Asia-Pacific Satellite Communications Council•ISSN 1226-8844 NEWSLETTER Asia-Pacific Satellite Communications Council Suite T-1602, Poonglim Iwantplus, 255-1 Seohyun-dong, Bundang-gu, Seongnam, Gyeonggi-do, 463-862 Korea Tel: +82-31-783-6244 Fax: +82-31-783-6249 E-mail: info@apscc.or.kr Website: www.apscc.or.kr Military Satellite Communications INTERVIEW David Ball, Chief Technology Officer, NewSat FOCUS ASIA Asia: The Next Hub of Government and Military Satcom Markets 2 0 1 2 Q4 www.apscc.or.kr Jabiru Satellite Program 4 t h Q u a r t e r 2 0 1 2 • Vo l u m e 1 8 • I s s u e 4 EUROPE 03 MESSAGE FROM THE PRESIDENT “NEW” capacity to high dEmaNd rEgioNs high poWErEd Ka-baNd covEragE “raW” capacity aNd flExiblE payloadsMIDDLE EAST 04 FEATURES: Military Satellite Communications ASIA AFRICA 04 Morale, Welfare & Recreation (MWR) 10 Advanced Techniques for Efficient Satellite Communications 16 2012: A Milestone in the History of Military Satellite Communications on Commercial Satellites 22 INTERVIEW EUROPE AUSTRALIA MIDDLE EAST 22 David Ball, Chief Technology Officer, NewSat 26 FOCUS ASIA ASIA Jabiru-2 26 Asia: The Next Hub of Government and Military Satcom Markets 32 SATELLITE TRENDS AFRICA EUROPE AUSTRALIA MIDDLE EAST 32 The Space Insurance Underwriting Cycle 38 Increasing Competition to Soften Maritime Satcom Pricing 42 INSIDE APSCC ASIA 42 APSCC 2012 Satellite Conference & Exhibition AFRICA AUSTRALIA Jabiru-1 44 APSCC MEMBERS 46 SATELLITE INDUSTRY NEWS – 7.6 GHz Ka-band capacity – Multi-spot, regional, steerable beams – Provides “new” capacity over the MENA region 51 CALENDAR OF EVENTS Jabiru-3 52 ADVERTISERS’ INDEX For more information Scan for Ka-band white paper or visit newsat.com/ka-bandwhitepaper Telephone +61 3 9674 4688 Email sales@newsat.com Website newsat.com All images are for illustration purposes only. Satellite coverage zones and technical specifications are subject to change and are for general guidance only. Terms and conditions apply. For more information go to newsat.com or call +61 3 9674 4688. ©2012 NewSat Ltd ABN 12 003 237 303. The APSCC 2012 Conference & Exhibition held in Seoul, South Korea for 4 days from September 24th 2012 ended as successfully as the one held last year in Bali. This conference had over 80 specialists on satellite business as speakers and over 427 participants from 26 countries, allowing for very meaningful discussions to be held. I would like to give my deepest thanks to those member companies that helped support this event, in particular those companies that acted as sponsors and that participated in the exhibition. I would also like to thank the staff who worked tirelessly in order to make this event a success. One of the things that stood out most to me at this conference was a reconfirmation that the two big applications supporting satellite communications demand in the Asia Pacific region are satellite broadcasting (DTH) and backhaul feeds used for internet and mobile phones. In particular, the current usage and growth of backhaul feeds has led to them actually surpassing DTH. This increase in satellite use for backhaul feeds is due to increased adoption of mobile phones in the region, as well as a shift from 2G to 3G and the introduction of smart phones. At the same time, a major issue brought up at this conference was a desire among the terrestrial wireless industry to share and use the spectrum set aside for the satellite industry. In order to handle the demand for more capacity and higher speed due to the introduction of mobile phones with high speed data service like LTE or 4G, the terrestrial wireless industry would like to use more of the spectrum, including not only C-band which was debated previously but also Ku and Ka band. There is a movement among the terrestrial wireless industry to approach various governments about sharing this broad spectrum with the satellite industry. This issue is likely to become a major point of debate at the 2015 World Radio-communications Conference (WRC 2015) and members of the satellite industry are aware they must begin making plans to protect the spectrum they are currently using. As members of the satellite industry, we must avoid a situation where terrestrial wireless systems will cause harmful interference to satellite systems, which would then lead to the problems to the service we provide, bringing constraints on the satellite usage and a slowdown in the industry growth as a whole. It is therefore necessary to pay close attention to this movement and develop effective strategies to cope with it. However, as mentioned previously, it is true that significant part of the growth of the satellite demand in Asia is due to the spread of terrestrial mobile phones and wireless broadband service, and so conversely the spread of mobile phones and wireless broadband service is supported by satellite backhaul feeds. We must recognize this interdependent relationship of both industries. Therefore proper solution that allows healthy growth of both industries is desired. Yutaka Nagai President, APSCC 04 FEATURESⅠ Morale, Welfare & Recreation (MWR) Koen Willems, Strategic Marketing Director, Government & IP Trunking, Newtec Satellite Communication for Morale, Welfare and Recreation Networks Morale, Welfare and Recreation (MWR) programmes are a key part of Government and Defence operations. MWR networks are designed to support remotely deployed defence personnel, civilian employees, ship crews and their families. Satellite communication plays an important role in MWR programmes due to the fact that government and defence operations are mostly located in remote locations or in areas suffering from man-made or natural disasters with no terrestrial connectivity. The amount of data, voice and video exchanged in MWR networks has grown substantially, along with the wide number of leisure and support services that are being offered. Government and defence customers continuously seek new technologies to drive down bandwidth requirements and are looking for ways to lower satellite bandwidth costs. Through efficient satellite communication technology such as Newtec’s FlexACM®, Cross-Layer-Optimization™ and datacasting solutions this objective can be achieved in no time. 06 Q4•2012 Quarterly Newsletter MWR Programmes over Satellite able, or has been destroyed. Morale, Welfare and Recreation programmes All Newtec equipment and technology individu- in the most efficient way. ally contributes to optimising the satellite IP are put in place in order to enhance the quality Through Newtec technology a satellite link can link. But once combined they bring the satellite The network optimisation software such as of life and employment for defence personnel, be set up quickly anywhere in the world, inde- link to full efficiency. acceleration, shaping and data casting is avail- civilians, ship crews and their families. pendent of the location on land or sea. Once the • Connectivity to families and friends to able on Newtec IP equipment or as software cli- network is in place extra remotes can be put The Newtec modulators, demodulators and ents, which can be smoothly integrated into into operation simply at any time. modems are based on DVB-S2, the adopted existing infrastructures. increase resilience standard for communication over satellite for • Enroll new recruits or employees to par- data, video and voice allowing full interopera- Support of Video, Voice and Data bility. Kick-started by Newtec in 2012, key play- • Motivate remote deployed personnel Morale, Welfare and Recreation services are a ers in the satellite industry are calling for a new Scalability (from Large Camps to Small Sites/Ships) • Provide leisure in times of low activity combination of voice (calling the home front), satellite transmission standard which would Through the Newtec hub both large camps, video (news, sports, entertainment, TV and extend the existing DVB-S2 standard. By com- small sites or ships can be connected with a • Training and Education in order to radio broadcast, training movies) and data bining different innovative technologies in S2 common forward satellite carrier. The return improve readiness and skills for upcoming (social media, mail). Most of these streaming Extensions up to 64% efficiency gain can be technology can be SCPC or MF-TDMA (or a missions and file-transfer based services have converged obtained in a satellite link. combination) depending on the return rates, size ticipate in remote missions on land and sea or repose • Relieve stress, stay mentally and physi- towards IP. of the remote or the configuration of the net- cally fit work (Point-to-Point, Point-to-MultiPoint). Newtec has more than 27 years’ experience as Easy Integration These programmes often depend on satellite market leader in transport of video, high data Newtec equipment and software have success- communications due to the remote nature of throughput, VSAT and voice links over satellite: fully been integrated in MWR networks over government and defence operations. Satellite from broadcast distribution and contribution to satellite worldwide. Newtec hub equipment, Broadband Experience Away from Home MWR networks combine a set of different ser- IP trunking, VSAT and telecom backbone appli- modems, modulators and demodulators fit per- For true broadband experience over satellite the vices available for personnel serving on both cations. Through a multiservice platform the dif- fectly into rack space at the MWR headquarters Newtec modems and terminals in the MWR land and sea. ferent MWR services over IP can be combined or at the remote sites. Video, data and voice network implement the most efficient technolo- either in the hub or the remote into a single car- (file-based or streaming) are transmitted gies, such as DVB-S2 FlexACM® in the forward • Internet Café Access rier for efficient transfer over satellite at opti- through one modem in the same satellite carrier link, adaptive return technologies and embed- • TV & Radio Broadcast mal availability. • VoIP • Training & Education • Mobile/Portable Morale Access Best-of-Trade COTS Equipment and Technology • Intranet Access Newtec can reflect on many successful satellite • Social Media network implementations worldwide for a wide • Travel/Sport/News/Dining Information range of civil, state and defence applications, • Digital Cinema including multiple MWR networks. The configuration of these networks combine reliable COTS Global Reach & Fast Deployment equipment (hub, modems), efficiency technology Humanitarian missions into man-made or natu- (FlexACM ®, Bandwidth Cancellation, Clean ral disaster areas, duty at sea and peacekeep- Channel Technology™, Cross-Layer-Optimization™) ing operations take government and defence and network optimisation software (shaping, personnel to remote locations where often ter- acceleration, datacasting). restrial communication infrastructure is unavail- 07 08 Q4•2012 Quarterly Newsletter Layer-Optimization™) such as shaping, TCP Optimal Availability over Variable Conditions acceleration, pre-fetching and compression. Even in the most harsh and hostile conditions it ded IP traffic enhancement software (aka Cross- 09 is important to have MWR networks over satelNext to an improved end-user experience, con- lite available for crew and personnel at all siderable cost gains can be achieved. times. The auto-adaptive technology incorporated inside Newtec’s FlexACM® takes care of any •Reduction of Webpage Load Time up to 60% fading condition in order to avoid link or data •Reduction of File Download up to 90% losses. Fading conditions due to choice of satel- •Up to 35% Bandwidth Reduction lite (Inclined Orbit Satellite, Ku-, Ka-, X-band, HTS), environment (rain & dust) or interference (between two adjacent satellites) will no longer Double Throughput in Same Bandwidth interrupt satellite transmissions. Next to the increase in MWR networks over the detected missing fragments are retransmit- • FlexACM White Paper • Application Notes on Broadcast, Broadband, satellite, data, video and voice traffic have also Reliable and Efficient Datacasting ted which provides important OPEX gains for grown substantially. The boost in rates needs to Multicasting MWR content towards remote services on-the-move or those suffering from be matched with the lack of satellite capacity sites and ships with Newtec’s Datacasting fading or interference conditions. over some areas of operation. Software will immediately result in important efficiency and OPEX gains. The transmissions Newtec’s Datacasting Software also has the Dedicated technologies such as DVB-S2, S2 towards remotes are aggregated in a common following possibilities: Extensions, FlexACM®, Bandwidth Cancellation, efficient DVB-S2 FlexACM® forward over satel- Clean Channel Technology™ and Equalink are lite. The content is stored on the server located • Dynamic Scheduling & Prioritisation used in a large number of MWR networks to at the remote. • Authentication, Authorisation & Accounting ® IP Trunking • Government & Defence applications • Automated Content Distribution via “hot achieve maximum throughput independent of the selected satellite. At the same time impor- The reliability of the datacasting (digital cine- tant OPEX reductions can be accomplished. ma, news, shows, etc.) is enhanced by the soft- folders” • Monitoring & Control ware’s partial retransmission capabilities. Only For further in depth information • P rofessional equipment modem, hubs, modulators, demodulators leaflets • N etwork Optimization & Datacasting Software leaflet Koen Willems starts his career in 1998 in the speech technology company Lernout & Hauspie, as project manager in the Consulting & Services division. More recently he joins Toshiba as a Product Marketing Manager for the Benelux and later for the European market. In a total of 6 years Koen contributes to all major Toshiba Retail IT product releases. Willems is at present Strategic Marketing Director for Government, Defence and IP Trunking at Newtec. In the last four years with the company he has been in charge for the market launches for professional IP modems and technologies, such as FlexACM®, Clean Channel Technology, Bandwidth Cancellation, Cross-LayerOptimization™ and many more. Koen holds a degree in English & Scandinavian Languages (University Ghent, Belgium, 1997) and completed a Master in Marketing Management program at the Vlekho Business School in Brussels (1998). He acquires a Six Sigma Black Belt for product development and process improvement in 2006. 10 FEATURESⅡ Advanced Techniques for Efficient Satellite Communications Mark Dale, Vice President, Product Management, Comtech EF Data Introduction accurately estimate fade conditions on each Advanced signal processing can greatly side of the link. These estimates are then used increase the performance and efficiency of sat- to optimally control and balance RF power while ellite communications links, and can thereby maintaining a constant power equivalent band- lower the operating costs for military satellite width (PEB) at the satellite, further improving communication networks. link margins and/or enabling additional bandwidth savings. In one key example, innovations related to shared spectrum “Carrier-in-Carrier” (CnC) tech- Combined, CnC and ACPC can help maximize niques allow terminals on each side of a satel- the capacity of existing Government satellite lite link to share the same spectrum on a tran- resources, such as the Wideband Global sponded satellite, improving efficiency. SATCOM (WGS) network and/or minimize commercial leased bandwidth costs. In times of uni- CnC processing in turn enables further perfor- versal Government budget constraints, such mance enhancement in the area of RF power tools are becoming ever more relevant and control. Recently developed Automatic CnC important. Power Control (ACPC) techniques realize this potential. Unlike traditional modem based power control techniques, the ACPC approach uses knowledge gained in CnC processing to Carrier-in-Carrier Architecture and Algorithm In single-carrier-per-channel (SCPC) satellite communications, two modems communicate by simultaneously transmitting and receiving signals. A simplified high-level architecture is shown in Figure 1. Modem #1 and Modem #2 transmit (or uplink) signals S1 and S2 respectively. The satellite receives, transponds, and Figure 1. Satellite Communication Architecture retransmits (downlinks) the composite signal. 12 Q4•2012 Quarterly Newsletter Figure 2. Signal Spectra with and without Carrier-in-Carrier tracks changes in these parameters as they are in general, time- given target level. In order to make an apples- tional link margin and/or bandwidth savings varying in a satellite link. to-apples comparison when CnC is used, the benefits by enabling optimal power control on composite CnC carrier is also constrained to this the CnC link. The resulting estimate of the unwanted signal is then subtracted same target level. This means that the spectral from the composite signal. In practical applications, the estimate of levels of the individual components within the Environmental factors such as rain affect the the unwanted signal can be extremely accurate. Typically attenua- CnC composite signal must be lower, and hence power levels and SNRs of the carriers received tions of the unwanted signal of over 25 dB have been achieved in have a lower signal-to-noise ratio (SNR). In at the satellite, and at the ground terminals. In commercial products. This results in 0.3 dB or less in typical demod- order to maintain the same link margin for the general, rain can occur on either side of the link, ulation performance degradation. individual CnC carriers, a more robust combina- and when present, affects both the uplink and tion of modulation and forward error correction downlink on each side. (FEC) is used in conjunction with CnC that sup- Analysis of Potential CnC Bandwidth Reduction ports operation at this SNR. The exact band- Starting with a pair of candidate non-CnC carriers, the amount of width savings are calculated with knowledge of bandwidth savings possible converting to a CnC link depends on the available modes of operation in the modem. power utilization on the satellite. The bandwidth savings can be as Figure 3 illustrates a specific numerical example The downlink signals S1* and S2*, received at Modem #1 and high as 50% when the candidate carriers are “bandwidth limited” where these conditions are achieved for an Modem #2 differ from the transmitted signals primarily in terms of on the satellite (i.e. there is excess RF downlink power that was not example product. In the example shown in gain, phase, frequency, and delay offsets. being used by the candidate carriers). Figure 3, the non-CnC carriers use 8PSK modu- Figure 3. Carrier-in-Carrier Signal Procession Block Diagram lation with a code rate of 7/8 turbo product Figure 5. Satellite Link Showing Uplink and Downlink Rain Losses In traditional satellite communication links, the uplink signals S1 However, in the more typical case, the candidate carriers are code (TPC) FEC. This example is selected in part and S2 use different center frequencies, which are separated ade- “power limited” (i.e. the carriers are using all of the leased satellite because is a very common operational mode quately such that the signal spectra do not overlap. This is illustrat- RF power assigned them). An example of this situation is illustrated often used in US Government MILSATCOM tac- In clear sky conditions, carriers are typically ed in the left picture of Figure 2. In the CnC approach, the uplink sig- in Figure 4. tical terminals. The CnC case matched to this assigned a power equivalent bandwidth (PEB) on nals share the same signal spectrum (the same “channel”). This is modem uses 8QAM modulation with a rate 2/3 the satellite. It is important that during rain face illustrated in the right picture of Figure 2. Since the power of the Low Density Parity Check (LDPC) FEC. With the conditions, any power control activity by the two uplink signals are added together to form the composite signal composite signal set to the same target level, modem not result in excess PEB being used. In it is important to note that when CnC is used the power spectral the relative performance of these modes are general, to achieve this objective the rain losses density (PSD) of the composite signal is higher than the individual such that the the individual CnC carriers have on each side of the link need to be known. components. In the right picture of Figure 2, the green line repre- the same (or slightly better) link margin relative sents the composite signal; the red lines represent the individual to the non-CnC case. As seen in the Figure, the In a traditional non-CnC link, the modems alone components. CnC composite carrier occupies 34% less satel- do not have enough information to uniquely lite bandwidth (2.76 MHz vs. 4.21 MHz in the determine the loss terms LU1, LD1, LU2, and LD2. The modems share the same spectrum by removing (canceling) the specific numerical example). This is a typical However, in a CnC link, each modem receives unwanted signal from the received composite signal. This is accom- result. The bandwidth savings depends on the and processes a downlink composite carrier plished by using a local copy of the transmitted signal to calculate available modem operating modes, but in gen- containing both carriers. In this case, in combi- an estimate of the unwanted signal from the composite. This pro- eral, bandwidth reduction achieved by CnC in nation with generic rain model knowledge, the cess is illustrated conceptually in the case of Modem #2 in Figure 3. power limited links ranges from 25% to 40%. modems have sufficient information to uniquely determine and track changes to each of the loss Specifically, Modem #2 transmits S2 and receives the composite signal S1*+ S2*. The interference cancellation algorithm uses the terms. Figure 4. Illustration of CnC Bandwidth Reduction in Power-Limited Scenario composite signal and the local copy of S2 to estimate the necessary Automatic CnC Power Control (ACPC) Once the loss terms are known, the ACPC algo- parameters of scaling (complex gain), delay offset, and frequency / As illustrated in Figure 4, using all of the allocated satellite down- In addition to CnC’s direct advantages, CnC rithm conceptually compensates for the loss phase offset to estimate the signal S2*. The algorithm continuously link RF power is equivalent to the signal spectral density reaching a technology can be leveraged to provide addi- terms in a two step process. First, the modems 13 14 Q4•2012 Quarterly Newsletter can compensate for the uplink loss factors LU1 and LU2 by increasing the transmit RF power appropriately on each side of the link, within the constraints of the available terminal RF power. This maintains constant PEB on the sat- Figure 7. CnC Ratio in Composite Carrier ellite, and eliminates the detrimental effect of LU1 and LU2. 0 0 0 0 0 0 Link Margin (dB) Clear Sky T1/T2 4 5 6 7 8 9 ±3 ±3 ±3 ±3 ±3 ±3 4 5 6 7 8 9 R (dB) Clear Sky During the initial link set-up, the clear-sky link In all cases, the minimum possible improvement T1 or T2 T1 or T2 T1 or T2 T1 or T2 T1 or T2 T1 or T2 Minimum Link Margin Improvement (dB) 2.1 2.3 2.4 2.5 2.6 2.7 Worst Case Side Worst Case Side Worst Case Side Worst Case Side Worst Case Side Worst Case Side 1.1 1.3 1.4 1.5 1.5 1.6 The combination of CnC and ACPC achieve the Rain margins for each terminal should be set equal Figure 6. Logic Flow for ACPC Algorithm Because of the presence of downlink losses to each other. The ratio of carrier PSDs that LD 1, and LD 2, simple compensation of uplink makes the link margins equal at each terminal attenuation may not optimize the overall link is the clear-sky CnC ratio, R. In the case where availability. In order to optimize availability, in the terminals have equal antenna sizes, use the the second step the modems rebalance the link same modulation/FEC operating modes, and by changing the relative transmit power of each have satellite parameters such as G/T and EIRP modem, while keeping the PEB on the satellite that are equal towards each terminal, the constant. Figure 6 illustrates the ACPC algorithm logic flow: expected value of R = 0 dB. That is, in this “symmetric” case, the PSD levels at the satellite that result in a given margin are the same The optimal power control ACPC algorithm can for each terminal. dramatically improve overall link availability. Table 1. Minimum ACPC Link Margin Improvements (Ku-Band) is significant. As seen in the Tables, ACPC improves the link margin by at least 1 dB in any situation, and can increase the link margin up to nearly 9 dB. Conclusions virtuous combination of reducing required satellite bandwidth, and simultaneously improving the link margin and availability. CnC enables bandwidth reduction of 25% to 40%. The addition of optimal power control Link Margin R (dB) (dB) Clear Clear Sky Sky T1/T2 0 8 0 10 0 12 0 14 0 16 0 18 ACPC technique to CnC links adds between 1 T1 or T2 T1 or T2 T1 or T2 T1 or T2 T1 or T2 T1 or T2 Minimum Link Margin Improvement (dB) 5.8 6.4 7.0 7.6 8.2 8.8 Worst Case Side Worst Case Side Worst Case Side Worst Case Side Worst Case Side Worst Case Side 4.2 4.8 5.4 6.0 6.6 7.2 the future. Hence ACPC combined with CnC has Rain and 9 dB of additional margin in typical use cases. The maximum ACPC performance gains are realized in Ka-band operation, and hence are especially important in these applications. Exact quantification of the net affect depends It is important to note that parameters such as on link parameters of the specific terminals and different sized terminal antennas on the ground, satellite. Worst case (i.e. minimum possible) and/or different satellite G/T and/or EIRP improvement can be characterized as a function towards each terminal can make the optimal of parameters that are known or can be readily clear sky value of R not equal to 0 dB. Typical measured or calculated for a given link. The clear-sky R values are in the range of ± 3 dB for most important parameters in determining the most practical systems, and can be calculated minimum improvement in link margin include by using link budget analysis tools, and/or mea- clear sky link margin and clear sky Carrier-in- sured directly from the modems during the ini- Carrier ratio, “R”. tial link set-up. Clear Sky Link Margin: This is the link margin Table 1 shows the minimum Ku-band link mar- achieved in clear-sky conditions with the given gin improvement realized by using ACPC over a satellite and ground terminal equipment. This range of typical values of clear sky link margin, can be estimated by standard satellite link cal- and clear sky CnC ratio. Table 2 shows the same culation tools, and/or measured directly in oper- data for Ka-band operation. Depending on ation. For optimal satellite utilization, the clear- which side of the link the rain is occurring and Mark Dale sky link margin corresponds to the link margin other factors, the ACPC link margin improve- Arizona, where he works to define satellite communication products for Government applica- achieved at each terminal when the PEB on the ments will often be greater than shown in Table 1 tions. He has worked in the satellite industry for many years, and has contributed to the sys- satellite is equal to the occupied bandwidth. or Table 2. However, these tables represent the tems engineering, design, and implementation of many satellite communication products deterministic minimum improvements that will CnC Ratio: The CnC ratio R is illustrated in be realized over any operating condition in the Figure 7. bands of interest ±3 ±3 ±3 ±3 ±3 ±3 8 10 12 14 16 18 Ka-band capable satellites such as WGS are an important part of military satellite networks, and are expected to become more important in the potential to greatly benefit these networks. Table 2. Minimum ACPC Link Margin Improvements (Ka-Band) is Vice President of Product Management for Comtech EF Data in Tempe and systems. Prior to joining Comtech, he worked at Lucent Technologies, Broadcom, and Viasat. He has an MSEE degree from the Georgia Institute of Technology, and a Ph.D. in Electrical Engineering from the University of Southern California. 15 16 FEATURESⅢ 2012: A Milestone in the History of Military Satellite Communications on Commercial Satellites Don Brown, Vice President, Hosted Payloads, Intelsat General Corporation Intelsat IS-22 spacecraft with Australian Defence Force UHF Payload (Source: Boeing) There is a long history of collaboration between More than 36 years ago, MARISAT became the the commercial and government communica- pathfinder for dedicated military capabilities tions satellite industries. From the earliest days supported and flown by a commercial operator. of satellite communications, manufacturers of Intelsat General and its predecessor, COMSAT space systems have served both government General, operated the MARISAT L and UHF fleet and commercial customers. In the last 25 years, for the U.S. Navy from 1976 until the retirement however, as the communications satellite oper- of the last MARISAT in 2009. The success of ator community has become more and more MARISAT was followed by the launch of the robust, and the need for wideband satellite LEASAT UHF fleet for the U.S. Navy beginning communications for militaries has grown expo- in the late 1980s. Intelsat General still operates nentially, the role of commercial satellite opera- the last of the LEASAT fleet, LEASAT 5, provid- tors in the provision of military satellite commu- ing UHF communications over the Asia-Pacific nications has changed. region. Fully dedicated for military users, both MARISAT and LEASAT provided high quality, Commercial satellite operators have historically economical capabilities which utilized the effi- provided occasional “augmentation” to military ciencies of a large communications satellite systems. Today, however, commercial satellite operator. systems are an integral part of the communica- Intelsat IS-22 Spacecraft body integrated with Australian Defence Force UHF Hosted Payload, prior to attachment of solar panels. (Source: Boeing) tions portfolio of militaries worldwide. 2012 The real efficiencies of the commercial commu- was a watershed year in the use of commercial nications satellite operator community are in satellite communications by militaries, with the the procurement, as well as the management successful completion of a full decade of com- and operation, of communications satellite sys- mercial satellite communications in the service tems. Over the last decade, the vast majority of of Coalition forces in Afghanistan and Iraq, and wideband communications used by Coalition with the launch of a significant tactical commu- forces in Afghanistan and Iraq were provided by nications system for the Australian Defence commercial satellite operators using commer- Force on a commercial Intelsat satellite. cial C and Ku band transponders. At the height of Coalition operations in the Mid-East, the U.S. 18 Q4•2012 Quarterly Newsletter Don Brown of Intelsat General with IS-22 spacecraft and Australian Defence Force UHF Hosted Payload, in Boeing High Bay, December 2011 (Source: Boeing) Illustration: Intelsat Satellite, with UHF Hosted Payload, at Boeing factory checkout. (Source: Boeing) 19 Defense Information Systems Agency (DISA) data. The commercial satellite industry has approach is an accurate understanding, by government space and In 2012, the efficiency of the hosted payload value proposition was estimated that over 90% of the wideband satel- space, ground, and control infrastructure to sup- budget planners, of the true life cycle cost of dedicated space sys- conclusively demonstrated by the launch and initial operation—on lite communications in the theater of operations port the burgeoning broadband requirements of tems, including the cost of spacecraft procurement, launch costs, time and on budget—of a UHF payload for the Australian Defence were provided by commercial operators. Today, global military and national security organiza- training of personnel, and the significant infrastructure required to Force (ADF) on an Intelsat commercial satellite. At the inception of even with the drawdown of troops in tions. Rather than design and build a satellite fly and to operate space systems over their entire useful life. The the ADF UHF payload contract, in 2009, the Defence Minister of Afghanistan, and after the end of combat opera- (or an entire architecture) for moving informa- true cost of a dedicated satellite system is not the cost of the Australia said, “The contract leverages an opportunity for Defence tions in Iraq, commercial operators are provid- tion, governments worldwide are leveraging the spacecraft alone! to share a commercial satellite at significant cost and schedule sav- ing the majority of the wideband satellite com- infrastructure of commercial satellite operators munications used by the military. by pursuing a hosted payload. ings compared to a dedicated satellite.... Compared to launching its Commercial partnership enables governments to leverage the sub- own satellite, Defence will save over $150m through this initiative stantial investment made by satellite operators in each of the ele- and is a good example of the types of reforms required to ensure Increasingly, broadband communications are The key to success in determining the role of ments – specification, procurement, build, launch, and operations- the most efficient use of Government finances.” (Press release by essential to the functioning of modern militar- commercial systems in military satellite commu- -required to efficiently manage modern space systems. In some the Minister of Defence, Australia, May 2009) ies. The enormous space and ground infrastruc- nications is a realistic view of the existing com- cases, such as command-and-control, exclusive military communica- ture built by the commercial satellite industry mercial infrastructure and what functions the tions networks and usage are essential. In other areas – including In March 2012, less than 3 years from contract inception, the ADF offers military operators worldwide ubiquitous, commercial satellite industry performs especial- many forms of voice, data, and video – it may make sense to estab- UHF hosted payload was launched into orbit on the Intelsat IS-22 cost-efficient transmission of voice, video, and ly well, and asking whether it makes sense to lish close partnerships with commercial industry, rather than trying spacecraft. The system is in operation today, as specified, providing rebuild that same infrastructure or duplicate to “reinvent the wheel” or rebuild a similar network that performs tactical communications to the Australian Defence Force. In an inde- that function for exclusive military use. the same basic functions as the commercial equivalent. pendent study of the ADF hosted payload procurement, The Governments are discovering that, just because Avascent Group found that the Australian government enjoyed sig- dedicated satellite systems have traditionally One key distinction is the amount of specialization, or uniquely gov- nificant cost and schedule advantages by choosing a commercially provided military satellite communications, this ernment or military features, which are desired in a satellite com- hosted payload. is not a reason to ignore the significant efficien- munications system. Another is the “ownership” of a communica- cies offered by leveraging the mature commer- tions satellite asset. In space, “ownership” can be defined, in a cial space industry. In traditional military fre- practical sense, by the extent of control one has over the operations quency bands – UHF, EHF, and now military Ka – of the space asset. commercial systems are being operated or developed to bring commercial efficiencies to Hosted payloads are an elegant solution for both cases. Hosted pay- military satellite communication. As MARISAT loads are dedicated government systems or capabilities “hosted” on and LEASAT have shown over the last 30 years, commercial satellites. Hosted payloads allow governments to speci- there is no reason that communications in tradi- fy unique requirements, and to maintain ownership and control of tional military frequency bands must be operat- their space capabilities, while obtaining the efficiencies of commer- ed by the military organizations themselves. cial satellite procurement and operation. Commercial satellite operators such as Intelsat have significant economic leverage with the In Europe, Astrium Services (formerly Paradigm spacecraft manufacturing industry, due to the volume of spacecraft Secure Communications) operates the Skynet which commercial operators such as Intelsat procure. military satellite system on behalf of the British Source: The Avascent Group Ministry of Defence via a long-term agreement. Commercial satellite operators also have, as a core capability, effi- The Skynet 5 spacecraft operates in X and UHF cient procurement management teams overseeing the acquisition of As described in the accompanying graphic, the hosted payload was bands, and is military hardened systems. The complex space systems. Hosted payloads allow governments to the least expensive way to meet ADF’s UHF communications Skynet satellites were designed, built, and take advantage of the commercial operators’ economic leverage, requirements. The Australian Government saved $150 million USD launched by Astrium. and procurement efficiencies, by sharing the cost of the spacecraft compared with procurement of a free-flyer UHF spacecraft and, bus procurement, launch, and operations across both commercial according to The Avascent Group study, $613 million USD compared and hosted government systems. with equivalent leasing structures over the life of the system. A persuasive element for a commercial 20 Quarterly Newsletter The Avascent Group analysis projected a direct free-flyer UHF leasing rates, although changes in supply or demand might change spacecraft program cost of $465 million in US dollars, including this over time. spacecraft bus and payload ($200M), spacecraft launch ($115M on a Ariane V or Proton), ground infrastructure ($50M), program overhead As shown in the graphic above, The Avascent Group also found that and operations ($50M), and insurance ($50M). According to the Australian government saved at least an additional 12 months Avascent, the $465M reflects the fact that payloads for UHF space- of acquisition time by leveraging Intelsat’s mature acquisition orga- craft are less common than Ku or C band frequencies, thus increas- nization and choosing a commercially hosted payload. Commercial ing the expected payload costs. Dividing the direct cost of the dedi- leasing, if available, provides the fastest access to capability, but cated program by the 20x25kHz UHF channel capability, and then does not offer the economy or assured access provided by a govern- again by 15 years of operations, and the cost derived is $1.55M/ ment owned hosted payload. year for each 25 KHz UHF channel. Beyond the economic and schedule advantages of hosted payloads, The ADF UHF Payload program cost was projected by Avascent there are architectural advantages to hosting government and mili- based on the published ADF cost of the fixed price contract in 2012 tary capabilities on commercial systems. The large, diverse popula- USD ($317M), divided by 20 channels and then again by 15 years of tion of commercial satellites offers a means to disperse capabilities operations which yields just over $1M/year for each 25 KHz chan- across the globe to provide resilient communications capabilities, nel. The $317M USD figure was converted from Australian dollars offering an architecture which is based on many spacecraft, as and adjusted for currency exchange rate fluctuations since the origi- opposed to the traditional dedicated military satellite system con- nal contract was signed in 2009. sisting of a handful of high-value assets. The leased cost analysis assumes a spot rate of $3.1M for a one- As the demand for communications in service of governments year lease of a 25KHz channel. That is reflective of prevailing UHF increases, the role for commercial operators will become more essential and complex. Commercial operators will continue to provide commercial C, Ku, Ka, L and X band services to governments worldwide. But the success of hosted payloads, demonstrated by the Australian Defence Force in 2012, will lead the commercial satellite industry to build more specialized systems for governments and militaries globally. Many governments are faced with the combined threat of budget constraints and increasing requirements for communications. The commercial satellite industry has a unique role to play in providing governments new solutions to this dilemma, and hosted payloads will be a key element of the commercial satellite industry’s Source: The Avascent Group increasing role in military satellite communications. Don Brown is the Vice President of Hosted Payloads for Intelsat General Corporation, a subsidiary of Intelsat, S.A., the world leader in commercial satellite infrastructure and solutions. Brown leads a team which integrates dedicated government communications, navigation, sensor and scientific systems aboard Intelsat spacecraft. Brown has more than 20 years’ experience in satellite communications. Prior to the merger of Intelsat and PanAmSat in 2006, Brown was Vice President of DoD Systems at PanAmSat’s G2 Satellite Solutions. Brown has held senior positions with American Mobile Satellite Corp., the Federal Aviation Administration, USA Today Sky Radio, and in the Satellite Systems Division of Federal Express Corporation. Brown has served on the Satellite Task Force of the National Security Telecommunications Advisory Committee to the President of the United States and has served as Co-Chair of the Government Services Working Group of the Satellite Industry Association. He is a graduate of Princeton University. 22 INTERVIEW Q4•2012 Interview with David Ball, Chief Technology Officer, NewSat 23 the past financial year our revenue grew 29% and we have now more than doubled our profit. We also kicked off the new financial year with the Company’s largest individual contract, US$8.59 million, for the Wheatstone Project. The Wheatstone Project is one of the world’s largest LNG projects located off the North Western region of Western NewSat’s secure Teleport in South Australia, provides mission critical communications to the US military in the Middle East. Australia. The teleport business is very crucial for us as it provides a valuable recurring revenue stream for NewSat and enables us to maintain and grow the relationship with our existing customer base prior to the launch of Jabiru-1. This year we were named top 3 Finalist in the Independent Teleport of the Year category at the World NewSat's Jabiru-1 Ka-band satellite which will provide "new" capacity over the Middle East, Asia and Africa. Teleport Awards in Washington DC, NewSat’s two Australian teleports being recognised as the best in the Asia-Pacific region. Obviously we have the MEASAT payload which has been announced You have been involved in the satellite industry for over 25 years, what do you think the biggest change in the industry has been over the last decade? The Jabiru Satellite Program is well underway driven by high over South Asia and South East Asia for MEASAT’s customers and demand for satellite capacity. To date NewSat has signed US$601 MEASAT’s expansion. However, if we look at NewSat’s business, million in binding pre-launch contracts for Jabiru satellite capacity, Jabiru-1 has a trunking payload linking Adelaide, Perth and the including customer contracts with MEASAT and TrustComm. Mediterranean into the Middle East, South Asia and the East Africa Funding for the Jabiru-1 satellite project continues to progress region with a 24 multi-spot beam pattern providing connectivity for favourably, as NewSat has secured approximately two thirds of the applications in and out of that area. Jabiru-1 also has a number of funding, US$380 million, via export credit agency debt funding from regional beams over Afghanistan, Pakistan, the Middle East and the US Ex-Im Bank and COFACE. East Africa allowing domestic communications for enterprise servic- The biggest change in the industry is probably digital video compression, which has seen the industry es broadcasting and VSAT connectivity. Finally, the satellite has a move from transmitting one analogue channel per transponder to transmitting multiple digital chan- couple of steerable spot beams which we can move around over the Jabiru-1 is Australia’s first next generation Ka-band satellite, how is the project progressing? whole visible earth to provide services to customers as new markets We have selected international industry leader Lockheed Martin to The Jabiru-1 satellite features a very flexible payload. A satellite as On the telecommunications side of the business, there have also been significant advances in ground build the Jabiru-1 satellite. The project build started in December large as Jabiru-1 can take some time to build, but once completed, will VSAT technology with more efficient error correction and ACM coding technologies. The cost of 2011 and it is progressing very well, and in June achieved a signifi- provide enormous benefits and flexibility throughout its on-orbit life. remote terminals has also dropped significantly, enabling satellite services to be delivered to remote cant construction milestone with the completion of the Preliminary and rural users in a more cost-effective manner. Design Review. nels on a single transponder. The digital compression technology itself has evolved significantly over this time with more efficient encoding algorithms enabling better quality digital signals in smaller emerge or as demand requires. amounts of capacity. On the launch side, we have selected Arianespace out of Europe to 2012 has been an exciting year for NewSat, can you tell us a bit about what has been happening? One of the major milestones achieved over the past year has been the deal with Cyprus to secure 8 be our launch vehicle provider. Arianespace is the most reliable Is the Asia-Pacific region a key growth area for NewSat? What are NewSat’s current strategies in this market? launch provider in the world and given Jabiru-1 is a very large satellite we will fit well on their launch vehicle. Jabiru-1 will be launched Jabiru-1 is anchored out of the Asia-Pacific with our teleports here from the Guiana Space Centre in French Guiana in late 2014. in Australia along with the MEASAT services on that satellite. We orbital slots. The securing of orbital slots is the greatest barrier to entry in this industry and the con- have just announced Jabiru-2 with the MEASAT 3b payload which tract with Kyprosat was a great achievement for NewSat because it allowed us to take control of our will serve Australia, Timor Leste and Papua New Guinea. This is an destiny as to where we are going next. All the pre-launch achievements made by our sales team have really enabled us to progress the Jabiru-1 project. Which regions and markets will the Jabiru-1 satellite focus on? enhancement of our existing business to provide additional capacity and assurance of capacity supply over the region. From the teleport side, we have a lot of antennas looking at existing regional satel- We have continued to put much focus and effort into expanding the existing teleport business. Over There are three separate payloads on the Jabiru-1 satellite. lites so expanding their reach and continuing to build that business 24 Q4•2012 Quarterly Newsletter The Jabiru Satellite Program's fleet of Ka-band satellites will deliver high-powered Ka-band coverage for high demand government and enterprise environments around the world. 25 ple, the iPhone you carry around today bears no resemblance to the and delivery expertise. Today, NewSat is a rapidly growing ‘brick’ you used to carry around in the 80s and 90s. I do not think the Australian specialist satellite communications company on the satellite industry has done the best job it could do in keeping up verge of realising its long term vision to become a global satellite with the mobile sector or evolving generations of ground equipment. network operator. As an industry I think we have made it very hard for people to 2013 is really about executing NewSat’s vision. While our satellite access satellite services; we have had a tendency to complicate the is being built, our team is working closely with Lockheed Martin buying process. Something for the industry to focus on is how to every day, helping them define any open issues and answer detailed make it easier for IT managers and communication managers at questions regarding the satellite configuration. Our sales pipeline is enterprises to choose satellite over a terrestrial solution. looking very promising and the sales team is expanding, with offices across the Americas, the Middle East, Asia and Africa. We are also closing off the funding shortly and looking to get other satellites What is in store for NewSat in 2013? under way. There are a number of orbital positions in the fleet that we need to fill and then there is a lot of ground-system architecture is very important for us. We have secured a number of orbital posi- the digital divide issue by bringing broadband into the remote areas tions, some of which are over Asia, so the next challenge is to work of these countries – there is tremendous pressure on governments out which positions we will fill out next and how we will continue to provide telecommunications services into remote areas. That is to build out that business with the new orbital locations. where I see a lot of intra-country applications emerging which will In 2002 NewSat was a satellite “solutions provider”, generating we need to put in place for Jabiru-1, so there are plenty of things to customer acquisition and retention skills along with solution design keep us busy. Jabiru-1 will provide high-powered Ka-band coverage over the Middle East, Asia and Africa and Jabiru-2 will provide highly targeted Ku-band coverage over Australia, Timor Leste and PNG. use satellite and the cost-effective remote VSAT terminals as an enabling technology. What do you believe are three growth areas in the satellite industry? Mobility is one of the key growth areas in the satellite industry. We have seen a number of small steerable antennas become available What do you believe are three threats to the satellite industry? on the market and Ka-band obviously lends itself to that very well. I think the biggest issue we have to watch for is spectrum because it Another area of key focus is content distribution. There has been an underpins the whole industry. If we do not protect our spectrum our increase in niche content demand by customers so I see much more industry will suffer. We have already seen how the terrestrial lobby growth in content distribution over satellite, where satellite has a has tried very hard to remove extended C-band frequencies and competitive advantage over point to point terrestrial distribution. there will be continued world pressure on that (and other frequency bands) at future World Radio Conferences. As an industry we need Another growth area for satellite is extending the reach of fibre. to remain focused on those lobbying efforts, as well as doing our Recently we have seen major optical fibre projects commence ser- own lobbying, to ensure that we keep the spectrum we need. vice into major cities along both coasts of Africa. The challenge David Ball has spent 25 years working in the telecommunications, media and technology sectors with a significant portion of his career specialising in satellite communications. Prior to joining NewSat, Mr Ball was the Regional Vice President for the Asia-Pacific Region for Intelsat and held the same position for PanAmSat telecommunications, service providers and governments now face is Another thing we have to be aware of is that our industry needs to prior to the merger between PanAmSat and Intelsat in 2006. David joined NewSat in April 2011 as the company’s Chief Technology Officer and has been instrumental how to move that capacity from the cable landing stations in capital keep changing and innovating. If you look at the mobile phone sec- in the strategy and development of the Jabiru Satellite Program’s first satellite Jabiru-1, which will deliver high-powered Ka-band coverage across the Middle East, cities and into the outer areas of each country. This means solving tor, it has changed tremendously in the last 15 years. As an exam- Africa and Asia. 26 FOCUS ASIA Asia: The Next Hub of Government and Military Satcom Markets Claude Rousseau & Jose Del Rosario, Senior Analyst, NSR According to official U.S. Congressional documents, a plateau of 300,000 U.S. soldiers and operation support troops were involved in Operation Enduring Freedom in Afghanistan and Operation Iraqi Freedom in fiscal year 2008. These two deployments required extensive amounts of satellite communications gear and bandwidth for various needs that dwarfed civil government needs. Narrowband satellite voice services to Blue Force Tracking (BFT), comms-on-the-move (COTM) down to the battalion level, fixed VSAT for welfare services, high-bandwidth UAVs for intelligence, surveillance and reconnaissance (ISR) were all part of this mix of services. This led to billions of dollars in contracts for the satellite industry in successive waves, both of which will be a distant memory in less than 24 months. This impending pull-out coupled with the severe budget deficit situations of much of the Western economies is certain to be a major driver for the procurement of satellite services in the government and military market for the coming years. But in the very complex and asymmetric threat environment of today’s geopolitical landscape, even if it is still quite clear that a continuing, well-identified national security need exists for satellite systems, the replacement of boots-on-the-ground with other users of satellite capacity will be difficult to assess, even if some point to troops’ presence at potential hotspot in North Africa or South-East Asia. Demand Drivers in Asia If we look at the impact of this ambiguous environment on Asia, we can look at the past twelve to eighteen months to get a glimpse of the future landscape and in particular, the way the U.S. government, the largest user of commercial satellite bandwidth, will act to assess the response to the drivers noted above. Several high-level visits to five countries in the Asia-Pacific region by the U.S. Administration a few weeks after the 2012 U.S. Presidential elections, from the President himself to the Secretary of State Q4•2012 Quarterly Newsletter and down to the Defense Secretary, sent a clear marine and oil resources. As Chinese officials umbrella such that a commercial operator Companies such as NewSat (Jabiru-1), message about America’s top-level foreign poli- have alluded to, they will strengthen marine would run the program including manufacture, SkyPerfect JSAT, GazProm Space Systems cy: it is ‘pivoting’ diplomatic and military efforts surveillance and step up efforts to enhance launch, operation, and decommissioning, or (Yamal 300K), Telesat (Anik-G1), Thaicom to Asia for the foreseeable future. observation from unmanned platforms over this simply continue to lease capacity from commer- (Thaicom-6), Inmarsat (Global Xpress), Iridium disputed region. This can only lead to more cial satellites. (NEXT), Eutelsat (GE-23), SES (SES-8 & -9), and Last summer, the Defense Secretary said that increases in surveillance of the maritime the U.S. focus on the Asia-Pacific for the com- domain, and was evident in October 2012 when It is a coin toss depending on where one sits capacity available over the region in the next ing years includes higher number of U.S. mili- Chinese UAVs patrolled the disputed Spratly but it is clear that this program is meant to gain decade. As proprietary satellites are built and tary personnel, warships and assets in the Islands between mainland China and the more independence in space in the face of launched in Asia, the demand for straight region. This translates in more than 60% of Philippines, giving by rebound more fodder to increased threats over the past five to seven capacity on commercial satellites is likely to be U.S. Navy ships will be stationed in the Asia- the justification of an Asian pivot strategy by years from North Korea, which launched long- hit, mostly for Ku-band demand. But there will Pacific region by the end of the decade. the U.S. range rockets last spring over the North Pacific. still be numerous customers to address in the Japan used the launch as an argument to region, notably in emergency communications, Japan is not sitting idle either with a bid to launch two military surveillance satellites and capacity leasing, comms-on-the-move (COTM), grown their ties with the U.S. as part of this secure $2.4 billion for two military satellites also built a case with it for anti-missile radar comms-on-the-pause (COTP) and narrowband strategy, notably Australia and New Zealand. that will either supplement or replace current and anti-missile missile launchers. mobile satellite services, notably for machine- The former saw a force of about 2,500 U.S. commercial satcom leases. The leases are cost- Marines stationed in the Northern Territories to ing Japan ¥6 billion ($76 million) every year and Other nations such as India are not staying put conduct training with Australia’s Army and uses among others X-band for its units active in either with respect to owning military satellite other South East Asian countries’ partners. the Northwest Pacific all the way down to the that will give them independence from commer- And for many, the increasing needs for band- Indian Ocean but lack the control and highly- cial and civil infrastructure. With its GSAT-7 width means the high-throughput satellite (or secured nature desired by Japan’s Ministry of satellite currently undergoing testing, India will HTS) value-proposition is well-regarded in Asia. Defense. launch in 2013 a multi-band service for the Already, iPSTAR, the sole provider of HTS Amidst this picture, countries such as the Indian Navy to communicate with its subma- capacity in the region has begun to establish Philippines, Taiwan, Vietnam and South Korea rines, frigates, destroyers and aircraft from their inroads in the government market. There are Role Players Emerging 29 Intelsat (IS-33e) to name a few will increase Already, countries in South-East Asia have to-machine (M2M) that will help grow X- and Ka-band as well as L-band services. are fighting another battle with the Chinese More Native Satellites Launching bases onshore. Its close neighbor, Sri Lanka has still no publicly announced military deals but in government for territorial rights and recognition Japan has to consider if it wishes to operate ordered its first native satellite, SupremeSat-3 the civil government side, the company has in the South China Seas, a region chockfull of the satellite in a public-private partnerships to China Great Wall Industry Corporation been active since 2008. (CGWIC) for $300 million. The satellite will launch in 2015 with a C-,X- and Ka-band pay- GMSC Asia COTM UAV Transponder and Bandwidth Demand by Frequency Band CGWIC-built PakSat-1R which launched in 2011 4 X-band Ku-band HTS(Gbps) 30 2 10 1 2011 2012 2013 X-band Ku-band Ku-band Ku-band 30 3 20 0 40 for Pakistan. 2014 2015 2016 2017 2018 2019 2020 2021 0 Source: NSR Growing Needs Means Bigger Satellites Still, the case of Japan is not isolated and the make-or-buy decision of many governments in 36 MHz TPEs 40 GMSC Asia Bulk Leasing Transponder Demand load and follows on the heel of the successful 5 Gbps 50 36 MHz TPEs 28 20 10 Asia regarding their satellite communications need will be made alongside many commercial satellite initiatives that address both government and military communications needs. 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: NSR Q4•2012 Quarterly Newsletter GMSC Asia in-Service Units by Application 120,000 X-band Ku-band Ku-band Ku-band 90,000 In-Service Units 30 30,000 2011 2012 continue and increase as this disaster prone the SCADA/M2M niche where bandwidth region and more active government ICT program requirements are beginning to increase, even if initiatives require more bandwidth for lower narrowband units form the majority of this dom- costs in support of mission critical operations. inant segment on the equipment side. In New 60,000 0 Moreover, an emerging market proposition is 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: NSR Zealand for instance, the National Institute of The Bottom Line Water and Atmospheric (NIWA) ran a trail using With the U.S. Pivot towards Asia and the need Inmarsat BGAN M2M, designed specifically for to save on costs, HTS and other commercial backhauling data from M2M applications that capacity will likely become a larger part of the include environmental monitoring and observa- solution mix for the U.S. as well as national tion, information management, and delivery of governments in the region that will surely need interoperable environmental data. With its to coordinate and integrate with the “Netcentric upcoming GlobalXpress, Inmarsat is likely to Warfare” architecture as the region becomes leverage these requirements and run applica- the next hub for government and military satel- tions on its HTS system. Over time, military and lite capacity demand. civil government entities can take advantage of HTS throughput and cost advantages for even Meeting Asia’s Needs with HTS Capacity Government service has been deployed in the higher-bandwidth applications that include region as well. China Satcom connected a CCTV to secure key installations. These include In the area of disaster recovery and emergency weather station in Xigou where satellite-based military facilities, dams, government-owned communications for instance, IPSTAR was used VoIP enhanced the telephony system enabling power plants and other key infrastructure. in the aftermath of Cyclone Nargis and the meteorologists to make unlimited, free or inex- Sichuan earthquake that hit Myanmar and pensive calls in reporting vital weather observa- Although it can be argued that currently, HTS China. The system was used by police as well tions in Urumqi and nearby cities. In the penetration is limited, it is NSR’s view that over in a search operation in New Zealand when a Philippines, the government's broadband con- time, temporary and long term use for programs Polish tourist had not returned for 3 days from a nectivity project, dubbed as “Jumpstarting including iPSTAR and upcoming systems such day trek in the Rimutaka Forest Park. It is worth Electronic Governance in Local Government as GlobalXpress and Intelsat’s EPIC are likely to noting that the solution is based on a comms- Units (eLGU),” is being implemented by We are on-the-pause (COTP) system where nomadic IT (WIT) for over 110 rural LGUs in the country. communications can be deployed quickly to Finally, a tele-health facility in Neak Loeurng, affected areas. Cambodia enable doctors and nurses to use broadband Internet to access online information Claude Rousseau has over 20 years of experience in the space sector, including program management, consulting, research, and administration. He serves as applications expert on satellite communications for NSR and is a key element of their presence HTS systems have been widely known to sup- on illnesses and to communicate with partners in Europe, Middle-East and Africa. Rousseau is fluent in French and English, holds a port VSAT or fixed services but as the examples and other medical workers via email. Bachelor of Science degree (B.Sc.) in Physics/Astrophysics from the University of above show, COTP via HTS has been available in Calgary, Canada, and a Master of Space Sciences (MSS) from the International Space University in Strasbourg, France. Asia and it will likely evolve towards comms-on- Education and Distance Learning is another long the-move (COTM) in the not so distant future. t e r m m a r k e t b e i n g t a p p e d b y i P S TA R . Key requirements supported by COTM include Installations include remote secondary schools Jose Del Rosario border patrols, special operations, maritime in Chiang Rai, Malaysia, the Lamitan National research in policy analysis, economic indicators, regulatory initiatives and end user security and aeronautical surveillance missions High School in the island province of Basilan, demand trends. Prior to joining NSR, Jose worked with USAID/Philippines, Frost & for military, environmental and scientific needs. Philippines, and the isolated Wangkapor Pittayakom School in the southern Thai province In terms of long term use, iPSTAR’s VPN for of Pattani. is a senior member of the consulting team and conducts Sullivan, the European Commission, the Malaysian Embassy, and the Law Offices of Irwin & Lesse. Jose holds an M.A. in Applied Economics from the American University, and a B.S. in Political Science/International Relations from the University of Santa Clara. 31 32 SATELLITE TRENDSⅠ Q4•2012 The Space Insurance Underwriting Cycle David Wade, Space Underwriter, Atrium Space Insurance Consortium Figure 1. Operational Satellites by Function Figure 2. Space Insurance Market Premium and Claims For most commercial space ventures, insurance represents the third largest cost of the project. Due to ance rates being charged and then as rates continued to fall lead to the market changing the coverage the cost of insurance, timing the purchase of the insurance policy becomes critical as rates can vary sig- on offer, and in particular extending the period of the insurance cover. Policies covering the launch of nificantly over the course of the space insurance cycle. In addition to trying to time the insurance pur- the satellite and the first five years in orbit became the norm. chase at the right point in the underwriting cycle is the added complication that the budget for the project was probably established a few years earlier. The estimated cost of insurance at the time of prepar- In such circumstances insurers had no visibility to the health of the satellite for the first five years of ing the budget could be significantly different to the cost of the insurance policy at the time at which it its life. In the meantime, numerous satellites of the same type were being launched each year. A rash is finally purchased. Catching the market during a period when competition amongst insurers is intense of spacecraft anomalies, and in particular the generic anomalies that affected numerous satellites of and insurance rates are falling can leave a healthy surplus in the budget. Timing it badly when rates are the same type, started to come to light in the years around 2000, see figure 2. The exposure that rising sharply can have a significant detriment on the budget and the cost of the project, and in the most insurers had allowed to build on these risks was sizeable, and for the first time, the exposure was extreme cases could result in more funds having to be raised to cover for the difference. long lived with a period of up to five years before coverage under the insurance policy would expire. There are however some simple steps that would reduce the criticality of the timing of the insurance The result was substantial losses, a significant amount of capacity leaving the space insurance mar- purchase; reducing the significant differences between rates at the high and low points of the under- ket, competition between insurers reducing, rapid rate increases and a reduction in the scope of the writing cycle and aiding the budgeting process for satellite operators. This article outlines some statis- insurance cover being offered. Any commercial satellite project which spanned this time saw the cost tics of the space insurance market, the insurance cycle and provides a discussion of the points that, in of insurance rise considerably against that which would have been budgeted a few years earlier. The the author’s opinion, could smooth the peaks and troughs of the space insurance cycle going forward. reverse is true of the past few years which have been characterised by a number of profitable years for space insurers and an increase in capacity as the importance of diversity of product lines offered by insurers is given prominence by the financial rating agencies. The Space Insurance Market Since 1957 approximately 6,000 spacecraft have been launched worldwide. About 1,000 of these sat- As rates have fallen over the past few years the premium income generated by the worldwide space ellites are still active today (see figure 1). As of January 2012 only 196 of the satellites were insured; insurance market has reduced. Despite premium income reducing, the amount of insurance being sought 26 in low Earth orbit; the remaining 170 in geosynchronous orbit. The total insured value of the 196 has risen as satellite masses have grown and complexity increased. Sums insured for individual satel- satellites stood at approximately US$ 22 billion. lites now frequently exceed US$ 300 million and in a number of cases US$ 400m. The insured value of dual launches now regularly tops US$ 500m and in at least one case exceeded US$ 700m. The loss of In the mid 1990’s the promise of a vast number of new commercial space projects resulted in insurers such a vehicle, and in addition the further loss of income as subsequent launchers are delayed whilst the entering the space insurance market. This had the effect of raising the amount of insurance capacity failure investigation is performed and corrective actions put in place, would likely push the space insur- available to be in excess of US$ 1 billion. With the supply of capacity far exceeding the demand for ance market into a loss position from a single event. The volatility of the space market has therefore insurance, competition amongst insurers was intense. The competition initially drove down the insur- been increasing in recent times and is currently at some of the highest levels ever experienced. 33 34 Quarterly Newsletter Where Do We Go From Here tors often request longer term coverage periods, of up to launch There is nothing unique about increasing volatility in the declining plus the first five years in orbit along with a three year period during part of the underwriting cycle. And there is nothing unique about which the launch can take place at the rates fixed at the time of the the space underwriting cycle itself; underwriting cycles occur in all policy being written. The reason given for seeking such coverage is classes of insurance business. As shown in figure 3, capacity enters that it assists the budgeting of the satellite operators, which is a market when the results of that market are good and the increase clearly beneficial. Space insurers are thus asked to make an eight in competition is sufficient to start a trend of reducing rates. Rates year commitment to the project (see figure 4). continue to fall even as losses start to accumulate but after a period of marginal returns some insurers will move their capacity to other more profitable classes of business. Market capacity will reduce and the combined effect of losses and reduced competition will drive up rates. Figure 4. Product Variation During the Underwriting Cycle There is nothing wrong with longer term periods per se, except that Figure 3. Claims, Rates and Capacity during the Underwriting Cycle when rates increase the same requirements with respect to the budget do not seem to apply. At the peak of the cycle satellites are Whilst this is a standard feature of all insurance markets, one char- typically insured just a few months ahead of launch and for launch acteristic of the space insurance market is that due to the values and the first year only. When buying insurance at the peak of the being insured, even a small change in the percentage rate charged cycle, satellite operators typically apply the strategy that rates will for the insurance coverage can equate to a significant change to the fall before the second year of cover is required, making it better to premium in terms of currency. Timing the purchase of insurance wait and see, rather than lock in to a long term period. therefore becomes another critical step in the project. In practice, such purchasing strategies, and in particular, insurers That said, there are a number of factors that can be identified as being prepared to offer such variations in the insurance product at being responsible for the significant differences between the low different points in the cycle, rewards the satellite operator at both points and high points of the space insurance underwriting cycle. the high and low points of the cycle and denies the insurer the pre- These factors are discussed below with proposals as to how the mium income at the peak of the cycle. As a result of these practices, effect on the swing in rates could be reduced to ultimately aid the when claims do start to mount, rates increase sharply; much more budgeting process of the satellite operators. than would be necessary if the market applied a standard product throughout the cycle. Standardise the Insurance Product Standardising the product, whatever the coverage period may be, Over the course of the insurance cycle, space insurers have allowed would therefore reduce the difference between the high and low the product they offer to vary. When rates are low, satellite opera- points, aiding the budgeting process for satellite operators whilst 36 Q4•2012 Quarterly Newsletter not disadvantaging the insurers. Over a period of time, the height of the peak of the rating cycle The importance of relationships applies not only to the insurer but insurance broker also. With rating would be reduced whilst the depth of the trough of the underwriting cycle could still reduce in levels currently being low and a lack of claims in recent years, it is easy to be lulled into a false sense response to a prolonged period of profitable underwriting years. of security that no losses will occur. Under such situations, satellite operators can be drawn into selecting a broker and underwriters on the basis of price alone with no consideration for other factors. The importance of the relationship should be given due consideration in the selection process. Coverage Periods As mentioned above, when rates are high, insurance is usually purchased just a few months prior to In summary, the space insurance market is currently profitable, although the volatility of the market launch. When rates are low, insurance is purchased much earlier in the lifecycle of the project in an has increased significantly in recent years and the market has reached a point where a single claim attempt to benefit from the low rates. Again, there is nothing wrong with this, except that the uncer- could result in a loss making year. In the event of a significant loss it is likely that the space insurance tainty of market movement associated with the longer term period when insurance is purchased some market would start to harden once again. Poor market practices have resulted in a situation whereby time in advance of launch is not accounted for. The rates that space insurers charge are typically the a significant loss event would likely result in a sudden and significant increase in rating. To reduce the same whether launch is taking place in two weeks time or two years time. This contrasts sharply with differential between the low and high points of the space insurance market cycle, which would aid the finance sector. Using a mortgage or loan as an example, rates can be fixed for various periods of the budgeting process of the satellite operators, a standard space insurance product needs to be time, but the longer the period, the higher the rate to recognise future uncertainties. introduced; recognition given to the time value of money associated with the period between when the insurance policy is written and the launch takes place and an appropriate level of differentiation In the space insurance market, when an event occurs that requires an adjustment to the insurance rat- applied to the less good risks placed in the market. Finally, the importance of the relationship ing, a number of policies are already finalised at rates that are substantially below that required post between insured, broker and insurer should never be underestimated. In the unfortunate event of a the event. The additional premium that is needed to meet the mounting claims has to be raised from a claim, nothing will be more important! smaller number of upcoming launches still waiting for their insurance to be placed meaning that the rates charged on those launches has to increase considerably. If rating recognised the market uncertainty associated with the period between the policy being written and the launch taking place, the rate increases applied following a market changing event would not have to be so great and again, the height of the peak of the rating cycle would be lessened. Differentiation The correct level of differentiation that needs to be applied between different satellite and launch vehicle combinations is subjective, but needs to recognise the previous experience of those vehicles, any new technology, first flight items or significant modifications to the heritage subsystems. In such cases, or in cases where a particular satellite or vehicle is responsible for a large proportion of the claims, satellite operators and insurers need to be realistic about the level of differentiation that should be applied. Instead there is a tendency to under-rate the least good risks. As a result, when an event occurs that requires rating to be adjusted, the rating differential is applied across all risks. Again, fully recognising the vehicles and satellites that contribute most significantly to the claims and rating them accordingly would assist in reducing the height of peak of the rating cycle, at least for the better performing satellites and launch vehicles. David Wade Relationships is the space underwriter of the Atrium Space Insurance Consortium (ASIC). Prior to ASIC, David taught satellite systems engineering at Kingston University and worked in the space industry on projects such as BADR-B and STRV. David holds a Finally, the very nature of insurance means that the satellite operator will only ever see the benefit of the degree in Aerospace Engineering, a Masters degree in Astronautics and Space product purchased in the unfortunate event of a claim. The strength of the relationship between opera- Engineering and graduated from the International Space University. tor, broker and underwriter at that point can be the difference between being able to discuss the claim amicably and a long drawn out process involving lawyers and arbitrators incurring considerable cost. 37 38 SATELLITE TRENDSⅡ Increasing Competition to Soften Maritime Satcom Pricing Wei Lee, Senior Consultant, Euroconsult The maritime satellite communications market has been active in the last few months. The announcement of Intelsat Epic service and the pricing changes of Inmarsat Existing and Evolved (E&E) services have become the key topics for maritime and the Satcom sector in general. Industry wide, in conferences and publications, we hear people discussing similar subjects, with commonly asked questions such as: Is Ku-band or Ka-band more advantageous? Is Epic or Global Xpress more cost effective? Will MSS vessels all migrate to VSAT? Is Epic or Global Xpress a game-changer? What will be the pricing for Epic? Is the new pricing for Inmarsat fair? And so forth. Indeed, each technology or business has its own foundations which help decide its strategy. In consequence, each service or business model draws different benefits and disadvantages to the end-user and service providers. Instead of comparing Epic and Global Xpress, or Inmarsat’s new pricing plan, I will focus on high-level considerations related to the cost components of maritime Satcom services. Satellite infrastructure stands as the most important cost component Satellite capacity is and will continue to be the most important cost component for maritime satellite communication services. It is largely determined by the nature of the satellite industry business model and high-level of capital investment for satellite operators. The business models for maritime VSAT (Very Small Aperture Terminal) and MSS (Mobile Satellite Services) are significantly different for both satellite operators and satellite service providers. In the MSS model, satellite operators devote themselves to developing and investing in end-to-end solutions, meaning that the operator designs both the satellite network architecture and standard of end-user equipment. In other words, the MSS model is pretty much a closed system, and end-user terminals from one operator are incompatible with networks from other operators. The VSAT sector is an open platform model where FSS (Fixed Satellite Services) satellite operators (such as Intelsat) design and operate satellites which can work with hardware from third parties. FSS satellite operators lease wholesale capacity in the form of dedicated transponder capacity in specific maritime beams, and ser- 40 Q4•2012 Quarterly Newsletter vice providers lease this dedicated capacity over ages approximately $1.6 million per year for quality of service options, length of contract, and a timeframe. This time period is estimated at C-band and $2.0 million per year for Ku-band so on, providing the end-user with unlimited between one to three years or longer, even last- capacities globally. Over the next few years, capacity and an “always on” connection. Some On top of the cost of satellite bandwidth, the ing throughout the satellites’ lifespan. In order multi-beam or HTS (High Throughput Satellite) service providers apply a fair usage policy, pre- cost of service determined by the above-men- to provide VSAT service globally, capacity from capacities such as those from Global Xpress and venting the use of inappropriate amounts of sat- tioned factors is added to the total cost of ser- multiple transponders and possibly from several Epic are expected to be the main drivers of the ellite bandwidth. The contention ratio is an vice. An increasing number of service contracts different FSS operators may be required. maritime satellite communications market. For important factor for VSAT end-user performance also include equipment leasing. With the leas- the moment, the price of such capacity remains and for the service provider’s business model. ing, the upfront cost is split into monthly fees, The amount of leased capacity varies between unclear, as neither Inmarsat nor Intelsat have This ratio describes the number of users sharing therefore in some cases it is also a part of the two or three megahertz for leasing several publicly announced the pricing for their new the same network. The higher the contention service cost. With all the costs, service providers whole transponders. One of the more recent sig- generation services. Theoretically, it is expected ratio, the more business the service provider can decide their margins for the service provision. nificant lease agreements was from MTN who to be on a per MB / GB basis; the price of such make on a given amount of bandwidth; however, The final price that end-users bear is always a will lease more than two gigabits of capacity services should be unchallengeable by L-, or reg- the quality of service for a single user can signif- trade-off between cost, service quality and prof- from Intelsat Epic for the Caribbean region. ular C- and Ku-band systems due to HTS’s supe- icantly deteriorate with high simultaneous user itability for the service providers. The majority of Transponder prices can vary significantly from rior frequency reuse and spectral efficiency. figures (such as during peak usage times). The monthly fees observed by Euroconsult fall CIR (Committed Information Rate) is generally between $2,500 and $3,500. one region to another and are dependent on sev- terrestrial communications (such as VHF, GSM). eral factors, such as the frequency, signal power, On the operators’ costs side, Intelsat is devoting included in VSAT service contracts and is often a capacity, lease and volume to name a few. In between $775 million and $850 million in 2012, decisive factor for both the price and the end general, current regular satellite transponder a maximum of $625 million in 2013 and no more user’s decision making processes. Euroconsult Prices are softening prices (excluding Epic and Global Xpress) than $600 million in 2014 to support the con- has observed that the majority of CIRs are within Without quoting all the upcoming new genera- observed by Euroconsult range from $650 per struction and launch of two Epic satellites. the 64kbps to 256 kbps range, with the most tion maritime satellite communications offers, megahertz per month to $10,000 per megahertz Inmarsat announced that it will invest $1.2 bil- commonly applied CIR at 128 kbps. Of course, we see a clear trend: The end-user community per month, depending on satellite orbital posi- lion for its Global Xpress system. certain specific vertical segments, such as cruise will have a wide choice of offers which previ- tions, power levels, frequencies, spectral coordi- ships and offshore rigs, have much higher ously did not exist. Considering the total satel- nation, and the like. Euroconsult estimates that requirements, ranging from 512 kbps to several lite capacity which will be available in the next Service providers add value and another layer of cost to the service Mbps. 36 months, we see the possibility of oversupply In most cases, satellite operators, especially FSS Service providers increasingly follow a service- tions could drive demand growth. For the next 10 operators, do not provide service directly to end agnostic approach, acting as a one-stop-shop years, Euroconsult anticipates the average reve- users. Maritime service providers buy satellite integrators and service providers. They offer nue per user (ARPU) of the maritime satellite capacity or airtime and end-user terminals in large portfolios of communication solutions, communication market to evolve with a com- bulk and then create services for the end-user often combining MSS, maritime VSAT, and even pound annual growth rate (CAGR) of -6%. the current (2011-2012) transponder price aver- Anticipated Evolution of ARPU for the Maritime Satcom Sector in the market; potentially a variety of applica- community. Instead of the long-standing per usage payment for MSS services, recently both MSS and VSAT providers have begun to offer to monthly flat fee services. The VSAT services normally include all- 2011 2012 2013 2014 2015 2016 2017 Maritime Telecom Solutions by Satellite © 2012 Euroconsult 2018 2019 2020 2021 Wei Li is a senior consultant at Euroconsult and editor of ‘Maritime Telecom Solutions by Satellite - Global Market Analysis & Forecasts’, ‘Aeronautical Telecom Solutions by you-can-eat connections, technical support, Satellite’, ‘Global Market Analysis & Forecasts, Mobile Satellite Communications value added services, and increasingly, the Markets Survey’ – ‘Prospects to 2020, and Company Profiles – Analysis of FSS Operator’, equipment lease. The price generally depends and is the leading analyst of ‘Satellite Communications & Broadcasting Markets Survey upon such factors as maximum data rates for – Forecasts to 2021’. upload and download, guaranteed throughput, 41 42 INSIDE APSCC Q4•2012 The 15th Asia-Pacific Satellite Communication, Broadcasting and Space Conference & Exhibition, APSCC 2012 Satellite Conference and Exhibition Satellite Backhaul held also to cover many intellectually stimulating discussions on the hottest issues of the contemporary satellite industry. The 2012 APSCC Award Ceremony was held during the 2012 APSCC Awards Dinner at APSCC 2012 on 25 September 2012. The ‘Satellite Executive of the Year in the Asia-Pacific Award’ and the ‘Lifetime Achievement Award’ was presented to Mr. Thomas Choi, CEO of Asia Broadcast Satellite and Mr. Han Hwangbo, President of Space Technology Group, respectively to commemorate their achievements. 24-27 September 2012, COEX, Seoul, Korea At the APSCC 2012 Exhibition, leading players of the industry including GMV (Spain), Zodiac (France), Nanotronix (Korea), Thaicom (Thailand), Intellian (Korea), Thuraya (UAE), GATR (USA), KT Corp. (Korea) Jean-Yves Le Gall , Tom Choi, Han Hwangbo, Yutaka Nagai, Richard Bowles (from left to right) An annual event of APSCC, the 15th Asia-Pacific Satellite Communication, Broadcasting and Space and Kratos Integral Systems (USA) displayed and demonstrated their state of the art products, tech- Conference & Exhibition, here and after APSCC 2012, was held on 24-27 September 2012 at COEX, nologies and services offering a hands-on update for event participants. Seoul, Korea. Over 80 high quality senior level officers and professionals from the satellite business arenas participated as a speaker and APSCC 2012 gathered about 450 participants from 26 countries. In conjunction with APSCC 2012, the 1st Satellite RF Interference Mitigation Forum was held on 24 September along with its reception with about 100 participants. Also, as Post-event programs, APSCC Under the theme of “LSE: leading the satellite evolution”, APSCC 2012 provided a global platform to 2012 Golf Masters was held in Zensfield golf course and Seoul Sightseeing Tour was also held on 28 gather satellite executives with various opportunities to network and to share the insight and the September 2012. industry trends. Hosted by the Asia-Pacific Satellite Communications Council (APSCC), the APSCC Annual Satellite APSCC 2012 was started with the opening session led by Mr. Yutaka Nagai, APSCC President, and Conference and Exhibition has been representing an unparalleled opportunity to reach the satellite was followed by a welcome address given by Dr. Seung Jo Kim, President of Korea Aerospace community in Asia for more than a decade. The APSCC 2013 is scheduled to be held on 24 – 26 Research Institute (KARI). Dr. Hong Yul Paik, President of Agency for Defense Development (ADD) was September in Hong Kong. also present at the opening session to deliver a welcome speech. For more information on APSCC 2012, visit http://www.apscc.or.kr/sub3.asp. The Satellite Operators CEO Roundtable, as well as panels and sessions on Comms on the Move, Launch Services Market, Policy & Regulation, Emergency Communications & Disaster Recovery, Manufacturing, Maritime, Satellite Broadcasting, Broadband, Ground Systems, Risk Management and APSCC President Yutaka Nagai delivering Opening Address 43 As of 28 November 2012 Platinum Member Gold Member Affiliate Member Regular Member (Governments) Regular Member 46 Quarterly Newsletter Satellite Industry News Ariane 5 Orbits EUTELSAT 21B and Star One C3 Satellites Israel Aerospace Industries Inks with Spacecom for Amos-6 Satellite Deal November 10, 2012 - Two telecommunications satellites that will November 13, 2012 - Israel Aerospace Industries (IAI) has signed a provide expanded relay capacity over areas that include Europe, contract to supply a local provider of satellite communications Africa, the Middle East, Central Asia and South America were services the Amos-6 satellite in a deal worth some 195 million U.S. orbited by Arianespace. EUTELSAT 21B spacecraft was built by dollars. IAI President and CEO Joseph Weiss, and David Pollak, CEO Thales Alenia Space and will offer significantly increased capacity of Spacecom Ltd., signed the deal Monday for the design, for data, professional video and government services when production, launching and operation of Amos-6, which is slated to compared to EUTELSAT 21A relay platform it is to succeed. The replace he Amos-2 when it ends its service in 2016. Amos-6 new satellite’s 40 Ku-band transponders provide improved power satellite, scheduled for delivery by August 2015 and designed to and coverage, incorporating an enhanced widebeam for coverage serve for at least 16 years, packs substantial enhancements across Europe into North Africa and Central Asia, while also including electric propulsion technology that enables reduced featuring two dedicated high-power beams covering northwest launch weight and costs. The communication payload includes 45 Africa and the Middle East/Central Asia regions. Produced by transponders in three frequency bands: Ku, Ka and S, which would Orbital Sciences Corporation, Star One C3 has 28 C-band and 16 enable Spacecom to expand its services, including direct satellite Ku-band transponders, enabling this satellite to replace the home Internet services. Brasilsat B3 satellite currently operating at the 75 degrees West waters under Brazilian jurisdiction to the pre-salt area, where new SkyStream and CETel Sign Long-term Service and Partnership Agreement oil fields are planned for exploitation. November 14, 2012 - The Dubai-based SkyStream selected CETel orbital position. In addition, Star One C3’s will reach the offshore Teleport in Germany and started the network operations on Eutelsat EBU Network Selects RRSat for Media Content Delivery between Asia and Europe satellites to support different applications of the increasing November 12, 2012 - RRsat Global Communications Network was startup of this corporation is SkyStream’s iDirect hub operations selected by European Broadcasting Union Network (EBU) to provide plus providing teleport service for multiple Eutelsat satellites digital media content delivery services and be their main hub offering both C- and Ku-Band. The increasing demands and the between Asia and Europe for the coming years. Sports, news and need to expand and cover other parts of the world makes it special events, broadcast in both standard and high definition, will important to complement SkyStream service with operation from be delivered through RRsat's teleports for the EBU Network. The CETel Teleport in Europe CETel is an excellent option to SkyStream EBU Network is a world leading alliance of public service media considering their state of the art infrastructure and their highly organizations, with members in 56 countries in Europe and beyond. qualified technical support. The new services of CETel will expand The EBU Network operates Eurovision, the media industry's premier SkyStream network over the African continent and will also expand distributor and producer of entertainment, culture and music SkyStream Ku-Band maritime services over the Mediterranean and content as well as top quality live sport and news events such as the North Sea as well as maritime C-Band services to the Americas. demands of different verticals such as maritime and oil & gas. The the Eurovision Song Contest, the UEFA cup, national elections and other major European events. Thuraya Launches Mobile Broadcast Solutions for Media Sector November 15, 2012 - Thuraya Telecommunications Company 48 Quarterly Newsletter Satellite Industry News announced the certification of a suite of industry leading Solutions East and Central Asia. As part of this cooperation Level421 has further enhancing its offer for the Media and Broadcast industry. At installed in Q4 2012 a new 6.5 m antenna pointing towards the heart of Thuraya MediaComms is Thuraya IP, which is the Arabsat-5C satellite at 20 degrees East, capable to handle also world’s most compact satellite data modem, which is now fully extended C-Band. This platform is live, now full operative and first compatible with the media industry’s favored broadcast solutions customers have set their carriers. From its prime teleport location in including: Clipway, Livewire, Globecast, Streambox and Quicklink. Germany, level421 provides data services, based on brand new The prevalence of journalism on-the-move, whereby a reporter can Comtech 840 Advanced-V-SAT technology, operating high quickly and easily use a laptop coupled with a portable satellite modulated up to 32 APSK on ultra efficient level with ACM broadband terminal to stream live images has changed the capabilities on up- and downstream. Due to its teleport location in landscape of the media industry. Media companies will typically Central Europe and its possibility to inject data traffic directly into use various broadcast Solutions to enable IP streaming from the the Pan European Backbone with shortest possibility, the overall field in order to break the news first. In response, Thuraya has performance of Internet based Services, provided by level421, is certified multiple industry leading Solutions to guarantee they are very high. fully compatible with the Thuraya IP terminal. Thuraya MediaComms combines best-in-class hardware with assets both in ILS Successfully Launches EchoStar XVI Satellite space and on the ground, to deliver a complete end-to-end solution. November 20, 2012 - International Launch Services (ILS) announced that the EchoStar XVI satellite built by Space Systems/Loral (SS/L) China to Launch First Sri Lankan Satellite was successfully launched and placed into geostationary transfer November 16, 2012 - The first Sri Lankan communication satellite is orbit by Proton Breeze M rocket. The satellite is successfully scheduled to launch from the Xichang Satellite Launch Center by performing post-launch maneuvers and will ultimately be mid-2013 for commercial purposes and is partly owned by Sri maneuvered into orbit 22,300 miles above the earth at 61.5 degrees Lanka's first satellite company SupremeSAT. The project is a joint West longitude. An all Ku-band satellite with continental United venture with China Great Wall Industry Corporation (CGWIC) and States (CONUS) and spot beam transponders, EchoStar XVI will be Sino Satellite Communications Company and also includes the fully leased to DISH Network for the delivery of direct-to-home building of a satellite Content Management Station and a Space (DTH) broadcast services to DISH customers in the United States. Academy at Kandy. CGWIC is assisting Supreme SAT with EchoStar XVI utilizes SS/L's 1300 spacecraft bus, a 20-kilowatt designing, manufacturing, and launching of the satellite. satellite that weighs more than 14,700 lbs. fully fueled. SupremeSAT also aims to launch a fully-owned satellite in promote space science within Sri Lanka. The Space Academy aims Ex-Im Approves Two Transactions to Finance Export of U.S. Satellites to Hong Kong to include a Satellite Ground Station to train scientists to handle November 21, 2012 - In a decision that will support thousands of communication satellite operations. high-tech jobs in the U.S., the board of the Export-Import Bank of December 2015 and its future Space Academy is designed to the United States (Ex-Im Bank) has authorized two transactions Arabsat and Level421 Establish Partnership for Africa and Middle East aggregating US$461 million to underwrite the export of American- November 19, 2012 - Arabsat has announced its partnership with Hong Kong will deploy the satellites to upgrade and expand its Level421, headquartered in Germany. Level421 is one of the leading fleet, which offers coverage to 80 percent of the world’s population providers of satellite communication services for Africa, Middle and targets emerging markets in Africa, Asia, the Middle East, and made satellites to Hong Kong. Asia Broadcast Satellite (ABS) of 50 Quarterly Newsletter Satellite Industry News 2 0 1 3 Russia. In the first transaction, the Bank authorized a $171.29 KazSat-3 Payload Module Structure Shipped off to Italy million direct loan to ABS to finance the purchase of a FS1300, C/ November 22, 2012 - Academician M.F. Reshetnev Information Ka/Ku-band geostationary satellite from Space Systems/Loral Inc. Satellite Systems sent the payload module structure of the (SS/L) and insurance from Aon. The satellite is scheduled to launch telecommunications spacecraft KazSat-3 to Thales Alenia Space in 2013. Additionally, the Bank authorized a separate US$289.71 Italia S.P.A. The payload module structure was manufactured by million direct loan to ABS to facilitate the purchase of two 702SP C- ISS-Reshetnev. In Italy it will be equipped with a repeater system and Ku-band geostationary satellites from Boeing Satellite Systems consisting of 28 Ku-band transponders. Upon completion of these Eui K. Koh, Ph.D. JB Technologies International (Boeing), insurance from Aon, technical support, and procedures, the module will undergo electrical tests and then it will Yasuo Otaki the launch of both of the satellites with Space Exploration be delivered to the Reshetnev Company to undergo integration with Technologies (SpaceX) Falcon 9. The transaction will finance the the spacecraft platform. ISS-Reshetnev is building the David W. Thompson Orbital Sciences Corporation first two of Boeing’s all-electric-propulsion commercial satellites telecommunications satellite which is based on the middle-class and the first Ex-Im Bank-backed SpaceX launch. The two satellites platform Express-1000H under the contract with the Republican are planned to launch in 2015 from Cape Canaveral, Florida. Center of Space Communication (Kazakhstan). The Reshetnev Company is responsible for the design, development, manufacture, Astrium Services Extends VSAT Coverage and Service for Global Maritime Customers integration and testing of KazSat-3, as well as for the November 22, 2012 - SES and Astrium Services have signed Apart from that, the company is to provide specialist training for the capacity deals to deliver connectivity to vessels around Latin operator as well as technical support to the spacecraft throughout America as well as in the North Sea, Mediterranean Sea, Red Sea its service life in orbit. establishment of a central and a reserve ground control centers. and Gulf of Aden. Astrium Services will renew capacity on the maritime business communications, tracking equipment and engine THAICOM Expands its Markets into Africa with the Launch of AFRICOM performance as well as ensuring crew at sea to stay connected. November 23, 2012 - THAICOM PLC. announced the launch of Located at 338 degrees West, SES-4 is among several SES AFRICOM by Thaicom and AFRICOM-1 to provide satellite services satellites providing capacity to Astrium Services enabling the in Africa. AFRICOM-1 is the payload dedicated to Africa on the company to customize services to satisfy specific needs of the THAICOM-6 satellite, which will be launched in 2013. AFRICOM-1 maritime industry. Under the new agreement Astrium Services is will provide broadcasters and telecom operators in Africa with a SES-4 satellite to provide its customers with managed services for able to meet several specific communication needs, including full range of end-to-end satellite communication services via its reliable VSAT coverage for oil & gas activities offshore of Brazil and high-power C-band beams, including Direct-to-Home TV, Digital TV, East Africa. Additionally, the wider footprint of SES-4 extends and modern telecommunication services. Thaicom is respected coverage over the Gulf of Aden to support vital connectivity to around the world for its innovations and technical achievements in customers in piracy risk zones for instance off the coast of Somalia. the field of satellite services. The Company was the first satellite The coverage also supports fisheries, transportation and operator in the world to develop and launch a broadband satellite; recreational maritime customers in Europe. it was also the first operator in Asia to offer the MPEG-2 video standard and Direct-to-Home TV via satellite. Thaicom presently carries more than 450 TV channels on its platform at 78.5 degrees East, the same orbital slot from where Africom-1 will provide service to the African continent. APSCC Officers 01 02 0304 05 060708 09 10 1112 President Yutaka Nagai, SKY Perfect JSAT Advisory Board Nongluck Phinainitisart, Ph.D. THAICOM 01 January 16-18 Convergence India 2013 New Delhi, India www.convergenceindia.org 20-23 PTC’13 Honolulu, Hawaii, USA www.ptc.org G. Madhavan Nair, Ph. D. Indian Space Research Organisation 21 John Celli Space Systems/Loral Board of Directors Richard Bowles Arianespace APSCC Breakout Session at PTC’13 Honolulu, Hawaii, USA www.ptc.org 30 Naval and Maritime Commercial SATCOM Users’ Workshop San Diego, USA www.navysatcomworkshop.com/indexnavy.htm Thomas Choi Asia Broadcast Satellite William Wade AsiaSat Zhiheng Fu China Great Wall Industry Corporation Thomas Carroll International Launch Services Terry Bleakley Intelsat 02 February 25-27 MilSatCom Middle East & Africa 2013 Dubai, UAE www.smi-online.co.uk/defence/middleeast/milsatcom-middle-east-africa Young Taik Kim ktsat Paul Brown-Kenyon MEASAT Satellite Systems Hiroyuki Inahata Mitsubishi Electric Corporation Ted McFarland Orbital Sciences Corporation Dani Indra TELKOM Indonesia Deepak Mathur SES Titus Yong SingTel Christophe Bauer SpaceX Eddie Kato Thales Alenia Space, North America 03 March 05-07 17th ISU Annual International Symposium Strasbourg, France www.isunet.edu/symposium 12-14 CABSAT 2013 Dubai, UAE www.cabsat.com 18-21 Satellite 2013 Washington DC, USA www.satellitetoday.com/events/ 18 CASBAA India Satellite Industry Forum New Delhi, India www.casbaa.com APSCC Newsletter - A Great Way to Advertise With a vast international circulation that includes the most prominent members of the satellite, space and communications communities, APSCC Newsletter is seen by an elite readership of industry professionals around the Asia-Pacific and globally. Your message will reach the right people. Advertising in APSCC Newsletter is a cost-effective way to reach your potential clients and business partners. APSCC Newsletter can bring your company to the attention of key personnel in the satellite and space technologies, telecommunications and broadcasting industries. We offer you exclusive contact with people in the government, academic and industry sectors. 4th Quarter 2012 APSCC is a non-profit, international regional association representing all sectors of satellite and space related industries. APSCC membership is open to any government body, public and private organization, association, or corporation that is involved in satellite services, broadcasting, manufacturing, launch services, risk management or associate fields such as datacasting, informatics, multi-media, telecommunications, and other outer space-related activities with interests in the Asia-Pacific region. APSCC aims to exchange views and ideas on technologies, systems, policies and outer space activities in general along with satellite communications including broadcasting for the betterment of the Asia-Pacific region. Conferences, forums, workshops, summits, symposiums, and exhibitions are organized through regional coordination in order to discuss issues that affect the industries and to promote and accelerate the efficient introduction of outer space activities, new services and businesses via satellites. In order to disseminate industry related information, APSCC publishes a quarterly satellite magazine as well as a monthly e-newsletter, which are distributed worldwide to members and others. The quarterly magazine and other publications are available on the Web at www.apscc.or.kr. Advertiser Page NewSat Inside front cover Sea Launch 02 Mitsubishi Heavy Industries, Ltd. 05 SpaceX 11 KRATOS ISI 17 NSR 21 Via Satellite 27 PTC’13 35 Asia-Pacific Broadcasting 39 Space News 47 SatNews 49 ILS Inside back cover Editorials and Inquiries Inho Seo, Editor Asia-Pacific Satellite Communications Council Suite T-1602, Poonglim Iwantplus 255-1 Seohyun-dong, Bundang-gu Seongnam, Gyeonggi-do, 463-862 Korea Tel: +82-31-783-6247 / Fax: +82-31-783-6249 E-mail: info@apscc.or.kr / Website: www.apscc.or.kr APSCC Newsletter is a publication of the Asia -Pacific Satellite Communications Council. It is published quarterly in March, June, September and December. The contents of this publication may not be reproduced, either in whole or in part without, prior written permission from the editor. The views and opinions expressed are those of the authors and are not necessarily supported by APSCC. 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