Editorially Speaking: "Against All Odds, Korea's Hanwha Announces Yet Another LEO" "Emerging from Bankruptcy, Global Eagle Takes Flight" with CEO Josh Marks and EVP of Connectivity Mike Pigott" "After Loon, Can HAPs Rise Again?" with Avealto CEO Walt Anderson "Speedcast - The Revival" with newly appointed CEO Joe Spytek
In This Issue...
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 Connectiviy 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)
Satellite mobility World
Highlighting Disruptive, New, Mobility-Focused Satellite Ventures and Technologies
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Cover: Avealto HAP takeoff
Volume VI, No. V May 2021
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Welcome to the May 2021 Issue of Satellite Mobility World. In May we're covering a variety of exciting topics. In our editorial, Against All Odds, Korea's Hanwha Announces Another LEO, we critique the company's plans and explore this bold initiative. In other major developments, Global Eagle Entertainment and Speedcast have just emerged from bankruptcy. Armed with fresh capital, the CEOs of both companies share their strategies on how they plan to move forward. In their first exclusive interview after exiting Chapter 11, GEE CEO Josh Marks and EVP Mike Pigott address the rapidly evolving aero connectivity space, Intelsat's acquisition of Gogo, vertical integration, LEOs, and shares their competitive strategy. Turning to Speedcast, we interview newly appointed CEO Joe Spytek. Like aero, maritime markets have been hard hit by the pandemic. In Joe's interview, we learn how the company has weathered the crushing decline in its key markets and how he sees the company's future. For our technology and venture feature, we take another look at high-altitude platforms (HAPs). In it, the well-known entrepreneur and founder of the HAP company Avealto, Walt Anderson, reveals why Google's Loon failed and why his company has the right strategy to succeed in this challenging market. If he's right, we could see HAPs emerge as a viable alternative to satellite in mobile backhaul and a realistic alternative to deliver broadband Internet to remote areas. Join us for a look at these exciting topics and the latest news in mobility. 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 2021 (Tel +1-703-622-8520)
Table of Contents... "Hot News and Commentary" (pg.3) "SmallSat News and Ventures" (pg. 4) Editorially Speaking: "Against All Odds, Korea's Hanwha Announces Another LEO" (pg.4) "Emerging from Bankruptcy, Global Eagle Takes Flight" with CEO Josh Marks and E.V.P. Mike Pigott (pg.9) "After Loon, Can HAPs Rise again?" With Avealto CEO Walt Anderson (pg.18) "Speedcast - The Revival" with CEO Joe Spytek (pg.28) Upcoming and Recommended Mobility Events (pg.40)
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Hot News and Commentary
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Eutelsat enters LEO Space Through Investment in OneWeb Paris, 27 April 2021 – Eutelsat Communications (Euronext Paris: ETL) has entered into an agreement with OneWeb for the subscription of a c.24% equity stake, becoming a leading shareholder of the company alongside the UK Government and Bharti Global. Eutelsat will invest $550 million in OneWeb, with closing expected in H2 2021 subject to regulatory authorisations. With much of its global network already deployed, the OneWeb constellation, which enjoys valuable ITU-backed priority spectrum rights, will operate 648 satellites in low orbit (LEO) offering low latency. This first generation of satellites will offer significant regional coverage by the end of 2021, reaching global coverage the following year. OneWeb will be the first complete non-geostationary constellation with truly global coverage, significantly ahead of competing projects. It will deliver 1.1 Tbps of capacity addressing the government, fixed data and mobility markets. Plans include a second-generation constellation that will provide significant enhancements in terms of capacity, flexibility and economics. It anticipates annual revenues of circa $1 billion within three to five years following the full deployment of the constellation, with a partnership approach and profitable wholesale business model. Eutelsat’s investment leaves OneWeb almost fully funded and the company is well advanced in terms of securing its remaining funding needs this year. Eutelsat’s investment will come with similar governance rights to the UK Government and Bharti, including board representation, where its position and expertise as one of the world’s leading satellite operators will help to drive the success of the new constellation. In a context where LEO features will enable the extension of the addressable market for satellite operators well beyond their current reach, the complementarity of Eutelsat’s and OneWeb’s resources and assets is expected to optimize both companies' commercial potential thanks to Eutelsat’s strong commercial and institutional relationships, recognized technical expertise and global geostationary fleet, and OneWeb’s ability to address the multiple applications requiring low latency and ubiquity. The investment will be 100% cash financed through Eutelsat’s liquidity position of €1.9bn as at end-March 2021[1] and the $507m US C-Band auction proceeds, and will be accounted for under the equity method. It is consistent with Eutelsat’s financial hurdle rates and does not alter its financial objectives, which are fully confirmed, including the medium-term net debt / EBITDA target of c.3x and a commitment to solicited Investment Grade credit ratings. Eutelsat’s policy of a stable to progressive dividend is also reiterated. Commenting on the agreement, Rodolphe Belmer, Eutelsat’s Chief Executive Officer said: “We are excited to become a shareholder and partner in OneWeb in the run up to its commercial launch and to participate in the substantial opportunity represented by the non-geostationary segment within our industry. We are confident in OneWeb’s right to win thanks to its earliness to market, priority spectrum rights and evolving, scalable technology. We look forward to working alongside the UK Government, Bharti and the other shareholders to open new opportunities and market access to ensure OneWeb maximizes its potential. OneWeb will become our main growth engine outside our broadcast and broadband applications, as we continue to maximize cash-flow extraction from our highly profitable heritage business and grow our fixed broadband vertical leveraging our geostationary assets.” KLM Introduces Viasat In-Flight Wi-Fi on European Flights AMSTERDAM and CARLSBAD, Calif., April 22, 2021 /PRNewswire/ -- Viasat Inc. (NASDAQ: VSAT), a global communications company, and KLM Royal Dutch Airlines, will bring connectivity to 18 of the airlines' Boeing 737-800 fleet and 21 of its Embraer E195 aircraft. The 737-800's are expected to be outfitted with Viasat's latest in-flight connectivity (IFC) equipment by the end of 2021, and in service by early 2022, and specifics around the Embraer E195 fleet will be announced at a later time. Both fleets will operate European flight routes only. Viasat's IFC equipment is currently installed on two KLM narrow-body Boeing aircraft. During the first week of service, which began today, KLM will encourage passengers to trial the service free-of-charge and provide insights to further optimize the onboard Wi-Fi experience. In-flight connectivity service tiers KLM will initially offer three in-flight connectivity packages—Messaging, Surf, and Stream—on all Viasat-equipped aircraft. The Messaging option will give all passengers 30-minutes of free text messaging via WhatsApp, Facebook Messenger, WeChat, among other messaging apps. The Surf and Stream options, which can be purchased in-flight, will give passengers the ability to do more on board, with options to surf the internet/email as well as enjoy full video and audio streaming. "Being internet connected when on-the-go is a top priority for our customers," said Boet Kreiken, executive vice president, Customer Experience, KLM. "That's why we're working with Viasat to specifically define and tailor an in-flight Wi-Fi approach that meets current and future IFC requirements on short- and medium-haul European flights. We believe this new collaboration will enable us to deliver more memorable connected experiences when passengers fly on Viasat-equipped KLM aircraft." Don Buchman, Viasat's vice president and general manager, Commercial Aviation added, "KLM came to us seeking an IFC partner that could deliver new, affordable ways to engage and entertain passengers in-flight, with options that included streaming, scrolling and staying connected. In understanding their needs, we delivered a high-value IFC service that can support rising data requirements and the latest internet trends—anytime and on any short hop European flight." Gilat Achieves Critical Milestone in Peru with Approval to Enter Operational Phase, Unlocking Access to Recurring Revenue of Multi Million Dollars per Annum Petah Tikva, Israel, April 29, 2021 — Gilat Satellite Networks Ltd. (NASDAQ, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, announced today that it has reached a critical milestone in Peru with approval to enter the operational phase of the telecom project awarded in 2015 for an aggregate value of $108M. This phase enables the start of delivery of broadband internet services to over a million and a half people in Cusco. Entering the operational phase will enable Gilat to unlock access to recurring revenue of multi million dollars per annum of operations fees, for a period of ten years, as well as to continue selling services over the network. Furthermore, during the project’s operation, over 600 representatives of schools, health, post and police stations will receive training, and 71 hot spots will be established in public spaces to provide internet to the population. “I am most pleased to receive approval from the government of Peru, to enter into the operational phase of our project in Cusco,” said Arieh Rohrstock, General Manager Gilat Peru and Corporate SVP. “We are delighted with this remarkable milestone that will boost our profitability both from operational fees as well as services over the network while delivering on our corporate value of contributing to bridging the digital divide in Peru.” ThinKom Satellite Antennas to Be Tested During U.S. Army Armored Brigade Pilot Program HAWTHORNE, Calif. – April 20, 2021 – ThinKom Solutions, Inc., has been selected to supply phased-array satellite terminals for a pilot program evaluating communications on-the-move (COTM) options for U.S. Army Armored Brigade Combat Teams (ABCT). The ABCT COTM solution will integrate enhanced mobile network solutions directly onto select vehicles to make command posts more expeditionary, while enabling soldiers to retain network connectivity as they drive across the battlefield. The Army is currently setting the stage for an ABCT On-The-Move (OTM) pilot this year, to evaluate new commercial network system prototypes integrated onto select ABCT vehicles. The goal is to enhance mobile battlefield ABCT network communications, mission command, situational awareness and ultimately unit lethality. Three ThinKom ThinSat® 300 vehicular satellite antennas were acquired by General Dynamics Mission Systems for testing as a design option for mounting on command-post vehicles in armor formations. As a subcontractor, ThinKom provided these three antennas as part of the Army’s contract award to General Dynamics on Sept. 30, 2020, to support integration, engineering and fielding services for the ABCT COTM experimentation effort. The Ku-band ThinSat 300 antennas are based on ThinKom’s patented and proven Variable Inclination Continuous Transverse Stub (VICTS) phased-array technology. VICTS antennas are currently deployed on 1,600+ aircraft with over 20 million accrued operational hours, representing an impressive 100,000 hours mean-time-between-failure record. Vehicle-mounted VICTS antennas are also widely deployed in a range of commercial and government COTM programs. ThinKom’s low-profile, lightweight antennas provide industry-leading spectral efficiency and are capable of sustaining network connectivity at high vehicle speeds, on-road or off-road. They support robust network operations at very high and extremely low elevation-angle requirements with near-instant connectivity recovery after partial or sustained blockages. Designed to work with a full range of modems and networks, the ThinKom system provides flexible “future-proof” interoperability options with current and next-gen satellite systems, including geostationary and low earth orbit constellations. The COTM experimentation program is expected to lead to prototype deployment and testing under the Army’s two-year Capability Set cycle in 2023, according to the U.S. Army’s Program Executive Office for Command, Control, Communications-Tactical. “The ABCT pilot program will demonstrate that our field-proven commercial off-the-shelf technology can provide a reliable and low-cost solution to meet this demanding requirement in support of U.S. armed forces,” said Bill Milroy, ThinKom’s CTO and Chairman. Milroy also noted that ThinKom recently completed successful trials of a VICTS antenna using the frequency-hopping waveform on a U.S. protected communications satellite network. Gilat Receives Over $5M for Cellular Backhaul Expansion from Tier-1 Mobile Network Carrier in Japan Petah Tikva, Israel, April 22, 2021 — Gilat Satellite Networks Ltd. (Nasdaq: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, announced today that it received over $5M for cellular backhaul over satellite expansion from Tier-1 Mobile Network Carrier in Japan. The Mobile Carrier will utilize Gilat’s SkyEdge II-c platform to quickly expand coverage to rural zones that are lacking fiber access, as well as to provide emergency response in the case of earthquakes or other natural disasters. An aggressive deployment schedule was put in place to fulfill the carrier’s requirements. “The leading Mobile Carrier, required Gilat’s proven cellular backhaul solution to meet its aggressive deployment schedule and to meet interoperability standards,” said Abhay Kumar, Regional Vice President, APJ at Gilat. “This win adds on to other Japanese and worldwide Tier-1 operators who are benefitting from Gilat’s leading cellular backhaul technology, with a joint vision of delivering connectivity to people in the most remote regions, as well as to providing the essential emergency response readiness in a disaster-prone country such as Japan.” European Court of Justice Dismisses Competitors’ Attempts to Limit Operation of European Aviation Network The European Court of Justice (ECJ) today issued a milestone decision answering a set of questions referred to the ECJ in proceedings initiated by Eutelsat (and supported by Viasat) regarding Inmarsat’s European Aviation Network (EAN). The decision rejects the arguments of Inmarsat’s competitors, which have been trying for years to deprive European consumers of the pro-competitive, innovative and efficient EAN service offering. Inmarsat operates EAN with Deutsche Telekom and has always known that its EAN platform complies with applicable EU rules. Brad Swann, Inmarsat General Counsel, said: “Inmarsat welcomes the ruling of the European Court of Justice rejecting our competitors’ arguments aimed at limiting the operation of the European Aviation Network. EAN is an asset for Europe as a whole and it is proving very popular with passengers and airlines. Inmarsat looks forward to continuing to provide the rapidly growing number of EAN users with a world-leading in-flight connectivity experience.” This decision by the ECJ today is final and binding. KVH Increases Data Speed and Expands Coverage for AgilePlans Solution Designed for Smaller Commercial Vessels MIDDLETOWN, R.I., April 15, 2021 (GLOBE NEWSWIRE) -- KVH Industries, Inc., (Nasdaq: KVHI), announced today that its AgilePlans® Regional solution designed for fishing vessels, workboats, and smaller commercial vessels now features data speeds as fast as 6 Mbps down/2 Mbps up and worldwide coverage providing vessels that typically work in regional waters with greater geographic flexibility. AgilePlans Regional is a Connectivity as a Service (CaaS) subscription-based model that includes a choice of hardware (TracPhone® V30, KVH’s newest and easiest-to-install ultra-compact system or the 37 cm TracPhone V3-HTS antenna with expanded network management), unlimited email and texting, installation in as many as 4,000 ports and locations, cybersecurity protection, KVH OneCare™ maintenance, and no commitment, all for one monthly fee. “The challenges of the pandemic in the past year showed just how important reliable satellite communications are for working vessels and we are committed to ensuring that smaller commercial vessels have access to a solution that meets their needs,” says Mark Woodhead, KVH executive vice president for mobile connectivity. “The no-commitment, all-inclusive AgilePlans model is designed to help fleets upgrade their satcom with no upfront CAPEX costs, which might otherwise be a barrier.” The AgilePlans Regional service complements KVH’s AgilePlans Global service, which is offered with the 60 cm TracPhone V7-HTS (with data speeds as high as 10/3 Mbps down/up) and the 1 meter TracPhone V11-HTS (with data speeds as high as 20/3 Mbps down/up), making AgilePlans available for commercial vessels of all sizes. Globalstar Brazil Partners With CISA Trading Bringing Asset Management Solutions For The Oil and Gas Sector In Brazil COVINGTON, La.--(BUSINESS WIRE)--Apr. 14, 2021-- Globalstar do Brasil Ltda., a wholly owned subsidiary of Globalstar, Inc. (NYSE American: GSAT) and Cisa Trading, a company with 25 years of experience in trading operations within the oil and gas sector have partnered together to bring asset management solutions to Brazil. Already showing early success, the partnership has delivered improved operations within the supply and management of one of the biggest oil and gas companies in the world. As a requirement from the contractor, all 4,400 Cisa Trading containers require tracking and monitoring via satellite technology as they are moved in remote areas out of cellular coverage. Globalstar SmartOne Solar devices were selected to meet operational requirements. Powered by solar energy and with ATEX, IECEx, IP68/69K and HERO certifications, this powerful device can be operational for up to 10 years with little to no maintenance, bringing efficiency and cost reduction to operations. “The O&G sector is a very concentrated and competitive vertical in Brazil. We are excited to have the opportunity to procure this business and confident the partnership with Cisa Trading will deliver an effective long-lasting solution to the contractor,” said Juan Porras, General Manager of Globalstar for Latin America. “This is just one of many key steps in our company’s strategy to expand our IoT business in key verticals across the region and the globe.” “For our company it was an excellent opportunity to offer our client a state-of-the-art solution for controlling the location and movement of its assets, optimizing the use of the equipment and interacting proactively with its operational team. This strategic alliance demonstrates the confidence we have in the Brazilian oil and gas market and in the potential of our client,” said Edward Karic, Executive Director of Cisa Trading Oil and Gas Division. Brazil has become a relevant global player in the production of crude oil with increasing exports over the last decade. The quality of the product has also increased since the exploration of pre-salt layer supplying a lighter oil which is used to produce gasoline and diesel, some of the most valued products. Brazil expects to be among the six biggest oil crude exporters by 2030 which will bring additional opportunities and increased demand for various IoT solutions. Indonesian Government Deploys Iridium® Push-to-Talk, Overcoming Remote Communications Challenges MCLEAN, VA., APRIL 13, 2021 – Iridium Communications Inc. (NASDAQ: IRDM) today announced that the Republic of Indonesia’s government has adopted Iridium Push-to-Talk (PTT) devices to support communication efforts across the country. By fully deploying 500 Iridium PTT handsets, the Indonesian government now has a reliable “grab-and-go” real-time satellite communications solution, ideal for communications on-the-move applications across the country’s diverse island landscapes. As the largest archipelago in the world, Indonesia is made up of five major islands and more than 17,500 smaller islands, of which about 6,000 are inhabited.1 The size and scope of its territory makes building and maintaining cellular or land-mobile radio (LMR) network infrastructure expensive, challenging and impractical. It also leaves a need for communications resiliency across all of Indonesia, especially during and after natural disasters, as the country’s topography is subject to earthquakes, volcanic eruptions, and tsunamis. During emergencies, Indonesian government personnel deploy on Search and Rescue missions to its remote islands that may have damaged or unreliable connectivity. Iridium PTT is helping the country conquer these challenges, immediately providing an easily deployed, cost-effective solution for reliable real-time communications on land, at sea or in the air. Iridium service provider PT Amalgam Indocorpora supported the implementation by providing the Indonesian government with customized Icom IC-SAT100 PTT devices. With one-to-many communication at the push of a button and Iridium's truly global coverage, the devices help ensure Indonesian government personnel remain connected. This capability brings immense value to the Indonesian government as they bridge the previous connectivity gap, allowing deployed teams to efficiently communicate with one another across the country’s islands over the Iridium network. HughesNet in Puerto Rico Expands to Serve Increased Demand for Broadband Germantown, MD, April 6, 2021 – Hughes Network Systems, LLC (HUGHES), an innovator in satellite technologies and networks for 50 years, today announced it has secured additional capacity over Puerto Rico for HughesNet®, the leading satellite Internet service. Made possible by engineering the Hughes 63 West satellite payload, the capacity increase will enhance the customer experience for current HughesNet customers across Puerto Rico and enable Hughes to serve even more customers on the island with affordable, reliable Internet access. “Due to the pandemic and recent natural disasters, the people of Puerto Rico understand the value of being connected,” said Peter Gulla, senior vice president, Hughes. “Across the island, HughesNet delivers internet access by satellite so people can work from home, attend school, and keep up with latest health and disaster information. HughesNet goes where other providers can’t reach. The need for connectivity has never been never greater and this is why we continue to optimize HughesNet to connect more people and better serve our existing customers.” Recently named the Best Satellite Internet Provider of 2021 by U.S. News & World Report 360 Reviews, HughesNet connects more than 1,500,000 families and businesses across the Americas at broadband speeds in areas that cable and wire-line providers have largely bypassed. Available in rural and remote locations—even in the most difficult to reach places—HughesNet provides Puerto Ricans with fast and reliable Internet access so they can browse the web, access government and health information, watch videos, send and receive email, enjoy social media, conduct online banking and more. Hughes continuously innovates to better serve its customers and connect more people to the Internet, as evidenced by these latest capacity enhancements in Puerto Rico.
Smallsat News and Ventures
QinetiQ to Lead Development of Hypersat’s Next Generation Hyperspectral Satellites, Due for Launch by Virgin Orbit in 2023 Farnborough, UK April 21, 2021 - Hypersat has awarded a design-phase contract to QinetiQ Inc. (QinetiQ) for their next generation hyperspectral satellite. This study will be an enabling activity for a potential constellation of six low earth orbit (LEO) satellites that Hypersat plans to launch, and which will be capable of producing greater information about the material properties on Earth than any current capability in orbit. QinetiQ will lead a team of specialist engineering and technology organisations across the US that includes Redwire, Millennium Engineering and Integration, LLC, and Brandywine Photonics. The team selected Virgin Orbit as the launch provider in part because of the unparalleled agility, mobility, and responsiveness afforded by air-launch, which allows for shorter call-up times and more flexible scheduling for customers, as well as direct injection into precise target orbits. In addition to the value for commercial customers, this capability enables a major strategic advantage to government organisations seeking to maintain unencumbered overhead intelligence. Derek Woods, Founder, President and CEO of Hypersat LLC, said; “The partnership with QinetiQ and Virgin Orbit ensures our satellites are on a path to orbit with the most capable team possible. We look forward to redefining earth observation with an unparalleled hyperspectral and long wave capability”. Each satellite will achieve its incredible resolution by offering hyperspectral imaging - the ability to capture and process an image at wavelengths across the whole reflective spectrum from visible light to longwave infrared, pixel by pixel. This enables the identification of items in an image with superb precision, whether a camouflaged vehicle; diseased crops within a harvest; or gases leaking from a pipeline. That level of information allows users to make informed decisions only dreamed of in the past. Mary Williams, President, QinetiQ Inc. said: “We are excited to partner with Hypersat and Virgin Orbit on this ground breaking program. QinetiQ’s expertise in hyperspectral systems development and data analytics is helping to provide cutting edge technology for both public and commercial organizations; bringing space-based technology to defense and security customers while also supporting the remote sensing needs of civil, environmental and commercial industries.” The first satellite, to be launched in early 2023, will have 500 spectral bands across the visible to shortwave infrared region and a ground sample distance of 6m – almost twice that available from existing LEO satellites. The following five satellites will offer longwave infrared images and even more capability in the shortwave infrared region. The high spatial and high spectrum pixel resolution available from its sensor payload will allow the satellites to be used not only in defense and security applications, but also for other commercial sectors, such as agriculture and insurance, where highly accurate earth observation images can inform critical decisions. Rocket Lab To Develop Mission Operations Control Center For MethaneSAT Climate Monitoring Satellite pp Long Beach, California. April 22nd , 2021 – Rocket Lab, the global leader in launch and space systems, will play a critical role in an international climate change mission by developing a Mission Operations Control Center (MOCC) for MethaneSAT, a unique satellite mission created to foster and accelerate reductions in the emissions of methane, a potent greenhouse gas responsible for at least a quarter of today’s planetary warming. Led by the non-profit Environmental Defense Fund, the 350 kg class MethaneSAT will locate and measure methane from the oil, gas, and agriculture industries around the globe, enabling regulators, businesses, and researchers to track and reduce emissions faster. With a highly sensitive spectrometer capable of detecting methane concentrations as low as two parts per billion, MethaneSAT will quantify and report emissions in near real-time from sources large and small, providing regular monitoring of regions accounting for more than 80% of global oil and gas production. MethaneSAT will publish data free of charge so that stakeholders and the public can compare progress by both companies and countries. In its critical role supporting the mission, Rocket Lab will develop, manage, and operate the Mission Operations and Control Center (MOCC) for MethaneSAT in Auckland, New Zealand, as part of the New Zealand Government’s NZD$26 million commitment to the international program. Rocket Lab will deliver the critical IT and software infrastructure necessary to task the satellite on orbit including tracking, pointing and positioning, and collision avoidance. Rocket Lab will also manage the collection and dissemination of climate change data generated by MethaneSAT to the program’s international cohort of scientists and researchers. MethaneSAT’s team includes experts from some of the world’s most seasoned aerospace organizations in both the commercial and public sectors, as well as researchers from Harvard University and the Smithsonian Astrophysical Observatory who are developing MethaneSAT’s data acquisition and analytical capabilities. Rocket Lab brings deep space heritage to the MethaneSAT project having launched 19 missions, deployed more than 100 satellites, and operated its own Photon spacecraft on orbit. Having developed two state-of-the-art Mission Control Centres in New Zealand and the United States, Rocket Lab is able to bring extensive experience to the MethaneSAT project, enabling the New Zealand Government to deliver on its commitments to the MethaneSAT programme and participate in its first internationally partnered space mission. Astranis Raises $250 Million From Top Growth Investors With new funding Astranis will scale to meet global demand for affordable satellite broadband SAN FRANCISCO, April 14, 2021. — Astranis, the company building the next generation of telecommunication satellites, today announced a $250 million Series C financing round, valuing the company at $1.4 billion. The financing was led by funds managed by BlackRock, with significant participation from new investors Baillie Gifford, Fidelity Management & Research Company LLC, Koch Strategic Platforms, Monashee Investment Management, and Uncorrelated Ventures. Existing investors Andreessen Horowitz, Venrock, Fifty Years, ACE Early Stage Partners, Harpoon Ventures, Indicator Fund, Industry Ventures, Jaan Tallinn, Jeff Dean, Jerry Yang’s AME Cloud, Jude Gomila, Refactor Capital, Rising Tide Fund, SOMA Capital, and others also participated in the round. Astranis is solving one of the largest challenges facing the modern world: reducing the cost of internet access to get the next four billion people online. The new funding will be used to significantly expand production of Astranis’s unique microsatellite platform, built to satisfy the significant global demand for affordable broadband. Additionally, Astranis will dramatically accelerate new technology research and development to support its next-generation platforms. That includes the company’s proprietary software-defined radio technology, which increases satellite performance and flexibility, and allows manufacturing at scale, lowering the price point to end-consumers. Astranis’s satellites can be deployed at a low cost and be built in months, not years. That’s in contrast to traditional satellites that require hundreds of millions of dollars of capital and five or more years to get new capacity online. The smaller size of Astranis’s satellites — just 350 kg, or about 20 times less than traditional satellites — and their deployment into geostationary orbit (GEO) allows Astranis to start providing coverage with just a single MicroGEO satellite and bring capacity online quickly, focusing beams of broadband connectivity right where it’s needed. “We are solving one of the biggest problems facing the world today,” said Astranis co-founder and CEO John Gedmark. “Four billion people do not have reliable access to broadband internet. Getting connectivity to those who need it the most changes lives in a profound way. It empowers people to take control of their health, education, and economic situation. We’re talking about something that is now absolutely part of the base of the hierarchy of needs." Astranis has projects in work around the globe to deploy satellites to bring connectivity to some of the world’s most underserved areas. BofA Securities, Inc. acted as sole placement agent on this transaction. About Astranis Astranis is building small, low-cost telecommunications satellites to connect the four billion people who currently do not have access to the internet. Each spacecraft operates from geostationary orbit (GEO) with a next-generation design of only 350 kg, utilizing a proprietary software-defined radio payload. This unique digital payload technology allows frequency and coverage flexibility, as well as maximum use of valuable spectrum. By owning and operating its satellites and offering them to customers as a turnkey solution, Astranis is able to provide bandwidth-as-a-service and unlock previously unreachable markets. This allows Astranis to launch small, dedicated satellites for small and medium-sized countries, Fortune 500 companies, existing satellite operators, and other customers. Astranis launched a first test satellite into orbit in 2018 and is now underway with its first commercial program—a satellite to provide broadband internet for Alaska that will more than triple the available bandwidth across the state. The satellite is undergoing assembly, integration, and test and is set for a launch later this year. Hawkeye360 Leverages Machine Learning from Amazon to Optimize Maritime Security and Vessel Monitoring Capabilities. Purpose-built, proprietary algorithms rapidly derive maritime domain insights from radio frequency and vessel information Herndon, Virginia (April 20, 2021) — HawkEye 360, the first commercial company to use formation-flying satellites to create a new class of radio frequency (RF) data and analytics, today announced the development of new maritime security and vessel monitoring capabilities that combine HawkEye 360’s powerful RF geolocation services with a customized machine learning model developed through Amazon Web Services’ (AWS) Machine Learning (ML) Solutions Lab. The capabilities, which will be integrated into the HawkEye 360 portfolio of products, leverage underlying vessel characteristics and behavior to predict whether a given vessel is likely to engage in similar activity as sanctioned vessels. HawkEye 360 used Amazon SageMaker Autopilot — a fully managed service that helps make it easy to build, train and deploy ML models quickly — to develop the purpose-built, proprietary algorithms undergirding the new capabilities. These algorithms can help generate deeper insights into RF data in half the time than was previously possible. “RF signals can provide valuable insight into commercial vessel activity across the globe, even when bad actors seek to hide their location,” said Tim Pavlick, Vice President of Product at HawkEye 360. “With these machine learning-backed capabilities, we will empower customers to cut through an ocean full of noise to obtain more timely and critical insights from maritime RF data to improve mission outcomes and prevent illegal and illicit activities.” The new algorithms evaluate vessels’ historical data and known interactions, along with contextual vessel characteristics to generate insights into the complex connections involved in illicit maritime vessel activity, such as illegal fishing, human trafficking, ship-to-ship transfer of illegal goods, smuggling and more. This provides analysts with a holistic view of maritime activity and the ability to detect, predict and zoom in on high-risk activity. “We are pleased to support HawkEye 360 to quickly develop machine learning models to solve problems taking place in the vastness of the world’s oceans,” said Sri Elaprolu, Senior Manager of Amazon Machine Learning Solutions Lab. “By combining HawkEye’s data and deep domain expertise with Amazon SageMaker Autopilot, HawkEye 360 is able to cut in half the time for machine learning model development and deployment. That frees up time for their data scientists to focus on creating new and innovative solutions to the world’s problems.” This RF signals analysis and machine learning ability can help make the oceans a safe place by supporting a variety of applications, including commercial maritime activity, national security operations, maritime domain awareness, environmental protection and more. Leading Wildfire Monitoring Provider OroraTech Partners With Spire To Launch First Satellite in 2021 Luxembourg, San Francisco, Munich, April 8th, 2021 – OroraTech, a leading provider of satellite–based global wildfire monitoring and Spire, a leading provider of space-based data, analytics and space services, have today announced a partnership to launch OroraTech’s first payload on a Spire 6U nanosatellite. The satellite planned for launch in December 2021 will carry OroraTech’s unique and proprietary thermal-infrared camera and data processing unit designed to detect fires and transmit the data using Spire’s satellite and ground network. The technology will help identify and monitor the areas at risk of wildfires and enable early detection of wildfire hotspots. OroraTech has developed a global wildfire intelligence service that processes data from satellites in low Earth orbit (LEO) and geostationary orbit (GEO) to detect wildfires and monitor their spread. The application offers topographical map layers, weather overlays, vegetation data and fire risk assessments, serving those in the forestry sector, emergency responders and insurance companies. Spire’s nanosatellite platform enables rapid demonstration of new technology with accelerated development cycles, and the provision of high-value data services at cost-effective rates. The Space-as-a-Service offering is an end-to-end service designed to rapidly bring new customer sensors to the vantage point of space within a few months of contract signature. From satellite platform provision, to launch, in-orbit operations, ground and cloud infrastructure, it is an easy-to-use service that allows customers such as OroraTech to focus on their applications and their end users. The launch of this payload marks the first step towards the development of OroraTech’s nanosatellite constellation. The ramp up from one satellite to a full constellation is designed to significantly increase temporal and spatial data resolution, expand geographical coverage and fill in the data gaps of existing satellite sources. “We are very happy to work with Spire as they are helping us to speed up time to market solving the crucial wildfire problem and offering high-resolution thermal infrared data for many other use-cases.” said Thomas Grübler, OroraTech Co-founder & CEO. “At Spire, we understand how to collect data from space and generate high value analytics products for our customers. We are proud to host OroraTech’s payload aboard one of our nanosatellites and to see them grow beyond this first demonstration of its cutting-edge technology. OroraTech has a unique and impactful vision and mission, building technology that will help address one of the most crucial challenges to our environment, and we are proud to support them in their journey.” said Theresa Condor, EVP & GM Spire Space Services, Spire Global.
Editorially Speaking...
Against the Odds, Korea's Hanwha Announces Yet Another LEO
With OneWeb, Starlink, Telesat, and Kuiper already locked in a multi-billion-dollar race for LEO supremacy and the Chinese, Russians, and Europeans expected to join in, yet another player has emerged in an already over-crowded market. It’s Hanwha, the multi-billion-dollar Korean defense conglomerate. Recently in the press for its acquisition of Phasor, the bankrupt developer of a phased array antenna and a $30 million investment in Kymeta, Hanwha just announced its intent to launch a two-thousand satellite LEO constellation. According to Choi Jae-woo, the senior executive responsible for Hanwha’s satellite communications business, cited in an article published in Space News, “trial services will begin in 2023 for land and sea markets and will advance to airplanes and urban air mobility in 2025-2030 and 6G by 2030.” While Hanwha has enormous financial resources, it’s late to the game and faces huge regulatory and competitive challenges. In both Ku and Ka-Bands, its predecessors, OneWeb, Starlink, Telesat, and Kuiper, all have priority ITU filings, leaving Hanwha bereft of favorable spectrum. Should its constellation generate interference, it must coordinate with its higher priority competitors – an almost impossible task given the huge number of competitive satellites and gateways where interference could be an issue. So, whether it can operate interference-free is a serious question. Beyond spectrum, there are other reasons why its intended foray into mobility markets may be too late. Today, HTS GEO global services dominate In-flight Connectivity (IFC) markets. Three fully vertically integrated players, Inmarsat, ViaSat, and Intelsat, already compete along with Global Eagle, and Panasonic Avionics. The big LEO players, Telesat, OneWeb, and most probably Kuiper, are also targeting this market. In the U.S., further complicating the picture are the soon-to-be-launched are new high-speed Air-To-Ground (ATG) services from Gogo and Smartsky. With hardware and operating costs at a fraction of satellite, they will likely compete well in U.S. regional commercial and business jet markets. In Europe, Inmarsat EAN ATG service is also well-positioned. While it can likely dominate the Korean IFC connectivity business by capturing Korean Air and Asiana and the national military aero business, it’s unlikely to generate enough revenue from these entities to justify the cost of its LEO constellation. Even if it meets its projected launch timeline, Hanwha will face a brutally competitive aero IFC market outside of Korea. It faces similar challenges in global commercial maritime markets. Speedcast and Marlink, for the most part, control entry into the Maritime VSAT market. To generate their interest, Hanwha must demonstrate pricing advantage vs. both the established GEO operators and the new LEO operators. That’s unlikely. While there may be potential in selling capacity directly to the Korean military, we don’t believe there’s enough revenue potential from the that market either to justify the constellation’s cost, which may have been seriously underestimated. According to the Space News article, Hanwha plans to invest around $1.5 billion, $440 million in direct investment, and raise an additional $1 billion through the issuance of new stock – a fraction of the investment of its LEO competitors. Even OneWeb’s initial cost estimate of $3-$5 billion was revised upward. Consequently, the actual cost of its two-thousand satellite LEO constellation and associated ground infrastructure could be double or triple its $1.5 billion estimates. With the prospect of rising cost, lack of availability of favorable Ku or Ka-band spectrum, and extreme competition, Hanwha’s proposed two-thousand satellite constellation faces an uncertain and challenging future. - Alan Gottlieb
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Primed with a major cash infusion from investors, Global Eagle Entertainment has emerged from bankruptcy with a strong balance sheet and a renewed vision. While it faces a market more competitive than ever before, GEE brings a unique set of competitive advantages to the marketplace. It's technology agnostic, and unlike its satellite operator competitors, it's not anchored to legacy satellite systems and old technologies. It holds licenses to the broadest selection of content in the industry, and it has a global customer base in commercial aero, cruise and cargo maritime. To find out more about Global Eagle and its new strategies and initiatives, we interview CEO Josh Marks and EVP Mike Pigott, who is in charge of all connectivity on air, sea and land. SMW: GEE has emerged from bankruptcy, and the new owners are private equity firms. These firms typically favor a short-term exit strategy. How will their ownership influence the operation of your business and its strategic direction? Josh Marks (JM): Our new owners also include major institutional investors, hedge funds, and other investors, so it’s not just private equity. Many of our new owners have been invested in Global Eagle since 2017 and have a long-term investment horizon. They have provided $217 million in bankruptcy exit financing, which has allowed us to increase our investment in our network and media infrastructure, satellite and aircraft technology, and our software platform. In addition, as part of the bankruptcy, we were able to cut our debt load by more than half. In mobility, the requirements for communication are changing right before our eyes. Our investors provided us with the flexibility to think on an extended, long-term time horizon. They are bullish about our markets and our ability to see and adapt to change. They have provided us with what we needed to reach our goal of delivering the most advanced, user-focused connectivity solutions possible. Thanks to their support and vision, we now have the resources to move forward and achieve our goals. SMW: Before the bankruptcy, GEE actively participated in the passenger aviation market, cruise market, yacht market, and NGO market. You recently sold off the NGO business. While you are still active in passenger aviation, which other markets are you continuing to pursue, and what is your current position in the cruise and yacht markets? On March 23rd, we announced the sale of our NGO business, U.N. activities, and our legacy MNO and terrestrial backhaul operations to Marlink. Our focus remains concentrated on global mobility, aviation, maritime, energy transport and government markets. We’re also the largest integrator of satellite bandwidth in the cruise market with the broadest coverage area and a leader in other markets, including the mega-yachts, commercial shipping, oil and gas platforms, and OSVs. In the aviation business, Southwest Airlines, Air France contract with us for their short and medium hall fleet. We also service Iceland Air, Norwegian Air Shuttle, Turkish Airlines, and Fly Dubai. We also serve several large VIP and sports team aircraft. SMW: Recently, several significant changes have occurred in the IFC market. Three of the market players, Intelsat, Inmarsat, and ViaSat, are now all vertically integrated, giving them a significant economic advantage in the provision of raw bandwidth. In addition, as passenger IFC becomes a free service, it will be a cost center for the airlines. Given the airlines’ post-pandemic weakened financial condition and the industry’s propensity to secure the lowest cost services, what is GEE’s strategy to compete in what appears to be evolving into a brutal price-competitive market? Mike Pigott (MP:) IFC has been a very competitive market for a long time. Even though ViaSat and Inmarsat have been vertically integrated for years, we’ve won deals in direct competition with them. Intelsat’s purchase of Gogo’s commercial business is the newest development in IFC. Like us, Gogo was an open architecture IFC provider that sourced bandwidth from multiple satellite operators. Now they are wholly owned by Intelsat, and it is apparent that Intelsat is looking for synergies from the acquisition. That means they will provide the vast majority of bandwidth to former Gogo customers, limiting them to connectivity via its legacy satellite network. Satellite technology is changing rapidly, especially with the emergence of high-capacity MEO and LEO constellations, seeding the advantage to integrators capable of cherry-picking the best and latest technology to serve their customers. As the last scaled, open-architecture IFC provider for single-aisle aircraft, that puts us in an enviable position. Unlike Intelsat and other vertically integrated IFC providers, we’re not married to a specific satellite network or technology. We are best positioned to accommodate the coming shift to NGSOs in both aviation and maritime. For example, our network maximizes capacity over critical airline hubs where our competitors’ networks can’t scale while also covering current and future flight routes. So, while some may claim vertically integrated models like Intelsat, ViaSat, and Inmarsat have short-term economic advantages, they are inflexible. Because we are an agnostic provider, our networks are future proof. That’s a much more significant advantage than a vertically integrated competitor’s ability to deliver the lowest cost per bit. SMW: Artificial Intelligence is now being used to manage networks. Have you deployed it? MP: We have been using AI for years in our cruise and yacht markets and were early pioneers in building intelligence into our network operations. We’ve been awarded patents for our advancements and have deployed them in real networks. Satellite operators and other service providers have licensed our intellectual property and have used it extensively in networks worldwide. On cruise ships, we have multiple antennas that connect independently to different satellites or networks. AI capabilities in our SD-WAN platform aggregate traffic, manage network selection and combine independent and multi-latency network paths into a single IP experience on board. It’s a must-have capability and even more important in the NGSO world, where managing and integrating multiple networks is a highly complex endeavor. Artificial Intelligence assures the selection of the right networks to meet specific passenger and guest requirements, thereby achieving the highest efficiency and lowest cost. SMW: One of GEE’s differentiators in the mobility markets is its vast library of content and its licensing deals with content providers. However, given the provision of free or low-cost high-speed Wi-Fi and the shift to “bring your device,” will GEE’s ability to provide content remain a significant advantage? MP: Global Eagle is the worldwide leader in content delivery to airlines. We license movie and television content, deliver media to airline seatback and wireless systems, and broadcast television to aircraft, cruise ships, and yachts. Given the strength of our media business, we are focused on the future of entertainment on personal devices. The use of seatback screens on wide-body aircraft is likely to continue, making content delivery important, and we don’t see that changing any time soon. Recently, United announced that it would upgrade its seatback screens on single-aisle aircraft. Many airlines are doing the same thing – recognizing that onboard entertainment creates the passenger engagement to build advertising and e-commerce revenue. For long-haul aircraft, seatback entertainment will remain an investment priority as we await next-generation LEO with inter-satellite links that will bring broadband IFC to polar and oceanic routes. On single-aisle aircraft flying business routes, fast connectivity will be the primary focus. Overall, we think airlines recognize that some passengers want the highest speed connectivity possible, and others want to be entertained, perhaps by content different than they usually experience onboard. What’s interesting is that airlines are upgrading seatback and wireless IFE systems while also investing in high-speed Wi-Fi. Airlines expect you’ll watch content on the seatback screen while also connecting to the Internet on your device. So, we think entertainment will continue to have a key role in the aviation passenger experience, alongside connectivity. Because each device authenticates through a user interface, we can personalize the entertainment experience for each passenger, present an advertisement, and promote Wi-Fi options. That’s very important for airlines that want to achieve a return on investment from entertainment and connectivity systems. SMW: It has always been difficult for airlines to make money in-flight Wi-Fi. Beyond passenger retention, are there other ways IFC can generate revenue, for example, advertising revenue, commission on online product sales, or operating cost reductions relating to improved efficiency? Have any of your customers benefited significantly from these cost compensation strategies? MP: Airlines are getting serious now about e-commerce and advertising opportunities as they recover from Covid-19. To accommodate their interest, we modernized our user interface. What you see today has far more capabilities for advertising, e-commerce, retail and customer service than what we had five years ago. We added back-office functions to make it easy for airlines to provide services, develop a store, sell products and services, and advertising. So, not only can we offer the airlines an enhanced connectivity experience, but we also enable new opportunities to generate revenue. Apart from enabling business opportunities, connectivity also improves operational efficiency. For example, we connect flight attendant and cockpit devices, validate credit card purchases and help our airlines understand what passengers want on board. Pilots use our platform to receive weather and routing information, linking their electronic flight bags to airline servers on the ground. While the provision of passenger Wi-Fi is our most visible service, we provide many efficiency-enhancing services behind the scenes that support airline ROI. SMW: In addition to the existing GEO IFC providers, LEOs will likely play a major role in IFC, especially for those airlines on polar routes. In addition, the entry of LEOs into the market will likely lower bandwidth costs even more. Do you expect a major shift to LEO services, and if so, how will their entry impact the commercial airline market? MP: GEO platforms are optimized for streaming environments and not designed to take data off an aircraft. It won’t be enough to just focus on streaming data from high-latency GEO platforms. While we expect GEOs to play a role in the future, we believe that NGSOs will redefine the minimum capabilities for IFC systems. LEOs will provide a significant enhancement to the passenger experience. In addition to polar route and oceanic coverage, they will bring tremendous capacity and significantly enhanced upload speeds. As passenger expectations change in the coming years, they will provide latency for gaming, social media interaction, and remote work. Aircraft operations will benefit from LEO as well. It will be practical to upload much larger volumes of data from sensors, and offload processing to cloud systems in a low-latency environment. For decades, airlines used ACARS radio to send small coded operational messages from the plane to the ground. GEO exponentially increased the amount of data they can send. LEO will exponentially increase this capacity again, opening a new chapter in uplink capability for passengers and aircraft operations. SMW: Antennas have always been a key consideration in the adoption of LEOs. Will flat-panel electronically steered antennas be necessary to enable LEO services? MP: I think you will see Variable Inclination Continuous Transverse Stub (VICTS), phased arrays, and new mechanically steered antennas continue in the market for IFC services. Mechanical antennas have proven reliability and are more efficient than VICTS and phased arrays. For years, they have handled beam switching and “break before make” on HTS spot beam satellites, the same handoff capabilities required by LEOs. The fact is LEO constellations are coming now, and while everyone would like phased-array antennas that are inexpensive, reliable, power-efficient and high performing, those don’t exist yet. Meanwhile, we need to optimize mechanically steered antennas for LEO while looking for the right phased-array systems that meet airline cost and reliability expectations. When someone invents that antenna, we’ll be the first to buy it. SMW: As you are aware, both Gogo and Smartsky will soon introduce new, high-speed ATG services. While targeted at the business jet market, regional commercial jets are also likely to use ATG, given its operating cost is significantly less than satellite. What is your competitive strategy regarding ATG? JM: Gogo and Smartsky claim to have new, high-speed ATG systems that they’ll deploy in coming years. But their offerings are delayed, and it’s not clear when they will be able to inaugurate services with significant volume. We have experience in radio systems in our maritime business, and we remain interested in ATG for aviation. We see a future for ATG, even if it is as supplemental terrestrial capacity to augment a satellite network. Of course, we’re always looking at innovating new technologies in our “stack” if they can improve service quality. So, with GEO, LEO, MEO, and ATG on the table, we will find the right mix. Satellite has a proven ability to deliver optimal coverage, performance, and cost. It’s the best solution on the market, except for those very small commercial airliners where the antenna cost is an issue. As an agnostic provider with significant value-add capabilities, including content and advanced network infrastructure, we are in the best position to offer the highest quality services, regardless of the connectivity technology.
Emerging from Bankruptcy - Global Eagle Takes Flight
"So, while some see the vertical integration of Intelsat, ViaSat, and Inmarsat as an economic advantage, unlike them, we're not tied to legacy satellite constellations . We view our flexibility as much more significant. It puts us in the best position to build the right networks and deliver the highest quality services."
Josh Marks joined Global Eagle in August 2015 and has served as our Chief Executive Officer and as a member of our Board of Directors since April 2018. He previously served as our Executive Vice President, Connectivity from April 2017 to March 2018 and as Senior Vice President, Operations Solutions from August 2015 through June 2016. From January 2011 to August 2015, Josh was Chief Executive Officer and a Director of Marks Systems, Inc. (d/b/a masFlight), an aviation big-data analytics company that he co-founded. The company was acquired by Global Eagle in August 2015. From February 2008 to December 2010, Josh was the Chief Financial Officer and a Director of eJet Aviation Holdings, a provider of VIP aircraft maintenance services, and Executive Director of the American Aviation Institute, a commercial aviation policy think-tank. From 2003 to 2008, Josh served as a Senior Executive of MAXjet Airways, a transatlantic premium airline he co-founded. Earlier in his career, Josh served as Associate Director of the George Washington University Aviation Institute and held key roles at two technology companies, Virtualis Systems (acquired by Allegiance Telecom) and VelociGen (acquired by SOA Software). Josh holds a BA and an MBA from Harvard University.
Mike Pigott is Global Eagle’s Executive Vice President of Connectivity. Mike joined the company in January 2013 as Vice President of Legal Affairs and Corporate Secretary, upon the consummation of the public merger of Row 44, Inc. and Global Eagle Acquisition Corp. In 2015, Mike took on the position of Vice President of Commercial Operations before becoming Vice President of Products and Solutions in 2017 and Senior Vice President of Product and Engineering in 2018. Prior to joining Global Eagle, Mike served as General Counsel of Row 44, Inc. from April 2009 through January 2013. Row 44 was the pioneer in modern inflight connectivity and the core of Global Eagle’s aviation connectivity operations. Earlier in his career, Mike practiced law, representing technology startups in the areas of venture capital and related financing, intellectual property, government regulation and mergers and acquisition. Mike holds a degree in Political Economy and Philosophy from Tulane University and a Juris Doctor from the University of Southern California Gould School of Law.
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L
oon is gone. With the shutdown of Google's closely followed and often publicized HAP project, some may believe that we've seen the end of High Altitude Platform (HAP) development. Maybe not. In an exclusive interview with Satellite Mobility World, well-known serial entrepreneur and visionary, Walter Anderson identifies the real reasons behind the failure of Loon - not the "lack of a market" rationale offered by Loon's CEO, Alistair Wesgrath. Walter's arguments are not to be taken lightly. He's had a series of notable entrepreneurial successes in his life, including the launch and sale of several major telecom companies. Here, he makes a compelling argument that Loon's technology and business plan were fundamentally flawed and that his company, Avealto, has a technology and business plan offering a realistic probability of commercial success. SMW: Can you give us some background on the company and its history? Walter Anderson (WA): In 1993, to take advantage of telecom deregulation in Europe, I founded Esprit Telecom in the U.K. At Esprit, we investigated High Altitude Platforms (HAPs) and concluded that a HAP could be built, but was not yet commercially viable. Batteries and solar cells were too inefficient. By 2013, advancements in solar and battery technology made HAPs technologically and economically viable. The time had arrived to design and build a commercially viable HAP optimized to provide wireless infrastructure services. So, David Chambers, a chemical engineer and MBA who worked for Inmarsat and Teledesic, and I formed Avealto. Soon, we began feasibility testing with small vehicles in the Black Rock Desert in Nevada. We flew several vehicles and built a 28-meter model and obtained an airworthiness certification by the FAA. These early tests taught us a lot about making and handling airships. Because it was easier to assemble a world-class team of airship-related contractors in Britain, we relocated to the U.K. For example, there are companies there that build autopilots, carbon fiber aerostructure, avionics, and hot air balloons. Through our collaboration efforts, we arrived at a final design that embodies a 100-meter long lighter-than-air helium-filled airship with the telecom payload on the bottom. It floats in a stationary position, and unlike a balloon can be maintained on station using GPS-directed propellers. SMW: I understand that you are in the process of raising capital. How have you funded the venture to date, and how much money are you currently planning to raise? WA: So far, we have raised $6.4 million from a group of telecom savvy investors and are now in the process of raising $10 million to fund a proof of concept demonstration and to set up our factory in the U.K. We have two organizations helping with the capital raise, one in the U.S., the other in the U.K. SMW: What are your target markets? WA: Initially, our target markets are cellular backhaul and VSAT services. We are already talking with potential customers in both market segments. SMW: Google has shut down its Project Loon HAPS project. According to Loon CEO Alastair Westgarth, the company was unable to reduce the costs to a level that would make the business sustainable. Why did Loon fail, and how is Avealto different? What makes your venture a viable business? Their failure was due to inferior technology and a strategically flawed business model. First, let’s look at their technology. Loon attempted to maintain the balloon in position by using a sophisticated algorithm to help them ride the prevailing winds, a strategy that can’t work in an unpowered vehicle. Secondly, their business model was flawed. The Loon balloon acted as a cellular repeater. With this design, they were restricted to a limited frequency bandwidth and needed to be within a few kilometers of an existing donor cell. Because they could only deploy effectively on the periphery of existing coverage, coverage could not be extended to remote areas. Consequently, their solution had limited market and revenue potential, a scenario made even worse by needing to share revenue with the mobile operator. Unlike Loon, Avelato doesn’t connect directly to cell phones. It’s a cellular backhaul-like solution. While the Loon repeater covered a small area, an Avealto HAP can cover an area 150 miles in diameter and provide capacity to over 100 ground terminals. Our solution facilitates frequency reuse and wide area coverage of remote communities. In the future, Avealto HAPs will be interconnected with laser links, minimizing the number of gateways required. With each HAP costing less than $6 million and with annual operational and support costs of $800,000, it’s a highly economical way to support multiple remote cell sites and serve thousands of users at a fraction of the cost of satellite backhaul. SMW: Component costs: how have they changed? How has the technology improved? WA: It’s not that batteries are less costly. They are much more efficient. Now, the off-the-shelf variety has sufficient power density for our application. High efficiency solar cells represent half the cost of all other components on the vehicle. Weight is our enemy, and the more efficient batteries and solar cells allow us to support our 55-kilogram telecom payload. SMW: How do you avoid interference with existing Ku and Ka-Band satellite VSAT services? Using different power levels and adjusting antenna angles, we can accommodate the two-degree GEO spacing requirement, operate in Ku or Ka-band, and avoid interference with existing satellite services. Legally, we are not a satellite. We are a terrestrial service. SMW: How will you generate revenues? Will you operate as a service provider or a hardware provider? How does a cellular operator pay for the service – a per platform monthly charge or by volume of transmitted data? Does Avealto or the operator own the HAP? WA: Avealto uses the same business model as a satellite operator. We operate our fleet and sell services on a MHz per month basis. Because our vehicles operate at a much lower altitude than a LEO, mobile operators will benefit from a very high-level modulation and lower latency, resulting in substantial economies and allowing us to provide higher quality bandwidth at substantially lower prices than satellite. SMW: Satellite internet is the obvious competitor to a HAPs solution. There are now four major LEO projects in play, including AST Science’s effort to connect cell phones directly to satellite. Should all or some of these projects prove technologically successful, wouldn’t satellite bandwidth costs drop significantly, challenging the economics of Avealto? WA: To date, satellite has always been significantly more expensive than terrestrial solutions, and I don’t think anyone in the industry believes that that will change. Avealto doesn’t have multi-billion launch costs, and we have access to low-cost terrestrial bandwidth. SMW: I understand that you are planning to fly a prototype in 2021. When and where will the trial occur and what will it demonstrate, i.e., flight only, communications capability, etc. WA: This summer, we will test our 46 ft long scale model, enabling us to calibrate the autopilot, control systems, and telecom capabilities. Our next step would be to build a full-size prototype and get it approved by the U.K. Civil Aviation Authority. Ultimately, we will be flying in the stratosphere at an altitude of 18,000 to 22,000 meters. Our civil aviation approval is critical to consummating contracts with customers. SMW: How many HAPs will you build, and when do you expect to launch the first commercial backhaul service? WA: We have identified a market for at least 200 HAP vehicles. Once the initial HAPs are complete, we anticipate launching our first full commercial service in late 2202 with Indonesia and the Caribbean as the most likely first regions for deployments.
After Loon. Can HAPs Rise Again? An Interview with Avealto CEO, Walter Anderson
"The Loon balloon acted as a cellular repeater. With this design, they were limited to a single frequency and needed to be within a few kilometers of an existing donor cell. Because they could only deploy effectively on the periphery of existing coverage, coverage could not be extended to remote areas. Consequently, their solution had limited market and revenue potential."
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Walt Anderson has over 25 years of experience in creating fast growing successful organizations. A serial entrepreneur, he has generated US$2.1 billion in shareholder value for his investors through the sequence of high-growth, telecom companies He has founded and managed companies sin US, Europe and Asia. Walt Anderson also co-founded the International Space University based in Strasbourg, France in 1988. The University is dedicated to the discovery, research and development of outer space exploration for peaceful purposes, through international. cooperartion. Anderson was designated one of the “Top 10 Influential Space Thinkers” by New Scientist magazine in 2007.
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An Interview with New CEO, Joe Spytek
Speedcast - The Revival
Recently recapitalized, Speedcast has emerged from bankruptcy. Despite the pandemic and the collapse of the cruise industry, and the lingering malaise in energy, two of its primary markets, the company emerges with a new vision and new leadership. Rebuilding Speedcast has not been easy, and even now, it's still a work in progress. During the bankruptcy, the company has consolidated its global operations, relocated its headquarters to Houston, and is in the process of modernizing its IT and financial reporting infrastructure. Despite these challenges, it's bringing new and innovative value-added services to market and stands ready to compete aggressively as the world emerges from the COVID crises. To tell the story of the new Speedcast, we met with the company's new CEO, Joe Spytek, a well-known satellite industry executive and entrepreneur. SMW: Coming out of the Bankruptcy, Speedcast now has a “clean” balance sheet and the capital it needs to move forward. How has the bankruptcy and restructuring helped strengthen the company? The hard work to transform the business is well underway. When I joined in 2020, we began with a one-hundred-day value creation plan. We looked at all facets of the business, including the fourteen disparate acquisitions. Now focused on our future that transformation has moved into a new phase to position the business for growth. Despite the turmoil in the industry, we’re viewed as a bastion of stability. We’ve endured and now emerge with new financial and commercial strengths. Leveraging these strengths, we will continue to focus on market segments where we can add significant value. Thanks to the restructuring effort, we have a solid balance sheet. Our PE investor, Centerbridge, is also very experienced in the energy and mobility space and understands the satellite operator and integrator roles very well. With their support and our strong financial position, we will continue to enhance our competitive stature. SMW: The Cruise industry is one of your largest customers and a massive purchaser of bandwidth. In some cases, they are already buying directly from satellite operators. Now that you have restructured, how will you enhance your offerings to the cruise segment? In the Cruise Industry, customers are big enough and substantial enough to demand satellite operator pricing. It’s no longer sufficient to offer inexpensive bandwidth, a global footprint, and technicians around the world. To remain competitive, we need to add significant value to our offerings. In that regard, the pandemic has offered us opportunities. For the first time in their history, the cruise industry has laid off thousands of people. Instead of re-hiring in mass, they prefer to outsource the development of new, value-added services. We can help them do that. Cruise operators also want to remain agnostic. They don’t want to be tied to a OneWeb or Starlink but instead want access to all bandwidth sources. With the coming of LEOs and MEOs, they will likely want to use a combination of frequencies and satellites. We can help them by leveraging our purchasing power and contracting with multiple satellite operators. When the ships are at full capacity again, we can channel bond the IP streams from multiple satellites to give them the bandwidth they need. Those are a few examples of how we can rise above the role of a simple commodity provider. SMW: What about the cargo segment? What opportunities are there to rise above the role of a simple commodity provider? In the cargo segment, it’s primarily about helping with digital transformation. On higher-end vessels – oil tankers and containerships, for example, we see IoT and Artificial Intelligence in use on an increasing number of vessels. Ultimately, most will adopt these new technologies. Massive amounts of sensor data from engines and other systems are already being collected, consolidated onboard, and transmitted to the Cloud. Companies like Nautilus Labs and iOCurrents are offering AI-driven voyage optimization and logistics enhancing solutions. To date, the movement toward digitalization has been confined to ships hauling high-value cargo. On bulk carriers, however, cost remains the key factor. There we focus on improving the deployment process and providing the most cost-effective solution possible. SMW: Today, cargo markets rely on GEO satellite services. Thirty thousand vessels have installed Ku or C-band VSAT systems. Cloud computing and SAS applications are becoming more popular, but they require low-latency connectivity to run efficiently. As LEOs and MEOs operate at very low latency, do you expect to see large numbers of cargo vessels convert to LEOs and MEOs, even though new antennas would be required? I think the shift to LEOs depends on the availability of the constellations and easy-to-install, solid-state antennas. Ultimately, you need the right technology “stack” onboard the vessel and in the sky. Assuming those technologies are in place, I think LEO services would be a good fit for the cargo segment. How rapidly the shift to NGSO’s occurs depends on antenna availability. SMW: In the past, management at Speedcast was CEO-centric. What have you done to move P & L responsibility down to the division level? Speedcast is an extremely global organization serving five distinct customer segments. I cannot possibly be involved in every decision across the business, plus provide oversight on our transformation and network integration initiatives. If you don’t trust your team, you are going to be in trouble. I have a fundamental operating model that I follow that’s very straightforward. Hire the best people and let them do their jobs. Any successful organization pushes decision-making authority as close to the customer as possible. In Speedcast, information flows in both directions. For example, we just held an all-hands meeting of nearly fifteen hundred people. We discussed the transformation, how we performed in Q1 and what we are doing from a strategy perspective. SMW: What have you done to integrate IT systems from so many different companies? Speedcast’s acquisition of many companies in such a short time was challenging. It’s almost impossible to think that so many integrations could have been complete in a short time. From a mobility perspective, we had three overlapping global networks – one based in New York, one based in Houston, and one based in Hong Kong. There were sixty-seven Network Management systems. In addition, we identified many financial systems that also had to be integrated. In the past, if you wanted to run a pipeline report for one of the commercial teams, you didn’t have the contract end dates for a particular service order in the same system. Now, we are consolidating to a single system. To drive the integration, we’ve formed an internal team aided by external consultants. They are putting everything into the Cloud and consolidating data into a “lake,” so we have a single repository of the data necessary to run the business. SMW: With the advent of more satellites, both GEO and LEO, bandwidth prices will continue to fall. To escape the resultant commoditization, adding high-margin value-added services is becoming a priority. For example, RigNet acquired two companies with Artificial Intelligence and cybersecurity capabilities. What new high-value-added services does Speedcast offer, and what services do you plan to offer in the near future? Although I appreciate what they have done, we haven't gone a value-added acquisition route. Instead, we’ve focused on two areas. First, we knew we had to implement a network to provide always-on communications to our customers, wherever they are in the world. Second, we looked at key customer pain points and identified where we could truly add value, especially on the back of the global pandemic. To my first point, like K4, we’re developing software-defined network capability, but for different reasons. One is to drive the overall efficiency of our network. Beam switching and the availability of multiple satellites in multiple orbits make network management much more complex. Even the weather makes a difference. Whether the customer is a high-value customer or just a commodity customer is another consideration. To automate network management, we are putting those variables into an Artificial Intelligence engine. That’s how we’re going to manage a global network with thousands of endpoints in real-time. To my second point – we saw opportunities across several key areas where we could partner with technology and industry leaders to bring unique value to our customers. One example is our partnership with Nokia. Relocating and consolidating management off-site is a major trend in both the mining and oil and gas industries. To facilitate the transition, we’re using private LTE networks to track the location of individuals and equipment at mine sites and in the oilfield, operate equipment and processes remotely, and monitor work flows. Offering those solutions provides more value-added service to our customers and further positions us as a value-added solutions provider. In another initiative designed to add value, we’ve recently upgraded our remote staff and crew connectivity and entertainment suite for maritime and developed Speedcast LAUNCH, to better support the needs of our customers. Added health and safety regulations have created extended crew rotations and further driven demand for reliable morale and crew welfare connectivity. The service brings together our personal Wi-Fi service with our entertainment and news solutions and allows users to launch their digital world from anywhere. LAUNCH has been deployed to more than 80 customer sites worldwide. It leverages our global network platform to deliver personal Internet access, entertainment – such as TV and movies – to remote staff and crew, all via a self-service portal. We’re also heavily focused on cybersecurity, an area of growing concern to all our customers, and developed our Speedcast Cybersecurity Suite, which provides various advanced features, including support navigating complicated IMO compliance requirements. SMW: In the energy market, RigNet, and ITC Global have both been acquired. What factors are driving these consolidations? I believe that Marlink’s purchase of ITC was essentially a diversification play. Marlink was mostly focused on maritime. The acquisition gives them a channel into energy markets and an enlarged enhanced base. It’s parallel to their investment in Omni Access, which opened opportunities for them into the mega-yacht market. ViaSat’s acquisition of RigNet, is likely driven by ViaSat’s interest in penetrating energy markets and the realization that barriers to entry in that segment are substantial. It’s also a clannish segment ruled by relationships and a tough regulatory environment. To address it, we have 140 technicians worldwide trained and certified to work on offshore rigs. They operate in challenging cultural environments like Mozambique, which is in the middle of an active insurgency. Building the capability to function in such unstable and remote environments is difficult. It’s much easier to buy a position in the industry than to build one from scratch. SMW: With the emergence of operator-managed services, barriers to entry into maritime markets no longer exist. Market entrants no longer need to own teleports and NOCs or commit to three-year bandwidth transponder leases. Unburdened by these expenses, these companies can offer very competitive pricing. Do you see the shift to managed services as a major competitive threat and, if so, how will you counter it? I think the days of start-ups building global networks are over. There are only going to be a few. The new entrants like K4 Mobility and Blue C Mobile will need to leverage existing platforms to obtain capacity. As generic capacity vendors, their success will depend on the value-added services they provide. In K4’s case, they provide SD-WAN-like intelligent switching between networks based on the location of a particular vessel and a smartphone interface, putting some degree of network control in the end-user’s hands. While that’s attractive from a user standpoint, ceding too much control could serious impact the businesses’ profitability. For example, while they might prefer a 60 cm antenna instead of a 1-meter antenna, it is more expensive to serve an antenna with a smaller aperture. Blue C Mobile offers another approach to adding value. They rely on flexibility and low cost, and an inexpensive antenna. When you sell commodity-based services, success depends on whether you get the customer to pay for your value-added services. So, whether you have your own network as we do or buy capacity from another, the race is on to add value.
Joe joined Speedcast in February 2020 and was appointed as Chief Executive Officer in January 2021. He has more than 25 years of experience in leadership and international business. Prior to joining Speedcast, Joe served as the Founder and CEO of ITC Global, providing end-to-end satellite communications to energy, mining and maritime companies operating in remote and harsh environments; prior to the business being sold to Panasonic’s mobility communications division. Joe has previously built several successful international telecommunications companies and holds a Bachelor’s degree in Mechanical Engineering from Vanderbilt University.
There are many mobility related satellite industry events, most of which have gone virtual or been postponed due to COVID 19. Upcoming Conferences: ****RESCHEDULED: Asia Pacific Maritime: Singapore: Live Show 16-18 March 2022: Biggest maritime show in Asia. *****SeaTrade Cruise Global, Miami: RESCHEDULED: 27-30 September 2021: The Cruise Industry is a huge user of VSAT services. making this show an important venue. It should not be missed - an important event for satellite service suppliers. ****Global Connected Aircraft: RESCHEDULED June 8-10, 2021 Now VIRTUAL: A popular conference address in commercial aircraft connectivity. ****SMM: Hamburg, Germany RESCHEDULED September 6-9 2022: A must attend for those interested in VSAT use in the cargo segments. *** RESCHEDULED AGAIN: CABSAT: LIVE: 26-28 October Dubai, UAE *****COMMUNICASIA: LIVE AND VIRTUAL 14-16 July Singapore: The most important communications event in Asia. *****SMALLSAT 2021, NOW VIRTUAL - 7-12 AUGUST: The best small satellite conference. Not to be missed! *****Satellite 2021: Washington D.C.: Gaylord National Convention Center LIVE: RESCHEDULED AGAIN: Now: September 7-10, 2021 The year's most important Trade Show/Conference Event. Great for an industry overview. Many good break away sessions on specific topics. ***IBC: September 10-13 2021, Amsterdam, the Netherlands ******WORLD SATELLITE BUSINESS WEEK: LIVE RESCHEDULED AGAIN - Now, December 13-16, The Westin Paris, France. A must attend. The most important satellite conference of the year. and best networking opportunity.
Upcoming and Recommended Satellite Mobility Events
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