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Page 1: Satellite Broadcasting Services - SatMagazine with the new Chairman and CEO of one of the leading VSAT companies, Gilat. There is also an article on innovation in the in the satellite

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Page 2: Satellite Broadcasting Services - SatMagazine with the new Chairman and CEO of one of the leading VSAT companies, Gilat. There is also an article on innovation in the in the satellite

SATMAGAZINE.COM

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November 2004

Click on the title to godirectly to the story

3 / Note from the Editor

4 / Calendar of Events

5-8 / Featured Event: ISCe 2005

9-11 / Industry News

12-14 / Executives Moves

15-17 / New Products

38 / Market Intelligence: Three A’s for

VSAT-presented by the Global VSAT Forumpresented

40 / Stock Monitor / Advertiser’s Index

.

By Bruce Elbert

By Juan M. Martinez

Vol. 2 No. 7, November 2004

TABLE OF CONTENTS

18 / What is a VSAT? 23 / VSATsInstallationTools forCost-EffectiveDeployment in a

Consumer Market

27 /Doomsday“Liquidation”for Voom?

30 / Satellites Help Forecast Major Earthquakes

By Chris Forrester By Tom Bleir

Integrasys’ SatmotionPocket simplies anddramatically reduces costof consumer VSATinstallation andcommissioning.

The satellite industry needsmore HD, not less, andVoom seems to be soundvalue for money.

QuakeFinder develops asatellite and ground-baseddetection method that,when completed andtested, would allow forwarning of an earthquakeone week in advance.

33 /Middle EastSatellite Turmoil

ArabSat, Nilesat andNoorSat compete forviewer loyalty in theKingdom of Saudi Arabia.But there is also opti-mism for co-operationamongst the various pay-TV platforms.

By Chris Forrester

VSATs can better addressvertical markets in suchareas as rural communica-tions to developing regions,disaster recovery, temporaryservices and others. Thereare bottlenecks that impedegreater reliance on VSATs,but there are also solutions.

COVER STORY FEATURES VIEWPOINT

EXECUTIVESPOTLIGHT

REGIONALUPDATE

33 /Interview with Gilat Chairman and CEO Shlomo Rodav

REGULAR DEPARTMENTS

VSAT market leader GilatCEo Shlomo Rodavspeaks to SatMagazineon a wide range ofissues.

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November 2004

Satnews Publishers is the leadingprovider of information on theworldwide satellite industry. Foremore information, go towww.satnews.com

Cover Design by: Simon Payne

Published monthly bySatnews Publishers800 Siesta Way,Sonoma, CA 95476 USAPhone (707) 939-9306Fax (707) 939-9235E-mail: [email protected]: www.satmagazine.com

Baden WoodfordContributing Writer, Africa

Jill Durfee([email protected])Advertising Sales

Joyce Schneider([email protected])Advertising Sales

Copyright © 2004Satnews PublishersAll rights reserved.

EDITORIALSilvano PaynePublisher

Virgil LabradorManaging Editorand Editor, North America

Chris ForresterEditor, Europe, Middle Eastand Africa

Bernardo SchneidermanEditor, Latin America

Peter GalaceEditor, Asia-Pacific

John Puetz, Bruce ElbertDan Freyer, Howard GreenfieldContributing Writers,The Americas

David Hartshorn, Martin JarroldContributing Writers, Europe

VSATs Maybe the New Killer App

NOTE FROM THE EDITOR

At the recently-concluded SATCON Conference and exhibition in New York last month, The

Global VSAT Forum’s peripatetic and hard-workingExecutive Director, David Hartshorn was veryebullient over the VSAT market. He said that despitethe “apocalyptic” decline in the satellite industry inthe past three years, the VSAT market has actuallygrown by a average annual compounded rate of 27

percent during the same period.

It does appear that the VSAT market may be set for take off. VSATshave been around almost since the beginning of the commercialsatellite industry. The VSAT industry has grown since NASA’s ATSsatellite and India’s SITE program experimented with VSATapplications for distance education in the early 70s. Now, with thefalling cost of VSAT equipment--VSAT applications cut across theboard for any enterprise or organization requiring broadband access.There are even hybrid solutions which integrate VSATs with Wi-Finetworks.

This special VSAT issue of SatMagazine provides a comprehensiveview of this growing market. Our resident expert, Bruce Elbert givesan overview of the technology ad and its potential. We also have ainterview with the new Chairman and CEO of one of the leading VSATcompanies, Gilat. There is also an article on innovation in the in the satellite industry on page 7.

On another note--a major milestone was reached last month with thesuccessful flight of the Burt Rutan designed SpaceShipOne, claimingthe $10 million Ansari Prize for the first privately funded space flight.Already, Billionaire mogul Richard Branson announced that VirginAtlantic will be licensing Rutan’s design to launch the firstcommercial space flights by 2007.

The opening up of space to commercial tourism will certainly have aspillover effect on the satellite industry. It will open up yet anothermarket for expertise, technologies and equipment engendered by theindustry.

We do really live in interesting times.

n-

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November 2004

CALENDAR OF EVENTS

November 3-4, Moscow, Russia Broadband Russia and CIS Summit 2004 Elena Peredel’skaiaTel: + 44 (0)20 7596 5205/ 5000Fax: + 44 (0)20 7596 5208Email: [email protected]: www.broadband-conference.com

November 3-5, World Trade Centre, Mumbai, IndiaSatellite & Cable TV India Tradeshow 2004,Contact: Dinyar ContractorTel. +91-22-5660 4029, Mobile: +91-22-33-346927Fax: +91-22- 2496 3465,E-Mail: [email protected]: www.scatindia.com

November 9-13, Hanoi, VietnamVietnam Telecomp 2004Web: www.adsale.com.hkTel: (852) 2811 8897Fax: (852) 2516 5024Email: [email protected]

November 17-18, London, UK6th Annual Global MILSATCOM ConferenceJamison NesbittTel +44 (0) 20 7827 6746E-mail: [email protected]

November 19, London, UKVSATs: Satellite Solutions and the Bottom LineJamison NesbittTel +44 (0) 20 7827 6746E-mail: [email protected]

November 29-30, SingaporeVSAT Satellite CommunicationsAmy TanTel: (65) 6536 8676 / Fax: (65) 6536 4350Email: [email protected]: www.abf-asia.com

November 30-December 3, Strasbourg, France9th Annual ISU International Symposium on “Civil,Commercial and Security Space”E-mail: [email protected]

December 2-5, World Trade Center, Istanbul, TurkeyBroadcast, Cable & Satellite eurasia 2004 – A CeBIT Event- Fair and ConferenceHannover-Messe International IstanbulUfuk AltintopTel: +90.212.334 69 12 (direct) +90.212.334 69 00Fax: +90.212.334 69 34E-mail: [email protected]: www.cebit-bcs.com

December 7-8, Shangri-La, Pudong, Shanghai, ChinaEmergency Communications Asia 2004Wendy TayTel: +65 6322 2708Email: [email protected]: www.terrapinn.com/2004/eca_CN

2005January 16-19, Honolulu, Hawaii, U.S.A.PTC ‘05Debbie KamealohaTel: +1.808.941.3789 ext. 129Fax: +1.808.944.4874Email: [email protected]: www.ptc.org

February 2-3, Le Meridien Etoile, Paris, FranceSatCom Europe 2005Stefan Nilsson Tel: +44 (0)20 7827 5997Fax: +44 (0)20 7242 1508E-mail: [email protected]: www.terrapinn.com/2005/satcom

February 14-18, Johannesburg, South AfricaSatCom Africa 2005Richelle SherE-mail: [email protected] Tel: +27 11 516 4052 / Fax: +27 11 707 9965Website: www.satcomafrica.com

April 11-14, Istanbul, TurkeyCaspian Telecoms 2005Elena Peredel’skaiaTel: + 44 (0)20 7596 5205/ 5000Fax: + 44 (0)20 7596 5208Email: [email protected]

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November 2004

FEATURED EVENT

ISCe 2005:Higlighting Innovation and theDirect Broadcasting Industry

ISCe will be introducing two new features in 2005-- The Carmel Group’s higly succesful 10th Annual Forum onSatellite Entertainment/DBS: The 5 Burning Questions, will be be held in combination with the ISCe event for the firsttime. In addition, ISCe will be debuting its Gallery of Innovation feauring innovative and groundbreaking productdemonstrations for homeland security, wireless communication systems, broadband, military and government solutions,fixed and mobile platforms, space systems, and consumer applications. To prodive more insight and background on thesetwo new features of the ISCe event, we present two articles on the U.S. DBS market and innovation in the satellite industry:

Top-Tier TV and Radio:

U.S. Consumer SatelliteServices

By Jimmy SchaefflerThe Carmel Group

The U.S. Direct Broadcast Satellite(DBS) and satellite radio taxonomy is

one of the most fascinating andprovocative within today’s telecombusinesses. Both sets of providerscontinue to garner hundreds ofthousands of new subscribersnationwide every calendar quarter. Theyalso gather consistent consumer interestin the form of strong headlines andspecial programming packages andpersonalities, both sets of which cannotbe heard or seen by or from theirterrestrial competitors – which includeAM and FM radio (in the case ofcompetitor satellite radio), and cablebroadcast and telephony (in the case ofDBS). Howard Stern is the mostnoteworthy on the satellite radio side,while huge 2004 subscriber growth fromDirecTV is the big-ticket headline on thisyear’s DBS side.

U.S. DBS: What’s Ahead?

Three players make up U.S. DBS today,and two of the three hold almost 100% ofthe subscriber market share. News Corp.-controlled DirecTV holds an estimated56.2% as of end-of-third-quarter 2004,while the Number Two in the U.S. DBSindustry, EchoStar, controls 43.6%. Year-

old Voom, with a strong High DefinitionTV (HDTV) programming line-up, has nowgarnered an estimated 46,000 subscribers,equaling 0.2% of the U.S. DBS market.

The Carmel Group projects that as ofyear-end 2008, these three players willhave built up a subscriber war chest ofnearly 32.5 mil. subscribers. Presently,cable holds approximately 65 mil. of

Long Beach, California May 31-June 2, 2005

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November 2004

FEATURED EVENT

today’s 107 mil. U.S. TV Households(TVHHs), while today’s overall U.S. DBSsubscriber count measures an estimated24.056 mil. between DirecTV’s estimated13.530 mil., EchoStar’s estimated10.480 mil., and Voom’s estimated46,000 subscribers (See “Total U.S.DBS Subscribers”).

Where U.S. DBS will make its mainstrategic play against thebroadcasters, on one hand, andagainst the wired duo, i.e., cableand telephony, on the other, is inthe delivery of plentiful qualitydigital video, together withadvanced services such as HDTV,Digital Video Recorders (DVRs) andInteractive TV (iTV).

Sat Radio’s Future

Recent announcements of exclusivetop-brand content — either newlycreated for the satellite radiomedium or brought over from rivalterrestrial radio – suggest that theearly battleground for satellite radiowill involve the programming turf.Not unlike DirecTV and EchoStar intheir early days, both XM andSirius are trying to take awaymillions of new subscribers fromtheir AM & FM terrestrial rivals, byway of differentiation. Theircollective and separate lines ofthinking are also parallel to theirtechnology cousin, DBS, and that is“Get New Subscribers, KeepExisting Ones.”

Toward that end, Sirius had theearly sports-centric subscriber drawwith its exclusive NFL package,however, recently XM signed an 11-year $660 mil. exclusive deal withMajor League Baseball (MLB) tocarry more than a decade’s worth ofall MLB games. Earlier, as just abouteverybody in America knows, Sirius

signed a five-year deal for $500 mil. withAM-radio personality, Howard Stern,which was preceded by XM’s excusivedeal with counterparts Opie & Anthony.

Although many pundits suggest thenumber of these deals are limited, TheCarmel Group believes the dial has plentyof room left for other exclusive deals that

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November 2004

are aimed at drawing significant niches ofprogramming audiences to their XM orSirius services in that race for theMultichannel Holy Grail: MoreSubscribers.

The Carmel Group also believes stronglyin the future of satellite radio, notingconservatively that almost 30 mil.subscribers should be owned by thecombination of the duopolists, XM andSirius, by year-end 2008. Today, XM, asof the end-of third quarter 2004, maintainsa large lead in the U.S. satellite radio race,with an estimated 2.573 mil. subscribersand a 79.7% market share. Runner-upSirius holds an estimated remaining656,000 subscribers (700,000 subscribersas of October 18, 2004), which accountsfor a 20.3% market share (See chart below,labeled “Total U.S. Satellite Radio Subs”).

The Carmel Group Announces DBS/SatRadio Forum

For a mid-year in-person 2005 update onthese industries (and a unique networkingand marketing opportunity), The Carmel

FEATURED EVENT

by Virgil Labrador

Jimmy Schaeffler, Chairman,CEO, and Senior ResearchAnalyst for The Carmel Group,is a three decade-longtelecommunications, computerand media industry veteran. He can bereached at [email protected]

U.S. Consumer Satellite Services, con’t..

Innovation is truly the hallmark of thecommercial satellite industry. Without

innovative there wouldn’t be a satelliteindustry as we know it today. It wastherefore appropriate that in the last ISCeshow in Long Beach, California, Dr.Harold Rosen was awarded a lifetimeachievement award for his contributionsto the advancement of satellitetechnology.

Dr. Rosen and his team at Hughes AircraftCompany (later known as Hughes Spaceand Communications Company and nowBoeing Satellite Systems, Inc.) developedthe spin stabilization technology thatmade possible the launch of the firstcommercial geosynchronous satellite,Syncom-1. (For an account of Dr. Rosen’spivotal role in the history of satellitecommunications, see Satnews’ series onhistory of satellites at http://www.satnews.com/satbook/chap3-what-hath.html)

Dr. Rosen’s major insight was that asatellite made to spin at a constant ratewould have the necessary stability thatprevious versions had lacked. Rosen’ssystem used solar panels and spin-basedimpulses to control the satellite’sthrusters economically, and a revolvingantenna pattern that always encompassedthe earth as the satellite spun. The teamdecided to call their satellite “Syncom”short for synchronous communications.

Communications satellites before Rosen’sSyncom used low earth orbits (LEOs).Huge swiveling ground antennas andexpensive tracking computers wereneeded to stay in contact with these LEOsatellites during the brief time they soared

Dr. Harold Rosen receivng the ISCe lifetime achievement award. In photo isAndrea Seastrand of the California Space Authority and D.K. Sachdev, Presidentof SpaceTel Consultancy (both are ISCe Advisory Board members).

Innovation is theHallmark of theSatellite Industry

Group further suggests that readers ofthis column set their calendars for TheCarmel Group’s 10th Annual Forum,entitled Satellite Entertainment/DBS:The 5 Burning Questions, to be held incombination with the 4th Annual ISCeConference, Wednesday, June 1, 2005, atthe Hyatt Regency in Long Beach, CA.Topics to be discussed include newsatellite TV and radio services andcontent, as well as DBS Applications inthe FSS and Other Emerging GlobalMarkets, Financial, Regulatory and LegalIssues (and Opportunities!), HDTV,DVRs, VOD, Broadband, iTV andEverything New!, and, finally, SatelliteIdeology: A CEO Perspective.

For more information on this event and itsschedule go online towww.isce2005.com.

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ISCe, one of the leading satellite and communicationsevents, will launch The Gallery of Innovation during thefourth annual ISCe Conference and Expo, which will be heldMay 31 to June 2, 2005 at the Hyatt Regency Hotel in LongBeach, California. The Gallery of Innovation will presentinnovative and groundbreaking product demonstrations forhomeland security, wireless communication systems,broadband, military and government solutions, fixed andmobile platforms, space systems, and consumerapplications.

“We are excited about how this new program offers selectcompanies the exclusive opportunity to promote anddemonstrate their new and innovative products orservices,” said Art Paredes, ISCe chairman. “At ISCe 2005,there will be a highly qualified audience of media, industryanalysts, investors and key industry decision-makers whowill get the first look at the most innovative and newproducts or services available to the satcom industry.”

Companies selected to participate in the Gallery ofInnovation will have the opportunity to provide productdemonstrations to a targeted and decision-making audienceduring the ISCe conference program during two distinctiveevents.

The first exclusive opportunity will occur on Tuesday, May31, 2005, during a half day demonstration during which

FEATURED EVENT

Hannover Fairs USA to Debut Gallery of Innovation at ISCe 2005

Virgil Labrador is the ManagingEditor of SatMagazine. He can bereached at [email protected]

overhead. In contrast, a synchronoussatellite could communicate directly andcontinuously with any ground station inits line of sight using fixed antennas. Nocomplex tracking antennas were necessary.Synchronous altitude also meant that asatellite would be in sunlight 99 percent ofthe time over the course of a year,eliminating the need for an activetemperature control system.

The holder of over 60 patents, Dr. Rosensaid, “I fully expect the remarkableadvances in communication satellitesystems-a six order of magnitude costreduction in the per channel cost of TVreception in the past 40 years, for example-to continue unabated into the future,

thanks to the dedication of the thoseworking in this fascinating field.”

The satellite industry is replete withvisionary innovators like Dr. Rosen.Without constant innovation, thesatellite industry would not have growninto the $100 Billion a year industry thatit is today.

Dr. Rosen’s advice to would-beinnovators: “If you have whatyou think is a good idea;don’t get discouraged if ittakes awhile to bring it tofruition. It sometimes takes alot of perseverance to make

even good ideas happen. That wascertainly true with Syncom.”

He added, “I felt that better internationalcommunications would be good for theworld, that among other things theywould make people less fearful of othersin distant lands.” SM

Gallery of Innovation participants will give a live, 10 minute demoto a select audience of industry analysts and media/presspersonnel.

During the following two days, Wednesday and Thursday, June 1and 2, 2005, participating companies will also demonstrate theirproducts and/or services in individual demonstration booths withinthe Gallery of Innovation “Showcase” area. This exclusiveshowcase area will be located right outside the ISCe conferencemeeting rooms.

Additionally, participating companies will be included in a specialGallery of Innovation section of the Official ISCe Program Guide,ensuring high visibility to attendees, as well as exclusivepromotional announcements, PR opportunities, and more.

Companies interested in demonstrating their products or servicesmust submit an application form describing their unique product orservice they wish to present. The ISCe Advisory Board will reviewthe submissions to determine if the application falls under thecategory of “new and innovative.” Accepted applicants will thenbe notified of their acceptance into the demo program and will alsobe invited to participate in the Gallery of Innovation showcase.

Companies interested in being considered for participation in TheGallery of Innovation should contact Gina Lerma at (310) 410-9191or [email protected], or visit www.isce.com to download anapplication form. Deadline for consideration is March 16, 2005.

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November 2004

INDUSTRY NEWSArianespace to Launch 50Nanosatellites in Historic Mission To celebrate the 50th anniversary of the launch of the first man-made satellite, Arianespace will launch a cluster of 50nanosatellites for the International Astronautical Federation(IAF) in 2007. Each nanosat will weigh about one kilogram, and will be dedi-cated to a scientific experiment under the responsibility ofresearchers at universities or other organizations. Arianespacesaid all 50 of the nanosats will be launched at the same time, onone rocket, from the French company’s launch facility in FrenchGuyana. The nanosats will last in orbit for about 2 years. Eachnanosatellite to be orbited will represent a different country. The mission was first proposed by the Russian Space Agency atthis year’s IAF Congress in Canada to commemorate the firstsatellite launch in 1957. The Russian space industry and IAF, inpartnership with the leading space agencies from around theworld, are supporting the mission. Jean-Yves Le Gall, Arianespace CEO said the company is veryproud to be participating in the commemoration. “We havealready orbited some 40 auxiliary payloads of the same type wewill launch in 2007. Just like 50 years ago, when the first man-made Earth satellite was launched, these nanosatellites willsignal a new era for scientists worldwide,” he said.

ILS Proton LaunchesAMC-15 Satellite A Russian Proton launch vehicle placed SES Americom’s AMC-15 satellite into orbit last October 15. The Proton lifted off at 3:23a.m. in Baikonur with spacecraft separation from the Breeze Mupper stage nearly seven hours later, at 10:18 a.m. (12:18 a.m.EDT, 4:18 GMT). AMC-15, an A2100 model satellite built by Lockheed MartinCommercial Space Systems, carries both Ku- and Ka-bandpayloads. SES Americom’s customer for this satellite isEchoStar’s DISH Network direct-to-home service. The successful launch is the third satellite to be launched by ILSfor SES Americom this year. ILS started its launch year inFebruary by orbiting the AMC-10 satellite on an Atlas vehicle,and it launched AMC-11 in May on another Atlas. The tworemaining Americom payloads are set for December launches,

A Russian Proton launch vehiclelifts off putting the AMC-15satellite into orbit Friday. (ILSphoto)

with AMC-16 satelliteon an Atlas V vehicleand WorldSat 2 onanother Protonvehicle. Dany Harel, SESAmericom vicepresident for satelliteand space systems,said the Proton BreezeM launch was picture-perfect in the darkenedskies over Kazakhstan,and on spec as wemonitored every stage.“We thank the ILSteam for deliveringAMC-15 into transferorbit. Now we and ourLockheed Martinspacecraft partnerscan get the satelliteready for service toour customer,EchoStar, by Decem-

ber,” he said.

Loral and Creditors’ CommitteeFinalize Terms of Reorganization Loral Space & Communications Ltd. (BULLETIN BOARD:LRLSQ) and the Creditors’ Committee appointed in the chapter11 cases of Loral and its subsidiaries have reached an agreementon the revised economic terms of a proposed plan of reorganiza-tion. With the agreement, Loral said it is set to file a revised Plan and aDisclosure Statement with the Bankruptcy Court by October 22,2004. Approval of the plan will allow Loral to exit chapter 11under current management in the first-quarter of 2005. The planrevises the terms of a plan previously filed on August 19, 2004. Under the revised plan, Loral’s two businesses, Space Systems/Loral and Loral Skynet, will emerge intact as separate subsidiar-ies of reorganized Loral (New Loral). Space Systems/Loral, thesatellite design and manufacturing business, will emerge debt-free.

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INDUSTRY NEWS

The common stock ofNew Loral will beowned by Loralbondholders, LoralOrion bondholdersand certain otherunsecured creditors. Inaddition, bondholdersof Loral Orion andother unsecuredcreditors of LoralOrion will receive anaggregate of $200million in new seniorsecured notes to beissued by reorganizedLoral Skynet, NewLoral’s satelliteservices subsidiary.

Space Systems/Loral’s Assembly,Integration and Test (AIT) facilityin Palo Alto, California. (LoralSpace photo)

Loral Orion unsecured creditors also will be offered the right tosubscribe to purchase their pro-rata share of $30 million in newsenior secured notes to be issued by reorganized Loral Skynet. Based upon current estimates, creditors of Space Systems/Loral,Loral SpaceCom Corp. and Loral Satellite, Inc. will be entitled toshare in a recovery consisting primarily of cash, as well as NewLoral common stock that is expected to result in a blendedrecovery of approximately 33%, subject to significant decrease inthe event claims materially exceed current estimates. Approval by the Bankruptcy Court of the plan will enable theNew Loral to emerge as a public company that will seek listing ona major stock exchange. Under the plan, existing common andpreferred stock will be cancelled and no distribution will be madeto current shareholders, Loral said.

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INDUSTRY NEWS

New Skies to Provide SatelliteServices in Japan

New Skies Satellites N.V.(NYSE:NSK) (AEX:NSK) wasawarded last October 10 aRadio Station License by theJapanese Ministry of InternalAffairs and Communications.The license, in combinationwith the Telecom BusinessRegistration granted to NewSkies in July this year, enablesthe company to offer interna-tional and domestic satelliteservices directly to bothJapanese and non-Japanesecompanies for links to, fromand within Japan.

Scott Sprague, New Skies’ senior vice president said the authorizationwill allow New Skies customers to access its global network directlyfrom Japan for domestic and international transmissions. “This opens up a highly developed market and a world leader in digitalvideo and high-definition television to New Skies’ high-powered Ku-band video contribution and distribution network, as well as to ouradvanced portfolio of Internet and data services,” he said. Samantha McCloskey, New Skies’ vice president, special event services,said since the company brought its ad hoc bookings in-house two yearsago, business from special events transmissions doubled. “With this authorization to access the Japanese market, we plan to usethis experience to target one of the world’s most advanced broadcastingmarkets with one of the world’s only all Ku-band digital transmissionnetworks, starting with this service for the Japanese Grand Prix,” shesaid. Concurrently, New Skies announced that it has been chosen by TheWire & Wireless Group to provide several European broadcasters withlive digital coverage of Formula One racing from the Japanese Grand Prixin Suzuka, Japan. The service, which will take place between October 8 -10, 2004, will employ the NSS-6 and NSS-7 satellites to deliver the entireevent, including the practice, qualifying and race sessions, to audiencesthroughout Austria, Germany, Italy and Switzerland. Earlier, the Wire & Wireless Group tapped New Skies for the digitalcoverage of Formula One racing from the Japanese Grand Prix in Suzuka,Japan. The service employed NSS-6 and NSS-7 satellites to deliver theentire event, including the practice, qualifying and race sessions, toaudiences throughout Austria, Germany, Italy and Switzerland.

SM

New Skies will be employingNSS-6 and NSS-7 for the satelliteservices in Japan.

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November 2004

EXECUTIVE MOVESNASA Names RexGeveden New ChiefEngineer NASA Administrator Sean O’Keefe hasnamed Rex Geveden as the agency’s chiefengineer and director of the independenttechnical authority, effective Nov. 1, 2004. Geveden succeeds Theron Bradley, Jr.,who announced his retirement Oct. 4 aftera distinguished career as a senior man-ager and nuclear engineer with the U.SNavy’s nuclear propulsion community.Bradley had been chief engineer at NASAsince June 2002. A native of Mayfield, Ky., Geveden wasdeputy director of NASA’s MarshallSpace Flight Center, Huntsville, Ala. sinceJuly 2003. As chief engineer he is respon-sible directly to Administrator O’Keefe forthe overall review and technical readinessof all NASA programs. The Office of theChief Engineer assures that the develop-ment efforts and missions operations arebeing planned and conducted on a soundengineering basis with proper controlsand management of technical risks. At Marshall, Geveden shared responsibil-ity for one of NASA’s largest fieldinstallations, which has more than 6,500civil service and contract employees anda $2.3 billion annual budget. He previ-ously served as deputy director ofMarshall’s Science Directorate, leadingresearch and development projects inspace science, materials science, biotech-nology, Earth science and space optics. He also led NASA’s Gravity Probe B (GP-B) program, steering development ofsophisticated hardware designed to testtwo features of Albert Einstein’s Theoryof General Relativity. The GP-B spacecraftwas successfully launched earlier thisyear from Vandenberg Air Force Base,Calif.

Geveden also was project manager forseveral other successful efforts, includingthe Optical Transient Detector andLightning Imaging Sensor Earth-orbitingsatellites, which produced data for theworld’s first global map of lightning. He served as chief engineer for theWaves in Space Plasmas project, a studythat involved the measurement of thecharacteristic frequencies of plasma, theform of matter that comprises more than99 percent of the visible universe. As manager of the Microgravity Scienceand Applications Department at Marshall,Geveden led a team of 350 scientists todevelop safer and more cost-effectivematerials for future missions and investi-gations into the reaction of chemicals in amicrogravity environment. His organiza-tion delivered many of the early payloadsto the International Space Station.

NASA AdministratorNames New ChiefScientist NASA Administrator Sean O’Keefe hasappointed Dr. James B. Garvin, chiefscientist for NASA’s Mars and lunarexploration programs, as the new ChiefScientist, effective immediately. Grunsfeld is training for an astronautassignment to a long duration mission,the specifics of which will be announcedat a later date. He will also provide expertsupport and counsel to NASA’s Astro-naut Office. Grunsfeld was appointedNASA’s Chief Scientist in Sept. 2003. Hehas been supporting AdministratorO’Keefe at in Washington directingNASA’s space-based science objectivesand ensuring the scientific merit ofagency programs. “John’s extensive background in physicsand astronomy, together with his un-

matched hands-on experience in conduct-ing science operations in space, made himthe ideal advisor to steer agency sciencedecisions during his management tenurein Washington,” Administrator O’Keefesaid. “His unique skills will be sorelymissed here, but I know he will continueto provide his valuable input to thedecision process from his Johnson SpaceCenter vantage point as well.” Garvin, who earlier this year announcedthe Mars Exploration Rovers had foundstrong evidence liquid water once existedon the martian surface, will work to ensurethe scientific merit of NASA’s programs,including those embracing exploration. Grunsfeld is a veteran of four SpaceShuttle flights and five successfulspacewalks to upgrade the Hubble SpaceTelescope (HST). Grunsfeld received a bachelor’s degree inphysics from the Massachusetts Instituteof Technology in 1980. He earned amasters degree and a doctorate in physicsfrom the University of Chicago in 1984and 1988, respectively.

Swales AerospaceAppoints James T.Brady to Board ofDirectors

Swales Aerospace has announced thatJames T. Brady, Mid-Atlantic ManagingDirector of Ballantrae International, Ltd., amanagement consulting firm, has joinedSwales’ Board of Directors. Brady has over forty years experience inbusiness and financial management. Hecurrently serves on the Board of Directorsand is Chairman of the Audit Committeefor Constellation Energy Group,McCormick & Company, Inc., T. RowePrice Group, Inc., and Aether Systems,

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Executives Moves○

Inc. From May 1995through April 1998,Brady served as theSecretary ofMaryland’s Departmentof Business andEconomic Develop-ment. Prior to his service as

Secretary, Arthur Anderson LLP employedMr. Brady for thirty-three years. Duringhis last seventeen years there he wasManaging Partner of both the LongIsland and Baltimore offices. “As we focus more of our resources inpursuit of new opportunities for our smalland microsatellite capabilities and for ourthermal management technologies,

Brady’s extensive and diverse businessexperiences will be a valuable asset,” TomWilson, Swales CEO said. Brady, who resides in Frederick, Mary-land, holds a bachelor’s degree inBusiness Administration from IonaCollege. He holds three honorary doctor-ate degrees from Iona College, Villa JulieCollege and Loyola College in Maryland.

Brady also has a long history of commu-nity leadership, including having servedas Co-Chair of two Maryland gubernato-rial transition teams, Board member ofMaryland Business for ResponsiveGovernment, Board of Visitors of theUniversity of Maryland BiotechnologyInstitute and many other business andadvisory councils.

Pace Micro PromotesChris Dinallo to VP ofTechnology Pace Micro Technology has appointedChris Dinallo to a newly formed positionof VP of Technology while Steve Paynehas joined the company as Director ofOperations & Finance. Based in BocaRaton, Fla., both executives report willdirectly to Mike Pulli, president of PaceAmericas. Pulli said Chris has shown remarkablevision and knowledge of where theindustry’s technology is heading. ”He willlead Pace’s technical strategy for the U.S.market going forward including OCAPand NGNA initiatives,” he said.

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Executives Moves Steve Payne’s business skills coupledwith his strong background in finance,operations and customer service in highgrowth markets, such as telecommunica-tions, are the perfect match to help leadour operations and finance initiatives aswe move to expand our footprint in theU.S. market, Pulli added. Chris Dinallo joined Pace in 2001 as ChiefTechnologist to focus on U.S. cabledigital set-top box development. In hisposition, Chris will continue his previousresponsibilities of technological direc-tions for set-top box development, whichinclude following industry standards,such as SCTE, OCAP and emergingNGNA initiatives. In addition, Chris joinsthe Pace Americas executive teaminvolved with on-going business, new

business development and direct techni-cal point of contact for MSOs. Prior to Pace, Chris was EngineeringDirector at Netspeak Corporation, a Voiceover IP (VoIP) software provider. Earlier inhis career, Chris was the SoftwareEngineering Director and Site Manager atOak Technology’s Software DesignCenter, and held various senior engineer-ing roles at IBM. Since 1984, Chris’ engineering disciplineshave been in the areas of operatingsystems, multimedia subsystems, MPEGvideo, DVD, and Voice over IP develop-ments.

Highlights of Chris’ career include manyof the world’s first innovations such as:

the rotational firmware for the world’s first2 ½” disk drive; co-developing the IBMDOS kernel that surpassed the 640KBmemory barrier; audio architect of IBM’sOS/2 Multimedia Subsystem; multimediaarchitect for the object-oriented sub-system residing beneath the Taligent OS;Dynamic boot-loader of the MACHmicrokernel as implemented in IBM’sWorkplace OS; and world’s first 32bitsoftware-only DVD 1.0 compliant play-back system built for personal computers.; and development of telephony ‘soft-switches’ for VoIP initiatives using H.323,MGCP and SIP protocols.

SM

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New ProductsDelphi to ManufactureSatellite Modems

Delphi Corp. (NYSE:DPH) will co-develop and manufacture thenext generation of transceiver modems for Stellar Satellite Commu-nications Ltd.

Delphi will supply two new models of two-way satellite communi-cator modems to Stellar including a high-volume telematics modemfor both mobile and fixed equipment applications. The othersophisticated Delphi modem will utilize sensors and software torelay information to and from equipment requiring advanced fieldintelligence, according to Jeff Owens, Delphi vice president andpresident of Delphi Electronics and Safety.

Both modems support global remote management of equipmentand assets through Orbcomm’s satellite network for two-waysatellite data communications. The modems will meet the rigorousperformance and reliability standards of Delphi products, and willbenefit the industry by providing a consistent supply of automo-tive-grade new and replacement modems.

Stellar will include the two modems in a number of differentapplications for industrial customers including commercial vehiclefleet and logistics management for trucks, barges, fishing vessels,locomotives, heavy machinery and containers. In addition, themodems can monitor fixed assets including pipelines, oil wells,energy meters and storage tanks to share information throughsatellite data messaging. The modems will be capable of providingtwo-way tracking and monitoring of gas and oil productionequipment, liquid petroleum operations, environmental andweather information and utility meters.

STMicroelectronics Adds Single-ChipDVB-S2 Silicon Tuner to Its SatelliteSet-top Box IC Family

STMicroelectronics (NYSE:STM) has announced the availabilityof a new Set-Top Box (STB) silicon tuner — the STB6100 – thatcomplies with the stringent requirements of the new DVB-S2specification for satellite broadcasts.

According to ST, DVB-S2 increases the capacity ofsatellite communications links by 30% compared tothe original DVB-S standard — close to thetheoretical performance limit - enabling the mosteffective deployment of high data-rate applicationssuch as HDTV (High Definition TV) and broadband Internet.

ST supplies silicon chips for set-top boxes — across satellite,cable, and terrestrial services - and was closely involved withthe DVB (Digital Video Broadcasting) technical groups workingto optimize the DVB-S2 specification. In May 2004 the com-pany announced the development of a modulator designcompliant with the new standard, which it is making availableto broadcast equipment manufacturers to enable them tointroduce equipment capable of broadcasting DVB-S2 signalsto ‘kick-start’ the market for DVB-S2 receivers. The STB6100tuner was developed in cooperation with RF Magic Inc.

The STB6100 is backwards compatible with current DVB-Sbroadcasts and can be used today as part of a DVB-S2-readyreceiver, ST said. With price an overriding concern for STBconsumers, the new device allows manufacturers to minimizetheir costs by using a single 32-lead package, with few sup-porting components, in place of the complex traditional discretetuner circuitry. In addition, it eliminates the need for specialistRF expertise as the RF processing circuitry is integrated ontothe chip. The STB6100, ST explained, is programmed through asimple two- wire serial interface, and is intended for use with an8PSK demodulator chip.

Comtech EF Data Releases Flexible,High Performance Multi-ChannelSatellite Modem

Comtech EF Data Corp., a subsidiary of Comtech Telecommuni-cations Corp. (NASDAQ: CMTL), has announced the availabil-ity of the CDM-Qx, the first 70/140 MHZ Multi-ChannelSatellite Modem packaged in a single rack unit chassis.

Comtech said the modem offers exceptional flexibility, redun-dancy and performance with four configurable slots. Theunique architecture, according to Comtech, allows cost-effective deployment of multiple modulators, demodulators ormodems.

Comtech said flexibility is integral to the CDM-Qx, with avariety of configuration options and support for an assortment

of interfaces. Data rates from 10 kbps to 20 Mbps are availablewith a frequency range of 50 to 90 and 100 to 180 MHz. TurboProduct Coding forward error correction, an array of modula-tion techniques and optional, built-in redundancy are all

Comtech EF’s Satellite Modem

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November 2004

NEW PRODUCTS

featured in the CDM-Qx. This product is interoperable with otherComtech EF Data modems, seamlessly integrating into existingnetworks.

CDM-Qx is the first Comtech EF Data modem to present thepowerful DoubleTalkä Carrier-in-Carrierä functionality. Designedfor bandwidth compression, Carrier-in-Carrier is based onApplied Signal Technology’s DoubleTalk™, which uses “Adap-tive Cancellation,” a patent pending technology that allows fullduplex satellite links to transmit concurrently in the samesegment of transponder bandwidth.

Loral Skynet and Remote WorkCentral to offer IP-based SatelliteTeleworking Solution

Loral Skynet has partnered with Remote Work Central, a providerof telecommuting and teleworking solutions worldwide, toprovide secure telecommuting and remote access connectivityservices to small and medium enterprises, including SOHOs(small and home offices), government and non-governmentorganizations (NGO), using Loral Skynet’s SkyReach i200 IP-based service.

With SkyReach, Remote Work Central will offer its customersInternet and email access, and file transfer applications. UsingVSAT satellite technology and Loral’s satellite fleet, SkyReachoffers two-way Internet connectivity at speeds of 2 Mbps on theforward link and 512 Kbps on the return link. Remote WorkCentral end-users will have access to a selection of on-siteequipment and various bandwidth options to meet specificnetworking needs.

Remote Work Central said it will initially install 50 sites through-out North America, Latin America and the Caribbean.

”Using state-of-the-art IP technology, SkyReach allows organiza-tions to create an instant network that can connect multiple sites,regardless of geographic location,” said Patrick Brant, president,Loral Skynet.

C-Com Launches New MobileHigh Bandwidth Service

C-Com Satellite Systems Inc. (TSX VENTURE:CMI) has teamedup with Ottawa based RAMTelecom to deliver high-speedsatellite based mobile Internet services using ViaSat LinkStartechnology.

RAMTelecom, through their Network Operation Center locatedin Ottawa, will be providing broadband services for the C- Comdeveloped iNetVu Mobile platform, which will be able to deliverupload speeds of up to 2Mbps and download speeds of up to60Mbps, according to a statement released by the two firms.

“The iNetVu Mobile antenna, which has been specificallymodified by C-Com to work with the Viasat LinkStar modems, willbe able to offer mobile customers operating from remote loca-tions the same instant high-speed and secure communicationsavailable today only to fixed users located in large metropolitanareas,” said Leslie Klein, President and CEO of C-Com SatelliteSystems Inc.

RAMTelecom President Ralph Misener said the system fullysupports different grades of high-speed data, Voice over IP andvideo sessions for those Enterprise clients who need immediateaccess to the Internet while on the move.

“Now customers can travel virtually anywhere within the satellitecoverage area, arrive at any destination and be connected to theInternet at high speed within minutes,” he said.

Conexant Introduces Single-Chip Set-Top Box Solution for Entry-LevelFree-to-Air Satellite Market

Conexant Systems, Inc. (NASDAQ:CNXT) has announced adigital video broadcast satellite (DVB-S) compliant set-top box(STB) system solution for the basic, entry-level free-to-air (FTA)market. The FTA market includes basic STBs that can receiveunencrypted content from international satellite broadcasters atno charge, and advanced STBs which allow users to viewadditional premium content for a small incremental cost.

Conexant said the low-cost CX24138 builds upon the technologyof the company’s CX2414X/5X interactive direct broadcastsatellite (DBS) system solution, and introduces a new feature-setand package required by manufacturers and operators in Chinaand other Asia-Pacific regions.

Free-to-air satellite and terrestrial services are gaining in popular-ity, particularly in Asia, the Middle East, North Africa andEastern Europe. FTA enables users to expand their viewingoptions beyond local broadcast content to a wide range of freeprogramming offered by international broadcast sources withoutsubscription. According to Michelle Abraham, a senior industryanalyst with In-Stat/MDR, the FTA STB market is expected toreach 45 million units in 2008.

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NEW PRODUCTS

Conexant’s CX24138 combines an MP@ML MPEG-2 videodecoder, a digital audio decoder, a programmable transportstream de-multiplexer, an on-screen graphics display controller, aQPSK demodulator/forward error correction unit, TV encoder,and a high-performance, embedded 32-bit ARM920T RISCprocessor with integrated peripheral I/O ports. This highlyintegrated solution enables a low-cost STB with proven perfor-mance.

Acura RL Debuts AcuraLink SatelliteCommunication System WithIndustry’s First Standard RealTime Traffic Feature

When it goes on sale October 14, the all-new 2005 Acura RLluxury sedan will feature the new AcuraLink satellite communica-tions system as standard equipment. This new system delivers

state-of-the art in-vehicle communication and is the first NorthAmerican application of a standard real time traffic informationsystem that puts continuously updated accident, constructionand flow (where available) information at the driver’s fingertips.

The AcuraLink real time traffic feature is reportedly the firststandard system to offer personalized traffic information relativeto the driver’s current location and destination. The frequentlyupdated traffic information is displayed graphically on the RL’snavigation system allowing drivers to avoid congestion andminimize drive time.

“Since the average rush hour commuter spends over 50 hours ayear sitting in traffic, this system gives RL owners a real advan-tage on the freeways,” said Tom Elliott, executive vice president,auto operations. “Unlike radio or television traffic reports, theRL’s real time traffic system provides a constant flow of relevantinformation reflecting conditions along a driver’s chosen route. Itreally should save people a lot of time and aggravation.” SM

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COVER STORY

What is a VSAT?Bruce ElbertPresidentApplication Technology Strategy, Inc.

The Very Small Aperture Terminal(VSAT) could probably be definedas a small satellite-earth terminal

intended for two way communications.The confusion comes about when we tryto define what, precisely, we mean by“small”. Coupled with this is a secondand equally important question regardingthe meaning of “communication”. In thisarticle, I attempt to shed light on thesequestions and address how VSATssupport a growing market for wide-areatelecommunications.

Executive Issues

The timing of this issue ofSatMagazine is synchronized with thejust-ended Satellite Applications Tech-nology Conference (SATCON), held inNew York on October 26 and 27. In conjunction with SATCON,the Global VSAT Forum (GVF) held its annual Summit andExecutive Roundtable. The session considered how VSATs canbetter address vertical markets in such areas as rural communica-tions to developing regions, disaster recovery and temporaryservices, backhaul in cellular and wireless data networks, andtransmission to and from oil and gas installations. Perhaps themost central issue for providers of networks in vertical markets isthat of size. Is the payoff worth the work and financial commit-ment needed to properly address a vertical market?

Disaster recovery poses the revenue challenge in that thebuyer only wants to pay when disaster strikes. The seller mustworry about how fixed costs for equipment, satellite capacity,staff, etc. can be amortized for customers that will not pay for anequivalent full time circuit. Strategies based on reduced fixedcharges coupled with higher usage charges are traditional in thissegment. The challenge for VSATs used by developmentagencies like the World Bank, US Agency for InternationalDevelopment and Medical Missions for Children is that while theneed is great, the financial resources are extremely limited.

The panel I chaired dealtmainly with VSATs used withinthe backbone infrastructure ofmobile telephone and wirelessdata (Wi-Fi and WiMAX)networks. In countries/regionslike Nigeria, Indonesia and theCaribbean, VSATs provide keybackhaul links between basestations on islands and intowns that are yet to be servedby fiber or microwave. InIndonesia, for example, eight C-band transponders on PalapaC2 are needed to provide theselinks to about 80 base stationsin the eastern half of thecountry. This is projected toexpand considerably in thecoming year as demand for

(GILAT photo) GSM cellular service increases. On the other handdevelopers of GSM and wireless services in these regions find that thcost of satellite bandwidth, which must be committed to on a long termbasis, can render extension of the service uneconomic.

What we see here is that developers and operators ofnetworks in these vertical markets are concerned not about thetechnology, but about the cost of acquisition and operation.There needs to be a strategy for each market that meets theparticular price point, yet delivers a service that is superior to thebest alternative. In what follows, I address key aspects of VSATsrelated to what they are, what they can do in vertical as well asother markets, and how one goes about putting them to use.

Definition from a physical perspective

Small is a relative term – particularly in comparison to anearth terminal with a large aperture antenna (between 3 and 13meters, depending on the frequency band, satellite and VSATrequirements). A large earth terminal is something that only anetwork operator would own and manage. Most VSAT networksemploy a large terminal for various functions, including networkmanagement, access to terrestrial networks (e.g., a gateway

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COVER STORY

Your Satellite Connection to the World

One moment. One satellite network. Infinite connections.

SES GLOBAL is the leading satellite services provider worldwide and is a byword for technical excellence and quality of service. We operate through a network of regional satellite

operators: SES ASTRA, SES AMERICOM, NSAB, AsiaSat, Star One, Nahuelsat, and WORLDSAT, each a leader in their respective markets, and together reaching out to 95% of the

world’s population via the world’s largest combined satellite fleet. They are the providers of choice for satellite capacity and transmission solutions for audio-visual broadcasting,

data transmission and communication networks, serving both commercial and government customers worldwide. Together we offer local expertise as well as global reach.

We make connections in the most unexpected places. Satellite services create the links that help people todo the most ordinary - and sometimes the most extraordinary - things. We really are part of the fabric of life.

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function), and sharing of the resource among a number of users.The VSAT, on the other hand, would be placed on the customerpremise and operated more like a cable modem or router, requir-ing little in the way of local support. Network management andgateway functions form the core of a hub station, historicallyrequiring a major investment in the range of $500,000 to well overa million dollars. The price of hub entry has been an impedimentto VSAT expansion, but there is a hub-less market that isgrowing in importance. Inherent in the hub-style network is astar topology wherein communications run between hub andVSAT on a single hop basis. Familiar networks of this typeinclude those used by Wal-Mart and the US Postal Service.Mesh networks, where VSAT connects directly to VSAT withoutpassing through the hub, are coming back into vogue. The USmilitary employ the mesh to provide connectivity within a theatreas well as between the theatre and a central command.

Providing VSAT technology involves more than stampingout reflectors and bending chassis out of sheet metal. Today’s

VSAT consists of hardware, computer processing power andmemory, and lots of software code. Furthermore, users of VSATsexpect that they can be installed quickly and almost anywhere.Timelines are measured in weeks and sometimes days. Somemarkets take this further to demand portability and mobility.Making such a VSAT work from an RF perspective at Ku bandfrequencies and mega-bit-per-second data rates also means thatthe effective area of the antenna must be sufficient. Thisamounts to an equivalent diameter of 90 cm to 1.8 m at Ku bandand 2 to 3 m at C-band (still popular in rainy regions like equato-rial Africa, South America, and Southeast Asia). Ka band VSATs,discussed in last month’s article, could bring the correspondingantenna down to 60 cm, provided that users accept a loweravailability in heavy rain.

Aside from size and base cost, VSATs must be easy tooperate and reliable, both in terms of the equipment (hardwareand software) and service. Acceptability in this area is based onexperience with devices you would purchase at a local consumer

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COVER STORY

electronics store and mobile phone shop. To use a VSAT, onewouldn’t want to be the satellite equivalent of a Cisco certifiednetwork engineer. In my experience, an administrative personwith interest in the particular application can provide whatevertending a VSAT needs. It is most important that someone beavailable to check both the terminal and the associatedapplication device in case of difficulty. Actual manage-ment and troubleshooting of the link can be providedremotely at the network operations center (NOC) or hubstation.

Definition from a technology perspective

The first VSATs might have been large by today’sstandards, but they were different as well in terms oftheir technology. Most were designed to provide adedicated point-to-point link (e.g., a nailed up circuit)that transparently passed a symmetrical bit stream inboth directions. Introduced first for the Intelsat Busi-ness Service (IBS) and later defined as Intermediate Rate(IDR) links, they can still be found in the cellularbackhaul and Internet extensions as well.

True VSATs in terms of dish size appeared some 15years ago to replace star data networks composed of theold multi-drop terrestrial leased lines employed in theIBM mainframe environment. These and other connec-tions supported proprietary data communicationsprotocols, and the VSATs and associated hubs werehighly proprietary as well.

Getting the data over the satellite involves thefamiliar multiple access techniques: time divisionmultiple access (TDMA), which is the most common inthe industry; frequency division multiple access(FDMA), best used for voice services or where atransparent link is needed; and code division multipleaccess (CDMA), now exploited for short burst transmis-sions with minimal delay and improved multiple accessefficiency.

VSAT networks now support the Ethernet localarea network (LAN) coupled with the Internet. IP-basedVSATs that connect to LANs now probably representover 90 percent of those sold for star networks, whichdominate the landscape. A couple of VSAT standardsthat support IP, namely Digital Video Broadcast – ReturnChannel by Satellite (DVB-RCS) and Data Over CableService Interface Specification (DOCSIS), are vying forattention and will eventually dominate the consumer and someenterprise sectors. However, any standard brings with it some

limitations in terms of user requirements that can be addressed.This is leaving some wiggle room for specialists who better

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address the needs of vertical markets andhigh-value special situations such as thoseaddressed at the GVF Summit.

Definition from an applicationperspective

The common theme of the VSAT useris, “I need connectivity out there!” Theywant to make phone calls, get access to theInternet, and reach into the enterprisenetwork. What information they actuallyput through the VSAT varies as much asthe basic communication mode just cited.And the platforms at the remote endlikewise can reflect extraordinary circum-stances. Some of the examples I have seeninclude: commercial and private jets,recreation vehicles, trailer parks, superyachts, luxury hotels on remote islands, andranches in places where one needs to drive two hours to find aworking telephone.

The VSAT network addresses the unique aspects ofsatellite communication (propagation delay, error rates andavailability) and interfaces with the user side. However, there willstill be challenges in meeting user requirements. The applicationsystem will likely include a LAN with attached client computers.Depending on the special nature of the user requirement andinformation delivery mechanism, other equipment and softwarewill likely be needed.

In my experience, most enterprise VSAT networks derivefrom a strategic need or application of some time. Examplesinclude the first department store credit-verification network forWal-Mart, and the pay-at-pump facility for Chevron. We nowfind strategic applications that are broadband in nature (ourworking definition of broadband is the transmission at 500 kbpsor greater), such as distance learning, private commercial videochannels and high-speed Intranet access in far-flung or mobileenvironments. What VSATs are required to do is deliver theseapplications in the same form and with the same quality ofservice as fiber. Cost, as we shall see, is another matter.

VSATs have an undeniable edge when it comes to multicastdelivery of files and multimedia content. Some readers may recallan Internet-fostered initiative of the 1990s called the MultimediaBackbone (MBone). This unceremonious name was coined foran overlay of the Internet that used special routers and serversto provide point-to-multipoint transfer of real-time streams ofvideo and audio, combined with text and graphic information.

Presentations at universi-ties and engineeringconferences were multicastto remote sites so individu-als and groups in meetinghalls could participate.Lacking true broadbandservices and a reliablebroadcast medium, theMBone largely disappeared,replaced perhaps by playertechnology from Microsoftand Real Networks. Now wefind that broadcasters likeDIRECTV and EchoStaroffer this kind of capabilityon a one-way basis; VSATservice providers add a bi-directional feature to betterserve users who need more

(DIRECTV photo) than a one-way channel.

Achieving a multimedia service is much easier now than itwas in the last decade with the appearance of off the shelfappliances and supporting software and protocols. A case inpoint is the Digital Content Distribution System (DCDS) devel-oped by SONY. Using custom software along with off-the-shelfsoftware, a management hub is established that takes care ofcontent acquisition and authoring, storage and retrieval,scheduling, delivery over a satellite link and quality control.SONY also produces a state-of-the-art video player called theNSP-1. This little device performs the function of content cache,multimedia processor and display controller. Taken together,DCDS provides impressive capabilities for networks thatproduce custom video and audio programming in retail and othercommercial environments.

Bottlenecks and their Removal

The executive session by the GVF clearly points to bottle-necks that impede a greater reliance on VSATs in verticalmarkets. To achieve the application benefits in a realistic mannercontinues to be a challenge. Here is a summary of the bottlenecks and suggestions for their removal.

Financial. The cost of VSAT hardware and software hasdropped substantially and no longer represents the hurdle itonce was. Today, potential buyers see very significant operatingcosts to cover satellite, hub and backhaul circuit usage. The usermay today be able to afford the cost, but cannot predict whattheir need will look like a year later. Therefore, what we need is a

COVER STORY

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system not unlike that of the disaster recoveryindustry. Under that scenario, the user pays arelatively low monthly charge and experiences anincreases when usage grows. A service agreementcould allow the user to modify or terminate thearrangement under reasonable financial conditions.We probably can no longer live in a world ofsatellite and teleport leases that effectively tie thecustomer to the operator for ones entire career.

Logistical. VSATs and hubs are fixed to oneplace. Traditionally, this required a permanentinstallation and a long operating life. The problemwith this approach is that it takes a lot of time to prepare the siteand get things installed and into service. The other side of thecoin is that most of these initial charges cannot be recoveredwhen service is terminated. What we need instead is fast deploy(and redeploy) of earth station equipment. The user and operatorwill have greater flexibility and sunk costs will go down. Higherequipment cost to provide this flexibility will be driven down asmore of it is fielded (right now, the market for a portable VSAT isten to twenty times that of a fixed installation). Looking at thehub, transportability amounts to installation in a suitable shelterthat can be placed on a flatbed truck. These are common in thecellular industry for temporary cell sites. Transportable VSATsand hubs would be flexible and resalable. Already, eBay isoffering DIRECTV and DISH network equipment and GilatSkyStar VSATs.

Security and confidentiality. Any organization that wouldput its internal data over a wireless link will be concerned aboutthe secure operation of the system. The technology for this, interms of encryption and conditional access, is readily available.Also, satellite wide area networks employ Virtual Private Network(VPN) security technology, such as IP-Sec, which protects dataand resources before information even reaches the VSAT or hub.There are still issues getting traditional security technology,such as IP Sec, to interface properly with the software of theVSAT. Recently, Gilat and HNS announced that they haveworking solutions, and other suppliers are talking this way aswell. I would therefore be confident that this particular bottle-neck can be opened for any new project.

Regulatory. Restrictions on the use of transmit earthstations have given VSAT network developers a lot of head-aches. In some countries, VSATs are almost impractical becauseof limitations posed by the local authorities. The GVF is a leadingforce for change in the world, working with operators, users,governments and the ITU to facilitate the expansion of thistechnology to places where it will do the most good. I recom-

Bruce Elbert has over 30 years of experi-ence in satellite communications and is thePresident of Application Technology Strategy, Inc., whichassists satellite operators, network providers and users inthe public and private sectors. He is an author and educatorin these fields, having produced seven titles and conductedtechnical and business training around the world. During 25years with Hughes Electronics, he directed major technicalprojects and led business activities in the U.S. and over-seas. He is the author of The Satellite CommunicationApplications Handbook, second edition (Artech House,2004). Web site: www.applicationstrategy.com / Email:[email protected]

COVER STORY

mend a careful reading of thewhite papers and initiatives ofthe GVF; readers can follow upwith the GVF for additionalguidance.

Resources. The finalbottleneck relates to directedresources needed to put VSATsinto practice. These includesuppliers, knowledgeable users,and the folks that will operatethe network once it is in and

working. I have seen many times that people almost anywherehave learned what they need to know to use satellite communica-tions and get the most from it. Much of this was gleaned in thefield and during training courses I’ve led for the US Telecommu-nications Training Institute and UCLA. The keys are: (1) findpeople who are interested and have a basic understanding of theapplication system itself, (2) survey the suppliers and make themshow you that they can do the job, and (3) allow the time tounderstand what you want to accomplish, how the project will bemanaged, and for proof of network performance as well astraining of staff.

Bottlenecks are not what they were back in the not-so“good old days”. We are at a time when VSATs are a knownquantity and when many organizations believe that they cansolve their problem. But, putting this together is still a fairlycomplex process. My recommendation is to take the time tostudy each and every element, from all dimensions (technical,management, application and financial). Ibelieve that the members of our industry arebetter prepared to help overcome the bottlenecks, and often all we need to do is ask forthe help. SM

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November 2004

FEATURES

The VSAT market has turned and focused into the consumer market, due

to the large volumes ofinstallations world-wide, openinga new world of possibilities andbusiness opportunities.

By its design, VSATs areconceived as Rx/Tx equipment.By its functionality, they areused for data, voice and videocommunications. By its dimen-sions they are very appropriateboth for civil (corporate net-works, emergencies, etc) andmilitary applications (supportand strategy). And, finally, itscapacity to offer broadband withcompetitive costs againstterrestrial networks, makes themthe future of the satellite indus-try.

Recent market analysis andforecasts indicate that there isactually room for satellite broadband technology in the con-vulsed scenario of telecommunications world, envisioning asteadily increasing penetration of this technology in the comingyears. This trend is backed by the inherent advantages ofsatellite communication systems, such as rapid deployment andlow initial investment to reach wide coverage areas; synergywith successful broadcast video services; reduced number ofoperations centres and direct provisioning.

There are very important technologies involved in newVSAT markets, such as the communication protocols(IP,ATM,MPEG) or the network topologies that have been welldeveloped to provide an excellent service; however, the busi-

ness issues currently rely on: low cost, high bandwidth, andeasy integration with other networks and applications .

There has been a great effort done by industry in reducingthe cost of VSAT equipment, to be able to compete withterrestrial networks in an open consumer market, but there areother costs involved, such as installation and commissioning,that still need to be addressed.

The VSAT world has had traditionally a high degree ofprofessionalism and costly personnel involved in installationand commissioning. The elements that compose a simpleinstallation (dish, horn, waveguides, transmitter, LNB, receiver)are easy to assembly, but their functionality and the operations

VSATs Installation Tools for Cost EffectiveDeployment in a Consumer MarketBy Juan M. MartinezIntegrasys, SA

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November 2004

to be performed to make themoperational (downlink alignment,configuration, line-up, fine adjust-ment and final commissioning) arequite complex and require time,skilled personnel and co-ordinationwith the NOC.

This is a real and hidden fact,which makes VSAT installationexpensive and do not allow to takefull advantage of the technologicaldevelopmentstowards costimprovementsuch asstandardisationefforts likeDVB-RCS,antenna andODU pre-assembly, IDUpre-configura-tion...

Thegreatestcompetitiveadvantagethat two-waysatelliteinternet

operators offer to potential customers is tobe able to cover areas where no othercommunications are available. These areasrepresent the real satellite businessopportunity, but increases very muchinstallation difficulties and costs, as nocommunications are easily available in thefield for NOC co-ordination.

In these areas, the installer has onlythe VSAT and the satellite, and possibly afield strength meter. He has not alwaysremote assistance, sometimes due totechnical reasons, other just because thereis no other way of communication with theNOC rather than the satellite itself. Mea-surement instruments are not alwaysavailable or the measurements are not validbecause the measurements required to

FEATURES

successfully complete the installation are not based on theVSAT transmitted signals, but those of the received downlinkand, by no means, the transmitted CW line-up carrier measure-ment information available at the NOC: EIRP level, cross-polarization isolation, interference.

Complex installations...and expensive

Back to basics, the theory is very clear: a misalignment of 1ºin the polarization of the reference axis causes small losses in thepolar coupling ( 20log(cos1º) = -0,001 dB), but increases 35 dB

Integrasys’SATMOTIONPOCKET (US patentpending 10/408710) isa simple and low-costtool for VSAT install-ers.

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November 2004

the x-polar component (isolationlost=20log(cos89)). Obviously, this is anundesirable effect in operation and not onlyfor that particular VSAT, but also for otherVSATs within the same network.

If this is a real fact for just one singleinstallation, how could it impact hundreds orthousands of simultaneous installations in anactual consumer market? What can be doneby the satellite operator to avoid thissituation? Will this business be, as it isdesired and expected, a big success or will itbe a chimera for all: users, installers andoperators ?

“Complex techniques,professional installations”. Thiswas the paradigm of the 20thcentury. However, already in the21st, it seems we have a new one:“Complex techniques, profes-sional installations, low cost “.

The satellite and the VSATis everything the installer haswhen he is on the roof...and all heneeds.

Integrasys, the technology-leader in Satellite Carrier Monitoring Systems, has developedSATMOTION POCKET (US patent pending 10/408710), thesimplest and lowest cost tool for installers to perform profes-

FEATURES

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November 2004

FEATURES

sional VSAT installations in the field without the need forspecial equipment nor additional expensive tools, instru-ments or knowledge.

The measurement system (spectrum analyzer, switch-ing matrix, server computer and server software) can behosted at the Hub station, NOC or at any other place underthe satellite fingerprint. Just using a satellite downlink and asimple PDA or laptop PC plus software, the installer receivesthe polar and x-polar information from the measurementsystem using the receiver portion of the VSAT he isaligning. The communication between the installer PDA andthe IDU is wireless, so a small wi-fi access point is con-nected to the IDU ethernet port allowing more than 50meters range up to the antenna. The lack of voice communi-cations between the installer and the NOC is no longer aproblem applying this solution; all the information regardingthe VSAT CW line-up carrier gathered by the NOC carriermonitoring system is made available in real-time to theinstaller hands.

The PDA user interface is simple, but highly powerfulin functionality; it manages both, the VSAT configurationparameters while graphically displaying in real time the CWcarrier as it is received by the NOC measurement system.The SATMOTION POCKET system puts on the installerhands a professional tool using a handy PDA or laptop PCwhich provides the installer with all the monitoring capabili-ties available at the NOC.

The system handles multiple concurrent line-ups bymeans of a multi-CW scheme where the measurementsystem is time-shared by up to 10 concurrent installers peranalyzer without performance degradation; configuringadditional analyzers into the system, it is possible tosupport any number of concurrent installations.

SUMMARY

Currently, VSAT consumer business deploymentexhibits hidden costs due to the required qualified installa-tion personnel and NOC co-ordination to perform installa-tions at the customer site.

The massive deployment of the two-way market nolonger can support this fact in terms of costs, time andquality.

Traditional measurement hardware plus controlsoftware modules combined with the Internet technologiesand quality measurement procedures are the guidelines that

SM

JUAN M. MARTINEZ,Product Manager, INTEGRASYS, SA

He holds a MSc in Telecommunications Engineering & MScin Software Development and a BSEE degree in Electronicequipment. With 10 year experience in telecommunicationproject management, he has had several key positions insoftware development , engineering and Sales Divisions indifferent telecom companies.He is currently Product Manager for Satellite Carrier Monitor-ing Product-line at INTEGRASYS, SA. He can be reached [email protected] or www.integrasys-sa.com

Integrasys has applied, by means of itsSATMOTION POCKET product, to simplifyand dramatically reduce costs of consumerVSAT installation and commissioning.

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November 2004

Doomsday “Liquidation” for Voom?By Chris Forrester

FEATURES

Voom is the catchy name given toRainbow Media’s HDTV satelliteplatform operating over the US.

Twenty-one superb HD channels comefrom Rainbow while another 80-odd aremade up of generally available HDservices as well as ‘ordinary’ standard-defchannels. However, a depressing reportfrom investment bankers Bear Stearnsstates that Voom might end up beingliquidated. Indeed, Bear Stearns is notalone with this Doomsday view. TomEagan of Oppenheimer and Co., in anOctober note to investors, said Voom willhave a difficult time growing subscribersdue to heightened HD competition,especially from DirecTV.

Rainbow Media Enterprises iscurrently a subsidiary of Cablevision, thegiant cable system where the Dolan family(founder Charles, and his two sons Jamesand Tom) sit in control. It is Charles whois highly supportive of the HD–on-satellite, and is backing a spin-off whereRainbow is floated as a separate busi-ness. Charles Dolan will be resigning hischair/CEO position on Cablevision’sboard. Bear Sterns states “we do notbelieve [new chair/CEO] James Dolan is aproponent of the satellite business”.Charles Dolan will still hold a significant(indeed, a controlling) number of sharesin Cablevision.

The detailed 62-page Bear Sternsreport, issued in October, pulls nopunches on the prospects for Voom,which uses a mix of its own satelliteRainbow 1, and 16 transponders of leasedcapacity from SES Americom, at about$1m per transponder/year for its transmis-sions. “We believe the Cablevision spin-off of Rainbow Media (RME) is part of alarger picture, that of a refocusing of the

parent company withnew priorities andleadership,” says thereport’s author, senioranalyst Raymond LeeKatz. Katz says postspin-off Cablevision’sinvestors will be morecomfortable with thebusiness as a longer-term investment thatmight lead to it outper-forming its peers. Thebankers talk aboutCablevision’s stockbouncing back to $28 ashare by the end of nextyear (it has been as lowas $16 over the pastyear, and is currently about $20). Bycomparison, Katz now values RME at abarely $2.60 a share (down from his earliervaluation of $8.68), and suggests thatprice could slip and slide down to $1.33following initial distribution of stock.

Cablevision has some spectacularassets under its belt, some 3m mostlyNew York-based subscribers plus the NewYork ‘Mets’ and ‘Nicks’, the MadisonSquare Garden (MSG) channel and FoxSports NY. But last month the Mets saidthey’d be launching their own channeleffective 2006.

RME has an estimated income thisyear of $1,026m, or 25% of Cablevision’stotal. The spin-off, initially announced inJune 2003, could now be in place by year-end, says Bear Stearns, and putting anend to the cash drain on Cablevision, butit stresses there could b e a very bumpyroad ahead especially given that Voomhas already spent around $1 billion (byDec 2004), with just 28,700 subscribers to

its name (at the end of August). In mid-October at a high-profile MIPcom event inCannes, on the French Cote d’Azur, GregMoyer, the recently appointed joint-CEOof Voom’s 21 HD channels (HD Originals),said that the market had to understandthat these early adopters had in effectsigned up during Voom’s soft-launchphase. There had been only limited test-marketing in specific markets, and besidesthere was a shortage of set-top boxes.Cablevision say that whatever thereasons, only 1200 homes were waitingfor signals/equipment, and that churn wasrunning at 30%, and twice the churn rateof DirecTV and Echostar. Moyer’s show-reel of HD content was spectacular, andmade compelling viewing.

Bear Sterns agree with the quality ofVoom’s content, saying Voom has acompetitive HDTV advantage (for the“short term”), and predict subscribersales this year of (to us a fairly optimistic)75,000, another 350,000 next year, 508,000in 2006, 508,000 in 2007 and then tailing

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November 2004

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off (because of the rival cable and DBSHD offerings) to 381,000 in 2008 and just286,000 in 2009. This is the nub of theproblem, and will lead, says the report, toa negative cash-flow of $477m this year,$612m next year with Voom “out ofcurrently available funds by early 2007”.Voom posted losses of $36m in Q1 2004and $61.6m in Q2 2004. Q3 2004 losses areexpected to exceed $80m.

Katz goes on to say that he does notexpect Charles Dolan to “quit the busi-ness with less than a year of operation,and with an estimated $650m available forfinancing, we recognise that [a liquida-tion] probability is still greater than zero.”Bear Stearns then present a LiquidationScenario, which includes (a small) chance

“With DirecTV expanding its HDofferings with four new satellites,[they] will have the capacity todeliver 1,000 additional local andhigh-definition channels as well as150 national high-definition chan-nels,” says Scott Kipp, contributinganalyst with The Diffusion Group.“This will put DirecTV in anexcellent position to grab a signifi-cant portion of the 70m US house-holds that will be “HDTV-ready” by2007.”

Voom’s threatfrom DirecTV

Rainbow Media’s assets(after spin-off)

♦ Rainbow Programming♦ American Movie Classics

o ‘WE’ Women’s Ent’to Indep. Film Ch.

♦ Mag Rack VOD channels♦ Rainbow HD (Voom)♦ IFC Films♦ IFC Productions♦ IFC Entertaiment♦ IFC Theatre♦ Rainbow Cinemas (263 screens)

Data: Bear Sterns

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November 2004

FEATURES

London-based Chris Forrester, a well-known broadcasting journalist is the Editor forEurope, Middle East and Africa for SATMAGAZINE. He reports on all aspects of theindustry with special emphasis on content, the business of television and emergingtechnologies. He has a unique knowledge of the Middle East broadcasting scene,having interviewed at length the operational heads of each of the main channels andpay-TV platforms. He can be reached at [email protected]

that Dolan would sell off Rainbow’ssatellite assets and spectrum, and “foldthat business”.

VVVVVoom – woom – woom – woom – woom – whahahahahat’t’t’t’t’sssssit about?it about?it about?it about?it about?Fee: $79.90 a month for full offering,$40 for ‘basic’ (everything exceptHBO, Showtime and other premiumchannels)Channels on offer:“The most HD, anywhere”, says Voom’s blurb· HD News· HD Cinema (1-6)· Classics· Epics· Gunslingers· Divine HD· Monsters HD· Equator HD· WorldSport HD· Rush HD· Rave HD· Ultra HD· Auction HD· Gallery HD· MOOV HD· Animania HD

owned satellite “Rainbow 1”. Katz says“Another DBS company may be the likelybuyer….”

Katz pulls no punches in alertinginvestors of the potential downside,which comes at the end of a challengingperiod for Cablevision, not least an SECinvestigation into the company’s previ-ously disclosed accounting regularities.Katz fairly stresses that his assumptionsare far from hard and fast, and areundertaken in an area where there hasbeen little or no information from manage-ment on their plans for the future.

Set against this somewhat downbeatscenario are much more robust statementsfrom executives like Moyer. He says thatsome 10% of US homes have nowinvested in HD equipment, which will leadto a 40% ownership level within 3 years.“Our proposition is that HDTV is going toexpand dramatically, and we hope tocapture a large slice of that market. We areaudacious, we are driving trends in thedegree of programming choice and picturequality.” Moyer has been with Voom since1999. Previously he spent 13 years atDiscovery. Finishing up as chief creativeofficer.

Moyer says Voom has to be com-petitive and has been test-marketingvarious options and is now ready to moverapidly ahead. And soon it will migratefrom MPEG2 to MPEG4 compression,thereby squeezing more channels intoexisting transponders.

Moreover, Rainbow has made nosecret of its plans to expand orbitalcapacity. Recently, it acquired two neworbital slots (175 deg W, and 61.5 deg W),

favouring Hawaii and the Western half ofthe US respectively. Rainbow also holds 5ka-Band licences (at 62 deg W, 71 deg W,77 deg W, 119 deg W, 129 deg W), andaccording to a recent filing Rainbow issoliciting information from satellitemanufacturers. One option would be touse these Ka-band frequencies for local-into-local programming, thereby matchingthat already offered by DirecTV andEchostar.

But if the Bear Stearns report paintsa pretty bleak picture, it is worth remem-bering that Voom’s Rainbow 1 satellite isnestled in at the exact same position asEchostar’s 61.5 deg West slot, represent-ing a terrific opportunity to tap intoCharlie Ergen’s subscribers. That’s alsothe more upbeat view from Oppenheimer.If Voom manages to grow to more than200,000 subscribers in the next 15 months,then Oppenheimer’s senior analyst Eaganputs Voom’s valuation per subscriberaround the $1,000 to $1,200 range. Whilethis is well down on the $1550 per-subscription valuation for DirecTV andEchostar it does give a useful $300-600moverall valuation for Voom, plus thesatellite’s resale worth.

Despite the challenges from DirecTVand Echostar (and those pesky cablecompanies), we at ‘satmagazine.com’ likeVoom. We like its line up, we like it beingaudacious, and we’d like it to be asuccess. The satellite industry needsmore HD, not less, and Voom seems to us

SM

The bank’s report suggests thatliquidation is not likely in the next 15months, “but we believe some portion ofthe market will still assume there is areasonable chance for it to occur”. BearStearns might simply be guilty of cover-ing its backside, and alerting investors topossible rough waters ahead, but theysuggest that Charles Dolan will keepVoom in business until the cash runs out,around early 2007, with the options thenallowing him to hold onto Rainbow’sthree cable networks (AMC, WE and IFC).These are valued by the bank at $3.2bn,and might win considerable interest frombuyers at auction. Rainbow’s DBSbusiness could be worth around $790mthrough a sale of assets, valuing spec-trum at $130m, and $150m for its wholly-

to be sound value formoney. We hopediscerning subscribersagree.

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November 2004

Satellites Help Forecast MajorEarthquakes

VIEWPOINT

By Tom BleirChief Technology OfficerQuakeFinder

Earthquakes are a terrifying anddevastating natural disaster. Theycan strike without warning. They

often cause billions of dollars in propertydamage, completely disrupt daily lives,and normal community services andbusiness activities. To be able to predicta major trembler would be a wonderfulbenefit to those living and working inearthquake country.

One Silicon Valley company may beclosing in on a reliable method of earth-quake prediction and they’re doing it fromspace.

QuakeFinder, a start-up companybased in Palo Alto, California, hasdeveloped a satellite and ground-baseddetection method that, when completedand tested, would allow for warning of anearthquake one week in advance.

QuakeFinder uses a network ofcommercial ground-based sensors forlocal coverage, relying on curioushomeowners who are willing to havesensitive magnetometers buried in theground of their property. To date there are55 ground sensors buried in private yardsthroughout Northern California, and theymeasure Extremely Low Frequency (ELF)magnetic field fluctuations that have beenobserved prior to earthquakes.

Each of these sites has threemagnetometers that connect to theInternet via a radio link and modem. Thesensor transmits changes in the earth’smagnetic field near the fault lines to

QuakeFinder’s Operations Center in PaloAlto where this data is collected andanalyzed. Essentially, these electroniccomponents allow activity, a.k.a. magneticfluctuations, to be “tracked.”

Changes in the earth’s magneticfluctuations (ELF activity) prior to severallarge earthquakes have been observed.The most notable ground based observa-tion was by Professor Tony Fraser-Smithat Stanford University in conjunction withthe 1989 Loma Prieta earthquake activity,which he recorded large magneticanomalies for two weeks before the actualearthquake.

Researchers at QuakeFinder believethere is a correlation between thesefluctuations and the occurrence ofearthquakes. The ground sensors arepart of a collaborative science projectcurrently being funded by QuakeFinder,NASA, Stellar Solutions Inc., and theCalifornia Space Authority. The project’sgoal is to monitor these ELF activities andprovide short term (days to hours)warning to the State of California OESpersonnel. This research has beenunderway since 1999, and involves agrowing network since the groundsensors can only detect earthquakes

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November 2004

within approximately 10 miles of thesensor location.

To balance that data, QuakeFinder isalso gathering ELF signals in space, viatwo low orbiting satellite sensors forglobal coverage. On June 30, 2003,QuakeSat 1, a 10-pound, 4-by-4-by-12-inch satellite was launched as a “proof-of-concept” for collecting ELF precursorsignals from space. The satellite design isbased on the CubeSat concept inventedby Stanford and Cal Poly where eachCubeSat is 4-by-4-by-4. QuakeSat 1 is, infact, a triple CubeSat, which is largeenough to include a one-foot longmagnetometer that extends on a telescop-ing boom.

These satellites are designed todetect magnetic fluctuations associatedwith large earthquakes – magnitude 6 .0 orhigher – which occur worldwide, 70 to 100times per year. To date, QuakeSat 1 hasrecorded over 2,000 ELF collections overearthquake areas

“Our satellite has the advantage ofproviding worldwide coverage,” said TomBleier, QuakeFinder’s chief technologyofficer. “QuakeSat flies at an altitude of840 kilometers in a polar orbit around theearth, covering almost every point within2 to 3 days.”

The ELF data is downlinked throughtwo ground stations, one at Stanford andone near Fairbanks Alaska. The ground

stations and satellite sensors worktogether detecting ELF signals. Dataanalysis is currently underway and thusfar it looks promising. These fluctuationsare seen both before and after largequakes, they are a key indicator that anearthquake may be imminent.

QuakeFinder also has a researchagreement with the French to utilize their

VIEWPOINT

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November 2004

VIEWPOINT

Tom Bleier is Chief Technology Officer of QuakeFinder, he can be reached atphone at (650) 473-9870 or email at [email protected]. For generalinformation contact QuakeFinder via phone at (650)473-9870 or email at [email protected]

recently launched earthquake satellite,DEMETER, to look for the same type ofsignals seen by QuakeSat 1.

Notable observations have alsobeen made by other satellites includingthe Russian satellite Cosmos 1809 and anolder French Satellite Aureol-3. TheCosmos satellite collected ELF activity ofa 1987 Armenian earthquake. Aureol-3has conducted worldwide statisticalsurveys of earth’s magnetic fluctuationsduring the 1990’s.

Currently QuakeFinder is in theplanning phase for QuakeSat 2 a largermore powerful satellite with more sensi-tive magnetometers and a larger datacapacity. This means it would be de-signed to detect even smaller magneticfluctuations in the earth and will becombined with more powerful groundprocessing algorithms. The new satellitewill be a crucial addition to the research

SM

project. QuakeFinder hopes that with thisnew data, a statistically significantcorrelation can be found for thesedevastating earthquakes.

With its network of ground sensorsand satellites, QuakeFinder hopes tosignificantly improve on the science tomore accurately predict earthquakes.Although this is a very difficult andcomplicated problem, the long-term goalof QuakeFinder is to make earthquakeforecasting as accurate and accepted ashurricane forecasting is today.

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November 2004

Middle East Satellite TurmoilBy Chris Forrester

The Holy month ofRamadan is perhaps theworld’s most moveable religious

feast. Because the Islamic world’scalendar depends on phases of the moon,the Islamic year’s twelve equal months of28 days creep forward when compared tothe Western world’s calendar by about 10days each year. Consequently, 2004’sRamadan festival started on October 16.Next year’s Ramadan will start on October5. Ramadan is also the peak-viewingmonth for TV in the Middle East. It isChristmas, Thanksgiving and a year’sworth of Sweeps Week rolled into onefrantic TV month. It is a period of daytimefasting, which means huge family orientedfeasts at dusk. And after the feast the TVhits are rolled out.

In one crazy period viewers get giantvariety shows, quizzes and the bestmovies. They also get the Ramadandramas. These telenovellas (and oftenbought from South America) are the dailystaple for broadcasters, and the backbonefor dozens of Middle East televisionchannels. Get a good drama and theaudience builds, day by day as word ofmouth spreads the message like wildfire.Setting aside the imported material, theCairo press last week reported that thisyear’s crop of ‘mosalsalat’ (soap operas)include some 50 series shot in the MiddleEast. The story lines are all too familiar:‘Afandeena’s Daughter’, starring Egypt’smassively popular local actress ElhamShaheen, which tells of a servant girl andshows her journey from rags to richesafter refusing to give any concessions.But if a star is popular then logic dictates

REGIONAL UPDATE

that the is hired for a second Ramadandrama on a competing channel, whereElham performs the role of a nurseworking for a rich disabled man who losthis ability to walk after being in anaccident which killed his wife.

Imagine the network schedulesbeing wall-to-wall with these stories, ofthe business leader with 3 teens buthimself locked into a mid-life crisis, or

Fresca, a girl who sells cheap snacks onan Alexandra beach, who falls in love witha journalist, marries him but her realambition is to be a belly-dancer inCairo…… It’s probably my own journal-ism that’s at fault if the immediate melo-drama of the moment doesn’t fullytranslate onto the page.

The battle between the channels, atthis time but throughout the year, is

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November 2004

immense. Egypt’s digital ‘hot bird’ isNileSat, which now carries 240 free andpay-TV channels, and the line-up ofplanned channels has almost exhaustedNileSat’s capacity. Indeed, Middle Eastsatellite broadcasting might well be aboutto go through another major upheaval.The reason is ‘NoorSat’ (which means‘Light’), the name given to the half-dozentransponders in Intelsat’s Middle Eastspot-beam on Intelsat 10-02 at 1 degWest. 10-02 was launched in June andoperational in August. NoorSat is part-financed by a consortium led by SaudiArabia-based Mawared Group (which alsobacked the ill-fated Iridium sat-phoneconstellation), and which also ownsMiddle East sat-platform Orbit. NoorSat’sgeneral manager is former ArabSat CEOOmar Shoter, and he is talking aboutadding a second “and perhaps a thirdNoorSat” in time.

NoorSat now joins ArabSat andNilesat, the two established pan-regionaloperators, and sees itself as possiblyacting as a consolidator in the pay-TVarena. ArabSat (its first craft waslaunched in 1985) was the satellite ofchoice for its telco-members, and usedexclusively for telephony and data trafficuntil December 12 1990, when the Egyp-tian Satellite Channel went on air. Thefollowing year Middle East Broadcasting(MBC) joined ArabSat, and the local rushfor satellite capacity started. Kuwaitjoined in December 1991, but it wasn’tuntil 1996 that perhaps the Arab world’smost popular stations, Beirut’s LebaneseBroadcasting (LBC) and Future TV wereadded to a line up that by then includedalmost all of the national channels, as wellas key international services like CNN,and local challenger Al Jazeera (Dec 1996).

REGIONAL UPDATE

ArabSat has had its problems, notleast the near-catastrophic failure of itsAlcatel-built ArabSat 3A (at 26 deg East)back in late 2002. Other technical glitcheshave forced them to buy or rent expensivereplacements (including Canada’s AnikD2, an urgent lease on an older PAS craft,and later a large portion of Eutelsat’s ‘old’HotBird 5 (EuroBird 2) craft, now dubbedArabSat 2D, at 26 deg East). Indeed,capacity on Arabsat’s handful of craft hasbeen tight for some years. This should beeased soon with the launches of ArabSat4A and 4B, the first of which comes onstream in Q4/2005, and then Q1/2006. It isalso fair to say that ArabSat has been

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November 2004

London-based Chris Forrester, a well-known broadcasting journalist is the Editor forEurope, Middle East and Africa for SATMAGAZINE. He reports on all aspects of theindustry with special emphasis on content, the business of television and emergingtechnologies. He has a unique knowledge of the Middle East broadcasting scene,having interviewed at length the operational heads of each of the main channels andpay-TV platforms. He can be reached at [email protected]

REGIONAL UPDATE

complacent. After all, a full portfolio ofclients can make you lazy, and profitswere never the name of the game atArabSat’s Riyadh, Saudi Arabia, head-quarters. ArabSat is now “under newmanagement” and the old days aredefinitely over. An aggressive marketingpush for ArabSat is now underway inreadiness for next year’s 4A launch.

NoorSat’s arrival has promptedArabSat into greater action, but the sameapplies to the Middle East’s shiningsatellite success story: Nilesat. Nilesat101, Egypt’s first satellite, was launchedon April 28, 1998, with a brief to adddigital Ku-band choice to the region’sgrowing number of broadcasters. Asecond satellite, Nilesat 102, launched inAugust 2000 and gave immediate expan-sion possibilities to Showtime and ArabRadio & Television, two rival pay-TVplatforms. Both satellites are in effect full,with a total of 240 channels (end-Oct),and Nilesat has been searching for amechanism to allow expansion from their 7deg West slot, but co-ordination andfrequency shortages as well as cashlimitations have held them back. Part ofthe problem has little to do with NileSat’soutstanding commercial success, because

it operates as a Dollarbusiness, but thecollapse of theEgyptian currencyrelative to the dollar.Fresh funding for athird satellite wouldbe expected fromEgypt’s commercialbanks, which todaywould have to findtwice as much localcurrency to fund eachdollar of any pro-posedNilesat103.

Consequently,Nilesat’s chief engineer(and in effect CEO) SalahHamza has been search-ing for potential partnersfor 103. He admits totalking “to everyone”,and that includesEutelsat, SES Astra andIntelsat as potentialpartners in one form or another. Anothersolution might be to go ahead with arapidly-build 103 from Astrium or Alcatelwith a ‘soft’ loan from the satellite builder.Either way, Hamza says he is confidenthe’ll have extra capacity to sell by thistime next year – and that’s speedy!

ArabSat, Nilesat and now NoorSatall have one goal: to win loyalty theKingdom of Saudi Arabia. Kuwait and theUnited Arab Emirates are useful additions

to the Gulf’s richest and most populousState. Orbit says it remains optimistic that‘NoorSat’ could prove to be the catalystfor greater co-operation amongst thevarious pay-TV platforms operating overthe region. The logic is that instead ofthree struggling pay-TV platformscompeting for viewer loyalty, there shouldbe one satellite where all three platformsare present and allowing viewers to pickand choose their channels from the rivalbouquets. The market will be looking tosee whether a Hot Spot for all broadcast-ers makes commercial sense. The chan-

nels need the capacity, and besides, nextyear’s crop of Ramadan dramas aredepending on it! SM

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For the benefit of our readers,could you provide a brief summary ofthe recent changes in the ownership ofyour company and management struc-ture?

Gilat has concluded major changesin the past year and a half and thecompany’s situation today is a completelydifferent story than what it was in thepast. The positive turnaround can beattributed to a variety of factors thatincluded technology development,focused activities, organizational changesand financial restructuring that haveimproved our positioning in the market,our efficiency and financial results.

The following are some of thehighlights of what we have already doneto stabilize and turn the company around:

Since April 2003, Gilat completed. thefollowing actions:

• Formulation of strategy goingforward

• Changes in senior managementpositions

• Implementation of a globalmanagement team

• Implementation of economicmeasures to streamline costs

• Introduction of managementtools, more managerial discipline

• Regaining our technologyleadership position

• A financial restructuring processthat eliminated $309 million indebt, converting this into equitywhile renegotiating the

EXECUTIVE SPOTLIGHT

company’s long-term loan termswith the banks

• The conversion of the new convertible bonds that wereissued as part of the financialrestructuring in April 2003. $73million out of $88 million ofconvertible bonds were con-verted, leaving the companywith just $15 million in debt and$115 million in long-term bankloans at excellent return rates,due in 10 years

• An agreement for the modifica-tion of the terms of the outstand-ing loan by Bank Hapoalim toGilat

In addition, several importantstrategic decisions were taken:

• Take StarBand out of Chapter 11(completed November 2003)

• Take rStar private - In April thecompany completed the acquisi-tion of all of the shares ofcommon stock of rStar Corpora-tion not already owned by Gilatfor $0.60 per share in cash. As aresult, rStar ceased to be a publicreporting company.

• The dompany began trading onthe Tel Aviv Stock Exchange(TASE) in February 2004, inaddition to being traded on theNASDAQ.

All of these steps taken togetherhave created a dramatically improvedfinancial situation for the company, a very

conservative balance sheet, improvingperformances in the past few quarters anda more tight-knit global management,positioning us well to favorably meet thechallenges ahead.

The current owners of Gilat are BankHapoalim, Israel largest bank, holding14.8%, Eliezer Fishman holding 9.5% andthe balance is held by the public andother investors holding, each. Less than5%.

How have these changes affectedyour company’s position in the marketand your approach (or strategy)?

In early 2004 Gilat released its newSkyEdge family of products. This revolu-tionary VSAT system clearly places Gilatat the top of the technological leadershipin the industry again, where it has beenfor most of its history, being the first tomarket with new innovations. We clearlysee the SkyEdge as one of the mostimportant parts of the Company’s forwardlooking strategy.

The first fruits of the company’sactions implemented in 2003 began to bevisible as of the beginning of 2004.Among the positive indicators, thecompany had a positive EBITDA in eachof the quarters and positive cash flow, forthe first time in many quarters. Thecompany’s financial situation is nowstable and improving which allows forfuture growth and far more flexibility inour decision-making.

What areas of the VSAT market doyou see where the growth areas will be?

For our special issue on VSATs, SatMagazine Managing Editor, Virgil Labradorinterviewed Gilat Chairman Shlomo Rodav. Petah Tikvah, Israel-based Gilat, whichstarted as a small start-up company in 1987, is now one of the leading VSAT companies in theworld today. It has undergone a major financial and management restructuring in 2003. Rodav,who became Chairman of Gilat in April 2003 and assumed the position CEO in July 2004,explained the impact of the changes in Gilat since its restructuring during the interview. Excerpts:

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November 2004

EXECUTIVE SPOTLIGHT

And how is your company addressingthese different areas (or market seg-ments)?

Gilat’s business stands on two legs -technology sales and networks operation.Looking forward, we will continue tostrengthen both of these areas. In thenetworks operation area, we will befocusing on Enterprise, SOHO/SMEvertical markets, and on new channels.We have established ourselves as theclear market leader in rural networksand we plan to continue to expand thisbusiness.

Governmental projects focusingon education and telecommunicationinfrastructure is another market we areaiming for. Gilat has the demonstratedability to do large-scale turnkeyprojects, from A-Z, in very shortperiods of time. Just recently we wereable to deploy over 3,000 VSATs and ahub in four weeks time for the Venezu-elan Presidential referendum, anunprecedented deployment pace. Gilatcan be viewed today as a completesatellite-network-system-house, capableof providing end-to-end satellite-basedsolutions for almost any application.

In addition, we are going to befocusing more and more on non-fixedapplications such as portable, transport-able and in-motion solutions.

Finally, our company is moving frombeing a vendor of satellite access to beinga vendor of satellite network solutions inwhich VSATs may be only part of theoverall solution. We have been able toadd to our VSAT networks hybridsolutions, which include, for example,DSL, wireless and other technologies.

Where do you see that US con-sumer broadband market going?

The VSAT consumer market in theUS has not met expectations of allplayers, including Gilat. The potential in

that market still exists, but the success inthat market is less a technological issuethan a business one, due to the heavyinitial investments that need to be pouredinto the market up front. The futuregrowth of this market depends on aserious deep pocket operator that willcommit to the required initial investmentin customers acquisition and commitmentto the procurement of large quantities.

Gilat CEO Shlomo Rodav

You recently launched yourSkyEdge Product Family and signedsome key deals—what is the advantageand benefits of this product family?

Over the years, VSAT technologyhas seen a variety of developments thathave increased efficiency, quality andaffordability. The evolution of VSATmarkets has generated separate systemsfor separate markets. However, untilrecently, the technology did not allow theintegration of different VSAT platforms,to work harmoniously on the same hub,and serve all markets, as part of a singlesystem. The introduction of SkyEdgeremoves this limitation and opens a worldof opportunity for VSAT operators andusers.

This breakthrough allows operatorsto expand their business horizons, being

able to support numerous applicationsand not having to make significantinvestments in additional hubs in order todo so. The entry barriers for the businesswill go down; costs will be reducedthrough a small mini-hub offering,savings on space segment, networkmanagement and other areas. Moreoperators will be able to start servicebusinesses with a smaller initial invest-ment, resulting in more people benefiting

from VSAT technology.

SkyEdge consists of fivetailored VSAT products, alloperating via a single hub. TheSkyEdge family of products cansupport a wide range of applica-tions and markets, including anenhanced DVB-RCS VSAT,which is interoperable with thevariety of SkyEdge VSATs.These VSATs can be mixed andmatched on a single network,and simply managed using onenetwork management system andone segment of bandwidth.

In September, we announced thefirst SkyEdge deal with Australia’s secondlargest telecommunications company,SingTel–Optus. The agreement was for aSkyEdge hub and remote sites for theexpansion of Optus’s already existingGilat networks, which will be upgraded toSkyEdge as well.

What can we expect from Gilat inthe next year?

We have received a good receptionfor our SkyEdge product family and oursales funnel has more and more SkyEdgeprospects, surpassing that of our tradi-tional legacy products. In the comingyear, we will introduce additional phasesof the SkyEdge system that includeamong other things, the DVB-RCSplatform and compatible DVB-RCS hub.

SM

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MARKET INTELLIGENCE

For much of the Internet era, bandwidth has been a limited commodityin most of Africa, largely because of

regulatory hurdles that prohibit competi-tion amongst carriers, capacity con-straints of a limited number of serviceproviders, and because the excessivecosts of such bandwidth have reducedthe demand. Restructuring of the telecomsector is now taking place in a growingnumber of countries in Africa, and anumber of initiatives are beginning tochange the bandwidth landscape.

Most recently, the SAT-3, WASC,and SAFE undersea optical fiber cableshave been completed, providing high-speed high-bandwidth links betweenEurope and Asia and 14 West Africancoastal countries. The recent establish-ment of the West African Section (WASC)has already resulted in efforts by opera-tors in Gabon, Cote d’Ivoire, Namibia,Nigeria, Senegal and South Africa toestablish large international Internet links.This is substantially increasing connec-tivity in the capital cities of these coun-tries and helping to build the case forestablishing national backbones. A similarproject is planned for Africa’s east coast(EASSY), and along with the proposalsfor a southern African fiber network (SRII)and COMTEL for the countries of theCommon Market for Eastern and SouthernAfrica (COMESA), the coming years maywell see most of the major cities in Africawith much improved telecommunicationcapacity.

Three A’s for VSAT:Affordable, Available, and...Africanby Martin JarroldChief, International Programme DevelopmentGVF

However, until terrestrial nationalbackbones and networks become muchmore extensive, unserved areas will needto rely on satellite connectivity. Further,Africa’s vast and often inaccessibleterrain makes it prohibitively expensive toroll out traditional wireline networks andimplement fiber optic links in theContinent’s hinterlands. This makes low-cost satellite services attractive, particu-larly to small- and medium-sized enter-prises (SMEs), large organizations – inthe public and private sectors – as well aspersonal users.

Underscoring continued expectationfor growing demand in these areas,several new satellites serving Africa haverecently been launched which dramati-cally increase the availability of band-width to even the remotest parts of theContinent. The full extent of available Ku-band satellite bandwidth in Africa isshown in the associated map produced bythe IDRC Acacia program, which showsthe footprints of all of the Ku-bandsatellites overlaid on the Continent.

In addition to VSAT servicesprovided via 28 C-band beams (notillustrated in this particular map), asignificant number of European andAfrican providers have entered the Ku-band VSAT market since services firstbroke ground in 2002 using Panamsat’sPAS-10 satellite. Now, Ku-band servicesover Africa are available on PAS-1R, PAS-10, NSS 7, Atlantic Bird 7 (the renamedStellat 5), Nilesat 101 and several Intelsatsatellites including IS-904 and IS-901.

New Skies Satellites’ new NSS-7 satellitealso has a global Ku-beam covering theentire continent except for parts of EastAfrica, and it has a spot beam coveringSouthern Africa and another for WestAfrica.

At the same time, recent develop-ments in Internet-based VSAT systemshave now rendered the technology into acommodity. A central hub can be placed ata location where the upstream Internetcosts are lowest (whether in Africa or inother regions, such as Europe or NorthAmerica), while serving many thousandsof low-cost terminals in Africa via satelliteusing small diameter antennas (0.6 to 1.8metres) and associated customer-premises equipment, which for enterprise-and consumer-class systems can costless than US$2,000 and US$1,000,respectively. The markups on equipmentand installation after cost increasesimposed by shipping, duties and clear-ance payments means that by the time theequipment is installed, up to US$3,000 canbe added to the end-user’s FOB cost. Sobulk shipments and streamlined clearanceprocedures, along with elimination ofduties for ICT equipment, are importantin maintaining the advantages of low costfor the service.

One of the key advantages ofVSATs is their ability to deliver accessquickly. The recent availability of low-cost terminal equipment is helping to

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November 2004

MARKET INTELLIGENCE

encourage this trend. Increased globalvolumes have driven prices downcreating options for delivery of a widerrange of applications, including ruraltelecoms, distance learning, telemedicine,

SM

Martin Jarrold is the Director, International Programs ofthe Global VSAT Forum. He can be reached [email protected] For more information on the GVFgo to www.gvf.org

disaster recovery, as well as a host ofcorporate and government applications.

There are already many thousandsof public and private Africanorganisations – from banks, stockexchanges and Internet Service Providers(ISPs), to schools, hospitals and rural/semi-urban telecentres – that use VSATsto deliver business, educational andhealth information. But mass deploymentof high-bandwidth VSATs could benefitmore of these end users, as well as SMEsand individuals that are currently con-strained by dial-up connections that areslow, unreliable or non-existent.

Access to competitively pricedbandwidth opens a much wider array ofopportunities for institutions to makedevelopment applications available tousers. Larger organizations are alreadyusing services at 2 Mbps or more tocreate virtual private networks (VPNs),and as Internet use becomes a key part oforganizational operations, even userswith cheaper terrestrial links may need aback-up route to the Internet cloud that isnot dependent on the local operator forinfrastructure.

Until recently, the PTOs have beenthe main users of VSAT technologies inAfrica, deploying VSAT networks toextend their national telephone infrastruc-ture and Internet access. However,liberalisation has opened up avenues fornew licensed service providers both inthe voice traffic market and Internetbusiness. VSATs have also been de-ployed to provide Internet services incountries such as the Democratic Repub-lic of Congo, Ghana, Mozambique,Nigeria, Rwanda, Tanzania, Uganda andZambia.

Total Ku-band Coverage of Africa: Every square inch of Africa is covered bysatellite bandwidth, but restrictive telecom policies stop this from supportingAfrica’s development. There are 48 satellites with coverage, pointing 36 Ku-bandfrequency beams (shown here) and 28 C-band beams (not shown) over Africawhich can be accessed to provide international and national voice calls, broad-casting, data and Internet services.

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November 2004

STOCK MONITOR

Company Symbol Price 52-week RangeADVERTISER’S INDEX

(Click on the page no. to go directly to

the ad; click on the url address to go to

website)

For real-time, up-to-the minute stock quotes of satellite companies go to:www.satnews.com/free/finance.html

AAE 20www.aaesys.com

ANACOM 28www.anacominc.com

COMTECH EF DATA 17www.comtechefdata.com

GILAT 13www.gilat.com

GLOBAL LINK 11www.satnews.com/globallink

ISCe 6www.isce.com

KAVERA 25www.kavera.com

NARDA SATELLITENETWORKS-L3 31www.l-3com.com/snd/

ND SATCOM 14www.ndsatcom.com

PANAMSAT 24www.panamsat.com

PARADISE DATACOM 26www.paradisedata.com

PTC 10www.ptc05.org

SES GLOBAL 19www.ses-global.com

APT SATELLITE ATS 1.50 1.32 - 3.50ANDREW CORP ANDW 14.44 9.30 - 21.67ASIA SATELLI ADR SAT 19.45 15.20 - 22.80BALL CORP BLL 40.45 27.15 - 40.58BOEING CO BA 49.95 37.60 - 55.24BRITSH SKY BROAD BSY 37.49 33.22 - 59.24CALAMP CAMP 6.68 5.12 - 17.20COM DEV INTL CDV.TO 2.51 2.15 - 3.80COMTECH TELCOM CMTL 27.87 14.93 - 39.52DIRECTV DTV 17.02 14.70 - 18.81ECHOSTAR COMM A DISH 31.62 26.95 - 40.10FREQUENCY ELEC FEI 12.50 10.18 - 17.13GILAT SATELLITE GILTF 5.904 3.95 - 9.86GLOBECOMM SYS GCOM 5.81 4.15 - 7.58HARRIS CORP HRS 61.44 36.34 - 61.58HONEYWELL INTL HON 35.04 28.60 - 38.46INTEGRAL SYSTEM ISYS 19.71 15.35 - 22.12KVH INDS KVHI 9.09 6.61 - 34.729L-3 COMMS HLDGS LLL 66.70 45.60 - 68.88LOCKHEED MARTIN LMT 55.79 43.10 - 56.85NEW SKIES SATEL NSK 7.93 6.38 - 8.16NEWS CORP LTD NWS 32.11 30.61 - 39.74NORSAT INTRNTL NSATF.OB 0.55 0.38 - 0.95NTL INC NTLI 65.42 46.65 - 73.81ORBITAL SCIENCES ORB 10.75 8.99 - 14.19PT PSFIK STLIT N PSNRY.PK 0.20 0.00 - 0.00QUALCOMM INC QCOM 40.56 21.805 - 44.41RADYNE COMSTRM RADN 7.05 6.16 - 13.426SCIENTIFIC ATL SFA 27.46 24.61 - 38.59SIRIUS SAT RADI SIRI 3.91 1.88 - 4.29SES GLOBAL SDSFa.F 7.95 6.30 - 8.85TRIMBLE NAV TRMB 28.87 18.06 - 32.73VIASAT INC VSAT 19.27 16.79 - 28.91XM SATELLITE XMSR 33.06 19.75 - 33.11

(Nov. 1)