maritime business update frank august. agenda maritime business performance update a mid year review...

Maritime Business UpdateFrank August

Agenda

Maritime business performance update

A mid year review

Product, service & pricing enhancements

Crew welfare market

FleetBroadband 150 progress

2010 outlook & prioritiesOperational - Social - Safety services

James Collett

2010 team updateMaritime & maritime safety services

Peter Blackhurst Vladimir Maksimov Chris Wortham

Sandro Delucia Kyle Hurst Kartik SinhaFrank August

Piers CunninghamDEPORTED

DEPORTED

Agenda


A mid year review


Crew welfare market



Maritime business overviewContinued momentum

0

50

100

150

200

250

300

350

400

Voice Data Other

Maritime revenues by service - US$ Million

More than 215,000 maritime terminals in service as at end Q1 2010

YoY revenue growth of >7% (’09 v’08)

1

101

61

1

171

57

1

201

51

26 24

62

Revenues from high speed data services . .

Fleet and FleetBroadbandHealthy levels of activations

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Fleet 77 Fleet 55 Fleet 33 FleetBroadband

Total commissioned terminals

Commissioning ratesgrowing strongly in Q1 2010- Fleet77 4.4 per day

- FB 23.0 per day1,770

1,591

5,6677,887

Fleet and FleetBroadbandThe demand for data continues to drive growth

0

50

100

150

200

250

300

350

400

Other Fleet FleetBroadband

Maritime revenues - US$ Millions

HSD traffic up 18%- 2009 vs 2008

ARPUs- Continued to grow on Fleet 77 & FB in 2009

- FB SQT 1st October 24/7/365 driving voice

IP traffic up 400%- 2009 vs 2008

186

154

4039

FleetBroadband 500 / 250 / 150Progress to date

05

101520253035

Daily commissioning rate

Months following launch

Globalcoverage

FB 150launch

Fleet 77FleetBroadband

FleetBroadband activation rates relative to launch date far exceeds that achieved by Fleet 77 in 2002

1,100 FB150 terminals passed IP traffic during April 2010

Over 8,500 terminals active and growing

Network resilient & proven

FB150 Maritime Field Evaluations

Terminal choice continues to increase

Numerous awards for FB150 and 505

Large scale retrofit ‘wins’ in H1 2010

Continued pricing and service enhancements

Maritime safety : 505 & GMDSS evolution

FleetBroadband major achievementsSuccesses to date

Agenda


A mid year review


Crew welfare market



H2 2009 - Pricing

Extended SQT to 24/7/365 days to drive voice usage – we have seen average usage per vessel nearly double

8kbps and 16kbps Streaming IP to support voice multiplexing and GSM on vessels

SCAPs extended to offer large allowances at our lowest price points for both small and large fleets

Developing the commercial proposition

H1 2010 - Pricing

FB 2 SIM allowance plans launched to allow 2 UTs to share a single allowance to support both business and crew calling from a single vessel

Major revision of commercial model for SCAPs allowing:

- Subscription charges on a per vessel basis both during and after rollout period

- Continue to offer a shared allowance across the actual number of vessels provisioned

- 3GB and 4GB plans now available

- No maximum number of vessels in the SCAP

- Maximum disconnection penalty capped at 25% of the minimumduration period

Developing the commercial proposition

Offer to 750 Inmarsat B customers to switchto FB allowance rate plans

These B customers typically spend $750 - $2,000 retail/month

Available through DPs of Inmarsat B services

Expect to see variety of commercial propositions:reduced airtime offers, subsidized FB terminals, etc

Available for remainder of 2010 or 750 packages, whichever comes first

Now more flexible with the FB subscription plan the B user selects

Inmarsat B promotion

FleetBroadband 505 emergency calling

Routing to selected Rescue Coordination Centres (RCC) globally

From all FleetBroadband terminals

Direct access to rescue professionals (not a call centre)

From smallest to largest vessel - the best chance for any mariner to receive emergency assistance

Live Since 1st October 2009

Maritime safety

FleetBroadband 505 emergency calling

Agenda


A mid year review


Crew welfare market



Crew Welfare

• E&E SQT Revenue

2005 – 2006 : 40% growth

2006 – 2007 : 42% growth

2007 – 2008 : 36% growth

2008 – 2009 : 12% growth

• Increase in E&E terminals passing SQT

Dec 2006 – Dec 2007 : 27% growth

Dec 2007 – Dec 2008 : 12% growth

Dec 2008 – Dec 2009 : 5% growth

• Dec 2009 E&E terminals passing SQT: ~ 10,500

• Considerable untapped demand exists

2010 update

E&E SQT ADU

2006 – 2007 : 11% growth

2007 – 2008 : 11% growth

2008 – 2009 : 2% growth

Crew Welfare

Evolution of SQT promotions in 2010 - 2011

New SQT promotion calendar released

FleetBroadband social agenda

- Aligned RUC to E&E

- Launched Enhanced-SQT: 24/7/365

Promoted GSM solutions via FB & E&E

- F33

- FB: Std IP & now LDR streaming

ADU growth through promotions

Exploring opportunities for FB crew data

2010 update

Agenda


A mid year review


Crew welfare market



FleetBroadband 150Setting the standard, breaking records and building new markets

FleetBroadband 150

An excellent first year

1,000 active terminal in 9 months

Faster adoption compared to FB 250/500 (875 after 9 months)

Around 1,500 SIMS currently active

>3,000 terminals shipped

Aggressive pricing packages and promotions has resultedin FB150 out-competing its rival

The world’s smallest, lightest, fastest, global maritime service

FleetBroadband 150 Maritime Field Evaluations

Merchant, leisure, fishing and government

FleetBroadband 150 MFE Status

Name: Skagern

Location: Northern Europe

Primary Role: Cargo, Bulk

Details: 80m Coastal Merchant vessel

Owned/Managed: Marin Ship Management

Communications Needs: Tasking to ensure operational efficiency

Solutions: automatic switching between terrestrial and Inmarsat communications to provide ubiquitous coverage

Merchant - Completed


Name: Excetra

Location: Fort Lauderdale, USA

Primary Role: Fishing and remote office

Details: 65’ Sport Fishing Vessel

Owned/Managed: Tom Collins

Communications Needs: Fishing, Business , Internet for guests

Solutions: Fishing finding software, Wireless Access for the whole vessel, secure internet surfing

Leisure - Completed


Name: Cap Sante Marie

Location: Madagascar

Primary Role: Trawling and Longlining

Details: 25m

Owned/Managed: Referige Peche

Communications Needs: Fish Finding, Weather, General Communications

Solutions: Fish finding and weather software

Fishing - Completed


Name: Pride of the Humber

Location: Spurn Head

Primary Role: Maritime Rescue

Details: 17m Marine Rescue Vessel

Owned/Managed: Royal National Lifeboat Institute

Communications Needs: Infrequent bursts of voice and data facilitating a fast and efficient rescue.

Solutions: Geographical search data, weather, video

Output: Case Study and Video

Government - in progress

Agenda


A mid year review


Crew welfare market



2010 Maritime outlook and priorities

Inmarsat B closure management

Provide competitive voice services

Monitor & evolve data positioning & polling proposition

Exploit growth & efficiency opportunities presented by FB150 and wider FleetBroadband family

Supporting existing / new maritime DPs & channel activity

Operational traffic

2010 Maritime Priorities

Social welfare traffic

Maintain SQT momentum on E&E

Defend & grow propositions with FB E-SQT

GSM-on-board opportunities

Promote Inmarsat crew welfareat key industry events

Promote FB social data

FleetBroadband & maritime safety services

Implementation of maritime safety services on BGAN platform

FleetBroadband platform selected for maritime

Phased implementation of services :

- Maritime safety voice services

- Non-SOLAS with distress functionality

- SOLAS with distress functionality

- Maritime safety packet switched services (Distress Alerting, MSI, etc.)

Review of the GMDSS started 2010

Into the GMDSS

Summary

FleetBroadband showing very healthy momentum

FleetBroadband 150 provides new options and new opportunities

Range of commercial options continually growing and flexing

Inmarsat delivering a market leading package of price performance, quality & reliability and safety services

Questions and Answers

maritime business update frank august. agenda maritime business performance update a mid year review...

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