Really Rocket Science

Let’s face it: military juntas make businessmen nervous.

Last week’s military coup in Thailand has destabilized the business climate — if only briefly — with many business leaders holding off on planned deals as they assess the situation in Bangkok.

One big example of the law of unintended consequences: GE Capital put its deal with Bank of Ayudhya on hold until the situation clarifies itself.

But what impact has the coup had on satcom in Thailand?

For Shin Satellite Plc, the greatest problem in recent weeks is not change in power in the governement but a sudden loss of power on their Thaicom 3 satellite:

Shin Satellite Plc yesterday immediately de-orbited its glitch-ridden Thaicom 3 broadcasting satellite, following its power loss, which affects its plan to tap the Middle East market.

However, the company’s executive chairman Dumrong Kasemset denied that the de-orbit would affect the company’s projected revenue this year as it has yet to include Thaicom 3 income’s from the Middle East into the calculation.

He added during the teleconference with the presses that the company is also evaluating the deeper financial impact of the de-orbit incidence. He said ShinSat de-orbited Thaicom 3 at approximately 01.37 am, due to the power loss to such extent that it could not provide further service.

t de-orbited Thaicom 3 by moving it beyond its existing orbital slot of 50.5 Degrees East.

Thaicom 3 has had its share of problems, as has Thaicom’s owner, Shincorp. Thailand’s Ministry of Commerce recentely completed its investigations of the sale of Shin Corp to Singapore’s Temasek Holdings.

One thing’s for certain — businessmen, and those of us hoping for a Christmas trip to Phuket, will welcome a return to normalcy.

From Skyreport 

TELCO-TV — One year ago today, Verizon launched its fiber-optic FiOS TV service in Keller, Texas. Since that time, the telco’s TV product serves more than 80 communities in the Lone Star state with additional territories in California, Florida, Virginia, Maryland, Massachusetts and New York. The company said it expects to begin service in Pennsylvania, Delaware and New Jersey within the coming months – and in Fort Wayne, Ind. next year.

According to Shephard Group’s Inflight-Online, Panasonic Avionics wants to offer the same inflight broadband service being shut down by Connexion by Boeing:

JUST when the Inmarsat community was relishing the prospect of an unobstructed run at the passenger broadband market, Panasonic has announced a plan to take up where Connexion by Boeing left off. The IFE giant has no intention of rushing in, though, and will not launch unless it has commitments covering a critical mass of aircraft. 

“We have a complete system designed, developed and ready to go,” strategic marketing director David Bruner told Inflight Online at the WAEA show in Miami Beach last week. “But we’re determined to avoid one of the things that brought Connexion down – lack of an initial fleet big enough to assure acceptable pricing for the airlines.”

Panasonic has set about securing agreements covering a minimum of 500 aircraft in the next 60 days. That schedule is being driven by the need to be ready to serve ex-Connexion airlines within a tolerable time after the discontinuation of that service by the end of the year. “We can’t drag our launch decision on until, say, February,” Bruner said. “There will inevitably be a dark period between the end of Connexion and the start of our service, and we want to keep that as short as possible. We already have 150 aircraft committed and feel confident we’ll make the 500. But if we’re falling badly short in 60 days’ time we will not go.”

Early takers would enjoy significant advantages over airlines that were slower of the mark, Bruner said. “In return for a minimum five-year commitment we’ll reward our launch customers with very preferential service pricing, and they will also get priority access to bandwidth.”

Panasonic’s standard wholesale price to the airlines would represent a comparatively small premium on terrestrial broadband access tariffs, Bruner said. “So far we are seeing little indication that the airlines are planning to mark this up for passengers. It’s a service they want to offer – they don’t currently see it as a revenue-generator.”

The new offering is designed to be as attractive as possible to airlines that are already equipped for Connexion. “Our solution for them is to replace only the modem on the aircraft and leave all the rest of the hardware, including the antenna, in place,” said Bruner. “That will spare them the expense of reversing the Connexion installations and then putting in our definitive equipment suite.”

That includes a compact Ku-band antenna from Californian-based L-3 Datron Advanced Technologies. Another L-3 Communications operation, the Linkabit division, is supplying the modem. Both are already fully developed for US military applications and have been modified for civil use by removing the encryption provision. Working with an existing Ku-band satellite system, the hardware is capable of delivering 12Mbit/sec to the aircraft and 3Mbit/sec in the opposite direction, according to Bruner.

Panasonic has selected a single Ku-band satellite operator to provide transponder capacity and geographical coverage at least equivalent to Connexion’s. “With an initial fleet of 500 aircraft we would anyway pay significantly less for transponders than Connexion,” Bruner pointed out. “But our technical solution will also be more efficient than theirs, allowing us to put more traffic through each transponder and thus reduce our total requirement for satellite capacity.”

Panasonic saw itself as a system designer and integrator and had no intention of incurring the costs associated with being a service provider, Bruner said. The as yet unidentified satellite operator would be responsible for system management, operation and capacity planning, and Panasonic is in talks with a global wireless roaming company for the provision of services such as customer care, billing and retail promotion. 

“We’re intent on learning from what happened to Connexion,” said Bruner. “9/11 lost them their start-up fleet, and after that they were always struggling to catch up. Our onboard equipment is lighter and cheaper, and our approach to buying transponder capacity is altogether more economical. We think these advantages will persuade the airlines and that in a couple of months’ time we’ll be ready to go ahead.”

Should the magic 500 not be achieved, however, Panasonic will continue to look for another way into connectivity. “If Ku-band proves not to make sense after all, then we’ll go down another path,” Bruner concluded.

At least one other passenger communications provider will be watching developments carefully. AeroMobile is currently to committed to L-band operator Inmarsat as the bearer system for its soon to be introduced onboard cellphone offering. But it is also looking to offer email and Internet/VPN access in the longer term, and would be open to integration with the Panasonic Ku-band system in the same way its new GSM/GPRS cellular offering is being integrated with the company’s onboard IFE infrastructure.

“We’re completely agnostic when it comes to air-to-ground data pipes,” commented AeroMobile strategic relationships and marketing director David Coiley. “In the end we could find ourselves working with Inmarsat, Panasonic and even the AirCell terrestrial broadband system in North America.”

Although some still have doubts, Australian airline Qantas is moving forward with their test.

Here’s the source of the "turd birds" comment: CNBC’S Faber Report on Thursday, 14 September 2006. Here’s the transcript:

A controlling stake in satellite broadcast company DirecTV [Group Inc. (DTV)] is the subject of talks between News Corp. [NWS] and Liberty Media designed to allow News Corp. to buy back the $10 billion stake in the company Liberty currently controls.

The on-again, off-again talks have picked up significant momentum of late, according to people familiar with the situation. And the possibility of a tax-free exchange of News Corp.’s DirecTV stake for Liberty’s roughly $10 billion voting and non-voting stake in News Corp. is under consideration.

News Corp. is pushing the process along in hopes of resolving something prior to its Oct. 20 annual meeting at which it will hold a non-binding vote of its shareholders on whether it can extend its poison pill for two years.

News Corp. installed the pill in late 2004 after Liberty significantly increased its voting stake in the company to what is now roughly 19%. While the vote on the pill is non-binding, News Corp. would love to avoid the negative corporate governance implications if its shareholders advise against the pill, but it keeps it. Better to eliminate the threat from Liberty and its Chairman John Malone and therefore eliminate the pill.

The two sides have been talking for years, but the possibility of a deal has increased of late and both Peter Chernin, News Corp.’s president, and Greg Maffei, Liberty’s CEO, have sent positive signals about the talks to investors with whom they have been meeting at a Merrill Lynch media conference that is wrapping up today.

Liberty’s News Corp. stake, 188 million voting shares and 324 million non-voting, carries a taxable gain. Therefore, Liberty has been negotiating a swap with News Corp. Under current tax laws, a deal could be tax free if News Corp. sent Liberty an entity, 75% of which was made up of cash and 25% of an operating business. The tax-free treatment of the cash component begins declining next year to about 66% cash so Liberty may also have reason to move quickly.

Still, it is the possibility that the DirecTV stake could change hands which would have the most significance. Rupert Murdoch pursued DirecTV for years, but has lately soured somewhat on the asset, calling it a "turd bird."

He is distressed by the company’s lack of a robust broadband solution and building competition from Verizon [Communications Inc. (VZ)] and AT&T [Inc. (T)] on the video front. If he can get deals for Fox News and a potential business channel before jettisoning the stake, people familiar with his thinking tell me he would consider doing so.

An even swap of the News Corp. stake and the DirecTV stake would not be tax free and so News Corp. would need to include some sort of operating business known as an active trader that would allow it to be tax free. That is deemed as possible by people with knowledge of the talks.

Liberty officials declined comment and News Corp. officials have not returned calls. 
 

As reported in this morning’s Kommersant (Коммерсантъ):

The Lockheed Martin Corp. announced yesterday that it will withdraw from the Russian-American joint venture that markets Russian Proton rockets. The company cited the rising prices being demanded by the rockets maker, the Khrunichev State Space Research Center, and a number of unfulfilled obligations of the center, as the motivation for its decision. In the 11 years of its existence, the International Launch Services sold 37 Proton rockets for a total of $2.5 billion.

Lockheed Martin said yesterday that Space Transport Inc., a company registered in the Virgin Islands, would be the purchaser of its shares in ILS as well as Lockheed Khrunichev Energia International. A source in the Russian space industry said that Space Transport was being launched as a temporary holder of the assets Lockheed is selling. Eventually, those assets will be bought by Khrunichev, apparently with Vneshtorgbank acting as creditor. The value of the deal was estimated by the source as about $150 million. He added that the ILS would remain as a company registered in the United States and would also market Khrunichev’s new Angara rocket in the future. Lockheed Martin will sell its Atlas rockets through its Lockheed Martin Commercial Launch Services.

ILS has 11 open contracts for launches with a value of $500 million. At the center, they told Kommersant yesterday that they expect orders to increase. Analysts also predict that the industry will have a healthy growth rate in the next several years. Vitaly Davydov, deputy head of Roscosmos, the Russian space agency, predicted recently that Russian rockets account for 40 percent of the world market. Roscosmos press secretary Igor Panarin commented to Kommersant yesterday that “Lockheed Martin’s decision will not affect Russian interests in launch services in the least. On the contrary, it will strengthen bilateral relations between Russia and the U.S. in the space field.” Khrunichev press secretary Alexander Bobrenev concurred, saying that “The Russian side will continue marketing the Proton and Angara carrier rockets. We are capable of meeting our obligations to our clients.”

A Lockheed Martin spokesman told Kommersant that that ending its partnership with Khrunichev was a purely business decision and does not affect its joint ventures with other Russian enterprises, such as Energomash. “Our collaboration with them [Khrunichev] was very fruitful and we still have projects that we will possibly work on jointly in the future,” the spokesman said.

Kommersant has learned that Lockheed informed Khrunichev of its intentions to pull out of the joint business in May. The official explanation for the move is a change in Lockheed’s marketing strategy. “After analyzing conditions on the world market, we decided to concentrate on launches of satellites with masses of 4.5-6.5 tons,” ILS president Dr. Mark Albrecht said in June. In essence, that means that Lockheed has decided to leave the commercial market in favor of more profitable state orders. Boeing made the same decision in 2003. Of the 11 Proton launches in the last three years only five of them were heavier then 4.5 tons.

Another source at Lockheed said that the company disagreed with Khrunichev’s decision to raise the price of the rockets by 15 percent, to $45-50 million each, to pay for the services of an intermediary to conclude contracts with ILS. ILS also received 15 percent of every contract. Another source of contention was $68 million that Lockheed paid in 1999 under an agreement to market the new Angara rocket. The first launch of that rocket was to take place in 2003, but now plans call for the first launch in 2010. “Lockheed Martin will consider its investment in the purchase of the marketing rights to the Angara and include them in the cost of its package in ILS and LKEI,” a source said.

Hurricane Katrina was the costliest storm in American history, which occurred during what became one of the nation’s busiest hurricane seasons. The category 5 hurricane hit the Gulf of Mexico’s northern coastlilne on 29 August 2005, including the city of Biloxi, Miss.

Sustained winds of approximately 150 miles per hour, accompanied by its rain and storm surge, caused catastrophic flooding in Biloxi – dozens of feet above and further inland than normal – destroying important terrestrial infrastructures vital for adequate shelter, economic sustainability and civic functions. Homes, office buildings, telephone poles, hospitals, television and cell phone antennas, government headquarters and places of worship, were completely flattened.

Since most of the area’s terrestrial-based forms of communication had been destroyed and were near useless, a satellite-based WiMAX (Worldwide Interoperability for Microwave Access) WAN (Wide Area Network) communication network for the city of Biloxi was a viable option. WiMAX is a wireless communications technology that provides high-throughput broadband connections for considerably longer distances than that offered via a WiFi (Wireless Fidelity) LAN (Local Area Network) network.

Motivated to immediately help in relief efforts after the hurricane dissipated, Craig McCaw, who through his investment company Eagle River, has an ownership in Clearwire, offered the Clearwire WiMAX service to government leaders in Mississippi in order to provide the needed communications after the hurricane. Clearwire is a high-speed, wireless broadband Internet service provider. SES AMERICOM was then contacted to join in his quest to help reestablish Biloxi’s communication network.

SES AMERICOM employees were dispatched to Biloxi, and immediately installed and connected two-way satellite ground stations called VSATs (Very Small Aperture Terminals) to Clearwire’s WiMAX towers. Relief agencies, hospitals, fire, police as well as businesses and residences within the established WiMAX network were able to get reliable, 24×7 voice and data connectivity to the outside world via this hybrid satellite/WiMAX network.

It’s experiences like these that prompted the Satellite Industry Association to publish a "First Reponder’s Guide to Satellite Communications" earlier this summer.

A year later, businesses in the area are still squabbling over what resources get restored first.

According to the AP, Russian flight engineer Mikhail Tyurin will drive a golf ball back to mother earth from atop the International Space Station on Thanksgiving Day 2006 in a publicity stunt to promote Canadian golf club manufacturer, Element 21 Golf Co.

Element 21 asked the Cosmonaut to pull the stunt to publisize its new line of golf clubs and to commemorate the 35th anniversary of the time astronaut Alan Shepard hit golf balls on the moon during the Apollo 14 mission. The stunt, which cost the company an undisclosed amount of money, was originally planned for a June spacewalk, but was pushed back so other tasks could be accomplished.

Oh, and don’t worry about being knocked out by dimpled piece of plastic. The golf ball will most likely return to the earth’s atmosphere in three days, burning up upon reentry.

Australian Broadcasting Corporation reports that RocketPlane Kistler and SpaceX are trying to gain the right to test rockets at the Australian Defense Department site in Woomera, South Australia. Attracted by the size (about as large as England) and remoteness of the location, the Kistler and SpaceX hope to use the site to do test launches of the rockets NASA International Space Station.

Military history buffs will remember the Woomera Prohibited Area (WPA) as the largest land-based testing range in the world and the site of much of Australia and the U.K.’s nuclear (and otherwise) missile testing throughout the cold war. The WPA, which is still in use today for weapons testing, was also the location of many of European Launcher Development Organization (ELDO)‘s EUROPA rocket launches (one waiting to be launched is seen above) and NASA’s Island Lagoon Deep Space Tracking Station throughout the 1960s.

In addition to being a site with a great history, Woomera seems to have some good site-seeing opportunities and be just as beautiful as much of the rest of the Outback.

Sea Launch launched the Koreasat 5 satellite last night from a converted oil platform in the Pacific Ocean, 1500 miles south of Hawaii. Named after the Korean national flower, Mugunghwa, the satellite will be replacing Koreasat 2. Incidently, the number 4 was skipped when naming this satelite (4 is a very unlucky number in Korea; its pronunciation is similar to the pronunciation of the Chinese character for Death). The satellite itself has a very interesting payload.

Steve Pearlstein had an interesting column in Friday’s Washington Post regarding the changing fortunes of Intelsat and its famous headquarters in Washington, D.C.:

Time was when Intelsat was something of a metaphor for business in Washington, a government-backed enterprise that put the city at the center of the global satellite industry. Its futuristic office building on Connecticut Avenue was meant to symbolize Intelsat’s technological prowess and financial reliability.

Today, Intelsat is still something of a metaphor, but for a very different business environment. Its official headquarters is in Bermuda, its building is for sale, some operations are moving to Atlanta, and its debt is rated as junk. Intelsat’s prospects are now tied up as much with financial engineering as with the other kind.

All this is the result of transactions by private equity firms that took Intelsat from a government enterprise to a private company and merged it with Comsat, PanAmSat and parts of Loral, among others. But in the process, they have also loaded Intelsat with more than $11 billion in debt and drained much of the company’s equity value.

More information on Intelsat’s financial woes can be found here and here. Yet regardless of Intelsat’s financial outlook, the future in Washington won’t quite be the same if the Intelsat building — long a Connecticut Avenue landmark and a must-see for futurists touring the nation’s capital– gets renamed.

Unless, of course, you purchase it in our honor and rename it, say, the Sebadoh Building. (This might be the company with the listing.)

More photos: Check out this arial photo as well as this "blast from the past" photo of John Andrews with a model of the proposed building back in 1980.