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Maritime Business Update Frank August. Agenda Maritime business performance update A mid year review Product, service & pricing enhancements Crew welfare.

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Presentation on theme: "Maritime Business Update Frank August. Agenda Maritime business performance update A mid year review Product, service & pricing enhancements Crew welfare."— Presentation transcript:

1 Maritime Business Update Frank August

2 Agenda Maritime business performance update A mid year review Product, service & pricing enhancements Crew welfare market FleetBroadband 150 progress 2010 outlook & priorities Operational - Social - Safety services

3 James Collett 2010 team update Maritime & maritime safety services Peter Blackhurst Vladimir Maksimov Chris Wortham Sandro Delucia Kyle Hurst Kartik Sinha Frank August Piers Cunningham DEPORTED

4 Agenda Maritime business performance update A mid year review Product, service & pricing enhancements Crew welfare market FleetBroadband 150 progress 2010 outlook & priorities Operational - Social - Safety services

5 Maritime business overview Continued momentum 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..

6 Fleet and FleetBroadband Healthy levels of activations Total commissioned terminals Commissioning rates growing strongly in Q1 2010 - Fleet77 4.4 per day - FB 23.0 per day 1,770 1,591 5,667 7,887

7 Fleet and FleetBroadband The demand for data continues to drive growth 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 40 39

8 FleetBroadband 500 / 250 / 150 Progress to date Daily commissioning rate Months following launch Global coverage FB 150 launch Fleet 77 FleetBroadband 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

9 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 achievements Successes to date

10 Agenda Maritime business performance update A mid year review Product, service & pricing enhancements Crew welfare market FleetBroadband 150 progress 2010 outlook & priorities Operational - Social - Safety services

11 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

12 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 minimum duration period Developing the commercial proposition

13 Offer to 750 Inmarsat B customers to switch to 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

14 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

15 FleetBroadband 505 emergency calling

16 Agenda Maritime business performance update A mid year review Product, service & pricing enhancements Crew welfare market FleetBroadband 150 progress 2010 outlook & priorities Operational - Social - Safety services

17 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

18 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

19 Agenda Maritime business performance update A mid year review Product, service & pricing enhancements Crew welfare market FleetBroadband 150 progress 2010 outlook & priorities Operational - Social - Safety services

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

21 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 resulted in FB150 out-competing its rival The world’s smallest, lightest, fastest, global maritime service

22 FleetBroadband 150 Maritime Field Evaluations Merchant, leisure, fishing and government

23 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

24 FleetBroadband 150 MFE Status 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

25 FleetBroadband 150 MFE Status 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

26 FleetBroadband 150 MFE Status 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

27 FleetBroadband 150 Targets for 2010 Sectors, Sub-sectors and Regions Merchant Fisheries Leisure Government Sub-sector - Costal and inland Region - Europe (Germany, Sweden) - US (Great lakes, Inter-coastal) Sub-sector National/Coastal - Trawl and Seine International - Longline and pole Region EU (E-Log and VMS Program) Pacific and Indian Ocean countries (as part of regional initiative) Sub-sector Sport Fishing Small Sailing Region US (Southeast - Florida) Europe (Mediterranean) Sub-sector Civil (Rescue and Enforcement) Military (Spec-Ops) Region Global

28 Agenda Maritime business performance update A mid year review Product, service & pricing enhancements Crew welfare market FleetBroadband 150 progress 2010 outlook & priorities Operational - Social - Safety services

29 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

30 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 welfare at key industry events Promote FB social data

31 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

32 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

33 Questions and Answers


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