TV services. Bruce Churchill, CEO of DirecTV Latin America, says Colombia also provides good opportunities for growth. We have around 400,000 subscribers in Co-lombia. It has been an indus-try that we have described euphemistically as informal, which is another word for pi-racy, but what has happened in Colombia is there has been more emphasis on law and order. The industry is becom-ing much more formal and structured. Telmex has come in and bought a lot of cable systems. The market has become much more formal, and Telmex will come in and start to run it like a proper business and will start paying programmers and the govern-ment taxes and, therefore, charge more to customers. We (then) become much more competitive. We saw this happen in Argentina, and now I expect to see the same thing happen in Colombia. That market to-day has a little more than 3 million pay-TV households. There are some people that estimate that there are as many as another 3 million more unreported house-holds in Colombia. EXPLORE OUR SPACEGlobal leader MDA has been delivering next-generation satellite communications systems for 50 years, with an unparalleled reputation for leadership and innovation. Be sure to visit MDA at the Satellite 2011 conference and expect to be impressed by our stunning two-storey space, a future-minded display that serves to showcase MDAs innovative products and services including satellite refueling and on-orbit servicing now becoming commercially available at MDA. MDAs standout technical strength, customer focus, cost effectiveness and on-time delivery stands behind our entire range of advanced payloads, antennas, electronics, mechanisms, and structures. Catch leadership in action at the MDA exhibit: Booth 327 at Satellite 2011www.mdacorporation.comINTELSAT GENERAL CORPORATION AND PARADIGM DELIVER END-TO-END COMMUNICATIONS TO THE US MILITARY Delivering X-Band and UHF solutions to the military Protected communications through FCSA Schedule 70 contract vehicle Shared iDirect high data rate services to manpack and mobile terminals Ku-Band coverage with more than 50 satellitesTo register your interest visitwww.unitingforces.comwww.arianespace.comArianespace salutes Ms. Petra Mateos for her exemplary leadership and vision as Chairwoman of Hispasat. Congratulations on being selected Via Satellites Satellite Executive of the Year 2010! We are proud to have launched six satellites in Hispasats fleet serving a diverse customer base.On February 16th we marked our historic 200th Ariane Mission that notched our 42nd success in a row for Ariane 5. With the worlds best operational team and family of three launch vehicles, we continue to set the industrys benchmark for reliable access to space.In 2011 we are targeting twelve missions in total. These include six with our heavy-lift Ariane 5, five with the workhorse Soyuz from both Baikonur and the Guiana Space Center, and the inaugural flight of the Vega light launch vehicle. We look forward to launching your next satellite.Jean-Yves Le Gall Arianespace Chairman & CEOArianespaceCoverWrap.indd 3 3/8/11 2:29:57 PMwww.arianespace.com www.arianespace.comArianespaceCoverWrap.indd 1 3/8/11 2:30:12 PM