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Contents Click on the title to go directly to the story

FEATURES The State of the Art of the Satellite Industry by Virgil Labrador ...... 15 The Satellite Broadband Promise by Dan Freyer ...... 19

SES Americom: “We’ll Jump-start A2H this Year”by Chris Forrester ...... 23

Are You Protected? by John M. Puetz...... 26

European Pay-TV: “The Rise and Rise of DTH” by Chris Forrester ...... 28

VIEWPOINT Post-War Opportunities in the Satellite Industry by Bruce Elbert ...... 31 What happens when the war in Iraq iis over and life returns to normal? I am an optimist and can foresee how satellite communications will provide the key to rebuilding Iraq and Afghanistan.

COMPANY SPOTLIGHT REGULAR DEPARTMENTS SES Global--Preparing for 2010 Calendar of Events 5

by Chris Forrester...... 33 Industry News 6 SES is involved in three new initiatives, Executive Moves 10 each designed to Product and considerably boost Service Reviews 12 income over the long Featured Event: ISCe 37 term. Vital Statistics-TV Titans 42

Advertisers’ Index 42

Country Profile: Nigeria 43

2 satmagazine.com

letter from the

Publisher Published monthly by Satnews Publishers 800 Siesta Way, Sonoma, CA 95476 USA Phone (707) 939-9306, Fax (707) 939-9235 E-mail: [email protected] Website: www.satmagazine.com Introducing SATMAGAZINE EDITORIAL

A new Way to Get Timely and Silvano Payne Relevant Information Publisher Virgil Labrador I started SatNews in 1984 when the commercial Managing Editor satellite industry was still almost in its infancy. Our and Editor, The Americas mission then as it is now—is to provide the industry Chris Forrester with timely, relevant and accurate information. Editor, Europe, Middle East Starting with the International Satellite Directory, and Africa now on its 18th year of publication, and our highly successful SatNews.com portal we have striven to Contributing Writers: keep up with business and technology sides of this John Puetz constantly evolving industry. Bruce Elbert Dan Freyer As we are now experiencing the worst downturn The Americas in the industry in recent memory, I think it is appropriate that we launch a new magazine. The Peter Marshall need for relevant and accurate information is most Roger Stanyard acute during periods of difficulty. Information has a Europe way of lifting the fog of ambiguity that can stifle the Baden Woodford growth of the industry as a whole. Africa

Also, appropriately, being the first all-electronic Peter I. Galace publication in the satellite industry we are able to Art and Production Editor slash the costs of printing and postage that become a drag on the finances of our corporate sponsors. Advertising Sales: We can therefore concentrate our efforts on Jill Durfee bringing you topical and relevant in-depth articles. Satnews Publishers is the leading provider of information on We therefore are proud to present to you, the worldwide satellite industry. Fore more information, go to SATMAGAZINE.COM — with a mix of features, www.satnews.com. news, opinion and data that you can use—written by people in the satellite industry, for the industry. By subscribing to the SATMAGAZINE.COM, you’ll get the magazine delivered directly to you each time its published. This way, you’ll never miss a beat. We can help you keep your competitive edge in today's dynamic environment. © Copyright 2003 3 satmagazine.com Message fromArthur C. Clarke

Columbo, Sri Lanka

28th March, 2003 Dear Silvano Payne,

I receive a new media project almost every day: it’s nice to be wanted, except by INTERPOL… However, now that I have reluctantly accepted my limitations of time and energy, most enquirers receive my ‘Kindly Drop Dead’ reply form. However, I’d like to send my best wishes to you for your forthcoming magazine – SatMagazine.Com

Yours sincerely

Sir Arthur C. Clarke

4 satmagazine.com calendar of events

Kristie Morris Las Vegas, Nev., (800) 342-2460 or (202) 429-4194 April 5-10 NAB2003 USA E-mail: [email protected] www.nab.org/conventions/nab2002/ Tel: 410-531-6034 or toll free 1- 888-501-2100; Huntsville, Launch Vehicle Systems -- April 8-10 Fax 410-531-1013 E-mail: Alabama Reusables [email protected] Web: www.aticourses.com Julian Clover Tel: +44 20 7585 3849/+44 1371 Prague, Czech EBC 2003: Broadband in an 810433 April 9-11 Republic Enlarged eEurope Email: [email protected] Web: www.ebc2003.com Dana Marcus Tel: (310) 563-1223 / Fax: (310) 563-1220 April 10-11 Orlando, FL LINK 16 Seminar E-mail: [email protected] Website: www.TechnologyTraining.com Tel: 410-531-6034 or toll free 1- 888-501-2100; Cape Canaveral, Launch Vehicle Systems -- April 10-12 Fax 410-531-1013 E-mail: FL U.S.A. Reusables , [email protected] Web: www.aticourses.com Shana Axemaker 17th Annual International Tel: (360) 6763290 Fax: (360) Orlando, Florida Symposium on April 21-25 6471445 USA Aerospace/Defense Sensing, E-mail: [email protected] Simulation, and Controls Website: www.spie.org Dana Marcus Tel: (310) 563-1223 / Fax: (310) MGM Grand Hotel Military Data Links 563-1220 April 28-29 & Casino, Las Conference E-mail: [email protected] Vegas, NV, U.S.A. Website: www.TechnologyTraining.com Tel: 410-531-6034 or toll free 1- 888-501-2100; San Jose, CA, Satellite Communication - An April 28-29 Fax 410-531-1013 E-mail: U.S.A. Essential Intro [email protected] Web: www.aticourses.com Tel: 410-531-6034 or toll free 1- 888-501-2100; Washington DC/ April 28-30 Solid Rocket Design Fax 410-531-1013 E-mail: MD, U.S.A. [email protected] Web: www.aticourses.com

5 satmagazine.com industry news

EchoStar to Launch in Enterprises has been May; New Satellite to awarded “Teleport Test First Ever Ka-Band Technology of the Year” for its Hot-Air De-Icing Systems. Commercial Service WTA presented the Littleton, Colo./March 11, awards at an invitational 2003/— EchoStar ceremony and luncheon last Communications Corp. has week. announced that its EchoStar IX satellite is scheduled to launch in For the second May 2003. The satellite will EchoStar IX satellite will launch consecutive year, the launch from a floating platform from a floating platform aboard a Association awarded its at the equator aboard a Sea Sea Launch rocket. Teleport Developer of the Launch rocket. Year honor to a facility television channels, including based in the American state of The EchoStar IX satellite is interactive TV services, sports Hawaii. equipped with one of the first programming, high definition commercial Ka-band spot-beam television and international Hawaii Pacific Teleport payloads for use over the United programming. (HPT) connects global businesses States and will be critical to the through a network of satellites development of future An additional C-band and fiber optic cables reaching generations of Ka-band services. payload on the EchoStar IX from North America as far west EchoStar’s Ka-band portion of the satellite will be owned and as the Indian subcontinent. satellite will be used to test, operated by Loral Skynet, a Unlike American mainland verify and deliver future wholly owned subsidiary of Loral teleports, HPT can ‘see’ all the broadband initiatives for the Space and Communications, as Asia-Pacific orbital slots between company. The satellite payload Telstar 13. 128E and 165E. There are also includes 32 Ku-Band fixed currently five Asian satellites satellite services (FSS) with spot beams on Hawaii. HPT transponders, at approximately Hawaii Pacific Teleport, is the only FCC-licensed teleport 120 watts, that will enhance Hot-Air De-Icing Sys- with antennas pointed at three of the five. This coverage enables EchoStar’s current U.S. DISH tems from W.B. Walton Network satellite TV service, HPT to serve customers located including additional service for Enterprises Win Awards as far west as Pakistan and in all Alaska and Hawaii. The satellite from World Teleport countries eastward to Hawaii will operate at the 121 degree Association plus customers in Australia, New West Longitude orbital location. Zealand and many Pacific March 5, 2003/— World Islands. With the successful launch of Teleport Association has EchoStar IX, constructed by announced that Hawaii Pacific WTA cited W.B. Walton Space Systems/Loral based in Teleport is this year’s recipient of Enterprises for helping teleports Palo Alto, Calif., EchoStar “Teleport Developer of the Year” and satellite earth station continues to invest in new award while W. B. Walton operators de-ice their dishes satellite technologies to expand during the past 21 year. services for its 8.18 million While it is defined by customers nationwide. EchoStar IX will join EchoStar’s current fleet of eight satellites that Teleport Technology of provide DISH Network customers the Year: W.B. Walton with hundreds of all-digital Enterprises’ Hot-Air De-Icing Systems 6 satmagazine.com industry news some as a “low-tech” business, notes will mature on March 15, the WTA cited the company’s 2013 and are callable on or after continuous focus on its core March 15, 2008. business and its commitment to quality and innovation as another The notes are guaranteed by example of how a company can all of DirecTV’s domestic be successful over the long term subsidiaries. After consideration in the satellite communications of the undrawn revolving credit industry. W.B. Walton, facility and payment of headquartered in Riverside, transaction fees, approximately California refers to itself as “The $2.75 billion of the proceeds Original Hot-Air De-Icing from the financing will be paid Company” and has over 4,000 to Hughes in a distribution that systems installed throughout the will be used to repay $506 world. million of outstanding short-term debt, fund Hughes’ business plan AMC-9 undergoes final tests through projected cash flow before it is shipped to the breakeven and for Hughes’ other Baikonur Cosmodrome in Hughes and DirecTV corporate purposes. Kazakhstan. (SES Americom Complete $3.1 Billion photo) Financing Transactions up this month for an additional Proton/Breeze M launch. El Segundo, Calif./March 6, ILS Sets Launch Date For 2003/ — Hughes Electronics Corp. AMC-9 Satellite on Pro- AMC-9 is a Spacebus 3000B3 has completed the previously ton model with 48 transponders. It announced DirecTV Holdings LLC will enable SES Americom, an (DirecTV) senior secured credit McLean, Va./March 25, 2003/— SES Global company, to expand facilities. The size of the facilities International Launch Services its digital television broadcasting, was increased to $1.675 billion (ILS) has set April 29 for its first data transmission and from the previously announced Proton rocket launch of the year telecommunication service $1.55 billion. In addition to the from the Baikonur Cosmodrome offerings to North America from senior secured credit facilities, in Kazakhstan, carrying the AMC- its orbital slot of 72 degrees West DirecTV closed a $1.4 billion 9 communications satellite for SES longitude. AMC-9 will weigh senior notes offering on February Americom. about 4,100 kg at launch. 28, 2003. A Proton K vehicle with a The senior secured credit Breeze M upper stage will be facilities consist of a $250 million used for the delivery-in-orbit Intelsat Sharpens Focus five-year revolving credit facility, a mission, which was contracted on Three Growing Cus- $375 million five-year Term A loan with satellite builder Alcatel tomer Segments and a $1.05 billion seven-year Space of Cannes, France. Term B loan. The facilities are Hamilton, Bermuda/March 14, secured by substantially all of This will be ILS’ 14th launch 2003/— Intelsat has announced DirecTV’s assets and are of a satellite for a member of the the creation of three business guaranteed by all of DirecTV’s SES Global family of companies - units to sharpen its focus on the domestic subsidiaries. The $1.4 SES Americom and its data/carrier/Internet, video and billion senior notes were offered predecessor GE Americom, SES government customer segments. in a Rule 144(A) / Regulation S Astra and AsiaSat. In addition, ILS private placement and bear is scheduled to launch AMC-10, The three new business interest at an 8.375 percent annual 11, and 12 in the 2003-04 time units, reporting to Ramu rate, payable semi-annually. The frame. SES Americom also signed Potarazu, President & Chief 7 satmagazine.com industry news

Operating Officer, Intelsat, Ltd., created to manage all video arms race in Northeast Asia,” an represent key opportunities for customer bookings, inquiries and unnamed spokesman of North growth in fixed satellite services billing. Korea’s Foreign Ministry was and all are sectors in which quoted as saying by the North’s Intelsat has a solid market KCNA news agency. presence. The creation of these Japan Launches its First The two satellites, the first of business units will help sharpen Spy Satellites on H2A the company’s marketing and at least four in Japan’s $2 billion spy program, will allow Japan to customer service focus on these Tanegashima, Japan/ keep an eye on highly volatile segments, and is in alignment March 28, 2003/— A Japanese North Korea. The satellites will with senior management H-2A launch vehicle carrying the monitor military developments in appointments announced last nation’s first spy satellites lifted the reclusive communist state, as month. off successfully today in well weather, illegal immigration southwestern Japan amidst As President of the Data, and intrusion by North Korean growing fears of a missile test by Carrier & Internet business unit, spy ships, missile bases and North Korea. John Stanton will concentrate on plutonium-production sites. U.S. the strategic development of “The rocket was launched at spy satellites currently provide these key Intelsat customers, 10:27 am (0127 GMT),” said Japan with intelligence. The U.S., who comprise the largest Yoshihiro Nakamura, spokesman however, sells the images for customer base. The business for the National Space US$8,500 each, which is still a unit will encompass Intelsat’s Development Agency, minutes cheap investment when regional sales teams and will after the launch. “It was a nearly compared to the huge cost of focus on the changing needs of flawless launch,” he added. building spy satellites and telecommunications companies launching them. around the globe. Stanton and After the announcement of his global team, operating from the successful launch, North Japan’s decision to build its 12 office locations around the Korea warned the move could own spy satellites goes back to world, will drive new solutions spark an arms race in the region. August 1998 when North Korea to current customers as well as “Japan will be held fully test-fired a Taepodong ballistic those emerging in the responsible for causing a new rogue missile over its without marketplace. their knowing about it. The U.S. warned Japan of the launch. NASDA launch of ADEOS-II Intelsat Video Solutions, satellite in December last year headed by Jon Romm, President, using H-IIA Launch Vehicle, will streamline all video similar to the one that launched Liberty Media Backs operations at Intelsat, with the the spy satellites. (NASDA photo) News Corp.’s Bid for goals of accelerating response times to broadcasters and other DirecTV video customers while New York and Englewood, continuing to provide them with Colo./March 27, 2003/— News high-quality customer service. Corp. and Liberty Media Corp. The new Video Solutions unit is today announced an agreement identifying opportunities to grow in which Liberty will invest $500 Intelsat’s video business across million in News Corp. to help all regions around the world and finance a bid for DirecTV parent introduce the latest video Hughes Electronics Corp. products and services to estimated to cost at least $3 customers. A dedicated Video billion. Operations Center has also been

8 industry news

The investment gives News nearly 20,000 workers since late Corp. more than enough 2001. Others say a making a financial muscle to bid for US serious foray into the satellite TV satellite giant DirecTV. It also industry at this stage is a bit concretizes what Liberty Media premature and a huge Boeing’s 601HP features as many has been saying since January management distraction. as 60 transponders and uses this year that it will join News dual-junction gallium arsenide Corp in bidding for DirecTV. As Malaysian Operator solar cells and other new early as December last year, Binariang Orders Next technologies to provide up to News Corp. chairman Rupert Generation Satellite 8,700 watts. (Boeing photo) Murdoch had already said he from Boeing expects a 50:50 partnership with powered flexible service options cable mogul John Malone’s Kuala Lumpur/March 21, for the development of data Liberty, which has promised 2003/— Binariang Satellite services and Direct-to-Home financial backing in the effort. Systems Sdn. Bhd. and Boeing applications in Malaysia, China and India. Under the accord reached Satellite Systems, a unit of The Thursday, Liberty will have the Boeing Co., announced today the right, within the next six months, entrance into a contract for the M2sat and Thuraya to acquire $500 million in News procurement of a high-power Launch a New Mobile Corp. preferred limited voting commercial communications Broadband Service ordinary ADRs, at $21.50 per satellite. March 4, 2003/— M2sat Ltd and ADR. If Liberty does not exercise The new Boeing 601HP Thuraya Satellite its right, News Corp. can require satellite, designated Measat-3, Telecommunication Co. have Liberty to purchase $500 million will join the existing Boeing-built joined forces to launch high-end of News Corp. preferred limited Measat-1 and Measat-2 spacecraft broadband services of 192 kbps voting ordinary ADRs, at $21.50 in the Malaysia-East Asia Satellite and higher, aimed at the per ADR, should News Corp. (Measat) system. Measat-3 will international broadcasting acquire an ownership interest in be co-located with Measat-1 at industry and other high capacity Hughes Electronics Corporation 91.5 degrees East longitude and users in the government and within two years. will provide expansion and back- corporate sector. The new development leaves up capacity for Binariang to meet DirecTV with two potential the increasing market demand The Thuraya’s satellite suitors: News Corp. and SBC for satellite services within the capacity is combined with the Communications Corp., the region. Boeing will also provide advanced features of the M2sat nation’s second-largest an upgrade to the Measat ground mobile broadband platform with telecommunications provider. facilities on Pulau Langkawi, it’s portable TakeAway satellite Many, however continue to Malaysia, training and launch terminals. The launch represents express skepticism about SBC’s support services. the beginning of a new proposed multibillion-dollar bid Scheduled for launch in 2005, generation of mobile broadband for DirecTV, considering that its Measat-3 will employ 24 C-band services that have managed to revenue dropped nearly 20 per and 24 Ku-band transponders, triple current data transmission cent in the last two years. each providing 36 MHz of levels. In fact, by combining two bandwidth over a 15-year M2sat TakeAway terminals in Profit pressures have also minimum service life. Measat-3 Leased Channel mode IP prompted the San Antonio-based C-Band payload will cover connections up to 384 kbps can telecom giant, which once Africa, Middle East, Eastern be achieved. owned a 20 percent stake in Bell Europe, Asia and Australia. The Canada but sold it back to BCE Ku Band payload has been Inc. late last year, to lay off designed to provide high- 9 satmagazine.com Exec-Moves

Gilat Announces corporate turnarounds, as CEO of Satellite Impending Changes in Keter, one of Israel’s largest Systems, Top Executive Positions book publishing and printing or BSS, companies, and as Managing Ryan will Petah Tikva, Israel/March 10, Director of Gibor-Sabrina’s report to 2003/— Gilat Satellite Networks Pantyhose Division. Oren Most’s Bill Ltd. has announced the experience also includes Collopy, resignations of the management positions in vice company’s banking and venture president Chairman and oel capital in the United and States. Most, 52, received general Gat and Amiram Dave Ryan Levinberg, both co- his MBA degree from manager founders of the New York University in of Launch and Satellite Systems, company effective 1981. a division of St. Louis-based upon the meeting Boeing Integrated Defense The impending Systems. of the new Board of change in the company’s Directors expected top executive positions Ryan was most recently vice CEO Yoel Gat in April. coincides with the president and deputy general The voluntary resignations successful conclusion of Gilat’s manager, Space and Intelligence open the way for the restructuring plan that was Systems. Prior leadership appointment of a new Chairman authorized by the courts last assignments include a variety of at the upcoming meeting of the Thursday. Both Gat and military and commercial satellite new Board of Directors in April Levinberg, who are committed to programs. helping the new Chairman and where it is expected that Shlomo Prior to joining Boeing in Rodav will become Chairman President and CEO make the transition with the existing Gilat 1990, Ryan spent a 13-year professional management team, career designing and operating Both Rodav and Most join will continue in their present satellite systems at TRW Defense Gilat with a wealth of financial, positions until the new Board is and Space. His technical training business and managerial elected in April. is in communication systems experience and are well engineering, satellite payload positioned to carry the company systems engineering, and satellite forward into a new era of Boeing Names Dave integration and test. He earned growth. Shlomo Rodav, who is Ryan to Head its his Bachelor of Science degree in expected to assume the position Satellite Manufacturing Electrical Engineering from Rice of Chairman of Gilat, is the Business successful owner and manager of F. Suzanne Jenniches numerous companies in the high- St. Louis/Feb. 27, 2003/ — Named Vice President tech, infrastructure, environment, Boeing officials have selected and General Manager food and holdings areas. Dave Ryan to lead Boeing Northrop Grumman Satellite Systems effective Orcounty’s largest and most immediately. Ryan, a 13-year Baltimore/April 2, 2003/— successful cellular phone Boeing employee, succeeds Northrop Grumman Corp. company, where he was one of Randy Brinkley, who has Electronic Systems sector has the company’s founders and announced his intent to leave the appointed F. Suzanne Jenniches served as Deputy CEO and Head company on June 1, 2003. vice president and general of the Customers Division. manager of its newly formed As vice president and Prior to his work at Cellcom, Government Systems Division. general manager of Boeing Most led two successful A 29-year veteran of 10 satmagazine.com Exec-Moves

Northrop systems. Louis-based Grumman, Boeing In 1986, she was Jenniches had Integrated appointed manager of most recently Defense Systems & Technology served as vice Systems. In Operations where she was president of the this previous responsible for Communications assignment transitioning defense Systems business as well as in avionics hardware unit for the her new role programs from engineering company. leading the into smooth high-rate Huntsville Peri A. Widener The new production. site, Widener Government F. Suzanne reports to Jim Evatt, senior vice Systems Division Upon receiving a Jenniches president and general manager, comprises Bachelor of Science degree Missile Defense Systems.Since homeland security, automation from Clarion State College in joining Boeing in 1979, Widener and information systems, and 1970, Jenniches began her career has held a number of communication systems. The in science as a high school management and leadership primary products and services for biology teacher. In 1979, she positions on a range of programs both domestic and international attained her master’s degree in that include missile defense, defense and government environmental engineering from military aircraft, and space. This agencies include postal Johns Hopkins University is not Widener’s first assignment automation and material evening school and has in Huntsville. handling; air traffic control completed extensive post- graduate work in international communications and navigation She was assigned to the affairs at The Catholic University systems; command, control, Huntsville site from 1981-1992, of America. In addition, she has communications and intelligence and in 2001 was Ground-based attended the Harvard Business military communications; satellite Missile Defense site executive for School Program for Management ground stations; information Boeing Missile Defense Systems. Development. security and a variety of security She has personal roots in the sensors and systems that support north Alabama area as well. homeland defense initiatives. Widener’s parents, Wayne and Luanne Widener are long time Jenniches is also responsible Boeing Names New residents of Decatur, Ala. for Electronic Systems Senior Site Executive for Widener replaces Gina subsidiaries and sites located in Huntsville DeSimone, who took a new Cincinnati, Ohio; Gaithersburg, position at Boeing Air Traffic Md.; Peterborough, England; AL/March 18, 2003/– Peri A. Management in McClean, Va. Oslo, Norway; Gentilly, France; Widener has been named the Bourg-les-Valence, France; senior site executive for Boeing Stanton D. Sloane Mechelen, Belgium; and in Huntsville, Ala., effective Named President of Shanghai, China. immediately. Widener will oversee the business activities for Lockhead Martin’s After joining the corporation space, missile defense and Martin’s Management in 1974, Jenniches has served in satellite programs and the overall and Data Sysyem a number of positions of operation of the Boeing increasing responsibility Huntsville site, which employs King of , Pa./March 18, 2003/— including operations program about 2,600 people. Widener was Lockheed & Data (MDS). Sloane manager for the B-1B most recently director for will replace Marcus C. Hansen, electronically scanned antenna Business Development, Missile who is retiring next month after and the APQ-164 offensive radar Defense Systems, a division of St. continued on page 41 11 satmagazine.com Reviewsproduct & service

Satellite can benefit stack] encoder days of 1994. And costly,” says Cartwright. I can tell you there are plenty of “Telephony is an obvious. DSL from MPEG4 people out there still running take-up is nothing short of those 12-U rack encoders. As a incredible, with some 30 million Technology company Tandberg comparison we are now subscribers worldwide. The Television are recognised as supplying the same units, in fact predictions are huge. But simple innovators in engineering significantly better units, that high-speed internet is not solutions for the broadcasting take up a 1-U slot. The benefit is enough. Services have to be industry. At the upcoming April that they now operate and added on top and they are going NAB show in Las Vegas they will deliver a 30% saving in bit-rate to be video-based. But besides be unveiling a fully functioning for the same or even better DSL, there’s terrestrial broadcast, Windows Media 9 encoder, first image quality. Those 12-U units as well as mobile broadcast and outlined at last autumn’s were expensive to buy, reception, including UMTS and Amsterdam IBC. But WM9, and expensive to run and keep cool. DAB on satellite or terrestrial.” the similar H.264 and MPEG4- Those broadcasters were using Part 10 compression systems, 12-U kit and putting typically 6 He says a terrestrial also have major repercussions for channels on a transponder. Now, broadcaster with a greenfield satellite broadcasters. they could certainly manage 12 development plan for Digital channels and possibly more. The Terrestrial TV (DTT) could now Back in 1994 the fixing of consider an MPEG4-type the MPEG2 compression standard return on investment case is overwhelming.” solution. “The people who are revolutionised broadcasting. Who least-likely to adopt this next- could argue with the logic of “A 1-U codec costs well generation compression are swapping out a single analogue under $20,000. Our first 12-U those with a huge installed base transponder in favour of 5 or 6 shipments, which everyone of MPEG2. If I have 8 or 10 digital channels. However, wanted like crazy, shipped at million set-tops then you are MPEG2 has more or less reached $80,000. And they were happy to going to have to swap those the end of its technical buy because it gave them a boxes out and nobody will rush limitations. Yesterday’s average 5 business, a successful business. down that path to save or 6 channels is today more You cannot ignore the power transponder costs. It is going to likely to be 12 or even 16 that MPEG2 has had, and will be a generational thing, and is channels when multiplexed continue to have, to drive TV why MPEG2 has an excellent together. Indeed, Tandberg say forward. In 1991 worldwide future. If there are no legacy they have clients looking for 18 there were about 800 channels problems then MPEG4 and the digi-channels on a transponder. on satellite. It is today close on others have a great future. And Charles Cartwright, Tandberg’s 9,000. MPEG2 has been anyone who is bandwidth business development manager, tremendously effective in constrained,” says Cartwright. says “Bit rates are still going creating this revolution. Few down, partly because we can international standards have ever But, as always, there’s a deliver to customers equipment been quite so dramatic in their problem. “If I was to argue that that conform to these low rates. adoption or their contribution to suggestion through, for a country One of the things that’s the establishment of successful to adopt an MPEG4-type system interesting, especially oddly businesses.” from the get-go, then even with enough in the satellite arena, is 80 or 100 channels it would that they are still equipped with But now there’s a new kid mean they are still going head- old equipment. They might well on the block. “The first place to-head with incumbents offering be running with products we where we see these new hundreds of channels. In my sold to them at the start of the technologies, whether MPEG4, view it has to be something digital age, back in the 12-U [12- H264 or Microsoft WM9, is where different,” says Cartwright. unit size in an engineering room bandwidth is really precious and “Boosting the numbers of 12 satmagazine.com Reviewsproduct & service GLOBAL LINK PRODUCTIONS, Inc. channels from [an MPEG2 dependent] 25 or 30 to a [Windows Media-dependent] 50 or 100 still means you are trying to do what the incumbent is doing. But offer something totally different, and offer mobility and services to mobile devices and you might enjoy success. If I were [this operator] I’d be looking at providing some services to buses, taxis and trains. This would be a unique offering, on top of the core channels. Then, add in some specialised services. Some people might go for VOD, And for terrestrial, in my view, this means low bit-rate mobile reception services combined with the core channels.” Cartwright says Tandberg is already in l Two fully redundant digital or analog KU- discussion with potential DTT operators looking at Band uplink trucks available these advanced compression technologies. l Tandberg 4:2:0/4:2:2 redundant Besides DTT applications, new satellite services encoders w/ Alteia digital receivers using advanced compression are also possible, says Cartwright, and this includes high-definition TV, l Dual path, NO RESTRICTIONS particularly in Europe which is a Greenfield site as transmission far as HDTV is concerned. “Microsoft is particularly l High speed, wireless, 2-way Internet keen and have already demonstrated their [WM9] algorithm in a High-Def format at IBC last year. It broadband systems on board performs extremely well and uses a 5 Mb/s HD l 20 Channel Audio mixer. RTS, IFB compression with remarkable results. One might systems suggest it is time for Europe to consider HD again.” l Beta SP on-board editing system Cartwright says advanced video compressions are also beginning to show themselves in SNG and l KU-Band Fly Away systems available ENG roles. “We produced our first MPEG2 decoder l Professional camera crews for ANY job. back in 1994 and have been working on MPEG for almost 10 years. For us now to be working on MPEG4 and WM is wonderful. In five years time we will look back at 2003 and see it as a year of absolute change. Today we are at the front edge, but 5 years from now we will realise where we were. It’s exciting.” (Chris Forrester)

Mentat and V-ONE to Provide High Performance Satellite Security Solutions

Germantown, MD and Los Angeles, CA/ GLOBAL LINK PRODUCTIONS, Inc. Satnews/ — VPN security products provider V-ONE 1175 Saratoga Ave., Suite #1 Corp. (Nasdaq: VONE) and satellite link San Jose, CA 95129 enhancement products provider Mentat® Inc. have Tel: (408) 465-2787 / (800) 676-4080 announced that they are partnering to offer the Fax (408) 465-2345 advantages of virtual private networks with the www.satnews.com/globallink benefits of link acceleration. V-ONE’s SmartSatT E-mail: [email protected]

13 satmagazine.com Agile Communication Systems productReviews & service Finally True Mobile wireless 2-way Broadband program was specifically designed to address the for your ENG, SNG or needs of satellite users, and incorporates V-ONE’s award-winning SmartGate® application layer Emergency Response technology. Using SmartGate in conjunction with Vehicles Mentat’s SkyX® Gateway and SkyX Client/Server products, users can take advantage of satellite link enhancement while maintaining end-to-end data security. TCP, the protocol used for data communications over IP networks, does not perform well under the long latency, asymmetric bandwidth, and high loss conditions typical of satellite networks. Mentat’s SkyX products overcome these limitations by transparently replacing TCP with a highly efficient protocol especially optimized for satellite conditions. SkyX products accelerate Web downloads, file transfers, e-mail, and all other TCP applications while remaining entirely The mobile satellite dish mounts on top of transparent to end users. your ENG, SNG, truck, trailer or RV. Software on your computer makes the dish However, data communications that are automatically raise up and lock on the protected using IP Security (IPSec), which satellite in about 5 to 10 minutes. Once encrypts the TCP headers as well as the data, locked on, you’re online at broadband cannot be accelerated and are therefore subject to speeds anywhere, anytime, all the time. poor throughput over satellite links. V-ONE solves this problem while remaining compatible There are No-Per minute fees and no extra with SkyX performance enhancement by offering bandwidth charges. a VPN solution that packages data and sensitive addressing information into encrypted payloads, l Automatic “Hands Free” all weather and then transports this protected information to positioning the VPN server using normal TCP packets. l True Broadband Mobile Internet Testing by Mentat and V-ONE demonstrated that data transfers secured using SmartGate receive l Always On. No idle disconnects virtually the same level of performance as l Flat rate monthly billing - no unexpected unsecured data. On a 1 Mbps satellite link, using charges V-ONE technology with the SkyX Gateway, throughput rates for file transfers were 950 Kbps, l Quick reacquiring of a satellite that was nearly 10 times faster than IPSec encrypted pointed at last GPS location, heading and transfers or transfers not using SkyX altitude enhancement. l Nationwide Installation “Our testing confirmed that V-ONE’s l 24-7 Technical Support application layer security technology interoperates well with SkyX satellite link Agile Communication Systems enhancement, allowing full performance 16080 Caputo Drive #160 enhancement for encrypted data,” said Kay Morgan Hill, California 95037 Guyer, Mentat’s president. Tel: 408-782-1371 www.agilecoms.com 14 satmagazine.com cover story The State of the Art of By Virgil Labrador the Satellite Industry

“In the middle of difficulty lies opportunity.” — Albert Einstein

Amid a constant barrage of bad news about an economic Total Satellite Industry Revenue downturn, falling sales and layoffs and now the raging conflict in the Middle East, a pall of gloom and doom permeates some segments of the commercial satellite industry. Industry consultant Leslie Taylor put it succinctly in a recent presentation at the Pacific Telecommunication Council by asking the audience “Is the sky falling?” The audience response of course, is a resounding no. However, if we are to believe all the doomsayers it would certainly seem so. It does not help if you were recently laid-off or know someone who has. Source: Satellite Industry Association Industry statistics, however, show, believe or not, that the industry, as a whole, is actually growing, just not at its usual satellite industry into four growing. The latest Satellite pace. The overall satellite segments: Satellite Industry Association (SIA) survey industry has grown an average of Manufacturing; Ground (April, 2003) reported that the 15 percent annually from 1996- Equipment; Launch Industry; and commercial satellite industry 2002—from total revenues of Satellite services which includes generated $86.8 billion in $38 Billion in 1996 to $86.8 transponder leasing and retail/ revenue in 2002—an increase of Billion in 2002. This represent a subscription services such as 10 percent over 2001 industry 114 percent (almost double) DTH, etc; revenues. SIA President Richard increase in the last six years. (see As in the last several years, DalBello noted that “despite a Figure I) sluggish global economy in 2002, satellite industry revenues were the satellite industry continues to But the overall satellite driven primarily by Direct-To- make significant progress.” revenue figures, are skewed Home (DTH) services, which toward certain segments of the accounted for a whopping $42.5 Indeed, the industry is market. The SIA has divided the billion, roughly 49% of the entire 15 satmagazine.com cover story

Satellite Industry Revenues by Segment 448,569) has emerged as the largest satellite operator in the world with its savvy acquisition of US operator GE Americom (now SES Americom) among others and equity partnerships with Latin American operators Nahuelsat and Star One as well as the Asian operator, Asiasat. To put the consolidation in the industry in perspective—it will be recalled that there was only one global operator, INTELSAT, for most of the 40- year history of the commercial satellite industry. Only after deregulation in the late 80s paved the way for operators such Source: Satellite Industry Association as PanAmSat and ASTRA (the precursor of SES Global) was that industry’s revenues. By three years ago contributed in no virtual monopoly challenged. comparison, at just $7.3 billion, small measure to the current This in turn led to the transponder leasing revenues capacity glut. The dot.com proliferation of many operators experienced zero growth in 2002 collapse and the telecom and consequently intense after a decline in 2001. DalBello meltdown has resulted in competition. explained the lack of revenue cancelled contracts that freed up growth in transponder sales was substantial capacity. (a more That glut in capacity has hit directly attributable to “the detailed discussion on this is in hard on the satellite introduction of roughly 1000 new Dan Fryer’s article “The manufacturing and launch transponders into service and Broadband Promise” in this services side of the industry. subsequent falling lease prices issue). According to the SIA survey, and fill rates.” global satellite manufacturing Lower revenues and smaller revenues in 2002 were $12.1 The decline in the market share has led to billion, a 27% increase over 2001 transponder sales segment, consolidation among satellite revenues. 2002 revenues which can be characterized as operators, while smaller, one- or however, were driven, in part, the “bread and butter” of the two-satellite systems being by the delivery and launch of industry, is where perhaps the absorbed by larger global two billion-dollar government downturn in the industry is most players. In 2002, for example, satellites (the U.S. military’s felt. DalBello correctly the consolidation pecking order Milstar 5 and the European attributed the decline in was played out by a single research satellite, Envisat). transponder sales to a glut in the European satellite operator, Revenues for satellite industry brought about by Stellat , bought and absorbed by manufacturing and launch overcapacity after decades of Eutelsat—which in turn was the services are booked upon growth. object of a competitive bid by launch, not at the awarding of a The failed promise of global players, PanAmSat and contract. DalBello said broadband services which the INTELSAT. SES Global from the “although 2002 was a lackluster satellite industry pinned much of tiny Grand Duchy of year for new satellite orders, its hopes and business plans Luxembourg (population strong revenues reflect the

16 satmagazine.com

launch of satellites contracted in previous years. The significant decline in orders in 2002 will be reflected in satellite manufacturing revenues in 18-24 months” Dalbello noted. Overall launch industry revenues increased 23% to $3.7 billion in 2002, while U.S. launch revenues declined by 9% to a seven year low of $1 billion. DalBello noted, “the decline in U.S. launch revenues can be attributed to the continued price war among the many new and old players in the global launch industry and the cautious response of global buyers to the introduction of two new U.S. launch vehicles in 2002.” The manufacturing and launch segments of the industry is also ripe for consolidation. With three major US players in the Asian manufacturers and launch in this sector has been observed manufacturing sector ( Boeing services providers contributed to is in end-user equipment sales Satellite Systems, Space Systems the woes of US companies. for VSAT, satellite television, Loral and Lockheed Martin) less high-speed Internet, and satellite On the bright side, the than 1/3 of current capacity is radio services. satellite ground equipment sector currently utilized. U.S. Export accounted for $21.2 billion in The most promising sector of control issues and increased revenue – an 8% increase over the industry is indeed DTH and competition from European and 2001. The largest revenue growth other satellite and video services 17 satmagazine.com cover story

The across the board strict fiscal Telecommunications management policies and have sector, now rationalized their resources both starting to human and technical. There is emerge from no more talk of the next “killer bankruptcy, is app” in favor of a more “back to showing the basics” approach. All these definite signs makes the industry better poised of recovery. to face the challenges and take Broadband advantage of the opportunities in services and the current enviroment. Internet via satellite In sum, the sky is not falling. services are Far from it. There are more now seen as a satellites up in the geostationary longer-term belt conceived by Arthur C. prospects as Clarke only fifty some years ago, opposed to than ever and more are in the the panacea a process of being built and few years ago. launched. Although satellite technology is capable of Despite, reaching every square inch and overall figures every person in the planet—only presenting the a fraction of the world’s industry in a population actually are Despite a positive growth, the positive growth—there is no consumers of satellite services. satellite industry is experiencing denying that the industry as a The demand for satellite services a major down turn. whole is experiencing a major will only continue to grow—as it down turn. However, the has for the last six years and among others. According to consensus in the industry seems most of the history of the Euroconsult, there are now over to be that the worse is over. A commercial satellite industry. 9,500 TV channels broadcasting lot of the start-ups with flawed over satellite (Satellite Video and business plans are gone and TV Services: World Survey and those that remain standing have Prospects to 2010). They are made the neccesary corrections projecting DTH and other and adjustments to face the satellite video services to grow current challenges. Satellite by almost three-fold to US$ 120 companies have also instituted Billion by 2010. Satellite Radio is also Virgil Labrador is managing editor and editor of promising. XM Radio in the U.S. is exceeding all expectations and SATMAGAZINE. He is also Editor of Satnews Daily is on pace to hit one million and Weekly editions and the annual International subscribers by the end of 2003. Satellite Directory. He has written extensively on the industry and is currently working on a series history of the satellite communications Government business, industry serialized in Satnews. He holds a master’s degree in specifically for defense Communications Management from the Annenberg School for applications, is growing and will Communication of the University of Southern California. He can be continue to grow in the near- term. reached at [email protected]. 18 satmagazine.com features The Satellite Broadband Promise pond is smaller. A ship By Dan Freyer or two has sunk and some are treading water, but trade winds are blowing in the right direction.

WHAT WENT WRONG? What went wrong last year in North America’s broadband satellite market? According to Brad Greewald, VP Business Development and Marketing for WildBlue Communications, Inc. “The overall financial markets were down so new investment in broadband or satellites was almost non existent. Investment in satellite broadband was non existent”. By the end of 2001, in the wake of the dot-com free fall and telecom woes — and satellite finance problems helped by mobile satellite Three years ago, broadband seven-fold increases in failures like Iridium and service was heralded as the achievable bandwidth per orbital Globalstar — Lockheed-Martin satellite industry’s next big wave. position and the Internet boom stopped support of the $3.6 Operators drooled at the in full force, Ka-band projects Billion global Ka-Band venture prospect of huge new demand like Bill Gates and Craig McCaw- Astrolink half way through for satellite Internet bandwidth backed Teledesic, Lockheed satellite construction. A major for both backbone access and Martin’s Astrolink, Hughes’ Intelsat broadband satellite content multicasting. More Spaceway, and Wildblue set sail system RFP was shelved. The capacity would be needed than with business plans calling for once science-fiction-like existing Ku-band systems could Billions in new infrastructure. Teledesic behemoth suspended handle. With advanced Ka-band And they succeeded in raising its 30-satellite construction and technology promising up to billions in equity. Today’s let most staff go. And last June, 19 satmagazine.com feature

StarBand, the number two NRTC, Intelsat and others satellite Internet company — back the company, and its with 40,000 customers located in first Ka-Band payload is the U.S., Puerto Rico and the U.S. schedule to launch late Virgin Islands — filled for this year aboard the Anik Chapter 11 protection. It’s F2 satellite to operate at currently restructuring. 111.1° W.L. While some investors were Existing service jittery, not so for SES-Global, providers like StarBand which announced last summer and Hughes, and future ambitious plans for a new DBS- Ka-Band players like plus-Internet satellite network for WildBlue, are gunning for the U.S. Dubbed the same markets. AMERICOM2HomeSM , the service will use two spacecraft at 105 According to and 105.5 West Longitude Blackwell, “StarBand’s Starband’s Model 360 modem including a Ka/Ku-Band target market are the 20- spacecraft AMC-15 scheduled for 30 million U.S. launch in Q3 of ’04 carrying of the broadband households in households and eight million twelve 125 MHz Ka-band spot the US in 5 years.” “That’s SOHO businesses unable to get beams. roughly 1.5 million residential DSL or Cable. We can reach subscribers or 2% of online any home that can see the households” she adds. southern sky and 9 out of 10 CAN 225,000 CUSTOMERS BE homes do.” WildBlue’s WRONG? On top of StarBand’s 40,000 Greenwald has a similar target customers, Hughes Network “We see 30 million homes not Despite industry Systems’ DIRECWAYSM two-way consolidation, bankruptcies and served by Cable Modem or DSL broadband satellite service now as our key target audience. We shutdowns, U.S. cable modem claims an industry-leading subscribers grew from 10.3 to are targeting rural consumers and 160,000 subscribers. Meanwhile small offices”. In addition, the 11.3 million last year1 while U.S. is Hughes is continuing plans DSL subs jumped from 4 to market for U.S. SMEs (small/ hatched over six years ago for a medium sized enterprises) not nearly 6 million2. The Yankee new $1.8 Billion Ka-Band Group forecasts 361% growth addressable by DSL due to their system, SPACEWAY, for which distance from telco switches has through 2007. In Canada the sources report it has spent over been estimated at 2.3 million3. DSL growth race outpaced the $1 Billion so far. HUGHES says U.S. SPACEWAY will launch satellites Satellite Internet providers StarBand’s Sheila Blackwell, in late 2003 and enter argue that that their service is a Director, Communications & commercial service in the third complement to cable modems Dealer Direct Sales says “We quarter of 2004. DIRECWAYSM and DSL with special features. wouldn’t characterize an customers can be expected to “We don’t compete with those industry-wide growth in 2002 to migrate to the revved-up Ka- services” says StarBand’s 255,000 consumers using high Band on-demand offering of Blackwell. Spaceway hopes to speed satellite Internet as SPACEWAY. differentiate its service by offering “bandwidth-on-demand” anything but solid growth in the Also building a Ka-Band industry. In fact, Bear Stearns ability so that users can run system, although not yet additional apps like temporary predicts that growth in residential providing any services, is broadband subscribers through large file transfers, or webcasts WildBlue Communications, Inc. and video conferences without 2007 overall will be 22% with the of Colorado. Liberty Media, satellite Internet capturing 3.5% requiring a hardware or service 20 satmagazine.com feature upgrade. transponder sub figures transponders that’s difficult. For confidential, industry sources say example, assuming a 40 Mbps that business plans need 15- one-way transponder pipe, at KA-BAND TO THE RESCUE 20,000 broadband subs per 10% peak online users out of Although satellite internet transponder to work. For 20,000 subs, only 20 Kbps providers keep their per- today’s conventional Ku would be available per user. But that’s less than 48K dial-up. In this case, return-link space segment cost along might run at $8.25 or so per month per subscriber. But assuming that a minimum bit rate of 128K Savings up to 98%? is provided for worst-case (peak usage) 20,000 subs would need over six No wonder your times the bandwidth, costing as much as $52 per sub per month out of competitors don’t a typical $60 bill. Add on additional network costs, backbone access, want you to know per-subscriber acquisition marketing costs of $120- $17544 ibid. ($10-$15 about Microspace. per month if amortized over a year), distributor revenue split of 10-20% and other expenses and They’re using Microspace’s the profit opportunity VELOCITY® service for video, audio, narrows. and data content delivery via satellite – That’s where Ka-Band with all the reliability of landlines. satellite technology When you have an advantage, you keep it to yourself. That’s why innovations and Microspace clients don’t want you to know they save tens of millions with our economics have a huge VELOCITY service, compared to what telcos charge. impact. “We believe our They don’t want you to know about our fixed bandwidth fee for any space cost infrastructure is number of locations – another way of saving money. five to seven times less And, they don’t want you to know about Microspace reliability, every bit as good as landlines, with service at more than 300,000 sites. expensive on a ‘per bit’ But why should you care what they think? Go ahead and call basis than existing Ku (919) 850-4500 or visit www.microspace.com right now. You can have the cost structures”, says Microspace advantage, too. WildBlue’s Greenwald. “Compared with terrestrial broadband, “Our primary advantage is that we can profitably serve less What’s stopping you? dense areas” he adds. Microspace Communications Corporation, 3100 Highwoods Blvd., Raleigh, NC 27604 • (919) 850-4500 • www.microspace.com For its part, Hughes

21 FEATURE

developed a new low-power, given its pared down operations. HURRY UP AND WAIT lightweight receiver/transmitter chip WildBlue, with its rural focus has for its payload that bursts at up to partnered with investor NRTC 2003 should mark a major 440 Mb/s. When deployed on (National Rural milestone as North America’s first SPACEWAY birds, the chips should Telecommunications Ka-Band commercial birds skyrocket cut 20% off the previous cost for that Cooperative) for access to into orbit. It’s an exciting time for kind of performance, says Hughes. NRTC’s 1,000-odd members’ 20 satellite technology as next-generation million rural customers. Once Ka-band systems have a chance to Ensuring that affordable Ka- launched in 2004, WildBlue, will prove their “metal”, not to mention Band consumer terminal gear is also bundle its services through their processors. We should see widely available will be critical. an agreement with Echostar, also major improvements in bandwidth “We also believe that our use of a WildBlue investor, to offer a package efficiency breathe new life into satellite industry standard (DOCSIS) CPE of TV entertainment and broadband Internet and multimedia applications will reduce cost structure, and access. Today however, NRTC is when Ka service pick up in 2004. hence price points, of a currently selling for WildBlue’s Broadband offering” says competitor. Its re-selling Hughes’ 1 Source: National Cable Television Greenwald. WildBlue hopes to DIRECWAY services along with to take advantage of the $70 and Association website Earthlink and SBC Communications. 2 Source: Convergence Network Digest declining retail cable modem If that weren’t a tangled enough web, website pricing made possible by the 11 3 Source: FCC website document enter Echostar’s just-announced deal McKinsey & Co. million-plus quantities shipped to to become a major tenant of the Ku- date in the US alone. Band transponders on SES- Americom’s AMERICOM2HomeSM CHANGING CHANNELS AND TV and Internet satellite platform. MUSICAL CHAIRS Retail marketing and distribution are key challenges, and industry alliances and shifts Dan Freyer has helped helped leading satellite companies like Intelsat, PanAmSat, and TRW grow continue keep things interesting. their revenues and markets since 1989 in various Having settled its messy legal spat sales, marketing and business development with Echostar last year and parted management positions. He has helped numerous ways with the latter as a major cable, broadcast, Internet and VSAT users design distributor channel, StarBand’s said it and deploy satellite networks in the US and intends to play solely as a wholesaler overseas. He has been a speaker at industry events and has been a Board member and Vice President of the Society of Satellite Professionals International. Dan is a partner at Westwood Media Group in Los Angeles. Email questions/comments: [email protected]

22 satmagazine.com SES Americom: “We’ll jump-start A2H this year”

By Chris Forrester

We have prime US real estate, says Olmstead Dean Olmstead, president and CEO of SES Americom. He says they will launch their Americom To Home (A2H) DTH/DBS service this year come what may. Currently, the company is looking for FCC approval to exploit a Gibraltar/UK orbital position at 105.5 degrees West, slap alongside Americom’s existing 105 deg West spot. The plan has created controversy and brought Americom into direct conflict with DBS operator DirecTV, which claims that the proposed SES transmissions would cause unacceptable interference to its millions of existing subscribers served from its DBS platforms located at 101 and 110.5 deg W. “SES Americom is trying to sneak in the back door by using a license allegedly granted by the Dean Olmstead Government of Gibraltar to place a satellite at an orbital location that would not be permitted if the is the [US] government making sure that operators satellite were licensed by the FCC,” said DirecTV are acting in good faith. What is slightly president and COO Roxanne Austin recently. “Our disappointing is that the FCC is focusing on the opposition to SES Americom’s FCC petition is not wrong constituency. They seem to be trying to about competition, we welcome the competition, protect DirecTV as a US licensee, instead on it’s about interference. A DBS service delivered concentrating on the broad public benefit of having from a satellite at the 105.5 degrees orbital slot additional operators available to viewers. Satellite would cause our customers to suffer significant geometry is well known. We know exactly how it service interruptions and impede our ability to works and what the angles are. If they work in deliver local broadcast channels.” good faith, and if there are elements that need Not so, implies Olmstead. “There are real modification we will make those adjustments. This discussions to be had, about frequency co- is what any operator would do, making ordination for example, but you have to go into compromises.” those discussions in good faith. What we count on Olmstead also admits there is some confusion over the precise A2H offering. “That’s partly our fault. So let’s be clear, A2H is our working name for a service that will go to the residential market. We are not new to this. We carried PrimeStar which was the first satellite multi-channel video system in “Our opposition to SES the US, which itself was amazingly successful given Americom’s FCC petition is not all the problems it had. It reached some 2 million about competition, we welcome subscribers and they were our customer until the competition, it’s about February, so even after being acquired by DirecTV interference. they remained our customer. So we have been 23 satmagazine.com

active in that segment, and have looked closely at AMC-15 is Based on the A2100 model and being what we can do to replace that business with built by Lockheed Martin, AMC-15 will feature one something news going forward. We also want to of America’s first operating Ka-band payload exploit the expertise we have generated in Europe. along with 24 transponders of Ku-band capacity operating from 105 West, We want to tap into the revenue possibilities flowing from a residential service.” “Behind A2H there are a range of satellite other nice thing about AMC-15 is that it has Ka- assets, including AMC 15 which will be launched in Band on board. Unlike the SES Astra Ka-band fleet mid-2004 with Ku/Ka capability, and we are which uses Ka-band in one direction, we can use making some adaptations to make it more attractive Ka in both directions, up and down or a to a residential service. It will go to 105 deg West, combination of both. The current thinking is that which everyone recognises as being prime real video can carry on using Ku as normal and the Ka estate as far as orbital positions are concerned. We will largely carry broadband. But this isn’t are putting circular polarisation on the beams, in exclusive. We have a lot of capacity at 105 degrees, addition to linear. What this means is that FSS and our proposition to the market is to ask them frequencies can be linear or circular. The advantage what we can do to help you launch your service. in having circular potential is that the BSS We’d like to see DVB standards, we’d like to see frequencies in the US is circular, so it will make it next-generation boxes, but what does the customer easier for [reception on] multiple LNBs in a dish. need? It may be uplinking, for example. It means They could see us as well as DirecTV. That satellite we are moving a little differently to the way is not only going to happen but we are looking at Americom used to in the past. We are also saying putting an interim satellite on to the location to we can help you, as we did in Europe, to get to allow us a jump-start to business. There are some market.” major fleet additions coming up, and we have an Olmstead says there’s a key meeting between upcoming launch of AMC-9 and if that goes well SES and DirecTV, along with the FCC and the then we will redeploy a couple of satellites in the British Radiocommunications Authority in Bermuda fleet to better serve customers. And this is one scheduled for the end of March and if everyone’s option.” done their homework we should be able to sit “So AMC-15, an FSS craft, is the first stage. The down and have some real discussions,” says 24 satmagazine.com

we give the channel much more control, much “That satellite is not only more flexibility. Potentially we might end up going to happen but we are operating in the retail sector, but there are also other people operating very well in that area which looking at putting an could help a channel out. We have a number of interim satellite on the intermediaries already and they could handle location to allow us to distribution and become more meaningful. They jump-start to business.” want this role, but wanted a suitable technical solution and we provide this. They could supply the market with a suitable ultra low-cost dish with — Dean Olmstead a twin-LNB that would be good for DirecTV and us, or Echostar and us, or all three.” Olmstead. He admits that if the FCC decision to use “We are optimistic about free-to-air, perhaps 105.5 goes against SES it will be difficult to appeal. more optimistic than the market,” admits Olmstead. “The other risk is that everything just procrastinates “But the market has absolutely no means of trying for ever and we drift on and on without the FCC that model out in the US. There is no model which making any decision, and [everything] becomes today allows someone to launch a nationwide free- irrelevant. The FCC is supposed to ensure efficient to-air channel. You cannot rent a channel on use of the spectrum, and if they don’t allow us to Echostar. So few have thought of it, and besides come into the market they are, in effect, depriving the advertising isn’t sold this way. This is a task for the public, and the market, of that spectrum. I have us, which we recognise, that we must educate the to say that we have found the FCC wholly market. Free-to-air is an interesting concept that we interested in our arguments and over our policy think will grow over time.” discussions with them.” On the question of costs for access Olmstead ‘Americom To Home’ represents a huge stresses that 105 deg West is prime real-estate, “So I investment for SES Global. “We will have AMC-15 would not expect our rates to be any less than in place, and we have a procurement for AMC-14, elsewhere in the Americom system. Today, if you AMC-16 is a ground spare also under construction want to lease Ku-band FSS capacity at prime slots and we are also looking at an RFI to find out what you are probably looking at $160,000-$180,000 a the industry might do for a high-capacity all Ka- month. But we consider this to be the best real Band satellite. If broadband takes off then we want estate. On the other hand, penetration rates are to be able to put this in place as a next-generation going to be very low to start with and we intend bird perhaps three or four years from now,” says working with content suppliers and platform Olmstead. aggregators to recognise this and work with them to help them get their business off the ground. But Olmstead says that there’s a waiting list of we need to be cautious on rates, because there are channels looking for suitable carriage, frustrated lots of variables, not least if people need because of spectrum shortages and not having the conditional access or other services, all of which muscle to find slots on DirecTV or Echostar’s DiSH would affect rates.” system. “We are also different to DirecTV and Echostar in our business model. A channel on As to A2H’s optimism of the potential size of DirecTV or Echostar never sees the end subscriber. the market, Olmstead says Americom’s system can You have to cut a deal with [DirecTV or Echostar] support 300-350 channels. “If we get the BSS and maybe you’ll get a few cents, a few crumbs capacity, and if it were all exploited for video, then from their table on some sort of revenue share. it would be upwards of 1000 channels, maybe as What we want to do is simply to sell [channels] many as 2000.” capacity, at fair rates, and an opportunity to carve out their own destiny or perhaps combine with others to create their own platform. In other words 25 satmagazine.com features Are you Protected?

By John M. Puetz

Are you ready in the event that your normal data centers and the recovery hotsite is especially business voice and data communications services important is. And in emergency situations the local are interrupted? Likely not, according to a recent infrastructure, especially cellular telephones, can be online survey conducted by Disaster Recovery quickly overwhelmed. Journal (www.drj.com), only 22 percent of their readership feels that their telecommunications The key to minimizing losses is to get back network is adequately protected from outages. That online quickly. VSATs can provide a true path leaves a wide gap of vulnerability—especially diverse alternative network connection that when service interruptions are caused from natural bypasses the current infrastructure and can be or man-made disasters, equipment failures or just activated within seconds of a telecommunications plane human error. Additional survey data failure. Further broadband VSATs provide the indicates that 76 percent of network outages occur benefit of service anywhere within their coverage every three months or less! area and with relatively high bandwidth capacities. With an antenna located on a company’s various Even the most reliable terrestrial networks are properties, a 2 Mbps end-to-end connection can be susceptible to outages whether natural or man- made independent of wires, cable, or fiber. made. Often, backup connections follow the same Furthermore, backup services can be deployed to underground cable conduits that primary just a few critical locations or across an entire connections use. Furthermore, damage to a facility enterprise network. The more sophisticated isn’t required to disrupt communications; any broadband VSAT systems can also be used for load- interruption along the communications path balancing. So when your primary network becomes between a business and its customers or suppliers congested, the VSAT system brings additional can result in operational losses. Furthermore, the capacity online to data paths that need it the most. communication link between key business sites or Do these systems really work? “One of our clients recently lost their fiber connection and was operating WAN Average Outage Frequency over our network for several hours before they were aware of the outage. Weekly They learned about it only after we Annually 12% had contacted them. So I think that’s a 24% good testimonial to seamless switchover in operation,” states Jeff Gross, general manager, Immeon Networks (www.immeon.com) located in Atlanta, GA. Monthly Take a close look at the 28% accompanying requirements table. How does your current backup system compare to the checklist? If you’re Quarterly looking for new services, make sure 36% the alternatives you are considering meet these. The right VSAT system

26 satmagazine.com features implementation can satisfy all of these criteria and at attractive pricing. John M. Puetz is founder and principle consultant of MasterWorks Besides the DRJ mentioned above, a number of Communications. He is an other online resources are available for disaster internationally known business and recovery planning and telecom alternatives. These technical expert in satellite include Contingency Planning & Management communications with over 20 years of (www.contingencyplanning.com), the Global VSAT industry experience serving the radio Forum (www.gvf.org ) and my website at broadcast, satellite and telecom www.mwc.cc. Plan ahead—it can pay huge industries. He possesses a strong foundation in dividends in keeping your business running smoothly no matter what is happening around engineering, engineering management, product you. management, business development, strategic planning and marketing. He can be reached at [email protected]

27 satmagazine.com features

European pay-TV: “The rise and rise of DTH” By Chris Forrester

A major report from Screen picking up, helped by a half- “The Central model concerns Digest [European Digital Pay TV million growth in subs last year. Scandinavia, Benelux and Platforms, March 2003] pulls no “If a general trend can be German-speaking Europe. Here punches in praising satellite DTH identified to underpin this report, multichannel television is in its forecasts of growth in the it could be that consumer provided by pure distributors. sector to 2006. Despite a severe appetite for multichannel Broadcasters pay to get carriage advertising recession that some televison remains high. The long on cable or satellite, and European countries have still to term rise in penetration has not channels are exclusively financed escape from, war and a general been undermined by the by advertising. Penetration is economic uncertainty, pay recession.” high: generally over 80% of television in Europe has enjoyed homes have a dish or are remarkable growth though the Screen Digest splits Europe’s connected to cable. And cable, past 5 years. In the five years to individual countries more or less which dominates the market, is 2001 pay TV penetration through into two, with one group falling heavily regulated both in content cable, satellite and terrestrial into what it describes as the and prices. Subscription-financed platforms rose 13 percentage “Atlantic Model” and the others channels have penetration rates points to 46.5% per cent of adopting the “Central Model”. under 10%.” Western Europe’s television The Atlantic model “is that of homes,” says the report. “In 2002 multichannel TV mostly driven The report argues that the the increase was more modest, by subscription services. New ‘Atlantic’ group further enjoys the total approaching 47%. Early channels are financed by a fast-growing adoption or indications are that growth mixture of advertising and deployment of digital should accelerate again in 2003.” subscription. The distributors of technology, and while ‘Central’ multichannel television are pay viewers have numerous (mostly This is good, but the real TV operators that shape the free-to-view) channels, they also driver is satellite TV, say the offering on a commercial basis suffer heavy cable regulation report’s authors: “the totalnumber and pay licence fees to the which has stymied operator’s roll of subscribing homes trebling to channel providers. This is how out of digital. Nor is there seen 15.7m in the five years to 2001. American cable (and later to be any pressing need from Despite all the bleak media satellite) television took off and consumers to trade up to digital. business news headlines in 2002 the model was reproduced to a a further 1.8m subscribers were very large extent by the Irish, “In one key respect,” the recruited.” Cable has been held British, French, Spanish and report continues, “the two groups back by a series of corporate Portuguese cable and satellite of countries are nevertheless failures (NTL, UPC) although industries.” very similar. In both, satellite there are signs of momentum growth has clearly outpaced that 28 satmagazine.com Digital PayTV Forecasts *

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 %%% %%%%%%%% Austria 0.00 0.00 0.00 0.00 0.09 0.15 0.79 1.68 3.68 6.69 12.99 Belgium 0.00 0.00 0.47 1.58 2.00 2.23 2.04 3.03 4.42 6.20 8.97 Denmark 0.00 0.00 1.64 2.56 7.18 11.55 14.12 16.90 21.70 28.04 35.28 Finland 0.00 0.00 0.06 0.24 0.97 2.38 3.34 5.05 8.16 11.67 16.29 France 2.12 5.71 8.92 11.63 13.88 15.84 17.77 19.89 23.46 27.90 32.99 Germany0.06 0.60 1.88 3.47 4.58 6.12 6.51 7.40 9.05 12.30 17.89 Greece 0.00 0.00 0.00 0.19 1.55 2.74 4.67 6.22 7.35 8.33 9.20 Ireland 0.00 0.00 0.00 0.00 0.13 21.08 28.49 35.43 50.09 61.40 72.33 Italy0.26 1.13 2.86 6.52 10.29 10.52 11.73 13.39 15.37 17.07 18.50 Luxembourg : : : 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Netherlands 0.00 0.00 0.00 0.03 1.07 2.15 3.37 5.10 7.73 11.72 17.67 Portugal 0.00 0.00 0.33 2.34 4.18 7.28 10.02 14.10 20.42 27.35 35.89 Spain 0.00 3.05 7.85 10.52 15.31 17.32 16.42 17.64 19.61 22.17 25.58 Sweden 0.00 0.00 0.99 2.32 9.80 17.31 22.25 27.57 33.72 41.82 51.51 UK 0.00 0.00 1.03 10.97 26.23 35.45 34.29 38.76 43.22 47.58 49.02 EU total 0.38 1.44 3.16 6.51 11.04 14.08 14.89 17.01 19.88 23.41 27.47 Norway0.00 0.00 0.41 1.60 12.88 23.62 30.05 36.17 44.34 52.59 61.53 Switzerland 0.00 0.00 0.00 0.35 0.60 2.31 4.03 6.33 9.78 13.63 17.93

W. Europe Total 0.36 1.39 3.06 6.33 10.86 13.96 14.86 17.03 19.98 23.57 27.69

Czech Republic 0.00 0.00 0.00 0.00 0.55 1.08 1.26 1.51 1.86 2.33 2.95 Hungary0.00 0.00 0.00 0.00 0.81 1.65 1.85 2.32 3.15 3.81 4.78 Poland 0.00 0.00 1.26 4.21 5.66 4.71 5.46 5.99 6.46 6.81 7.37

E. Europe Total 0.00 0.00 0.79 2.65 3.80 3.47 4.01 4.49 5.00 5.43 6.08

All countries 0.32 1.23 2.80 5.91 10.04 12.76 13.62 15.59 18.25 21.48 25.19

*Penetration rates as percentage of TVHHs Data: Screen Digest

of cable in the past few years digital television in Europe: was the main pay TV distribution and will very probably continue France’s Canal Satellite was the system almost everywhere in to do so in the medium term.” first to introduce a full-scale Europe, except in Britain. commercial digital platform in This report comes more than April 1996. When digital “But half a dozen years later five years after the launch of television was introduced, cable things look very different. The 29 satmagazine.com feature

bulk of the growth in 27% and total (analogue and ADSL video-equipped homes, multichannel TV occurred digital) pay-TV levels will be well down on some other through the expansion in satellite 50.89% suggests the study. There estimates. Total pay-TV base will reception. This happened both in will be 8m high-speed cable be more than 80m homes by Central and Atlantic markets. modems in use by 2006, some 2006. Satellite growth outpaced cable 27.4m ADSL Internet in virtually all markets in recent connections, but only 48,000 years. From 1998 to 2002 respective rises were 76% and 22% in the UK; in more mature Germany the difference was still London-based Chris Forrester, a well-known significant, with a 13% increase broadcasting journalist is the Editor for Europe, for cable against 17% for Middle East and Africa for SATMAGAZINE. He satellite.” reports on all aspects of the industry with special Indeed, the report predicts a emphasis on content, the business of television massively healthy state of affairs and emerging technologies. He has a unique by 2006. Cable penetration will knowledge of the Middle East broadcasting stand at an average 33.24% (held scene, having interviewed at length the back only by laggardly operational heads of each of the main channels performance from Eastern and pay-TV platforms. He can be reached at Europe). Digital pay-TV [email protected] penetration will be better than

30 satmagazine.com Viewpoint Post-War Opportunities in

the Satellite Industry By Bruce Elbert

We are in the midst of a saw the dramatic development of major conflict of which the our industry during the ensuing duration is uncertain. It is one in decade. Projects during my which satellite technology plays Hughes years, like Westar, Palapa a pivotal role. Operation Iraqi A, SBS and Galaxy, provided the Freedom is proving the value of strong foundation for what today this industry’s services and is a $60 billion industry. Will it same data communication systems like none before it. We not be the same at the end of the products that give Wal-Mart a are giving the world live video current war? competitive advantage are accounts from Baghdad – not just inexpensive and capable enough voice – and we follow the The Middle East, in to aid in rebuilding schools and coalition forces as they speed particular, is the region in which medical treatment facilities. through the desert. Never before satellite communications already While these countries may have have the news channel “talking serves vital needs. The access to regional satellite TV heads” been able to interview innovative Thuraya GEO MSS programming, there is still the their counterparts who are direct system, based in the UAE, began opportunity to create instant “imbedded” witnesses, giving us operation in 2001 and is now infrastructure in terms of a the same perspective. employed by Inmarsat to offer its popular Regional BGAN “always targeted DBS service as well as In the background, mobile and broadband satellite communications provide voice, Once war is behind us, we can offer these video and data services to solutions so other nations in the Middle East coalition forces in the region as well as the news organizations may gain a better hold on our collective that make the coverage possible. future in the information economy. Satellites that were begging for users are filled to capacity to on” medium data rate Internet serve this market. high-speed access to the Internet. access service. Availability of C- If regulatory approval and But, what happens when the and Ku-band broadband VSAT importation rules can be action is over and, I believe, life products and satellite capacity abridged, I’m positive these returns to normal? In reflecting that will become available as applications would be widely upon my role as a hostilities end are going to distributed – and welcomed. communications officer during produce attractive opportunities the Vietnam conflict, with to businesses and improve Once war is behind us, we satellites playing only a small national and regional can offer these solutions so other role, I witnessed the acceleration infrastructure. I’m an optimist nations in the Middle East may of technology, along with and can foresee how satellite gain a better hold on our unparalleled expansion of the communications will provide the collective future in the U.S. economy at war’s end. key to rebuilding Iraq and information economy. I can’t When joining Comsat in 1969, I Afghanistan. For example, the count the inquiries I receive on 31 satmagazine.com Viewpoint my Web site from satellite and Bruce Elbert has over 30 years of experience in satellite telecommunications professionals communications and is the President of Application Technology who live and work in the Middle Strategy, Inc, which assists satellite operators, network providers East as well as Africa and and users in the public and private sectors. He is an author and Southern Asia. The pieces of the educator in these fields, having produced seven titles and solutions are right there in front conducted technical and business training around the world. of us – all we need to do is During 25 years with Hughes Electronics, he directed major transfer the know-how and technical projects and led business activities in the U.S. and implement the networks in those overseas. Web site: www.applicationstrategy.com places best able to apply them. email:[email protected]

32 satmagazine.com company spotlight SES GLOBAL Preparing for 2010

By Chris Forrester

Imagine a world with With this success revenues some 60,000 TV channels, have also grown, and bit by bit many of them in high- expected to reach $1.3 billion this definition, full interactivity year, with operating margins of direct from the set-top box around 82%. SES’ first director up to the satellite as well general was Dr Pierre Meyrat as full-service broadband who with commercial director supplied non-stop to a Marcus Bicknell crucially viewer’s PC. That’s Romain managed to persuade Rupert Bausch’s view. Bausch is Murdoch to launch an analogue president of SES Global, mini-bouquet of four channels the Luxembourg-based into the UK. Challenging as those satellite operator that is early days were, the company has now the world’s largest blossomed into a global satellite player in the business. SES operator under the direction of beams channels to millions Romain Bausch and his team. of viewers on behalf of BSkyB, Canal Plus and Star The past year or two, TV, as well as carrying however, has been tough for the channels for redistribution satellite industry. Revenues have been squeezed as operators’ by most of the USA’s cable Romain Bausch operators. margins fall under pressure. It was no . ES’ didn’t help matters given that about 40% of SES Global’s But today’s history could have been very revenues are paid in dollars. On a like-for-like different if its first satellite, Astra 1A (a GE basis, revenue declined at Astra and Americom by - AstroSpace 4000 model, with just 16 transponders 6.6% and -7.1% respectively. This year’s revenues and having a launch mass of only 1800 kg) had not for SES will be – at best –flat. successfully launched back on December 11, 1988, from Kourou in French Guiana. Then, the whole In this, of course, SES is not alone. The sector concept of Direct-To-Home (DTH) television, while as a whole is feeling the revenue pinch, and it being understood, was by no means financial always has to be stressed that any business assured. des Satellites (SES) has in barely 15 years achieving EBITDA margins around the 80% mark is grown from those fledgling first steps into a true still looking good compared to some within the global broadcasting behemoth, having 50%controlof hard-pressed broadcasting sector. AsiaSat which beams satellite entertainment over the whole of Asia, half of Sweden’s NSAB which A2H covers Scandinavia, Europe and Russia. Its own beams cover the whole of mainland Europe while But SES is not standing idly by. It is involved in its Americom division has footprints looking down three new initiatives, each designed to considerably on North and South America. Finally, it owns boost income over the long term. The first is in the almost 20% of Star One, which takes care of Brazil. USA, where it hopes this year to have in place 33 satmagazine.com

Americom-To-Home (A2H), a head-on challenge to the existing duopoly of Echostar and DirecTV. Dean Olmstead, president and CEO of SES Americom, says they will launch their A2H service this year come what may. Currently, the company is looking for FCC approval to exploit a Gibraltar/ UK orbital position at 105.5 degrees West, slap alongside Americom’s existing 105 deg West spot. The plan has created controversy and brought Americom into direct conflict with DBS operator DirecTV, which claims that the proposed SES transmissions would cause unacceptable interference to its millions of existing subscribers served from its DBS platforms located at 101 and 110.5 deg W. The concept of ‘free-to-air’ broadcasting, commonplace over Europe, Asia and the Middle East, is a new one to most Americans. Olmstead admits there is some confusion over the precise A2H offering. “So let’s be clear, A2H is our working name for a service that will go to the residential market. We are not new to this. We carried PrimeStar, which was the first satellite multi- channel video system in the US, which itself was amazingly successful given all the problems it had. It reached some 2 million subscribers. So we have been active in that segment, and have looked closely at what we can do to replace that business with something news going forward. We also want to exploit the expertise we have generated in Europe. We want to tap into the revenue possibilities flowing from a residential service.” At the end of March, Americom sold almost all its capacity on AMC-15 to Echostar. The deal calls for Echostar to lease (“long term”) effectively all of Americom’s upcoming giant AMC-15 craft, launching later in 2004 to 105 deg West. AMC-15 has 24 Ku-band and 12 (125 MHz) Ka-band transponders. Meantime, Echostar will test using Americom spare capacity. Potentially the deal is worth a fortune to Americom given the life of the satellite, although it will be interesting to see to what extent the deal stymies Americom’s own plans to launch a broadband service from the same position. Echostar currently operates from 110° and 119° West, and certainly the 100° position is perfectly placed for joint reception of 105° traffic, with an additional LNB in place. Echostar already have dishes preconfigured with multiple LNB’s satmagazine.com

SES Time Line 1985 SES Created competition and more choice for the consumer,” says Bausch. 1988 Astra 1A launched A2H also represents a huge investment for SES 1989 Starts broadcasting Global. “We will have AMC-15 in place, and we 1991 Second satellite launched have a procurement for AMC-14, AMC-16 is a ground spare also under construction and we are 1996 Starts digital transmissions also looking at an RFI to find out what the industry 1998 Opens 2nd orbital position might do for a high-capacity all Ka-Band satellite. If broadband takes off then we want to be able to put 1999 Buys 1/3 of AsiaSat this in place as a next-generation bird perhaps 2000 Buys half of NSAB three or four years from now,” says Olmstead. 2001 Buys GE Americom 2002 Forms SatLynx Waiting List 2003 Announces SatMode Olmstead says that there’s a waiting list of channels looking for suitable carriage, frustrated because of spectrum shortages and not having the muscle to find slots on DirecTV or Echostar’s DiSH suitable for their multi-position orbital spots. system. “We are also different to DirecTV and Americom’s adjacent 105.5° spot (the Gibraltar/UK Echostar in our business model. A channel on filing) is still subject to FCC approval. DirecTV or Echostar never sees the end subscriber. Romain Bausch says “The Echostar agreement You have to cut a deal with [DirecTV or Echostar] strengthens our own position because even though and maybe you’ll get a few cents, a few crumbs the deal is for a large slice of capacity, there is from their table on some sort of revenue share. even more spectrum available [to us] at 105 deg W, What we want to do is simply to sell [channels] in the Ka-band, in the BSS band at 105.5 once co- capacity, at fair rates, and an opportunity to carve ordination between Gibraltar, the UK and the US out their own destiny or perhaps combine with has been achieved. There is also the opportunity of others to create their own platform. In other words A2H launching satellites to other orbital positions, we give the channel much more control, much for example to 85 deg West, the old Primestar more flexibility. Potentially we might end up position, which is an excellent spot from which to operating in the retail sector, but there are also cover the Continental US.” other people operating very well in that area which could help a channel out. We have a number of “A2H is not dependent on reaching agreement intermediaries already and they could handle on 105.5 deg W. This is important. There are no distribution and become more meaningful. They frequency co-ordination issues for us in Ka, Ku or want this role, but wanted a suitable technical FSS at 105 degrees. It is only the BSS frequencies at solution and we provide this. They could supply 105.5 that are subject to negotiation. There’s now the market with a suitable ultra low-cost dish with another meeting planned for May, with the parties a twin-LNB that would be good for DirecTV and us, agreeing on the criteria to be used to measure that or Echostar and us, or all three.” there is no powerful interference and I believe from the Americom point-of-view there is an “We are optimistic about free-to-air, perhaps openness to discuss power levels that the FCC more optimistic than the market,” admits Olmstead. would feel comfortable with and in order to be “But the market has absolutely no means of trying assured that interference was not an issue. We are that model out in the US. There is no model which sensing a more pragmatic view of events, at least today allows someone to launch a nationwide free- from Echostar, and while that might help us, the to-air channel. You cannot rent a channel on agreement might provoke DirecTV. But it is also Echostar. So few have thought of it, and besides important to see what value the FCC gives to the the advertising isn’t sold this way. This is a task for fact that by adding capacity there will be more 35 satmagazine.com

SES’ EBITDA* Margins Division 2002 2003 us, which we recognise, that we must Margins Margins educate the market. Free-to-air is an interesting concept that we think will grow achieved forecast over time.” Astra 79% 82% On the question of costs for access Americom 79% 81% Olmstead stresses that 105 deg West is prime real-estate, “So I would not expect our rates AsiaSat 81% 81% to be any less than elsewhere in the *EBITDA: Earnings before interest, taxation, Americom system. Today, if you want to lease Ku-band FSS capacity at prime slots depreciation and amortisation you are probably looking at $160,000- Data: Bear Stearns $180,000 a month. But we consider this to be the best real estate. On the other hand, timetable,” says Bausch. It’s probable that France’s penetration rates are going to be very low to start Canalsatellite will be the first customer. with and we intend working with content suppliers and platform aggregators to recognise this and If SES can bring this first-generation SatMode work with them to help them get their business off device to the market for $50 or less, then by the the ground.” time the second-generation is in manufacture – and installed directly into set-top boxes – the technique will have been perfected. Five years from now SES SatLynx/SatMode hopes that the living room set-top box will be a Then there’s two-way satellite. Bausch sees two standard method of interacting with the TV set, via methods of tapping into this potentially lucrative satellite. SES has always been at the leading edge market. SatLynx is a joint-venture with of satellite technology, and Bausch promises this Gilat designed to supply broadband two- will continue. way connectivity directly between users computers In Europe, SES deliver well over 1000 channels and the satellite. Given that huge swathes of PC to some 91m homes. In Asia, AsiaSat (as we go to users are never going to be able to hook into a press) is counting down the days to the launch of cable-supplied service, or DSL telephony service, AsiaSat 4, boosting dramatically the number of satellite is a natural solution. AsiaSat is also actively channels on offer and ready to serve markets in involved in two-way broadband with SpeedCast, a India and China. In the USA, Americom is carving company in which it holds 45%. out similar new businesses, having already won a Broadcasters also seek connectivity. So far TV large portion of cable’s supply business. Perhaps stations have satisfied this by making sure a the 60,000 channels future isn’t so far away, after telephone line is connected into the set-top box all!1991 Second satellite launched. and this allows viewers to ‘play along’ with shows like ‘Who wants to be a millionaire?’ and ‘Big London-based Chris Forrester, a well- Brother’. Unlike full broadband functionality, which known broadcasting journalist is the needs expensive terminals to operate, SatMode is a Editor for Europe, Middle East and spectacular concept. It uses the power supply in Africa for SATMAGAZINE. He reports the set-top box to send a 0.5 Watt signal (at up to on all aspects of the industry with 64 kb/s) directly back to the satellite, via a special emphasis on content, the modified LNB. SES says it will have the first units in business of television and emerging commercial production by early 2005, and is technologies. He has a unique already demonstrating prototypes. “All the knowledge of the Middle East broadcasting scene, components are readily available in the market, at having interviewed at length the operational heads of prices no more than US$50, which is the overall each of the main channels and pay-TV platforms. He target for the system. Our industrial partners are can be reached at [email protected] going full speed and we are confident of hitting our 36 satmagazazine.com satmagazine.com featured event

International Satel- lite & Communica- ISCe 2003 Overview tions exchange (ISCe) Conference and Expo

“ Where Innovative Satellite Technolo- gies and Business Meet ” Long Beach Convention Center - Long Beach, California August 18 – 21, 2003

SES Americom CEO Dean Olmstead addressing ISCE 2002.

International Satellite & Communications exchange (ISCe) Conference and Expo is the premier West Coast annual event that highlights the innovation and use of satellite technologies and services in the global commercial, government and military sectors. The event, billed as the place “where innovative satellite technologies and business meet,” will be held August 18-21, 2003 at the Long Beach Convention Center in Long Beach, California.

ISCe brings together the Satellite Industry Association decision-makers, engineers, and (SIA), the premier trade sales and marketing professionals organization representing satellite from the leading satellite manufacturers, operators, and operators, manufacturers, service launch service providers in the providers and users around the commercial space sector. world. Co-hosting ISCe 2003 are Hannover Fairs USA, Inc., one of “The satellite sector is at an the world’s largest and most important crossroads, facing a active tradeshow organizers, and continued economic slump, 37 satmagazine.com featured event

industry consolidation and political unrest. Companies have to develop smart business strategies and execute flawlessly,” said Richard DalBello, president of SIA. “ISCe 2003 will be dedicated to providing attendees the information and relationships they need to not only survive this downturn but be poised to thrive when opportunity allows.” This year’s conference will include several sessions on homeland and national security, taking a close look at the role the satellite industry plays during this time of international political turmoil. The speaker line-up includes several high-ranking officials from both the public and private sectors who will share their firsthand experiences in developing and employing satellite technologies and services that drive global assurance initiatives. The exhibit floor will host a balanced mix of industry providers, operators, manufacturers and suppliers from the commercial and government sectors, featuring product demonstrations and explanations that provide a firsthand look at the emerging technologies and services driving the next phase of innovation in the satellite industry. Attendees can count on gaining valuable knowledge of the breadth and depth of available offerings, while exhibitors will benefit from face-to-face interaction with key decision makers from around the world. ISCe is an official CeBIT event and will feature a hands-on satellite technology forum, satellite training workshop, one-on-one interviews with top industry executives, a complete exhibition program (including small business pavilion), matchmaking program, luncheon presentations, awards ceremony and a full spectrum of networking events. Key business sectors to be addressed at the conference include: information and communications, navigation, imaging and remote sensing, and broadcasting.

2002 Highlights The turnout for ISCe 2002 was strong, and this year’s show promises to be an even bigger hit. According to Dean Olmstead, president 38 satmagazine.com featured event

and CEO of SES AMERICOM, “I real-world cases, presented by Future was most impressed with the forward-looking speakers driving timeliness of the sessions, the the next phases in the innovation · Satellite Remote Sensing caliber of speakers and overall and use of satellite technologies for Homeland and National quality organization of the and services across the public Security and private sectors. inaugural conference. We’ll This year’s agenda features definitely be back!” “With homeland security and industry leaders such as Asia Nearly 800 people attended global assurance as top priorities Satellite Telecommunications, last year’s inaugural event, and on the international agenda, the Boeing, Booz Allen Hamilton, more than 50 exhibitors satellite industry is more the California Space Authority, participated. More than 30 important than ever before,” said Cisco Systems, the FCC, Eutelsat, percent of those in attendance Art Paredes, vice president and the Global VSAT Forum, Hughes were among the ranks of senior general manager of West Coast Network Services, Intelsat, management, with marketing and operations for Hannover Fairs Lockheed Martin, the National sales professionals accounting for USA. “ISCe 2003 is the ‘must- Aeronautics and Space another almost 40 percent. attend’ event for companies and Administration (NASA), the Attendees and exhibitors government leaders who need to National Rural included a balanced cross-section know about the latest Telecommunications Cooperative of services, information and developments in leading-edge (NRTC), the National Oceanic communications systems technologies, dual-use and Atmospheric Administration companies, navigational imaging applications and regulatory (NOAA), PanAmSat, the Scitor and remote sensing companies, policies. This venue is where Corporation, the Space Enterprise and broadcasting and broadband innovative satellite technologies Council, Space Systems Loral, the services organizations. and business meet, putting Satellite Broadcasting & attendees a step ahead of their Communications Association In the words of Jan Molvar, competition.” (SBCA), SES AMERICOM, business group lead for Scitor Thuraya Satellite Corporation, “ISCe 2002 was The following are just a few Telecommunications, and the extremely valuable and of the topics that will be U.S. Chamber of Commerce — enjoyable. The venue and the addressed at ISCe 2003: among many others. amenities were ‘first cabin’ and · Homeland Security and the proceedings exceptional. In Global Assurance a few days, I was able to gain Value-Added ISCe 2003 Pro- excellent insight into the · Dual-use Applications of grams spectrum of issues facing Satellite Technologies The first day of ISCe 2003 government and commercial · Government Services will feature a series of three enterprise.” and Opportunities unique value-added programs designed to further increase the · Satellite Broadband & return on investment in attending Insights into ISCe 2003 Broadcasting the show. The issues facing the satellite · Global Navigation community have only intensified The first, hosted by the SIA Opportunities over the course of the past year, and SBCA, is “Getting Up to Speed: A Satellite Training and ISCe 2003 promises to · Regulatory and Policy WoThis management-training provide attendees with in-depth Issues, Including Export Control insight into the state of the seminar is targeted at new industry and tangible take-aways · Global Alliance satellite industry professionals to improve business operations. Strategies and those trying to keep up with the ever-changing high-tech The sessions will be grounded in · The Launch Industry 39 satmagazine.com featured event

ISCe 2003 Registration Registration is now open for ISCe 2003. The full conference program is available for a discounted rate of $995 before April 30, after which the standard rate is $1,195. Government and academia discounted registration is available, with valid ID, for $395. A one-day conference pass is available for a discounted rate of $495 before April 30, after which the standard rate is $595. Exhibit space is still available marketplace. This satellite and solutions for innovating, in 10’ increments at a cost of $31 industry primer is a implementing and improving per square foot. comprehensive overview of the industry-specific applications of satellite marketplace with a leading-edge satellite To register for the event or unique focus on the consumer technologies. for more information on satellite services industry. The attending or exhibiting at ISCe course includes a history of the The third special session, 2003, visit www.isce.com or call industry, C-Band and DBS “Inside Scoop: One-on-One 310-410-9191. hardware information, with Satellite Industry programming, legislative and Leaders,” hosted by Edelman, regulatory issues, satellite brings together top satellite consumer market research executives from around the statistics, commercial satellite world to provide personal operations and the global launch insights and field questions from industry. the media and conference attendees. The session will ,” is hosted by the Global engage four individuals VSAT Forum and will focus on representing different sectors and the role satellite technologies varying viewpoints, each play in three unique vertical presenting a five-minute markets: transportation, oil and overview of his or her company gas, and entertainment. This and region. Each will then program promises to provide answer questions for a full forty valuable information and unique minutes, addressing the insight into the types of services challenges and opportunities and technologies that these key most pressing in today’s global vertical markets need to improve satellite industry – unscripted efficiencies and protect their and at the audience’s discretion. assets. Today’s leading experts in the user communities and satellite industry executives will discuss requirements, challenges

40 satmagazine.com

Exec-Moves...continued from p.19 a stellar 34-year career. GlobeCast Chairman to GlobeCast, Ms. Sanchez was will be responsible for and Chief Executive the Director of Sales, Latin a $2.3 billion business Officer Christian America for L3 Communications- with over 8,200 Pinon.GlobeCast - a Satellite employees in five subsidiary of France geographic regions. Telecom - is the Transmission Systems; and, He will direct a broad world's largest previously, Senior Manager, array of information provider of satellite Ibero-America Sales for General technology business transmission and Instrument Corporation. areas with capabilities production services GlobeCast is the global in system engineering for professional leader in satellite transmission and integration, Stanton D. Sloane broadcast, enterprise services for professional software development, multimedia and Internet content broadcast, enterprise multimedia architectural definition, and large- delivery. and Internet content delivery. scale information systems design. As CEO of GlobeCast Asia, Operating 16 offices and teleport DS as its executive vice president earth stations throughout Europe, in February 2000. Previously he Ms. Sanchez will be responsible for overall direction and America, Asia, Australia, the had been senior vice president, Middle East and Africa, Network Systems Development, management of the company's operations in the Asia Pacific, GlobeCast offers the complete Lockheed Martin Global range of satellite broadcast Telecommunications (LMGT) since which comprises a master control center and access to teleport solutions, including TV channel 1998. Sloane had served as vice distribution. president, Communications LMGT. facilities in Singapore, and liaison offices in An 18-year Lockheed Martin/ New Delhi GE Aerospace veteran, Sloane’s and Tokyo. previous assignments included Based in New Medium vice president, Radar/Sensor ensor Singapore, A that brings Systems business in Syracuse, Ms. Sanchez New York. He also held several will assume leadership positions in the the position your Content Business Development arena at the end of including overseas assignment in April on a Whole Greece, England, and Australia following the where he served as the first CEO departure of Different Level of a Lockheed Martin in-country Doug The advantage of an electronic magazine is that you can joint venture. Triblehorn. navigate the content through various hyperlinks that will take you all over the magazine and beyond. The text and Darby Sanchez Ap- Darby Sanchez graphics and even advertising can be linked to other articles pointed as Chief Execu- joined and even websites. The electronic format is not limited by tive Officer, GlobeCast GlobeCast in space constraints like a print publication--providing you with Asia 1999, as the more content. Vice Subscribe to SATMAGAZINE now–IT’S FREE! Paris, 2 April 2003/Satnews President, Go to http://www.satmagazine.com to register and enjoy Daily/ — Leading satellite Latin a whole new information experience. broadcast provider GlobeCast America Published monthly by Satnews Publishers announced today that Darby Sales based 800 Siesta Way, Sonoma, CA 95476 U.S.A. Sanchez has been appointed as Phone (707) 939-9306 / Fax (707) 939-9235 at GlobeCast E-mail: [email protected] Chief Executive Officer of America in Website: www.satmagazine.com GlobeCast Asia, according to Miami. Prior

41 satmagazine.com vital stats Pas and SES are world’s “video titans”

Broadcast TV channels Transponder fleet As of Feb 2003 Pay TV Free TV Total stable % used for video 36MHz trx. distribution PanAmSat 1,823 303 850 33% SES Global 1,085 603 431 81% Eutelsat 867 541 382 59% Loral Global Alliance 359 217 450 19% Intelsat 214 132 913 6% New Skies 129 89 189 17%

Data: Vista Advisors, Lyngsat, satellite operators

Vista Advisors, the Paris- based consultancy, say there ADVERTISERS' INDEX are currently about 10,661 channels distributed by Agile Communication Systems 14 www.agilecoms.com satellite worldwide, of which Andrew Corporation 38 6,362 are distributed by multi- www.andrew.com regional satellite operators. EMS Satellite Networks 30 www.emsatnet.net PanAmSat and SES Global are Global Link Productions, Inc. 13 the world’s “video titan” says www.satnews.com/globallink Vista. ISCe 2003 17 www.isce.com MICROSPACE 21 www.microspace.com SES Global 34 www.ses-global.com W.B. Walton 32 www.de-ice.com

42 satmagazine.com country profile: NIGERIA

Basic Facts: Location: Western Africa, bordering the Gulf of Guinea, between Benin and Cameroon Area: 923,768 sq km customers, and Lanlate is used for data traffic. Population: 129,934,911 There are also 19 licensed domestic satellite earth Telephones - main lines in use: 500,000 stations (DOMSATs) located in state capitals. These operate (2000 est) on three leased Intelsat transponders (two Atlantic Ocean, Internet Service Providers (ISPs): 11 (2000) one Indian Ocean) for national TV coverage. In addition, Telephones - mobile cellular: 200,000 (2001) there are 143 INMARSAT terminals in operation in the country. : AM 83, FM 36, shortwave 11 (2001) Television broadcast stations: 3 (the Commercial Opportunities government controls 2 of the broadcasting Satellite operators can benefit from the restructuring of stations and 15 repeater stations) (2002) the telecom market: An SNO license was awarded to Globacom in August 2002, which entitles the company to Internet users: 100,000 (2000) provide international long distance services. In the absence of submarine fibre-optic cables, satellite presents the only means to carry their international traffic. Market Background In the course of deregulation, four mobile operators The Nigerian telecommunications market is far from were licensed in 2002 providing opportunities for satellite developed. By 2001, Nigeria had only 500.000 main fixed operators and VSAT manufacturers: Detecon International lines in service, with a fixed-line penetration of only 0.4%. expects the Nigerian mobile operators to carry more voice traffic than their fixed-line counterparts. Where mobile The telecom sector is showing signs of a recovery, with operators have international gateway licenses, they will suck the government introduction of competition in the sector in up excess satellite capacity. Where they do not have 2002 and the subsequent licensing of Private international licenses - like in the Nigerian case - they must Telecommunication Operators (PTOs), local and national switch through companies that have international licenses. long distance carriers, a Second National Operator (SNO), And they in turn must increase their satellite capacity. and four mobile operators. MTN Nigeria, for example, uses the satellite network of But there is still an urgent need to expand the telecom GS Telecom to provide its international connectivity using infrastructure. Detecon International, a German consultancy PanAmSat and New Skies, and also to carry GSM traffic specialised in telecoms, sees the Nigerian telecom market between mobile switching centres (MSCs) in Lagos, Port as the fastest growing in Africa. Harcourt and Abuja. In other words: The need of mobile On top of that, the geography is vast, the rollout of fixed operators to backhaul traffic from remote base stations to networks is expensive, and the former incumbent, NITEL, central MSCs or between MSCs is an additional driver for has infrastructure and service problems. This is promising satellite demand in Nigeria. MTN is pursuing network for satellite operators, VSAT service providers and expansion to the eastern and northern regions of the country. manufacturers. However, most of the satellite capacity is used for Satellite Communications Activity domestic connectivity rather than international traffic. There are numerous PTOs licensed in Nigeria using wireless local According to the Nigerian Communications Commission loop (WLL), fixed wireless access (FWA) or VSAT (NCC), there are five primary licensed earth stations in connectivity. Nigeria. They are in Lagos (Victoria Island), Lanlate, Kujama, Source: CIA World Factbook, Detecon International GmbH Kaduna and Enugu. The stations at Lagos, Enugu and (www.detecon.com), Global VSAT Forum (www.gvf.org) Kaduna are digital and are used for international traffic; Kujama is used as a VSAT hub mainly to corporate 43