The agreement to acquire Schlumberger GCS follows the Harris acquisition of CapRock Communications on July 30, 2010. CapRock Communications is a premier global provider of managed satellite communications solutions – including broadband Internet, IP voice services, secure networking and real-time video – for the energy, government and maritime industries, as well as for disaster recovery. CapRock’s robust global infrastructure includes four self-owned and operated teleports and 11 regional support centers across North America, Central and South America, Europe, West Africa and Asia Pacific.

“Combining Schlumberger GCS with CapRock Communications will create an organization with unsurpassed global satellite network capabilities, broad service offerings, and a large experienced service team to provide customers with superior remote and in-the-field support,” said Howard L. Lance, chairman, president and CEO of Harris. “Harris CapRock Communications will be able to use its capabilities and expertise to offer customers the most secure, reliable and efficient solutions in the industry.”

Under the terms of the agreement, Harris will purchase the Schlumberger GCS business for $397.5 million in cash, subject to post-closing adjustments. The goodwill arising on completion of the acquisition will be an allowable tax expense with an estimated net present value of $50 million, resulting in an effective purchase price of $347.5 million. For the calendar year ending December 31, 2010, Schlumberger GCS revenue is expected to be $170 million, and earnings before interest, taxes, depreciation and amortization (EBITDA) is expected to be $41 million. Excluding acquisition-related charges, the acquisition is expected to have minimal impact on Harris non-GAAP earnings in fiscal 2011; be slightly accretive in fiscal 2012; and a significant contributor to earnings and growth in fiscal 2013 and beyond. The transaction is subject to customary regulatory reviews and closing conditions, and it is expected to close during the third quarter of fiscal 2011. Harris will finance the acquisition using a combination of cash on hand, commercial paper, borrowings under its committed credit facilities, and long-term debt.

“Schlumberger has successfully developed its Global Connectivity Services business over the past 10 years to reach an extensive global products and services offering. This acquisition by Harris will ensure continued growth and new technology deployment in a focused communications organization,” said Tony Bowman, president of Schlumberger Information Solutions. “Schlumberger will continue to take advantage of these capabilities once the transaction is concluded through a long-term contract with Harris CapRock Communications.”

Comprised of maritime satellite service providers and technology manufacturers, the Maritime Satcom Forum aims to heighten awareness of satellite communications in the industry, strengthen advocacy efforts, expand delivery of training at the end-customer level and provide a single voice to help shipping companies understand the value of satellite services. The group’s formation follows a five-year period of intense growth in the maritime sector during which demand for satellite technology has rapidly expanded. The forum will host meetings and events to provide members with opportunities to discuss key market trends and developments.

“We’ve seen remarkable growth in the demand for satellite communications onboard vessels,” said Simon Bull, a Comsys satellite communications analyst who will Chair the newly-formed group’s first meeting. “With so many shipping operators looking to convert their vessels into fully-connected mobile offices, there is a tremendous need to educate end users on the service levels, capabilities and benefits of VSAT technology.

“The Maritime Satcom Forum is just the first in a series of groups that will target specific verticals to drive greater awareness of satellite communications and ultimately accelerate its adoption,” said David Hartshorn, the secretary general of GVF. “For us, the maritime industry was an obvious place to start because the need for satellite communications is immediate and the opportunity for providers is tremendous.”

 Growing markets

Global Xpress will address the established growing markets for VSAT services in the maritime, energy and government sectors, with further growth potential in developing markets such as the aeronautical sector.  Inmarsat will target US$500 million of annual Ka-band revenues five years after the global service is launched. Under a separate arrangement, Boeing has agreed to become a distribution partner for Inmarsat;s Ka-band and L-band services, and has committed to capacity purchases representing more than 10 per cent of Inmarsat’s target Ka-band revenues in the first five years after launch.

 Unparalleled speeds

Inmarsat estimates the total cost of the I-5s and Global Xpress will be US$1.2 billion over four and a half years, incorporating the fixed cost of the satellites, as well as the cost of additional ground network infrastructure, product development, launch services and insurance.

 Chairman and chief executive of Inmarsat Andrew Sukawaty said: “This is a new investment for growth. With the Global Xpress network, we will be the first operator to offer global broadband coverage, offering unparalleled speeds and bandwidth to customers in remote locations around the world.

 ”Global Xpress will be faster and less expensive than current Ku-band market offerings, it will be delivered to smaller and cheaper terminals and be the first offered on a seamless, global, end-to-end basis with high-quality of service. Picture 50Mpbs services to a ship or aircraft, and 10Mbps to an antenna the size of an iPad (20cm).

 ”The Inmarsat-5s will also complement our existing global L-band services, allowing us to offer unique hybrid packages using both networks, giving users unprecedented levels of resilience and reliability in remote and harsh environments.”

EMC’s new Asia-Pacific gateway provides EMC’s customers with a direct connection between the United States and Asia for private data networks and video content distribution at land and sea.

Emerging Markets Communications (EMC) has successfully purchased from Telesat Canada the Telesat Asia Pacific Gateway located in Kapolei, Hawaii. EMC’s new facility offers a strategic position from which to expand EMC’s lines of business of private data networks, video content distribution and conectivity for land and sea based customers located in the fast growing Asian Market. The facility will have direct terrestrial conectivity to the United Sates, Australia, China and Japan.

This station, combined with EMC Teleport facilities in Germany and the UK, allows EMC to offer a global continuous C band foot print to all continents and oceans, including Ku band coverage in North and South America, the Gulf of Mexico, the Bering Sea and all the Aleutian Islands.

Hawaii serves as a major landing point for both fiber and satellite connectivity from Asia to the US, including direct terrestrial connectivity to major Asian markets. The acquisition is EMC’s final strategic step in the completion of a Global C band Infrastructure that provides seamless premium value added connectivity services that are truly everywhere at land or sea. From this facility, EMC also will provide vital Telemetry, Tracking and Control services for Telesat and other major satellite operators, as indicated by EMC’s President, Abel Avellan.

With offices in the UK, Australia, Singapore and South Africa, AST provides a wide range of satellite service options to marine and land customers around the world. The company’s investment in an iDirect VSAT network is a response to growing demand from maritime companies whose communications needs have moved beyond basic connectivity requirements.

The new broadband service provides Ku-band and C-band coverage and is designed to operate on the 4000 and 6000 Sea Tel Cobham stabilized VSAT antenna range. Data rates can reach 512 Kbps on the inbound channel and 2 Mbps on the outbound channel, supporting bandwidth intensive applications such as Voice over IP, remote engine monitoring, real-time data transfer and video streaming. The AST broadband service is available today for organizations with vessels or land-based operations in Europe, Middle East, Africa and Asia Pacific regions. The service extends worldwide through AST’s partnership with Speedcast using Eutelsat’s global satellite network.

Network management and systems integration

The AST VSAT broadband offering is supported by several of the provider’s technology and network management services. These include:

Remote IT and systems management: AST’s team of network technicians can remotely handle standard maintenance and problem resolution for onboard communications equipment as well as a vessel’s IT systems.
Business continuity service: AST has developed a remote diagnostic solution that monitors onboard network activity. If service is interrupted, the system can facilitate an auto-switchover to operate in another satellite band, preserving network uptime and avoiding costly service visits.
Customized Service Level Agreements: Using iDirect’s Group Quality of Service technology, AST can tailor Service Level Agreements to meet the real-time bandwidth needs of each vessel, while enabling cost-effective sharing of satellite capacity. Committed Information Rates can be set for specific onboard applications, with the ability for each vessel to burst into a Maximum Information Rate based on a fleet’s larger bandwidth pool.
Systems integration: AST can integrate a VSAT network with marine electronics systems and other satellite communications technology through the use of iDirect’s iToolkit, which is an API feature of the iVantage Network Management System. In addition, AST collaborates with its customers to assess ongoing network requirements and provides technology development services to support future applications and increase network performance.
“VSAT is a strategic addition to our service portfolio. We conducted a comprehensive and objective requirements audit for each customer and were seeing exponential increases in data usage, which pointed to the need for a VSAT broadband offering. The decision to build our new service on the iDirect platform was based on iDirect’s track record of success in the maritime market, the platform’s many technology advantages and the ability to scale our business affordably.”

~Gregory DARLING
Managing Director, Applied Satellite Technology Ltd (AST)

“For maritime companies, communications technology has shifted from simply a means of connectivity to a business solution. With the iDirect platform, AST can help its customers transform their vessels into productive remote offices, and deliver the consulting and support services its customers need to maximise the value of onboard VSAT networks.”

~ David HARROWER
Regional Vice President and Managing Director, Europe, Russia and CIS, iDirect

picture, intelsat, cruisship

Intelsat IPTV has been selected as a distribution platform for programming to cruise ships in the AmericasWave Entertainment Network?, a wholly owned subsidiary of SeaMobile® Enterprises, contracted with Intelsat to provide Wave?s industry-leading satellite television via Intelsat?s IPTV platform to cruise ships in certain regions of the world.

Wave Entertainment Network is delivering an at-sea and remote location viewing experience rivaling land-based services at home. The Wave network is the first multi-channel, interactive television platform ever to be distributed to passenger cruise ships in all ocean regions around the world. Wave offers abundant content with superior digital picture quality via the satellite delivered Intelsat IPTV system. The system is fully operational and the first ship, Oceania Cruises Insignia, has been deployed.

Intelsat?s Galaxy 13/Horizons 1 satellite located at 127 degrees West, along with Intelsat?s IPTV Super Headend at its Mountainside Teleport facility in Maryland will be the primary transmitters of Wave?s channel lineup to the ships in the Americas. Wave?s system will utilize existing on-board tracking C-band antennas to receive the content.

?Wave Entertainment Network is the first to serve the cruise industry with multi-channel, interactive television. Such diverse entertainment and communications offerings demand seamless, global connectivity and we continue to find those elements within the Intelsat global network of satellite and teleport facilities,? said Larry Lemoine, President of Wave Entertainment Network. ?Wave Entertainment?s television line-up allows guests on cruise ships to experience all of the entertainment choices that they could expect on land. Intelsat’s IPTV high-quality distribution platform is not only a leading offering today but it also provides us an opportunity to enhance our service as our business grows.?

?With Intelsat IPTV, customers such as Wave Entertainment, receive a wholesale MPEG-4 content aggregation and delivery service that provides flexibility, ability to tailor a solution, cost-savings and high quality programming,? said Michael DeMarco, Intelsat?s Vice President, Video Services. ?Within the past few years, the maritime industry has seen a growing trend of adopting more always-on communications solutions and more diverse entertainment packages?both which can be seamlessly delivered via the Intelsat IPTV platform.?

FleetPhone is the maritime version of Inmarsat’s IsatPhone and LandPhone satellite phone services, and is now commercially available for use in the South China Sea and Indian Ocean region.

Cost-effective The new fixed phone service is ideal for use on smaller maritime vessels and boats. Easy to install and use, it is especially cost-effective in multi-user environments for ship-to-shore crew calling.

FleetPhone’s compact terminal with integrated handset is purpose-built for below-deck operation, and is connected to a lightweight omni-directional antenna mounted above deck. All components are designed for marine conditions and to meet maritime industry standards.

Leisure craft Michael Butler, Inmarsat’s president and chief operating officer, said: “In FleetPhone we have an affordable yet rugged maritime phone suitable for a range of uses spanning small vessels, leisure craft, workboats and regional merchant fleets.

“As with all devices in our satellite phone service portfolio, FleetPhone represents a compelling proposition for those who want a low-cost, low maintenance phone service backed by Inmarsat’s proven network.”