Mobility and Hybrid Networks: An ISCe 2007 Retrospective

Mobility and Hybrid Networks: An ISCe 2007 Retrospective

President, Application Technology Strategy, Inc.

July-August 2007 SatMagazine.com

It’s been a few short weeks since the conclusion of this year’s International Satellite and Communications Exchange (ISCe), an annual conference held June 5 – 7, 2007 in San Diego, CA. According to the organizer, Hannover Fairs USA, attendance was up 14% over last year; a significant increase in the buzz “dB” level was obvious. I thought I would take the opportunity to review aspects of the conference that were particularly timely and interesting. Two sessions represented the confluence of hybrid media and technology that will become more and more important to satellite industry growth in coming years. The first session dealt with hybrid networks that merge interactive satellite communications with terrestrial networks (wired and wireless) to deliver broadband mobility to users. Reflecting ISCe’s dual focus on commercial and military satellite communications, the speakers presented technology and applications that offer broadband links to both flavors of mobile users. The second hybrid-related session described how current DBS systems are adding terrestrial broadband Internet connections and employing powerful set-top boxes and web-based program guides to provide more in the way of entertainment (read, fun). By doing so, DBS operators can maintain their growth rates in the face of stiff competition from digital cable. Lastly, the awards banquet gave us a top-down perspective on how Arthur C. Clarke’s abstract idea from 1945 could become a $100 billion growth industry.

Hybrid Satellite/Terrestrial Broadband Mobility

The session titled “Hybrid Solutions for Mobility” on Tuesday, June 5, was sponsored by the World Teleport Association and the Global VSAT Forum. This interesting and dynamic session included senior representatives of leading service and equipment abstract idea from 1945 could become a $100 billion growth industry. Hybrid Satellite/Terrestrial Broadband Mobility The session titled “Hybrid Solutions for Mobility” on Tuesday, June 5, was sponsored by the World Teleport Association and the Global VSAT Forum. This interesting and dynamic session included senior representatives of leading service and equipment Blackberry and allow users to roam within urban areas and to the remotest places in the country. Expectations are that MSV and its ATC rivals, ICO and TerreStar, need big telecom industry partners to deploy the terrestrial component. The satellite piece appears to be well in hand with all three companies being under contract with Boeing (for MSV) and Space Systems/Loral (for ICO and TerreStar).

More in the way of background on ATC was provided by noted industry researcher, Christopher Baugh, President of the research firm NSR. His view is that the financial markets (and likely the consumer markets as well) will not sustain multiple ATC entrants. This poses the obvious question: which one will prevail and/or which will merge? At the Mobile Satellite Users Association (MSUA) conference last May, Romeo Reyes of Jeffries and Company stated that ATC is challenged to obtain these powerful partners and produce the kind of user device that Stuart described. These, as we say in aerospace, are probably “doable dos”, but none of the entrants have publicly demonstrated progress in either area.

Alan Kittson, Vice President of Government Services and Sales, Spacenet, discussed how his organization is working closely with the US military and other government agencies who require broadband on-the-go. To this end, he described the Network Module (NM) VSAT that can fit within a standard CISCO router. The issue that the NM VSAT resolves relates to providing secure Virtual Private Network (VPN) services with minimum latency over a GEO satellite link. As I understand it, the TCP/IP acceleration needed for good performance is accomplished prior to the creation of the secure VPN tunnel; thus, the necessary TCP headers are not hidden from the acceleration software, allowing it to function correctly. The VSAT and acceleration are therefore embedded in the router, under the control of the CISCO network operating system. Terrestrial VPNs are broadly popular among enterprises and government agencies, but applications for the NM VSAT so far have been in emergency communications where an incident commander must establish secure broadband communications at a disaster scene.

An innovator in transportable and self-acquiring Ku-band dish antennas, Leslie Klein, President and CEO of CCOM Satellite Systems Inc., told us how military units and first responders have employed his products to good advantage. The range of these auto-point and track antennas has increased markedly because government agencies and commercial users in broadcast as well as oil and gas require broadband services wherever they may need to operate. The higher power of Ku band satellites ties well with mobile dishes like those from C-COM, as users demand more in the way of bandwidth and applications no matter the location.

Location versatility is something central to the business of companies like Arrowhead Global Solutions, a provider of broadband satellite services software, allowing it to function correctly. The VSAT and acceleration are therefore embedded in the router, under the control of the CISCO network operating system. Terrestrial VPNs are broadly popular among enterprises and government agencies, but applications for the NM VSAT so far have been in emergency communications where an incident commander must establish secure broadband communications at a disaster scene. An innovator in transportable and self-acquiring Ku-band dish antennas, Leslie Klein, President and CEO of CCOM Satellite Systems Inc., told us how military units and first responders have employed his products to good advantage. The range of these auto-point and track antennas has increased markedly because government agencies and commercial users in broadcast as well as oil and gas require broadband services wherever they may need to operate. The higher power of Ku band satellites ties well with mobile dishes like those from C-COM, as users demand more in the way of bandwidth and applications no matter the location. Location versatility is something central to the business of companies like Arrowhead Global Solutions, a provider of broadband satellite services to the US military. Michael Shakarji, Senior Vice President & CTO, SATCOM Services at Arrowhead, spoke about the investments in satellite capacity and teleports that his organization has made to support mobile forces. In particular, the US Marine Corps relies on Arrowhead to deliver broadband communications on demand anywhere on the globe that their abilities are required. Michael’s examples included anti-terrorist operations in Southeast Asia and emergency relief in Africa.

To make his point about the mobility of the Inmarsat Broadband Global Area Network (BGAN), George Spohn, Vice President, Sales and Marketing - Thrane & Thrane, Americas, held up one of their very-compact Lband Internet access devices. Capable of over 400 kbps of bi-directional data flow, as well as 64 kbps ISDN service, the Explorer 500 has found a following among news reporters, field technicians and disaster workers.

Stephen Yablonski, Vice President, Globecomm Systems Inc.(GSI), addressed how a hybrid satellite – cellular system introduced mobile telephone service to remote towns and villages in the State of Alaska. What was particularly interesting in this GSI solution is the application of a flexible software defined radio (SDR) within the remote base station. Through the satellite link, the base station can be reconfigured for any of the current second generation digital cellular standards (i.e., GSM and CDMA). That same satellite link provides the connection back to a choice of to the US military. Michael Shakarji, Senior Vice President & CTO, SATCOM Services at Arrowhead, spoke about the investments in satellite capacity and teleports that his organization has made to support mobile forces. In particular, the US Marine Corps relies on Arrowhead to deliver broadband communications on demand anywhere on the globe that their abilities are required. Michael’s examples included anti-terrorist operations in Southeast Asia and emergency relief in Africa. To make his point about the mobility of the Inmarsat Broadband Global Area Network (BGAN), George Spohn, Vice President, Sales and Marketing - Thrane & Thrane, Americas, held up one of their very-compact Lband Internet access devices. Capable of over 400 kbps of bi-directional data flow, as well as 64 kbps ISDN service, the Explorer 500 has found a following among news reporters, field technicians and disaster workers. Stephen Yablonski, Vice President, Globecomm Systems Inc.(GSI), addressed how a hybrid satellite – cellular system introduced mobile telephone service to remote towns and villages in the State of Alaska. What was particularly interesting in this GSI solution is the application of a flexible software defined radio (SDR) within the remote base station. Through the satellite link, the base station can be reconfigured for any of the current second generation digital cellular standards (i.e., GSM and CDMA). That same satellite link provides the connection back to a choice of to the US military. Michael Shakarji, Senior Vice President & CTO, SATCOM Services at Arrowhead, spoke about the investments in satellite capacity and teleports that his organization has made to support mobile forces. In particular, the US Marine Corps relies on Arrowhead to deliver broadband communications on demand anywhere on the globe that their abilities are required. Michael’s examples included anti-terrorist operations in Southeast Asia and emergency relief in Africa. To make his point about the mobility of the Inmarsat Broadband Global Area Network (BGAN), George Spohn, Vice President, Sales and Marketing - Thrane & Thrane, Americas, held up one of their very-compact Lband Internet access devices. Capable of over 400 kbps of bi-directional data flow, as well as 64 kbps ISDN service, the Explorer 500 has found a following among news reporters, field technicians and disaster workers. Stephen Yablonski, Vice President, Globecomm Systems Inc.(GSI), addressed how a hybrid satellite – cellular system introduced mobile telephone service to remote towns and villages in the State of Alaska. What was particularly interesting in this GSI solution is the application of a flexible software defined radio (SDR) within the remote base station. Through the satellite link, the base station can be reconfigured for any of the current second generation digital cellular standards (i.e., GSM and CDMA). That same satellite link provides the connection back to a choice of to the US military. Michael Shakarji, Senior Vice President & CTO, SATCOM Services at Arrowhead, spoke about the investments in satellite capacity and teleports that his organization has made to support mobile forces. In particular, the US Marine Corps relies on Arrowhead to deliver broadband communications on demand anywhere on the globe that their abilities are required. Michael’s examples included anti-terrorist operations in Southeast Asia and emergency relief in Africa. To make his point about the mobility of the Inmarsat Broadband Global Area Network (BGAN), George Spohn, Vice President, Sales and Marketing - Thrane & Thrane, Americas, held up one of their very-compact Lband Internet access devices. Capable of over 400 kbps of bi-directional data flow, as well as 64 kbps ISDN service, the Explorer 500 has found a following among news reporters, field technicians and disaster workers. Stephen Yablonski, Vice President, Globecomm Systems Inc.(GSI), addressed how a hybrid satellite – cellular system introduced mobile telephone service to remote towns and villages in the State of Alaska. What was particularly interesting in this GSI solution is the application of a flexible software defined radio (SDR) within the remote base station. Through the satellite link, the base station can be reconfigured for any of the current second generation digital cellular standards (i.e., GSM and CDMA). That same satellite link provides the connection back to a choice of mobile switching centers in Alaska or Los Angeles. Mobile telephone calls do not even have to pass over the satellite link if they are local to the particular town or village.

This pre-conference panel gave us a comprehensive picture of hybrid mobile networks that address enterprise and government needs. Through the efforts of the represented companies and others, service providers and users are able to piece together an application and deliver it literally anywhere people may go. Applications that demand data rates above 1 Mbps generally require an aperture around one meter and thus fit best with Ku and Ka bands. MSS providers like Inmarsat and MSV are constrained by L and S-bands in terms of available spectrum, and yet they promise true portability and mobility without a large physical structure. There is still a financial premium is using the types of systems and networks offered by the other members of the panel; however, the operational and financial requirements for these resources are affordable in the enterprise and government sectors. It is a matter of researching and defining the requirements for the satellite network, and contracting with the appropriate service or system provider.

Satellite Television and Terrestrial Broadband

A different perspective on hybrid satellite networks was presented in the opening session on Wednesday, June 6, organized by the Carmel Group and led by its chairman, Jimmy Schaeffler. The keynote speaker, Alan Guggenheim, President and CEO of OpenTV, gave us a preview of what may become the mainstream for home entertainment. OpenTV produces software for the settop- box using a web-based interface. It is available in 88 million television homes today and supports DBS and Internet on a common platform. Alan stated that DBS is here to stay as it provides the greatest range of TV channel options, both SD and HD. At the same time, the hybrid approach presents content via a home network and the Internet to multiply those options and give an interactive mechanism. Perhaps in anticipation of this, DISH Network has for several years been supplying set-top-boxes that include Ethernet connections.

The new paradigm that Alan Guggenheim foresees is one where viewers are no longer subscribers but become customers. He predicts the end of subscription services where we pay a monthly fee for a hundred or more channels. There are two problems with the subscription model: 100 channels is no longer enough, thanks to viewing options from the Internet, DVDs and other non-broadcast media; and much of this new content is available for free from the Internet. A larger share of revenue for content will come from advertising, reverting to the old model for over-the-air-broadcasting and building on the new Internet-model made successful by Yahoo and Google. Another twist to the hybrid media future is that customers will obtain much of the same content through a variety of schemes – offering anytime, anyplace viewing and listening. The means for doing this - DVR, VoD, HD, IPTV, EPGs and mobile TV – further confuse the market for content. Younger customers are finding much enjoyment in producing content and making it available to others over the Internet. It’s certainly confusing and perhaps of concern to those who make their business out of subscriber revenues and connection charges.

The point made about the value and longevity of satellite TV gives comfort to a substantial and stillgrowing segment of the satellite industry. The key to DBS stability is the terrestrial broadband channel now widely available. We can thank cable and telephone companies for making low-cost high speed Internet available to over half of all television homes. While satellite broadband is certainly valuable to remote users, terrestrial broadband is preferred for delay-sensitive applications such as VoIP and on-line computer games. Recently, DIRECTV and DISH announced an agreement with Clearwire, a leading provider of terrestrial WiMAX networks. While WiMAX penetration is limited today, it is possible that it will become another household word and bring broadband Internet penetration numbers close to 80% in a few years. As a ubiquitous hybrid approach with more channels and HD offerings, DBS could accelerate toward an even split of market share with cable.

Industry Leadership and the Future The awards banquet is always a highlight because it showcases industry leaders and accomplishments. This year, ISCe held the dinner in the Casa del Prado at San Diego’s Balboa Park, where the old and the new blend beautifully. We were treated to the story of Echostar’s origins by David Drucker, one of its founders. David reminded us that the DISH network had a modest beginning as a startup venture called Antares (the name of a star 10,000 times more powerful than our sun), which was one of a number of DBS applicants before the FCC. It demonstrates once again that in the US, a major business today can begin with nothing more than an idea. David also played a major role in creating the recipient of the ISCe Innovation Award, WildBlue, and is on his way to a third major satellite startup. we must adapt to and enhance what is commonplace. Fortunately, our everyday tools and toys employ computers and telecommunications and satellites offer a unique means to get the information to us.

Currently, it takes relatively deep pockets to employ hybrid broadband satellite systems; but, there are several means available that render the cost within our individual budgets. Inmarsat and Thuraya demonstrated that compact devices can be very useful in limited computer network applications and for voice. When ATC finally appears in the markets, it will find application and value as well. The larger dishes used by broadcast media and the military may be costly, but they are not technically different from low priced alternatives offered for the home by WildBlue and the RV and boat by KVH Industries. You may not be able to pinpoint the specific winners in this picture, but you can be pretty confident that the aggregate will blossom like roses in the spring. The television scene at home is also one where hybrid satellite networks will play a powerful role. With home networks looking like the corporate networks of the 1990s, the means exist to make home theater into something quite spectacular. The consumers who purchased all of those HD sets last Christmas will want greater entertainment options and more interesting and engaging material to enjoy on them. Advanced set top boxes that integrate content and provide excellent interactivity are part of the next wave of consumer electronics.