Satellite Executive Briefing 1 February 2013

Industry Trends, News Analysis, Market Intelligence and Opportunities

Vol. 6 No. 2 February 2013

The Earth Station Business

by Dan Freyer

T he large antenna systems manufacturing and

earth station integration business has changed

in the last several years. While the number of

original equipment manufacturers (OEMs) supplying

smaller antennas, (e.g. under 5 meters), including

specialized systems for aeronautical and military

applications, continues to grow,

consolidation has narrowed the

field of large antenna makers.

Two majors, ASC Signal and

General Dynamics SATCOM

Technologies lead the pack today.

Nevertheless, the business of sup-

plying complete turnkey earth

station systems, of which the an-

tenna and RF chain are a key

component, remains a competitive

market.

A host of system integrators

around the world design, build,

and install earth stations incorpo-

rating antenna and RF gear and

baseband systems for end-users,

acting as distributors for antenna

manufacturers in different regions and market seg-

ments. These include companies like GlobeComm

Systems, Satcom Resources, Encompass Digital

Systems, Huawei, ATCi, and many others.

“With the global economy the way it is, there is in-

creased price pressure which prompts equipment

manufacturers like us to apply even more of our re-

search and development to reducing production costs

and increasing performance,” says Tim Shroyer,

Chief Technology Officer, General Dynamics SAT-

COM Technologies.

Keith Buckley, CEO of ASC Signal agrees, adding

“The industry has become more competitive, cost

sensitive, and diverse in terms of technical require-

ments.”

Cost competitiveness

also means that more

technical skills need

to be found under

one roof than in the

past.

“For instance, your

typical installer must

not only have a full

understanding of the

baseband applica-

tion, be capable of

building a concrete

foundation and en-

suring the transmis-

sion facility has the

proper HVAC design, but they’re now also expected

to rack, stack and test the RF equipment, install, test

and commission the antennas, have a full command

of TCP/IP Networking and Routing, be fluent in

Linux, and be prepared to do installations in almost

anywhere in the world,” says Buckley.

Continued on page 4

What’s Inside

From the Editor…...3

Show Report: CES 2013 By V. Labrador…….8

Opinion: What is a Satellite Service-Business Really Worth? By Robert Bell…....11 Events Calendar....12 Industry Briefs…...14 Market Briefs……..20 Featured Event: CABSAT 2013 by M. Jarrold….….24 Stock Index……….27 Vital Statistics…....28 Advertisers’ Index.28

The current cost-cutting environment makes the relationships between sys-tems integrators and their prime suppli-ers more important than ever. ATCi is unique among antenna manufacturers in that it is both a manufacturer and a sys-tem integrator. Pictured here is ATCI’s Simulsat 5B antenna. (photo: ATCi)

February 2013 2 Satellite Executive Briefing

Satellite Executive Briefing 3 February 2013

EDITORIAL Virgil Labrador Editor-in-Chief virgil@satellitemarkets.com Elisabeth Tweedie Associate Editor elisabeth@satellitemarkets.com Contributing Editors: North America: Robert Bell, Bruce Elbert, Dan Freyer, Lou Zacharilla Latin America: B. H. Schneiderman Europe: Martin Jarrold, London Jan Grøndrup-Vivanco, Paris Roxana Dunnette, Geneva Asia-Pacific: Peter Galace, Manila Tom van der Heyden, Hong Kong Chris Frith, Singapore, Riaz Lamak, India ADVERTISING For Advertising enquiries send an

e-mail to:

sales@satellitemarkets.com

Satellite Executive Briefing

is published monthly by Synthesis Publications LLC and is available for free at www.satellitemarkets.com

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©2013. No part of this publication may be reprinted or reproduced without prior written consent from the publisher.

From the Editor

A t the CES held in Las Vegas last month, 4KTV was cer-

tainly one of the highlights (see our show report on page

8). At the same time Eutelsat launched its first 4K TV

channel which was followed by several announcements for new

channel launches in Japan and South Korea later this year. Re-

search firms such as NSR and NPD DisplaySearch are already

projecting healthy growths for 4K TV. The next few years would be crucial

for 4K TV to develop and we’ll continue to watch over that space.

Meanwhile, the mood was strikingly different at the AFCEA West 2013 show

in San Diego last month. It’s not a very good sign when one of the keynote

speakers, the Vice-Chairman of the Joint Chiefs of Staff , nearly did not make

it due to the restrictions on travel budgets. The Admiral may be half-joking

when he made that comment in his speech, but the budgetary cuts in the mili-

tary sector are real and are already starting to take effect. Moreover, a study

was just released by ReportsnReports.com (see page 20) that military budget

cuts will continue on a global basis through 2020. The theme of the West

2013 show was “Pivot to Pacific,” to highlight the shift in resources to the

Pacific theater. However, speakers clarified that instead of a “pivot” it was

more of a “re-balancing” to the Pacific, which means that there will be no

major increases in spending in the foreseeable future.

The military satellite market will still be an important segment for the indus-

try. But it may require more innovative approaches to sustain the mili-

tary satellite market in this decade.

Virgil Labrador Editor-in-Chief

Is 4K TV in our Future?

Check out our new iPad,iPhone and Tablet Friendly site

at www.satellitemarkets.com

February 2013 4 Satellite Executive Briefing

Cover Story

The Earth Station Business...From page 1

The current cost-cutting environment

makes the relationships between sys-

tems integrators and their prime suppli-

ers more important than ever. Respond-

ing to integrator and customer demands

for example, ASC is delivering prod-

ucts that continue to simplify the entire

earth station design and implementa-

tion, such as its Next Generation Con-

troller (NGC), which can control and

monitor essentially all components in

the transmission system, so integrators

can rely on a single piece of equipment

instead of having to design and build a

rack full of gear. The goal, says Buck-

ley, is “to equip all of our systems inte-

grator partners with as many tools as

possible for them to ensure successful

design and installation of transmission

systems.”

MARKET PLACE CHALLENGES The RFI Equation and Satellite Operating Standards

Perhaps the biggest challenge for both

satcom system integrators as well as

earth station OEMs is to provide the

same or higher levels of functionality at

as low a price as possible. Part of the

reason for this, says Gary Hatch, CEO

of antenna OEM and integrator ATCi,

is that “New transmission methods such

as DVBS2 have put more pressure on

delivering better antenna tolerances and

performance criteria to meet new link

budget requirements.”

Another contributing factor is that sev-

eral years ago, satellite operators went

through a period of reduced technical

requirements verification. They did so

in an effort to reduce their own costs in

operating the satellites as well as reduc-

ing their customers’ compliance costs.

“The pendulum has swung back after

interference incidents increased signifi-

cantly,” according to Genaral Dynam-

ics’ Tim Shroyer.

Now organizations like the GVF are

assisting in developing industry stan-

dards. This has multiple benefits for

buyers of earth station equipment, as

well as equipment manufacturers, inte-

grators, and satellite operators.

“Under the evolving standards, the real

operating requirements are better de-

fined so there is much better clarity in

both what is needed and what earth sta-

tions are capable of providing,” says

Shroyer. “With defined standards the

industry as a whole can continue to pro-

vide highly reliable communications

service at the lowest total cost.”

Tolerance for Higher Frequencies

Demand for Ka-Band systems from

both government and civil satcoms

customers has introduced new technical

challenges, when compared with the

relatively lower frequency traditional

(C/Ku and MSS band) requirements.

The challenge is being met with tight-

ened design and production tolerances

as well as more advanced antennas,

power amplifiers, and frequency con-

verters.

As manufacturers scramble to keep ad-

vancing the state-of-the-art in Ka-band

earth station design, there is significant

pressure for the lowest possible price

for earth station hardware.

Antenna performance is not the only

challenge. “The integration of higher

frequencies and higher code rates (such

as new DVBS3 technologies) will put

added pressure on proper integration

disciplines,” says Gary Hatch, CEO of

ATCi. “The systems must be easy to

operate as most customer installation

are not traditional RF-trained engineers.

They are generally more IT and video

people.”

For systems integrators, keeping the

hard technical skill set fresh, relevant,

and focused, while simultaneously hon-

ing the soft skills of building relation-

ships on a global scale are as important

as ever. This includes having the abil-

ity to navigate time zones, cultures,

governments and politics, and still be

able to translate a customer’s wants and

needs to compete on an international

stage. The same challenges apply to

equipment distributors.

“In a lot of ways, it does not take much

to become an integrator; however, it

takes a lot to remain an integrator,”

explains Buckley. Those integrators

able to sustain themselves in a very

competitive segment of the industry

usually have to have a solid technical

background and often become special-

ized in some aspect of the industry.

GlobeComm Systems is a case in point.

Key market challenges in the next few years for RF/antenna gear

OEMs and integrators include:

Increased pricing pressures amidst demand for higher

functionality

Demand for better operating specifications and better per-formance, driving in part by radio interference challenges

faced by satellite operators.

Demand by users for increased integration of subsystems

under a single roof, and increased technical expertise

Uncertain U.S. government budgets and global economic

conditions

Demand from integrators for better design and installation

tools

Satellite Executive Briefing 5 February 2013

February 2013 6 Satellite Executive Briefing

“Today more than ever it is critical to

understand the customer’s application,”

says Tom Coyle Senior Vice president

& General Manager for GlobeComm

Systems. ”The arrival of 100 GBps-

plus Satellites creates a host of new

opportunities along with technology

challenges in ground systems. Our fo-

cus is staying on the leading edge of

technology in offering complete inte-

grated solutions for our customers.“

Uncertainty in US government budgets

and fluctuating global economic condi-

tions is another issue (see Satellite

Executive Briefing, October 2012, page

25). “A key element of our overall stra-

tegic approach to address the challenge

is maintaining a government/

commercial balance, along with market

segment diversity,” says GlobeComm’s

Coyle.

GROWING SEGMENTS

Industry studies have forecast huge

growth in satellite launches that will

deliver staggering amounts of capacity

to orbit, over the next 10 years, includ-

ing Ka-Band and next-generation

broadband systems (See Satellite

Executive Briefing, Nov. 2012, cover

story “Next-Generation Systems,” by

Dan Freyer). Earth station builders say

that even if these projections are only

fractionally correct, the growth will be

much higher than it has been over the

last few years.

What segments do OEMs and integra-

tors expect to grow the most? Many

industry observers had thought that

Direct Broadcast Satellite (DBS) sys-

tems were largely “built out” world-

wide, so there would not be additional

growth. In fact, demand surpassed

expectations.

“We are seeing continued growth in

DBS and FSS broadcast applications as

video continues to be the biggest con-

sumer of satellite transponder capacity

in all continents. New high power Ka-

Band satellites are not only supporting

this extensive video broadcast market

but are increasingly designed to support

high performance spot beam applica-

tions more suited to internet and high

rate data connectivity. We expect con-

tinued growth in those markets for

some time to come,” says General Dy-

namics’ Tim Shroyer.

IP applications are also filling integrator

pipelines. For example, integrator ATCi

forecasts continued requirements for

turnkey gateway systems for many dif-

ferent forms of IP broadband and DTH

hub systems.

Multi-band, mobile and on-the-move

communications is yet another segment

of heightened market demand. Prime

antenna manufacturers believe that

growth in sophisticated, agile terminals

will be significant as requirements in-

crease for mobile communications, both

in the commercial and defense seg-

ments. For example, “ASC Signal is

continuing to expand our mobile prod-

ucts, including our latest 2.4m Nomadic

antennas that cover everything from L-

to Q-band in anticipation of and re-

sponse to this demand,” says CEO

Keith Buckley.

Systems integrator, GlobeComm Sys-

tems shares a similar view. “We expect

to see continued growth of Ka Band and

Multi-band Antenna solutions to sup-

port the demand for very high data rates

while maintaining high quality of ser-

vice,” says GlobeComm’s Coyle. “We

also expect continued growth in Cellu-

lar Backhaul for rural services.”

Customer Focus

Putting more usable transmit power in

smaller, lower utility power drawing

packages, getting more bits per carrier,

and helping operators simplify the man-

agement, maintenance and operation of

ground facilities are key areas of focus

for product enhancements that drove

sales growth in the past year.

“For ASC Signal, it was definitely our

antennas combined with our NGC con-

troller system. Our customers continue

to find ways to capitalize on the innova-

tive features we’ve built into the NGC

to make earth stations more flexible and

functional. Growth in our antenna

products using our NGC was well in

excess of 30% over 2011,” according to

Keith Buckley.

Cover Story

Responding to integrator and customer demands ASC is delivering products that continue to simplify the entire earth station design and implementation. (photo courtesy of ASC Signal)

Satellite Executive Briefing 7 February 2013

Singapore-based telecommunications

consultant Jonathan Ng, who has been

involved in earth station projects in the

Asia/Pacific, agrees that antenna control

units for tracking both GEO and non-

GEO satellites is a growth segment,

although some of that business may be

for earth station upgrades.

Systems integrator ATCi has been win-

ning new business in the video segment.

“Our greatest growth, at 50 percent, is

in our low cost DVBS2 MPEG4 HD

FlyAway systems,” says ATCi CEO

Gary Hatch. “We package our Fly-

Away Systems with 4G/3G MPEG4

HD transmission system to provide

unequaled access to remote require-

ments.”

GlobeComm also expects continued

robust demand for high power amplifi-

ers and hub components to support de-

mand for broadband networks. “We see

continuing growth in the demand for

Ka Band antennas and amplifiers for

smaller aperture transportable solu-

tions,” according to Globecomm’s

Coyle.

Product R&D Efforts Worth Following

Manufacturers and integrators foresee

gains from technical developments un-

derway in a number of areas.

As a solutions provider to broadband

and government customers, Globe-

comm’s Coyle is excited about new

products coming out such as

“Multiband Integrated RF/IF packages

to support lightweight terminals, and

high power, low distortion amplifiers to

support today’s demand for high data

rates.”

Solid state power devices, in GaAs and

GaN, are steadily improving and able to

support higher power levels and higher

frequency bands all the time. “We are

using many of those devices today in

our SSPAs,” says General Dynamics’

Shroyer, “but there are still some bands,

like 18 GHz DBS, which can only cur-

rently be satisfied with vacuum tube

technology.”

Another area is advances in Digital Sig-

nal Processing, such as the Software-

Defined Radio efforts that have been

impacting terrestrial communications.

General Dynamics has been involved in

bringing advanced SDR technology to

DoD terrestrial communications sys-

tems, according to Shroyer. “We are

using that technology in some compara-

tively narrowband satcom applications

today, and in not too many years SDR

and DSP advances will likely reach

bandwidths where they will satisfy

broadband satcom requirements. That

will likely be one of the next big ad-

vances in satellite earth station technol-

ogy,” he predicts.

Enhancements in component materials

is another development. ASC Signal is

looking at the introduction of cost-

effective carbon fiber, which potentially

allows for some very innovative ideas

for earth station antenna design, accord-

ing to the company.

In a recent World Teleport Report,

“Best Practices in Buying Antenna/RF

Chain” (https://worldteleport.site-

ym.co m/store /view_product .asp?

id=1450521), teleport buyers of large

antenna systems reported that in recent

years the antenna control systems have

significantly improved.

ASC Signal is one of several manufac-

turers that have made strides in this

area. “We have taken a simple posi-

tioning system and provided broader

control to essentially all vital aspects of

a typical ground station in a cost-

effective way, while simplifying the

overall system design for integrators

and users alike,” explains ASC Signal

CEO Keith Buckley.

On Axis

The large number of new and innova-

tive satellite payloads entering service

in 2013 and beyond mean significant

opportunities for companies that can

deliver supporting ground infrastruc-

ture.

Antenna systems providers continue to

focus development efforts on reducing

the cost, while increasing the perform-

ance of earth station hardware and sys-

tems.

For buyers, the capital expenditures to

implement an earth station can be sig-

nificant. Mistakes can be expensive to

overcome both in terms of direct costs

and competitive position.

In this changing environment particu-

larly, discussions with key antenna

system suppliers and partners about

your requirements well in advance of

the system design can help you reduce

risk and cost.

Cover Story

Dan Freyer is the principal of AdWavez Marketing, a marketing agency serving the satellite industry. For over 20 years, he has helped top satellite manufacturers, operators, service providers, and equipment suppliers develop their businesses and brands. He can be reached at dan@adwavez.com

“...The industry has become more competitive, cost sensitive, and diverse in terms of technical requirements…” —Keith Buckley, CEO of ASC Signal

February 2013 8 Satellite Executive Briefing

The CES also gives us a glimpse of what’s in store for the

future: 4K Television or what is also referred to as “Ultra

HD”—which was highlighted by several manufacturers in-

cluding Samsung Sony, Toshiba and LG. 4K TV promises

to have 4 times the pixels of 1080p High Definition TV. Not

to be undone, Sharp an-

nounced that it is develop-

ing 8K TV, which will

presumably provide dou-

ble the bandwidth of 4K

TV.

NSR's newly released

UltraHD via Satellite

report finds, over the long

term, UltraHD channels

representing a respectable

but niche opportunity for

satellite companies. This

nascent market is expected

to start at a low base in

2015 with just 15 channels

being demanded by the

global cable TV, IPTV

and DTH industries com-

bined. The global satellite

UltraHD market is ex-

pected to reach US$ 412

million in 2025 from an US $8.2 million revenue base in

2015.

“The efforts throughout the supply chain for 4K TV have

begun to align,” said Paul Gray, Director of TV Electronics

Research for NPD DisplaySearch. “Panel makers are produc-

ing 4K×2K screen sizes ranging from 50-110”, and there is

also a push to increase TV content. The availability of con-

tent is key to consumer adoption of 4K×2K TVs, and TV

manufacturers are anxious to prevent any potential delays

that could stall adoption, as was the case with 3DTVs.”

Gray added, “As a result, investments are beginning to en-

sure that 4K×2K content

is readily available to

consumers. Several an-

nouncements about pro-

prietary 4K×2K stream-

ing and download ser-

vices were made at CES;

however, satellite and

cable services from es-

tablished providers will

take some time.”

China is forecast to lead

in demand for 4K×2K

TVs, with shipments

forecast to grow from

333 thousand in 2013 to

more than 2.6 million in

2016. North America is

forecast to follow, with

just over 2 million fore-

cast to ship in 2016.

“Initially, we expect to see the highest 4K×2K adoption in

China, Japan and Western Europe, as these regions typically

prefer the latest highly-featured products,” noted Gray. “On

the other hand, North American consumers are generally

more likely to delay purchases of new technology, like

4K×2K, until prices fall. However, because demand is heav-

ily skewed towards large screens in this market, there is a

significant opportunity.”

T he Annual CES show held from January 8-11 in Las Vegas was the largest in its 45-year history. This year’s edition featured more than 3,000 exhibitors across the largest show floor in CES his-tory – 1.87 million net square feet of exhibit space attracting more than 150,000 attendees, includ-

ing more than 34,000 from outside the US. To give you an idea of the immensity of the show, to visit every booth, you would have to navigate over 15 miles of hallways and alleys. The record-setting attendance at CES underscores the importance of the consumer market in today’s economy. The CES has traditionally been the launching pad for groundbreaking consumer electronics products. This year’s crop of products are more of an evolution of products that were launched at previ-ous CES such as Tablet PCs, Over the Top (OTT) devices and Internet Connected TVs. What do all these consumer electronic gizmos mean for satellite service providers? If I can sum it up in one sen-tence: all these devices are getting more and more interconnected and to ensure seamless connectivity between all these devices and different platforms would require moving a lot of bandwidth. At some point some of that bandwidth will have to go through satellite networks.

Connectivity was the Buzz at CES

Show Report

by Virgil Labrador

4KTV sets were on display at the Samsung booth at CES, but at over US $ 25K per set, the question is how long before consumers adopt 4K TV in commercially viable numbers? (photo courtesy of CES)

Satellite Executive Briefing 9 February 2013

Despite a record-breaking 1.87 million square feet of space

for exhibits at the 2013 CES, the real buzz wasn't about hard-

ware -- it was about connectivity, apps and the cloud. New

research from Digitas, a digitally led integrated brand

agency, and Brandwatch, a social media monitoring and ana-

lytics company, analyzed over 330,000 social media men-

tions to reveal what trends and products coming out of CES

really matter to people worldwide.

"CES has traditionally been all about hardware, with a par-

ticular emphasis on television," said Chia Chen, SVP, Mo-

bile Lead, Digitas North America. "But this year the ecosys-

tem of software, apps, and content became a crucial part of

the show. And while TV still has a role to play, mobile be-

came more of the centerpiece. These trends in consumer

preferences have important implications for both manufac-

turers and marketers in today's multi-

screen world."

Digitas and Brandwatch dove

into the social chatter surround-

ing five key product features for

mobile phones, tablets, TVs,

and PCs/laptops. With the ex-

ception of TVs, the most buzzed

about capabilities focused on

the connectivity, apps, and con-

tent related to these products,

beating out other features such

as size, display, network, and

processors/speed. In fact, con-

nectivity, apps, and content

drove:

29.5% of product feature men-

t i o n s f o r m o b i l e

phones (23,499 out of

79,625)

27.2% of product feature mentions for PCs and lap-

tops (20,449 out of 75,223)

27.5% product feature mentions for tablets (13,133 out of

47,679)

For TVs, connectivity, apps, and content capabilities took

second, beat out only by display:

Display drove 35.9% of the conversa-

tion (28,070 out of 78,251)

Connectivity, apps, and content drove

22.5% of the conversation (17,592

out of 78,251)

A declining emphasis on hardware also

revealed itself in a look at the connected

technology trends at CES. Digitas and

Brandwatch research picked up over 17,000 mentions of

connectivity and connected technology. Of those conversa-

tions, 12,454 mentions honed in on four specific areas -- and

the cloud drove about one half of the conversation:

41.7% of mentions focused on the cloud (5,198 out of

12,454)

26.1% of mentions focused on NFC/RFID (3,247 out of

12,454)

19.4% of mentions focused on connected cars (2,417 out of

12,454)

12.8% of mentions focused on connected homes (1,592 out

of 12,454)

All the buzz for connectivity and mobility just translate into

more bandwidth requirements for the consumer sector. How

much of that demand will be met by satellite service provid-

ers remains to be seen. It will all depend on how much the

satellite industry is able to adopt services to changing re-

quirements and to interface with other technologies. To gain

more insight on this, one important initial step is to watch

closely in the future the developments from the annual CES.

Show Report

Virgil Labrador is the Editor-in-Chief of Satellite Market and Re-

search based in Los Angeles, California. He is the author of two

books on the satellite industry and has been covering the industry for

various publications since 1998. Before that he worked in various

capacities in the industry, including a stint as marketing director for

the Asia Broadcast Center, a full-service teleport based in Singapore. He can be

reached at virgil@satellitemarkets.com

Figure 1. 4K×2K TV Shipment Forecast by Region (000s)

Source: NPD DisplaySearch Quarterly TV Design and Features Report

February 2013 10 Satellite Executive Briefing

Satellite Executive Briefing 11 February 2013

Opinion

What is a Satellite Services Business Really Worth?

I t is a bad time to sell satellite ground segment, aka a

teleport. But it is a great time to sell a successful satel-

lite services business with a teleport at its core.

That paradox is the conclusion of Best Practices in Teleport

Valuation, a newly published report from the World Teleport

Association.

A teleport executive with several acquisitions said, “The

only way you’re going to get any real value out of a business

you are trying to sell is to look at it on an EBITDA basis

(earnings before interest, taxes, depreciation and amortiza-

tion). The only way you would ever sell a teleport just as a

physical asset is if you had to, because there was no ongoing

business. And it would be a distress sale.”

What makes a teleport valuable to a buyer, if not the physical

assets? It is the value of the customer contracts, less the risk

of their being cancelled, plus the track record of growth –

and an analyst’s opinion of the current value of that future

cash. But there is much more to the story.

It also makes a differ-

ence to buyers who the

customers are.

“Contracts with other

service providers are

not of much value to

us,” said an executive

of a company that is

making acquisitions

annually. “They are

likely to be competitors.

We are interested in end

-customers, not inter-

mediaries. The excep-

tion is in the emerging

economies, where we

like to see contracts

with local partners.

Let’s say we are look-

ing at a teleport in

Europe that services

Africa through small-to

-midsize resellers.

There is value in that. In

each country, we need local partners who can find business,

license it, install it and maintain it.”

Another serial acquirer put it this way: “When you plan to

put assets together, they need to perform better together than

they would apart. One plus one has to equal three or four.

Otherwise, why are you

doing it? One ap-

proach is to chase sav-

ings but that really

doesn’t apply well to

our business. Most

facilities are pretty lean

when it comes to their

biggest expense, which

is people. The point of

having multiple facili-

ties is to attract busi-

ness that you never

could before.”

The satellite services

business also has sur-

prises in store for any-

one used to valuing more conventional telecom assets.

“What is different about buying a teleport from buying most

communications businesses,” said a former teleport CEO, “is

that it is also a real

estate purchase. And

in real estate, the

three most important

things are ‘location,

location, location.’

Even in our global

market, the services

of a teleport are de-

pendent on where you

perform them from.”

What can the owners

of a teleport-based

business do to in-

crease their return on

investment? “When

entrepreneurs sell

businesses,” said one

broker, “they have

spent their whole

lives getting custom-

ers and keeping op-

erations going. At-

tending to the mundane details of documentation has never

been a priority. But it becomes a priority now.”

Another broker summed it up: “The more you have your act

together, the better your valuation is going to be. At least

have your financials ready in GAAP form (generally ac-

cepted accounting principles) and make sure you have all the

by Robert Bell

Photo: ATCi

February 2013 12 Satellite Executive Briefing

March 12-14, 2013, CABSAT 2013, the Middle East & Africa’s largest Broadcast, Digital Media and Satel-lite Expo, Dubai World Trade Center Center, Dubai, UAE. phone +971-4 308 6077 / 6915 e-mail: info@dwtc.com web: http://www.cabsat.com

March 18- 21, 2013, SATELLITE 2013, Walter E. Washington Convention Center, Washington D.C., USA. phone

+1-301-354-1797 web:www.satellite2013.com

2013 NAB Show®, Conferences: April 6 – 11, 2013, Exhibits: April 8 – 11, 2013, Las Vegas Convention Center,

Las Vegas, Nevada, USA, phone: outside of U.S.: +1 202 595 2052; within U.S.: +1- 800 342 2460 e-mail:

info@nab.org web: www.nabshow.com

May 21-23, 2013, Space Tech Expo 2013, Long Beach Convention Center, Long Beach, California, USA, phone +44 (0) 1306 743 811, US Toll Free +1 877 842 6289 e-mail: info@spacetechexpo.com; web: www.spacetechexpo.com

May 27-30, 2013, SATCOM AFRICA 2013 co-located with The Broadcast Show Africa and Submarine Net-works World Africa, Sandton Convention Center, Johannesburg, South Africa, phone +27 (0) 11 516 4015 email: keshni.reddy@terrapinn.com web: www.terrapinn.com/exhibition/satcom-africa/

June 18-21, 2013, CommunicAsia2013 and EnterpriseITAsia2013, Marina Bay Sands Expo Center, Singapore, phone +65-623-336-6638 Email:vw@sesallworld.com web:www.communicasia.comwww.goto-EnterpriseIT.com

Calendar of Events

due diligence materials to back them up: bank records, re-

cords of litigation, environmental records, licenses, customer

and vendor contracts. The more you have this stuff neatly

packaged with a bow on it, the more people are likely to be-

lieve what you say.”

A media executive valued a different kind of investment.

“One very valuable step that doesn’t cost much money is to

put extra effort into building your image or reputation.

Show up at trade shows, join association boards, sit on pan-

els and work to be perceived as a leader in the industry. It is

one thing to have a business that is well-run; it is another to

have people perceive that your company has strong, compe-

tent management, which can make it much more attractive to

buyers.”

And what’s the biggest mistake an owner can make in put-

ting the business up for sale? “A lot of sellers have unrealis-

tic expectations,” said a teleport executive. “In our industry

lately, we have seen some deals done at very high valuations

in terms of EBITDA multiples – high single or even double

digits. That is for companies that are large, have good con-

tracts and professional leadership. Owners see that and think

that their small company can be sold for the same high mul-

tiple.” But demanding a high price can carry risks. “The

owner just wants to recoup his investment, said another ex-

ecutive. “He asks for crazy numbers and sticks to them. In

the end, he gets the opposite of what he wants. He doesn’t

get his price, and a broker comes in to break up the facility

and sell the pieces as used equipment at the worst possible

price.”

It is the rare satellite services business that is publicly held

and reveals its inner workings. Best Practices in Teleport

Valuation is a unique glimpse behind the scenes of a private

market that is setting value on satellite services companies

every day.

Robert Bell is Executive Director of

the World Teleport Association,

which represents the world's most

innovative teleport operators, carri-

ers and technology providers in 20

nations. He can be reached at:

rbell@worldteleport.org

“...It is a bad time to sell satellite ground segment, aka a teleport. But it is a great time to sell a successful satellite services business with a teleport at its core.…”

Opinion

Satellite Executive Briefing 13 February 2013

February 2013 14 Satellite Executive Briefing

SintecMedia Acquires Argo Systems

New York City, January 22, 2013-

Broadcast management software pro-

vider SintecMedia announced the ac-

quisition of Argo Systems, a provider

of business solutions to the cable net-

work and operators industry. This is

SintecMedia's second acquisition in the

North American market, complement-

ing its recent purchase of StorerTV.

Argo Systems bridges the business

needs of television networks and their

counterparts on the cable operator side

with its Medea and Nestor systems that

are installed across more than 300 cable

networks and operators around the

globe. DecisionPoint, an M&A advisor

for middle-market technology compa-

nies, represented Argo in this transac-

tion.

"SintecMedia's acquisition of Argo Sys-

tems will further augment our local

activities in the North American cable

television and MSO markets," stated

SintecMedia CEO Amotz Yarden. "Its

team and suite of products have gained

the respect of every television executive

in the industry. Argo Systems will in-

crease SintecMedia's footprint and ca-

pabilities, boost our U.S. presence in

terms of local support including soft-

ware engineers, technicians as well as

other professionals and delivery re-

sources that will enable us to supply a

greater array of broadcast and digital

media solutions."

Argo Systems' President Doug Calahan

affirmed, "Merging with SintecMedia is

a testament to our solutions' strengths,

opens new international markets and

spurs further growth in North America.

Combining the products and capabili-

ties of SintecMedia, along with its

newly acquired StorerTV and now Argo

Systems creates powerful platforms to

take the industry into the future."

"This acquisition

represents a major

step in SintecMe-

dia's growth strat-

egy to raise our

North American presence by investing

in a combination of both acquisitions,

such as this of Argo Systems and earlier

this month of StorerTV as well as or-

ganic growth initiatives," commented

Amir Lavi, Executive Vice President

and head of SintecMedia U.S. sales. "In

a global digital market, our customers

require a wide range of solutions to

enhance revenues and adding Argo Sys-

tems to our comprehen-

sive OnAir media management core

advances this goal."

Yarden added, “We welcome Argo Sys-

tems to the SintecMedia family and

look forward to working closely with

their developers, implementation and

support staff professionals to meet the

U.S. market's growing needs."

OnAir combines traffic, sales, and pro-

gramming in a single framework to

address the most pressing issues facing

broadcasters and media makers includ-

ing comprehending multiple informa-

tion levels, integrating linear and non-

linear capabilities and managing a full

range of assets.

Liberty Media Corp. Takes Con-trol of Sirius XM Radio

Englewood, Colo., January 18, 2013--

In a quest that started four years ago,

Liberty Media Corp. finally took con-

trol of Sirius XM Radio Inc. after it

bought additional 50 million common

shares in the satellite radio company.

Liberty Media said it received approval

from the Federal Communications

Commission for the transfer of de

jure control of Sirius XM to Lib-

erty. Liberty now holds about 2 billion

common shares and 1.29 billion con-

vertible shares, giving Liberty Media

more than 50% stake in Sirius.

Liberty said it expects to complete the

transfer of control of Sirius XM within

60 days.

Sirius, based in New York, provides

radio programming in vehicles, online

and through mobile applications. It has

nearly 24 million subscribers and is the

world’s largest radio broadcaster in

terms of revenues.

Liberty, run by cable magnate John

Malone, saved Sirius from near-

bankruptcy in February 2009 by agree-

ing to invest up to $530 million, which

allowed Sirius to meet its obligation. In

exchange, Liberty Media got preferred

stock that amounted to a 40% stake in

Sirius.

The 2009 deal, according to reports,

also provided for two board seats for

Liberty Media, and provided cash for

operations and development, with a

maturity date of December 2012 for the

loan. On March 6, the two companies

approved the second part of the deal,

with Sirius XM getting $250 million

immediately and Liberty receiving 12.5

million shares of preferred stock con-

vertible into a 40% ownership of Sirius

XM common stock.

Meanwhile, Sirius has recovered from

its tailspin and gained customers, add-

ing 2 million net subscribers in 2012

with revenues of $3.7 billion. Last

week, Sirius said it now has 23.9 mil-

lion subscribers.

Buoyed by reports of rising revenues

and increased subscriber base, Sirius

shares rose 2 cents to $3.16 on Friday.

Its shares have climbed roughly 60%

since July.

With Liberty in control, many expect a

new CEO to replace James Meyer,

IndustryIndustryIndustryBriefsBriefsBriefs

Major industry news and developments

MERGERS & ACQUISITIONS

Satellite Executive Briefing 15 February 2013

February 2013 16 Satellite Executive Briefing

IndustryIndustryIndustryBriefsBriefsBriefs

Major industry news and developments

Ruud Haasjes

who was named interim CEO in De-

cember, replacing Mel Karmazin, who

resigned last year.

SpeedCast Completes Buyout of Elektrikom Satellite Service

Hong Kong, January 17, 2013 –

SpeedCast Ltd, has completed, with the

support of its majority shareholder, TA

Associates, a buyout of maritime ser-

vices provider Elektrikom Satellite

Services, based in the Netherlands.

Elektrikom provides satellite and wire-

less-based communications solutions to

the maritime industry. The Company

focuses on the high-end segments of the

maritime market, including the oil &

gas and offshore supply segments.

Founded in 1985, Elektrikom is head-

quartered in Rotterdam, Netherlands,

where it enjoys a strong position in this

key maritime shipping hub, and also

serves customers and partners through-

out Europe.

Elektrikom has established itself as one

of the leading maritime satellite service

providers in Europe, with a marquee list

of customers ranging from major ship-

ping companies to offshore supply com-

panies. Elektrikom is well known for its

expertise and ability to deliver custom-

engineered communication solutions for

its customers, including various types

of satellite communications, such as Ku

-band & C-band VSAT services and L-

band services, as well as wireless tech-

nologies and a range of IT services.

Joining the SpeedCast Group, Elek-

trikom will be able to offer its maritime

customers a wider portfolio of products

and services, including land-based ser-

vices, and to better serve its global cus-

tomers’ needs in Asia. Elektrikom will

also benefit from SpeedCast’s broad

range of engineering capabilities world-

wide, with certified field engineers able

to support maritime services and anten-

nas onboard vessels and platforms.

These extensive support resources are

strategically located in Hong

Kong, Singapore, Indonesia, Malaysia,

China, Dubai, and Australia, in addition

to Elektrikom’s own presence in the

Netherlands.

SpeedCast will leverage Elektrikom’s

strength in Europe, with its strategic

Rotterdam base, to further penetrate the

important European market, as well as

deliver continuity of experience for

Elektrikom’s existing customers. Elek-

trikom’s worldwide satellite communi-

cations infrastructure will com-

plement SpeedCast’s existing

global network, adding an over-

lay network which will provide

redundancy and backup, as well

as introducing new options for

SpeedCast’s global customer

base, according to the company.

This acquisition follows shortly after

SpeedCast's acquisition of Australian

Satellite Communications ("ASC"), a

leading satellite communications ser-

vice provider in Australia. ASC is very

active in serving customers in the natu-

ral resource market, in particular the oil

& gas industry, which complements

Elektrikom’s position serving the oil &

gas and offshore industries in Europe.

Ruud Haasjes Joins Signalhorn as VP Government & NGO Sales

BACKNANG, Germany, 28 January

2013 — Ruud Haasjes has joined Sig-

nalhorn to lead the company’s Govern-

ment and NGO team in its next major

phase of growth.

Haasjes has a track record in leveraging

communications applications for the

military and government telecommuni-

cations requirements, successfully de-

veloping and growing telecoms busi-

ness throughout the EMEA. He will

join Signalhorn as VP Government and

NGO Sales.

Signalhorn said

Haasjes’ senior man-

agement experience

will help satisfy cus-

tomer needs and en-

sure that the com-

pany continues to

grow at a record pace.

The company is targeting to solidify its

leadership position within the telecom-

munications and satellite communica-

tions market.

Haasjes said he is very pleased that Sig-

nalhorn has a truly professional team

that will enable him to strengthen the

company’s position in the defense, gov-

ernment, and NGO markets as provider

of trusted networks.

“We can provide end-users the unique

experience of advanced technology,

permanent availability, and ultimate

support to provide the best communica-

tion systems for mission-critical appli-

cations,” he said. He added that peo-

ple’s lives at NGOs and governments

depend on reliable communications and

said Signalhorn’s 40 years of experi-

ence can provide this level of communi-

cation technology.

Haasjes comes to Signalhorn with over

25 years of international sales manage-

ment experience in the government,

NGO, defense, and industrial business-

to-business markets. Most recently, he

was responsible for the sales of the

European Defense Markets at Harris RF

Communications. Prior to that Haasjes

was General Manager for Codan's

EMEA sales organization where he

grew the NGO and government satcom

and HF businesses.

He has a BS in electrical and electronic

engineering from the HTS in Zwolle,

The Netherlands, and holds an MBA

from Ashcroft International Business

School, Cambridge, UK.

EXECUTIVE MOVES

Satellite Executive Briefing 17 February 2013

February 2013 18 Satellite Executive Briefing

Reitmeier Elected as ATSC

Board Chairman

Carmel, IN, 23 January 2013 — The

Board of Directors of the Advanced

Television Systems Committee

(ATSC) has elected Glenn Reitmeier

a s i t s

C h a i r ma n

for 2013.

Rei tmeier

is Senior

Vice Presi-

dent of

Ad vanced

Technology

at NBCU-

n i v e r s a l ,

leading the

company's technical efforts related to

industry standards, government policy,

advanced engineering and anti-piracy

technical operations.

He is widely recognized as a pioneer of

digital television. Reitmeier spent 25

years in digital video research at

Sarnoff Labs, where he led the devel-

opment of one of the original digital

HDTV system proposals. He played a

leading role in the formation of the

Digital HDTV Grand Alliance and the

development of its system that culmi-

nated in the ATSC Digital Television

standard.

Since joining NBC in 2002, Reitmeier

was involved in the creation of NBC's

first high-definition cable channel,

Universal-HD, launching DTV multi-

cast programming, the creation of mo-

bile broadcasting and the Dyle joint

venture, and the distribution of NBCU-

niversal content to new digital con-

sumer devices,.

Reitmeier previously served on the

ATSC Board of Directors from 2004-

2009 and as its Chairman from 2006-

2009. He is also a board member of the

North American Broadcasters Associa-

tion, a contributor to TV Everywhere

standards as President of the Open Au-

thentication Technology Committee,

and a contributor to the Digital Enter-

tainment Content Ecosystem work on

the UltraViolet digital ecosystem.

Bax Resigns as Encompass Digital CEO; Company Names

Horowitz, Tillson Co-CEOs

LOS ANGELES, 22 January 2013 — Encompass Digital Media, a provider

of television channel origination, live

sports and news distribution, an-

nounced on Tuesday that Simon Bax

has resigned as CEO and Board mem-

ber.

Encompass said Board member and

investor Ed Horowitz will join com-

pany President, COO and co-founder

Bill Tillson, in establishing the En-

compass Office of the CEO. Working

in tandem, the company said, they will

continue to build the business and lead

Encompass in providing 24/7 mission-

critical services to premier local, re-

gional and global media customers.

Bax, who will remain as shareholder,

will be an advisor to the Office of the

CEO. After five intense years working

to build Encompass, Bax said he has

decided it is time to step down.

“Now that Encompass has completed

the primary acquisition and build-out

of its worldwide facilities, the travel

required and the need to center the

company’s corporate headquarters in

the U.S., while my family is based in

the U.K., has led me to conclude that

this is the time to relinquish my role.”

Horowitz has had a long and distin-

guished career in the telecommunica-

tions sector. In the past he has worked

as the Chairman and CEO of Viacom’s

Broadcast and Interactive Media divi-

sions. In 1997, he founded and was

Chairman of e-Citi, which pioneered

the implementation of e-commerce and

financial services at Citigroup. He also

served as President and CEO of SES

Americom, a market-leading satellite

company serving media, enterprise,

and U.S. government customers. Mr.

Horowitz currently serves as Chairman

of the Board of Fairpoint Communica-

tions (FRP) and is on the Board of

Online Resources Corporation

(ORCC).

Inmarsat Names Navin as Managing Director for India

Mobile satellite communications ser-

vices provider Inmarsat has named

Navin Kapila as its Managing Direc-

tor for India.

Navin was formerly a senior official

within the Indian Government’s Minis-

try of Communications and Informa-

tion Technology and held senior execu-

tive posts with ICO Global, a global

telecommunications company.

Navin currently serves as a non-

executive Board Member of Telkom

South Africa and an International Tele-

communications Union (ITU) Special

Adviser for Emergency Communica-

tions. In October last year, Navin was

presented with the only individual

award by ITU Secretary-General

Hamadoun Touré at the ITU’s first

Humanitarian Awards ceremony.

Inmarsat Chief Executive Officer

Rupert Pearce said India presents an

exciting market for the company and

he looks forward to developing oppor-

tunities, which will benefit the univer-

sal rollout of telecoms infrastructure to

users throughout the country.

IndustryIndustryIndustryBriefsBriefsBriefs

Major industry news and developments

Navin Kapila

Glenn Reitmeier

Satellite Executive Briefing 19 February 2013

February 2013 20 Satellite Executive Briefing

MarketMarketMarketBriefsBriefsBriefs

Key industry trends and opportunities.

Dallas, Tex. January 28, 2013-The demand for military

satellites is anticipated to be driven by the need for enhanced

communication capabilities and Intelligence, Surveillance

and Reconnaissance (ISR) requirements for armed forces

across the world. The market is expected to be dominated by

North America, followed by Europe and Asia Pacific accord-

ing to the “The Global Military Satellite Market 2012-2022”

offered by ReportsnReports.com.

“The Global Military Satellite Market 2012-2022” offers the

reader detailed analysis of the global military satellite market

over the next ten years, alongside potential market opportu-

nities to enter the industry, using detailed market size fore-

casts. The report provides detailed analysis of the current

industry size and growth expectations from 2012 to 2022,

including highlights of key growth stimulators. It also bench-

marks the industry

against key global mar-

kets and provides de-

tailed understanding of

emerging opportunities

in specific areas.

With the increasing

usage of Commercial-

Off-The-Shelf (COTS)

equipment in the mili-

tary sector lately, the

bandwidths of military

satellites are being in-

creased through hosted

payloads from commer-

cial satellite providers.

Hosted payloads are

components attached to

commercial satellites,

which are designed to

function independently

of the host satellites,

while at the same time sharing its resources. These enhance-

ments can be used for numerous applications of satellites

mainly including military communication and ISR, accord-

ing to the report.

The current situation of defense budget cuts across most of

the countries is expected to persist during the forecast period.

In this scenario, the defense departments around the world

are exploring and inviting new alternatives for reducing their

costs. Apart from pushing back their project timelines, utili-

zation of COTS equipment is a potential choice for the gov-

ernment. Thus, the military satellite industry is gradually

undergoing a transition towards selecting commercial pro-

viders against defense suppliers for its programs.

The North American and European regions account for an

estimated 80% of global defense spending. These countries

were, however, among the hardest hit by the global financial

crisis. This has led to austerity measures being introduced by

national governments, which in turn have resulted in reduced

defense budgets and the cancellation and indefinite delay of

various military satellite programs. The countries such as the

US, France, Germany among others, which contribute sig-

nificantly to the global military satellites market, are experi-

encing substantial defense budget cuts. This is forcing the

defense departments of these countries to realign their spend-

ing strategies on satellites.

The industry is rapidly

adopting strategies such as

Public-Private Partnerships

(PPPs) and Private Finance

Initiatives (PFIs) owing to

the huge capital require-

ments and post deployment

assistance required for these

projects. Moreover, govern-

ments are increasingly

adopting the capacity leas-

ing approach on privately

owned satellites, rather than

deploying own systems.

In the current scenario of

defense budget cuts in many

countries around the world,

Private Financing Initiative

(PFI) is gaining significant

importance, through which

the satellite project will be

built and owned by a private company. In return, the govern-

ments agree on guaranteed contracts for the satellite services

throughout the satellites' lifetime.

Buy your copy of this report @ http://

www.reportsnreports.com/purchase.aspx?name=216332 .

Explore more reports on Public Sector Market @ http://

www.reportsnreports.com/market-research/government/ .

Military Budget Cuts to Continue Through 2022

With the increasing usage of Commercial-Off-The-Shelf (COTS) equipment in the military sector lately, the band-widths of military satellites are being increased through hosted payloads from commercial satellite providers.

Satellite Executive Briefing 21 February 2013

MarketMarketMarketBriefsBriefsBriefs

Key industry trends and opportunities.

Tewkesbury, UK, January 29, 2013--

The International Association of Broad-

casting Manufacturers (IABM) released

the results of the organization's Industry

Trends Survey, which reflects senior

industry executives' opinions on their

own companies' past performance and

their outlook for the first half of the

new year. This 2012-13 survey of ex-

ecutives from IABM member compa-

nies represents the 16th consecutive

Industry Trends Survey. Key findings

indicate cautious optimism, with growth

still slowed by factors ranging from

political and economic uncertainties to

limited manufacturing and development

capacity.

"Overall, the survey outcome is still

positive, but the mood is much more

sanguine than in the recent past," said

IABM Director General Peter White.

"While confidence is growing in many

segments and geographic areas, this is

not true for all IABM members, many

of whom are now feeling the impact of

wider political and economic conditions

and are adjusting their operations ac-

cordingly."

The IABM Industry Trends Survey

indicates that while order levels have

remained as expected or fallen, selling

prices and material and labor costs have

remained generally stable. Order and

project deferrals by customers are a

primary operating constraint. Fulfill-

ment is limited both by credit and fi-

nance issues, and by limited manufac-

turing capacity. Companies are, how-

ever, continuing to make significant

investments in research and develop-

ment.

At the same time, headcounts are in-

creasing, most likely with the goal of

tackling skill shortages. While confi-

dence ratios are rising in the Asia-

Pacific region and are stable in Europe,

the most significant and striking change

occurred in North America, where con-

fidence ratios dropped to levels equal to

and then, for the year ahead, lower than

the global average, according to the

report.

IABM Releases Results of Industry Trends Survey

February 2013 22 Satellite Executive Briefing

MarketMarketMarketBriefsBriefsBriefs

Key industry trends and opportunities.

Global Navigation Satellite Systems Projections

London, UK, Jan. 15, 2013-- Global Navigation Satellite

System (GNSS), which started purely as a military applica-

tion, has now widened to include all possible users - govern-

ment agencies, industries, and even individuals. Frost & Sul-

livan analysis forecasts increasing prominence of Position,

Navigation and Timing (PNT) data derived from Global

Navigation Satellite System (GNSS) and associated Value

Added Services (VAS) in the next 10 to 20 years.

As US and European stake-

holders continue to demon-

strate growing interests in the

region in collaboration with

regional systems/service pro-

viders, the Asia-Pacific

(APAC) will continue to rep-

resent as the fastest growing

region through 2021, as fore-

casted in a recent Frost & Sul-

livan Market Insight entitled:

"Global Navigation Satellite

System Market Assessment -

In Pursuit of New Business

Opportunities."

Frost & Sullivan forecast

shows that the APAC market

is anticipated to more than

d o u b l e i n 1 0 ye a r s ,

from EUR22.10 billion in

2012 to EUR56.07 in 2021, with one of the fastest growth

rates among regions at 10.9 per cent. The European market

value is estimated to grow from EUR16.90 billion in 2012

to EUR28.54 billion in 2021.

"The GNSS, with its current standing in terms of accuracy

and reliability of service, is ready for providing non-safety of

life (Non-SOL) applications to include Road Services and

Location-based Services, among others," notes Frost & Sulli-

van Analyst for Aerospace, Defence & Security, Sabbir Ah-

med .

GNSS has the potential to serve every corner of the world

with seamless connectivity as Global Positioning System

(GPS) has served both military and commercial markets

since 1973. The ongoing transformation includes 32 new

satellites and the fourth civil signal (L1C) with the BlockIII

launches, as well as new ground control systems.

"Much of the present weaknesses in PNT market space are

expected to be fully mitigated through multi-GNSS ap-

proach, but that means industry will have to wait until at

least 2020 to reach full potential," explains Ahmed.

"However, highly regulated Safety-of-Life (SOL), Publicly

Regulated Service(PRS), and Search-And-Rescue (SAR)

applications are anticipated to come to maturity by 2015."

GLONASS has also recently started to play an important

role; however, despite being global in nature, with 24 satel-

lites, its services have been limited to its own territory and

part of Europe.

With four satellites already in

orbit, the European GALILEO

project is very promising. By the

end of 2014 it is expected to be

partially operational and with

this, GPS would no longer be the

sole player in global Position,

Navigation, Velocity and Timing

(PNVT) market space.

As of now, GPS and GLONASS

are already interoperable, and

GALILEO is designed to be

compatible with GPS. Addition-

ally, the Chinese COMPASS/

BeiDou already has the

16th satellite in orbit and global

services are expected with full

constellation by 2020. This prod-

uct is set to bring competition in the market, particularly in

the APAC region.

The aviation sector has also transformed in position, naviga-

tion, approach and landing, and CNS/ATM to include

GNSS. It shows these products are already being accepted,

with significant intake expected by 2021.

"Frost & Sullivan recommends focusing on specific applica-

tion segments where technology is already matured in the

short term (2012-2014)," concludes Sabbir Ahmed .

"However, the development of innovative products/

applications with resilient features and guaranteed service

will resist competition from cheap product manufacturers."

In the long term (2015-2021), industry focus should be on

SOL applications for Aviation, as well as PRS for first re-

sponders/government agencies. Businesses should work

closely with government stakeholders to understand require-

ments, and contribute to formulating policies towards creat-

ing demands in the target market.

Satellite Executive Briefing 23 February 2013

February 2013 24 Satellite Executive Briefing

Featured Event

CABSAT 2013: Platform for a Critical Satelltie Industry

Agenda

W hen writing under a leaden winter UK sky during

January the subject of CABSAT in the rather

warmer month of March in the UAE is a very

easy one to turn to, and indeed there’s much on the critical

agenda on which to be informed. Thus, this year GVF has a

very busy CABSAT week, focused on both the Dubai Inter-

national Convention & Exhibition Center (DICEC) and

the GVF/MenaNets Training Facility in Dubai’s Jebel Ali

Free Zone.

The MENASAT @ CABSAT Satellite Summit is pre-

sented each year by GVF in cooperation with DWTC as part

of the CABSAT exhibition and CABSAT Academy. It has

developed a reputation for in-depth and invaluable discus-

sions covering the current hot topics for the satellite industry,

and the 2013 program, which, in combination with other

GVF events, will span the entire week from 11th to 15th

March, is no exception. Again this year, as last, parts of the

GVF program are being held in association with IRG (the

satellite Interference Reduction Group), the WBU-ISOG

(World Broadcasting Unions-International Satellite Opera-

tions Group), and the RFI-EUI (Radio Frequency Interfer-

ence-End Users Initiative). Also, for those parts of the pro-

gram, GVF welcomes the kind participation of the ITU.

At the heart of GVF’s CABSAT week is the two-day ME-

NASAT Summit, this year designed to cover high-capacity/

high-throughput satellite technologies, and satellite interfer-

ence prevention.

GVF MENASAT @ CABSAT 2013 – ‘The High-

Capacity Satellite Summit’

DICEC Meeting Room (Hatta G+H, above Exhibition

Hall 2) | 13th March | from 12:00

The ‘The High-Capacity Satellite Summit’ will take place

on 13th March. The program will provide the satellite, and

wider communications industry, an opportunity to engage in

extended dialogue on advanced high-capacity and high-

throughput satellite system topics. As of the 28th January the

draft program will cover:

The Technology & Regional Market Context of High

-Capacity/High-Throughput Satellites

Global & Regional Satellite Operators and High-

Capacity/High-Throughput Satellites

Markets &

Verticals: Lev-

eraging the

High-Capacity/

High-

Throughput

Solution

OEMs & Ground Infrastructure: The High-

Capacity/High-Throughput Equipment Manufacture &

Teleports Context

Networking Applications in the High-Capacity/High-

Throughput Environment Regional Regulation & Licensing for High-Capacity/

High-Throughput Satellite Systems

GVF MENASAT @ CABSAT 2013 – ‘The Satellite Inter-

ference Prevention Summit’

DICEC Meeting Room (Hatta G+H, above Exhibition

Hall 2) | 14th March | from 11:45

Taking place on 14th March will be the ‘The Satellite Inter-

ference Prevention Summit’, held in association with IRG

(the satellite Interference Reduction Group), the WBU-

ISOG (World Broadcasting Unions-International Satellite

Operations Group), the RFI-EUI (Radio Frequency Interfer-

ence-End Users Initiative), and with the kind participation of

the ITU. Delegates will learn about the challenges of satel-

lite interference specific to the MENA region, and better

understand both the causes and possible solutions, as well as

contributing to the discussions, covering:

Intentional Interference: Sources & Responses

Improper Installations and Training & Certification

Sub-Standard Equipment and Type Approvals, PQA

& Earth Station Design

Comms on the Move

Auto-Deploy Systems

Ka-band Ultra-Small Aperture VSAT

Maritime Stabilized VSAT Platforms

Aeronautical VSAT Systems

Wireless Interference and the Satellite Industry

Spectrum Initiative

Unidentified Carriers and Carrier ID

by Martin Jarrold

Satellite Executive Briefing 25 February 2013

Featured Events

Dysfunctional Networks and Network Validation

The CABSAT exhibition halls over 12th to 14th March will

feature the GVF @ CABSAT 2013 Exhibition ‘Product

Quality Program’, featuring the importance of product

quality as a key factor when selecting satellite communica-

tions earth station equipment.

Recently, leading manufacturers throughout the world have

begun to submit their equipment to international industry-

endorsed tests to facilitate the delivery of higher-

performance systems. Earth station equipment that has been

submitted to approval measures conducted in co-ordination

with the GVF Product Quality Assurance (PQA) Frame-

work will be spot-lighted in the CABSAT exhibition halls

as well as during the MENASAT @ CABSAT Summit.

This feature of CABSAT 2013 is of tremendous value, both

to the communications industry and the broadcast and tele-

com user communities. As satellite communications have

become more popular, the number of earth stations entering

the marketplace has increased dramatically. With millions of

fixed and mobile satcom terminals now planned for produc-

tion, GVF's Mutual Recognition Arrangement (MRA)

represents the global satellite industry – including satellite

operators, earth station manufacturers and integrators – as

they coordinate industry testing and type approvals that help

characterize the quality of satcom equipment. Information

about type approvals, and those products that have already

been tested, will be a center-piece of the CABSAT 2013

program.

The MENASAT @ CABSAT Summit will include presen-

tations on the GVF PQA Framework and how it serves as a

path through which manufacturers can have their equipment

type-approval tested. This will provide an excellent opportu-

nity for the Middle Eastern satellite communications indus-

try to learn how they can take advantage of the program and

apply approved products to the solutions offered to their cus-

tomers.

The main advantage of type approved products is that satel-

lite end users are able to introduce antenna systems that have

demonstrated compliance with industry-approved specifica-

tions. Users will be able to examine those products in the

CABSAT exhibition halls, where a Quality Products Trail

will help identify exhibiting manufacturers who have ap-

proved earth station products. The approved products avail-

able in the CABSAT exhibition will include systems de-

signed for broadcasting and consumer broadband, as well as

enterprise-class terminal equipment for fixed networks and

for state-of-the-art communications on aircraft, trains, ships,

and other vehicles.

The GVF MRA, which is the industry mechanism through

which the approvals are coordinated, provides guidance for

manufacturers and satellite operators pursuing GVF MRA

Testing & Satellite System Operator Type Approval for

VSAT equipment. To prepare for the CABSAT program,

please visit www.gvf.org/approvals.

Other features of GVF’s CABSAT week will be:

‘The GVF Product Quality & Training Briefing’ GVF/MenaNets Training Facility, Jebel Ali Free

Zone | 11th March | Times to be confirmed

GVF Installer Training Hands-on-Skills-Test (H.O.S.T.) GVF/MenaNets Training Facility, Jebel Ali Free

Zone | 15th March | Times to be confirmed

GVF/MenaNets Evening Reception Venue to be advised | 13th March | from 19:30

If interested readers would like to speak at the GVF ME-

NASAT @ CABSAT 2013 Summit you are invited to con-

tact me at martin.jarrold@gvf.org.

Please note that future Executive Briefings will provide

updates on future GVF-EMP Oil & Gas Communications

Conference Series programs:

GVF Oil & Gas Communications Brazil 2013: Big Oil,

the Deepwater Ocean Expanse, and Big Data

16th to 17th April | Rio de Janeiro | Brazil

www.uk-emp.co.uk/emp-home/future-events/oil-

gas-communications-brazil-2013/

GVF Oil & Gas Communications Europe 2013: North &

Northwest to the Arctic & Atlantic Margin

14th to 15th May | Aberdeen | UK

www.uk-emp.co.uk/emp-home/future-events/oil-

gas-communications-europe-2013/

Martin Jarrold is Chief of International Program Development of the GVF. He can be reached at martin.jarrold@gvf.org

At the heart of GVF’s CABSAT week is the two-day MENASAT Summit, this year designed to cover high-capacity/high-throughput satellite technologies, and satellite interference prevention.

February 2013 26 Satellite Executive Briefing

Satellite Executive Briefing 27 February 2013

© 2013 Satellite Markets and Research, Satellite Executive Briefing and the Satellite Markets IndexTM are trademarks of Synthesis Publications LLC. Synthesis Publica-tions LLC is the owner of the trademark, service marks and copyrights related to the Index. This newsletter does not constitute an offer of an investment product. Satel-lite Executive Briefing makes no representation regarding the advisability of investing based on the information provided in the Satellite Markets IndexTM. All information is provided ‘as is’ for information purposes only and is not intended for trading purpose or advice. Neither Satellite Executive Briefing nor any related party is liable for any informational error, incompleteness or for any actions taken based on information contained herein.

The Satellite Markets 25 IndexTM is a composite of 25 publicly-traded satellite companies worldwide with five companies representing each major market segment of the industry: satellite operators; satellite and com-ponent manufacturers; ground equipment manufacturers; satellite service providers and consumer satellite services. The base data for the Satellite Markets IndexTM is January 2, 2008--the first day of operation for Satellite Market and Research. The Index equals 1,000. The Satellite Markets IndexTM provides a benchmark to gauge the overall health of the satellite industry.

Stock Index

February 2013 28 Satellite Executive Briefing

Advantech Wireless……………....……………..5 www.advantechwireless.com Asia Broadcast Satellite…………...…….....…..2 www.agilemilcoms.com Cabsat 2013......................................................26 www.cabsat.com CommunicAsia2013.........................................17 www.communicasiacom NAB 2013……………….....................................21 www.nabshow.com

O3b Networks…………....................................15 www.o3bnetworks.com Space Tech Expo 2013…………......................13 www.spacetechexpo.com Satcom Africa 2013…………...........................10 www.terrapinn.com/satcom The SpaceConnection..................cover and 23 www.thespaceconection.com Walton Enterprises..........................................19 www.de-ice.com

ADVERTISERS’ INDEX

Ultra HD Revenue Projections

N SR's newly released UltraHD via Sat-ellite report finds, over the long term,

UltraHD channels representing a respect-able but niche opportunity for satellite companies. This nascent market is ex-pected to start at a low base in 2015 with just 15 channels being demanded by the global cable TV, IPTV and DTH industries combined. The global satellite UltraHD market is expected to reach US$ 412 mil-lion in 2025 from an US $8.2 million reve-nue base in 2015. With ROI metrics being volatile in the early part of the market cycle, the expectedly small niche that UltraHD is likely to serve lends to the pay TV industry’s slow adop-tion of this new video format. One of the major market restraints is the level of risk

taking by service providers, which is key to ecosystem development. TV manufacturers are one of the first to ante up as Ul-traHD TV sets from major manufacturers like Sony, LG and Samsung are being unveiled. Content including movies and sporting events, as well as cameras to shoot UltraHD, are already available. Over time, the market should begin to grow at higher levels; however, the percentage of UltraHD channels compared to SD and HD channels is expected to be a very small share. “Although regarded by some in the industry as potentially ‘the next big thing’ or the largest revenue driver for satellite communications, it is NSR’s view that UltraHD will be a small niche with minimal impact in revenues and channel carriage over the long term, relative to SD and HD growth,” notes NSR analyst Jose Del Rosario.