IBP3167_10 MINI-VSAT BROADBAND AND TRACPHONE V7: THE NEW STANDARD FOR MARITIME SATELLITE COMMUNICATIONS Brent C. Bruun 1, Christopher R.

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1 IBP3167_10 MINI-VSAT BROADBAND AND TRACPHONE V7: THE NEW STANDARD FOR MARITIME SATELLITE COMMUNICATIONS Brent C. Bruun 1, Christopher R. Watson 2 Copyright 2010, Brazilian Petroleum, Gas and Biofuels Institute - IBP This Technical Paper was prepared for presentation at the Rio Oi & Gas Expo and Conference 2010, held between September 13-16, 2010, in Rio de Janeiro. This Technical Paper was selected for presentation by the Technical Committee of the event according to the information contained in the abstract submitted by the author(s). The contents of the Technical Paper, as presented, were not reviewed by IBP. The organizers are not supposed to translate or correct the submitted papers. The material as it is presented, does not necessarily represent Brazilian Petroleum, Gas and Biofuels Institute opinion, nor that of its Members or Representatives. Authors consent to the publication of this Technical Paper in the Rio Oil & Gas Expo and Conference 2010 Proceedings. Abstract With massive growth in the Campos, Santo and Espirito Santo Basins, the Brazilian oil and gas and maritime industries are in need of reliable satellite communications as far offshore as 200 miles and beyond. This presentation will examine the benefits of two-way satellite communications, including a fully integrated hardware, network, and service solution, from KVH Industries and its TracPhone V7 maritime antenna and mini-vsat Broadband sm service. With true broadband speeds, multiple telephone lines, significant cost savings, and complete integration with the world's first 24-inch (60 cm) diameter marine VSAT antenna, the spread spectrum mini-vsat Broadband network is rapidly becoming the day-to-day communication solution for offshore oil and gas rigs, supply vessels and tankers worldwide. With the launch of mini-vsat Broadband s coverage for Brazil in early summer 2010, the network circles the globe and covers 90% of the world s shipping routes along with the vast majority of offshore oil and gas fields. The mini-vsat Broadband runs on the only global multi-megabit Ku-band network developed for maritime and aeronautical applications, helping maritime oil and gas operations to improve vessel operations with real-time access to broadband chart downloads; weather data; route planning; and engine, fuel, and systems monitoring; reduce operational costs through more effective route planning and fuel monitoring, offshore logistics management, and crew training via broadband Internet resources; strengthen ship management with real-time broadband connections to corporate networks, remote IT management from shore, telemedicine, and centralized operational management from shore; cut costs of regulatory compliance while filing regulatory forms before reaching the port of destination, and sending immediate announcements of an exploration discovery; and improve crew morale and retention, by equipping the crew with affordable connections to home and online training. 1. Introduction After almost three years of uninterrupted operation, the mini-vsat Broadband network is the world s fastest growing maritime broadband service thanks to its combination of spread spectrum technology, affordable broadband capacity, commercial-grade compact antenna technology, and our end-to-end service and support. Hundreds of vessels are online simultaneously around the globe, including ships of the U.S. Navy, the U.S. Coast Guard, Nordic Tankers (formerly Clipper Marine Services A/S), and Mowinckel Ship Management, to name a few. The result of a collaboration between KVH and ViaSat, two leaders in the satellite communications industry, the KVH TracPhone V7 with mini-vsat Broadband service is a powerful, proven, and affordable communications solution for offshore oil and gas operations as well as commercial maritime fleets. This end-to-end solution works seamlessly by combining innovative and revolutionary technology, including rugged, fully stabilized antenna technology from KVH Industries, powerful Ku-band satellites, industry-proven value-added services, and ViaSat s ArcLight spread spectrum mobile broadband technology, which was previously only available for military applications. We provide unsurpassed end-to-end support for the mini-vsat Broadband service onboard commercial vessels because we have total visibility of the network from the technology in the earth station to the detailed design of the onboard equipment. The hardware and service were designed from the ground up to work seamlessly together, and to be easily supported to help assure unsurpassed reliability and the ongoing satisfaction of clients and crew. 1 Vice President, Business Development and Satellite Sales KVH Industries, Inc. 2 Director, Marketing KVH Industries, Inc.

2 Figure 1: The Standard Integrated TracPhone V7 & mini-vsat Broadband Solution 2. The TracPhone V7 Satellite Communication Terminal The hardware for the TracPhone V7 features a small (24 inch (60 cm) diameter, 60 lbs (27 kg)), commercialgrade antenna; fully integrated spread spectrum modem/router; fully integrated antenna control unit, and GPRS service and support module for remote diagnostics. The high-efficiency TracPhone V7 antenna, combined with the advantages of spread spectrum technology, results in extended coverage and super performance in rain and other adverse weather conditions. Thanks to its compact size, the TracPhone V7 system can be installed quickly and easily in as little as one day, usually without modifying the vessel or using a crane, saving tens of thousands of dollars in installation costs. KVH TracPhone systems are designed and built to military quality standards to ensure that they provide rock-solid performance for years in the often-brutal marine environment. As an added installation benefit, the TracPhone V7 is an intelligent standalone system that finds, acquires, and locks onto the satellite without requiring any integration with or input from the ship s gyrocompass. All of the system components are shipped fully configured for the mini-vsat Broadband network. The end result? Installation of a fully functional TracPhone V7 and activation of the mini-vsat Broadband service can be carried out in less than a day either at the dock or by the crew while the vessel is underway. It is no more difficult to install than an Inmarsat FleetBroadband 500 and significantly easier than any other maritime VSAT solution. 3. Service Overview and Coverage The mini-vsat Broadband service, along with the KVH TracPhone V7 antenna, comprise the first FCCapproved, ITU-compliant 24-inch VSAT antenna, service, and support package available for maritime communications. The mini-vsat Broadband service itself is a robust, high-capacity, global broadband network. A managed airtime network solution, it equips commercial vessels with multiple Voice over IP (VoIP) telephone lines with optimized service, and prioritization of applications, as well as the highest data rates available with speeds reaching 2 Mbps shoreto-ship and 512 Kbps ship-to-shore. The mini-vsat Broadband network is unique in that it uses spread spectrum technology. Similar to 3G cellular Code Division Multiple Access (CDMA) technology, the system spreads the energy of the signal across a wide spectrum and codes each bit for signal reassembly at the other end of the transmission. The ArcLight technology employed in the mini-vsat Broadband network is identical to that used by the U.S. military for their communications, and is designed specifically to work in demanding mobile applications. It also provides unsurpassed performance, even in challenging environments, including rain and other adverse weather conditions. In contrast to other maritime VSAT solutions, the mini-vsat Broadband system was designed from the outset to be a robust global network. A traditional maritime VSAT provider could launch and support service using a very small amount of capacity to provide coverage in a given region, but this capacity will quickly be exhausted and 2

3 customers will suffer. In comparison, we typically use full transponders to provide coverage in the majority of our regions. What s more, much of the mini-vsat Broadband global footprint is covered by more than one satellite and hub, and the system is designed to automatically switch to the backup coverage in the event that the primary satellite is blocked by the vessel superstructure or otherwise unavailable. In addition, the use of identical frequency bands, hubs, and transmission protocols makes switchover between satellite regions totally automatic. The result is an exceptionally reliable network with a proven end-to-end availability rate better than 99.5%. Launched in September 2007, mini-vsat Broadband is now available worldwide, including major shipping lanes and in all major offshore oil and gas regions. We lease 11 transponders on powerful Ku-band communications satellites, linked with 9 secure terrestrial gateways around the globe, each of which has been recently upgraded with the latest advancements in ViaSat ArcLight network technology to optimize performance and seamless switching between satellites. Figure 2: The mini-vsat Broadband Network Infrastructure The network s robust architecture is a key benefit of the mini-vsat Broadband service compared to competing solutions. KVH s Ku-band transmissions offer average data rates an order of magnitude higher than Inmarsat s or Iridium s L-band services. The power of the mini-vsat Broadband service can be concentrated to support a large number of users in a limited geographic area, like an offshore oil field. Although Inmarsat partners often imply that they have the ability to reconfigure their satellite coverage to provide added capacity in targeted geographic areas, the reality is that this ability is very limited for both technical and Inmarsat s business objectives. A common complaint of both FleetBroadband and Iridium service has been that a small number of users within the footprint of a common spotbeam overload the shared service resulting in dropped calls, busy signals, or slow and poor quality data connections. In addition, Inmarsat suffers from high latency (1-2 seconds), which creates significant performance issues for IP-based applications, compared to the extremely fast mini-vsat Broadband service (approximately seconds). 3.1 The Use of ArcLight Spread Spectrum Technology and its Benefits to Oil & Gas Fleet Operators The mini-vsat Broadband network is based on ViaSat s ArcLight Code Reuse Multiple Access (CRMA) spread spectrum technology. The ArcLight technology is more than twice as efficient as older 2nd generation Time Division Multiple Access (TDMA) technology used by all other maritime VSAT systems. Its spread spectrum signals can also be received by much smaller antennas, the use of which dramatically reduces capital investment and installation costs. But even with smaller antennas, it provides high quality connections that are designed to withstand atmospheric interference, rain fade, and multipath errors. A typical 512 Kbps return link carrier occupies approximately 1.2 MHz of bandwidth. Only one terminal in a traditional TDMA system can use this frequency at any time. An illustration of this bandwidth usage is provided on the following page in Figure 3. 3

4 Figure 3: Typical TDMA Spectrum Usage By contrast, the CRMA technology employed by the mini-vsat Broadband network spreads the traditional carrier to 20 times the unspread bandwidth. In addition, it reuses bandwidth, transmitting 15 carriers with BW = 30.7 MHz simultaneously in a single transponder. The lower power spectral density reduces interference problems that may occur with small antennas with wide beam widths while simultaneously supporting smaller antennas, reduced pointing requirements, and lower bandwidth costs. Figure 4: Bandwidth Use Typically Observed in mini-vsat Broadband s CRMA Spread Spectrum Technology The CRMA spread spectrum technology exclusively available via mini-vsat Broadband offers commercial maritime operators numerous benefits compared to older TDMA networks, including: Table 1: Benefits of mini-vsat Broadband CRMA to Oil & Gas Fleet Operators More Efficient Transmissions No Contention Worries mini-vsat Broadband CRMA Network Burst transmissions enable multiple users to transmit simultaneously and spread signal across entire available bandwidth at highest speed TDMA-style contention eliminated no delays needed between transmissions and channels Traditional TDMA Networks Signals transmitted only at allotted times with inefficient time buffers between transmissions Time buffers between time slots requires capacity to be further divided into inefficient channels 4

5 Small, Powerful Antennas Robust Network Capacity Rio Oil & Gas Expo and Conference 2010 Table 1: Benefits of mini-vsat Broadband CRMA to Oil & Gas Fleet Operators (continued) End-to-End Solution Military spread spectrum technology designed for exceptional mobile reception/transmission using small antennas System designed for global maritime applications using full transponders in most regions Compact 24-inch antenna and fully integrated modem/antenna control unit designed to work with global mini-vsat Broadband service Land-based technology adapted for maritime use with cumbersome, expensive equipment Small, undercapitalized service providers often deploy limited capacity to claim global coverage Integrators combine 1m antennas, modems, other equipment from multiple manufacturers, and services from different providers In addition, the mini-vsat Broadband network includes a network design using a link budget specifying 99.5% minimum availability for an entire coverage area, and adaptive coding and spread modulation (ACSM) along with advanced modulation DVB-S2 will enable the carrier/data rate to adapt to the terminal conditions and provide unsurpassed forward and return link availability The mini-vsat Broadband service is also the first maritime service of its kind with the ability to transmit and receive using the same frequency rather than to send and receive on separate frequencies. The added efficiency resulting by this patented ViaSat technology reduces bandwidth demand by as much as 50%, offering greater bandwidth, the ability to operate on just one satellite frequency and transponder, and very affordable service. As a result, broadband communications become affordable enough to offer as a practical benefit for the crew as well as supporting critical operational needs. 3.2 Offering Global Coverage The mini-vsat Broadband network equips commercial vessels with seamless access to a multi-megabit worldwide Ku-band network. It is also worth noting that the mini-vsat Broadband Indian Ocean coverage is unique, extending well south of the Equator while other VSAT services in the region simply hug the Indian coastline. The coverage offered to coastal and offshore oil and gas operations is illustrated in Figure 5. Figure 5: The mini-vsat Broadband Network s Support for the Offshore Oil & Gas Industry The mini-vsat Broadband network is built using a common architecture in all hubs and satellites. In addition, it uses the same frequency bands and transmission protocols throughout its coverage area. This makes global integration with commercial fleet operator s IT infrastructure simple while also ensuring seamless automatic switching between satellites as a vessel transits between regions. 5

6 4. Benefits of Expanded Broadband Capacity Rio Oil & Gas Expo and Conference 2010 Using a true broadband solution like mini-vsat Broadband results in enhanced efficiency and reduced operating costs in areas like: Voyage planning where real-time delivery of electronic chart updates and access to the latest weather, security alerts, and other route planning information will result in lower operating and fuel costs and safer voyages Remote administrative and personnel management where centralized logistics, HR, and operations teams might help reduce redundancy and the duties of individuals onboard vessels Remote support for IT and onboard equipment where highly skilled shore-based specialists and engineers can work with technical people onboard vessels to solve problems, update software, and fix broken equipment Enhanced safety provided by warning offshore employees of potential security hazards, remotely monitoring onboard video sources, providing employees access to training materials for elearning programs, and providing telemedicine services for injured or ill employees onboard vessels Crew welfare affordable access to cell phones, text messaging, , voice calling, and Internet access for recreation and connecting with friends and family through standard social networking, helping to reduce employee turnover, aiding recruiting of new crew, and improving morale 5. A Comprehensive Communications Solution from a Single Point of Contact Unlike other maritime satellite service providers, including Inmarsat, KVH maintains complete control over the hardware, the network, and the support structure. Our mini-vsat Broadband team includes the system architects, the technology owners, the manufacturer of the integrated maritime terminal, the network operators, the earth station equipment manufacturer, and the 24/7/365 after-sale support program. Other companies simply act as a reseller, bringing together an antenna from one supplier, a modem from a second, and the satellite services from a third. In that situation, getting your service back on line when a service issue occurs could potentially cost substantial time and money. Our integrated hardware and network approach eliminates that risk. The end-to-end architecture of the mini-vsat Broadband system enables advanced remote diagnostics of system issues from trained technicians in KVH s Global Care Center, available 24/7/365. We remotely monitor system performance, update operating software with the latest releases over the network, diagnose both hardware and service issues remotely, and can arrange for trained technicians with the appropriate components to meet commercial vessels when they arrive at the next port when necessary. We will know if there is a service issue even before the crew on the vessel due to our terminal status messaging system. 6. Value-added Services Expand Versatility and Value A range of value-added services expand the capabilities and value of the TracPhone V7 and the mini-vsat Broadband service. 6.1 GSM Cell Phone Access With an installed base of over 3.3 billion users, the cellular phone is the most popular communications device on earth, used for voice calls, text messaging, Internet access, appointment keeping, electronic address book and a host of other applications. For crewmembers, charter/lease clients, and visitors working offshore, cell phones offer the ability to privately converse with their family and friends while retaining features like a private phone number for incoming calls, a personal address book, and communications using either voice calls or text messaging. Significant investment is being made by cellular service companies to extend the reach of cell phone networks offshore, especially in the cruise ship industry. In international waters, these legally approved services connect cell phone customers via satellite IP links to terrestrial networks. KVH is able to provide GSM or CDMA service thanks to a collaboration with On-Waves, a subsidiary of Siminn (formerly Iceland Telecom) and an industry leader in the maritime cellular service industry. On-Waves service supports use of cell phones for inbound and outbound calls, SMS text messaging, and connectivity via GPRS to enable communications in real-time from any part of the world. Adding cell phone support for commercial offshore operations requires one or more small picocell antennas (known as Base Transmitting Stations or BTS) and an onboard controller. Picocells are, in effect, miniature cell towers that enable cell phones to connect with their host service providers over IP connections. A typical configuration is illustrated in Figure 6 on the following page. 6

7 Figure 6: Typical Picocell Integration with TracPhone V7 and mini-vsat Broadband 6.2 Pre-paid Calling The mini-vsat Broadband pre-paid calling solution works anywhere on the mini-vsat Broadband network and is available for use on all TracPhone V7s. It includes dedicated Calling Gateway and three easy and flexible options for crew, charter/lease clients, and visitors to purchase minutes on the dedicated voice line. 1. Pre-paid cards sold in $25 and $100 denominations that crew, charter/lease clients, and visitors can recharge at any time by calling KVH 2. Pre-paid cards sold to crew, charter/lease clients, and visitors by the ship s captain or purser with no option to recharge via KVH 3. Blank cards that crew, charter/lease clients, and visitors can put money on by calling KVH directly, minimizing the administrative requirements for oil and gas fleet operators The pre-paid calling program is especially attractive to fleet operators because they can make a 20% profit on all calling cards they sell to their crew members 7. A Proven Commercial Solution KVH s TracPhone V7 and mini-vsat Broadband solution is a proven commercial solution employed on more than 600 vessels worldwide. The following is an overview of just a few of those customers. Table 6: TracPhone V7 Customer Overview Customer: United States Coast Guard # of Vessels 34 vessels, including110-ft and 225-ft cutter classes, 240-ft ice breakers, and on the High Tempo/High Maintenance Patrol Boat Fleet operating continuously in all weather and sea conditions for homeland defense operations in the waters off Florida and Puerto Rico Global Deployed in harm s way and supporting wartime missions in the Persian Gulf More than 2 years Customer: Offshore Marine Contractors # of Vessels 12 liftboats Gulf of Mexico and Africa Specific requirements are for operational purposes, charter customers, and lastly crew 7

8 More than 1 year Customer: Othello Shipping Company # of Vessels 16 gas tankers Global Crew morale, operational communications, fixed monthly rates More than 1 year Customer: M.H. Simonsen # of Vessels 7 oil/chemical tankers Primarily Europe Easy and cost effective installation with primary focus on the ability to budget their monthly costs due to the fixed price 10 months Customer: Group Desgagnes # of Vessels 14 MPP Rol/Lo vessels North Atlantic Ocean Deployed all vessels with onboard firewall to control websites that the crew visits, anti-virus, and vessel monitoring/tracking. Removed Inmarsat F77s and replaced with TracPhone V7s. Almost 2 years 7.1 Case Study: Nordic Tankers (formerly Clipper Marine Services A/S) Nordic Tankers A/S operates a fleet of approximately 60 tankers, employing a large number of crewmembers that are at sea for long periods of time and depend on reliable contact with their onshore engineers and facilities. Our mini-vsat Broadband service fit the bill with its reasonable price, simple installation, and high-speed connection. We paired our solution with a comprehensive middleware application suite for full control of the vessel s local area network and to switch between the mini-vsat Broadband service to Nordic Tanker s existing Fleet service for times when the ship is outside of mini-vsat Broadband coverage. We chose to switch to mini-vsat Broadband because it is a more affordable solution and also offers us more advantages for support and crew retention, explained Michael Mark, vessel IT manager at the time of the project implementation. We are utilizing the system for remote support as well, which in the long run, will result in significant savings. The TracPhone V7 also makes it easy for the crew to keep in contact with family and friends during their time at sea. All of our crewmembers are very happy with the new Internet onboard. They can now read newspapers, exchange messages via and crew mail, and even use Windows Live Messenger, Mark explains. Nordic Tankers is now using the TracPhone V7 antenna s multiple voice service lines, broadband Internet, e- mail, and data access throughout the mini-vsat Broadband network s global coverage area. They will also continue to benefit from their original Inmarsat Fleet F77 systems and service thanks to the TracPhone V7 s full compatibility with the middleware application. Nordic Tankers also chose to take advantage of our hardware lease program to eliminate any upfront investment on the hardware while the cost savings achieved by using the mini-vsat Broadband service save enough in service charges to cover the monthly lease payments. We don t need a crane to lift the TracPhone V7 equipment, which makes the installation easier and less expensive than other solutions, Mark explains. To increase savings and ensure that the cost of installation remains as low as possible, Nordic Tankers vessel IT employees received special installation training from Polaris Electronics, our certified Danish distributor. Polaris provided a unique TracPhone V7 installation kit for the Nordic Tankers vessels so that the crew would have all the materials needed to complete installation on their own. The staff at Nordic Tankers then created their own installation guides with the knowledge they acquired from these resources. The crew onboard are using these guides to perform TracPhone V7 hardware installations going forward while the vessel IT employees are following each installation remotely. A captain aboard one of Nordic Tankers vessels 8

9 oversaw one of these installations, and reported that crewmembers were able to install the system, using the manual, without needing any additional support from IT staff. The middleware package makes it possible for Nordic Tankers to log and control traffic and access all communications equipment through a local area network (LAN), reducing the need for excess cables and wiring. The software routes all communications through the TracPhone V7 while the vessel is traveling within the mini-vsat Broadband coverage area. When the vessel enters a region where mini-vsat Broadband service is unavailable, the middleware switches all communications to the Fleet service. Cost effective measures are then implemented, such as limiting access for personal use until the more affordable mini-vsat Broadband service becomes available again. This solution makes it easy for crewmembers to utilize a wide variety of applications in a cost-effective manner, with an ideal balance of the mini-vsat Broadband and Inmarsat services. The end result has been overwhelmingly positive for Nordic Tankers. The TracPhone V7 and mini-vsat Broadband have made it simple and cost-effective for Nordic Tankers vessels to communicate with their onshore offices. Over time, we will save a lot on support resources, since most support functions can be performed remotely with the TracPhone V7. We recently reinstalled a communications computer onboard, through which all of our main software is installed remotely by staff on shore. We expect that we will save a significant amount on travel as we implement this remote process, says Mark. 9