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[Via Satellite 09-05-13] Intelsat is optimistic that it can play a key role in the growing aeronautical market, a major focus for the company. James Collett, director of mobility services, Intelsat, emphasized the importance of this market for the company in an interview with Via Satellite.
“This is a market where, in terms of our network investments, we have really been focused since we believe the growth potential is significant. Recently, we have been adding Ku-band coverage in oceanic areas allowing us to not only address maritime growth opportunities, but also positions us centrally with some of the key aeronautical routes. Beyond that, in terms of next generation capability and Intelsat EpicNG, there is a big focus on the aeronautical sector. Bottom line, the aeronautical market features heavily in our plans,” said Collett.
The market is complex with a number of operators, both on the FSS and MSS side, looking for a piece of the pie. With players such as Intelsat, SES, ViaSat, Inmarsat, Iridium all looking to play in the aeronautical sector, competition will likely be intense. However, Collett believes the market has room enough for everybody.
“If things continue to play out in terms of airlines looking to acquire new connectivity capability, then there is certainly enough growth in this market for everyone to participate. Some will do better than others though. There are many different business plans – providers are coming at it from different angles,” he added.
Collett talks of certain limitations of MSS technology, which are creating an opportunity for FSS players, particularly as demands for bandwidth are on the increase. “I don’t know whether there is convergence [of MSS and FSS] or whether some key requirements have exposed the real limitations of L-band. Whilst aeronautical is certainly not dead and buried for L-band, the requirements for higher bandwidth services cannot be met at L-band. So, companies like Intelsat are now successfully re-purposing what was hitherto FSS technology for genuine mobile applications. There is a clear change afoot,” he said.
There is certain irony given that Collett came from Inmarsat where he did argue the merits of L-band technology. “L-band has been swimming against the bandwidth tide for some time now. And the power of that tide and general swell out there has dramatically increased of late. Commercial aviation is a prime example of a market where, given the imperative for people to be connected and its associated bandwidth demand, it’s pretty much unsupportable at L-band,” he added.
However, while it is a growing market, it is also a complex one. Patrick Brannelly, vice president, corporate communications, marketing & brand product, publishing, digital & events, Emirates, in a recent interview expressed his frustration in how quickly things get fixed in these systems. “We have to recognize it is a complex environment we are working in. Not only are we trying to deliver high bandwidth connections to very fast moving platforms with small antennas, we are also doing so in a highly regulated environment. Consequently, whenever you look at the take-up of aero services, it never happens when you think it is going to happen. The good news for the providers in this sector, is that it does ultimately happen, but often not as fast as people expect it to,” Brannelly said.
Collett believes it is not an easy market for satellite operators and service providers to get right. “We have to recognize it is a complex environment we are working in,” he said. “Not only are we trying to deliver high bandwidth connections to very fast moving platforms with pretty tiny antennas, we are also doing so in a highly regulated environment as well for the airlines. Looking at the take-up of these services, it never happens when you think it is going to happen. The good news for the providers in this sector is that it does ultimately happen, but it does not happen as fast as people expect it too.”
Intelsat’s plans will really ramp up once its EpicNG satellites are launched. Collett is convinced the future is bright for Ku-band in this market. “There may well be a point where Ka-band and alternative systems get some traction, but I think the timing of when they begin to get this traction is not quite as imminent as some of the providers would make it out to be. From the Airlines perspective, these are very big calls. You don’t want to go back to an airframe where you’ve already invested in a Ku- or Ka-band system. You only want to do it once and want to be sure you are making the right decision,” he said. “In Ku-band today, there is a lot of momentum. We take a lot of heart from that. There are around 4,000 aircraft, more than 20 percent of the market, committed to Ku-band systems.”
In terms of other markets, government could also be interesting for Intelsat. “The government market has enjoyed a lot of growth of late. While there have been troop withdrawals in major theaters, that has been matched by an increase in airborne activity, both manned and unmanned. It is those opportunities that we are really active in pursuing today. We see considerable growth potential,” Collett sayid.
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