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April 2005
Click on the title to godirectly to the story
3 / Note from the Editor
4 / Calendar of Events
5-6 / “Featured Event: Industry
Leaders at ISCe 2005”
10-12 / Industry News
13-16 / Executives Moves
REGULAR DEPREGULAR DEPREGULAR DEPREGULAR DEPREGULAR DEPARTMENTSARTMENTSARTMENTSARTMENTSARTMENTS
By Howard Greenfield
Vol. 2 No.11, April 2005
TABLE OF CONTENTS
COVER STORYCOVER STORYCOVER STORYCOVER STORYCOVER STORY FEAFEAFEAFEAFEATURESTURESTURESTURESTURES
20 / 24 / 2005, The Year of HDTV, Again
By Bruce Elbert
17-19 / New Products and
Services
38-39 / “Market Intelligence: Kenya’s Telecoms Regulation” Crisis or Continuity?
40 / Stock Monitor /
Advertiser’s Index
VIEWPOINTVIEWPOINTVIEWPOINTVIEWPOINTVIEWPOINT
HDTV Comes toSatellite
33 / Hughes Aircraft Remembered
By Dan Freyer
Satellite radio is booming inthe U.S. XM and Siriusreport a combinedsubscribers base of over 4million. But can they makea profit?
Chris Forrester examinesthe advantages andprospects of satellitesradio in North Americaand Europe.
Bruce Elbert explainswhy satellite radio is awinner.
EXECUTIVEEXECUTIVEEXECUTIVEEXECUTIVEEXECUTIVESPOTLIGHTSPOTLIGHTSPOTLIGHTSPOTLIGHTSPOTLIGHT
Satellite manufacturerComtech EF Data’s PresidentRobert McCollum spoke toSatmagazine’s Virgil Labradoron the equipment market andother issues.
36 / Interview with GLOBECAST North America CEO David Sprechman
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April 2005
Satnews Publishers is the leadingprovider of information on theworldwide satellite industry. Foremore information, go towww.satnews.com
Cover Design by: Simon Payne
Published monthly bySatnews Publishers800 Siesta Way,Sonoma, CA 95476 USAPhone (707) 939-9306Fax (707) 939-9235E-mail: [email protected]: www.satmagazine.com
Baden WoodfordContributing Writer, Africa
Jill Durfee([email protected])Advertising Sales
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Copyright © 2004Satnews PublishersAll rights reserved.
EDITORIALSilvano PaynePublisher
Virgil LabradorManaging Editorand Editor, North AmericaChris ForresterEditor, Europe, Middle Eastand Africa
Bernardo SchneidermanEditor, Latin America
Peter I. GalaceEditor, Asia-Pacific
John Puetz, Bruce ElbertDan Freyer, Howard GreenfieldContributing Writers,The Americas
David Hartshorn, Martin JarroldContributing Writers, Europe
Satellite Radiois Booming
NOTES FROM THE EDITORNOTES FROM THE EDITORNOTES FROM THE EDITORNOTES FROM THE EDITORNOTES FROM THE EDITOR
We focus this issue on a growingmarket—satellite radio. Our content almostexclusively deals with this hot market. Providing
different perspectives on the subject are our regular contributors,Howard Greenfield, Chris Forrester and Bruce Elbert.
Indeed, satellite radio is booming. Just in the last year,subscriber numbers in the U.S. more than doubled from twomillion to over four million. Satellite radio is also the secondfastest rate of adoption by consumers, achieving 1 millionsubscribers in less than 18 months (a feat surpassed only byDVDs). Just to give perspective on this accomplishment, when itwas first introduced it took radio and TV over three years toreach a million sets— satellite radio did that in half the time.
The question on everyone’s mind, though is whethersatellite radio can ultimately deliver profits. Theanswer to thequestions lies in one of the aticles in this issue. So read on.
Just to give you all a heads up—we will be featuring HDTVin our April issue. HDTV along with satellite radio have beenhighly touted as the future of satellite services. This issue andthe next should provide a lot of fodder for thought leading up tothe NAB in April.
Meanwhile, the ISCe show in Long Beach, California in Juneis shaping up nicely. The feature on page 7provides details ofkey sponsors that includedleading companies of the industrysuch as Inmarsat, SES Americom and PanAmSat’s G2 SatelliteSolutions. ISCe also announced the line-up for its Keynotesession on Thursday, June 2. DK Sachdev, President, SpaceTelConsultancy will be moderating the session and speakers includeDr. Gerhard Bommas, CTO – ND Satcom AG; Mark Dankberg,Chairman & CEO – ViaSat, Inc.; Mary Ann Elliott, President &CEO – Arrowhead Global Services; Carmen Lloyd, Chairman &CEO – Iridium Satellite; Dave Ryan, President – Boeing SatelliteSystems and
Pascale Sourisse, Chairman & CEO - Alcatel Space. Itshould be a very intersting conference. So if you haven’t madeyour plans to attend ISCe in June, you should.
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April 2005
CALENDAR OF EVENTSAPRIL 2005APRIL 2005APRIL 2005APRIL 2005APRIL 2005
April 11-14, Istanbul, TurkeyCaspian Telecoms 2005Elena Peredel’skaiaTel: + 44 (0)20 7596 5205/ 5000 / Fax: + 44 (0)20 7596 5208Email: [email protected]: www.ite-exhibitions.com/ www.caspianworld.com/
April 16-21, Las Vegas, Nevada, U.S.A.NAB 2005Tel; +1-202-595-2052 +1-888-740-4622E-mail: [email protected]: www.nabshow.com
May 31-June 2, Long Beach, CA, U.S.A.ISCe Conference and ExpoGina LermaTel: +1-310-410-9191 / Fax: 1-310-410-9396E-mail: [email protected]: www.isce.com
May 31-June 3, Almaty, KazakhstanKITEL 2005- 12th Kazakhstan and Central AsianInternational Telecoms & Computer Technologies Exhibition-1st Kazakhstan and Central Asian Satellite, Broadband,Wireless and Broadcasting Conference and ShowcaseElena Peredel’skaiaTel: + 44 (0)20 7596 5205/ 5000Fax: + 44 (0)20 7596 5208Email: [email protected]: www.ite-exhibitions.com/ www.caspianworld.com/
June 14-17, SingaporeCommunicAsia 2005Victor WongTel: (65) 6233 8662 / Fax: (65) 6835 3029Email: [email protected] / Web: www.communicasia.com
June 14-17, SingaporeBroadcast Asia 2005Jackson YeohTel: (65) 6233 8633 / Fax: (65) 6835 3029Email: [email protected] / Web: www.broadcast-asia.com
June 23-25, Agricenter International Memphis, TNSatellite Expo 2005Lee Gilliland1Tel: -877-SAT-SHOWE-mail: [email protected]
September 5-9, Paris, FranceWorld Satellite Business Week 2005Linda ZaicheTel: +33 1 49 23 75 17 / Fax: +33 1 48 05 54 39E-mail: [email protected]: www.euroconsult-ec.com
September 8-12, Amsterdam, The NetherlandsIBC 2005Tel: +44 (0)20 7831 6909Fax: +44 (0)20 7242 8907 / Email: [email protected]: http://www.ibc.org/
September 21 - October 1, Vicenza, ItalySAT EXPO 2005Rosalia D’ApranoTel: +39 0444 543133 / Email: [email protected]: http://www.satexpo.it/en
October 3-6, Salvador da Bahia, BrazilITU Telecom Americas 2005John JacobsTel: +41 22 730 5401Email: [email protected]: itu.int/AMERICAS2005/index.html
November 1-3, Ararat Park Hyatt Hotel, Moscow, Russia2nd Russia and CIS Broadband Summit and MITEL 2005ExhibitionElena PeredelskaiaTel: +44 (0)20 7596 5205 / 5000Fax: +44 (0)20 7596 5208 (direct line)Email: [email protected]: http://www.broadband-conference.com ;http://www.ite-exhibitions.com
December 2-5, World Trade Center, Istanbul, TurkeyInternational Trade Fair for Satellite Communication,Broadcasting and TV ContentÖzlem ErcanTel: +90.212.334 69 00Fax: +90.212.334 69 34E-mail: [email protected]: www.cebit-bcs.com
MAMAMAMAMAY / JUNE 2005Y / JUNE 2005Y / JUNE 2005Y / JUNE 2005Y / JUNE 2005
SEPTEMBER 2005SEPTEMBER 2005SEPTEMBER 2005SEPTEMBER 2005SEPTEMBER 2005
OCTOCTOCTOCTOCTOBER 2005OBER 2005OBER 2005OBER 2005OBER 2005
NONONONONOVEMBER 2005VEMBER 2005VEMBER 2005VEMBER 2005VEMBER 2005
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FEATURE
ISCe 2005, May 31 – June2, 2005, promises to be ofgreat interest toeveryone concerned withthe state ofthe satellite industry as it
pertains tocommercial and military/governmentapplications. Due to a number of signifi-cant events over the last few years,changes are rapidly occurring that effectthe bottom line of all satellite enterprise,regardless of the final customer. Take alook at trends that are changing thedemand for satellite services, new marketscreated by the military and governmentfor homeland security, and how mobilityand portability of communications areenabled by satellites.
Transforming SATCOMfor the Warfighter:The Appropriate Mixof Commercial andMilitary SatelliteCommunications?
By David Cavossa,Executive Director -
Satellite Industry Association
The bellwether events of the last two
decades have changed forever the waythe Pentagon thinks about commercialsatellite communications. During Opera-tion Desert Storm, the Department ofDefense utilized commercial satelliteservices for approximately 30% of itssatellite communications (SATCOM)requirements, while approximately 70%were fulfilled by military satellite commu-nications (MILSATCOM). DuringOperations Enduring Freedom and IraqiFreedom, the ratios reversed. A rankingJoint Staff officer has said that OperationEnduring Freedom was “the first time thatsatellite bandwidth was not a constraint.”
During his tenure, Secretary ofDefense Donald Rumsfeld has placedparticular interest on the role of spaceassets in his vision for military transfor-mation and the DoD is currently develop-ing an array of new MILSATCOMsatellites to fulfill this vision. These newsystems include the Wideband GapfillerSatellites (WGS), the Advanced Extremely
High FrequencySatellites, theTransformationalCommunicationsSatellite (TSAT), and theMobile User ObjectiveSystem (MUOS).
But even as these new militarycommunication satellites are deployed,the U.S. military’s thirst for satellitebandwidth will only continue to expandas new weapons systems are fielded and
new bandwidth hungry applications arecreated. Unmanned Aerial Vehicles(UAVs) such as the Predator and GlobalHawk heavy users of commercial satellitebandwidth. Other bandwidth-intensiveactivities, such as secure video telecon-ferencing and encrypted command andcontrol operations, will add to the overallincrease in bandwidth demand. Such isthe nature of the bandwidth beast thathas been created in the DoD.
To prove this point,the Air Force reports thatthe demand for communica-tions bandwidth increasedby over 473% betweenOperations Desert Stormand Operations EnduringFreedom and Iraqi Freedom.
Interestingly, the US Military is not onlyrequiring more bandwidth but is requiringit for fewer and fewer personnel - just ahint as to the future and the DoD’s goalof network-centric operations.
Once the key enablers of theMILSATCOM system are established,network-centric operations will link thewar-fighters on the land, sea and air intoa unified and connected force more lethaland precise than ever imagined. Thesefuture MILSATCOM systems will enablewar-fighters to create the right effect, atthe right time, at the right point in thebattle-space, and ensure they are never ina fair fight with their lass advanced, less“connected” opponents.
Considering the WGS program isexpected to begin deployment in the 2006timeframe, AEHF and MUOS in the 2008timeframe, and TSAT after 2012, a satellite
Satellite Services for the Government andCommercial Enterprise
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FEATUREcommunications architecture of bothMILSATCOM and commercial SATCOMwill still be needed to fulfill the totality ofthe Defense Department’s satellitecommunications requirements in the timeperiod before their launch and also, to alesser extent, following their deployment.Commercial SATCOM bandwidth wasused during peak fighting in Iraq for arange of communications functionsincluding telephony, logistics, email,internet access, and even some missioncritical operations. It was perfectlypositioned to take on tasks that did notrequire the level of security, physicalprotection, and encryption ofMILSATCOM assets.
Given this increasing reliance oncommercial satellite communications,questions have arisen regarding “howreliable is commercial SATCOM”? Inrecent years in response to these ques-tions both the Administration andCongress have issued numerous reportsthat have taken a fresh look at thecommercial SATCOM protection issues.In early 2003, the Government AccountingOffice (GAO) issued a report titled“Commercial Satellite Security Should BeMore Fully Addressed”, Congress alsopassed specific language in the 2003Homeland Security Act stating thatcommercial satellite communicationsinfrastructure should be considered“National Critical Infrastructure”
. Commercialsatellite protectionissues were alsotackled in the 2004report of the NationalSecurity Telecommu-nications Advisory
Committee (NSTAC) Satellite Task ForceReport. While attending to several of thesatellite vulnerability mitigation issuesthat need to be addressed in the commer-cial satellite industry, the report alsoaddressed the need for a better relation-ship/partnership between satellite
industry and U.S. Government, includinglocal, state, and national first responders,the Department of Homeland Security andmore specifically the DoD.
Though the DoD must continue, andwill continue, to field new and improvedMILSATCOM systems to meet itsincreasing need for protected communica-tions, the DoD will also continue to relyon commercial SATCOM to fill thosecommunications needs that cannot be metby its current and future MILSATCOMsystems.
There is a great need and theimportance of integrating commercialSATCOM into the DoD military satellitecommunications wideband andnarrowband architecture. No longer iscommercial SATCOM regarded as just anaugmentation to MILSATCOM. Now wemust make sure the rest of the DoDcommunity, at the user level, understandthis mix of MILSATCOM and commercialSATCOM options when budgeting,architecting and planning for their futurecommunications needs.
Network-CentricOperations: The FutureMix of Commercial andMilitary SatelliteCommunications
Wednesday, June 1st2:45 pm – 4:00 pm
The bellwether events of the lasttwo decades have changed forever theway the Pentagon looks at commercialand military satellite communications. Inrecent years, the satellite industry hasbeen working in partnership with the DoD
regarding the opportunities and chal-lenges of relying on both governmentand commercial satellite systems to meetimportant military communicationsobjectives. This panel will explore thoseopportunities and challenges as thefuture SATCOM architecture of thePentagon is modernized in a new strate-gic approach blending both commercialand military systems.
Speakers:David Cavossa,Executive Director – SIA (Moderator)Robert Demers,VP, Federal Solutions - Inmarsat, Inc.David Helfgott,President & CEO - AmericomGovernment ServicesTim Richard,General Manager - GlobeCastGovernment Services GroupKay Sears,SVP, Marketing & Sales - G2 SatelliteSolutions.
Future Trends andReplacement Market
By Phil McAlister,Dir., Space & Telecommunications -The Futron Corporation
The satellite industry has experi-enced many profound changes over thelast decade: the expansion of the Direct-To-Home television market, the rise andfall of the low Earth orbit telecommunica-tions systems, and the development ofthe Internet as a source of demand, toname just a few.
Throughout all these changes, theheart of the industry has been thesatellite itself. All the industry sectors
Featured at ISCe 2005 !
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FEATURE(satellite services, launch services, groundequipment, and satellite manufacturing)are critical for the industry to maintain itsviability and competitiveness. However,the satellite is the lifeblood of the industry,and the number of satellite orders (andlaunch orders) has become a key metric indetermining the health and future pros-pects of the industry.
Current global analysis of thedemand for GEO commercial communica-tions satellite bandwidth for voice, video,and data service (C, Ku, and Ka Bands)indicates forecasts that bandwidth forsatellite services demand is growing at afairly healthy rate for the 2004-2012 timeperiod. However, while the demand forbandwidth is forecast to grow at arelatively robust rate, the demand forindividual spacecraft and launches is notso strong. Increased spacecraft power,longer service life, and increased numberof transponders per spacecraft all worktogether to depress the demand for actualsatellites in relation to bandwidth.
This forecast is a confirmation ofmany well known aspects of the currentsatellite market: there is no “killer app,”the current overcapacity of bandwidth willtake several years to be absorbed, and thesatellite market will be predominantly areplacement market for the next severalyears.
Future Trends and theReplacement Market:What’s Around theBend?”
Thursday, June 2 • 1:30 pm – 2:45 pm
As the result of several recent trendsin the satellite industry, the replacement
market has emerged as the primary driverfor commercial space infrastructure sales.These trends include: the lower thanexpected demand for new satelliteapplications, the heightened awarenessof the satellite operators on profitability,and recent satellite failures. This panelwill explore these and other trends in thesatellite industry and discuss theirimplication for satellite and launchvehicle manufacturers.
Speakers:Phil McAlister,Director, Space & Telecommunica-tions - The Futron Corporation(Moderator)Clayton Mowry,President, Arianespace USAElon Musk,President & CEO, SpaceXMark Albrect,President - International LaunchServicesJim Maser,President - Sea Launch CompanyLLCPatrick DeWitt,President - Space Systems Loral
Mobile Satellite Servicesfor Commercial andGovernment Users
By Scott Chase, President -Mobile Satellite Users Association
Any review of industry develop-ments related to commercial and govern-ment satellite services will yield a harvestof information about mobile applications.This turnaround in the mobile satelliteservices (MSS) sector has been sodramatic that industry failures andmissteps of the last several years have
largely been eclipsed and forgotten.From core government and militaryapplications around the world and mostprominently in zones of regional strifeand conflict, to rescue workers in SouthAsia communicating critical health andother information in the aftermath of thetsunami disaster, the MSS sector hasrarely been so “in the news.”
For providers ofmobile satelliteservices, this re-emergence of themarketplace has come
with such vigor that even “old pros” inthe industry are hailing the rebirth ofMSS as more closely resembling theemergence of a new and vibrant industry.Regulatory agencies around the worldare scrambling to enable MSS, again anevolution from not-so-distant days whenissues of cross-border transportability ofdevices and limited service mandatesplaced significant constraints on thegrowth of the marketplace. Today,consumers - be they rural, urban,national, commercial, governmental,military - demand “anywhere, anytime, toany device” mobility, and the MSSindustry is obliging its proponents.
Key recentdevelopments haveincluded a regulatoryruling in the UnitedStates allowing the useof the Ancillary Terres-
trial Component (ATC), an engineeringand technical “fix” that helps to eliminatedead zones in satellite-delivered mobileservices. On a more global scale,Inmarsat launched its newest satellite,Inmarsat 4F1, in mid-March on an ILSAtlas booster, thus at the same timeorbiting the most powerful mobileservices satellite ever built and inaugu-rating its next-generation satellitesystem. Systems such as Iridium arefinding new or expanding commercialusers in areas such as the air trafficcontrol arena, others, like Thuraya, note
Featured at ISCe 2005 !
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FEATUREalmost routinely that they serve more than2 billion potential users in their coverageareas.
Mobile SatelliteServices: CriticalCapabilities forCommercial andGovernment Users
Thursday, June 2 •4:00 pm – 5:15 pm
A “new age” of criticalmobile satellite services andapplications is fueling operatorinnovation and customerrequirements across a spectrumof needs and events. Globalconnectivity, and “anywhere,anytime, on-demand communi-cations” have become essentialto businesses, governments,first responders, and armedforces across the globe. Costshave come in line with capabili-ties, and the future of MSS hasmoved from the technologistsand into the end-user main-stream. Don’t miss this excitingpanel of government andindustry leaders discussing thelatest in the MSS arena!
Speakers:Scott Chase,President - Mobile Satellite UsersAssociation (Moderator)Robert Ames, President & CEO – Satellite UsersInterference Reduction Group
Featured at ISCe 2005 !
Other DoD Panels at ISCe 2005!
Brian Hester,President - Satamatics USABo Norton,Director, Sales – Telenor SatelliteServicesBob Roe,SVP, Mobile Satellite Services -Stratos Global
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FEATURETransforming the DoDInformation andCommunicationsInfrastructure
Wednesday, June 1 • 8:30 am – 10:00 am
Wednesday’s Plenary Session willexamine changes in the DoD since 9-11,and whether there is a need for greaterreliance on the inherent flexibility of thecommercial provider.
Speakers:VADM David FrostUSN (Ret.), Former Deputy –USCINCSPACE (Moderator)Maj. Gen. Dennis Moran,Director, Information Ops, Space andNetworks - U.S. ArmyLt. Gen. Robert Shea,Director, C4 Systems, JCS (J-6) - U.S.Marine Corps (Invited).
The Enabling Factor ofNetwork Centric Warfare(NCW)
Wednesday, June 1 • 10:30 am – 12:00 pm
This panel will provide an overviewof the programs that will be the technol-ogy enabler of NCW, the acquisition anddevelopment approaches for the pro-grams, and the technical and program-matic challenges that are being tackled.
Speakers:Sam Porgess,Vice President - Booz Allen Hamilton(Moderator)Brig. Gen. (S) Ellen Pawlikowski,Program Director, MILSATCOM JPO,Space & Missile Systems Center(SMC)
Dr. Ronald Jost,Principal Director, S3C3 DSAD andDirector of Wireless - OASD/NIIMike Kern, Sr. System Engineer, GIG - Office of theSecretary of DefenseJohn Landon,Asst. Secretary of Defense, C3ISRand IT Acquisition Programs (acting)- OASD/NIICapt. Francis “Luke” Lukenbill,Director, Acquisition and EngineeringGroup, Communication Systems,Acquisition and Operations – NRO.
Future CombatantCommander’sRequirements
Thursday, June 2 •10:45 am – 12:15 pm
This panel will debate the require-ment for global connectivity, reliance onthe space medium, and clear trends inthese domains that will persist over thenext several years.
Speakers:VADM Lyle Bien USN (Ret.),Former Deputy Commander-in-Chief,USSPACECOM (Moderator)
Brig. Gen. Charles Fletcher, Jr.,Commander, Military Surface Deploy-ment and Distribution Command - U.S.ArmyBrig. Gen. Larry James,Vice Commander, Space & MissileSystems Center – USAFRADM Tom Zelibor USN,Director, Global Operations (J3) - U.S.Strategic Command
SATCOM and HomelandSecurity: A Work inProgress
Thursday, June 2 •4:00 pm – 5:15 pm
This panel will examine new strate-gies developed by the U.S. Department ofHomeland Security and the DoD regard-ing commercial SATCOM capabilities andrequirements.
Speakers:Richard Buenneke,Sr. Policy Analyst, National SecuritySystems Engineering - The AerospaceCorp.Jeffrey Glick,Chief, Critical Infrastructure Protec-tion Division, National Communica-
tions System - U.S.Department of Home-land SecurityCol. Thomas Shearer,Chief, Planning Integra-tion, NSSO - U.S. DoD.
SM
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INDUSTRY NEWS
Atlas V Launches MassiveInmarsat Satellite
CAPE CANAVERAL AIR FORCE STATION, Fla., March 14,2005 — An Atlas V launch vehicle carried its largest payload todate into orbit on March 11, the Inmarsat 4-F1 satellite thatweighs nearly 6 metric tons (5,959 kgs/13,138 pounds).
The Lockheed Martin-built Atlas V vehicle, designated AV-004,lifted off at 4:42 p.m. EST (21:42 GMT) and placed the Inmarsatspacecraft in a supersynchronous transfer orbit 32 minutes later.Satellite controllers have confirmed that the spacecraft is func-tioning properly.
“This is a milestone launch for us, also, in terms of the size of thepayload,” said ILS President Mark Albrecht. “Inmarsat 4-F1 is one
of largest commercialcommunications satellitesin the world, as well asthe most massive satellitelaunched by Atlas. Yet itfalls into the middle ofthe Atlas V capabilityrange, demonstrating theflexibility of our design.”
The spacecraft is aEurostar E3000 modelbuilt by EADS Astrium. Itis the first in a generationof satellites that willsupport Inmarsat’s newBroadband Global AreaNetwork (BGAN),delivering internet andintranet content andsolutions, video-on-demand,videoconferencing, fax, e-mail, phone and LANaccess at speeds up to
432kbit/s almost anywhere in the world. BGAN will also becompatible with third-generation cellular systems. The operatinglocation for Inmarsat 4-F1 is 65 degrees East longitude.
Consumer Satellite Services:Best Years are Still Ahead
WASHINGTON, D.C., March 25, 2005 — The consensusamong the panelists in one session at the SAT 2005 show inWashington, D.C. was that the “best years are still to come “ forconsumer satellite services. The panel dubbed “The Best Yearsare Still Ahead: Consumer Services via Satellite in the Next TenYears” was chaired by Stephen Blum, President of TellusVentures Associates included panelists Paul Heinerscheid,President of Satlynx; Tola Murphy-Baran, Senior Vice-President,Marketing of Sirius Satellite Radio and consultants JohnOvrutsky and D.K. Sachdev.
Murphy-Baran of Sirius Satellite Radio said that “young peopleinteract today differently to the media experience.” She pointedout the importance of portability and the ubiquity of wirelessappliances today. She said that future lies convergence andminiturization of various portable appliances to provide the mostcontent to consumers. Murphy-Baran said that Sirius SatelliteRadio sees itself more as content provider and are looking into
An Atlas 5 rocket roars fromits seaside launch pad Friday,carrying into space Inmarsat4-F1satellite to provide broad-band access to mobile elec-tronics users worldwide. (ILSphoto)
Boeing Fires CEO Harry StonecipherOver Affair
CHICAGO, March 8, 2005— Boeingannounced on March 7 the Board ofDirectors asked for and received theresignation of President and CEO HarryStonecipher on Sunday, March 6.
Concurrently, the Board has appointed CFOJames A. Bell, 56, as president and CEO onan interim basis, with Board Chairman Lew
Platt assuming an expanded role in his capacity as non-executivechairman.
Boeing said the Board actions were taken following an investiga-tion by internal and external legal counsel of the facts andcircumstances surrounding a personal relationship betweenStonecipher and a female executive of the company who did notreport directly to him. Boeing said the board determined that hisactions were inconsistent with Boeing’s Code of Conduct.
“The Board concluded that the facts reflected poorly on Harry’sjudgment and would impair his ability to lead the company,” saidPlatt.
But he quickly added the resignation was in no way related tothe company’s operational performance or financial condition,both of which remain strong. “However, the CEO must set thestandard for unimpeachable professional and personal behavior,and the Board determined that this was the right and necessarydecision under the circumstances,” he said.
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INDUSTRY NEWS
delivering that content not just to radio but other communica-tion devices such as Personal Digital Assitants (PDAs) andcellphones.
The panel was in agreement on the unique characteristics ofsatellite technology to drive the future growth in consumerbroadband and wireless services.
DirecTV’s Spaceway SatelliteArrives at Sea Launch Home
Port
ST. LOUIS,March 18, 2005— Boeing[NYSE:BA] andthe DirecTVGroup, Inc. saidon March 17Spaceway F1satellite hasarrived at the SeaLaunch homeport in LongBeach, Calif.where it willundergo finalpreparations fora late Aprillaunch aboard aZenit-3SLvehicle.
Built on Boeing702 modelsatellite,
Spaceway F1 is the first of two spacecraft sched-uled for launch this year for DirecTV. The spacecraftincludes a flexible payload with a fully steerabledownlink antenna that can be reconfigured on orbitto seamlessly address market conditions.
“We look forward to working with DirecTV and SeaLaunch as Spaceway F1 continues through finaltesting and integration with the Zenit launchvehicle,” said Dave Ryan, vice president andgeneral manager of commercial and civil satelliteprograms at Boeing.
Spaceway F1 is one of four Boeing-built Ka-band satellitesDirecTV has scheduled for launch over the next three years aspart of a historic expansion of programming capacity. Theexpansion will enable DirecTV to deliver more than 1,500 localand national High Definition channels and other advancedprogramming services to consumers nationwide by 2007.
DirecTV’s Spaceway F1satellite undergoes finalpreparations for itslaunch aboard a Zenit-3SL vehicle. (Boeingphoto)
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INDUSTRY NEWS
Government, Military Market forCommercial Satellite Services toGenerate $7.8 Billion in RevenueThrough 2010
ORLANDO, FL, March16, 2005/— From anestimated $580.2 millionrevenue in 2003, govern-ment and military marketfor commercial satelliteservices is expected toreach over $1.4 billion by2010 yielding totalrevenues of close to $7.8billion over an eight-yearperiod.
According to NorthernSky Research’s newestmarket survey andforecast report, satellitecommunications revenuegrowth remains drivenlargely by U.S. Militarydemand as thePentagon’s bandwidthneeds have increasedsubstantially and willnot be satisfied inter-nally before 2020.
Because of this, relianceon commercial band-width will become anincreasing component ofmilitary planning toinclude non-critical andmission-critical needsover time, NSR said. Inaddition, continuedpresence in the MiddleEast region, as well ashomeland securityinitiatives, should drivedemand and sustain themarket within thereport’s forecast period.
In terms of procurement,
U.S. government entities, specifically the U.S. Military, willcontinue to dominate contracting of satellite communicationsservices, accounting for 89% of overall revenue streams. Non-U.S. and non-military procurement is expected to be a relativelysmall percentage of the overall market through 2010, led by SM
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April 2005
EXECUTIVE MOVESGeorge N. Spohn JoinsThrane & Thrane as newVice President, Sales &Marketing
March 22, 2005 — Thrane & Thrane, Inc.has appointed George N. Spohn as thecompany’s new Vice President, Sales &Marketing to strengthen its VirginiaBeach based North American sales arm.
From a position as Assistant Vice Presi-dent, Government Sales at HughesNetwork Systems, Spohn joins Thrane &Thrane to expand the company’s alreadydominant position as a supplier ofInmarsat terminals to Government as wellas commercial entities across NorthAmerica, Thrane & Thrane said.
“In preparation for our exciting BGANfuture, we are very pleased to have acapacity such as George Spohn to help ussolidify our position as the undisputedleader in the supply of Inmarsat termi-nals,” President Henrik Nørrelykke said.
“We have strengthened our marketposition consistently since we took overour largest distributor LandSea Systems,in November of 2003, and we are nowprepared to further accelerate ourgrowth,” Henrik said.
Peter B. Teets Resignsas Acting Secretary ofAir Force and NROdirector
WASHINGTON, D.C., March 21, 2005 —Peter B. Teets has resigned as ActingSecretary of the Air Force and director ofthe National Reconnaissance Officeeffective March 25. Teets came to the AirForce in December 2001 from privateindustry.
“Pete Teets has handled challengingassignments during an important periodin history, said Secretary of DefenseDonald Rumsfeld. “I thank him for hisservice to the department and thecountry, and wish him and his family thebest.”
Teets said he was honored to serve inPresident Bush’s administration with atalented national security team, specifi-cally with the terrific men and women ofAmerica’s Air Force and the NationalReconnaissance Office. “I’m confidentwe’ve strengthened the world’s greatestAir Force to continue providing air andspace dominance for the 21st century,” hesaid.
Martin Succeeds Powellas FCC Chairman
WASHINGTON,D.C., March 17, 2005— President GeorgeW. Bush designatedon March 16 KevinMartin as chairmanof the FederalCommunicationsCommission,
succeeding the panel’s outgoing chair-man, Michael Powell.
Martin, 38, has been a commissioner since2001. As head of the FCC, he is expectedto shape the broadcast industry bycompleting the digital transition andswitch-off of analog television service. Healso takes over at a time the Internet isreshaping telecommunications withInternet-based phone service, as amongthe emerging issues.
During his tenure, Martin has alsorecognized that the satellite industry is acritical piece of our national telecommuni-cations infrastructure and essential tomeeting the President’s objectives of
ensuring broadband access for allAmericans by 2007.
Martin previously served as specialassistant to the president for EconomicPolicy at the White House as well as legaladviser to Harold Furchtgott-Roth duringhis service as a member of the commis-sion. He also worked as deputy generalcounsel on Bush’s first campaign.
Martin is a former University of NorthCarolina student-body president andHarvard Law School graduate.
“I am deeply honored to have beendesignated as the next Chairman of theFederal Communications Commission, andI thank President Bush for this distinctprivilege,” Martin said in a statement.
“I look forward to working with theAdministration, Congress, my colleagues,and the FCC’s talented staff to ensurethat American consumers continue toenjoy the benefits of the best communica-tions system in the world,” he added.
Dr. Michael D. GriffinNominated New NASAAdministrator
WASHINGTON, March 14, 2005 —President George W. Bush announced onMarch 11 his intention to nominateMichael D. Griffin of Virginia, to beAdministrator of the National Aeronauticsand Space Administration.
Dr. Griffin currently serves as SpaceDepartment Head at Johns HopkinsUniversity Applied Physics Laboratory.Prior to that, he was President and ChiefOperating Officer of In-Q-Tel, Inc. He alsoserved in several positions within OrbitalSciences Corporation, including ChiefExecutive Officer of Magellan Systems,Inc.
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Executives MovesEarlier in his career, Dr. Griffin served asChief Engineer at NASA and as Deputyfor Technology at the Strategic DefenseInitiative Organization. He received abachelor’s degree in Physics from JohnsHopkins University; a master’s degree inAerospace Science from Catholic Univer-sity of America; a Ph.D. in AerospaceEngineering from the University ofMaryland; a master’s degree in ElectricalEngineering from the University ofSouthern California; a master’s degree inApplied Physics from Johns HopkinsUniversity; and a master’s degree inBusiness Administration.
House Majority Leader Tom DeLay (R-Texas) applauded the president’s choiceof Dr. Michael D. Griffin as the new NASAadministrator.
“President Bush’s choice for the newadministrator of NASA is the right one.By choosing Dr. Griffin, President Bushhas proven his ongoing commitment toimplementing a bold new vision for spaceexploration,” DeLay said.
Jon Zellner Joins XM asSr. Vice President,Music Programming
WASHINGTON, March 15, 2005 — XMSatellite Radio said on March 14 that JonZellner, former Vice President of AdultTop 40/Hot AC Programming at InfinityBroadcasting, will be joining XM to servein the newly-created position of SeniorVice President of Music Programming.
At Infinity, Zellner oversaw Adult Top 40/Hot AC stations in 17 cities, including SanFrancisco, Dallas, San Jose, Orlando, andDenver. Previously, he served at Infinityas Vice President of Top 40 Programming,overseeing stations in 11 cities. He wasVice President of Programming for a four-station cluster of Infinity stations inKansas City for eight years, as well as
operations managerand programdirector for twoInfinity stations inBoston for one year.
During his 18-yearradio industrycareer, Zellner has
served as a senior programming execu-tive, operations manager, music director,and on-air talent at stations across theU.S. He was named one of the “bestprogram directors in America” by RadioInk magazine for four consecutive years.
Igor V. ZabolotnyAppointed RSCC DeputyDirector General, Headof Marketing
MOSCOW, March17, 2005 — TheRussian SatelliteCommunication Co.(RSCC) announcedon March 16 theappointment of IgorV. Zabolotny to theDeputy Director
General in charge of marketing.
Thirty-eight year old Zabolotny gradu-ated in 1993 at the Moscow TechnicalUniversity of Communications andInformatics with major in telecommunica-tions engineering. In 1994, he graduatedfrom the All-Russian Institute of Indus-trial Property and Innovations as patentengineer.
From 1997 to 1999 he worked as theExecutive Director for JSC Rostelecomand from 1999 to 2002 as the ExecutiveDirector for JSC Svyazinvest where hedealt with marketing and sales issues.From 2002 to 2004 he worked as theGeneral Director for the JSC Dalsvyaz.
Igor V. Zabolotny is a correspondingmember of the Academy of Telecommuni-cations and Informatics. He is a member ofthe board of directors of JSC Dalsvyazpublic corporation and JSC Acos.
DirecTV President andCEO Mitch SternResigns; Chase Carey,President and CEO ofDirecTV Group, TakesOver
EL SEGUNDO, Calif., March 8, 2005/—Mitch Stern, president and CEO ofDirecTV, Inc. has resigned and will leavethe company effective March 7.
DirecTV said Chase Carey, president andCEO of the DirecTV Group will overseeday-to-day operations of DirecTV.DirecTV added it does not intend toreplace Stern, who joined the company inDecember 2003.
“Serving as DirecTV’s president was veryrewarding and I am very proud of all thatwe accomplished in the last year,” saidStern. “DirecTV is a great success storyand a fabulous business with a verypromising future. While it was exciting tobe part of such a dynamic organization,the time was right for me to move on.”
Carey was named president and CEO ofThe DirecTV Group in December 2003.Under Carey’s leadership, The DirecTVGroup has sold its non-core assets and isfocused on its satellite television busi-nesses in the United States and LatinAmerica. Carey serves as a director on theboards of The DirecTV Group and NewsCorp.
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Executives MovesNorthrop GrummanNames Robert Burke VP,Advanced MissionPrograms
REDONDO BEACH, Calif., March 7, 2005— Northrop Grumman Corp. (NYSE:NOC)has named Robert Burke vice president,Advanced Mission Programs, a newposition with overall responsibility frominception to completion for a set ofrestricted programs.
A 19-year veteran of the company, Burke,41, has been a program manager at thecompany’s Space Technology sector since2002. Prior to that, he was the deputyprogram manager for the James WebbSpace Telescope as well as for the
Chandra X-rayObservatorywhere he wasresponsible forall aspects ofspacecraft launchand operationsreadiness. Inaddition, heserved as
manager of the Engineering and Opera-tions Center within the company’sDefense Systems division.
He joined Northrop Grumman in 1985 asan electrical design integration engineer.Since then, he has held a variety ofengineering and management positions ofincreasing scope and responsibility in
both the functional and program organiza-tions.
Burke earned a bachelor’s degree inelectrical engineering from the Universityof Notre Dame and has completed theExecutive Management Program at theUniversity of California, Los AngelesAnderson School of Management.
Spacehab Appoints NewChief Operating Officer
HOUSTON, Texas, March 7, 2005—Spacephab, Incorporated (NASDAQ/NMS: SPAB) announced on Tuesday theassumption of Michael E. Bain as ChiefOperating Officer effective April 1, 2005.
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Executives MovesSpacehab said the promotion andassociated management changes betteralign the company with NASA’s struc-ture and support the company’s growingcommercial space access vision.
Bain, who joined Spacehab in March1996, will be responsible for managingoverall corporate operations, specificallyfor Spacephab Flight Services,Spacephab Government Services, andSpace Commerce Development. He willhelp guide the company in its newpursuits, defining and implementingstrategies to improve revenue andprofitability.
Spacehab said additional changes in themanagement team are also being imple-mented. After ten years of dedicated
service to Spacephab, Dan A. Bland hasdecided that it is time to spend more timewith his family and will be retiring hisposition as Senior Vice President,Spacephab Flight Services.
EMS Satcom NamesCandy Cunningham Sr.Account Manager toFocus on Gov’t Sales
OTTAWA, Canada, March 7, 2005 —EMS Technologies, Inc. (Nasdaq –ELMG) has appointed CandyCunningham as Senior Account Managerfor EMS’s SATCOM Division. EMS saidCunningham will focus on growing the
Division’s government and militarybusinesses.
Cunningham joins EMS Satcom fromThrane & Thrane. Possessing a deepknowledge of government and militarycommunications requirements andprocurement processes, she also hassolid understanding of HomelandSecurity programs. Cunningham hasnearly 20 years of experience in wirelesscommunications and computer peripheralindustry sales. She has developedeffective relationships with VARs (valueadded resellers), systems integrators andsignificant industry partners that con-tinue to serve her well. SM
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New ProductsYamaha, XM Announce First XM-Ready Receivers and Home TheaterSystems
The XM “Connect-and-Play” chip makes a widevariety of home entertain-ment systems capable ofreceiving XM SatelliteRadio.BUENA PARK,Calif. and WASHINGTON,March 25, 2005/SatnewsDaily/ — Yamaha Electron-ics Corp. and XM SatelliteRadio have announced anew partnership to bringto market the first XM-Ready home entertainmentproducts.
Yamaha said it willmanufacture four newreceivers and several newhome-theater-in-a- box
(HTIB) systems with XM “Connect-and-Play,” a revolutionarytechnology designed to integrate XM into a broad range ofhome entertainment products. The first Yamaha XM-Readyreceivers will be available at retail in early April.
Through this new technology, consumers simply plug an XMConnect-and-Play home antenna into the XM-Ready Yamaha AVreceiver and activate the service to receive XM’s 150-plus digitalradio channels. No additional accessories or installation arerequired.
Using XM’s industry-leading chipset technology as well as anew proprietary chip and signaling protocol, Yamaha said theXM Connect-and-Play antenna will be capable of receiving XM’ssatellite and terrestrial signals as well as channel tuning, decod-ing and audio transmission. It will be the only accessory neededto get XM through an XM- Ready audio system.
“The partnership between XM and Yamaha is ushering in a newera of home entertainment innovation,” said Phil Whitworth,XM’s director of product marketing. “The inclusion of XMConnect-and-Play technology in these new products continuesYamaha’s tradition of ingenuity and excellence in home audio,while providing consumers with a simple way to enjoy XM’saward-winning service.
”.
Comtech Releases Quad SatelliteDemodulator and Fully IntegratedNetwork and Capacity ManagementSystem
TEMPE, Arizona, March 23, 2005/— Comtech EF Data Corp andComtech Vipersat Networks, Inc., subsidiaries of ComtechTelecommunications Corp., (NASDAQ: CMTL) has released anew L-Band Quad Demodulator, the CDD-564L, which fullyintegrates with the optional Vipersat Management System.Designed with four separate demodulators, Comtech said theCDD-564L simplifies hub site installations and gives operatorsan economical means of providing multiple meshed connectionsto and from remote locations.
Featuring the bandwidth efficient Turbo Product Coding, datarates from 7.2 kbps to 4.72 Mbps, fast acquisition plus anintegrated router and IP Module, this platform delivers methodsfor reducing satellite communications costs, according toComtech. Engineered for today’s IP networks, the CDD-564Lmaximizes satellite link efficiency with the integrated router andIP Module functionality, says Comtech.
The IP functionality can be further expanded by enabling theoptional features – Header Compression, Payload Compressionand 3xDES data encryption – resulting in reduced latency,increased bandwidth savings and optimized traffic over satellitelinks.
Packaged in a 1U chassis, this scalable platform provides receivefunctionality equivalent to four satellite modems. Rack space isreduced and hardware costs are significantly decreased. TheCDD-564L is based on Field Programmable Gate Array (FPGA)technology and includes internal Flash memory for simplifiedfield updates.
Both local and remote configuration and management of thisproduct are possible via the Command Line Interface, the IPinterface using Telnet, HTTP, SNMP or the Vipersat Similar to thepreviously announced CDM-570L Satellite Modem, the CDD-564L Quad Demodulator can be integrated with the VipersatManagement System (VMS) to provide a fully automatednetwork and capacity management tool designed specifically forsatellite networks. V
.
The XM “Connect-and-Play”chip makes a wide variety ofhome entertainment systemscapable of receiving XMSatellite Radio.
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NEW PRODUCTS
Integrasys Awarded US Patent forSatellite Monitoring System
WASHINGTON, March 18, 2005 — Integrasys, SA said onWednesday it has been awarded a US Patent for its satellite andterrestrial remote monitoring system using wireless handheldmobile terminals.
Integrasys said a total of 18 claims have been granted under theUS Patent.
The patent, Integrasys said, reinforces the company’s competi-tive advantage and technology leadership in satellite carriermonitoring products.
Integrasys has made a breakthrough with its low-cost two waydeployment tool for VSAT alignment and commissioning knownin the market as SatmotionPocket. Juan C. Sanchez, General
Manager, said SatmotionPocket hassimplified and drastically reduced VSATinstallation.
SatmotionPocket allows the control andcommand of a measurement instrumentfrom a remote wireless handheld mobileterminal by obtaining dynamically thecarrier trace information, in the fre-quency domain, by means of a wireless(cellular or satellite) communicationaided by a server.
The invention provides the means for performing remote line-ups on uplinked satellite carriers, including the cross-polariza-tion isolation measurements, from remote wireless handheldmobile terminals, such as cellular phones or handheld computers(PDA) equipped with a wireless communication transceiver suchas a cellular phone or WiFi (IEE-802.11).
Integrasy’s SatmotionPocket
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The invention, Integrasys said, also provides concurrent accessto a common single measurement instrumentation shared,transparently, by multiple remote wireless handheld mobileterminal users for performing simultaneous and independentalignment operations on uplinked satellite carriers withoutcoordination with the satellite control center or hub stationpersonnel.
Foxcom Releases 4200 Series ofLow-cost Outdoor Fiber Optic Links
PRINCETON, March 18, 2005 — Foxcom, Ltd, manufacturer ofthe Sat-Light line of fiberoptic links, is set to release its 4200Series of wideband fiber optic transceivers designed for lowcost outdoor operation.
The new compact outdoor fiber optic transceivers operates from10-2200MHz and costs below $1000 per link.
“Foxcom has created a truly afford-able and flexible alternative to coax,for satellite and VSAT operatorsacross the board” said Jack Hotz,Foxcom CEO. “ We believe that thiswill be a major breakthrough in ourindustry, whereby Satellite andVSAT operators will now be able toinstall fiber optic links at a fraction of
the price and will benefit from the many advantages that fiberhas over coax.”
Foxcom’s newly designed compact outdoor fiber optic enclosurewill allow operators to install fiberoptic links at the antennawithout the need for protected and temperature controlledenvironments. The outdoor units will have the following notablefeatures: 10-2200MHz of bandwidth, Bi-directional IF or L-bandtransmission, Protocal Transparent, Ultra Low Phase NoiseWeatherproof, Lightweight and Compact. SM
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COVER STORY
HDTV Comes to Satelliteby Howard Greenfield
“Channels that are not think-ing of converting to HD willmiss the ‘Wow’ factor, and runthe very real risk that opera-tors like DirecTV or Sky willconsider how and where theyslot the channel.”
— Eric Cooney, CEO, Tandberg Television, January 2005
HDTV is coming. It’shard to pin-point thetransition line to mass
adoption, but it looks like this isthe year. Why 2005? Thetiming is right for a combinationof technology, marketing, andgrowing customer demand. Thetechnical bottlenecks are beingaddressed through advancedsatellite transmission techniques and newcompression capabilities of MPEG-4 AVC(Advanced Video Coding). The DVBstandards group claims DVB-S2 band-width efficiency “is so powerful that in thecourse of our lifetime, we will never needto design another system”.
Likewise, affordability of the requiredscreens, dishes, and receivers will bringadoption, as will the market psychology.Just as color made black and white TVarchaic, the visual experience of HDTVoutshines normal TV. Once people seeHDTV they prefer it’s larger, more life-likevisual experience. Market demand willgrow as more programming comes on-stream and as equipment prices drop.
There is no better example of HDTVgrowing pains than Cablevision subsid-
iary RainbowDBS’ all HDsatellite service.This ambitiouseffort to competewith DirectTVand DishNetwork hasstruggled to gainsubscriber base(reportedly lessthan 30,000).During the lastmonth there havebeen an amazingsequence ofroller-coasterreports mappingthe ups anddowns of CableVision’s billion dollarinvestment in HDTV infrastructure. Thelatest headlines reflect CableVision’s
decision to shut downthe system and recouptheir losses—as wellas founder CharlesNolan’s commitmentto keep the servicerunning on his ownfunds. Thecompany’s name hasbeen the butt of anendless series ofheadline puns:
March 1: “VoomGoes Boom”(Newsday)
March 3:“Beating A Dead VoomTo Death”(EnGadget)
March 8: “VoomNot Doomed Yet”(MultiChannel News)
March 15:“Gloom And DoomFor Voom” (Corante)
March 18: “FeudWon’t Doom Voom”(Variety)
This trade newsdoggerel is a goodindicator of theemerging state ofsatellite HDTV.Cablevision made aserious investment topioneer this newservice and ChairmanNolan has been trying
to revisit with sale of Voom assets toEchostar—a sale made by his son, CEOJames Nolan, who has been doubtful of
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COVER STORY
Forrester Report.HDTV’s increased bandwidth
requirements are a significant factor inrolling out services. Forrestor Groupargues that just as consumers “lust forthe new, big flat TV sets”, growingdemand for HDTV will result in 50 millionHDTV homes by 2009. Their guidance isthat the great bandwidth crunch willcreate opportunity for early-bird program-mers, and a shakeout for the overflow ofchannels that arrive late in the game,adding: “increasing numbers of networkswill switch to HDTV, while cable andsatellite providers will find half of theirdigital subscribers signing up for HDTVservice.”
Growing demand for bigger, better,TV
The public will budget for large newhome entertainment displays, and itseems one in four would be willing to pay$750 or more. As Cable benefits from thetrend, Forrester indicates “satellite will
have to spend mightilyto meet demand”.Remarking further onthe side effects ofHDTV bandwidth-itis:
“Cable will takethe lead as satellitesinks under thebandwidth load.Satellite operatorsalready face challengescarrying local HDTVchannels — DirecTVhas diverted a wholesatellite’s worthof bandwidth to begincarrying HDTVchannels in 12 localmarkets. As local sportschannels like FoxSports and the YESmove to HDTV, satelliteoperators need room fordozens more.
Voom potential. However, Voom media isa bellwether of the growing potential ofthe new market. So, despite the growingpains, with a little luck, the company willrevoom, er, resume its growth trajectoryand signal the opening of a new era inmass satellite broadcast business.
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COVER STORY
In contrast, cable needs space only forthe few local channels relevant to eachmarket. Satellite’scarriage costs will increase, and cable willcontinue to win over a disproportionateshare of HDTV homes.
Satellite will be forced to choose: Investhundreds of millions of dollars in newsatellites, develop and upgrade millions ofset-top boxes to MPEG4, or give up onHDTV andsettle for lower-paying, less profitablesubscribers” [from “HDTV and theComing Bandwidth Crunch” by JoshBernoff, February 17, 2005).
Another Forrester View
According to satellite industryexpert Chris Forrester, there are solutionsin sight for the HDTV through-puthurtles. Can MPEG4-AVC and DVB-S2offset the inevitable satellite bandwidthcrunch?
“Absolutely” says Forrester. “Theconsensus seems to be that from today’sMPEG4/H.264 compression there’s animmediate saving, sufficient to carry fourfull HD channels on a single satellitetransponder. Add in anticipated improve-
For an insider view on industryforces, I turned to Mark Cuban with afew questions. Mr. Cuban, head ofHDNet and the Dallas Mavericks, is nostranger to big broadcast deals andtrends, Mark sold Broadcast.com toYahoo! for $6B in 1998.
HG: What is the key considerationfor satellite service providers’ HDTV business model?
MC: That the buying decision for an HDTV is also a buying decision forcontent. Whoever is the strongest at the point of purchase has the best chanceto get the subscriber.
HG: What is their biggest potential danger?MC: That a competitor comes into retail and buys exclusivity. The second
is that the picture is over compressed to save bandwidth. If a competitor uses thesame codecs at a higher bit rate, given that HDTV is about picture quality, itcould be a huge selling point of the competition.
HG: Why did you choose to build the first US all HDTV television network?MC: I thought big media would move too slowly and that would open the door
to create great networks with great content.
HG: How will the other networks maneuver to take advantage of increasingHDTV demand?
MC: Don’t know
HG: What is the most impressive HDTVtechnology on the horizon?
MC: Picture quality of HDTV’s is going to getfar better.
HG: Forrester’s Josh Bernoff says there willbe a huge bandwidth crunch for Telco, Cable,Satellite providers.
MC: He is right. There isn’t enough band-width for all the existing TV networks, some willdie, some will stay standard definition, some will goHD.
Interview withMark Cuban
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COVER STORY
ments in the compression technology,which experts like Tandberg say will comemuch faster than those achieved onMPEG2, and statisticalmultiplexing, and it seemsperfectly possible that fiveand perhaps even six high-defchannels might be carried.This matches the state of playwhen MPEG2 was firstintroduced back in 1994. Stat-mux will be very useful inbalancing HD demand,offsetting the high bit-rateneeded for a sports channelwith the more modest de-mands of a movie channel.”
So, despite the alarmaround bandwidth crunch,help is on the way. As Cuban
SMreminds us, it’s just as critical to bear inmind that content and timing will remainking. Get ready for a brave, new viewing
experience: new products and program-ming are coming to the big screen!
Howard brings over 20 years ofwriting, technology, and businessexpertise to various publicationaudiences. Howard has held seniorexecutive positions with world leaderssuch as Sun Microsystems, InformixSoftware, Apple Computer, BritishTelecom (BT), Europe Online, andothers. Howard has a passion for theinfluence of technology on culture andglobal business practices.
At Sun Microsystems, Howardcreated the company’s first Media Laband led co-development of projectsbetween Sun Labs, Xerox PARC, andStanford University. He also worked inApple Computer’s AdvancedTechnology Group on e-Learning.
Howard is a frequent contributor toleading industry publications, andserves on the board of Cal-IT, andBlueVoice.org, an Internet media non-profit dedicated to protecting ocean life& habitats. Howard received hisMasters Degree from StanfordUniversity and his Bachelors Degreefrom the University of California. Tocontact Howard, email him [email protected]. For moredetails, go to www.go-associates.com.
Mark CubanChairman, HDNetOwner, Dallas Mavericks
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FEATURE
2005, The Year of HDTV, Againby Dan Freyer
Service Providers Gear Up to Meet IncreasingDemand for HDTV
High Definition Television (HD) is available to 90 millionAmericans via cable — up 140% vs. last year ——and itsavailable to even more by DBS. DIRECTV has an-
nounced stunning plans to use the bandwidth on its two next-gen Ka-band satellites to deliver HD signals including localbroadcast stations, starting with as many as 500 channels assoon as this year. Echostar, for its part has agreed to buyVOOM’s HD bird for more HD bandwidth.. But Kagan Mediaresearch estimated in a recent study that only 3.7 million HDcable and satellite subscribers existed in the US as of year-end2004. While there is still consumer confusion and ignorance ofthe need to have not just a HD set but also an HD set-top box/decoder, billions continue to be poured into HD’s forward march.
Glitz Aside, Its Tough on Broadcast Network BusinessWhile that’s great news for HD set manufacturers and
retailers, and for suppliers of satellite HD gear and services,broadcast networks in general are facing declining ad dollar andviewer market shares in their core business – Standard DefinitionTV (SD) as cable and satellite networks continue to fragmentviewership.
“HDTV is all about cost with little revenue associated, sowe’ve had to be as financially prudent as possible in a way thatrecognizes the business hasn’t caught up with the technology”,says Rich Wolf, SVP Telecommunications & Network Origina-tion Services, ABC Television Network. “ But we do believe HDwill be an important part of ABC’s future so what we’ve learnedabout HD processes and technology will help us in the future”.
“We had to build a new HD origination facilities to provideall the guts of broadcast a broadcaster has to support includingHDTV distribution, routing, monitoring, and recovery systems”says ABC’s Wolf. ABC, like CBS, NBC, Fox and PBS offers primetime and special event programming in HD to its affiliates. Alsoon the expense side, ABC will provide all ABC affiliates withdigital satellite receive gear for SD and a new digital receiver forHD as it rolls out its new digital network upgrade this year.
‘Taint CheapHD signals take from 4 to 8 times the satellite capacity as
SD in practice, typically a full or half transponder. “We currentlymodulate approximately 45 Mbps of capacity for HD in a 36 MHztransponder on Intelsat AI-5 using a Tiernan HD system, anduplinking at C-band from ABC New York’s roof, but ABC isreplacing that system with a TANDBERG solution in its upgradeprogram”. The WB Network has a similar approach, usingTANDBERG encoding to provide a primary SD feed and aseparate parallel feed. According to Larry Fischer, Director ofTransmission for Warner Bros.’ Global Digital Media Xchange“For satellite capacity, we had 1.5 transponders and since wecouldn’t fit everything into with HD it in prime time, we boughtthe other half of the transponder to allow HD in prime time thisseason. It’s been a real dance as we’ve grown in the last 2 years,says Fischer.
Getting CreativeSince incremental programmer revenue from HD is minimal
today outside of pay nets, broadcasters have had to get creativewhile meeting the mandate to offer HD.
Fox Broadcasting worked closely with hardware manufac-turers to create a customized application allowing them to spliceand switch between SD and HD satellite signals and station
HD generates European fever
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The WB’s HD signal is compressedto an ASI stream is fibered to another LAfacility and uplinked at C-band toPanAmSat’s Galaxy 4R satellite. Becausethe WB envisioned HD from the get-go,it’s HD upgrade path for the companies’playout center minimized capex, saysFischer.
CBS has found available surplus fromIntelsat to accommodate temporarycapacity surges due to HD, recentlybuying additional occasional use space to
support the transmission of this year’s NCAA basketball. “Aswe expand the number of games we offer in HDTV, it is importantto us to have our prime satellite provider be in a position tosupport these requirements, especially an event as popular asMarch Madness,” said Brent Stranathan, vice president of CBSBroadcast Distribution. Most HD contribution on satellite issports-driven Ku-band traffic. According to Intelsat’s KenTakagi, Director of Media & Entertainment Strategy “Demand is
master control systems seamlessly, avoidingthe need for multiple parallel transponderfeeds with transponders costing from $1-3.5M annually says Andy Setos, President,Engineering The Fox Group. Using thistechnology, and its existing transponder,says they can now pass around 73 Mbps persatellite transponder, and run HD program-ming “in the low teens in Mbps”
Maximizing existing assets in addingHD is an idea that Warner Bros.’ LarryFischer Director of Transmission keeps infocus. “We chose standard DVB so we can use the sameMCPC SD specifications, Symbol Rate and FEC to keep thestreams for HD and SD close to identical so the same uplinkchains can be used”, says Fischer. Global Digital MediaXchange provides network origination and distribution for theWB Network in SD and HD, in addition to being one of thelargest distributors of syndicated TV product, and broadcastingthe WB100+ network to cable.
As broadcasters gear up for NAB, we spoke with somekey executives and technology experts about HD andsatellites.
ABCSays, Rich Wolf “There have been some HD product
development and availability gaps in the HD news acquisi-tion, SNG and ENG space, and we expect this year’s NAB tofill some of those holes”
HD Vision BroadcastTom Martinez, President of HD Vision Broadcast Center
agrees, and will be looking at prosumer HD cameras. “I knowthat CNN bought 100 HD consumer camers so that wave ishappening. Where HD is lacking is in the actualnewsgathering environment” he says. HD Vision Broad-cast Center (www.hdvision.tv ?) is a turnkey facility in LosAngeles that provides HD production, and satellite broad-cast center HD Vision has been broadcasting live and pre-recorded HD events, like Grateful Dead concerts via satelliteto digitally equipped projection systems in Regal Cinemas.Martinez willl also be looking at the new techhology in HD in3D at NAB. Companies like Cobalt entertaiment are develop-ing HD systems that create a new experience in HD+36 hesays
.The WB NetworkWarner Bros.’ Larry Fischer says “for NAB this year,
we’re interested in items for cable HD distribution for ourcable channel like low cost SD upconverter systems, andstream splicing technologies. WB’s post dvision is looking atupgrading to HD-capability to provide HD promos”. “We’realso looking at being able to provide an HD solution to cablein the future”, says Fischer, whose division currently operatesthe WB100+ cable channel.
GlobeCastThomas Reiss, SVP -Technology Development for GlobeCastin America has a full plate for NAB this year. “We’re lookingat HD gear, DVB-S2 gear, encryption systems, asset manage-ment and products to improve our IP offerings, including IPTVCompleteTM”, he says. GlobeCast announced it will launch anew service, IPTV Complete, with partner Eagle Broadbandthat will enable over 200 channels to be delivered via apackage of basic, premium and HD programming, video-on-demand, pay per view and digital music with IP multicastvideo content rights for distribution over fiber, DSL and otherprivate IP networks.
WINDOW SHOPPING IN LAS VEGAS – SOME NAB AGENDAS
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FEATURE
hot for Ku now” says Takagi of domestic US transpondercapacity, and he admits “In the broadcast arc we’re tight on theKu-band side so supporting HD SNG is tough right now. It’sdifficult to find capacity”. But the good news for Intelsat’scustomers like CBS is that new bird IA-8 is scheduled to launchinto the heart of the broadcast arc at 89 degrees W.L. in end ofQ2 with 24 new Ku-band transponders that can carry HD.
It’s Getting Better All The Time“We’ve been working to maximize customers’ existing
capacity to get more efficiency because the business imperativeis to keep customers healthy so there’s more value to theirbusiness – versus quadrupling their bandwidth without therevenues to support it” says Paul Bush, VP Broadcasting andCorporate Development for Telesat Canada, whose satellite fleetis used by both Canadian and US programmers.
“Our goal is to make sure our customers are served withthe latest, best and most cost-effective technology,” said Mary
Frost, SVP of Sales for GlobeCast, whose company expertise inbroadcast includes delivery of over 400 TV channels and over 5million hours per year of professional TV and radio signalsaround the world, mainly using MPEG2 technology. GlobeCastis using MPEG2 HD encoding from TANDBERG in its SNGs, andhas also working with Scientific Atlanta to offer cable distribu-tion services using that manufacturer’s HD gear on thePanAmSat Galaxy Cable Neighborhood satellites she says “Butwe’re excited about the potential savings in bandwidth comingfrom advanced modulation like DVB-S2, and video compressionimprovements – be it MPEG4 or Windows Media 9”.
More Bits Per BuckThe MPEG4 AVC (H.2464) and DVB S2 standards are
complete, while Windows Media 9 is still just a proposed HDstandard, AC-1, within SMPTE (Society of Motion Picture &Television Engineering). The DVB-S2 modulation standard willprovide 30-40% more bandwidth per MHz of satellite capacity,and MPEG 4 (MP4) will add 30-40% more bandwidth efficiency
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to video compression. Both of these technologies are expectedto hit the market this year. That would mean 9 megabits persecond would be required from MPEG 4, rather than the 18megabits per second for MPEG 2.
“Specialists may debate the engineering merits of MPEG 4and Windows Media 9, but they are very similar in compressioncapacity,” says Frost. “We think that MPEG 4 is slightly better.For the same quality of signal, an MPEG 4 stream will useslightly less bandwidth than a Windows Media 9 stream, but thebottom line is we’re talking about big savings in bits per buckeither way”, ABC’s Rich Wolf is in synch: “We think that thehigher orders of compression will make HD more viable, be itMPEG 4, Windows Media 9 or others. We think it will enablemore efficient use of transmission media for HD applications, andwe hope to see a lot of that this year at NAB”
IT’S COMING SOONMatthew Goldman, Vice President of Technology, Compres-
sion Systems, TANDBERG Television says. “At NAB we’llshow for the first time in the Americas MPEG-4 AVC (H.264) andWindows Media 9 Series (proposed SMPTE VC-1) real-timeencoders”. TANDBERG plans to come to NAB showing what itclaims to be “The world’s first and only real-time WM9 HDencoder”. That on the heels of “The world’s first broadcast ofAVC HD” at the Consumer Electronics Show in Las Vegas inJanuary 2005 from DIRECTV’s LA Broadcast Center. Andthere’s no need to wait for the MP4 vs. WM9 proposed SMPTEVC-1 standard issue to resolve itself before deploying a new HDnetwork, says Goldberg because “TANDBERG TV employs re-programable encoders, if a customer buys a WM9V/VC-1encoder today, a change in VC-1 can be accommodated easilywith a software upgrade”.
DECODING THE HYPEAs cool as all this sounds – none of these big bit-for-buck
savings can happen until real receiver products are available for
sale. That will not be the case at NAB or until the end of 2005because MP4 decoder chips will not be available until then. ButDIRECTV announced it will use BroadCom silicon chips startingthis year in its IRDs, so the train is a-comin’ and no doubtprofessional MP4 IRDs will be shippable soon afterwards.
INTEROPERABILITY – YES, THAT TOOStandards are a must, but so then is interoperability —
compatability between HD codecs — particularly for contribu-tion applications where multiple manufacturer’s equipment maybe used in the transmission chain. To addres this, the WorldBroadcasting Unions International Satellite Operations Group(WBU-ISOG) has started tests to ensure the globalinteroperability of codecs used for high-definition television(HDTV) video transmissions. The tests involve trials toinvestigate the interoperability of HDTV codecs - at ratesbetween 20 and 100 megabits per second (Mbps), and are usednationally and internationally for satellite links between studiosand other venues.
According to Dick Tauber, chair of the World BroadcastingUnions’ International-Satellite Operations Group. “We believethat the HDTV codec interoperability testing program is vital tothe continued expansion of HDTV worldwide”. Testing isunderway at Telesat’s R&D Labs. First phase of testing iscomplete and involved nine codec suppliers and various inputsource types with 720p and 1080i signals. “The results were verygood from an interoperability standpoint” says Telesat’s PaulBush, but the results will not be published until later this year..
A SHARPER FUTUREWhile of today “The biggest challenge is technical stability
and reliability and human resources and training” says ABC’sWolf, “I think we’re gaining platform stability and stability ofcomputer systems, but training needs to be continued so that agreater base of knowledge will exist in the industry about HD”.Looking ahead says “Ultimately, we want to integrate SD and HDinto one if possible to get scale economies across the entirebroadcast food chain”. And who can argue with that.
Dan Freyer is Marketing Director in America forGlobeCast, the world’s leading satellite servicescompany, operating a global network of satellitedistribution platforms for broadcast and advanced contentdelivery. He is President of the Society of Satellite Profes-sionals International (SSPI), Southern California. He can bereached at [email protected]. The views in thisarticle are not necessarily those of GlobeCast.
FEATURE
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FEATURE
It seems last autumn’s IBC inAmsterdam was the tipping point.Up until IBC there was only polite
enthusiasm from Europe’s broadcast-ers, who cited the existing high-quality PAL, SECAM and DVB(standard definition) digital signalsas proof that there was no real needfor anything in higher (and moreexpensive) definition.
Meanwhile, the viewing publicseemed to be shouting “Wake Up”,arguing that they were at the verysame time voluntarily buying large-screen Plasma and LCD screens bythe truck-load. IBC brought the tworival communities together, and with alittle help from the compressionspecialists at outfits like Tandbergand Harmonic and the final releasesof the MPEG4/H.264/AVC compres-sion algorithms the costs suddenly didn’t seem quite so steep.MPEG4 allows 4 HD channels to be carried on a single 36MHzsatellite transponder, while cameras and other back-office kitwere tumbling down in price.
Since then broadcasters have eagerly signed up for HD.Indeed, the first pioneering transmissions from Belgium’sEuro1080 channel were already up and running at IBC, nowjoined by free-to-air transmissions from SES Astra of a specialHD feed from Germany’s Pro7 network. These are just the tip ofthe iceberg (see box), and even Europe’s usually laggard publicbroadcasters have joined the HD rush, with the BBC leading thecharge, of which more in a moment.
Commercial broadcasters will, however, be first on air.Amsterdam-headquartered SBS Broadcasting, the new owners ofthe Canal Plus brands over Scandinavia, confirmed it will launchat least one HDTV channel in September. The service will includeUK Premiership soccer, “provided the HD signal is captured byBSkyB”. SBS chairman Harry Sloan says Europe’s landscape ischanging, and fast. He quoted recent data from Jupiter Research,which predicted Europe’s digitally-equipped homes would top111m by 2008. “This is a true revolution,” said Sloan, and as
Scandinavia and other markets increasingly turned to digitalreception “this means we can double our TV revenues, with75%-80% of all homes being multichannel, and with advancedinteractivity, it gives us two or more sources of income. SBS’digital vision is to seek the sweet spot that’s bringing thesetechnologies together. Teens and kids already exhibit a completeunderstanding of a different type of behaviour when using TV.They are a new consumer, representing the entitled generationwith unprecedented access to content.”
BSkyB announced March 2 that its HDTV service in theUK will use the H.264-based advanced video codec, and notMicrosoft’s VC-1. Microsoft had been lobbying heavily to seeits codec adopted by Sky. Although BSkyB has yet to licenseH.264 IP, Brian Sullivan, BSkyB’s director of new technology,indicated it is beginning that process despite industry-widereservations about MPEG4’s licensing fees. “We will be there,”said Sullivan. Sky’s HD service to the consumer is still beingpromised for early next year, although a Sky spokesman inMarch admitted that HDTV tests will probably happen later thisyear.
BSkyB has also confirmed its high-def service will launchwith a HDTV version of its increasingly popular Sky+ PVR.
HD generates European feverby Chris Forrester
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FEATURE
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“Innovation andtechnology leader-ship are at the core ofthe Sky brand,” saidCOO RichardFreudenstein,speaking at the DVBWorld conference inDublin. “By introduc-ing HDTV, ourambition is to raisethe bar again. Wewant to re-affirm thatthe digital satellite platform is the home of the highest-qualityviewing experience available.”
Freudenstein said that last year’s announcement of Sky’sentry into high-def ws of great significance and would have far-reaching consequences in the long term.” Freudenstein ex-plained that in the first three years of Sky Digital’s [standarddefinition] roll-out the top driver was NOT sport or movies, goodas they were, but “the biggest driver in those early years was the
“We are pretty confident that HDTV will allow Sky to re-start a conversation with many people who currently believethat pay-TV is not for them. But you wouldn’t expect us tomake such a significant investment decision based on ahunch”
Richard Freudenstein, COO BSkyB
better picture quality and soundquality offered by digital incomparison to analoguebroadcasts.” With this theme inmind he said he was confidantthat Sky’s HDTV offering wouldappeal to viewers appreciatingthe best-possible image quality,and matching sound. He said heexpected the UK to have 2m flat-panel and HD compatiblescreens installed by December2006 (up from a reported 420,000
today), and 3m by the end of 2007. He added that by 2010 Skywas estimating that the “majority of UK households will have atleast one HD screen by 2010”. Freudenstein added that he sawHDTV set sales as being an inevitable “virtuous circle” helpedby fast-falling prices and the increased availability of quality HDcontent.
Freudenstein predicted that the 2008 Olympic Games “oreven next year’s World Cup (soccer) could be the tipping point”
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FEATURE
for consumer demand. “After all, whowould want to watch the World Cupfinal through the fuzz of a standard-definition set when they could seeevery pass and every blade of grass inpin-sharp quality? We don’t know yetwhether the BBC and ITV will offer HDbroadcasts next summer. But themessage from Sky is that our HDTVbox will be ready for them.” BSkyB alsosays that Thomson had won anexclusive contract to supply initial HDboxes for the UK market.
BSkyB is also on record as confirming it wants to provide aPPV special events channel in HD for rock and music concerts,sports (including motor racing and soccer). Fehervari saidAlfaCam has been busy taping rock and serious music events allwinter, including a ‘Beatles Reunion’ rock event in London (onDec 2), which brought Paul McCartney and Ringo Starr backtogether along with the likes of Eric Clapton, and this was thesort of event perfectly tailored for PPV. He said HD2 would bereleasing more information this spring (“we have to keep a fewsecrets on the table”). “We cannot beat [the likes of Sky or CanalPlus] so we had better join them in some sort of joint approach.Our target is to work hand-in-hand alongside them,” he added.AlfaCam is due to move into a purpose-built 110,000 sq meterBelgian facility this summer, with 6 studios and play-out for HD1and HD2.
BSkyB’s attitude is replicated over much of Europe, withFrance, Germany and Italy’s pay-TV platforms all supporting HD.But there’s also support from Europe’s public broadcasters.Sweden’s SVT and Italy’s RAI are each making HD noises, but
not quite as loudly as the BBC. John Varney, the BBC’s ChiefTechnology Officer, says: “Our thinking has changed in thatwe’re now asking ourselves how soon we might launch a HDservice. We may be looking at something relatively quickly.”Varney admitted there was much to be done, including absorbing40 HD cameras just purchased from Sony, as well as copiousstaff training. He also admitted that the BBC’s initial HD broad-casts “might not go to many people”, but “Doing this has comeabout because of the change in the consumer environment.Domestic HD camcorders are now out there at £2000 and below,HD screens…. I was in [electronics retailer] Comet a week agoand they’ve already got the new Samsung 50” HD-DLP set withquite stunning images and much cheaper than a Plasma. We’reless than 18 months away from HD-DVD formats being widelyavailable. So, 18 months from now broadcast TV is going to looklike the poor relation. People will be able to shoot their holiday
videos in HD, rentHollywood movies inHD, and we won’t have aHD service.”
Varney said thatHD on digital terrestrialwas still some way off.He said the BBC mighthave a few internal HDexperiments on terrestrialbut the over-ridingmessage on DTT wasnot to confuse theviewer. “We’re lookingat [HD on DTT] but I am
not sure I see the sense in it. The reason is this: DTT’s successis based, in my view, on the simplicity of the digital offering tothe consumer. At last people understand what digital terrestrial,and Freeview, is all about. We’ve got 5m or so boxes out there,but that leaves a long way still to go. And to suddenly say, ‘Youknow that platform which originally we made a total mess of as apay-TV service, but which we’ve just got right at last, well nowwe’re going to muck about with it some more!’ So, bolting anHDTV service on that which nobody will be able to get, makesno sense. It makes much more sense to say ‘here’s a platformthat people understand which will help the switch-over to an all-digital environment’, and instead look to supply HD on otherplatforms, like satellite and cable, and DSL for non-real timedelivery. We also need to lobby government heavily to ensurewe get spectrum return after switch-off for future HD services.”
The BBC’s HD efforts will focus entirely on satellite for thetime being. “No decisions yet as to when, but we are mindful ofSky’s plans for HD and then there’s our own Freesat platform,which would be an ideal place from which to launch HD because
“As a broadcaster, Sky’s preference is for progres-sive picture scanning. Like the European Broadcast-ing Union, we believe that the 720p format may offerbetter portrayal of rapid movement than 1080i.However, we recognise that some types of contentmay be better suited to 1080i. Therefore, our HDTVbox will support both 720p and 1080i, enablingbroadcasters to select the format that is mostappropriate to their individual requirements.”
Richard Freudenstein, COO BSkyB
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the bandwidth is there, but no date has yet been decided.”Varney explained that despite sharing the rights (with the ITVcommercial network) for next year’s upcoming soccer WorldCup out of Germany, it was unlikely that the BBC could showHD signals. “More interesting is the 2008 Olympics, which has avery strong influence because it is 100% HD coverage, so weare thinking of this, and a summer of sport in HD might be agreat proposal. 2008 is a key driver for all European broadcast-ers.”
“The important thing for us is to understand how produc-tion might be affected by HD, so we are already testing theimpact on set-design, on costumes, wigs and make-up, and weare slowly ramping up our own HD output,” added Varney. “Wewere in Glasgow recently at a conference on HD and what wasamazing was the passion for HD from those present, who weremostly independent producers. Indeed, what was perhaps asurprise was the amount of HD they were already shooting.”
And it is this shift towards high-def programming andappealing content that will drive consumer interest. By andlarge producers are already mastering in HD, looking to re-saleopportunities and profits from packaged sales with new HD-versions of DVD. Indeed, Europe might already have passed thenatural inflection point without even recognising it. ChrisDeering, president of Sony Europe says viewers are alreadyenjoying more entertainment choice and superior picturequality, from a combination of DVD sales and ever-larger flat
HDTV: Pros and ConsUpside· Falling prices of flat-panel
TVs· MPEG4 reduces transmission
costs· Availability of HD
programming· Key sports events in HD· 2nd generation STBs· ‘Must have’ gizmo for early-
adopters
Downside· Costs of new equipment· Legacy set-top boxes· Consumer apathy· Lack of original content
Europe’s HDTV pictureON AIR
HD1 (Euro1080)HD2Pro 7
UPCOMINGCanal Plus (France) June 05TPS Star (France) Sept 05C:MORE (Nordic) Sept 05Premiere (Germany) Nov 05Sky Italia (Italy) Winter 2005-6BSkyB (UK) Winter 2005-6
Data: Inside Satellite
Data: IMS Research
FEATURE
screen sales. “We are in the middle of a Home Cinema explo-sion,” he told an industry gathering in London recently. “Audi-ences are changing from CRT’s to flat-panel TVs.”
David Mercer, senior analyst at Strategy Analytics, statesthat by 2008 there will be about 90m global homes with HDTV,which confirms this point. Mercer puts the USA at pole position
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FEATURELondon-based Chris Forrester, a well-known broadcastingjournalist is the Editor for Europe, Middle East and Africa forSATMAGAZINE. He reports on all aspects of the industrywith special emphasis on content, the business of televisionand emerging technologies. He has a unique knowledge ofthe Middle East broadcasting scene, having interviewed atlength the operational heads of each of the main channelsand pay-TV platforms. He can be reached [email protected]
with some 37m homes, Japan running avery close second and the rest of theworld (excluding Europe) at some 10m.Europe will have a few million HD homes,says Mercer. But he believes content isKing, and cites the USA andJapan’s wholesale commit-ment to making originalcontent in HD. That is notyet happening in Europe,and may present problemsfor consumer take-up.However, investmentbankers Lehman Bros, in areport on HDTV, are alsobehind the 43m number,representing US homes with“big screen HDTV” installedby 2008 (it separates the‘digital TV installs’ at themuch larger 70.1m homes).Lehman Brothers analystsVijay Jayant may have calledit right when he said high-definition is an evolutionary,not revolutionary productgiven the incremental HDTVprogramming, costs and thecontent on offer.
Finally, in Europe by 2006there will be a major promo-tional boost in the shape ofthe German-hosted WorldCup soccer-fest. As to therest, by 2008 there would beEurope’s first publicbroadcasters throwing theirhats into the HD ring helpedby HD signals from theBeijing Olympic Games. Andby 2010 there could well bemass-market adoption ofthe technology. SM
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VIEWPOINT
The successful MartinScorsese film, TheAviator, documents
much of the life, accomplish-ments, and foibles of HowardHughes. Living in the LosAngeles area, the onlyevidence of Howard Hugheswe see today are streets andoffice parks that carry hisname. Howard’s real contribu-tion is hidden within thesuccess of some of America’sgreatest industries – aviation,movie making, and satellitecommunications. Starting withthe base of the oil-bit manu-facturing company started byhis father, Howard producedand directed several success-ful films, owned two airlinesand, most importantly forsatellites, got heavily involvedwith aircraft design andmanufacture. There’s a scene in TheAviator where Howard tells his businessmanager, Noah Dietrich, to incorporateHughes Aircraft Company so that hecould continue to build his experimentalracing airplanes. That company, whichrecently passed into history, employedmore than one hundred thousandengineers and scientists that developedthe first laser, built radar systems thatcould locate the source of incomingmortar fire, manufactured ground-to-airand air-to-air missiles, and suppliedtactical radios that could communicateunder extremely difficult conditions. Thus,Hughes Aircraft provided the base topursue Howard’s vision of leadership inaerospace and defense technology.
Hughes Aircraft Rememberedby Bruce ElbertPresident, Application Technology Strategy, Inc.
The history Hughes Aircraft’scontributions to satellite communicationsare marked by major technological andbusiness innovations, recognized by theSociety of Satellite ProfessionalsInternational (SSPI) in its Hall of Fame.Building on Howard Hughes’ innova-tions in high performance aircraft and theelectronic systems needed in complexdefense systems, a team of top technolo-gists led by Dr. Harold A. Rosen (in-ducted in 1987 into the first SSPI Hall ofFame) produced the first working GEOsatellite, Syncom. While the HughesFlying Boat was the biggest aircraft thatever flew, Syncom was one of thesmallest spacecraft ever launchedsuccessfully. Subsequently, COMSATselected Dr. Rosen’s team at Hughes to
build Early Bird, which was launched 40years ago, in 1965.
During the ensuing years, HughesAircraft designed and built a series ofspacecraft that performed the first soft-landing on the moon (Surveyor), demon-strated tactical communications tocompact terminals (Tacsat), and estab-lished the global INTELSAT systemcovering the three ocean regions (IntelsatIV). At the time I joined Hughes in 1972,Hughes innovated in the creation of thefirst truly domestic satellite, Anik A,which was launched successfully my veryfirst day on the job. I recall looking overthe shoulder of Paul Sengstock, aspacecraft engineer who was reviewinglive telemetry coming in from the satellite
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VIEWPOINT
just after apogee injection. Paul indicatedthat the telemetry receiver had twodifferent detector circuits – one designedby Dr. Rosen and the other by chiefengineer Meradeth Eick. This is the kindof personal dedication and involvementthat was a Hughes hallmark.
Hughes Aircraft gave us all plenty ofopportunity to contribute on many levels.I was asked to head up the communica-tions engineering of the Palapa A systemfor Indonesia. This occupied the betterpart of the 1970s (including 1975, the yearof Mr. Hughes’ passing), and it was mypleasure to be on site for the launch, testand integration of an entire satellitecommunications system. Of course, not allof us at Hughes Aircraft were occupiedwith Palapa A – at the same time, SteveDorfman and Eddy Hartenstein were busywith Pioneer Venus, which placed asatellite into the Venus orbit and injectedprobes into the Venusian atmosphere.Designed and built by Steve’s verydedicated team, these craft were supposedto burn up during entry but survived tohit the surface – the result of Hughesoverdesign.
Toward the end of the 1970s, thehead of the Space and CommunicationsGroup, Dr. Albert D. (Bud) Wheelon, hadestablished a new direction for Hughes –that of owning and operating satellites aswell as designing and integrating thesystems that employ them. We hadalready shown that we could makesatellite communications work effec-tively, but Dr. Wheelon had the vision
that we could excel at creating a servicesbusiness as well. This is always a diceyproposition as you would be seen ascompeting with your own customers. Budselected Clay T. (Tom) Whitehead(inducted this year into the SSPI Hall ofFame), a non-Hughes executive, to headthe fledgling satellite services company,Hughes Communications, Inc. (HCI).Some may remember Tom for his accom-
“Hughes Aircraft Co. pioneeredmany aviation developments as wellas the first geosynchronous satel-lite, Syncom.”
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VIEWPOINT
plishments as head of the Office ofTelecommunications Policy underPresident Richard Nixon, wherein thegeostationary orbit was opened up tocompetition. As president of HCI, Tomcreated a new kind of Hughes companywherein business and marketing domi-nated. His strategy to create a GalaxySystem rather than simply one star wasbrilliant in its simplicity and effective in itsmarket power.
Joining Tom Whitehead were SteveDorfman, former program manager ofPioneer Venus who eventually succeededTom as HCI president, and EddyHartenstein, the focal point of Galaxycable services. It was my pleasure to workfor Steve and Eddy during the develop-ment and growth of Galaxy to become theleader in cable TV. The HCI organizationworked hard to establish Hughes as oneof the two top satellite operators in termsof customers (and number one in profit-ability).
Steve moved on to transform thesatellite manufacturing group into HughesSpace and Communications Company(HSC), streamlining operations and basingthe company’s future on a new class ofhigh-powered satellites. These would laterform the base of DIRECTV, anotherHughes startup that was put under theable stewardship of Eddy Hartenstein.DIRECTV would eclipse HSC and HCI tobecome a multi-billion dollar business
Bruce Elbert has over 30 years of experience in satellitecommunications and is the President of ApplicationTechnology Strategy, Inc., which assists satelliteoperators, network providers and users in the publicand private sectors. He is an author and educator inthese fields, having produced seven titles and con-ducted technical and business training around theworld. During 25 years with Hughes Electronics, hedirected major technical projects and led business
activities in the U.S. and overseas. He is the author of The SatelliteCommunication Applications Handbook, second edition (Artech House,2004). Web site: www.applicationstrategy.com / Email:[email protected]
with the first digital multi-channel television service.Steve and Eddy were alsoinducted into the SSPI Hall ofFame this year.
Owning to the limitedspace here, I cannot detail thedozens of other accomplish-ments that Hughes profes-sionals made to our industryand the world. Just two ofthese include the venerableHS-376, the most purchasedGEO satellite in history(another brainchild of HaroldRosen), and Thuraya, the firstall digital processing GEOsatellite that serves hand-heldmobile subscribers. Thehundred thousand or so of usHughes professionals areproud to have been a part ofthe empire that HowardHughes created. Many havemoved on to contribute atother companies and in thegovernment by demonstratingthe Hughes brand of creativethinking and dedication to theprogram mission. SM
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Executive Spotlight
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Executive Spotlight
GLOBECAST AD?
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MARKET INTELLIGENCE
When Joseph Mucheru, Chairman of the Telecommunications Service Providers
Association of Kenya (TESPOK) ad-dressed the GVF NewCom Africa #Conference in London on 17 March, hesaid that he considered 7 March, 2005, tohave been “one of the darkest days inKenya’s and Africa’s communicationssectors.” Mr. Mucheru’s grave pro-nouncement was in response to the recentaction of the Kenyan Government todissolve the Board of Directors of theCommunication Commission of Kenya
(CCK) and to relieve its Director Generalof his duties.
Attendees from a wide range oftelecommunications sector stakeholderinterests attending the New Communica-tions Africa Conference called for a clearresponse on the situation from theConference itself. The London gatheringof key telecommunications executives,along with representatives of several
Kenya’s Telecoms Regulation:Crisis or Continuity?
Non-Governmental Organizations, and ofAfrican and other governments, soughtout and identified a “considered andappropriate” response to the disbandingof the top regulatory leadership of one ofthe most progressive of African adminis-trations – a move that sent shockwavesthroughout the international ICT sector.
For many of the assembled stake-holders the timely publication of theConference statement – which took placeamidst a wide range of issues underdiscussion, providing key playersinvolved in African telecommunications
development with an oppor-tunity to promote expandedaccess to Information andCommunications Technolo-gies (ICTs) throughout theContinent – would be asignificant contribution toobtaining clarification on theimmediate and longer-termintentions of the KenyanGovernment.
“Whatever the rightsand wrongs of the specificcircumstances, it remains aprinciple of paramount
importance that regulatory authorities areseparate and autonomous from theoperations of government” read theConference statement. Further, it “de-clared that it was imperative that theestablished momentum towards regula-tory reform and expanded competition ismaintained.” The GVF has for longrecognized, and applauded, the fact thatthe CCK has taken major strides toward
implementing a more liberalized telecom-munications policy.
GVF is also very much aware of “theother side of the argument”, as oneNewCom attendee concisely put it. TheKenya Telecommunications InvestmentGroup (KTIG) has applauded the dissolu-tion. KTIG alleges corrupt practices bythe Board of the CCK that “had reached alevel which clearly invited firm anddrastic action from the Minister in chargeof Information and Communication.”Angaluki Muaka, CEO of KTIG, whichwas involved in the tendering process forthe third mobile service provider, hassaid, “The Minister needs to be con-gratulated for his bold decision.”
Whilst GVF would also applaudactions that successfully challenge thedamaging effects on telecommunicationsdevelopment arising out of (alleged)corrupt practices – a further, and veryobvious, obstacle to the very transpar-ency advocated and sought by allstakeholder communities – these are
by Martin JarroldChief, International Programme Development
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MARKET INTELLIGENCE
# NewCom Africa 2005focused on regulatory, technol-ogy, investment & businesspartnerships that have proveneffective for the rapid roll-out oftelecom services in Africa. Heldover 15-17 March 2005 atLondon’s Chelsea Village, theConference was organizedunder the auspices of GVF.AITEC Africa and UK EventManagement Partners were theevent organizers.
serious allegations, andwe await further informa-tion on both sides of theissue.
Again quoting theNewCom statement, incalling “upon theGovernment of Kenya toappoint a new Board andto resolve the status ofthe Director General to apublicly stated time-table” the GVF agreeswith the NewComstakeholders that it isimportant to “maintain the confidence ofinvestors both internationally andlocally”. This can be achieved by the
Government ofKenya by itsissuance of “astatement reiteratingits commitment tothe [regulatory]reform process.”
The entireinternationaltelecoms stake-holder communitysincerely hopes thatthe Government ofKenya will movequickly to clarify its
intentions, and thus restore the confi-dence of the global – and particularly theAfrican – telecommunications community.
A firm, official, and swift reassurance thatreforming continuity will see-out this –hopefully temporary – crisis will bewelcome news for the economy andsociety of Kenya and of all Africannations.
Martin Jarroldis the Director,InternationalPrograms of theGlobal VSAT Forum. He can bereached [email protected] For moreinformation on the GVF gotowww.gvf.org
SM
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COMTECH EF DATA 19www.comtechefdata.com
FOXCOM 29www.foxcom.com
Global Link 00www.
GLOBECAST 37www.globecast.com
ILC 14www.ilc.com
ISCe 8www.
L-3 NARDA SATELLITENETWORKS 34www.lnr.com
LORAL SKYNET 16www.loralskynet.com
MCL 12www.
Pacsat 32www.
PANAMSAT 23www.panamsat.com
SES Global 18www.ses-global.com
COMPANY Symbol PRICE(As of Feb. 28 52-wk Range
APT SATELLITE ATS 1.37 1.25 - 2.52
ANDREW CP ANDW 12.10 9.30 - 21.6
ASIA SATELL TELE SAT 18.48 15.20 - 20.52
BALL CP BLL 44.40 30.20 - 45.20
BOEING CO BA 54.97 38.04 - 55.48
BRITISH SKY ADS BSY 43.61 33.22 - 55.29
CALIFORNIA AMPLIFIER CAMP 7.22 5.12 - 17.20
COM DEV INTL LTD CDV.TO 2.85 2.15 - 3.80
COMTECH TELECOM CORP CMTL 35.96 14.93 - 39.98
THE DIRECTV GROUP DTV 15.01 14.65 - 18.81
ECHOSTAR COMMUNICATIONS DISH 29.75 26.95 - 7.40
FREQUENCY ELECTRONICS FEI 15.10 10.22 - 17.13
GILAT SATELLITE NETWORKS GILTF 7.48 3.95 - 9.86
GLOBECOMM SYS INC GCOM 6.18 4.67 - 7.58
HARRIS CORP HRS 66.70 42.37 - 69.15
HONEYWELL INTL INC HON 37.97 31.23 - 39.50
INTEGRAL SYSTEMS ISYS 20.84 15.35 - 20.73
KVH INDUSTRIES INC KVHI 10.15 6.61 - 17.472
L-3 COMM HLDGS INC LLL 72.10 52.40 - 77.26
LOCKHEED MARTIN CORP LMT 59.22 43.10 - 61.77
NEWS CORP NWS 17.21 15.30 - 19.41
NORSAT INTL INC NSATF.OB 0.508 0.460 - 83.00
NTL INC NTLI 64.89 46.65 - 73.79
ORBITAL SCIENCES ORB 10.47 9.67 - 14.19
PEGASUS TV PGTV 14.22 5.185 - 22.20
QUALCOMM INC QCOM 36.05 30.60 - 44.99
RADYNE COMSTREAM RADN 9.12 6.26 - 11.30
SCIENTIFIC ATLANTA SFA 30.90 24.61 - 36.50
COMPANY Symbol PRICE 52-wk Range(As of Feb. 28
