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Intelsat CEO Dave McGlade, Looking Ahead With Our Customers
Intelsat supports customers with regional, super-regional and global businesses. What are the dominant trends, and how do they impact our customers? McGlade: The economy was front and center in 2009, and it affected our customers in different ways. Our customers in the telecommunications sector had a good year, overall, with the demand for broadband and wireless communications more than offsetting any weakness related to the economy. In Africa, Latin America, Europe and Russia there is pent up demand for quality services. Our customers have been very effective at introducing new offerings and expanding their market reach. The economy challenged the U.S. media market, with advertising dollars down and a broad shift in consumer viewing habits. This has resulted in programmers increasing their focus on other regions, and of course, Intelsat’s global platform is available to support that mission. The major trends impacting the media sector are the same as recent periodsformat proliferation, for instance, and video consumed on mobile devices, computer and in non-linear formats, direct-to-home, IPTV and DTT as well. In 2009, we are seeing these trends play out at a different pace, and in new regions, as compared to prior years. Format proliferation, such as adding high definitionor HDto standard definition line-ups, is continuing in North America. With the FIFA World Cup in 2010, we are already seeing plans for HD programming that will drive demand for capacity in other regions, such as Latin America, Eastern Europe and Asia. This is one of the key factors in our current fleet planning cyclemaking sure that we have the capacity in the right place to support our programmer customers. Activity around direct-to-home platforms continues to grow outside the U.S., with entrepreneurs launching new services, or established operators expanding regional services. Intelsat has a vast array of spectrum rights around the world, and we will use these assets to support DTH operatorsbuilding neighborhoods that offer DTH service providers a ‘best value’ platform that we can successfully grow together. With respect to government applications, the biggest trend is the expansion of mobility applications, such as unmanned aerial vehicles, that are truly breathtaking in the marriage of technology and commercial ingenuity. It will be interesting to see these technologies adapted to the commercial sector. Your personal background aligns to the telecommunications and media sectors. What technology trends will impact these businesses as we look to the horizon? McGlade: Convergence and the impact of Internet Protocol have been with us for a while. The big change in the equation is the emergence and broad availability of smarter devices, for example, much improved PDAs and netbooks. I believe that we are at the beginning of the next waveand developing countries are going to benefit by starting with the bestoften wirelesstechnology while the developed world, saddled with existing infrastructure, will have to continue to evolve. Given the development of LTElong term evolutionand WiMax networks, the need to be tethered will no longer exist, and we will all become device agnostic. The challenge for all of usour telecommunications customers, media customers and Intelsatis to identify early the opportunities and quickly respond with the services and capacity that the consumers demand, and be ready to support it on any device and in any format. We are already thinking ahead to the ways that satellite technology and our fiber network could be enhanced to support the new applications and formats that may be distributed by our customers. As always, it will be important for us to have the right capacity in the right regions, supporting the right applications. What are the operational improvements that Intelsat has achieved over the past year? McGlade: We got very clear feedback from our 2008 customer survey and during our regional Connections meetings. Customers pointed to communications, provisioning, and interference reduction as areas of primary concern. These are some of the primary areas where we have focused our attention in 2009, and I think we have made real progressalthough we can always do better! Our technical operations teams have focused on better communications between groups. We completed a major management realignment in our Engineering and Operations area and customers tell us that this has resulted in much better service coordination.
We are leading the industry on a multifaceted initiative that will address interference, its sources and ways to speed detection when it occurs. This is an issue that costs our customers time and money. If we can reduce the number of interference events, we can create significant value for our customers. Customers spoke, we listened, and I believe that delivering superior customer service is within our grasp. Those are the operational improvements…what else has changed in terms of our customer relations over the past year? McGlade: Again, our customers spoke, and we listened. Across the board, our customers asked us to work with them on a strategic levelthinking 10 and 15 years down the road about their business requirements. Our engagement with our customers is now aligned to their long term plans. When we understand where a customer is headed, we can do a much better job of planning capacityand this is essentialwith assets that last over 15 years. If the capacity is right, we can remain nimble and support our customers as they achieve their goals over the long term. Thanks, Dave. Anything else? McGlade: Just a sincere thank you to our friends and customers around the globe, and our promise that we are already hard at work to make 2010 a successful year for them. Happy New Year. On the Move with IGC President Kay Sears An Interview with Kay Sears, President, Intelsat General Corporation
The Intelsat 14 satellite was recently launched with the IRIS payload aboard. What is the current status of IRIS for the military, and how will the IRIS payload be utilized over time? Sears: We're really excited about the IRIS payload, and our relationship with our partners Cisco and the U.S. military. As soon as the Intelsat 14 satellite has undergone its in-orbit testing and transitions into service, we will check out the IRIS payload from a systems perspective and when we confirm that it's operating normally, we'll start what's called a "JCTD," a Joint Capabilities and Technology Demonstration.
The U.S. Government is currently considering its next steps in Afghanistan while drawing down troops from Iraq. How are these changes in the Indian Ocean Region impacting Intelsat General Corporation's business? Sears: Intelsat General provides communications solutions for the U.S. military, as well as U.S. allies, civil government agencies and select commercial entities. We definitely watch the troop levels. It's important for us to follow the decisions that are being made by the Obama Administration, but many of IGC's applications are not tied to troop levels. Currently, troops are pulling out of Iraq and deploying into Afghanistan. But these levels are not really driving our business, except for services such as 'MWR'morale, welfare and recreation. MWR services include troop call home services and Internet access points. The application that is really driving our growth and increase in bandwidth is ISRintelligence, surveillance and reconnaissance. These are the manned and unmanned platforms that gather video and other data. Customer Focus CBM Understands the Power of Intelsat’s One Platform, Global Delivery
To offer its customers the transmission platform they require to successfully execute secure file transfers, content management and on-demand connectivity applications, CBM is using the Intelsat network to meet its transmission requirements on land and at sea. With its requirement for worldwide connectivity, CBM launched its Global Broadband IP platform using capacity on eight satellites and Intelsat's GlobalConnex (GXS) Network Broadband (NBB) managed service, which leverages Intelsat’s global teleport, fiber and satellite network. "Seamless connectivity for remote locations needing to communicate with headquartersor each otheris critical when seeking to achieve operational success. Now, CBM/MT/C-Comm is able to offer an industry-leading IP network that will meet these requirements, all from a single provider," said Bill McKinnell, Vice President of CBM. "Intelsat’s robust infrastructure offered us the cost-effective, scalable and resilient transmission network we required as we looked to launch our Global Broadband IP platform."
Intelig Telecom, one of Brazil's leading local and long distance data and voice service providers, has come a long way in recent years. For nearly a decade, Intelig Telecom has been providing telecommunications services throughout most of Brazil, and thanks in large part to the Intelsat network, has deployed a modern, 100 percent digital network, which today has nationwide coverage. Intelig Telecom's communication platform offers voice and data solutions for residential, corporate and carrier customers. Intelig Telecom's use of satellite technology has gone beyond upgrading its existing infrastructureit has provided the carrier with a reliable distribution platform to deploy a robust data network and extend cellular services to more than 90 percent of the country. The company is increasing its network flexibility in order to develop new cost-effective applications and service offerings that support the rising demand for IP services. "Providers like Intelsat give us a solid foundation to support the progression and convergence of network services for many years to come, meeting the long-term needs of our customers," said Leonardo Cifali, Director of Engineering for Intelig Telecom. "For example, through the Intelsat system, we have been able to offer high capacity networks to our government customers, provide maximum network efficiency for our enterprise customers and expand our telephony services into the most remote areas of Brazil." Today, Intelig Telecom serves over 25 million users and more than 1,000 corporate clients. 2009 Customer Experience Survey
The survey concluded in late October and the results will be delivered in early December. The 2008 Customer Experience Survey was the baseline. The 2009 results will, compared with the 2008 baseline will help to identify Intelsat’s performance improvement projects for 2010. A recap of the results will be provided in the next Intelsat INSIDER. Phase I: Customer Training Underway Intelsat continues to drive efforts designed to reduce incidences of Radio Frequency Interference (RFI). The industry-leading program is called Intelsat Interference Management Initiative (I3). In this edition of Intelsat INSIDER, we focus on two areas where we feel the I3 efforts will garner immediate results.
Installer/Operator/Uplinking Training Education and knowledge can stop interference before it starts. With this in mind, Intelsat has teamed with the Global VSAT Forum (GVF) and Beaconseek/SlingPath to facilitate training for field staff responsible for accessing our satellites and operating the ground equipment. Intelsat is offering online training, free-of-charge, to two installation or operations technicians working with or for Intelsat customers who believe their staff would benefit from the thorough skills training that each course offers. In addition to two free "seats" to the online training, customers can also take advantage of discounted rates, negotiated by Intelsat, to expand the training to other members of their team. Intelsat’s goal is to provide free training to 400 customers each year for the next three years. For information on how to register for free training and discount rates, Intelsat customers should contact their Intelsat Regional Sales Director or Customer Solutions Engineer. Carrier ID Adoption On Wednesday, 18 November 2009, Intelsat hosted a summit of satellite operators, equipment vendors and customers to review a Satellite Operator Carrier ID framework that could be used on all carriers accessing satellites. Leading participants included other satellite operators, along with the Satellite User Interference Reduction Group (SUIRG), InterSatellite Operations Group (ISOG) and the Global VSAT Forum (GVF). The one-day session reviewed the Satellite Operator Carrier ID framework and developed meaningful and developmental parameters to the framework. These parameters will be used to establish the residence of the needed information within uplink modulation and demodulation equipment. The meeting concluded with the establishment of sub-teams for further review and development of the Carrier ID system in Video, Data and VSAT equipment. These teams will be developing milestones and deliverables in early 2010.Connections Update Connections Europe/Middle East 2009
The highlight for Intelsat's customers at the Connections meetings was the opportunity to talk directly with Intelsat executives at the 'Executives Unplugged' session. This year’s Connections Europe/Middle East meeting was no different. Customers provided honest feedback on our performance and suggested ways that Intelsat might better support them in the future. The tough questions and suggestions for improvement discussed during the Executives Unplugged session will be used in charting Intelsat’s 2010 Operating Plan. Intelsat executives heard that customers are interested in capacity with enhanced European coverage, as well as concerns related to pricing, especially in the Africa region in the coming years as new capacity comes online. Additionally, many customers expressed the desire to avoid channel conflicts, and others expressed a desire to explore mutually beneficial partnerships with Intelsat.
Intelsat recently concluded its 2009 Connections Regional Conference series with the Connections Africa meeting in Cape Town, South Africa, held on Monday and Tuesday, 9-10 November. The theme of this year’s Connections meetings was 'One Platform, Global Delivery.'
An example of our commitment was the recent successful bid for the ProtoStar 1 satellite, which will be renamed to Intelsat 25 when the deal closes. The Intelsat 25 will provide new C- and Ku-band capacity supporting the region. Customers provided candid feedback on Intelsat’s performance to the Intelsat management team during the 'Executives Unplugged' session. Discussions included capacity and pricing concerns, enhanced in-region support, and improved communications, specifically more time and cost-efficient methods for contacting Intelsat and an increase in updates from Intelsat, primarily relative to training opportunities. Intelsat thanks all the participants and looks forward to the 2010 Connections Meetings. The Connections Meetings are a key ingredient in developing 'Powerful Partnerships.' Product Highlight: Network Broadband An Interview with Jay Yass, Vice President, Network Services Growing Intelsat's GXS Network Broadband Services
Yass: Intelsat has strengthened its network presence and reach in Asia-Pacific through the KT teleport relationship. The KT Kumsan and Boeun teleports can access eight Intelsat satellites, from 60º East to 180º East. In addition, KT will have Network Broadband (NBB) platform capabilities. How does compression, increasingly adopted by Media customers to launch HD channels, impact the Network Services business? Yass: Compression and other advanced technologies are welcomed and endorsed by Intelsat. As we have seen in the media business, compression allowed for more channel content, thereby growing the overall media business. Similarly for Network Services applications, compression will enable efficiency, which in turn provides more value for satellite solutions that will drive continued growth. The announcement of the build of the Intelsat 22 satellite indicated that it would include "mobility beams." What are those, and how do they fit into Intelsat's mobility strategy?
Network Broadband (NBB) has been successful in Africa, the Caribbean, and North Sea, to name a few. What are the plans to bring NBB into other regions? Yass: With the deployment of NBB in the Asia-Pacific, through the KT relationship, we are now able to offer more robust broadband services to our customer throughout the region. Mobility continues to be the fastest growing product application and our investment in Asia is a demonstration of our global commitment to support this application with the NBB service. What is the value proposition of Intelsat's Network Broadband platform to service providers? Yass: Network Broadband enables a virtual network operator (VNO) customer to quickly deploy a scalable broadband solution that's also affordable. The feature set of NBB is quite rich, and accommodates evolving requirements. Many of Intelsat's Network Services customers need video services and many of the Video Services customers need network services. How does Intelsat as a company effectively manage customer accounts that have converged communications requirements? Yass: Through effective account management and communications, Intelsat is able to provide converged solutions by cross-selling products across customer sets. A good example of this is the sale of NBB to the ABC television network for Satellite News Gathering (SNG) and VoIP.The Intelsat Network Intelsat 14: A Return To Atlas
Eleven years and five months is how much time elapsed between the last Atlas launch of an Intelsat satellite and the recent launch of Intelsat 14. In launch years, that’s an eternity. During this eleven-and–a-half-year span, Intelsat launched 34 satellites on launch vehicles from Europe (Ariane), Russia (Soyuz and Proton) and from international waters (Sea Launch), but zero from the United States. One might conclude that Intelsat has an aversion to Atlas, but that would be an erroneous conclusion.
Likewise, Atlas still holds the record of most consecutive launches for Intelsat satellitesfrom January 1971 to May 1983, Atlas launched 20 consecutive Intelsat satellites from the Intelsat IV, Intelsat IV-A and Intelsat V series. That record is not likely to be broken any time in the near future. Now, dial back to 1971. Richard Nixon was in the White House, The Doors were playing 'LA Woman' and Jim Morrison was about to self destruct. And Intelsat did not have a large portfolio of launch vehicles to choose from. Russian and Chinese launch vehicles were not yet available on the commercial market then. Ariane was not going to have its first flight until late 1979 and the Sea Launch platform was still rigging oil in the North Sea. So the only launch vehicles available to Intelsat during the 1960s, 1970s and up to the mid 1980s were the domestic launch vehicles Delta and Atlas. They were put to the test and they delivered. They launched 37 of our satellites during the early days of Intelsat, building the foundation on which the company stands tall today. Eclipse Seasons
The Earth’s rotational axis is tilted 23.5 degrees from the perpendicular of its orbit. The equator is tilted at the same 23.5 degrees from the perpendicular of the Earth’s orbit as well. As the Earth travels around the Sun, the rotational axis actually stays pointed in the same celestial locationthe North Star. And because of the rotational axis tilt angle, and as the Earth travels around the Sun, the Sun appears to travel up and down the Earth creating the seasons with the longer daylight in the summer and less daylight hours in the winter. The high and low points of this sun 'travel' are the Tropic of Cancer and Tropic of Capricorn.
Satellites travel above Earth's equator at approximately 22,300 miles (36,000 kilometers). They therefore also travel at the same 23.5 degree tilt. As the Sun reaches the two equinox seasons, autumnal and spring, the satellites and their solar panels are blocked from the Sun by the Earth. During these events, the satellite must rely on its batteries to function until the solar panels are again exposed to the Sun. The time when the satellite is blocked from the Sun is called the eclipse period. The eclipse starts slowly. As the Sun travels from one of the Tropics to the equator, the satellite is blocked for a minute or two, at first. Gradually the eclipse increases until the Sun reaches fall or spring equinox and the satellite, and solar panels, are blocked for 72 minutes. As the Sun continues to travel to the other Tropic, the eclipse time becomes smaller and smaller until the solar panels are again exposed to the Sun 24x7. Eclipse season occurs twice a year. For station-kept satellites, the spring eclipse season runs from approximately 26 February until 12 or 13 April. The fall eclipse season runs from approximately 30 or 31 August until 15 October. For inclined orbit satellites, the eclipse season starts and ends a little earlier, depending on the satellite's inclination. Satellites are designed and built with an extra percentage of battery capacity than will be needed when the satellite is at full load. This is to ensure that the satellite can function and continue to provide service to our customers, even when the battery power degrades over time.
Using our more than 45 years of experience, and depending on the satellite and the condition of its batteries, we may turn off non-service and/or flight affecting hardware on the satellite while in the eclipse event to provide an added margin of reserve power. After the satellite comes back around the Earth and the solar panels are exposed to the Sun again, we turn the hardware back on, as well as start the battery charging process. This is to ensure our full-time customers' services are never compromised during an eclipse event. Summit Coverage Broadcast from Pittsburgh to the World on the Intelsat Platform World leaders gathered at the G-20 Summit, held in Pittsburgh, Pennsylvania, in late September, to discuss the global economy, and Intelsat’s Special Events team, in conjunction with Pittsburgh International Telecommunications, Inc., was on location to coordinate the event broadcast to the world.
Intelsat customers IHA from Turkey, Brazil’s Radiobras, and China’s CCTV, among others, were on the scene reporting the daily news events and providing coverage to their home viewers. The Standard Definition (SD) feeds circumvented the globe via the Intelsat network. Content from G-20 venues was sent via fiber to the Pittsburgh International Teleport, then uplinked to Intelsat’s Galaxy 28 satellite, located at 89º West. For Intelsat customers in Asia, content was turned around at Intelsat’s Napa Teleport and uplinked to Intelsat 8, located at 166º East. The signal for our broadcaster customers in Latin America was turned around at the Atlanta Teleport, then uplinked to Intelsat 9, located at 58º West. Finally, to support European broadcasters, the programming was transmitted via the Intelsat video fiber network to the Fuchsstadt Teleport and uplinked to the Intelsat 905 satellite, located at 24º West. Join Intelsat Around the World
Event Epilogue Almost 900 attendees participated in the 2009 Offshore Communications Conference and Exposition in Houston, Texas, 3-5 November, to explore the latest products, services and technologies for the oil, gas and maritime industries.
Intelsat sponsored the Thursday luncheon where Regional Vice President Mark Rasmussen highlighted Intelsat’s targeted investments in new capacity, including the new procurement of the ProtoStar 1 satellite (to be renamed Intelsat 25 upon the close of the transaction) and mobility beams that will be included on several satellites slated for launch by 2012. Patricio Baez, Intelsat’s Senior Product Manager for GXS Mobility Services, spoke on a panel session titled ‘Full Speed Ahead for Maritime Broadband: VSAT and MSS Go Head-to-Head.’ During the session, Baez highlighted affordable, global VSAT options available through Intelsat on its managed service platform that provide greater throughput and higher data speeds at competitive pricing compared to traditional mobile satellite services (MSS) offerings.Join the Discussion: Connect with Intelsat on the Intelsat BLOG, Twitter and Facebook
Intelsat will be blogging live from various upcoming conferences and satellite launches, including the recent Intelsat 14 and Intelsat 15 satellite launches and the upcoming Intelsat 16 launch. The Intelsat BLOG will be accessible from MyIntelsat, our customer extranet, and via the Intelsat public website during major industry and Intelsat events. You can also 'follow' us on Twitter and 'fan' us on Facebook for regular updates. Choose your medium and stay-in-touch with Intelsat!
The next edition of Intelsat INSIDER is scheduled for delivery on Tuesday, 2 February 2010, and will feature:
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