Value-added services, new satellite drive revenue growth for Eutelsat

Eutelsat reported that its revenues for the first quarter of 2012-2013 have increased by 6.5 percent. Value-added services grew by 43.7 percent, while video applications and capacity added in 2011 and 2012 increased by 9.1 percent. The European fixed satellite services (FSS) operator has earned 314.4 million euros ($406.3 million) so far.

According to Eutelsat, limited capacity in regions of highest demand caused multi-usage to drop by 5.8 percent. The Company responded by acquiring the GE-23 satellite operated by GE-Satellite. Renamed as Eutelsat 172A, the new satellite will expand Eutelsat's coverage of these high-demand areas.

According to Michel de Rosen, CEO of Eutelsat, the FSS operator is now focusing on the November 2012 launch of the Eutelsat 21B satellite, and the December launch of the Eutelsat 70B satellite. Both satellites will significantly increase capacity for markets in the Middle East, Africa, and Asia, where Data Services and Multi-usage remain in high demand.

In the meantime, Eutelsat adjusted its revenue outlook after acquiring Eutelsat 172A. The FSS operator is aiming to generate top-line growth of between 5 and 6 percent for the current fiscal year. By the time June 2015 arrives, it plans to have achieved a three-year compound annual growth of between 6 and 7 percent.

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ViaSat wins deal with US government for airborne satellite broadband services

ViaSat Inc. will be providing satellite broadband services in support of enroute military aircraft as part of its multi-million dollar contract with the US government. The Company will provide an all-IP service plan that allows NIPR, SIPR, ViaSat's Yonder commercial satellite Internet, and VoIP and VTC sessions during transcontinental and transoceanic flights.

The initial one-year agreement between ViaSat and the US government can be renewed for multiple years. It also provides options for the US government to add other aircraft to the satellite broadband service deal, as well as to request additional missions and supplemental service from ViaSat to supply.

ViaSat will also provide tiered service plans for senior leadership, VIP, and other broadband requirements. Its service plans cover a range of networking and performance levels, and most of them complemented their high-priority regional services with of higher priority.

ViaSat will use its proprietary ArcLight technology for the airborne and terrestrial satellite terminals that it will supply, install, and support on US aircraft. ArcLight terminals have already served more than 500,000 flight hours on over 300 government-operated aircraft.

The first military organization to use ViaSat's patented ArcLight technology was the U.S. Special Operations Command (USSOCOM.) Thanks to the advanced ViaSat terminals, the USSOCOM's fleet of C-130 aircraft not only gained a Ku-band communications network, but they also became the first in a line of US military aircraft that could perform advanced ISR missions using ultra-small antennas with apertures smaller than 12 inches in diameter.

There are now more than 1,750 ViaSat mobile broadband installations. The satellite communications terminals accomplish various government missions and accomplish numerous commercial applications for customers in the general aviation, maritime, and high-speed rail industries.

KCET and Link TV merging

One of California’s major community TV networks announced a merger with Link TV, an open broadcast channel operated by Link Media. According to KCET CEO Al Jerome, the development will bring together the two companies to form KCETLink. Al Jerome will become Chief Executive of the new entity while Link President, Paul S. Mason will be the Chief Strategy Officer.

KCET has long been a flagship of PBS Network in the Los Angeles Area. The merger however, will create, according to the press release “a new independent public transmedia company that acquires, produces and distributes provocative global programming targeted to a national audience across multiple media platforms”. It will also increase the reach of the network to almost 33 million homes across the country.

Jerome also expressed his high-expectations for the new media outlet to thrive in a the budding digital ave thanks to the combined resources. Since KCET left PBS, the network had been struggling with declining viewership. Link TV’s technology will help the outlet expand its reach across the nation, and create new business opportunities.

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Inmarsat showing off satellite communications solutions at UAE showcase

Inmarsat will show off its ever-expanding portfolio of business voice and data services at the upcoming Gulfcomms event in Dubai, UAE. Its preview will include future commercial satellite services that will leverage Inmarsat's next-generation Global Xpress Ka-band satellite network.

The Company will display both its wide array of voice and data services, and its equally diverse assembly of portable, fixed, and vehicular terminals, on a daily basis at Gulfcomm.

In addition, Inmarsat will present an overview of the path preceding the deployment of its Global Xpress satellite system. It will also discuss how it will merge its L-band services with the new GX-enabled Ka-band satellite services.

The Alphasat I-XL L-band satellite will be part of Inmarsat's display. The planned Inmarsat satellite will improve service outreach and throughput of the Company's L-band services across Middle East and Africa, which will in turn speed up streaming performance and refresh capacity.

Furthermore, Inmarsat will also debut an improved BGAN streaming rate service. Set for commercial distribution in 2013, the new service will deliver higher streaming rates for customers.

Inmarsat is performing changes to its L-band portfolio in preparation for its future Ka-band services, which will be delivered by its planned Global Xpress satellite network. The GX-enabled services will cover the EMEA region in 2013 and go global before 2014 is out.

Global Xpress will be the first Ka-band network that can support support mobile and fixed communication services on a global basis. Its exceptional speeds will raise the measuring bar for Virtual Private Networks, Internet Protocol, rural cellular backhaul, and other applications.

A wide variety of sectors benefit from the voice, satellite broadband, and M2M (Machine-to-Machine) solutions that the Company offers. Inmarsat assures its customers of a 99.9% network reliability thanks to its global satellite communications network, which is considered to be one of the most reliable in the world.

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Orbcomm prototype deorbits, falls to Earth

After an anomaly during the October 7 launch where one of the engines of the SpaceX Falco 9 failed to work, Orbcomm’s prototype satellite, the OG2, has been declared a total loss. The announcement came after the spacecraft failed to reach its designated International Space Station (ISS) safety gate for the second burn. As a result the OG2 found itself in a lower orbit. 

Orbcomm engineers studied plans to use the satellite’s propulsion mechanism to push the vessel into its intended orbit. However, the plans for a second burn was scrapped due to safety reasons. Many attribute the failure to the satellite being relegated to a secondary payload. Had it been the primary payload on the Space X mission, it would have reached its desired orbit. 

Orbcomm officials explained that despite the loss of the OG2, the vessel’s critical systems were tested and worked perfectly as it was designed. The telemetry and command capability of the satellite was also established, and various communications payloads of the OG2 were verified by engineers to have worked. 

Despite the setback, the company will still work with SpaceX for future launches of its second-generation satellites. Orbcomm remains confident in the American space transport company.

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ViaSat weans off US defense contracts, switches to satellite Internet services

Faced with a “fiscal cliff” that threatens to cut off its main source of revenue -its many lucrative defense contracts with the U.S. government,- ViaSat Inc. is placing its bets on its growing satellite Internet services.

If U.S. lawmakers are unable to agree on a method to make up for the budget deficit, they will implement a series of automatic tax hikes and cuts in government spending in 2013. The "fiscal cliff" will save the government some $600 billion, and a good amount of that will come out of contracts with companies like ViaSat.

It’s an uphill battle for the satellite communications provider. Defense contracts with the U.S. government currently take up 45% of Viasat’s revenue. Worse, company shares have yet to recover from the drubbing they received when ViaSat first launched its Exede Internet-by-satellite service back in January.

Eight months ago, the value of ViaSat’s stock hovered near $50. The company currently trades around $35 a share.

According to Timothy Quillin, an analyst for Stephens, Inc., investors have expressed their disappointment in the slow pace of subscriber growth in ViaSat’s satellite services segment, especially its Exede service.

Still, ViaSat remains positive that it made the right choice in rolling out Exede. According to the Company, it had added 20,000 new subscribers during the first quarter of 2012, and 40 percent of them had switched to the high-speed Exede satellite Internet service.

ViaSat further revealed that its satellite services segment received 31% more orders during the same quarter. Chief Executive Mark Dankberg said that one particular contract during the first quarter was almost equal to the normal order flow.

Mr. Dankberg co-founded ViaSat in 1986. According to him, the home Internet service will continue to contribute more and more revenue during the next few years.

He also announced that ViaSat will trim down its government sales from 45% down to 35% within five years in order to better diversify company revenue. Mr. Dankberg also took care to clarify that the Company’s government segment will not grow smaller. “It will be that it doesn't grow as fast as other parts of our business grow," he explained.

Investors are concerned that ViaSat is taking too much time in its migration. Non-government sales of satellite equipment and services currently take up a quarter of the Company’s sales. This includes all revenue from its Exede Internet-by-satellite service.

Beam Communications: Japan approves sale of Inmarsat SATCOM products

According to Beam Communications Pty Ltd., all of its Inmarsat satellite communications products have received Japanese Type Approval and can now be sold in the Japanese market.

The Japanese regulatory environment requires all equipment that emits Radio Frequency (RF) energy must undergo stringent testing. If they pass the test, they will be granted Japanese Type Approval, which is also known as “Giteki” or “Ninsho” certification.

In addition, those same equipment must be certified for electrical safety. Only those which bear a “PSE” mark will be permitted in the Japanese market.

Among the Inmarsat products offered by Beam which were now cleared for sale in Japan are the IsatDock Docking Stations used for the IsatPhone Pro Satellite Handset, and the Terra 400/800 and Oceana 400/800 terminals, which support the Inmarsat FleetPhone and LinkPhone SATCOM services.

The Inmarsat IsatPhone Pro and GSPS satellite communications services have recently debuted in Japan. Now that they have received official Japanese Type Approval, Beam can actively hawk and sell them to Japanese customers.

JSAT MOBILE Communications Inc., Japan Digital Corporation, and SatCom Global will be among the Japanese companies that will sell the certified Inmarsat satellite communications terminals on behalf of Beam. The aforementioned companies are strategic Inmarsat partners.

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