Cover: Early Wi-Fi Adopter Nok-Scoot
Volume III, No. VII July-August 2018
Gottlieb's
"Unlocking the Riches of In-Flight Wi-Fi " "Buckle Up! Turbulence Ahead in Airline Connectivity Markets" "Big Advancements in Air Traffic Management on the Horizon" "Disrupting the Satellite IoT Connectivity Market: The Promise of Hiber"
Independent Analysis and Commentary on Maritime, Aero and Land-based Satellite Technologies
In This issue...
Satellite mobility World
Table of Contents Industry Trends and Analysis: (pg. 3) Patee Sarasin, former CEO of Nok Air: "Unlocking the Riches of In-flight Wi-Fi" (pg. 4) David Bruner, former V.P. Panasonic Avionics: "Buckle Up! :Turbulence Ahead in Airline Connectivity Markets" (pg. 15) "The Promise of the New Iridium and Aireon Services: Big Advancements in Air Traffic Management on the Horizon" (pg. 26) Ernst Peter Hovinga, CEO Hiber: "Disrupting the Satellite IoT Connectivity Market: The Promise of Hiber" (p.31) "Upcoming and Recommended Satellite Mobility Events" Pg. 38)
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Welcome to the July-August 2018 issue of Gottlieb's Satellite Mobility World. Our July-August Issues features airline connectivity. In "Unlocking the Riches of In-Flight Wi-Fi," we'll hear from Patee Sarasin, the highly innovative former CEO of Nok Air on how to make money - and a lot of it - with in-flight Wi-Fi. We continue our focus on in-flight connectivity in an interview featuring former Panasonic Avionics Vice President, Dave Bruner. In it, he explores the market , its evolution and the challenges facing in-flight connectivity providers as they struggle toward profitability. Finally, we hear from the Ernst Hovinga, CEO of Hiber, an emerging satellite IoT provider with an incredibly disruptive technology designed to provide low cost global satellite IT connectivity using the HF frequency band and a constellation of nanosatellites. Enjoy! Gottlieb's Satellite and Mobility World is published monthly (except August) by Gottlieb International Group., Inc. Suite 100, 1209 South Frederick Street, Arlington, VA USA 22204 © Copyright 2018 (Tel +1-703-622-8520) Interested in our unique Promotional Capabilities? Contact us today! Gottlieb's Satellite and Mobility World is published monthly (except August) by Gottlieb International Group., Inc. Suite 100, 1209 South Frederick Street, Arlington, VA USA 22204 © Copyright 2018 (Tel +1-703-622-8520) Interested in our unique Promotional Capabilities? Contact us today!
SATELLITE MOBILITY WORLD
GOTTLIEB'S
Industry Trends and Analysis
Inmarsat in Play: Eutelsat Drops Out, Leaving Only EchoStar June 26, 2016: In a surprise move on Tuesday, Eutelsat reversed it intention to bid for Inmarsat, leaving EchoStar as the sole active bidder at the moment. While there has been speculation that SES and others might bid for the faltering communications giant, the company's "rock bottom" stock price makes it an attractive deal for those seeking entry into the mobility business or those who could make use of the company's "L", or Ka-Band spectrum or sell its S-Band spectrum to cellular operators. So, even though Echostar's of bid of $3.9 Billion was higher than the $3.3 billion valuation based on 7 X EBITDA (a traditional Private Equity multiple used for valuation), it likely undervalued the company based on its spectrum holdings. So, based on Echostar's estimate of the S-Band spectrum's value and the strategic value of Inmarsat's Ka-Band holding to Hughes Jupiter aero initiative, it may raise its bid. What is interesting is that Inmarsat is likely worth more based on the value of its assets than it is based on management's ability to generate EBITDA - assuming, of course, that it can be sold. A.G. Iridium-7 Target Launch Date Announced MCLEAN, Va. – June 15, 2018 – Iridium Communications Inc. (NASDAQ: IRDM) announced today that the seventh Iridium® NEXT mission has been targeted by SpaceX for launch on July 20, 2018, from Vandenberg Air Force Base in California. The Falcon 9 rocket will launch 10 Iridium NEXT satellites to low Earth orbit (LEO) from Vandenberg Air Force Base (VAFB) in California at approximately 5:12 am PDT (12:12 UTC). An exact instantaneous launch window time will be available closer to the launch date. As the second-to-last launch of the planned Iridium NEXT program, this mission will increase the total number of Iridium NEXT satellites in space to 65. All 10 satellites for this mission will be deployed to Iridium orbital plane number 5 where they will go into operation immediately following a thorough testing and validation process. The Iridium network is comprised of six polar orbiting planes, each containing 11 operational crosslinked satellites, for a total of 66 satellites in the active constellation. Once all the satellites from the Iridium-7 mission are operational, plane 5 will be the fourth orbital plane to be comprised entirely of Iridium NEXT satellites. In total, 81 Iridium NEXT satellites are being built, with 66 in the operational constellation, nine serving as on-orbit spares and six serving as ground spares. Iridium NEXT is the company's $3 billion, next-generation, mobile, global satellite network scheduled for completion in 2018. Iridium NEXT is replacing the company's first generation global constellation in one of the largest technology upgrades ever completed in space. It represents the evolution of critical communications infrastructure that governments and organizations worldwide rely on to drive business, enable connectivity, empower disaster relief efforts and more. Speedcast International Ltd (ASX:SDA) Partners with Kymeta to Deliver KyWay Flat-Panel Terminal to Mobility Markets Singapore, June 28, 2018 - (ABN Newswire) - Speedcast International Li! mited (ASX:SDA) (OTCMKTS:SPPDF), the world's most trusted provider of r! emote communication and IT solutions, today announced a partnership with Kymeta Corporation to develop and roll out product offerings featuring the Kymeta KyWay Terminal, which integrates ground-breaking mTenna(TM) flat-panel antenna technology. Under the partnership agreement Speedcast will integrate the Kymeta terminal into the company's industry-leading Speedcast Atlas(TM) managed service to deliver the latest cutting-edge technology to its customers. The Kymeta KyWay terminal features an innovative electronically-steered, flat-panel Ku-band antenna. The slim and lightweight profile makes it easy to install in a variety of mobility settings, such as on the top of a yacht or the side of a command vehicle. The KyWay terminal has no moving parts, simplifying maintenance, and eliminates much of the cost and infrastructure required by traditional VSAT antennas, making it an ideal solution for mobility markets. "A key area of focus for Speedcast is to constantly innovate to provide business value for our customers. The Kymeta KyWay Terminal will bring game-changing technology to many of the market segments that Speedcast serves," said Tim Bailey, Executive Vice President, Products, Marketing, & Business Development, Speedcast. "We're excited to be working with Kymeta to bring this technology to market." "For nearly 20 years Speedcast has been delivering remote communications solutions to its customers. We are proud to be a partner in the next generation of Speedcast offerings," said David Harrower, Senior Vice President, Global Sales, Kymeta. "We look forward to working with Speedcast to enable end-to-end broadband communications to provide a seamless, always-connected solution." Veteran Management Team Launches New Global Communications Company with Investment Funding Led by Former Iridium Chairman ANNAPOLIS, Md. – June 14, 2018 – A new company, EVERYWHERE Communications, Inc., is being launched today to provide satellite and cellular connections for the millions of people and assets that require global connectivity for safety, security and productivity. EVERYWHERE’s fully integrated dual-mode communications solution uses the newly launched Iridium NEXT satellite constellation and cellular networks to provide always-on connectivity everywhere on Earth, including the over 90 percent of the world beyond the reach of land-based wireless coverage. “We provide vital communication links that will save lives, improve security and create productivity solutions on a global scale,” said Patrick Shay, the company’s founder and CEO. “Our solution is based on field-proven patented technology, and we have brought together a world-class team of professionals to bring it to market.” The company’s leadership team consists of seasoned industry professionals, each with over 30 years of experience, responsible for creating over $2 billion in connected services with companies including Motorola, Nextel, Verizon, SiriusXM, Iridium, SkyBitz and DeLorme. The lead investment partner in EVERYWHERE is Gemini Capital, founded by Dan Colussy, former chairman of Iridium Satellite. Colussy successfully purchased Iridium out of bankruptcy and rebuilt it into a global and profitable business that now serves over a million customers worldwide. Additional capital has come from other industry leaders and experts. Colussy commented: “EVERYWHERE has all the ingredients for success – a strong team with experience and extensive relationships in this business sector, proven patented technology and a compelling value proposition for an emerging market with enormous growth potential.” The company provides safety and productivity solutions for government, NGO and enterprise customers in vertical markets such as oil and gas, mining, construction, aviation, marine, public safety and security. Global Dual-Mode Communications – EVERYWHERE’s intelligent routing platform uses least-cost-routing to provide a flexible and powerful solution to control costs, optimize productivity and ensure always-on connectivity. Worker Safety – EVERYWHERE provides a vital communications lifeline to meet duty-of-care obligations and comply with lone-worker laws being adopted in many countries. The handheld devices provide two-way satellite communications via the Iridium satellite network, as well as GPS tracking and SOS communications with a customer-designated monitoring center. Global IoT – EVERYWHERE’s solution encompasses end-to-end monitoring and management of machinery, equipment and physical assets. It supports EVERYWHERE’s own devices as well as third party devices. Proven Technology – EVERYWHERE’s solution is based on patented technology that has been deployed and used in mission-critical operations for the last 10 years. The product portfolio includes personal communication devices, asset tracking devices, smartphone apps an d a central management platform. It is a multi-network, multi-device solution. About EVERYWHERE Communications, Inc. Led by a team that has deployed $2B in connected services, EVERYWHERE Communications provides dual-mode cellular and satellite communications, powered by patented technology deployed in mission-critical environments. In or out of cellular coverage, we have you connected globally. EVERYWHERE. The company is headquartered in Annapolis, Maryland. U.S. FCC Expands Market Access for SES O3b MEO Constellation Luxembourg, 8 June 2018 -- SES announced today that it has been granted, by the U.S. Federal Communications Commission (FCC), authorization to serve the U.S. market using a significantly expanded O3b fleet in the Medium Earth Orbit (MEO). The FCC grant opens significant additional frequencies to SES for use in its non-geostationary (NGSO) constellation and enables it to deploy O3b mPOWER satellites into inclined and equatorial orbits, delivering full global pole-to-pole coverage. A total of 26 new O3b satellites are authorized, in addition to the 16 satellites already operational and in orbit. The grant allows SES to add 4 satellites to its existing O3b constellation, which are scheduled for launch next year, and provides the framework for SES to triple its next-generation O3b mPOWER fleet by giving U.S. market access for another 22 super-powered satellites, of which 7 are currently under construction and scheduled for launch starting in 2021. The O3b mPOWER constellation will bring massive scale and flexibility to the proven O3b MEO model. The 7 O3b mPOWER MEO satellites that SES has ordered already will have more than 30,000 dynamic, electronically-generated, fully-shapeable and steerable beams that can be shifted and switched in real time following customers’ needs. Each satellite boasts more than 10 times the capability of the current O3b satellites with unmatched flexibility. “This important FCC grant provides SES with the means to grow and scale our network, connecting the planet and delivering world class solutions to our customers globally,” said Steve Collar, President and CEO of SES. “With the first 7 O3b mPOWER satellites, we will deliver a paradigm shift in performance, bandwidth and service. The FCC grant provides the platform to exponentially scale the network in response to surging demand for global data connectivity.” The O3b fleet is the only NGSO system delivering fibre-like broadband services today. O3b mPOWER, when launched, will enable an even wider array of industries and customers to tap into this high-performance connectivity. Speedcast Media Network Uses Hybrid Platform to Broadcast Quality Video Content Anywhere Scalable Network Solution Removes Barriers of Cost and Infrastructure for Broadcasters, Content Aggregators, the Sports Market and More SINGAPORE, June 26, 2018 – Speedcast International Limited (ASX: SDA), the world’s most trusted provider of remote communication and IT solutions, today introduced its new content distribution platform, the Speedcast Media Network™. Through a hybrid network, the Speedcast Media Network allows broadcasters to distribute content anywhere, at any time and at a fraction of the price of traditional satellite. The Speedcast Media Network operates through a hybrid solution of IP (managed and unmanaged), satellite, fiber, MPLS and cellular services to guarantee the distribution of broadcast quality video. The Speedcast Media Network offers linear and digital services, as well as point-to-point and point-to-multipoint connections. The Speedcast Media Network is powered by Speedcast exclusively-licensed InAria! Ottvideo technology. By removing the barrier of cost and infrastructure, the Speedcast Media Network opens up the door for affordable content distribution for both broadcasters and channel aggregators. The Speedcast Media Network is suited for both full-time or occasional use, so broadcasters can use it until a traditional fiber networks is installed, on its own, or as redundancy to traditional networks. Speedcast has utilized its extensive expertise in data, satellite, MPLS, fiber, cellular and IP solutions to develop the Speedcast Media Network with in-house technology – guaranteeing that it is secure, reliable and fully-customizable. The Speedcast Media Network is expected to benefit customers in a number of markets, such as the maritime, news and sports markets. It will allow sports broadcasters to distribute high quality content and to livestream sports matches over the air to viewers’ smart devices for the ultimate play-by-play experience. Maritime operators will be able to package local content and training materials for crews working in remote locations. “The media world is undergoing a massive shift,” said Erwan Emilian, Executive Vice President, Enterprise and Emerging Markets, Speedcast. “Not only are people demanding a greater variety of content, the amount of high quality content being created is also rising. We’re very excited to introduce the Speedcast Media Network, which will make it easy and affordable to distribute and consume high-quality content from anywhere in the world.”
Unlocking the Riches of In-Flight Wi-Fi
Can In-Flight Wi-Fi make airlines rich? Patee Sarasin, former CEO of Nok Airlines thinks so. This unconventional and creative fellow, a former advertising industry guru, has a track record that should make the world's airlines take notice. For those unfamiliar with Nok Air, you may well remember them as the first airline to print and distribute a Playboy flight attendant calendar - a move that excited world-wide controversy yet generated visibility that would have cost millions of dollars to match through conventional advertising. This initiative was but one of many, as under Sarasin, the company instituted unconventional and successful distribution strategies and then leveraged the power of the Internet and on-board Wi-Fi, combined with social media, as an effective alternative to use of high cost, conventional advertising. Now, Patee is starting a new company to show airlines not only how to do that, but how to turn onboard Wi-Fi into a major new source of revenue and profits. We're excited about what he has to say. SMW: While CEO of Nok Air, you initiated some rather innovative and unconventional distribution and marketing programs - many of which have relied upon the use of in-fight WiFi, and, as a result, the airline has experienced considerable growth. More recently, Nok Air has partnered with seven other Asia Pacific airlines to build what has been described as the world’s largest, low-cost carrier alliance. Can you describe your marketing strategy and the promotional programs you deployed to grow the company and their effectiveness? Patee Sarasin: We were first with a lot of marketing innovations, but before we get into that, we should talk about some of our our unconventional distribution strategies. Early on, we initiated a new Thai distribution channel by selling our tickets through 5,000 7-Elevens, and also at automatic teller machines. In doing so, we opened channels that were never used before and were able to generate significant new business. Our major competitor, Air Asia, tried to copy that initiative, but at the time, their IT infrastructure would not allow them to do off-line booking, an advancement that took them nearly three years to complete. By the time they were able to do it, we had already moved on to the Internet. Later, as the Internet progressed, and the Apple iPhone was introduced, we rode that trend by introducing an iPhone booking application even before Emirates and more recently, built an application to extend booking capability to the Apple watch, one that can do anything that the iPhone application can do - even generate boarding passes right on the watch. SMW: Can you tell us how the idea to offer connectivity evolved, the strategy behind it, how you employed the service, and its effectiveness in promotional terms? PS: Instead of spending millions of dollars to generate brand awareness through conventional advertising, our strategy was to leverage the popularity of the Internet by being one of the first airlines to invest in free Wi-Fi and use it to build our brand image. Instead of advertising ourselves, it gave us a way to have our customers do it for us. What has really been at the core of our marketing strategy has been the creation of attention-getting events on our planes and in our airports not characteristic of the typical airline experience and encouraging passengers to film and distribute videos of them on social media using hash tags – right from the aircraft. Of course, for the strategy to be effective, we had to create unique events that our passengers would film. For those, we relied heavily on the use of our attractive, young flight attendants, thereby building our brand image in much the same way as Singapore Airlines did with “the Singapore Girl.” We staged unique productions showcasing our flight attendants. For example, at our airport event celebrating our alliance with Scoot Airlines, Singapore Airline's discount carrier, we did a Las Vegas-like show event that attracted crowds of onlookers, all of whom were encouraged to film it with iPhones and post the videos on social media. So, not only did we create a highly efficient advertising media, we added a consumer service that could attract more passengers. That was all a part of our marketing strategy. As you mentioned earlier, one especially effective promotion was the printing and distribution of our Playboy flight attendant calendar - a promotion that cost us only $40,000. No airline had ever done anything like that before, and the controversy associated with it generated publicity on a global scale. CNN and other networks carriers the story, providing us with coverage that was worth $5 Million of conventional advertising. SMW: As you know, American carriers are struggling to find ways to pay for the cost of offering in-flight WiFi. I understand you have some pretty innovative strategies in that regard, can you give them some ideas? PS: Technology has changed a lot, and given the advances, I was surprised at the GCA event that a lot of airlines didn’t seem to know what to do with it. They didn’t seem to understand that you can turn the Wi-Fi on the planes into a money-making machine. They only seem to envision it as improving the customer experience. We are way past that now. When customers sign up to be frequent fliers, you know the behavior of these people - whether they are traveling for business or vacation and you can predict what they are going to do. That data can be used to promote the sale of products or services tailored to their needs. Most airlines don’t know how to properly use this data and are, in general, dinosaurs compared to many other businesses. I think there is so much room for airlines to give a better experience and monetize it. For example, if a passenger is flying to Barbados, you could ask if they need a bathing suit, a tour, or want to book a favorite restaurant or arrange for a car to pick them up at the airport. Products or services purchased in this way could be delivered to a hotel to be ready when the passenger arrives – all of these options and conveniences can enhance the flying experience and allow travelers to better prepare for their vacation or business trip and, of course, can generate commission for the airline. After all, what is a traveler going to do during several hours on a plane? That is what I am trying to tell the other airlines, and I don’t think they see it. If you offer WiFi for free, more people will use it, and you can make more money selling special things. Such initiatives could be developed quickly if airlines would outsource the data management, refinement of the data, development of promotions and targeting of passengers. SMW: If you are offering free WiFi is the use of streaming a problem, essentially slowing the network down and thereby limiting use? PS: On Nok Air, we don’t have seat back screens. So, we allow free use of Web Surfing and e-mail, but charge extra for streaming. On a major airline with seat back entertainment, I don’t believe it’s necessary to limit streaming because I think that most people will get movies and entertainment from servers on the plane. Lately, most airlines have an enormous amount of entertainment choices available onboard including live sports and news. Emirates, for example, has experienced only minimal streaming activity. So, with major airlines, I don’t think enough people will stream data to make it a problem. SMW: Do your flight attendants use iPads to further identify key passengers and their preferences? PS: We don't use them now because our flights are too short. However, as we fly longer routes, we plan to provide iPads and data to our flight attendants. As you know, we have a joint venture with Singapore Airlines discount carrier, Scoot, and ultimately will fly to Japan. The system is already installed. So, all we need to do is to make it happen which is not difficult. SMW: Given the current state of confusion regarding the best business model to justify the provision of WiFi service, what advice would you give to the airlines? PS: Basically, you have to be very innovative with your ideas. You have to think of yourself not as a manufacturer but focus on who is your customer. Right now, airlines are only thinking about what could be easy for them and most cost effective. What they don’t think about is that they need to satisfy the customer, and they can make more money doing it. SMW: Do you expect that the LEO's low latency advantage will result in major aircraft fleets refitting their aircraft or will GEOs still be the dominant supplier of commercial aircraft bandwidth? Assume that flat panel, electronically steered antennas and new modems will be available for mounting on aircraft. PS: New aircraft in the manufacturing stage would be more likely to have the capability to connect to LEOs. However, at this point, we will need to wait for the availability of flat panel, electronically steered antennas and proof of the LEO concept before commercial airline adoption. Recall that it is very expensive to remove an aircraft from service to fit antenna and supporting infrastructure. So, assuming using LEOs proves to be advantageous, I think we will see mostly new planes and planes flying Polar routes equipped for LEO services. SMW: Thank you, Patee. I'm sure your insights will be very much appreciate , especially by the carriers that are struggling to develop new Wi-Fi and promotional strategies.
An Interview with Patee Sarasin, former CEO of Nok Air
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"If you offer WiFi for free, more people will use it, and you can make more money selling special things. Such initiatives could be developed quickly if airlines would outsource the data management, refinement of the data, development of promotions and targeting of passengers."
About Patee Sarasin Patee Sarasin is a renowned aviation and travel industry pioneer. Patee received his secondary education in England at Kings School, Canterbury, and then spent his college years in the U.S.A., receiving a Bachelor Degree in Business Administration and Computer Science from Clark University, in Massachusetts, and a Masters Degree in Mass Communication Film and Video from American University in Washington, D.C. Patee launched his career with advertising agency Lintas in 1983, as a Research Manager, and then took a 2 year break to complete his masters degree, followed by 2 years with NBC, the U.S. television network, on both the creative and production side. Returning to Thailand in 1989, he joined SPA Advertising as Creative Liaison officer and a member of the Management Committee, and in 1991 became General Manager of Multi Media Orbit, a production house of SPA. In 1992, Patee was appointed Managing Director and later CEO of Bates Advertising Thailand, a joint venture between SPA and Bates Worldwide. Under Patee’s management, Bates Thailand became the fastest growing advertising agency in Thailand, and included the famed creation of DTAC and its launch into the market. In early 2004, Patee left Bates to join the new airline that was to become Nok Air as Chief Executive Officer, and was the driving force behind the success of the airline, utilizing his marketing background and experiences and effectively applying them to Nok Air. Under Patee’s leadership, Nok Air saw strong growth in terms of revenue, passenger numbers and destinations, as it reached out from its base in Thailand across Asia, and became a renowned innovator in the low cost market. Leaving Nok Air in mid-2017, Patee is now involved in a range of aviation, travel and entertainment enterprises, grouped together under his DDG International group, based in Bangkok.
An Interview with Dave Bruner, CEO Global Connectivity Advisors
Buckle up! Turbulence Ahead in Airline Connectivity Markets
Having just returned from the Global Connectivity Aircraft Summit in San Diego, I find an aircraft connectivity market on the verge of disruption. As more and more passengers access airborne WiFi and demand faster and faster connectivity and advanced entertainment options, airlines, connectivity and technology providers are facing daunting challenges. Bandwidth prices are falling rapidly and the word is that most, if not all, of the providers are yet to make any money and are up for sale. Undoubtedly, it's a watershed moment in the industry and to some an exciting and challenging one. To find out where the industry is going, we've turned to one of the well known executives in the business, Dave Bruner, former V.P. of Global Connectivity Services at Panasonic Avionics. In our view, no one knows more about the business of airline connectivity than Dave. We spent several hours with him and are pleased to have the opportunity to share his insights. SMW: Having spent many years in the IFE and connectivity market with Panasonic, can you give us an idea of how the aero market for entertainment and connectivity has changed since WiFi was first introduced on commercial aircraft? David Bruner: While inflight telephones have been around since the 80's, Wi-Fi was first introduced in 2014 by Boeing. With the "Connexion" as it was called, it was amazing to have Internet access and be able to send and receive e-mail in flight. Because I knew what was required to make it work, at the time, I thought the service was remarkable. Unfortunately, the revolutionary service disappeared by 2006 but since then, others have recognized the value of Internet in flight and launched new, more advanced services - Gogo, Global Eagle Entertainment, ViaSat and, of course, the venture I was involved in with the Global Communications Services division for Panasonic Avionics Corporation. In roughly 10 short years, the novelty of surfing the Internet at 35,000 feet over Greenland, Siberia or the Pacific Ocean has completely worn off, and today's fliers want vastly improved service with integrated entertainment and speeds and reliability comparable to their service at home, office or in their hotel. Achieving such levels of performance has been especially challenging as an aircraft in flight is without a doubt the hardest, most expensive place to deliver a megabyte of service. Fortunately, satellite communications has advanced significantly since the early days, and we are now able to deliver much higher quality service through the use of more powerful High Throughput Satellites, advanced modem architectures and better antennas. Today, what's evolved are services that combine content stored on aircraft servers with higher speed Internet access able to support web surfing, e-mail, social media access and, in some cases, streaming of movies from services like Netflix. Yet, as connection speeds increase in our homes and greater numbers of airline passengers access in-flight WiFi, those of us in the industry are continually challenged to meet the demand and, in fact, if the WiFi service is offered for free, I question whether their will be enough satellite capacity to keep up. SMW: While cellular service is offered on several international airlines, do you believe the FCC will ever change its position and allow voice calls on commercial aircraft? DB: No, unfortunately it appears that the U.S. congress believes that passengers are unable to control themselves and use the mobile phones respectfully. GSM service is available virtually everywhere else in the world without incidents. In reality, voice communication experiences only minimal usage to compared data services in the aircraft, just as it is on the ground. Voice communications is really not what is important here, what is needed is the GSM frequencies for use to compliment the unlicensed Wi-Fi frequencies. There simply isn’t sufficient wireless frequency to provide connectivity in the aircraft cabin. Virtually every passenger boarding an aircraft has a mobile phone and they should be able to choose to use it in the same way, either over Wi-Fi or on the cellular network, as they do on the ground. SMW: That's an interesting comment, Dave, and contrary to the predictions we are hearing about a real bandwidth surplus. Do you see a real shortage of satellite aero capacity on the horizon? DB: I think the issue boils down to whether airlines offer Wi-Fi for free. Past studies have shown that when the service is free, as many as 80% of the passengers use it. The thought of tens of thousands of passengers streaming movies is the ultimate capacity nightmare. So, it might be necessary for airlines to introduce tiered pricing where passengers are charged extra for use of bandwidth hungry applications. Despite the introduction of numerous new and more powerful satellites, that alone may not be enough to meet a massive increase in passenger demand. Consider that satellite capacity is not the only limitation. It's modem capacity and the size of the antennas on aircraft as well. On the ground or on a ship, it's possible to use very large antennas that permit higher capacities. For example, on a cruise vessel, 2.4 Meter antennas are commonplace. It's simply not possible to use antennas of that size on a commercial aircraft. So, while more and more HTS GEOs and LEOs are in the process of being launched and activated, the "pipe" into the aircraft may well be the limiting factor. SMW: Do you believe that when they become available, the lower latency advantage of LEOs and their polar coverage capability will result in massive refitting of aircraft with electronically steered, flat panel antennas or will airlines stay with GEO based services? DB: The bandwidth offered by LEOs could be extremely important to mobility. However, while the new LEO constellations offer the promise of low latency and global coverage, global regulatory approval is a big issue. Other countries as you may be aware, have plans to launch their own Ku-Band LEO constellations and and may block the previously announced global LEO initiatives. So, I believe that it's going to take a decade to get the regulatory approvals necessary for universal LEO coverage in Ku or Ka-Band. However, the need for high speed broadband on Polar routes will drive the adoption of electronically steerable flat panel antennas capable of both operation on both GEOs and LEOs. As you may be aware, unlike traditional mechanical aircraft antennas, the new ESAs are capable of accessing two satellites simultaneously, a capability that is absolutely essential to maintain continuous connectivity in a LEO or MEO environment. So, we will definitely see the emergence of these antennas and modems with the capability to roam seamlessly between GEO and LEO constellations. SMW: Currently, broadband is being supplied on aircraft primarily for passenger use, especially sending and receiving e-mails, Web surfing and entertainment. What applications do you see emerging for use by crew to improve the passenger experience? DB: There are lots of examples of how use of connectivity can result in an enhanced passenger experience. For example, an aircraft is delayed disrupting flight connections. While an airline's computers may automatically reroute a passenger, getting the revised flight itinerary to the passenger while in-flight alleviates the uncertainty associated with the disruption - either by transmitting notification to a passenger's mobile device or notifying them via a flight attendant, through a message sent to a flight attendant's iPad. Use of connectivity can also deliver an updated passenger manifest to the crew enabling them to identify and provide offer special attention to high tier frequent fliers. Flight attendants can be made aware of seat preferences, ultimate destinations, dining and drink preferences, connecting gates for ongoing flights - information allowing them to offer a more personalized flight experience and thereby generate repeat business. SMW: How can broadband connectivity improve efficiency in the cockpit during flight operations? DB - Some of the best uses today are flight optimization support during takeoff, in route and landing. for example, use of real time analysis of winds and communicating the optimum ascent or descent paths can deliver significant fuel savings and CO2 emissions. In route analysis of weather can also deliver safer, more comfortable, flights. While you can’t change weather, you can accommodate weather more effectively using inflight connectivity. SMW: Aircraft systems generate a huge amount of data through monitoring of engines and other systems. Besides the use of this data for preventive maintenance, what other real time transmission applications do you foresee that can improve the efficiency of aircraft operations and lower maintenance costs? DB: There are significant uses beyond just the monitoring of engines. Essentially, sensors on the aircraft can monitor any motor including those operating fans and motors in first and business class seats. So, the condition of many systems and devices can be tracked, lowering failure rates and minimizing maintenance related delays. SMW: Do airlines consider cockpit and aircraft systems connectivity via satellite a security risk? If so, will the potential for hacking slow the adoption of cockpit connectivity? For those airlines allowing connectivity, what types of security solutions are in place? DB: Security of the cockpit is a major concern of airlines. The idea that a passenger with a laptop could log onto the flight controls through the entertainment system is just not possible. Not only is the cockpit on a separate network, but inbound transmissions to the cockpit are limited to updates to pilot iPad. Engine and other performance data streamed to the ground is outbound only. So, access through the telemetry link is not possible. SMW: Gogo and SmartSky are currently developing high speed air-to-ground networks based on the use of unlicensed, high frequency spectrum. Do you believe satellite will ultimately replace ATG in the commercial jet markets and assuming that broadband satellite antennas are available for mid-sized and small business jets, in that market as well? DB: Currently, we are witnessing a significant decline in the cost of satellite bandwidth which will have a corresponding effect on the cost of providing Ku and Ka-Band services to commercial aircraft. So the cost per/megabyte of service will be less. However, installation of Ku or Ka-Band on an aircraft is still prohibitively expensive, running $300 to $400K on a commercial aircraft and up to $500K or more on a big business jet. So, today it's still a lot less expensive to equip and operate aircraft with ATG than satellite. Of course, the disadvantage of ATG is that it only functions when in range of land based antennas. So, in the short term, we will see a mixture of solutions. When LEOs become operational, I believe we will see satellite emerge as the dominant technology, ultimately displacing ATG. Not only will the LEOs have full global coverage which means passengers on aircraft flying Polar routes will have access, latency will be low and competitive with ATG. Finally, new flat panel electronically steered antennas will enable connectivity to mid sized and smaller business jets - aircraft that now can only use an ATG service backed up with Swift Broadband or Iridium. So, in brief, I see a mixed picture in the short term with long term connectivity dominated by satellite. SMW: As you know, Inmarsat is launching its new European Aviation Network in the next few months. Given the current state of the aviation connectivity market, what challenges will they have to overcome to make this a successful venture? DB: Franky, there are several. The European aviation connectivity market is a lot different that the one in the U.S. Flights are much shorter with most flights under three hours, which means you can't charge passengers as much as on the longer routes that are more prevalent in the U. S. . You also have comfortable, ultra high speed, WiFi equipped trains running between many of the major populations centers thereby eliminating the painful trek out to major airports. Finally, the market today is highly competitive. When Gogo launched its original service in the U.S., it had no real competition. Inmarsat will be faced with well financed satellite competitors including Panasonic, Gogo, Global Eagle and ViaSat. So, while success is possible, it will be challenging. SMW: Looking at the broader picture in the industry, I understand that many of the aero connectivity providers are up for sale and that consolidation is a likely possibility. What types of companies might be interested these sorts of acquisitions? DB: Franky, I think consolidation is inevitable, and that the most likely buyers would be the large cellular operators. As you know, the mobile market is saturated, and these firms are desperate to find new revenue streams. So, if the airline and other connectivity markets such as cruise continue to grow, cellular operators could be very attracted to these sectors. As you know, cellular on cruise vessels has been an attractive and profitable market - witness the success of the old MTN - AT&T venture. There's simply no reason why air, sea and land mobility wouldn't be an attractive market to enter - especially given the coming availability of 5G services. So, I think we could see a lot of merger and acquisition activity in the sector which will mirror the consolidation of service providers in maritime markets. Yes. Its going to be a very interesting future. SMW: Thank you, Dave.
"Despite the introduction of numerous new and more powerful satellites, that alone may not be enough to meet a massive increase in passenger demand. Consider that satellite capacity is not the only limitation. It's modem capacity and the size of the antennas on aircraft as well."
About David Bruner: David Bruner is the CEO of Aviation Communications Advisors where he provides IFEC consulting support for airlines, service providers, satellite operators and equipment manufacturers. Until recently, he was Vice President, Global Sales & Marketing for Panasonic Avionics Corporation where he was responsible for sales, marketing and customer relations for all Panasonic Avionics products and services - a $2.5B enterprise. David led the entry into connectivity for Panasonic, from initial business plan, through system development, and into commercial service. David had been with Panasonic for 15 years. Previously, he held executive positions for General Dynamics Airborne Electronic Systems, InflightOnline – a web Media Company focused on the in-flight market and AT&T Aviation. In total, David has over 35 years in the software, communications and aerospace industries, including 5 years at American Airline’s SABRE group.
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Big Advancements in Air Traffic Management on the Horizon
The Promise of the New Iridium and Aireon Services…
Like other segments of the mobility market, advanced satellite capabilities are driving changes in the communication requirements for aircraft crossing the world’s oceans. In February, the FAA revealed it will be putting new regulations in place that will mandate a minimum of two means of communication on over the ocean routes, making satellite an even more essential component of remote and oceanic air traffic management. This decision, combined with the coming availability of a new, satellite based aircraft location system pioneered by Aireon and a high bandwidth L-Band communications solution from Iridium, has the potential to fundamentally change air traffic management over oceanic routes. The story begins with the introduction of the Automatic Dependent Surveillance- Broadcast (ADS-B), a recently developed system designed to provide real time aircraft location. Using transmitters mounted on all aircraft, location information is broadcast to receiving stations on the ground and onward to air traffic control where it is posted on radar screens. The problem is that, to date, there has been no way to receive these signals over oceanic routes. So, controllers have had to rely on less efficient methods to locate aircraft over the ocean. Today, air traffic controllers (ATCs) create what are essentially ‘highways in the sky, known as “tracks,” between North America and Europe, and North America and Asia. This system has been used for decades and keeps aircraft separated by at least 30 to 50 miles in orderly lanes of traffic, as long as they carry the mandated communications equipment – usually a combination of HF and satcom. In some areas these separation minimally may be higher or lower based on equipage of the aircraft flying as part of the “track” system. These aircraft will then periodically check-in by using ACARS or satcom voice when they reach pre-determined waypoints on their route to provide ATC with their exact location at that moment. Updates can come as frequently as every 10 minutes or as infrequently as every 30 minutes or more. Due to the lack of real time location data available throughout the flight, controllers have been forced to separate aircraft by 50 miles or more. By placing ADS-B receivers on Iridium NEXT satellites, Aireon solves this problem by providing consistent real time location information, allowing controllers to reduce aircraft separation to 15 miles and thereby offer greater availability of “tracks” where aircraft can fly higher, saving as much as 2% of fuel. When combining Aireon’s ADS-B based real-time global surveillance capability with the new, advanced global communications capability offered by the Iridium NEXT constellation, air traffic controllers and airline operations centers will, for the first time, be able to coordinate real-time flight plan adjustments over remote and oceanic airspace, increasing the efficiency of the overall air traffic management system. The ability to communicate in real-time with air traffic control is essential to the optimization of oceanic airspace, especially now that real-time surveillance is on the horizon. Pilot requests for faster aircraft to pass older slower models, step climbs to better winds or the ability to avoid bad weather can be instantly orchestrated, while more direct routes and the ability to avoid certain airspace based on world events, can be implemented more quickly. In addition, due to the fact that the new Iridium NEXT satellites are LEOs, covering the globe from Pole-to-Pole, vs. Inmarsat’s that cover only sub Polar routes, aircraft flying over the Pole using Inmarsat may be completely out of data communication or forced to rely on HF radio. So, when airlines want the flexibility to use aircraft for multiple routes, including Polar, but not worry about whether aircraft will remain within communications coverage to transmit or receive broadband intensive data i.e. weather maps, the competitive balance swings solely to Iridium. That’s because Iridium NEXT satellites will offer much higher speeds than Inmarsat Swift Broadband - ultimately up to 704 Kbps on the uplink from the aircraft and eventually reaching 1.4 Mbps on the downlink - allowing airlines to transmit key flight data to the ground and graphic images to the cockpit, while making voice calls or utilizing the Iridium push to talk service (PTT). In the future, Iridium NEXT’s higher bandwidth capability may also be useful as airlines move toward the practice of transmitting data that is key to accident investigation to the ground thereby eliminating reliance on the “black boxes” that are often difficult to locate, especially when an accident occurs over water. Given the FAA’s long-established requirement for use of satellite systems on trans-oceanic aircraft routes and its recent decision, the world’s airlines should benefit substantially from Iridium’s investment in the new NEXT satellite constellation, its high bandwidth Certus service, as well as in Aireon, its superior solution for the real time transmission of location data from aircraft traversing the world’s oceans. A.G
With Hiber CEO, Ernst Peter Hovinga...
Hiber is unique. While there are a lot of satellite companies with designs on the satellite IoT market, we have yet to find a company with such a highly focused and well thought out market strategy. Utilizing low cost nanosatellites and off-the-shelf hardware in combination with proprietary software, Hiber's approach is truly disruptive, an approach that offers the opportunity to penetrate a billion Euro market for simplex IoT connectivity - segments such as fishing, agriculture and tank monitoring - with extraordinary, cost efficient and innovative technology. Established in 2016 and based in Amsterdam, Netherlands, Hiber has secured over 10 million Euros in angel investment and government grants. It has a management team led by Ernst Peter Hovinga, a former Inmarsat executive and successful executives from Internet companies JustEat and Booking.com. The company already has its first customers and is poised to launch its first two satellites this year. If you are interested in satellite based, IoT connectivity, you need to know about Hiber. To find out more about the company, we were able to secure an exclusive interview with CEO Ernest Peter Hovinga. SMW: Peter, your website tells a pretty compelling story. Can you give us a more in-depth look at the company and its history? Ernst Peter Hovinga: What we are offering is simplex, one-way, IoT solution for monitoring those applications that need monitoring but have never had it previously, markets such as propane tanks, water pumps, generators and other assets. Here's how we got started. Before we launched the company, we made sure we got the right people in the room that would allow for the proper regulatory framework, a feasibility study and a technical simulation. We also went out and talked to everyone in the industry including end users in our target markets. Next, we wanted to be sure we had the backing of the Dutch Telecommunications Agency, which is similar to the U.S. FCC. Adding the support of the Netherlands Space Office we were able to undertake a feasibility study etc. Afterward, we needed to find out what spectrum was available that could deliver on the promise of global IoT connectivity and could use small antennas that could fit in a small device. So, we chose spectrum in the 400 MHZ range which is in the UHF band. At that frequency we were able to develop a patch antenna which is 8 X 8 cm square and 1.5 cm in height, and a small, domed antenna which is 9 cm in diameter and 6 cm high – both allowing for deployment on the smallest devices. With our preliminary work concluded, we started Hiber two years ago – in 2016. Within two days of the founding of the company, I had a Dutch telecommunications license which allowed us to apply for spectrum at the ITU, making our company the front runner in the spectrum race – an achievement that helped us secure the first the first 5.5 Million Euros in angel funding plus 2.5 million in an ESA contract for further research. With the initial investments in place, we were able to develop the modems and antennas and will soon launch the first two nanosatellites and start serving our first customers. SMW: Can you give us an idea of the technology involved in the project and how it differs from other approaches to the satellite IoT market? EPH: Our whole concept is about simplicity. If you look at the space industry, companies like Iridium and Inmarsat, they all build satellites to last for a decade or more, and they need to over engineer and make them suitable for all kinds of purposes. On the other hand, our technology is very inexpensive and obsolescence proof. That's why we chose a simplex approach, using off the shelf components and inexpensive nanosatellites. Technology is evolving so rapidly that you can’t design a satellite that will last for ten years. Instead, you engineer a satellite that lasts two or three years. For example, IoT didn’t exist five years ago. Our philosophy is we build a forward compatible technology, not one that needs to be compatible with thousands of legacy devices- like Iridium and Globalstar. In essence, we are a software company. For example, we built software for the modem that only turns it on when a satellite passes within range. We patented that and the protocol that maximizes the uplink connectivity to the satellite. So, we have an extremely high spectral density. We are also aiming to process the data and demodulate and filter it onboard the satellite which will maximize the efficiency of the downlink. We take out everything that is not related to the message i.e. background interference and anything else that is not in that spectrum band – processes never before done on a satellite. This means we can process four million messages per satellite per/day. We also have unique economics. Our integrated modem/antenna technology will only cost 25 Euros initially and we expect to bring the cost down to 15 Euros by 2021. Connectivity cost is only 7.5 Euros per/year, and our batteries can last over 15 years when transmitting at 1250 bit per day. To further enhance simplicity, we offer our product in a box along with an easy to use Developers Kit. Furthermore, our nanosatellites are disposable allowing for frequent upgrade, and our entire system is focused on doing only one thing and doing it well. SMW: I understand you are using nanosatellites to handle the IoT traffic. Can you explain the functionality of the proposed constellation, the frequency or frequencies employed and the service capability? EPH: We will launch our first two nanosatellites this year, one with the Indian Space Research Polar Satellite Launch Vehicle (PSLV ) which is planned for August and one with SpaceX in October. Built by the Dutch company Innovative Solutions in Space and operating in the 400 MHz band with an S Band downlink, each satellite is fully independent. We use a "store and forward system" without inter-satellite links so we can start with a single satellite and already deliver a global solution. Launching these satellites in a Polar synchronous orbit means with one satellite you visit the Poles 16 times per/day and the United States, 5 times per/day. Ultimately we plan for sixteen satellites by 2021 and based on demand, more thereafter. 16 satellites will facilitate an hourly message service at the equator and every 15 minutes at 45 degrees latitude. So, by 2021, we will be able to deliver near real-time services. SMW: You spoke to us about the primary target markets for your service. Can you give us an idea of the market size and some typical examples of one or more business cases? EPH: Our targeted applications alone represent an addressable market of close to 160 million devices with an ARPU of 7.5 Euros per-device for connectivity only or around 1 Billion Euros annually. Our pilot customers – the ones who have signed up – represent over two million subscriptions. If you look at the addressable market of the pilot customers, it’s around 38 Million Euros for the applications they are going to deploy. It’s soil monitoring, soil condition monitoring climate stations and propane tank monitoring. For example, there are 80 million propane tanks in the U.S. and they are hardly being monitored. With remote monitoring, the propane delivery company can optimize its deliver route, replacing only those tanks that need to be replaced thereby reducing the number of truck rolls by 75%. Today, they are trying to do this now with GSM cellular, but the devices are battery hungry and the airtime is costlier than our solution. There is also a very large market in fishing, especially for an inexpensive solution that can track the location of fishing boats operating in areas with highly restrictive fishing regulation i.e. European waters. SMW: Your technology and marketing seem to be very well researched. Of course the ultimate questions are how will you distribute the market, and how do the various players in the Value Chain make money? EPH: The hardware is being built and sold by third party integrators. For example, in the fishing market, AddValue technologies of Singapore is building a completely integrated device that tracks vessel motion, records vessel location and related information and transmits it via our modem and antenna to our satellites. They will sell it to third party distributors who work in the market. These distributors will be able to add value and achieve significant margins by selling complete solutions based on value rather than on hardware and connectivity cost, thereby achieving substantial margins. So, for example, our distributors will sell asset retrieval, harvest advice, position data and other thin line data applications. If you look at our launching customers, half are in agriculture, liquid monitoring, fishing and small vessels. SMW: Thank you, Ernst, for sharing so much about Hiber and its compelling and disruptive offering.
Adding the support of the Netherlands Space Office we were able to undertake a feasibility study etc
Disrupting the IoT Satellite Market: The Promise of Hiber
"Our targeted applications alone represent an addressable market of close to 160 million devices with an ARPU of 7.5 Euros per-device for connectivity only or around 1 Billion Euros annually."
About Ernst Peter Hovinga: Ernst Peter Hovinga serves as CEO of Hiber In 2016, Mr. Hovinga, along with several other entrepreneurs from Amsterdam, founded Hiber. Prior to Hiber, Mr. Hovinga served as General Manager of NSSL Global and Chief Commercial Officer at GE Satcom and V.P at Stratos. Mr. Hovinga studied Economics at the University of Groningen majoring in Finance and Marketing, including a minor in International Economic Relationships, amongst others.
There are many mobility related satellite industry events and unless you have an unlimited budget, here are the "must attends" and others that may be of interest. Note that the "hot" sectors are Cruise, Aero and Yachts. Upcoming Conferences: ****** World Satellite Business Week: September 10-14th 2018 - Paris France: Notably the best conference for networking among top industry executives. A "must attend" with an excellent program. The 2017 conference was excellent. We attended the "Smart Plane" session and found it especially interesting. *** Comsys Global VSAT Conference: London: September 11-14: While an interesting conference, unfortunately it conflicts with the Euro Consult Conference. If you are interested in networking among the satellite industry elite, we recommend you do World Satellite Business Week instead. **** SMM Hamburg: September 4-7 2018: Highly recommended for those who follow the use of satellite connectivity on ships and in particular, on conta vessels. While the very large event covers all shipping products, you'll find most providers of vessel connectivity exhibiting at the show. **IBC Amsterdam, Netherlands: September 13th - 18th. A good conference for broadcast and related technologies. ****APEX EXPO (Aircraft Passenger Experience Expo): September 24-27, 2018 - Boston Mass. Highly recommended for those who follow the aircraft connectivity and in-flight entertainment markets. ***** 32nd Annual Small Satellite Conference August 4-9 2018, Logan Utah: This is the premier conference on small satellites and is highly recommended. Given the tremendous interest in this segment, the conference is a must attend: During the Conference, speakers will explore the new technologies, design methods, processes, operational constructs, and activities that inform and secure the success of small satellite missions. Other Conferences/Shows of Interest: ***Digital Ship CIO Forum/Cyber Resilience Forum: Held in numerous locations around the world, these events are notable for their focus mainly on IT related issues including cyber security, IoT and M2M. Sponsored globally by Marlink, they are held nearly everywhere.
Upcoming and Recommended Satellite Mobility Events
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