ISSUE 30 | JUNE 2014
SKY IS NO LIMIT
LONG LIVE THE BOOM
Region’s UAV market set to reach uncharted heights
MENA’s TV channel proliferation is no fleeting episode
ADOPT NG HTS
Oil and gas should embrace the evolution or face a backward future PUBLICATION LICENSED BY IMPZ
SatEditorial Group Chairman and Founder Dominic De Sousa Group CEO Nadeem Hood
Time to say goodbye Everything is going well. Satellite operators appear to be in good health, interesting new products and alliances will likely benefit numerous verticals and with the upcoming proliferation of mobile data users in emerging markets, the satellite industry collectively will have a lot to do. For 13 months, I’ve heard about the industry’s resilience. Today, I fully agree. Satellite is not going anywhere, and with some value-added services put on offer, this market will see good times, even better than expected. You’d be right to think I’ve also heard a bit from the gloom-spreaders. But I still hold the industry in positive light, especially after speaking to various representatives about CommunicAsia’s SatComm track. We believe that the industry has a lot of remarkable developments unfolding and SatComm2014, taking place this June in Singapore, will be an ideal place to address these. On top of the market activity taking place, I also have my own developments. My time at the helm of Satellite Pro has come to an end. The last 13 months have been interesting to say the least. I have met numerous people along the way that not only made my role as editor better, but who have given me reason to smile even as I leave the magazine. Ultimately, I say goodbye amid positive activity and healthy potential. Thank you for all your support, it’s highly appreciated.
Publishing Director Raz Islam raz.islam@cpimediagroup.com +971 4 440 9129 Editorial Director Vijaya Cherian vijaya.cherian@cpimediagroup.com +971 55 105 3787 Editor Adrienne Harebottle adrienne.harebottle@cpimediagroup.com +971 55 105 3776 ADVERTISING Group Sales Manager Sandip Virk sandip.virk@cpimediagroup.com +44 7734 442526 Senior Sales Manager Rodi Hennawi rodi.hennawi@cpimediagroup.com +971 4 440 9106 DESIGN Art Director Simon Cobon PHOTOGRAPHY Jay Colina
Adrienne Harebottle Editor
PRODUCTION Production Manager James P. Tharian james.tharian@cpimediagroup.com +971 4 440 9146 CIRCULATION Database Manager Rajeesh M rajeesh.nair@cpimediagroup.com +9714 440 9147
In this edition: “HTS is an evolution of VSAT. Will it hurt? Not really. It will just push the operators to adapt” Nabil Ben Soussia, Managing Director of Safa Telecom Abu Dhabi Page 10
“If the growth in MENA TV channels will diminish soon – they keep asking this. We predict this pattern will be the same in the future” Ali Korur, Regional Vice-Director of Eutelsat’s Dubai office Page 18
“The space industry is in an era of change, and change is not only necessary, it’s vital. But reliability is also vital and it can be quite fragile as certain changes take place” Anne Aufrere, Head of Financing and Insurance Department at Arianespace Page 27
“Hybrid networks consisting of terrestrial and satellite links are ideally positioned to meet network operators’ challenges” Jean-Philippe Gillet, Intelsat’s Vice-President of Europe, the Middle East and Africa Page 40
2 | SatellitePro | June 2014
Group COO Gina O’Hara
DIGITAL SERVICES Digital Services Manager Tristan Troy Maagma Published by
Registered at IMPZ PO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com Printed by Printwell Printing Press LLC
© Copyright 2014 CPI. All rights reserved. While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
SatContents Issue 30 | June 2014
10
News
SatRisk Management
4
27
Causing “chaos”
Striving for reliability
Capacity deals, new satellites being launched, significant industry activity across the African continent and more
SatLead
10
Market experts attending the World Space Risk Forum 2014 address reliability in a changing industry landscape
18
SatVertical: Government
32
Embrace market progression
Enabling government’s future
SatVertical: Broadcast
SatEvents
18
36
Long live the TV channel boom
Bigger and better
HTS costs money to implement, but late adoption also comes at a price. Oil and gas operators need to embrace evolution
The number of satellites increase, the number of transponders increase and the number of TV channels increase – this pattern will continue into the future
MSS helps the sector’s end users overcome communications challenges by adapting market offerings
27
CommunicAsia2014’s line-up of conference speakers and discussions will address paramount issues that shouldn’t be missed
SatGuest SatImaging
22 Sky is no limit for UAV market
Business is set to take off, with the market’s lone service provider keen on the ride
40 Cellular backhaul set to ring
Network operators will increasingly require backhaul services as surging demand for mobile data calls for capability upgrades
June 2014 | SatellitePro | 3
SatNews
SES, CETel sign new capacity deal for VSAT services in Africa SES and CETel have signed a new capacity agreement for service on SES’s NSS-7 satellite located at 20 degrees West. Under the new deal, 72 MHz of capacity will be utilised by CETel to extend its global corporate and governmental VSAT networks across Africa. Headquartered in Germany, CETel is a provider of satellite communications solutions with a focus on the Middle East, Africa and Europe, offering tailored end-to-end services. “Demand for satellite capacity in Africa has been increasing in the last few years, and SES, with its global expertise and extensive satellite fleet, has been a reliable partner for us in meeting this demand,” says Guido Neumann, Managing Director of CETel. “This latest capacity agreement further enables us to provide tailored solutions and seamless services to our customers in Africa.” www.ses.com An artistic rendering of SES’ NSS-7 satellite
www.ce-tel.com
GLOBAL FIELD-SERVICE ALLIANCE TO SUPPORT MARITIME VSAT
LOCKHEED MARTIN SETS LAUNCH DATE FOR WORLDVIEW-3
LIFT-OFF: EUTELSAT 3B SUCCESSFULLY LAUNCHED
Airbus Defence and Space has launched its new Global Field-Service Alliance (GFSA). The alliance is designed to ensure fast and cost-effective VSAT installation and service support for maritime VSAT satellite service providers. The objective is to bring together expertise of maritime field installation and equipment to enable 24/7 installations and maintenance in major ports around the world, ensuring new levels of service response and quality for ship owners. Three service partners have been fully certified as members namely, Pro Nautas Marine Electronics in Germany, Livewire Connections in the United Kingdom and SRH Marine in Greece. GFSA-certified partners will provide the comprehensive range of installation and technical service to ensure uninterrupted operation of Airbus Defence and Space’s VSAT services.
Lockheed Martin Commercial Launch Services will launch DigitalGlobe’s WorldView-3 commercial remote sensing spacecraft on August 13. The satellite will be launched aboard an Atlas 5 from Space Launch Complex 3E at Vandenberg Air Force Base, in California in the United States. WorldView-3 will have an average revisit time of less than a day, collecting up to 680,000sq km of imagery daily.
Eutelsat 3B was successfully launched by a Zenit-3SL rocket operated by Sea Launch AG from the ocean-based Odyssey Launch Platform in the Pacific Ocean. Lift-off of the rocket carrying the six-tonne satellite took place on May 26, 2014. After a one-hour flight, the Zenit3SL booster released Eutelsat 3B into geosynchronous transfer orbit. Partial deployment of the satellite’s solar array was carried out successfully within two hours of spacecraft separation. “Eutelsat 3B will be a strong platform for growth at our 3 degrees East orbital position. Its exceptional range of payloads will enable us to tailor our response to customers operating broadband, data, telecom and video services in a vast footprint spanning from Brazil to Central Asia,” said Eutelsat Chairman and CEO, Michel de Rosen.
www.airbusdefenceandspace.com
4 | SatellitePro | June 2014
www.lockheedmartin.com www.digitalglobe.com
www.eutelsat.com www.sea-launch.com
Satellite TV channels causing “chaos”
ARABSAT SPONSORS ASIA MEDIA SUMMIT IN JEDDAH
Satellite TV channels in the Middle East need to be regulated, said the director general of the Arab States Broadcasting Union (ASBU) during a discussion at this year’s Asia Media Summit. The annual conference took place in Jeddah, Saudi Arabia, from May 6 to 8. Speaking on the event’s opening day, Salaheddine Maaoui, ASBU’s Director General, stated that a fraction of the channels in the Arab world are owned by the government, while the vast majority are privately owned. Many of these channels, he added, are “broadcasting all kind of stuff resulting in chaos and confusion.” “Only 15% of the [almost 1,300] channels are owned by the government, the rest belong to private citizens. Anyone who has the money can set the agenda of a channel. There are no checks and balances, the government has little control over these channels. Before, you could count [these channels] on your fingers. Not anymore. The flipside of it is that there is no control. There
Arabsat participated in the Asia Media Summit (AMS) as a strategic sponsor. The annual event took place in Jeddah, Saudi Arabia, from May 6 to 8, 2014. “It is a very important event for us. Arabsat’s participation comes within the framework of the strategic relationship that binds Arabsat with the Ministry of Culture and Information, one of the largest customers and users of Arabsat satellites,” says Khalid Balkheyour, President and CEO of Arabsat. During the summit, Arabsat showcased its latest projects and new satellites in addition to highlighting its range of services. Decision makers, media professionals and stakeholders of news and programming from Asia, Africa, the Middle East, Europe and North America attended this year’s AMS, which is supported by numerous regional and international broadcasting associations.
Salaheddine Maaoui, ASBU’s Director General
is no legislation to govern them,” he said. Other parts of the world have regulations in place to monitor illegitimate content, however, Maaoui said this lack in the Middle East is a weakness. “In the Arab world, we have no regulations. This is our weakness. We should have unified Arab standards to monitor what is aired on satellite television channels. There are regulations in the first world; they have regularised satellite television,” he said. www.arabsat.com
www.arabsat.com
TIMA, EUTELSAT PARTNER FOR SNG OPERATIONS IN MEA The International Media Associates (TIMA), a global facilities and content service provider, has signed a three-year contract with Eutelsat for dedicated capacity on the Eutelsat 10A satellite. The capacity will be used to serve the growing market for satellite news gathering (SNG) across the Middle East, Africa and Europe as well as for reporting from the studios of its central London headquarters. “Satellite is a vital platform for highquality content distribution, especially in an age of HD transmission. It’s reliable, high quality and still provides the easiest and quickest way to distribute content to a wide range of customers around the world,” says Alla Salehian, CEO of TIMA. With operations in the Middle East and offices in London, Paris and Washington DC, TIMA provides a range of services for the international news broadcast industry. www.eutelsat.com An artistic rendering of Eutelsat’s fleet of satellites
www.tima.com
June 2014 | SatellitePro | 5
SatNews
Sat Space Africa doubles capacity on Yamal-402 satellite Sat Space Africa, an internet services provider, has increased capacity from the Yamal-402 satellite. Since the company began using the Russian satellite’s capacity in October 2013, it has doubled the volume of leased capacity. To provide services based on iDirect Evolution technology, Sat Space is using a teleport in Rugby, the United Kingdom. Forward links, uplinked in the European Beam of Yamal-402, are downlinked in the Southern Beam of the satellite due to the crossconnection possibility between the beams. Its operational centre is providing customers with 24-hour support from Namibia. “Yamal-402 will provide us with excellent Ku-band coverage for the central and eastern parts of Africa. We can now offer satellite internet services in all of sub-Saharan Africa to our customers, many of whom have panAfrican service demands,” said Shimri Lotan, Managing Director of Sat Space Africa.
The Yamal-402 communications satellite at the Khrunichev State Research and Production Space Centre
www.sat-space.net
TELONE TO EXPAND BROADBAND SERVICES IN AFRICA VIA HYLAS 2
VALLEYPOINT TELECOMS EXPANDS COVERAGE IN WESTERN KENYA
AVANTI WINS CONTRACT FOR KENYAN EDUCATION PROGRAMME
Avanti Communications and Zimbabwean national telecommunications firm TelOne have signed a broadband contract, enabling TelOne to deliver services to the consumer, enterprise and public sectors via Hylas 2. “With significant unmet demand in terms of service availability and quality, our partnership with Avanti enables us to effectively address this need today,” said Chipo Mtasa, Managing Director at TelOne.
African telecommunications operator Valleypoint Telecoms has signed a contract with Avanti Communications to extend broadband coverage across Western Kenya. Deployed via Avanti’s Hylas 2 satellite, the new broadband service will target consumer and enterprise customers in the region over a multi-year period. “We are pleased to extend our coverage with Avanti. We have co-created a service that will bring real competitive advantage to Kenyan customers,” said Joseph Weke, CTO at Valleypoint Telecoms Matthew O’Connor, Avanti Communications’ COO, added: “With our Hylas 2 satellite, Avanti Communications provides 100% coverage of Kenya. Our service provides the flexibility and quality to fully address the diverse demands of the customers in this region.”
Avanti Communications has signed a strategic partnership with the UK Department for International Development (DFID) to deliver education programmes to pupils in Kenya. DFID has contributed USD 15.9 million in funding to the programme through its Girls’ Education Challenge initiative. Through this partnership, the programmes will reach 60,000 Kenyan pupils, including a large proportion of girls currently marginalised from education. The services will use satellite broadband via Avanti’s Hylas 2 satellite, which provides 100% coverage over Kenya. “We are delighted to be leading such a significant programme for Kenyan education, enabled by DFID funding. Our innovative collaboration provides a unique solution to overcome the huge challenges faced by this sector. Wide-scale deployment will positively impact hundreds of communities, powered by Avanti’s Ka-band satellite technology,” said Avanti’s Chief Executive David Williams.
www.avantiplc.com www.telone.co.zw
www.avantiplc.com Chipo Mtasa, Managing Director at TelOne
6 | SatellitePro | June 2014
www.valleypointtelecoms.com
www.avantiplc.com
Thuraya, ViaSat to launch dedicated M2M platform Thuraya and ViaSat Inc have signed an agreement to develop and launch a dedicated machine-to-machine (M2M) platform combined with M2M-specific products and commercial packages. The Thuraya ViaSat M2M solution will be a highly secure, end-to-end managed service suitable for end-users across the energy, utilities, logistics and enterprise sectors, among others. “Thuraya recognises that one of the key drivers of the Internet of Things is the growing adoption of M2M technology across industries. The partnership with ViaSat will enable us to broaden our M2M product portfolio, for both fixed
and mobile applications, to better serve our enterprise users’ need for asset tracking and remote monitoring services,” said Randy Roberts, VicePresident of Innovation at Thuraya. “The strategic partnership with ViaSat will address this through a proven, highly secure, cost-effective and reliable M2M platform to manage these processes effectively,” added Roberts. The Thuraya ViaSat M2M service is expected to be launched in early 2015. Randy Roberts, Vice-President of Innovation at Thuraya
KVH DOUBLES MINI-VSAT BROADBAND NETWORK CAPACITY IN AFRICA KVH Industries has doubled the capacity of its mini-VSAT Broadband network in the oil and gas-rich areas off the West African coast, where maritime traffic and customer demands are surging. The additional Ku-band capacity addresses demand in an area where offshore supply vessels are the critical link between drilling rigs, cargo ships and operations on shore. This area includes the international waters of western Africa, where oil industry activity is increasing, and reliable satellite communications is vital to improving the quality of life and safety for crews and ships.
According to industry reports from the US Energy Information Administration, Africa’s proven oil reserves have grown 120% in the past three decades, from 57 billion barrels to 124 billion barrels, with at least another 100 billion barrels waiting to be discovered. Proven reserves of natural gas have grown 140% in this same 30-year period. The mini-VSAT Broadband network covers 100% of the maritime market through a combination of 19 Ku-band transponders and three C-band beams. www.kvh.com
www.thuraya.com www.viasat.com
KVH IP-MOBILECAST GOES LIVE The IP-MobileCast content delivery service has gone live, enabling seafarers in the middle of the ocean to have access to daily digital newspapers, TV programmes and news, sports updates, music and movies via a multicasting service. The content delivery service was developed by KVH Industries for its mini-VSAT Broadband satellite network. The company recently completed beta testing of IP-MobileCast and is making the service available immediately to existing mini-VSAT Broadband customers who are interested in subscribing to the service. IP-MobileCast utilises multicasting technology to deliver large amounts of content to many ships at once, overcoming high satellite communications costs typically charged to deliver files for individual use. With this new service, content is delivered over the top of the network so there is no charge for the delivery, only for the content itself. The multicasting transmission does not affect the vessel’s miniVSAT Broadband onboard data speed, while the service ensures digital rights management of copyrighted material. The content is delivered using forward error correction to minimise burden on the mini-VSAT Broadband network. www.kvh.com
June 2014 | SatellitePro | 7
SatNews
Yahsat claims third Satcom Africa award Yahsat received the SatCom Star Award for “Satellite Operator of the Year” at Satcom Africa 2014, which ran in Johannesburg, South Africa, from May 20 to 21. This marks the third Satcom Africa award for the Abu Dhabi-based satellite operator, having won the “Most Innovative Product/Service for Africa” in 2012 and 2013. Commenting on the award, Masood M. Sharif Mahmood, CEO of Yahsat, said: “Yahsat has seen impressive growth since launching just two years ago, winning backto-back SatCom awards for most innovative product, and rounding this up with this year’s satellite operator of the year award.
“Our role at Yahsat is to be a responsible company that drives social and economic growth by providing users with access to services that they can genuinely benefit from. The ability to connect to the unconnected parts of the world is the real benefit of our services.” The SatCom Star Awards were launched in 2007 to recognise new contributions to the field of satellite communications in Africa. The awards are judged by an independent board of advisers comprising of industry professionals. www.yahsat.ae
VIVA BAHRAIN JOINS DATAMENA ECOSYSTEM
Mahesh Jaishankar, Vice-President of datamena
Datamena has announced that Viva Bahrain has joined its ecosystem. Datamena is a Dubai-based carrier-neutral data centre and connectivity platform, serving the Middle East and Africa region. Through this partnership, Viva Bahrain will extend its presence into datamena in Dubai, opening up interconnectivity benefits with the global and regional carriers that datamena hosts. Enterprises and carriers currently within the datamena ecosystem will benefit from enhanced and amplified connectivity toward Bahrain and the region through Viva’s backbone network. www.datamena.com www.viva.com.bh
AFRICELL TO BUY MAJORITY STAKE IN ORANGE UGANDA
The Yahsat team receiving the SatCom Star Award for “Satellite Operator of the Year” at Satcom Africa 2014, in Johannesburg, South Africa
ARABSAT SHOWCASES BADR-7 AT SATCOM AFRICA 2014 Arabsat’s participation in the SatCom Conference and Exhibition held in Johannesburg, South Africa, from May 20 to 21 follows the company’s increasing presence in the African market, said Khalid Balkheyour, Arabsat’s President and CEO. “Our recently launched fifthgeneration satellites cover the entire African continent, through which TV broadcast, telecommunications and internet services are provided. Arabsat’s satellites also broadcast TV bouquets in addition to linking several ground satellite stations in Africa to European and Asian 8 | SatellitePro | June 2014
ground stations for internet services and mobile networking,” said Balkheyour. “Furthermore, Arabsat has started its sixth-generation satellite project, which will greatly increase satellite capacity for all of Africa with full in-orbit back-up.” At the event, Arabsat showcased its Badr-7 satellite capabilities. “Badr-7 is expected to be launched by the end of 2015 to cover the Middle East and central Asia from Arabsat’s exclusive hotspot at 26 degrees East,” he said. www.arabsat.com
Africell Holding has signed an agreement with the Orange Group to acquire its majority stake in Orange Uganda. The transaction is currently subject to regulatory approval. Upon completion, it will bring Africell’s portfolio to four operations with a total market potential of over 120 million inhabitants. “Uganda, with a population of over 37 million and a penetration rate of 50%, was well within the criteria we had set to further expand in Africa, targeting high potential and high growth markets,” said Ziad Dalloul, Chairman and CEO of the Africell Group. Africell is still looking to add one more market to its portfolio before the end 2015. www.africell.gm www.orange.com
In Operation In Operation Up to 89 transponders on C, Ku and Ka-Band, ABS-2 delivers increased capacity to Africa, Asia Pacific, Europe, the Middle East, Russia and CIS countries. Contact ABS for more information at: info@absatellite.com www.absatellite.com
Visit us at CommunicAsia 2014, Booth 1R3-01, Hall C Level 1
SatLead
Embrace market progression HTS promises to take oil and gas operations to a whole new level. But it’s not without interoperability and overhaul struggles. While HTS will cost money to implement, late adoption comes at its own price. But rather than battling a do-or-die situation, industry representatives tell Adrienne Harebottle that players should go along with the next phase of evolution
10 | SatellitePro | June 2014
June 2014 | SatellitePro | 11
SatLead
Oil and gas exploration installations are often located in remote, harsh environments, well beyond the reach of terrestrial networks. This leaves satellite as one of the only reliable communications solutions for this sector, one that is marked by evergrowing data requirements. Bandwidththirsty applications such as real-time transmission of video, seismological and geological data, teleconferencing and crew welfare have placed pressure on the budgets and networks of oil and gas players. This is no simple feat to overcome; these bandwidth-consuming applications are becoming essential competitive tools for improving accuracy and effectiveness of field operations, which lead to very stringent availability and reliability requirements that service providers must meet. But higher reliability and availability come at a higher cost. Therefore, a key challenge is to meet growing bandwidth requirements without the cost of these communications spiralling upwards. Are then high-throughput satellites (HTS) the answer? HTS systems can meet increasing data requirements at a substantially lower cost than regular satellites. However, implementing HTS is not without its problems, namely cost and compatibility for equipment. And these are cited as major inhibitors that may adversely affect or slow the uptake of new technologies in the sector, says Brent Prokosh, Consultant at Euroconsult’s Satcom Practice. Euroconsult, an international analyst firm specialising in satellite applications, communications and digital broadcasting, has published the first market report on HTS. “Due to the high sunk costs of existing infrastructure, oil and gas companies as well as service providers may take a gradual approach to HTS adoption, in line with their equipment replacement cycles. This means that oil and gas companies and service providers alike will place additional focus on the total cost of ownership of HTS communications solutions as opposed to simply considering the benefits of lower bandwidth prices,” says Prokosh. “We believe that HTS solutions are very suitable for the oil and gas market. However, there are some causes for concern such as the interoperability of existing equipment 12 | SatellitePro | June 2014
and the reliability of HTS systems that are still too new to be considered ‘proven’. The majority of HTS systems, to date, have employed Ka band due to the high availability of spectrum and the lower availability of Ku band spectrum. This has caused concerns within the oil and gas sector because Ka band’s higher frequency (26.5 to 40 GHz) is accompanied by a higher susceptibility to propagation effects caused by rain fade or atmospheric disturbances. Given the mission-critical nature of most oil and gas communications, this drawback to Ka-band HTS systems is leading service providers and oil and gas companies to adopt a ‘wait-and-see’ approach until it is proven
that systems can overcome these concerns,” adds Prokosh. This ‘wait-and-see’ approach, however, comes with some risk, says Riyadh Al Adely, Managing Director of SkyStream, a provider of managed and turnkey VSAT solutions for various vertical markets including the oil and gas sector. Al Adely notes that the benefits realised in other regions of the world, where HTS has already been deployed will be more than matched in the Middle East, as this region is not hampered by disruption caused by rain. “There shouldn’t be risk in early adoption of HTS solutions if both the systems integrator and the client are aware of the
offering and its limitations. If HTS is well positioned to the right application, the returns will be significant. On the other hand, however, there is certainly risk in late adoption. The client will definitely be disadvantaged either by delays or higher cost if they adopt an HTS product late. To start, both the customer and systems integrator should look at the total cost of ownership. HTS will beat all the benchmarks when it comes to serving client needs while also considering the total cost of ownership. “Considering that, to date, all HTS is Ka band, except Intelsat’s EpicNG which is yet to be launched, the Middle East region will see better HTS performance due to the dry
“Considering that, to date, all HTS is Ka band, except Intelsat’s EpicNG which is yet to be launched, the Middle East region will see better HTS performance due to the dry weather we experience” RIYADH AL ADELY, MD of SkyStream
weather we experience compared to other regions such as South America, parts of Africa and other areas of the world. HTS is definitely ideal for the region’s oil and gas sector. HTS can offer backbones to headquarters, field operations and camps, whether or not they are mobile or fixed sites,” says Al Adely. Nabil Ben Soussia, Managing Director of Safa Telecom Abu Dhabi, also stresses the risk of late adoption of HTS, saying that the levels of satellite efficiency cannot compare to that offered by HTS. Therefore, those who implement HTS late are greatly disadvantaged. Safa Telecom is a provider of mobile and fixed satellite communications solutions, with expertise in the oil and gas sector. June 2014 | SatellitePro | 13
In Operation In Operation Up to 89 transponders on C, Ku and Ka-Band, ABS-2 delivers increased capacity to Africa, Asia Pacific, Europe, the Middle East, Russia and CIS countries. Contact ABS for more information at: info@absatellite.com www.absatellite.com
Visit us at CommunicAsia 2014, Booth 1R3-01, Hall C Level 1
“There is, of course, a risk of losing efficiency compared to the competition. Imagine today, an oil field without communications. How efficient will it be? We can say the same in a few years about an oil field without HTS. How efficient could it be?” he says. Ben Soussia also sees the impact of HTS in the Middle East being the same as that experienced elsewhere. However, certain applications would have a greater impact here, he says, pointing to telemedicine and security applications. “If we take the GCC region, for example, the staff are foreigners and most of them will not see their families when they get back to the city from their offshore locations. Therefore, employee welfare in this region has significant importance. It’s the same if we speak about Iraq, where the security aspects are much higher than in many other countries. “Telemedicine and videoconferences are also crucial to have in the Middle East region and will highly impact operations, as many medical specialists are not sitting in the regional offices but possibly in Europe, the United States or somewhere else abroad. “HTS has a big impact in oil and gas operations in the Middle East region. It offers operators and companies much more bandwidth, and in doing so enables them to consider new opportunities even in the way they manage their operations. Connection is no longer such a costly tool restricted only to vital applications. “With HTS, oil and gas companies can reconsider many new aspects, such as Health Safety and Environment (HSE) now having the possibility to organise even telemedicine from the rigs and platforms. Furthermore, security aspects can benefit from HTS, as it is no longer radically expensive to have live video surveillance from remote sites. “And last but not least, companies are reconsidering welfare systems with HTS. It will be possible and feasible to provide staff with connectivity, making the environment more friendly and at times seemingly less remote when employees can connect with their families,” says Ben Soussia. Greater data at lower costs certainly makes end users smile, but it puts somewhat of a strangle-hold on industry players. A downward pressure on pricing will hurt
“HTS is an evolution of VSAT. Will it hurt? Not really. It will just push the operators to adapt. It will have the same effect that VSAT had when it moved from C band to Ku band. Today, we can hardly find a new project with a C-band payload. It will be the same with Ku band in the future. In my opinion, HTS will create a new market” NABIL BEN SOUSSIA, Managing Director of Safa Telecom Abu Dhabi
businesses not offering HTS, but for those not able to leverage the cost of new infrastructure, they’re in for challenging times. Strangling pressures “HTS systems are already impacting the cost of bandwidth in many segments and our interviews have revealed early evidence that prices of traditional capacity in the MENA region are trending downwards,” says Euroconsult’s Prokosh. “This may be due to a mix of lower military satcom usage associated with US and NATO troop drawdowns, as well as competition from lower-cost HTS capacity from regional players, such as Arabsat and Yahsat. Furthermore, in a recent presentation at a JP Morgan technology conference in Barcelona, Intelsat’s CEO described how his company’s telecom backhaul and trunking business in Africa has been adversely affected by an influx of HTS capacity in the market. Downwards price pressure has been intense enough that Intelsat was forced to renegotiate capacity prices lower with certain telecom clients who were struggling to compete under existing prices. “This example of cannibalisation will not necessarily repeat itself across all vertical markets, however, oil and gas service providers who completely ignore the benefits of lower bandwidth costs afforded by HTS systems, may find themselves losing ground
June 2014 | SatellitePro | 15
SatLead
From left to right: Nabil Ben Soussia, Managing Director of Safa Telecom Abu Dhabi, and Riyadh Al Adely, Managing Director of SkyStream
to early adopters. Service providers are likely to adopt HTS in stages, blending it in to their existing capacity portfolios, which will inherently allow them to offer customers higher throughput, or the same throughput for lower costs due to the higher spectral efficiency and frequency reuse of HTS systems lowering the cost per bit. Rignet’s partnership with Inmarsat for capacity aboard its Global Xpress constellation, and Harris Caprock with Intelsat’s Epic systems highlight how service providers are positioning themselves for the future,” says Prokosh. Since 2004, there have been 31 launches of HTS systems or payloads, and there are a further 33 launches slated for the next three years alone. This influx of capacity into the market will surely add competitive pressure to the satellite industry, which may very well translate into downwards pressure on prices. “While HTS systems, including payloads, are spreading rapidly, some service providers have concerns about the amount of back-up capacity currently available in Ka band in certain regions. In the event of an in-orbit system failure, traditional Ku-band capacity is much easier for a service provider to replace in their portfolio of bandwidth than the more scarce Ka-band HTS capacity. That being said, Ka band will continue to grow in terms of coverage and capacity supply over the coming years, which should gradually reduce the fears of service providers with regards to reliability and back-up capacity,” says Prokosh. 16 | SatellitePro | June 2014
HTS and VSAT Some service providers may also have inoperability fears, as there is currently an extensive Ku-band VSAT user base and the equipment in place may not work with the Ka-band capacity. “However, Ku-band HTS systems such as Intelsat’s upcoming Epic constellation, will allow existing Ku-band VSAT clients with a migration path to HTS that minimises the degree to which infrastructure must be overhauled,” says Prokosh, adding that HTS should benefit the VSAT market. “HTS systems should help unlock market opportunities for VSAT, as these systems can meet increasing data requirements at a substantially lower cost than regular satellites. These lower bandwidth prices are surely a friend to the VSAT market, as it will help satellite solutions compete against the ever-expanding reach of terrestrial fibre networks, which are eroding VSAT penetration for oil and gas in certain markets, particularly North America and the North Sea,” he says. SkyStream’s Al Adely sees HTS and VSAT being complementary, noting that the way they greatly benefit end users is in providing the services that perfectly suit their needs. “HTS won’t have any negative impact on VSAT, in reality HTS is VSAT. In some instances, HTS will serve certain applications better than traditional VSAT, however, at other times, it will have limited abilities
when it comes to other applications. This is great news for customers, as they can choose which products and services best suit their precise requirements. “I believe HTS has enriched the industry with interesting products serving different applications. Such enrichment firmly positions us in certain verticals including oil and gas. HTS differs in architecture and sometimes in orbital positions, and this is why HTS can offer different products for various applications. These differences will help to serve vast applications and end users in the energy sector. No longer do we have one-size-fits-all shirts for the market. Now we have unique, tailor-made services for various sectors, and these offerings really best fit their requirements,” says Al Adely. Safa Telecom’s Ben Soussia adds that while new technological changes can put pressure on industry players, the need to adapt is simply part of the innovative evolution. “HTS is an evolution of VSAT. Will it hurt? Not really. It will just push the operators to adapt. It will have the same effect that VSAT had when it moved from C band to Ku band. Today, we can hardly find a new project with a C-band payload. It will be the same with Ku band in the future. In my opinion, HTS will create a new market. It will fill the gap between terrestrial networks and satellite, and end users will try to use the same applications in their office and in the oil field,” says Ben Soussia. PRO
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Long live the TV channel boom Having played an important role in MENA’s broadcast proliferation, Eutelsat’s Ali Korur traces the market’s 30-year evolution. Business can only get better, he says
The MENA TV channel boom has no end in sight and as the costs of broadcasting over satellite continue to shrink, the more opportunities are afforded to channels big and small. We can expect to see continued growth in this mushrooming business, say the experts. Having been part of the broadcasting progress achieved over the last 30 years, Ali Korur, Regional Vice-Director of Eutelsat’s Dubai office, sees competition in the Middle East as beneficial for both 18 | SatellitePro | June 2014
the broadcast industry as a whole and the consumers. While he sees TV channels continuing to expand their offerings and transition to HD, he also sees rife activity within the satellite industry, as it is the only means to feed the broadcast market’s insatiable demand for more capacity. Eutelsat’s interest in the Middle East and North Africa goes back right to the start, says Korur. While the company began in 1977 as a European organisation, it has always had its eye well focused on the
MENA region. Its first-generation satellites, launched between 1983 and 1988, included reach of the Middle East and North Africa. Since then, the company has grown considerably and so has its presence in this part of the world. This long-standing MENA focus means that Eutelsat has been part of the market, from before it blossomed to its present day boom, says Korur. “From the beginning, we have been interested in developing telecommunications and broadcasting in the Middle East and
A photo of the Eutelsat 8 West B satellite under construction. Photo:Thales Alenia Space
“To get to where we are, you have to be beyond reproach in terms of technology, innovation and experience” ALI KORUR, Regional Vice-Director of Eutelsat’s Dubai office
North Africa. We were one of the first satellite operators in the region, providing capacity to an emerging market that included broadcasters such as MBC, Dubai TV and Al Jazeera, to name but a few. In addition to enabling homes in the region to enhance channel viewing by satellite, we were a gateway into Europe for Arab channels seeking to reach expatriate audiences. “As the direct-to-home (DTH) market began to take off, we pioneered the use of higher power satellites from the 1990s to enable smaller dishes to be used for direct reception.” With DTH on the rise, set-top boxes (STB) began to emerge as companies started to group TV channels together. Korur notes a change in the STB market, saying that as DTH rose, so STB prices plunged, a trend that accelerated in the mid-1990s with the beginning of the transition to digital. “I remember that in the beginning of the 1990s, an STB was more than USD 1,000. Suddenly, with the DTH channels entering into the picture, STB prices dropped as companies brought TV channels together in digital multiplexes. Things progressed and by 2008, new companies in the region started launching digital platforms. We had started doing this in Europe in the mid-1990s, so were able to share our experience with players in the MENA region. Then channels such as Al Jazeera and OSN became digital platforms as well as producers of TV channels.” MENA TV channel boom In 2008, Eutelsat was providing satellite capacity to both the Arabian world hotspots at 26 degrees East and 7 degrees West. The operator then chose to build up resources at the 7 degrees West position, believing it had particular scope for expansion for the Arab consumer market. This was followed by a period of rapid growth, which Korur doesn’t see waning any time soon. “We deployed a Eutelsat satellite to 7 degrees West in partnership with NileSat and immediately, we increased the capacity from NileSat’s 24 transponders to 55 transponders. TV channels increased from around 200 to 500 in just a year. Then in 2011, we launched a higher capacity satellite to 7 degrees West. It brought additional resources, increasing transponders to 85. In
the last three years, we have seen the number of TV channels growing by 20% per year. During this same time, the number of TV homes receiving signals from the 7 degrees West neighbourhood has almost doubled from 27 million in 2010 to 51.5 million today, representing 94% of the satellite homes in the region – and this is an impressive number. “If this rapid growth in MENA TV channels will diminish anytime soon – they keep asking this question, it’s not a new one. The same question was asked when we transitioned from analogue to digital. In the analogue world, we were broadcasting 50 TV channels on two collocated satellites. Today, there are five satellites collocated at the 7/8 degrees West neighbourhood – two operated by NileSat and three by Eutelsat – which provide more than 80 transponders and broadcast more than 1,000 TV channels. So the number of satellites increased, the number of transponders increased and the number of TV channels increased. And we predict that this pattern will be the same in the future.” From being one of the first satellite operators in the region almost three decades ago, Eutelsat is certainly not lonely today. The Middle East market has become a highly competitive arena with major international players competing for their share of the business. On top of this, the region’s indigenous satellite operators have joined the space race, boasting successful operations and ambitious expansion plans. But while the growth in TV channels has been rapid in the last three years, success requires a lot of patience, says Korur, adding that competition will benefit everybody. “We are a highly committed company when it comes to building up our orbital positions. It’s not a case of just having the money to buy a satellite and then owning an orbital position. It takes years and years of investment and partnership with market-leading players such as NileSat, Noorsat, Gulfsat and ViewSat. And to get to where we are, you have to be beyond reproach in terms of technology, innovation and experience. You need the expertise to create a single orbital position with a number of satellites collocated to enable single-dish reception by consumers, who don’t want to install multiple dishes in their homes. “As more players become involved, it doesn’t necessarily pose a risk to existing June 2014 | SatellitePro | 19
operators, but rather presents opportunities to the industry if we collectively focus on being creative on the innovation front and delivering the highest quality of service. And this is, of course, good for consumers. For broadcasters, their expectation is to associate access to the largest possible audience with capacity to expand their number of channels. If you think of the analogue TV landscape in the past, there were only one or two channels in every country, but now they have hundreds of channels with different thematic focuses. Today, if we go further using the most advanced compression methods to bring the cost of broadcasting over satellite to a minimum, satellites will be accessible even for the local TV channels and minor community channels. “Broadcasting over satellite means that the content of local or regional TV channels can be viewed by audiences worldwide. For example, viewers in the United States can watch TV channels from Dubai and this is wonderful. If viewers are watching these channels through cable or IP connection, it is still more than likely that a satellite is distributing these signals. And with our future technologies, we, as a whole industry, will have more opportunities to expand the scope of satellites, including over-the-top and non-linear services.” Vaulting capacity demand Considering technological breakthroughs
“It’s not a case of just having the money to buy a satellite and then owning an orbital position. It takes years and years of investment and partnership” ALI KORUR, Regional Vice-Director of Eutelsat’s Dubai office
together with the growing consumer appetite for content, demand for capacity is high, but it’s poised to soon take off. As a fast-approaching trend, 4K requires very large capacity through satellite, less available through terrestrial, says Korur, adding that unlike 3D, 4K will enter TV homes. “We believe 4K will be a reality in the home. All the necessary conditions for a viable ecosystem are coming together and there are significant differences between 3D and 4K for home viewing, notably that 4K doesn’t impact the way viewers are watching TV, contrary to 3D which requires glasses. Its depth and quality
delivers a very immersive experience and outstanding viewing is what consumers want. This does, of course, mean even more capacity will soon be required.” For the last two years, Eutelsat has been looking at ways to increase capacity specifically for the MENA region, says Korur, who played an integral role in the upcoming capacity expansion for the region. “We have been able to steadily increase capacity in the 7/8 degrees West orbital arc and we will continue to do so. Next year, we will launch a bigger more powerful satellited called Eutelsat 8 West B that will bring an additional 25 transponders. This satellite will also pioneer advanced functions on key areas such as securing transmissions in the event of interference and optimising electrical power consumption to increase the number of transponders that can be operated simultenously. “Before going ahead with this new phase of investment, we analysed closely the long-term dynamics of the broadcasting market in the region. We were confident that additional capacity and access to over 51 million TV homes offered from our shared neighbourhood with NileSat would attract strong demand. This has proved to be the case. So we enter our fourth decade of collaboration with MENA players confident that we can continue to develop this vibrant market.” PRO The Eutelsat 7 A satellite being looked over. Photo: Airbus Defence and Space
Ali Korur, Regional Vice-Director of Eutelsat’s Dubai office
June 2014 | SatellitePro | 21
SatImaging
Carl Stephan, Head of Aerial Division at SIME, with a UAV to his left
22 | SatellitePro | June 2014
Sky is no limit for UAV market As the only provider of unmanned aerial vehicle (UAV) services in the Middle East, SIME is set for new heights. Carl Stephan, the company’s Aerial Division chief, talks about the business’ growth trajectory and how SIME’s technology has elevated the mapping industry It’s a bird, it’s a plane, it’s one of Space Imaging Middle East’s unmanned aerial vehicles (UAV). The only company in the region offering UAV services, Space Imaging Middle East (SIME) is a complete geospatial solutions provider. Over the last 15 years, Dubai-based SIME has been serving an extensive pool of end users and today, as customers are becoming more aware of new technologies, the company foresees a spike in demand for its solutions, particularly its UAV technology. Fuelling this demand are project management applications in real estate, says Carl Stephan, Head of Aerial Division at SIME. While this segment presents the greatest potential, demand is strong across all vertical markets, says Stephan, adding that the range of UAV applications is far-reaching. June 2014 | SatellitePro | 23
SatImaging
“We foresee continued growth in the UAV market, both in the development of regulations for the commercial tasking of UAV imagery and also for the application of this very high resolution data within various vertical markets. “Given that our primary region is the Middle East, we predict a rise in the use of UAV data for small-scale project monitoring, as countries such as the UAE, Qatar and Kuwait continue to expand. The demand across vertical industries is not limited, but the greatest potential at present will likely be project monitoring applications across the real estate market. Project monitoring is emerging as a new market. In this application, a global aerial photo, showing the work in progress, is requested on a regular basis, such as every month or even every 15 days, for example, allowing project developers to keep a close track of progress made in their relevant project area,” says Stephan. The need for very accurate imagery data is on the rise. Providing this level of accuracy, SIME also reduces the associated costs compared to other modes of imaging, says Stephan. “Clients are becoming more and more aware of the importance of new technologies, uses and applications, and how these new technologies can help them in their decision-making processes and management. Therefore, the demand is growing along with the users’ understanding of the significance of an accurate base map. “SIME provides a surveying and mapping solution using UAV technology that, without a doubt, has changed the mapping industry. The gap between traditional ground survey and conventional photogrammetry survey has finally been filled. Through this unique UAV technology, we are able to achieve highly accurate mapping, even in less than favorable weather conditions, such as wind, light rain and cloud cover, where conventional photogrammetry simply won’t suffice. “UAV can remotely and safely survey large, difficult to reach or dangerous areas, whereas through conventional aerial survey, this would be extremely costly due to factors such as aircraft mobilisation, fuel, pilot, crew, camera, equipment and 24 | SatellitePro | June 2014
permit expenses,” explains Stephan. SIME’s UAV solution consists of two main phases namely, image acquisition and image processing. The image acquisition is conducted using a light unmanned aircraft with an onboard high resolution calibrated camera, autopilot, GPS and inertial measurement unit. These capture images of 3cm to 40cm resolution, depending on client requirements. “The strength of the system lies in the fact that flight is conducted in a fully automated manner, from take-off to landing. The UAV can scan several square kilometres on a single battery charge, depending on the resolution,” says Stephan. “We integrate all the elements of the geospatial solutions chain, offering our clients unparalleled access to the latest technology available in the satellite and aerial imagery industry. This includes our in-house geographic information system (GIS) design and development options as well as consultation and training services. This puts us in a unique position to offer complete turnkey solutions, developed to cater specifically to the challenges and requirements of the region.” UAV technology receives very wide applications, from a simple photo of a residence showing its garden landscape, to the mapping output used as a base map for a study of any kind, explains Stephan. UAV applications include mapping and cartography, natural resources management, landscaping, land use classification, urban and rural planning, disaster monitoring, project monitoring, forestry, archeology, mining, agriculture, power lines and roads, topographic mapping, and elevation models and contours. “In mapping, medium to large areas (up to 50 sq km) are too big to be surveyed by topographic methods and too small to be surveyed by an aircraft, knowing the huge costs of aircraft and team mobilisation. The UAV offers the same outputs as for a regular aerial survey conducted with an aircraft with a very cost-effective solution,” says Stephan. “The UAV is also a very efficient tool for disaster monitoring, as it could be deployed very quickly on a disaster site and assist in its management, providing accurate and current data that enables authorities
WorldView-2 satellite image over the Palm Jumeirah. Imagery provided by Space Imaging Middle East ©DigitalGlobe
“The demand across vertical industries is not limited, but the greatest potential at present will likely be project monitoring applications across the real estate market” CARL STEPHAN, Aerial Division chief at SIME
to make well informed decisions.” Having such a wide range of applications means a generous pool of end users, explains Stephan, saying that SIME is increasingly receiving interest from a host of companies, but the most interesting project was in Iraq. “Without a doubt, the business is a very rapidly growing market, and we are dealing more and more with queries from interested parties, regularly undertaking multiple new projects. This is especially evident now that we have a proven track record of our UAV capabilities, and are consequently finding that our existing and potential clients are growing ever more confident about the accuracy and results achieved with the UAV technology. “One of the most interesting projects we have carried out was in March 2014 for an aerial survey of 12 different towns and villages in Erbil, Iraq. The total area was
around 320 sq km and since these areas were spread in the Kurdistan district, an aerial survey using an aircraft would have been much more expensive to conduct. “The region is developing rapidly and Kurdistan’s Ministry of Municipalities needed data collected for infrastructure development, urban design, planification and road networks. The digital base maps covering these communities were needed, including a digital terrain model (DTM), ortho-photo mosaic and feature extraction,” says Stephan, adding that this interesting project came with challenges. “The total area covered was most probably one of the largest, if not the largest area covered using a UAV for mapping purposes. It was a real challenge to deal with a vast volume of images, to mobilise every day in a new area, collecting the needed ground control points and, of
course, dealing with weather conditions, especially winds in the mountainous areas. “We deployed one team operating a SenseFly drone with a 16MP HD camera. This is a very experienced team that succeeded in finalising the data capture in a very short three-week period. In parallel, our production team was processing the images on a daily basis, checking the image quality, overlap, resolution and coverage. “The delivered output included a DTM with 1m contour lines, 20cm ortho-photo mosaic and a 3D model. Additionally, a 5cm survey was made for an archeological site of 9 sq km, where a very high level of detail was needed for heritage studies.” Weather conditions will always play a major role in determining the depth of a project’s challenge, says Stephan, adding that permits to operate UAVs in particular areas are another task. “Apart from getting the required permits, the only technical challenge we’ve faced until now is weather conditions. In particular, we have had issues with wind, since the UAV has a wind speed limit unlike regular aircraft. Flying in windy conditions could cause the UAV to crash. However, to overcome this hurdle, we continuously monitor the weather conditions and adjust our project plans accordingly,” explains Stephan. Permits and weather, SIME’s list of challenges is providentially not extensive and fortunate circumstances continue. The company, explains Stephan, is not only well positioned to receive the region’s swelling demand for its range of geospatial services, but could easily tap business in other geographical markets, too. “SIME offers expertise in satellite and aerial imagery acquisition, UAV surveys, remote sensing, image processing and mapping, GIS database design and customised GIS application development. We are passionate about the power of geospatial intelligence and have been working in partnership with our regional clients for over 15 years to make geospatial data more widely accessible. While we are based in Dubai, we are not necessarily limited to the Middle East region. Since the UAV is very easily deployable – from a simple suitcase in fact – we can easily mobilise it in other countries in no time, where our services are required. PRO June 2014 | SatellitePro | 25
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SatRisk Management
Striving for reliability Countering omnipresent risk is a never-ending challenge, but good leadership and strong innovation will ensure the space industry prevails. Market experts attending the World Space Risk Forum 2014 in Dubai tell Adrienne Harebottle that the business will continue to prove its steadfastness even in an era of change
June 2014 | SatellitePro | 27
SatRisk Management
Brian Kosinski, VicePresident of Product Assurance and Reliability at SSL, speaking during a plenary session at the World Space Risk Forum 2014 in Dubai
“This industry won’t survive if we don’t push the envelope of technology and innovate. But we have to do this in a controlled manner and make sure that the systems and technology are qualified before you move into production” BRIAN KOSINSKI, Vice-President of Product Assurance and Reliability at SSL
Space is a hostile environment that adds greater risk to an industry punctuated by complex technologies and mounting challenges. Copious amounts of effort have been spent to overcome many of the space industry’s obstacles, but while significant advances in performance and reliability have been achieved, space programmes remain relatively high risk. Challenges seemingly rise in tandem with technological capabilities. While access to space in the past was restrained largely by cost and risk, the rise in the level of space activities today has led to there now being new matters of increasing concern, such as space debris and satellite interference. Despite these difficulties being part of the space industry’s reality, 28 | SatellitePro | June 2014
the end users of satellite services are grounded in a very different landscape, one where constant connectivity and access to data is paramount, and service disruption is an inconceivable fate. In such a landscape, reliability is crucial. But reliability can be affected by the changes taking place in the industry, explains Anne Aufrere, Head of Financing and Insurance Department at Arianespace. “The space industry is in an era of change, and change is not only necessary, it’s vital. But reliability is also vital in our industry and it can be quite fragile as certain changes take place,” says Aufrere. While necessary, explains Aufrere, change can create some instability and cause threats to the industry. Therefore,
it’s important to track what is changing. On the financial side, satellite operators are still performing very well, they’re posting strong financial results and hold a positive outlook, she says. “However, we are seeing some pressure to ease the prices in many markets, and not only in emerging markets. This downward pressure on pricing can affect the customers’ business plans and lead to satellite operators carefully reviewing their capital spending and developing new technological solutions to drive prices down,” adds Aufrere. Changes in technology have been significant and satellites have certainly changed, says Brian Kosinski, Vice-President of Product Assurance and Reliability at Space
Systems/Loral. While nobody can deny this period of significant change, SSL’s definition of reliability has not faltered, he says. “The sizes of satellites have changed, complexity has radically changed, power has increased as well as their mass and the amount of technology carried on them. But by definition, reliability has not changed. When I get up in the morning and when I go to sleep at night, my entire focus for myself and the organisation is to have 100% mission success. “You might ask if this is possible. In an insurance world, we know it’s not – the impossibility, after all, is why satellites are insured. But this is what we need to try achieve. It should be your vision and passion rolled into one, so that with
every heartbeat every day, you’re focused on ensuring that the satellite is the best you’ve ever built,” says Kosinski. How do you get a company to relentlessly strive for 100% success when all its employees know it’s not possible? By keeping your employees happy and motivated, says Kosinski, adding that sustainable success and reliability can’t be attained without this. While various levels of testing and qualification are fundamental, week employee morale can throw a spanner in the works, which puts costs and reliability at risk. “It’s up to the leaders of the company to set an environment so the people know that what they’re doing is important. It’s up to these leaders to set an environment so that every day, when people come to work, they have the right materials and the right processes in place to work effectively,” says Kosinski. Outlining some of the important keys to success, Kosinski notes that one of the rules, in a nutshell, is pay attention to detail because everything in this business matters. “Another rule is that the early and robust qualification of systems and hardware is absolutely essential. This industry won’t survive if we don’t push the envelope of technology and innovate. But we have to do this in a controlled manner and we have to make sure that the systems and technology are qualified before you move into production. “When it comes to increasing complexity, firstly, your design systems have to be robust. Secondly, your test programmes have to keep getting better. Like with a new car, or refrigerator for that matter, if a system is going to fail, it will generally happen in the first couple months of operation. One of the ways you can ensure that it won’t fail in the first couple months of operation is to have a robust test programme. It’s also an indication of the health of the system. “There is cost and schedule pressure today. So it’s very important to be investing capital in new processes. We have to continue to evolve to become more efficient – it’s a fact of life for any industry. But in this industry, it’s always important to qualify not only equipment, but also new processes before you put them in line.
“You must pay significant attention to the premier plan. The schedule of a programme is, generally, made or not made in the first couple months of the programme. It’s staggering to me when people ask me if we can reduce the number of the cycles in a test phase, from eight to six, for example, as it will save a half a day of testing. This is not why the schedule is made. It’s made for the planning, managing the white phases and the handoffs. With these white phases and the handoffs between operations, really looking here is where you can save cost of schedule. “Finally, another rule to success that everyone at SSL knows is that safety of people is more important than cost of schedule. That might sound like a motherhood statement, but it’s true. Because where do our costs come from? Where do our schedule problems come from? They come from when mistakes are made. So focus on making it right the first time, you’ll move through the factory more smoothly. “People don’t wake up in the morning asking themselves: ‘how can I make a mistake today?’ But, if they go to work without feeling important, if they don’t feel valued or appreciated, then that’s when mistakes are made. It is these core keys that help make the company stronger; if we do these things, it will result in the best value not only to the company, but to our shareholders and customers as well.”
“Each satellite operator has its own risk appetite and follows different approaches to calculating risk. But the common conclusion for all is that reliability takes years to build, seconds to break and years to repair” ANNE AUFRERE, Head of Financing and Insurance Department at Arianespace
June 2014 | SatellitePro | 29
SatRisk Management
The perception of reliability Reliability, however, has more than one side, says Aufrere. “There are two sides: there are the facts and figures of reliability and then there is the customer perception of reliability. Therefore, the notion of reliability can be quite subjective,” she says. “Each satellite operator has its own risk appetite and follows different approaches to calculating risk. But the common conclusion for all is that reliability takes years to build, seconds to break and years to repair. “How is reliability being built and improved over the years? It has achieved its level today thanks to maturity of design. It also has a lot to do with experience and feedback, and dealing with failures, anomalies and many configurations.”
“People don’t wake up in the morning asking themselves: ‘how can I make a mistake today?’ But if they go to work without feeling important, without feeling valued or appreciated, then that’s when mistakes are made” BRIAN KOSINSKI, Vice-President of Product Assurance and Reliability at SSL
Considering examples of success, explains Aufrere, you can trace the advancement back to quality initiatives and new quality programmes. While quality investment has a cost, she says, it is one of the key players behind reliability in the industry. While there will always be risk, the space industry together with the community of insurers continue to make great strides, countering and overcoming their associated challenges. The people helping to insure the satellites are as important as the satellites themselves, says SSL’s Kosinski. “Satellites would not work and this industry would not work if there was not a community out there insuring these satellites,” he concludes. PRO
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SatVertical: Government
32 | SatellitePro | June 2014
Enabling government’s future Mobile satellite services (MSS) are enabling government end users to overcome their communications challenges. By adapting product offerings and embracing the Bring Your Own Device trend, the MSS industry is redefining the deployment of government communications for today and the future With the global economy still in a slow recovery mode, government budgets will remain constrained. At the same time, governments have to ensure that their ICT infrastructure deployed for national interests is properly secured. The government sector also needs to leverage the rise of the Internet of Things, says Robert Demers, Vice-President for Government Services at Thuraya. “This shift towards an interconnected network of devices, which will enable users to ‘control’ devices from other devices, will further drive up security requirements for government users. For government organisations, the ability to stay connected is mission-critical. Mobile satellite service (MSS) operators, therefore, need to develop practical, cost-effective and secure solutions to help governments work around constraints and respond to emerging challenges — solutions that are compatible with dynamic markets and architectures,” he says. Increasingly, the MSS industry has an important role to play in enabling government users to address demands for Bring Your Own Device (BYOD). “[This is done] by empowering end users to use their own smartphones, apps and address book for work-related purposes over a satellite network. With this type of technology, end users are able to employ a familiar communications
device in a new and efficient manner, enabling them to focus on their work tasks and increasing their effectiveness in conducting their primary mission.” BYOD appears to be here to stay, adds Demers, saying that it is important for MSS operators to ensure that their service offerings are compatible with government users’ requirements, architectures and BYOD policies. “Then they need to innovate around devices that users depend on and are familiar with in their daily lives. For government users, the key here is that the devices being used are interoperable with other devices and end-user architectures without them having to change their concept of operations. “There is great potential for MSS operators to play a more proactive role in customising new, value-added solutions for government use, as well as enable BYOD devices for multi-modal use: native networks, satellite and mixed use.” Thuraya is focused on collaborating with government customers, developers and distribution channels, says Demers, as this will give the company a deeper understanding of evolving user requirements. “Government users require assured, secure and reliable mobile satellite communications to connect to their headquarters and communicate safely within closed user groups. As such, MSS operators need to June 2014 | SatellitePro | 33
SatVertical: Government
Robert Demers, Vice-President for Government Services at Thuraya
employ a high level of communications security across their networks to ensure that the security characteristics of its satellite systems and products are compatible with the operational security requirements of the government sector.” An example of this collaboration with a government end user is in the development of Starlight, an MSS platform that provides advanced capabilities with added security features to meet the expanding requirements of the US Department of Defense, notes Demers. “Thuraya is also capable of reconfiguring our network to allow government users to access our services in a manner that significantly reduce the risks of tracing and hacking. The importance of having qualified and disciplined personnel should not be overlooked, too. At Thuraya, we have a highly experienced team of engineers who have the necessary expertise to support government users in addressing security issues.” According to Demers, national governments need to consider collaborating more extensively with the MSS industry to address the increased demand for seamless integration between terrestrial and satellite communications. “Instead of building their own satellite networks from scratch, government users can explore the option of working with commercial satellite operators to design, 34 | SatellitePro | June 2014
build and launch specialised solutions in a more efficient and cost-effective manner — or at least provide the commercial sector with access to government-level discussions. “When this happens, there is potential for satellite operators to develop scalable capacity offerings to support current needs, as well as facilitate future intelligence, surveillance and reconnaissance (ISR) and mobile applications. Another benefit is that there is a greater ability to achieve some degree of long-term cost stability. Finally, as engagements evolve,
“MSS operators need to employ a high level of communications security across their networks to ensure that the security characteristics of its satellite systems and products are compatible with the operational security requirements of the government sector.” ROBERT DEMERS, Vice-President for Government Services at Thuraya
interoperability among joint, coalition and government partners will be critical.” To keep pace and stay ahead of new developments, says Demers, the MSS industry is developing tailored government communication solutions that are adaptable to changing environments and interoperable across disparate network infrastructures. “Thuraya is currently exploring ways to enable flexible network arrangements, such as self-forming networks/nodes, so that end users can quickly and easily set up network coverage in the wake of a disaster or other types of coalition operations. This is an efficient hybrid wireless solution for communications within pre-defined user groups integrating different technologies.” Another trend is the MSS industry supporting the government sector in building new devices to meet emerging communication needs, adds Demers. “The recently launched VIPturbo Module, with its software-defined radio technology, is a product that will potentially disrupt the industry and help governments develop some degree of cost stability. With this, we’re able to significantly reduce development timelines and lower costs for new terminals. We’re confident that new technology capabilities and products such as the VIPturbo Module will transform how government communications are being developed and used today and for the foreseeable future.” PRO
SatEvents
Bigger and better CommunicAsia2014 has added more appeal to this year’s agenda. SatComm2014 boasts two new industry-dedicated tracks while the line-up of market-relevant discussions and panels will make this year’s conference a not-to-be-missed symposium
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CommunicAsia has grown to become a primary event recognised by industry professionals around the world. Addressing the entire information and communications technology (ICT) ecosystem, the annual event provides industry representatives with leading business intelligence through compelling conference sessions. Additionally, attendees are brought up to date by the latest in cutting-edge technology on display at the exhibition.
Running from June 17 to 20 at the Marina Bay Sands in Singapore, CommunicAsia2014 will address industry pulses including telecom energy and power systems, 4G/ LTE, mobile broadband, radio frequency and cables, and mobile apps. As satellite is the touch point for connectivity in various industries, the event is running SatComm2014, bringing together market players for debate, networking and knowledge-sharing.
SatComm2014 CommunicAsia worked closely with more than 50 key satellite stakeholders and end users to design the SatComm2014 programme. Key topics include: • How is the intensifying competition from satellite operators and terrestrial networks affecting customers and competitors – what can be done? • Is HTS another example of evolution in the satellite industry, or a
game-changing revolution? • What are the key success factors for mobile backhaul for moving to 3G-4G/HTS? • How are VSAT service providers creating services to meet today’s communication needs and support changing future requirements? • Advancing aeronautical: The rise of inflight connectivity
Mobile data traffic to reach the sky The trend for fast and reliable on-the-go connected services is ubiquitous. It is seen not only in developed regions but also in emerging and rural parts of the world. Asia is no exception, the region’s demand for this rising trend is relentless and, according to market analysts, it will see a steep increase in consumption of data and entertainment on mobile devices. Mobile data traffic in Asia Pacific is expected to exceed the rest of the world by 2017, based on research by Analysys Mason. As a result of this prevalent trend, the need for high-capacity broadband and fibre broadband networks is everincreasing. The management of network infrastructure and innovative business models are an example of some of the focal issues that carriers, service providers and content providers need to consider, say the experts. Furthermore, they add, enterprises can no longer afford to ignore this major technological shift
– the convergence of big data, mobile, social media and cloud computing. In order to unearth the issues linked to this widespread hunger for mobile data, industry players are putting their heads together at the CommunicAsia2014 Summit. On the first and third day of the conference, global market experts will share their knowledge on the broadband space. The dedicated track will first delve into the demand for broadband in Asia, followed by viable business models for fibre broadband. Reinforcing the broadband focus, CommunicAsia2014 will showcase products, solutions and technologies tied to mobility and connectivity. The exhibition will present turnkey solutions that contribute to the development of broadband network infrastructure, including fixed, satellite and wireless broadband. These solutions will be presented by companies who are experts in their fields. June 2014 | SatellitePro | 37
SatEvents
Where is broadband demand? Day 1: CommunicAsia’s broadband-centric track encompasses in-depth discussions on regulatory and financing issues in Asia. The track will kick off with an opening keynote by Ross Patterson, Chairman of Akhet Consulting and former NZ Telecommunications Commissioner. Titled “Investing in Next Generation Broadband Infrastructure and Policies”, the keynote will take place at 11am (Singapore time) on June 17. One the same day, William Barney, CEO of Global Cloud Xchange, will deliver a separate keynote address, outlining the key trends related to broadband in Asia and cover its impact on investment and financing. The keynote, titled “Identifying the Market Demand Trends for Broadband in Asia and the Implications for Investment and Financing”, will be delivered at 12:10 (Singapore time). Day 3: While demand for satellite is healthy, the Asia Pacific region is seeing subscriber growth in fibre broadband adoption. Operators are expanding their fibre broadband coverage to meet this surge, which has been augmented by the rise of online gaming and internet video streaming. Industry specialists from AlcatelLucent, Predictable Network Solutions, Cambridge Broadband Networks Limited, SpiderCloud Wireless and BT Advise for Communications will discuss the opportunities and challenges of different, combined networks and how the capacity, end-user experience and the backhaul business can be enhanced. This discussion will take place on June 19 at 11:40am (Singapore time).
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High-speed data usage to redefine LTE strategies The world today is widely connected and the need for consistent, high-speed connectivity has never been more imperative. According to market research, the volume of nextgeneration LTE users will surpass 120 million by 2015. The principle markets driving this growth are China, Japan, Indonesia and South Korea. Other parts of Asia Pacific such as Indonesia and Singapore are in different stages of LTE network deployments, but are expected to attain significant headway over the next few years. While rapid growth represents opportunities, it also brings various challenges. The market can expect speed bumps in the LTE roadmap, says Juan Jose Rio, Partner at Delta Partners, an advisory firm specialised in telecoms, media and technology in emerging markets. Government and regulatory bodies need to deploy key strategies, says Rio, adding that if industry players are looking to capitalise on commercial opportunities, they need to tackle the development and allocation of spectrum. Governments will need to strike a balance between appearing forwardthinking through issuing LTE licences and not issuing spectrum prematurely when operators are not ready, explains Rio. This will be a challenge as these are the same countries that need LTE as a fixed network substitute, but at the same time are likely to still require 700MHz spectrum for analogue TV, 1800MHz spectrum for 2G voice and 2.6GHz spectrum for satellite
usage, all key LTE spectrum bands, he adds. According to Delta Partners, in these developing countries, LTE deployment will likely be more gradual while allowing for the influx of affordable devices. LTE will be deployed on a selective basis, that being urban areas, but new 2G/3G deployments are also done with a certain level of future-proofing so that LTE can be rolled out easily when required. Many governments are also looking to LTE to fulfil national broadband priorities, says Rio. However, LTE has its limitations. It tends to be a competent replacement for entry-level DSL, but challenges around spectrum availability, in-building penetration and the ability to support a multi-dweller household make it difficult to be a high-speed DSL/HFC/FTTX substitute. Telcos in developing countries may find a much tougher economic case for LTE, explains Rio. With much lower average revenues per user (ARPU) versus those in developed countries, they will find it challenging to charge proportionately more for higher speed offerings. Similarly, low ARPU customers will need to get access to a range of affordable LTE devices, much in the same way we now have access to affordable 3G devices at USD 30-40 per piece. Addressing these challenges and offering tips for successful monetisation and customer satisfaction, Rio will be speaking at the CommunicAsia2014 Summit during a session titled “The Future of LTE and Spectrum Allocations in Asia”. PRO
Session details Titled “The Future of LTE and Spectrum Allocations in Asia – LTE Investment Analysis and Consideration”, the session will take place on June 18, the second day of the summit. Additional key topics and speakers include the opening keynote – “The Future Development of Spectrum for Telecommunications in Asia” – by Alan Hadden, President of GSA, and a keynote case study titled “Current Situation and Prospects of 4G TD-LTE”, which will be jointly presented by Kriv Naicker, General Manager of Strategy and Business Consulting at Huawei Technologies, and Dave Havercroft, Telecom COO at Telecom New Zealand.
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SatGuest
Cellular backhaul set to ring As demand for mobile data surges, network operators face the burden of hefty infrastructure upgrades. But satellite capacity cuts out costly implementations, explains Intelsat’s Jean-Philippe Gillet The whole world is demanding mobile data but emerging markets, in particular, are witnessing a dramatic rise in ownership of internet-enabled mobile devices. In the Middle East and Africa (MEA), growth in mobile data consumption is rapid and according to recent research, this hearty appetite is set to continue. According to a Cisco report, the MEA region can expect a climb in mobile data traffic at a compound annual growth rate of 77% from 2012 to 2017. While 3G networks are still being deployed in some countries, operators are already preparing for the roll-out of 4G networks to help meet the growing end-user demand for more bandwidth, higher security and faster connectivity on the move, says JeanPhilippe Gillet, Intelsat’s Vice-President of Europe, the Middle East and Africa. “With analysts expecting 86.6 million 4G connections in 2018 in the Middle East, compared to 3.7 million in 2013, mobile operators need to upgrade their network capabilities. While demand for mobile connectivity keeps increasing, populations in remote regions remain unable to take advantage because they are not covered by existing network infrastructures. The need to extend these networks is leading to more demand for backhaul, as satellite capacity allows operators to satisfy this demand without costly fibre or microwave implementations. “Demand for more advanced mobile services is coming from enterprise users, governments and consumer broadband providers. This surge in the volume of data and video content creates congestion on current network infrastructure. Using satellite infrastructure provides the quickest means to upgrade mobile networks from 2G to 3G and even 4G, and while we are in the early stages of realising the benefit of satellite capacity in wireless infrastructure, platforms like Intelsat EpicNG will be able to reduce congestion 40 | SatellitePro | June 2014
“In order to satisfy subscriber demand, wireless operators need a platform on which they can create differentiation and add unique value” JEAN-PHILIPPE GILLET, Intelsat’s VP of Europe, the Middle East and Africa
through such means as allocating bandwidth dynamically and allowing load sharing of links during times of high traffic loads. “In order to satisfy subscriber demand, wireless operators need a platform on which they can create differentiation and add unique value. Hybrid networks consisting of terrestrial and satellite links are ideally positioned to meet network operators’ challenges. Complementing each other, they provide mobile operators the most robust network possible and are economically superior when compared to pure terrestrial backhaul when a network requires multiple hops.” The benefit of cellular backhaul via satellite is network expansion, says Gillet, explaining that the ubiquitous reach of satellite capacity can accelerate network deployment into remote and low-density regions with quick return on investment. By reducing the capital expenditures required to expand via terrestrial infrastructure, mobile network operators can focus on high-growth areas with new service propositions, including mobile broadband into remote regions, he adds. “There is also reliability. Satellite technology, supported by field-proven ground equipment, provides mobile operators with a reliable means to address end-user communications needs. Hybrid networks consisting of fibre, microwave and satellite links ensure carrier-grade reliability and provide mobile operators the most robust network possible. Leveraging weatherresistant C and Ku band also ensures operators can provide the highest levels of availability with minimal operational complexity. “Additional benefits are simplicity and flexibility of architecture. Whether it is increasing throughput or sharing network bandwidth dynamically to adapt to changes in traffic patterns and demands, satellite-based services offer unprecedented operational flexibility for mobile network operators.” PRO
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