CONNECTED SOLUTIONS KU HTS: POWERING THE FUTURE OF INFLIGHT CONNECTIVITY KU HTS: FUTURE of INFLIGHT CONNECTIVITY powering the ONE SOURCE, ONE COMPLETE SOLUTION Ku HTS delivers 30gbps total throughput: a reliably fast, robust, and global connectivity solution that delivers excellent passenger experience and maximum opportunity for airline revenue. Ka Regional HTS Ku HTS Ka Global Ku Wide Beam Ku and Planned Ku HTS Coverage Stated Satellite capacity is not always a useful number as most frequencies are reserved for Fixed Satellite Services (FSS) Approximate and aggregate from all suppliers. Ka Regional HTS 90 GHz BANDS LICENSED FREQUENCY 30 GHz 750 MHz Ka 18 GHz 14.5 GHz Ku HTS 30GHz Ka Global 3 GHz 30 GHz Ku Standard Wide 1 GHz 14.5 GHz FREQUENCY PER BEAM 375 MHz 500 MHz 375 MHz 40 2 Pol 2 Freq 4 Color 1 GHz 500 MHz 750 MHz 36 MHz 80 Freq 1 GHz 36 MHz 750 MHz 750 MHz Ku 10.7 GHz 60 2 Pol 2 Freq 4 Color 750 MHz Ka 18 GHz DIVERSITY 1 GHz Ku 10.7 GHz # BEAMS 1 2 Pol 1 GHz 1 1 GHz 2 BEAM S/N Small Beam S/N High Med Beam S/N High Med Beam S/N High Large Beam S/N Med 3 CAPACITY PER BEAM EFFICIENCY FACTOR COST PER BIT 70% $ 2 bpHz 750 Mbps In Route 3 bpHz 1.5 Gbps Out Route 2 bpHz 750 Mbps In Route 80% $ 3 bpHz 1.5 Gbps Out Route 1.5 bpHz 54 Mbps In Route 40% $$ 1.5 bpHz 54 Mbps Out Route 1 bpHz 750 Mbps In Route 95% $$$ 2 bpHz 1.5 Gbps 4 Out Route 5 1 This is the spectrum Licensed for Aero Mobile Satellite Services (AMSS) in the respective band (Ku/Ka) 2 Diversity applies when spot beams are adjacent to each other. Each adjacent spot beam has to have either opposite polarization or a different set of frequencies. Does not apply to wide beam as there are no adjacent spots and the Polarity Doubles available spectrum 3 Smaller focussed beams have a better Signal to Noise ratio due to concentration of signal, larger beams have a lower s/n ratio due to signal spread over a large area 4 A Higher S/N ratio allows better encoding rates and a higher number of bits per hertz 5 Efficiency factor affects the cost of Space Segment. As the spot beams get smaller, the capacity in each beam has to be provisioned for the maximum number of aircraft expected in that beam. This will happen for a very short time each day. Ku Wide Area LIVE TV SERVICE and associated advertising and e-commerce RELIABILITY OF SERVICE COVERAGE BANDWIDTH Ku HTS Spot Yes Yes Limited Limited Uses Ku overlaid wide beam for economical support of live TV TV is expensive as it needs to replicate transmission on each beam, increasing the cost by a factor of +/- 50 TV is expensive as it needs to replicate transmission on each beam, increasing the cost by a factor of +/- 50 Excellent Excellent Good Good Subject to rain fade in extreme weather only Teleport diversity resolves Ka downlink susceptibility to rain fade Ka downlink and aircraft link subject to rain fade. Note that Ka downlink can be geographically positioned in dry areas, but airline routes cannot Ka downlink to ground is subject to rain fade in heavy weather Strong Can roam on Ku or Ku HTS. Limited Global coverage Worldwide coverage using existing satellites HTS will cover high traffic aviation routes starting in 2015 Good Excellent Excellent Good Due to satellite capacity, frequency re-use, and high power smaller beams Due to satellite capacity, frequency re-use, and high power smaller beams. The bandwidth that may actually be realized by any inflight connectivity system is more dependent upon the throughput processing power of the modem than on the total bandwidth available from any single satellite. But Satellite capacity spread over global coverage causes limited bandwidth availability in high density areas. GEE’s experience in North America is that airline customers currently consume more than twice the bandwidth than will even be available in North America using global Ka. Low Low Low to Medium Medium to High There are multiple operators, meaning Ku HTS networks will have competitive pricing opportunities Sourced from a sole operator, so monopoly pricing power is in effect Sourced from a sole operator, so monopoly pricing power is in effect Yes Maybe Maybe Limited cooling for HPT and rain fade on ground; Ka is adversely affected by atmospheric moisture and dirt, as well as high ground temperatures. But subject to rain fade on ground; Ka is adversely affected by atmospheric moisture and dirt, as well as high ground temperatures USE ON GROUND i.e., gate-to-gate service and delays - includes use for reporting functions BACKUP SYSTEM COMPATIBILITY across wide regions of the world REGULATORY Regional coverage (e.g., not available over the Midwest US). No international/ transoceanic coverage But higher costs due to overall satellite capacity and RF power spread over larger area reduces encoding rates Yes in case of Satellite Failure Ka Global Wide beam is economical and can support 20+ channels across the beam area COST MATURITY Ka Regional HTS Mature reliable product Leveraged from mature Ku systems Limited installs in regional areas (other than consumer systems) Still in development Ku wide beam is readily available worldwide; multiple sources provide redundancy Ku wide beam can support areas if Ku HTS satellites become inoperable; multiple sources provide redundancy No backup support available Spare satellite can be moved into position when launched, date tbd Yes Yes Yes No (private infrastructure) (private infrastructure) Different baseband manufacturers/standards at different regions of the world The rules on Ku are mature and well understood - and the service has been extensively field tested The rules on Ka are in their infancy and subject to change as more Ka satellites roll out Comparative Scenario Choosing a connectivity provider is a critical and complicated task that requires careful weighing of multiple features. The scenarios following suggest real-life examples that address Coverage: How do the services stack up across various geographical regions? Bandwidth availability: How does this change based on location and/or acceptable market pricing? Bandwidth actually used: What are the average statistics and usage patterns? Passengers: What is the passenger experience? Examples: 777-300 with 320 passengers, 20% of the passengers are streaming IPTV, 5% of the passengers are streaming internet video, 10% are browsing the internet, and 5% are on social media 1 2015 - NYC to Sao Paulo a) K u/Ku HTS: the aircraft is receiving 20Mbps IPTV and 15Mbps data. Coverage is 100%. The ideal scenario! b) Ka Global: the aircraft is receiving no IPTV (as of Sept 2014. Sources claim 3 channels will be available in 2015) and 5Mbps data. Limited streaming video. Coverage is 100%. c) K a Regional HTS: the aircraft is receiving 4Mbps IPTV (limited channels) and 15Mbps data. Coverage is 40% of flight route. Also, the economic viability of live TV with this technology is poor 2 2015 - London to Dubai a) K u/Ku HTS: the aircraft is receiving 20Mbps IPTV and 15Mbps data. Coverage is 100% combined Ku and Ku HTS. Data rates can still be maintained outside of Ku HTS coverage. b) K a Global: the aircraft is receiving no IPTV (as of Sept 2014. Sources claim 3 channels will be available in 2015) and 5Mbps data. Limited streaming video. Coverage is 100%. c) Ka Regional HTS: the aircraft is receiving 4Mbps IPTV (limited channels) and 15Mbps data. Coverage is 50% of flight route. 3 2015 - London to Shanghai a) K u/Ku HTS: the aircraft is receiving 20Mbps IPTV and 15Mbps data. Coverage is 100% combined Ku and Ku HTS. Data rates can still be maintained outside of Ku HTS coverage. b) K a Global: the aircraft is receiving no IPTV (as of Sept 2014. Sources claim 3 channels will be available in 2015) and 5Mbps data. Limited streaming video. Coverage is 100%. c) Ka Regional HTS: the aircraft is receiving 4Mbps IPTV (limited channels) and 15Mbps data. Coverage is 20% of flight route. Overview Overview As a global leader in inflight entertainment and connectivity – and with the most experience of any provider delivering satellitebased broadband – Global Eagle Entertainment is ideally positioned to share research on the features and relative benefits of Ku band, Ku HTS, and Ka band satellite connectivity options. GEE is dedicated to helping their airline-partners achieve their connectivity program goals – goals that lead to competitive advantages for the airline, including the development of profitable services that improve the passengers’ experience. As airline passengers become increasingly sophisticated and demanding vis a vis their expectations of technology and entertainment provisions inflight, and as the use of handheld devices proliferates at an exponential rate, the need to provide robust and economical connectivity becomes ever greater. New technologies are evolving rapidly to keep up with this demand. Airlines across the globe expect their technological solutions to be state-of-the-art, flexible, and upgradeable – and that they can adapt to the future demands of their passengers’ connectivity interests. As passenger needs grow and technology changes, the system has to grow and change with them. GEE endeavors to provide a meaningful comparison of inflight satellite technologies currently available – a comparison that accurately addresses the similarities and differences in: • • • • • C overage C ost C apacity C apability E xperience Many people in the inflight connectivity industry, including key decision-makers at airlines throughout the globe, are under the impression that Ka Regional HTS and global Ka will deliver bandwidth in excess of Ku HTS (high throughput service). The information provided herein will support informed decisions about investing in the technology that will appropriately – and cost-effectively – support future requirements. Global Eagle’s satellite-based service, via an established and proven Ku band solution, is the superior choice. We anticipate migration to Ku HTS in late 2015. MARKET PERCEPTION FACT Ka Regional HTS delivers greater bandwidth to aircraft than Ku HTS The actual bandwidth delivered to an aircraft is almost identical between Ku HTS and Ka Regional HTS. The regulatory bodies governing frequencies for Aeronautical Mobile Satellite Systems (AMSS) have allocated identical bandwidth for Ku and Ka systems. Additionally, Ku HTS and Ka Regional HTS systems use identical modem technology as both space segment frequencies are converted to identical L-band or baseband frequencies. Ka Regional HTS can deliver all of the service Ku HTS and Ku can deliver Due to bandwidth and price constraints, Ka Regional HTS cannot, in fact, deliver streaming (live) TV across almost one-third of the global airline industry’s flight routes. Even in regional routes, Ka Regional HTS may not provide 100% coverage (their coverage targets highly populated areas). In addition, Ka band is more susceptible to atmospheric and ground heat interference. As a result, airlines will not be able to consistently and reliably offer gate-to-gate service. Both scenarios reduce the airlines’ revenue opportunities and “passenger satisfaction index.” Ka Regional HTS is less expensive than Ku HTS Ka Regional HTS can offer continuity in service delivery Air-to-Ground technology is satisfactory as long as the aircraft remains over land While some Ka Regional HTS satellites have a larger overall capacity due to smaller beam size and Fixed Operator Use, in reality it is not possible to sell all bandwidth in all cells as the high traffic regions will sell out first. Selling out one cell will cause an outage in a mobile environment. Furthermore, the primary market for Ka HTS operators is consumer home satellite-based Internet, and due to lack of suppliers offering a competitive environment there is no motivation to reduce costs for aero customers. On the other hand, Ku HTS satellite operators compete with Ku and Ka HTS services, creating competition between the various operators that in turn drives down prices. Because Ka Regional HTS operates on different satellites that require different protocols (i.e., “languages”), they are not necessarily compatible and transition issues arise. Ku HTS is globally available in a uniform manner and allows an airline to provide service everywhere, seamlessly. Ku HTS also allows for seamless transitions from spot to wide beam, on the same flight, with the same hardware. Ka Regional HTS cannot make these transitions, as would be necessary on an international flight. Airlines frequently change routes to adapt to seasonal loads, future opportunities, natural disasters, and political events. If an airline cannot deliver the same consistent service in each aircraft, regardless of where they fly, the airline will be unable to effectively market (i.e., capitalize upon) the service to passengers and will be unable to shape passenger expectations. Additionally, ATG service and scalability outside the US and across international borders suffers from issues with network compatibilities and roaming agreements. Competitive Advantage GEE’s experience includes • the successful installation and support of more than 568 aircraft flying 3200 flights per day • the ability to offer gate-to-gate service – improving passenger experience AND airline productivity • the fastest broadband satellite system retrofit time in the industry • the world’s only web based commercial and technical reporting solution available to airlines • a digital rights management (DRM) solution certified by Hollywood studios • managing government (STC) approvals throughout North America and the world • maintaining the equipment and training local airline teams • the ability to send and receive data reports inflight and on-the-ground, regardless of weather • the world’s only ITP – Intelligent Traffic Prioritization Engine – which prioritizes and channels bandwidth demands on-the-go for superior passenger experience • the market leading IFE, content, and service provider with the world’s largest market share of entertainment content Critical Questions Global Eagle Entertainment has earned a reputation as a credible resource for satellite connectivity, capabilities research, and long-term support. Our goal is to provide our airline clients with the latest and most robust information and service. GEE’s proven track record provides an ideal business model of an effective Ku-based satellite program, a program that offers an inherently wider range of capabilities when compared to Ka band. Before making your decision to install a satellite-based technology solution you need the best answers to the right questions. Ask your connectivity suppliers these questions: • What does satellite capacity actually mean to you, the airline, and to the passengers’ experience inflight? What will a passenger actually experience on a flight equipped with your system? • What inflight connectivity services and products will you provide across all of the airlines’ routes? • What does bandwidth mean to the airline and the passenger? • What is the difference between the aggregate bandwidth the satellite is capable of delivering, and the actual Mbps delivered to a single passenger device? • How quickly would an average movie / webpage / song load, given the bandwidth provided, the bandwidth usable, the capabilities of the modem, and your passengers’ average usage statistics? • Stated another way, What is the relationship between the satellite’s potential output vs the onboard modem’s capacity vs what passengers actually consume? • What is the relative price of the service - relative to the services offered by Ku-HTS, for example? • What content services can you provide? What can’t you provide? • How will you adapt your coverage range when a flight route changes? How quickly can this coverage adapt? • Will you be able to deliver the same IFC services over these new routes? • What is your long-term financial model? • What are the coverage limitations to your solution? • What proven expertise does your organization have helping an airline generate revenue and develop new passenger solutions? GEE, Global Eagle Entertainment | 4553 Glencoe Avenue | Marina Del Rey, CA 90292 | www.globaleagleent.com © copyright 2014, Global Eagle Entertainment Inc. All rights reserved.