Sat Magazine 2004
Sat Magazine 2004
Sat Magazine 2004
Broadcasting
Services
Back to Contents 2
TABLE OF CONTENTS
Vol. 2 No. 7, November 2004
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directly to the story
The opening up of space to commercial tourism will certainly have a Joyce Schneider
spillover effect on the satellite industry. It will open up yet another ([email protected])
market for expertise, technologies and equipment engendered by the Advertising Sales
industry. Satnews Publishers is the leading
provider of information on the
We do really live in interesting times. worldwide satellite industry. Fore
more information, go to
www.satnews.com
Cover Design by: Simon Payne
Copyright © 2004
Satnews Publishers
All rights reserved.
CALENDAR OF EVENTS
November 3-4, Moscow, Russia December 2-5, World Trade Center, Istanbul, Turkey
Broadband Russia and CIS Summit 2004 Broadcast, Cable & Satellite eurasia 2004 – A CeBIT Event
Elena Peredel’skaia - Fair and Conference
Tel: + 44 (0)20 7596 5205/ 5000Fax: + 44 (0)20 7596 5208 Hannover-Messe International IstanbulUfuk Altintop
Email: [email protected] Tel: +90.212.334 69 12 (direct) +90.212.334 69 00
Website: www.broadband-conference.com Fax: +90.212.334 69 34
E-mail: [email protected]
Web: www.cebit-bcs.com
November 3-5, World Trade Centre, Mumbai, India
Satellite & Cable TV India Tradeshow 2004, December 7-8, Shangri-La, Pudong, Shanghai, China
Contact: Dinyar Contractor Emergency Communications Asia 2004
Tel. +91-22-5660 4029, Mobile: +91-22-33-346927 Wendy Tay
Fax: +91-22- 2496 3465, Tel: +65 6322 2708
E-Mail: [email protected] Email: [email protected]
Website: www.scatindia.com Website: www.terrapinn.com/2004/eca_CN
FEATURED EVENT
ISCe 2005:
Higlighting Innovation and the
Direct Broadcasting Industry
Long Beach, California May 31-June 2, 2005
ISCe will be introducing two new features in 2005-- The Carmel Group’s higly succesful 10th Annual Forum on
Satellite Entertainment/DBS: The 5 Burning Questions, will be be held in combination with the ISCe event for the first
time. In addition, ISCe will be debuting its Gallery of Innovation feauring innovative and groundbreaking product
demonstrations for homeland security, wireless communication systems, broadband, military and government solutions,
fixed and mobile platforms, space systems, and consumer applications. To prodive more insight and background on these
two new features of the ISCe event, we present two articles on the U.S. DBS market and innovation in the satellite industry:
Top-Tier TV and Radio: U.S. DBS: What’s Ahead? old Voom, with a strong High Definition
TV (HDTV) programming line-up, has now
U.S. Consumer Satellite garnered an estimated 46,000 subscribers,
Three players make up U.S. DBS today,
Services and two of the three hold almost 100% of
equaling 0.2% of the U.S. DBS market.
the subscriber market share. News Corp.-
The Carmel Group projects that as of
By Jimmy Schaeffler controlled DirecTV holds an estimated
year-end 2008, these three players will
The Carmel Group 56.2% as of end-of-third-quarter 2004,
have built up a subscriber war chest of
while the Number Two in the U.S. DBS
nearly 32.5 mil. subscribers. Presently,
industry, EchoStar, controls 43.6%. Year-
cable holds approximately 65 mil. of
T he U.S. Direct Broadcast Satellite
(DBS) and satellite radio taxonomy is
one of the most fascinating and
provocative within today’s telecom
businesses. Both sets of providers
continue to garner hundreds of
thousands of new subscribers
nationwide every calendar quarter. They
also gather consistent consumer interest
in the form of strong headlines and
special programming packages and
personalities, both sets of which cannot
be heard or seen by or from their
terrestrial competitors – which include
AM and FM radio (in the case of
competitor satellite radio), and cable
broadcast and telephony (in the case of
DBS). Howard Stern is the most
noteworthy on the satellite radio side,
while huge 2004 subscriber growth from
DirecTV is the big-ticket headline on this
year’s DBS side.
today’s 107 mil. U.S. TV Households signed a five-year deal for $500 mil. with Although many pundits suggest the
(TVHHs), while today’s overall U.S. DBS AM-radio personality, Howard Stern, number of these deals are limited, The
subscriber count measures an estimated which was preceded by XM’s excusive Carmel Group believes the dial has plenty
24.056 mil. between DirecTV’s estimated deal with counterparts Opie & Anthony. of room left for other exclusive deals that
13.530 mil., EchoStar’s estimated
10.480 mil., and Voom’s estimated
46,000 subscribers (See “Total U.S.
DBS Subscribers”).
Innovation is the
Hallmark of the
Satellite Industry
by Virgil Labrador
overhead. In contrast, a synchronous thanks to the dedication of the those even good ideas happen. That was
satellite could communicate directly and working in this fascinating field.” certainly true with Syncom.”
continuously with any ground station in
its line of sight using fixed antennas. No The satellite industry is replete with He added, “I felt that better international
complex tracking antennas were necessary. visionary innovators like Dr. Rosen. communications would be good for the
Synchronous altitude also meant that a Without constant innovation, the world, that among other things they
satellite would be in sunlight 99 percent of satellite industry would not have grown would make people less fearful of others
the time over the course of a year, into the $100 Billion a year industry that in distant lands.” SM
eliminating the need for an active it is today.
temperature control system.
Dr. Rosen’s advice to would-be
The holder of over 60 patents, Dr. Rosen innovators: “If you have what
said, “I fully expect the remarkable you think is a good idea;
advances in communication satellite don’t get discouraged if it
systems-a six order of magnitude cost Virgil Labrador is the Managing
takes awhile to bring it to Editor of SatMagazine. He can be
reduction in the per channel cost of TV fruition. It sometimes takes a
reception in the past 40 years, for example- reached at [email protected]
lot of perseverance to make
to continue unabated into the future,
INDUSTRY NEWS
Arianespace to Launch 50 with AMC-16 satellite
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on an Atlas V vehicle
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Nanosatellites in Historic Mission and WorldSat 2 on
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another Proton
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To celebrate the 50th anniversary of the launch of the first man- vehicle.
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made satellite, Arianespace will launch a cluster of 50
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nanosatellites for the International Astronautical Federation Dany Harel, SES
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(IAF) in 2007. Americom vice
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president for satellite
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Each nanosat will weigh about one kilogram, and will be dedi- and space systems,
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cated to a scientific experiment under the responsibility of said the Proton Breeze
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researchers at universities or other organizations. Arianespace M launch was picture-
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said all 50 of the nanosats will be launched at the same time, on perfect in the darkened
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one rocket, from the French company’s launch facility in French skies over Kazakhstan,
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Guyana. The nanosats will last in orbit for about 2 years. Each and on spec as we
nanosatellite to be orbited will represent a different country. ○
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monitored every stage.
“We thank the ILS
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The mission was first proposed by the Russian Space Agency at team for delivering
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this year’s IAF Congress in Canada to commemorate the first AMC-15 into transfer
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satellite launch in 1957. The Russian space industry and IAF, in orbit. Now we and our
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partnership with the leading space agencies from around the Lockheed Martin
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world, are supporting the mission. A Russian Proton launch vehicle spacecraft partners
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Jean-Yves Le Gall, Arianespace CEO said the company is very satellite into orbit Friday. (ILS ready for service to
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already orbited some 40 auxiliary payloads of the same type we EchoStar, by Decem-
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will launch in 2007. Just like 50 years ago, when the first man- ber,” he said.
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AMC-15 Satellite
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15 satellite into orbit last October 15. The Proton lifted off at 3:23 on the revised economic terms of a proposed plan of reorganiza-
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upper stage nearly seven hours later, at 10:18 a.m. (12:18 a.m.
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EDT, 4:18 GMT). With the agreement, Loral said it is set to file a revised Plan and a
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AMC-15, an A2100 model satellite built by Lockheed Martin 2004. Approval of the plan will allow Loral to exit chapter 11
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Commercial Space Systems, carries both Ku- and Ka-band under current management in the first-quarter of 2005. The plan
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payloads. SES Americom’s customer for this satellite is revises the terms of a plan previously filed on August 19, 2004.
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The successful launch is the third satellite to be launched by ILS Loral and Loral Skynet, will emerge intact as separate subsidiar-
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for SES Americom this year. ILS started its launch year in ies of reorganized Loral (New Loral). Space Systems/Loral, the
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February by orbiting the AMC-10 satellite on an Atlas vehicle, satellite design and manufacturing business, will emerge debt-
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INDUSTRY NEWS
The common stock of Loral Orion unsecured creditors also will be offered the right to
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New Loral will be subscribe to purchase their pro-rata share of $30 million in new
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owned by Loral senior secured notes to be issued by reorganized Loral Skynet.
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bondholders, Loral
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Orion bondholders Based upon current estimates, creditors of Space Systems/Loral,
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and certain other Loral SpaceCom Corp. and Loral Satellite, Inc. will be entitled to
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unsecured creditors. In share in a recovery consisting primarily of cash, as well as New
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addition, bondholders Loral common stock that is expected to result in a blended
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of Loral Orion and recovery of approximately 33%, subject to significant decrease in
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other unsecured the event claims materially exceed current estimates.
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creditors of Loral
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Orion will receive an Approval by the Bankruptcy Court of the plan will enable the
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aggregate of $200 New Loral to emerge as a public company that will seek listing on
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million in new senior a major stock exchange. Under the plan, existing common and
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secured notes to be preferred stock will be cancelled and no distribution will be made
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issued by reorganized ○
to current shareholders, Loral said.
Loral Skynet, New
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services subsidiary.
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Space photo)
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* Ã Ê 9 Õ À Ê i V Ì Ã
INDUSTRY NEWS
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Services in Japan
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New Skies Satellites N.V.
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(NYSE:NSK) (AEX:NSK) was
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awarded last October 10 a
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Radio Station License by the
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Japanese Ministry of Internal
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Affairs and Communications.
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The license, in combination
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with the Telecom Business
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Registration granted to New
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Skies in July this year, enables
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the company to offer interna-
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tional and domestic satellite
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New Skies will be employing services directly to both
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NSS-6 and NSS-7 for the satellite Japanese and non-Japanese
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services in Japan. companies for links to, from
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and within Japan.
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Scott Sprague, New Skies’ senior vice president said the authorization
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will allow New Skies customers to access its global network directly
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said since the company brought its ad hoc bookings in-house two years
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markets with one of the world’s only all Ku-band digital transmission
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networks, starting with this service for the Japanese Grand Prix,” she
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said.
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live digital coverage of Formula One racing from the Japanese Grand Prix
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in Suzuka, Japan. The service, which will take place between October 8 -
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10, 2004, will employ the NSS-6 and NSS-7 satellites to deliver the entire
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Earlier, the Wire & Wireless Group tapped New Skies for the digital
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coverage of Formula One racing from the Japanese Grand Prix in Suzuka,
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Japan. The service employed NSS-6 and NSS-7 satellites to deliver the
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EXECUTIVE MOVES
NASA Names Rex Geveden also was project manager for matched hands-on experience in conduct-
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several other successful efforts, including ing science operations in space, made him
Geveden New Chief
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the Optical Transient Detector and the ideal advisor to steer agency science
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Engineer Lightning Imaging Sensor Earth-orbiting decisions during his management tenure
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satellites, which produced data for the in Washington,” Administrator O’Keefe
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NASA Administrator Sean O’Keefe has world’s first global map of lightning. said. “His unique skills will be sorely
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missed here, but I know he will continue
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named Rex Geveden as the agency’s chief
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engineer and director of the independent ○ He served as chief engineer for the to provide his valuable input to the
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Waves in Space Plasmas project, a study decision process from his Johnson Space
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technical authority, effective Nov. 1, 2004.
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that involved the measurement of the Center vantage point as well.”
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characteristic frequencies of plasma, the
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Geveden succeeds Theron Bradley, Jr.,
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who announced his retirement Oct. 4 after form of matter that comprises more than Garvin, who earlier this year announced
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99 percent of the visible universe. the Mars Exploration Rovers had found
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a distinguished career as a senior man-
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ager and nuclear engineer with the U.S strong evidence liquid water once existed
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As manager of the Microgravity Science on the martian surface, will work to ensure
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Navy’s nuclear propulsion community.
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Bradley had been chief engineer at NASA and Applications Department at Marshall, the scientific merit of NASA’s programs,
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Geveden led a team of 350 scientists to including those embracing exploration.
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since June 2002.
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develop safer and more cost-effective
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materials for future missions and investi- Grunsfeld is a veteran of four Space
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A native of Mayfield, Ky., Geveden was
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deputy director of NASA’s Marshall gations into the reaction of chemicals in a Shuttle flights and five successful
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microgravity environment. His organiza- spacewalks to upgrade the Hubble Space
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Space Flight Center, Huntsville, Ala. since
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July 2003. As chief engineer he is respon- tion delivered many of the early payloads Telescope (HST).
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to the International Space Station.
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sible directly to Administrator O’Keefe for
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the overall review and technical readiness Grunsfeld received a bachelor’s degree in
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Chief Engineer assures that the develop- NASA Administrator of Technology in 1980. He earned a
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being planned and conducted on a sound from the University of Chicago in 1984
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At Marshall, Geveden shared responsibil- appointed Dr. James B. Garvin, chief Swales Aerospace
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ity for one of NASA’s largest field scientist for NASA’s Mars and lunar
Appoints James T.
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installations, which has more than 6,500 exploration programs, as the new Chief
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Brady to Board of
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research and development projects in the specifics of which will be announced Swales Aerospace has announced that
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space science, materials science, biotech- at a later date. He will also provide expert
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nology, Earth science and space optics. support and counsel to NASA’s Astro- Director of Ballantrae International, Ltd., a
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He also led NASA’s Gravity Probe B (GP- NASA’s Chief Scientist in Sept. 2003. He
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of General Relativity. The GP-B spacecraft and ensuring the scientific merit of
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agency programs.
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Calif. “John’s extensive background in physics McCormick & Company, Inc., T. Rowe
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Executives Moves
Inc. From May 1995 Brady’s extensive and diverse business Pace Micro Promotes
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through April 1998, experiences will be a valuable asset,” Tom
Chris Dinallo to VP of
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Brady served as the Wilson, Swales CEO said.
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Technology
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Secretary of
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Maryland’s Department Brady, who resides in Frederick, Mary-
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of Business and land, holds a bachelor’s degree in Pace Micro Technology has appointed
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Economic Develop- Business Administration from Iona
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Chris Dinallo to a newly formed position
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ment. ○ College. He holds three honorary doctor- of VP of Technology while Steve Payne
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has joined the company as Director of
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Prior to his service as College and Loyola College in Maryland. Operations & Finance. Based in Boca
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Raton, Fla., both executives report will
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Mr. Brady for thirty-three years. During Brady also has a long history of commu- directly to Mike Pulli, president of Pace
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his last seventeen years there he was nity leadership, including having served Americas.
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Island and Baltimore offices. rial transition teams, Board member of Pulli said Chris has shown remarkable
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“As we focus more of our resources in Government, Board of Visitors of the industry’s technology is heading. ”He will
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pursuit of new opportunities for our small University of Maryland Biotechnology lead Pace’s technical strategy for the U.S.
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and microsatellite capabilities and for our Institute and many other business and market going forward including OCAP
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Executives Moves
Steve Payne’s business skills coupled business development and direct techni- the rotational firmware for the world’s first
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with his strong background in finance, cal point of contact for MSOs. 2 ½” disk drive; co-developing the IBM
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operations and customer service in high DOS kernel that surpassed the 640KB
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growth markets, such as telecommunica- Prior to Pace, Chris was Engineering memory barrier; audio architect of IBM’s
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tions, are the perfect match to help lead Director at Netspeak Corporation, a Voice OS/2 Multimedia Subsystem; multimedia
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our operations and finance initiatives as over IP (VoIP) software provider. Earlier in architect for the object-oriented sub-
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we move to expand our footprint in the his career, Chris was the Software system residing beneath the Taligent OS;
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U.S. market, Pulli added. ○ Engineering Director and Site Manager at Dynamic boot-loader of the MACH
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Oak Technology’s Software Design microkernel as implemented in IBM’s
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Chris Dinallo joined Pace in 2001 as Chief Center, and held various senior engineer- Workplace OS; and world’s first 32bit
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Technologist to focus on U.S. cable ing roles at IBM. software-only DVD 1.0 compliant play-
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digital set-top box development. In his back system built for personal computers.
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position, Chris will continue his previous Since 1984, Chris’ engineering disciplines ; and development of telephony ‘soft-
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responsibilities of technological direc- have been in the areas of operating switches’ for VoIP initiatives using H.323,
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tions for set-top box development, which systems, multimedia subsystems, MPEG MGCP and SIP protocols. SM
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include following industry standards, video, DVD, and Voice over IP develop-
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such as SCTE, OCAP and emerging ments.
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NGNA initiatives. In addition, Chris joins
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the Pace Americas executive team Highlights of Chris’ career include many
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involved with on-going business, new of the world’s first innovations such as:
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New Products
Delphi to Manufacture ST supplies silicon chips for set-top boxes — across satellite,
cable, and terrestrial services - and was closely involved with
Satellite Modems the DVB (Digital Video Broadcasting) technical groups working
to optimize the DVB-S2 specification. In May 2004 the com-
Delphi Corp. (NYSE:DPH) will co-develop and manufacture the pany announced the development of a modulator design
next generation of transceiver modems for Stellar Satellite Commu- compliant with the new standard, which it is making available
nications Ltd. to broadcast equipment manufacturers to enable them to
introduce equipment capable of broadcasting DVB-S2 signals
Delphi will supply two new models of two-way satellite communi- to ‘kick-start’ the market for DVB-S2 receivers. The STB6100
cator modems to Stellar including a high-volume telematics modem tuner was developed in cooperation with RF Magic Inc.
for both mobile and fixed equipment applications. The other
sophisticated Delphi modem will utilize sensors and software to The STB6100 is backwards compatible with current DVB-S
relay information to and from equipment requiring advanced field broadcasts and can be used today as part of a DVB-S2-ready
intelligence, according to Jeff Owens, Delphi vice president and receiver, ST said. With price an overriding concern for STB
president of Delphi Electronics and Safety. consumers, the new device allows manufacturers to minimize
their costs by using a single 32-lead package, with few sup-
Both modems support global remote management of equipment porting components, in place of the complex traditional discrete
and assets through Orbcomm’s satellite network for two-way tuner circuitry. In addition, it eliminates the need for specialist
satellite data communications. The modems will meet the rigorous RF expertise as the RF processing circuitry is integrated onto
performance and reliability standards of Delphi products, and will the chip. The STB6100, ST explained, is programmed through a
benefit the industry by providing a consistent supply of automo- simple two- wire serial interface, and is intended for use with an
tive-grade new and replacement modems. 8PSK demodulator chip.
STMicroelectronics Adds Single-Chip Comtech said the modem offers exceptional flexibility, redun-
DVB-S2 Silicon Tuner to Its Satellite dancy and performance with four configurable slots. The
unique architecture, according to Comtech, allows cost-
Set-top Box IC Family effective deployment of multiple modulators, demodulators or
modems.
STMicroelectronics (NYSE:STM) has announced the availability
of a new Set-Top Box (STB) silicon tuner — the STB6100 – that Comtech said flexibility is integral to the CDM-Qx, with a
complies with the stringent requirements of the new DVB-S2 variety of configuration options and support for an assortment
specification for satellite broadcasts.
NEW PRODUCTS
featured in the CDM-Qx. This product is interoperable with other RAMTelecom, through their Network Operation Center located
Comtech EF Data modems, seamlessly integrating into existing in Ottawa, will be providing broadband services for the C- Com
networks. developed iNetVu Mobile platform, which will be able to deliver
upload speeds of up to 2Mbps and download speeds of up to
CDM-Qx is the first Comtech EF Data modem to present the 60Mbps, according to a statement released by the two firms.
powerful DoubleTalkä Carrier-in-Carrierä functionality. Designed
for bandwidth compression, Carrier-in-Carrier is based on “The iNetVu Mobile antenna, which has been specifically
Applied Signal Technology’s DoubleTalk™, which uses “Adap- modified by C-Com to work with the Viasat LinkStar modems, will
tive Cancellation,” a patent pending technology that allows full be able to offer mobile customers operating from remote loca-
duplex satellite links to transmit concurrently in the same tions the same instant high-speed and secure communications
segment of transponder bandwidth. available today only to fixed users located in large metropolitan
areas,” said Leslie Klein, President and CEO of C-Com Satellite
Systems Inc.
Loral Skynet and Remote Work
RAMTelecom President Ralph Misener said the system fully
Central to offer IP-based Satellite supports different grades of high-speed data, Voice over IP and
Teleworking Solution video sessions for those Enterprise clients who need immediate
access to the Internet while on the move.
Loral Skynet has partnered with Remote Work Central, a provider
of telecommuting and teleworking solutions worldwide, to “Now customers can travel virtually anywhere within the satellite
provide secure telecommuting and remote access connectivity coverage area, arrive at any destination and be connected to the
services to small and medium enterprises, including SOHOs Internet at high speed within minutes,” he said.
(small and home offices), government and non-government
organizations (NGO), using Loral Skynet’s SkyReach i200 IP- Conexant Introduces Single-Chip Set-
based service. Top Box Solution for Entry-Level
With SkyReach, Remote Work Central will offer its customers Free-to-Air Satellite Market
Internet and email access, and file transfer applications. Using
VSAT satellite technology and Loral’s satellite fleet, SkyReach Conexant Systems, Inc. (NASDAQ:CNXT) has announced a
offers two-way Internet connectivity at speeds of 2 Mbps on the digital video broadcast satellite (DVB-S) compliant set-top box
forward link and 512 Kbps on the return link. Remote Work (STB) system solution for the basic, entry-level free-to-air (FTA)
Central end-users will have access to a selection of on-site market. The FTA market includes basic STBs that can receive
equipment and various bandwidth options to meet specific unencrypted content from international satellite broadcasters at
networking needs. no charge, and advanced STBs which allow users to view
additional premium content for a small incremental cost.
Remote Work Central said it will initially install 50 sites through-
out North America, Latin America and the Caribbean. Conexant said the low-cost CX24138 builds upon the technology
of the company’s CX2414X/5X interactive direct broadcast
”Using state-of-the-art IP technology, SkyReach allows organiza- satellite (DBS) system solution, and introduces a new feature-set
tions to create an instant network that can connect multiple sites, and package required by manufacturers and operators in China
regardless of geographic location,” said Patrick Brant, president, and other Asia-Pacific regions.
Loral Skynet.
Free-to-air satellite and terrestrial services are gaining in popular-
C-Com Launches New Mobile ity, particularly in Asia, the Middle East, North Africa and
Eastern Europe. FTA enables users to expand their viewing
High Bandwidth Service options beyond local broadcast content to a wide range of free
programming offered by international broadcast sources without
C-Com Satellite Systems Inc. (TSX VENTURE:CMI) has teamed subscription. According to Michelle Abraham, a senior industry
up with Ottawa based RAMTelecom to deliver high-speed analyst with In-Stat/MDR, the FTA STB market is expected to
satellite based mobile Internet services using ViaSat LinkStar reach 45 million units in 2008.
technology.
NEW PRODUCTS
Conexant’s CX24138 combines an MP@ML MPEG-2 video state-of-the art in-vehicle communication and is the first North
decoder, a digital audio decoder, a programmable transport American application of a standard real time traffic information
stream de-multiplexer, an on-screen graphics display controller, a system that puts continuously updated accident, construction
QPSK demodulator/forward error correction unit, TV encoder, and flow (where available) information at the driver’s fingertips.
and a high-performance, embedded 32-bit ARM920T RISC
processor with integrated peripheral I/O ports. This highly The AcuraLink real time traffic feature is reportedly the first
integrated solution enables a low-cost STB with proven perfor- standard system to offer personalized traffic information relative
mance. to the driver’s current location and destination. The frequently
updated traffic information is displayed graphically on the RL’s
Acura RL Debuts AcuraLink Satellite navigation system allowing drivers to avoid congestion and
minimize drive time.
Communication System With
Industry’s First Standard Real “Since the average rush hour commuter spends over 50 hours a
year sitting in traffic, this system gives RL owners a real advan-
Time Traffic Feature tage on the freeways,” said Tom Elliott, executive vice president,
auto operations. “Unlike radio or television traffic reports, the
When it goes on sale October 14, the all-new 2005 Acura RL RL’s real time traffic system provides a constant flow of relevant
luxury sedan will feature the new AcuraLink satellite communica- information reflecting conditions along a driver’s chosen route. It
tions system as standard equipment. This new system delivers really should save people a lot of time and aggravation.” SM
COVER STORY
What is a VSAT?
Bruce Elbert
President
Application Technology Strategy, Inc.
T
he Very Small Aperture Terminal The panel I chaired dealt
(VSAT) could probably be defined mainly with VSATs used within
as a small satellite-earth terminal the backbone infrastructure of
intended for two way communications. mobile telephone and wireless
The confusion comes about when we try data (Wi-Fi and WiMAX)
to define what, precisely, we mean by networks. In countries/regions
“small”. Coupled with this is a second like Nigeria, Indonesia and the
and equally important question regarding Caribbean, VSATs provide key
the meaning of “communication”. In this backhaul links between base
article, I attempt to shed light on these stations on islands and in
questions and address how VSATs towns that are yet to be served
support a growing market for wide-area by fiber or microwave. In
telecommunications. Indonesia, for example, eight C-
band transponders on Palapa
Executive Issues C2 are needed to provide these
links to about 80 base stations
The timing of this issue of in the eastern half of the
SatMagazine is synchronized with the country. This is projected to
just-ended Satellite Applications Tech- expand considerably in the
nology Conference (SATCON), held in coming year as demand for
New York on October 26 and 27. In conjunction with SATCON, (GILAT photo) GSM cellular service increases. On the other hand
the Global VSAT Forum (GVF) held its annual Summit and developers of GSM and wireless services in these regions find that th
Executive Roundtable. The session considered how VSATs can cost of satellite bandwidth, which must be committed to on a long term
better address vertical markets in such areas as rural communica- basis, can render extension of the service uneconomic.
tions to developing regions, disaster recovery and temporary
services, backhaul in cellular and wireless data networks, and What we see here is that developers and operators of
transmission to and from oil and gas installations. Perhaps the networks in these vertical markets are concerned not about the
most central issue for providers of networks in vertical markets is technology, but about the cost of acquisition and operation.
that of size. Is the payoff worth the work and financial commit- There needs to be a strategy for each market that meets the
ment needed to properly address a vertical market? particular price point, yet delivers a service that is superior to the
best alternative. In what follows, I address key aspects of VSATs
Disaster recovery poses the revenue challenge in that the related to what they are, what they can do in vertical as well as
buyer only wants to pay when disaster strikes. The seller must other markets, and how one goes about putting them to use.
worry about how fixed costs for equipment, satellite capacity,
staff, etc. can be amortized for customers that will not pay for an Definition from a physical perspective
equivalent full time circuit. Strategies based on reduced fixed
charges coupled with higher usage charges are traditional in this Small is a relative term – particularly in comparison to an
segment. The challenge for VSATs used by development earth terminal with a large aperture antenna (between 3 and 13
agencies like the World Bank, US Agency for International meters, depending on the frequency band, satellite and VSAT
Development and Medical Missions for Children is that while the requirements). A large earth terminal is something that only a
need is great, the financial resources are extremely limited. network operator would own and manage. Most VSAT networks
employ a large terminal for various functions, including network
management, access to terrestrial networks (e.g., a gateway
November 2004 SATMAGAZINE.COM
Back to Contents 19
COVER STORY
function), and sharing of the resource among a number of users. VSAT consists of hardware, computer processing power and
The VSAT, on the other hand, would be placed on the customer memory, and lots of software code. Furthermore, users of VSATs
premise and operated more like a cable modem or router, requir- expect that they can be installed quickly and almost anywhere.
ing little in the way of local support. Network management and Timelines are measured in weeks and sometimes days. Some
gateway functions form the core of a hub station, historically markets take this further to demand portability and mobility.
requiring a major investment in the range of $500,000 to well over Making such a VSAT work from an RF perspective at Ku band
a million dollars. The price of hub entry has been an impediment frequencies and mega-bit-per-second data rates also means that
to VSAT expansion, but there is a hub-less market that is the effective area of the antenna must be sufficient. This
growing in importance. Inherent in the hub-style network is a amounts to an equivalent diameter of 90 cm to 1.8 m at Ku band
star topology wherein communications run between hub and and 2 to 3 m at C-band (still popular in rainy regions like equato-
VSAT on a single hop basis. Familiar networks of this type rial Africa, South America, and Southeast Asia). Ka band VSATs,
include those used by Wal-Mart and the US Postal Service. discussed in last month’s article, could bring the corresponding
Mesh networks, where VSAT connects directly to VSAT without antenna down to 60 cm, provided that users accept a lower
passing through the hub, are coming back into vogue. The US availability in heavy rain.
military employ the mesh to provide connectivity within a theatre
as well as between the theatre and a central command. Aside from size and base cost, VSATs must be easy to
operate and reliable, both in terms of the equipment (hardware
Providing VSAT technology involves more than stamping and software) and service. Acceptability in this area is based on
out reflectors and bending chassis out of sheet metal. Today’s experience with devices you would purchase at a local consumer
London 15:57 0
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world’s population via the world’s largest combined satellite fleet. They are the providers of choice for satellite capacity and transmission solutions for audio-visual broadcasting,
data transmission and communication networks, serving both commercial and government customers worldwide. Together we offer local expertise as well as global reach.
COVER STORY
electronics store and mobile phone shop. To use a VSAT, one limitations in terms of user requirements that can be addressed.
wouldn’t want to be the satellite equivalent of a Cisco certified This is leaving some wiggle room for specialists who better
network engineer. In my experience, an administrative person
with interest in the particular application can provide whatever
tending a VSAT needs. It is most important that someone be
available to check both the terminal and the associated
application device in case of difficulty. Actual manage-
ment and troubleshooting of the link can be provided
remotely at the network operations center (NOC) or hub
station.
COVER STORY
COVER STORY
system not unlike that of the disaster recovery mend a careful reading of the
industry. Under that scenario, the user pays a white papers and initiatives of
relatively low monthly charge and experiences an the GVF; readers can follow up
increases when usage grows. A service agreement with the GVF for additional
could allow the user to modify or terminate the guidance.
arrangement under reasonable financial conditions.
We probably can no longer live in a world of Resources. The final
satellite and teleport leases that effectively tie the bottleneck relates to directed
customer to the operator for ones entire career. resources needed to put VSATs
into practice. These include
Logistical. VSATs and hubs are fixed to one suppliers, knowledgeable users,
place. Traditionally, this required a permanent and the folks that will operate
installation and a long operating life. The problem the network once it is in and
with this approach is that it takes a lot of time to prepare the site working. I have seen many times that people almost anywhere
and get things installed and into service. The other side of the have learned what they need to know to use satellite communica-
coin is that most of these initial charges cannot be recovered tions and get the most from it. Much of this was gleaned in the
when service is terminated. What we need instead is fast deploy field and during training courses I’ve led for the US Telecommu-
(and redeploy) of earth station equipment. The user and operator nications Training Institute and UCLA. The keys are: (1) find
will have greater flexibility and sunk costs will go down. Higher people who are interested and have a basic understanding of the
equipment cost to provide this flexibility will be driven down as application system itself, (2) survey the suppliers and make them
more of it is fielded (right now, the market for a portable VSAT is show you that they can do the job, and (3) allow the time to
ten to twenty times that of a fixed installation). Looking at the understand what you want to accomplish, how the project will be
hub, transportability amounts to installation in a suitable shelter managed, and for proof of network performance as well as
that can be placed on a flatbed truck. These are common in the training of staff.
cellular industry for temporary cell sites. Transportable VSATs
and hubs would be flexible and resalable. Already, eBay is Bottlenecks are not what they were back in the not-so
offering DIRECTV and DISH network equipment and Gilat “good old days”. We are at a time when VSATs are a known
SkyStar VSATs. quantity and when many organizations believe that they can
solve their problem. But, putting this together is still a fairly
Security and confidentiality. Any organization that would complex process. My recommendation is to take the time to
put its internal data over a wireless link will be concerned about study each and every element, from all dimensions (technical,
the secure operation of the system. The technology for this, in management, application and financial). I
terms of encryption and conditional access, is readily available. believe that the members of our industry are
Also, satellite wide area networks employ Virtual Private Network better prepared to help overcome the bottle
(VPN) security technology, such as IP-Sec, which protects data necks, and often all we need to do is ask for
and resources before information even reaches the VSAT or hub. the help. SM
There are still issues getting traditional security technology,
such as IP Sec, to interface properly with the software of the
VSAT. Recently, Gilat and HNS announced that they have Bruce Elbert has over 30 years of experi-
working solutions, and other suppliers are talking this way as ence in satellite communications and is the
well. I would therefore be confident that this particular bottle- President of Application Technology Strategy, Inc., which
neck can be opened for any new project. assists satellite operators, network providers and users in
the public and private sectors. He is an author and educator
Regulatory. Restrictions on the use of transmit earth in these fields, having produced seven titles and conducted
stations have given VSAT network developers a lot of head- technical and business training around the world. During 25
aches. In some countries, VSATs are almost impractical because years with Hughes Electronics, he directed major technical
of limitations posed by the local authorities. The GVF is a leading projects and led business activities in the U.S. and over-
force for change in the world, working with operators, users, seas. He is the author of The Satellite Communication
governments and the ITU to facilitate the expansion of this Applications Handbook, second edition (Artech House,
technology to places where it will do the most good. I recom- 2004). Web site: www.applicationstrategy.com / Email:
[email protected]
FEATURES
T
he VSAT market has
turned and focused into
the consumer market, due
to the large volumes of
installations world-wide, opening
a new world of possibilities and
business opportunities.
FEATURES
to be performed to make them successfully complete the installation are not based on the
operational (downlink alignment, VSAT transmitted signals, but those of the received downlink
configuration, line-up, fine adjust- and, by no means, the transmitted CW line-up carrier measure-
ment and final commissioning) are ment information available at the NOC: EIRP level, cross-
quite complex and require time, polarization isolation, interference.
skilled personnel and co-ordination
with the NOC. Complex installations...
and expensive
This is a real and hidden fact,
which makes VSAT installation Back to basics, the theory is very clear: a misalignment of 1º
expensive and do not allow to take in the polarization of the reference axis causes small losses in the
full advantage of the technological polar coupling ( 20log(cos1º) = -0,001 dB), but increases 35 dB
developments
towards cost
improvement
such as
standardisation
efforts like
DVB-RCS,
antenna and
ODU pre-
assembly, IDU
pre-configura-
tion...
Integrasys’
SATMOTION The
POCKET (US patent greatest
pending 10/408710) is competitive
a simple and low-cost advantage
tool for VSAT install- that two-way
ers. satellite
internet
operators offer to potential customers is to
be able to cover areas where no other
communications are available. These areas
represent the real satellite business
opportunity, but increases very much
installation difficulties and costs, as no
communications are easily available in the
field for NOC co-ordination.
FEATURES
FEATURES
sional VSAT installations in the field without the need for Integrasys has applied, by means of its
special equipment nor additional expensive tools, instru- SATMOTION POCKET product, to simplify
ments or knowledge. and dramatically reduce costs of consumer
VSAT installation and commissioning. SM
The measurement system (spectrum analyzer, switch-
ing matrix, server computer and server software) can be JUAN M. MARTINEZ,
hosted at the Hub station, NOC or at any other place under Product Manager, INTEGRASYS, SA
the satellite fingerprint. Just using a satellite downlink and a
simple PDA or laptop PC plus software, the installer receives He holds a MSc in Telecommunications Engineering & MSc
the polar and x-polar information from the measurement in Software Development and a BSEE degree in Electronic
system using the receiver portion of the VSAT he is
equipment. With 10 year experience in telecommunication
aligning. The communication between the installer PDA and
project management, he has had several key positions in
the IDU is wireless, so a small wi-fi access point is con-
nected to the IDU ethernet port allowing more than 50 software development , engineering and Sales Divisions in
meters range up to the antenna. The lack of voice communi- different telecom companies.
cations between the installer and the NOC is no longer a He is currently Product Manager for Satellite Carrier Monitor-
problem applying this solution; all the information regarding ing Product-line at INTEGRASYS, SA. He can be reached at
the VSAT CW line-up carrier gathered by the NOC carrier
[email protected] or www.integrasys-sa.com
monitoring system is made available in real-time to the
installer hands.
SUMMARY
FEATURES
V
oom is the catchy name given to parent company with
Rainbow Media’s HDTV satellite new priorities and
platform operating over the US. leadership,” says the
Twenty-one superb HD channels come report’s author, senior
from Rainbow while another 80-odd are analyst Raymond Lee
made up of generally available HD Katz. Katz says post
services as well as ‘ordinary’ standard-def spin-off Cablevision’s
channels. However, a depressing report investors will be more
from investment bankers Bear Stearns comfortable with the
states that Voom might end up being business as a longer-
liquidated. Indeed, Bear Stearns is not term investment that
alone with this Doomsday view. Tom might lead to it outper-
Eagan of Oppenheimer and Co., in an forming its peers. The
October note to investors, said Voom will bankers talk about
have a difficult time growing subscribers Cablevision’s stock
due to heightened HD competition, bouncing back to $28 a
especially from DirecTV. share by the end of next
year (it has been as low
Rainbow Media Enterprises is as $16 over the past
currently a subsidiary of Cablevision, the year, and is currently about $20). By its name (at the end of August). In mid-
giant cable system where the Dolan family comparison, Katz now values RME at a October at a high-profile MIPcom event in
(founder Charles, and his two sons James barely $2.60 a share (down from his earlier Cannes, on the French Cote d’Azur, Greg
and Tom) sit in control. It is Charles who valuation of $8.68), and suggests that Moyer, the recently appointed joint-CEO
is highly supportive of the HD–on- price could slip and slide down to $1.33 of Voom’s 21 HD channels (HD Originals),
satellite, and is backing a spin-off where following initial distribution of stock. said that the market had to understand
Rainbow is floated as a separate busi- that these early adopters had in effect
ness. Charles Dolan will be resigning his Cablevision has some spectacular signed up during Voom’s soft-launch
chair/CEO position on Cablevision’s assets under its belt, some 3m mostly phase. There had been only limited test-
board. Bear Sterns states “we do not New York-based subscribers plus the New marketing in specific markets, and besides
believe [new chair/CEO] James Dolan is a York ‘Mets’ and ‘Nicks’, the Madison there was a shortage of set-top boxes.
proponent of the satellite business”. Square Garden (MSG) channel and Fox Cablevision say that whatever the
Charles Dolan will still hold a significant Sports NY. But last month the Mets said reasons, only 1200 homes were waiting
(indeed, a controlling) number of shares they’d be launching their own channel for signals/equipment, and that churn was
in Cablevision. effective 2006. running at 30%, and twice the churn rate
of DirecTV and Echostar. Moyer’s show-
The detailed 62-page Bear Sterns RME has an estimated income this reel of HD content was spectacular, and
report, issued in October, pulls no year of $1,026m, or 25% of Cablevision’s made compelling viewing.
punches on the prospects for Voom, total. The spin-off, initially announced in
which uses a mix of its own satellite June 2003, could now be in place by year- Bear Sterns agree with the quality of
Rainbow 1, and 16 transponders of leased end, says Bear Stearns, and putting an Voom’s content, saying Voom has a
capacity from SES Americom, at about end to the cash drain on Cablevision, but competitive HDTV advantage (for the
$1m per transponder/year for its transmis- it stresses there could b e a very bumpy “short term”), and predict subscriber
sions. “We believe the Cablevision spin- road ahead especially given that Voom sales this year of (to us a fairly optimistic)
off of Rainbow Media (RME) is part of a has already spent around $1 billion (by 75,000, another 350,000 next year, 508,000
larger picture, that of a refocusing of the Dec 2004), with just 28,700 subscribers to in 2006, 508,000 in 2007 and then tailing
FEATURES
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flexibility
support
reliability
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that Dolan would sell off Rainbow’s owned satellite “Rainbow 1”. Katz says favouring Hawaii and the Western half of
satellite assets and spectrum, and “fold “Another DBS company may be the likely the US respectively. Rainbow also holds 5
that business”. buyer….” ka-Band licences (at 62 deg W, 71 deg W,
77 deg W, 119 deg W, 129 deg W), and
Katz pulls no punches in alerting according to a recent filing Rainbow is
Voom – w ha
wha t’
hat’ s
t’s investors of the potential downside, soliciting information from satellite
it about? which comes at the end of a challenging
period for Cablevision, not least an SEC
manufacturers. One option would be to
use these Ka-band frequencies for local-
investigation into the company’s previ- into-local programming, thereby matching
Fee: $79.90 a month for full offering,
ously disclosed accounting regularities. that already offered by DirecTV and
$40 for ‘basic’ (everything except
Katz fairly stresses that his assumptions Echostar.
HBO, Showtime and other premium
are far from hard and fast, and are
channels)
undertaken in an area where there has But if the Bear Stearns report paints
Channels on offer:
been little or no information from manage- a pretty bleak picture, it is worth remem-
“The most HD, anywhere”, says
ment on their plans for the future. bering that Voom’s Rainbow 1 satellite is
Voom’s blurb
nestled in at the exact same position as
· HD News
Set against this somewhat downbeat Echostar’s 61.5 deg West slot, represent-
· HD Cinema (1-6)
scenario are much more robust statements ing a terrific opportunity to tap into
· Classics
from executives like Moyer. He says that Charlie Ergen’s subscribers. That’s also
· Epics
some 10% of US homes have now the more upbeat view from Oppenheimer.
· Gunslingers
invested in HD equipment, which will lead If Voom manages to grow to more than
· Divine HD
to a 40% ownership level within 3 years. 200,000 subscribers in the next 15 months,
· Monsters HD
“Our proposition is that HDTV is going to then Oppenheimer’s senior analyst Eagan
· Equator HD
expand dramatically, and we hope to puts Voom’s valuation per subscriber
· WorldSport HD
capture a large slice of that market. We are around the $1,000 to $1,200 range. While
· Rush HD
audacious, we are driving trends in the this is well down on the $1550 per-
· Rave HD
degree of programming choice and picture subscription valuation for DirecTV and
· Ultra HD
quality.” Moyer has been with Voom since Echostar it does give a useful $300-600m
· Auction HD
1999. Previously he spent 13 years at overall valuation for Voom, plus the
· Gallery HD
Discovery. Finishing up as chief creative satellite’s resale worth.
· MOOV HD
officer.
· Animania HD
Despite the challenges from DirecTV
Moyer says Voom has to be com- and Echostar (and those pesky cable
The bank’s report suggests that petitive and has been test-marketing companies), we at ‘satmagazine.com’ like
liquidation is not likely in the next 15 various options and is now ready to move Voom. We like its line up, we like it being
months, “but we believe some portion of rapidly ahead. And soon it will migrate audacious, and we’d like it to be a
the market will still assume there is a from MPEG2 to MPEG4 compression, success. The satellite industry needs
reasonable chance for it to occur”. Bear thereby squeezing more channels into more HD, not less, and Voom seems to us
Stearns might simply be guilty of cover- existing transponders. to be sound value for
ing its backside, and alerting investors to money. We hope
possible rough waters ahead, but they Moreover, Rainbow has made no discerning subscribers
suggest that Charles Dolan will keep secret of its plans to expand orbital agree. SM
Voom in business until the cash runs out, capacity. Recently, it acquired two new
around early 2007, with the options then orbital slots (175 deg W, and 61.5 deg W),
allowing him to hold onto Rainbow’s
three cable networks (AMC, WE and IFC).
These are valued by the bank at $3.2bn, London-based Chris Forrester, a well-known broadcasting journalist is the Editor for
and might win considerable interest from Europe, Middle East and Africa for SATMAGAZINE. He reports on all aspects of the
buyers at auction. Rainbow’s DBS industry with special emphasis on content, the business of television and emerging
business could be worth around $790m technologies. He has a unique knowledge of the Middle East broadcasting scene,
through a sale of assets, valuing spec- having interviewed at length the operational heads of each of the main channels and
trum at $130m, and $150m for its wholly- pay-TV platforms. He can be reached at [email protected]
VIEWPOINT
Satellites Help Forecast Major
Earthquakes
By Tom Bleir
Chief Technology Officer
QuakeFinder
E
arthquakes are a terrifying and QuakeFinder’s Operations Center in Palo
devastating natural disaster. They Alto where this data is collected and there is a correlation between these
can strike without warning. They analyzed. Essentially, these electronic fluctuations and the occurrence of
often cause billions of dollars in property components allow activity, a.k.a. magnetic earthquakes. The ground sensors are
damage, completely disrupt daily lives, fluctuations, to be “tracked.” part of a collaborative science project
and normal community services and currently being funded by QuakeFinder,
business activities. To be able to predict Changes in the earth’s magnetic NASA, Stellar Solutions Inc., and the
a major trembler would be a wonderful fluctuations (ELF activity) prior to several California Space Authority. The project’s
benefit to those living and working in large earthquakes have been observed. goal is to monitor these ELF activities and
earthquake country. The most notable ground based observa- provide short term (days to hours)
tion was by Professor Tony Fraser-Smith warning to the State of California OES
One Silicon Valley company may be at Stanford University in conjunction with personnel. This research has been
closing in on a reliable method of earth- the 1989 Loma Prieta earthquake activity, underway since 1999, and involves a
quake prediction and they’re doing it from which he recorded large magnetic growing network since the ground
space. anomalies for two weeks before the actual sensors can only detect earthquakes
earthquake.
QuakeFinder, a start-up company
based in Palo Alto, California, has
developed a satellite and ground-based
detection method that, when completed
and tested, would allow for warning of an
earthquake one week in advance.
VIEWPOINT
VIEWPOINT
recently launched earthquake satellite, project. QuakeFinder hopes that with this
DEMETER, to look for the same type of new data, a statistically significant
signals seen by QuakeSat 1. correlation can be found for these
devastating earthquakes.
Notable observations have also
been made by other satellites including With its network of ground sensors
the Russian satellite Cosmos 1809 and an and satellites, QuakeFinder hopes to
older French Satellite Aureol-3. The significantly improve on the science to
Cosmos satellite collected ELF activity of more accurately predict earthquakes.
a 1987 Armenian earthquake. Aureol-3 Although this is a very difficult and
has conducted worldwide statistical complicated problem, the long-term goal
surveys of earth’s magnetic fluctuations of QuakeFinder is to make earthquake
during the 1990’s. forecasting as accurate and accepted as
hurricane forecasting is today.
Currently QuakeFinder is in the SM
planning phase for QuakeSat 2 a larger
more powerful satellite with more sensi-
tive magnetometers and a larger data
capacity. This means it would be de- Tom Bleier is Chief Technology Officer of QuakeFinder, he can be reached at
signed to detect even smaller magnetic phone at (650) 473-9870 or email at [email protected]. For general
fluctuations in the earth and will be
combined with more powerful ground information contact QuakeFinder via phone at (650)
processing algorithms. The new satellite 473-9870 or email at [email protected]
will be a crucial addition to the research
November 2004 SATMAGAZINE.COM
Back to Contents 33
REGIONAL UPDATE
T
he Holy month of
Ramadan is perhaps the
world’s most moveable religious
feast. Because the Islamic world’s
calendar depends on phases of the moon,
the Islamic year’s twelve equal months of
28 days creep forward when compared to
the Western world’s calendar by about 10
days each year. Consequently, 2004’s
Ramadan festival started on October 16.
Next year’s Ramadan will start on October
5. Ramadan is also the peak-viewing
month for TV in the Middle East. It is
Christmas, Thanksgiving and a year’s
worth of Sweeps Week rolled into one
frantic TV month. It is a period of daytime
fasting, which means huge family oriented
feasts at dusk. And after the feast the TV
hits are rolled out.
REGIONAL UPDATE
REGIONAL UPDATE
EXECUTIVE SPOTLIGHT
For our special issue on VSATs, SatMagazine Managing Editor, Virgil Labrador
interviewed Gilat Chairman Shlomo Rodav. Petah Tikvah, Israel-based Gilat, which
started as a small start-up company in 1987, is now one of the leading VSAT companies in the
world today. It has undergone a major financial and management restructuring in 2003. Rodav,
who became Chairman of Gilat in April 2003 and assumed the position CEO in July 2004,
explained the impact of the changes in Gilat since its restructuring during the interview. Excerpts:
For the benefit of our readers, company’s long-term loan terms conservative balance sheet, improving
could you provide a brief summary of with the banks performances in the past few quarters and
the recent changes in the ownership of • The conversion of the new a more tight-knit global management,
your company and management struc- convertible bonds that were positioning us well to favorably meet the
ture? issued as part of the financial challenges ahead.
restructuring in April 2003. $73
Gilat has concluded major changes million out of $88 million of The current owners of Gilat are Bank
in the past year and a half and the convertible bonds were con- Hapoalim, Israel largest bank, holding
company’s situation today is a completely verted, leaving the company 14.8%, Eliezer Fishman holding 9.5% and
different story than what it was in the with just $15 million in debt and the balance is held by the public and
past. The positive turnaround can be $115 million in long-term bank other investors holding, each. Less than
attributed to a variety of factors that loans at excellent return rates, 5%.
included technology development, due in 10 years
focused activities, organizational changes • An agreement for the modifica- How have these changes affected
and financial restructuring that have tion of the terms of the outstand- your company’s position in the market
improved our positioning in the market, ing loan by Bank Hapoalim to and your approach (or strategy)?
our efficiency and financial results. Gilat
In early 2004 Gilat released its new
The following are some of the In addition, several important SkyEdge family of products. This revolu-
highlights of what we have already done strategic decisions were taken: tionary VSAT system clearly places Gilat
to stabilize and turn the company around: at the top of the technological leadership
• Take StarBand out of Chapter 11 in the industry again, where it has been
Since April 2003, Gilat completed. the (completed November 2003) for most of its history, being the first to
following actions: market with new innovations. We clearly
• Take rStar private - In April the see the SkyEdge as one of the most
• Formulation of strategy going company completed the acquisi- important parts of the Company’s forward
forward tion of all of the shares of looking strategy.
• Changes in senior management common stock of rStar Corpora-
positions tion not already owned by Gilat The first fruits of the company’s
• Implementation of a global for $0.60 per share in cash. As a actions implemented in 2003 began to be
management team result, rStar ceased to be a public visible as of the beginning of 2004.
• Implementation of economic reporting company. Among the positive indicators, the
measures to streamline costs company had a positive EBITDA in each
• Introduction of management • The dompany began trading on of the quarters and positive cash flow, for
tools, more managerial discipline the Tel Aviv Stock Exchange the first time in many quarters. The
• Regaining our technology (TASE) in February 2004, in company’s financial situation is now
leadership position addition to being traded on the stable and improving which allows for
• A financial restructuring process NASDAQ. future growth and far more flexibility in
that eliminated $309 million in our decision-making.
debt, converting this into equity All of these steps taken together
while renegotiating the have created a dramatically improved What areas of the VSAT market do
financial situation for the company, a very you see where the growth areas will be?
EXECUTIVE SPOTLIGHT
And how is your company addressing that market still exists, but the success in able to support numerous applications
these different areas (or market seg- that market is less a technological issue and not having to make significant
ments)? than a business one, due to the heavy investments in additional hubs in order to
initial investments that need to be poured do so. The entry barriers for the business
Gilat’s business stands on two legs - into the market up front. The future will go down; costs will be reduced
technology sales and networks operation. growth of this market depends on a through a small mini-hub offering,
Looking forward, we will continue to serious deep pocket operator that will savings on space segment, network
strengthen both of these areas. In the commit to the required initial investment management and other areas. More
networks operation area, we will be in customers acquisition and commitment operators will be able to start service
focusing on Enterprise, SOHO/SME to the procurement of large quantities. businesses with a smaller initial invest-
vertical markets, and on new channels. ment, resulting in more people benefiting
We have established ourselves as the from VSAT technology.
clear market leader in rural networks
and we plan to continue to expand this SkyEdge consists of five
business. tailored VSAT products, all
operating via a single hub. The
Governmental projects focusing SkyEdge family of products can
on education and telecommunication support a wide range of applica-
infrastructure is another market we are tions and markets, including an
aiming for. Gilat has the demonstrated enhanced DVB-RCS VSAT,
ability to do large-scale turnkey which is interoperable with the
projects, from A-Z, in very short variety of SkyEdge VSATs.
periods of time. Just recently we were These VSATs can be mixed and
able to deploy over 3,000 VSATs and a matched on a single network,
hub in four weeks time for the Venezu- and simply managed using one
elan Presidential referendum, an network management system and
unprecedented deployment pace. Gilat one segment of bandwidth.
can be viewed today as a complete
satellite-network-system-house, capable Gilat CEO Shlomo Rodav In September, we announced the
of providing end-to-end satellite-based first SkyEdge deal with Australia’s second
solutions for almost any application. You recently launched your largest telecommunications company,
SkyEdge Product Family and signed SingTel–Optus. The agreement was for a
In addition, we are going to be some key deals—what is the advantage SkyEdge hub and remote sites for the
focusing more and more on non-fixed and benefits of this product family? expansion of Optus’s already existing
applications such as portable, transport- Gilat networks, which will be upgraded to
able and in-motion solutions. Over the years, VSAT technology SkyEdge as well.
has seen a variety of developments that
Finally, our company is moving from have increased efficiency, quality and What can we expect from Gilat in
being a vendor of satellite access to being affordability. The evolution of VSAT the next year?
a vendor of satellite network solutions in markets has generated separate systems
which VSATs may be only part of the for separate markets. However, until We have received a good reception
overall solution. We have been able to recently, the technology did not allow the for our SkyEdge product family and our
add to our VSAT networks hybrid integration of different VSAT platforms, sales funnel has more and more SkyEdge
solutions, which include, for example, to work harmoniously on the same hub, prospects, surpassing that of our tradi-
DSL, wireless and other technologies. and serve all markets, as part of a single tional legacy products. In the coming
system. The introduction of SkyEdge year, we will introduce additional phases
Where do you see that US con- removes this limitation and opens a world of the SkyEdge system that include
sumer broadband market going? of opportunity for VSAT operators and among other things, the DVB-RCS
users. platform and compatible DVB-RCS hub.
The VSAT consumer market in the This breakthrough allows operators
US has not met expectations of all to expand their business horizons, being SM
players, including Gilat. The potential in
November 2004 SATMAGAZINE.COM
Back to Contents 38
MARKET INTELLIGENCE
F
or much of the Internet era, band However, until terrestrial national
width has been a limited commodity backbones and networks become much
in most of Africa, largely because of more extensive, unserved areas will need
regulatory hurdles that prohibit competi- to rely on satellite connectivity. Further,
tion amongst carriers, capacity con- Africa’s vast and often inaccessible
New Skies Satellites’ new NSS-7 satellite
straints of a limited number of service terrain makes it prohibitively expensive to
also has a global Ku-beam covering the
providers, and because the excessive roll out traditional wireline networks and
entire continent except for parts of East
costs of such bandwidth have reduced implement fiber optic links in the
Africa, and it has a spot beam covering
the demand. Restructuring of the telecom Continent’s hinterlands. This makes low-
Southern Africa and another for West
sector is now taking place in a growing cost satellite services attractive, particu-
Africa.
number of countries in Africa, and a larly to small- and medium-sized enter-
number of initiatives are beginning to prises (SMEs), large organizations – in
At the same time, recent develop-
change the bandwidth landscape. the public and private sectors – as well as
ments in Internet-based VSAT systems
personal users.
have now rendered the technology into a
Most recently, the SAT-3, WASC,
commodity. A central hub can be placed at
and SAFE undersea optical fiber cables Underscoring continued expectation
a location where the upstream Internet
have been completed, providing high- for growing demand in these areas,
costs are lowest (whether in Africa or in
speed high-bandwidth links between several new satellites serving Africa have
other regions, such as Europe or North
Europe and Asia and 14 West African recently been launched which dramati-
America), while serving many thousands
coastal countries. The recent establish- cally increase the availability of band-
of low-cost terminals in Africa via satellite
ment of the West African Section (WASC) width to even the remotest parts of the
using small diameter antennas (0.6 to 1.8
has already resulted in efforts by opera- Continent. The full extent of available Ku-
metres) and associated customer-
tors in Gabon, Cote d’Ivoire, Namibia, band satellite bandwidth in Africa is
premises equipment, which for enterprise-
Nigeria, Senegal and South Africa to shown in the associated map produced by
and consumer-class systems can cost
establish large international Internet links. the IDRC Acacia program, which shows
less than US$2,000 and US$1,000,
This is substantially increasing connec- the footprints of all of the Ku-band
respectively. The markups on equipment
tivity in the capital cities of these coun- satellites overlaid on the Continent.
and installation after cost increases
tries and helping to build the case for
imposed by shipping, duties and clear-
establishing national backbones. A similar In addition to VSAT services
ance payments means that by the time the
project is planned for Africa’s east coast provided via 28 C-band beams (not
equipment is installed, up to US$3,000 can
(EASSY), and along with the proposals illustrated in this particular map), a
be added to the end-user’s FOB cost. So
for a southern African fiber network (SRII) significant number of European and
bulk shipments and streamlined clearance
and COMTEL for the countries of the African providers have entered the Ku-
procedures, along with elimination of
Common Market for Eastern and Southern band VSAT market since services first
duties for ICT equipment, are important
Africa (COMESA), the coming years may broke ground in 2002 using Panamsat’s
in maintaining the advantages of low cost
well see most of the major cities in Africa PAS-10 satellite. Now, Ku-band services
for the service.
with much improved telecommunication over Africa are available on PAS-1R, PAS-
One of the key advantages of
capacity. 10, NSS 7, Atlantic Bird 7 (the renamed
VSATs is their ability to deliver access
Stellat 5), Nilesat 101 and several Intelsat
quickly. The recent availability of low-
satellites including IS-904 and IS-901.
cost terminal equipment is helping to
November 2004 SATMAGAZINE.COM
Back to Contents 39
MARKET INTELLIGENCE
STOCK MONITOR
ADVERTISER’S INDEX
Company Symbol Price 52-week Range
(Nov. 1) (Click on the page no. to go directly to
APT SATELLITE ATS 1.50 1.32 - 3.50 the ad; click on the url address to go to
ANDREW CORP ANDW 14.44 9.30 - 21.67 website)
ASIA SATELLI ADR SAT 19.45 15.20 - 22.80
BALL CORP BLL 40.45 27.15 - 40.58 AAE 20
BOEING CO BA 49.95 37.60 - 55.24 www.aaesys.com
BRITSH SKY BROAD BSY 37.49 33.22 - 59.24
CALAMP CAMP 6.68 5.12 - 17.20 ANACOM 28
COM DEV INTL CDV.TO 2.51 2.15 - 3.80 www.anacominc.com
COMTECH TELCOM CMTL 27.87 14.93 - 39.52
DIRECTV DTV 17.02 14.70 - 18.81 COMTECH EF DATA 17
ECHOSTAR COMM A DISH 31.62 26.95 - 40.10 www.comtechefdata.com
FREQUENCY ELEC FEI 12.50 10.18 - 17.13
GILAT 13
GILAT SATELLITE GILTF 5.904 3.95 - 9.86
www.gilat.com
GLOBECOMM SYS GCOM 5.81 4.15 - 7.58
HARRIS CORP HRS 61.44 36.34 - 61.58 GLOBAL LINK 11
HONEYWELL INTL HON 35.04 28.60 - 38.46 www.satnews.com/globallink
INTEGRAL SYSTEM ISYS 19.71 15.35 - 22.12
KVH INDS KVHI 9.09 6.61 - 34.729 ISCe 6
L-3 COMMS HLDGS LLL 66.70 45.60 - 68.88 www.isce.com
LOCKHEED MARTIN LMT 55.79 43.10 - 56.85
NEW SKIES SATEL NSK 7.93 6.38 - 8.16 KAVERA 25
NEWS CORP LTD NWS 32.11 30.61 - 39.74 www.kavera.com
NORSAT INTRNTL NSATF.OB 0.55 0.38 - 0.95
NARDA SATELLITE
NTL INC NTLI 65.42 46.65 - 73.81
NETWORKS-L3 31
ORBITAL SCIENCES ORB 10.75 8.99 - 14.19 www.l-3com.com/snd/
PT PSFIK STLIT N PSNRY.PK 0.20 0.00 - 0.00
QUALCOMM INC QCOM 40.56 21.805 - 44.41 ND SATCOM 14
RADYNE COMSTRM RADN 7.05 6.16 - 13.426 www.ndsatcom.com
SCIENTIFIC ATL SFA 27.46 24.61 - 38.59
SIRIUS SAT RADI SIRI 3.91 1.88 - 4.29 PANAMSAT 24
SES GLOBAL SDSFa.F 7.95 6.30 - 8.85 www.panamsat.com
TRIMBLE NAV TRMB 28.87 18.06 - 32.73
VIASAT INC VSAT 19.27 16.79 - 28.91 PARADISE DATACOM 26
www.paradisedata.com
XM SATELLITE XMSR 33.06 19.75 - 33.11
PTC 10
www.ptc05.org
SES GLOBAL 19
www.ses-global.com