Communications Satellite Market Current Trends in the Asia Pacific Region

Transcription

1 Communications Satellite Market Current Trends in the Asia Pacific Region December ember 9, 2008 Yoshinori (Joe) Maeda Acting General Manager SKY Perfect JSAT Corporation

2 Corporate Overview 2

3 Corporate Profile Name SKY Perfect JSAT Corporation As of October 1, 2008 Address Established Capital TEL URL Business Description: Akasaka, Minato-ku, Tokyo , Japan November 10, billion (approx. U.S.$500M.) a. Satellite communications/broadcasting b. Multi-Channel Pay-TV Platform (Video Distributor) 3

4 Current Satellite fleet 12 satellites in orbit. Plans to launch 3 more. Horizons-2 (74 W) Horizons-1 (127 W) N-SAT-110 (110 E) JCSAT-R (Backup) Superbird C2 (144 E) JCSAT-2A (154 E) Superbird B2 (162 E) JCSAT-4A (124 E) JCSAT-3A (128 E) JCSAT-5A (132 E) JCSAT-1B (150 E) Superbird C (144 E) Superbird A (158 E) Mainly utilized for broadcasting service Mainly utilized for communication service 4

5 Operational Experience in Orbit Aggregated experience years in orbit = approx. 162 years 5

6 Commercial Communication Satellite Market Trends in Asia Pacific Region 6

7 Market Growth (Ku) South East Asia Ku-band TPE Demand by Application: CAGR Video Distribution % DTH % Video Contribution & OUTV % Telephony & Carrier % Broadband % Other Services % Total Ku-Band Demand % Source: NSR Ku-band growth is strong across all regions. DTH service are the biggest generator of commercial Ku-band capacity demand. High growth of VSAT Broadband 7

8 Market Growth (C) South East Asia C-band TPE Demand by Application: CAGR Video Distribution % DTH % Video Contribution & OUTV % Telephony & Carrier % Broadband % Other Services % Total C-Band Demand % Source: NSR C-band growth is showing a slowdown. Impact of migration of VSAT systems to Ku-band. Impact of regulatory issue. Impact of cost of ground facilities. 8

9 Key Driver of Transponder Demand Immature pay-tv market is the key driver of transponder demand in Asia. Subscribers and Channels Major DTH Platforms in Asia Pacific Japan : SKY Perfect JSAT 5.00 DishTV (India) Australia : Foxtel DTH Subscribers (mn) Astro (Malaysia) SkyPerfecTV (Japan) India Indonesia : Big TV (Reliance) Sun Direct TV Tata-Sky DishTV DD Direct AirTel Digital TV Indian Dish Network : IndoVision TelkomVision Dream DTH (Philippines) Foxtel (Australia) TelkomVision (Indonesia) IndoVision (Indonesia) Sun Direct TV (India) Tata Sky (India) BigTV (India) Number of Channels Malaysia Philippines : Astro : Dream DTH PLDT S. Korea : SkyLife Source: Frost & Sullivan 9

10 Potential DTH Market example Country Indonesia Indonesia DTH Penetration Current DTH penetration is very low (about 0.6% of population), but with the 5 new PayTV licenses (and more now) issued by DGPT, market penetration is expected to reach 3% by Competitive Landscape 5 new licenses have been issued at first by DGPT (and more now) and the players are expected to start DTH operations by the year India India Current DTH penetration is very low (about 1% of population), but with the advent of new players the penetration is expected to increase to about 13% by With 7 licenses already issued (including DD Direct), this market is very competitive with these 7 DTH players. But the players have still not been able to tackle issue of Ku band scarcity created by ISRO. Malaysia Malaysia A market penetrated around 20% and is expected to grow to 45% by The entire market is owned by Astro in Malaysia. A single player with a high market share essentially creates an entry-barrier for a new entrant in the market. We assume new entrants to DTH market of Malaysia until 2015 for introducing competition. Philippines Philippines DTH penetration is low, with the sole player in the market unable to drive penetration. We expect a moderate growth, given the dominance of Cable TV players in the pay TV market. Dream DTH has not been able to succeed in the market. PLDT is planning to launch its DTH operations by This could be the boost Philippines DTH market requires. More competition depends on PLDT s success. Source: Frost & Sullivan 10

11 Demand vs Supply (S E Asia) High Growth Ku-Band TPE Supply and Demand Total Ku-Band Supply Total Ku-Band Demand TPEs Source: NSR 11

12 Demand vs Supply (S E Asia) High Growth C-Band TPE Supply and Demand Total C-Band Supply Total C-Band Demand TPEs C-Band TPE Supply and Demand, CAGR Total C-Band Supply % Total C-Band Demand % Fill Rate Estimate 55% 54% 52% 54% 55% 55% 54% Source: NSR Excess supply in South East Asian market (both Ku and C-band). 12

13 Transponder Demand World wide 13

14 FSS Market -More than 70% market is dominated by big western private operators. -Intelsat/Eutelsat is used to be a international organization. 14

15 MSS Market MSS Market Forecast $MM 3,000 2,500 The Date of prediction 2,000 1,500 1, Marine 洋上 Ground 陸上航 Air 空 Source:Euroconsult MSS Global Market share,2007 Orbcomm 1% MSV 4% ACeS 5% Globalstar 10% Inmarsat 42% Iridium 13% Used to be international satellite organization -> Now Commercial entity Thuraya 25% 100%=$1,326MM Source:Wallstreet 15

16 30 Satellite Operators in Asia Americas EMEA Asia Ar-Sat* Cablevision CIEL* DirecTV Echostar Intelsat Nahuelsat Quetzsat* SatMex SES Americom Star One Telesat Venezuela* Wildblue 14 regional operators Total 19 operators Regional * Planned SKY Perfect JSAT Eutelsat Hispasat SES NewSkies Spacecom 5 intl. operators International Arabsat AsiaSat Eutelsat ABS Hellasat Intelsat Hispasat Telesat Intersputnik MEASAT Jazsat* Paksat JSC Gascom Shin Satellite SES NewSkies 7 intl. operators NigComSat* Nilesat NSAB Rascom* RSCC SES Astra Spacecom Telenor Turksat Yahsat 18regional operators Total 25 Operators Asia has the largest number of satellite operators. Big operators play a big role in Asia. ACeS Eutelsat Asiasat Intelsat APT Intersputnik BSAT Telesat China DBSat SES NewSkies ISRO RSCC SKY Perfect JSAT JSC Gascom KT SES Astra Mabuhay 9 intl. operators Measat S.S. Media Citra Indovision NZL-Sat* Optus Paksat Protostar P.S.N* PT Indosat PT Telkom Shin Satellite Singtel VNPT/VTI 21 regional operators Total 30 Operators Source: Aon Explorer 16

17 Obstacles & Challenges 1. High Procurement Cost Procurement of satellite costs are soaring. Recent launch cost is up by almost 150% due to a launch failure by specific launch vehicles and inflationary oil price. Insurance cost is currently high due to number of claims from launch failures. Satellite Insurance Market Capacity Evolution 2. Limited Orbital Slot Approx. 275 GEO satellites in the world (see right). Limited Orbital Slots for satellite business 3. Frequency Coordination Every country must respect ITU ruling. Frequency coordination conflicts will delay a satellite procurement schedule, leading to a loss of business opportunity 17

18 Conclusion a. There are many satellite operators in Asia, and every operators must aware that obstacles and challenges exist to finance a satellite business, as seen in the previous slides. b. Condosat is apparently one of clever and effective solutions necessary for Asian satellite operators. c. Next slide shows the examples of the Condosat. 18

19 Condosat Examples Considering limited orbital slots Utilizing frequencies efficiently Saving satellite & launch costs Establishing partnership among Asian satellite operators Current Condosat examples: Satellite ST-1 ST-2 *1 Orbital Slot 88E 88E Company SingTel/ Chunghwa Telecom Horizon-1 *2 Horizon-2 *2 IS-15 *3 BSAT-3c / JCSAT-110R *4 127W 74W 110E BSAT/SKY Perfect JSAT *1 Planned and announced recently. *2 Horizon-1 and -2 were launched in 2003 and 2007, respectively. Intelsat and SKY Perfect JSAT has established Horizons Satellite Holdings LLC as joint business and the project has been successful. *3 Planned for launch in SKY Perfect JSAT will own 5 transponders on IS-15. *4 Planned for launch in E Intelsat/ SKY Perfect JSAT 19

20 Contact Yoshinori (Joe)Maeda Acting General Manager, Corporate Planning & Strategy Dept. Corporate Planning & Strategy Division Corporate Planning & Strategy Group Office : FAX : [email protected] Ryuji Sasaki Acting General Manager, Global Business Dept. Sales Division II Satellite Business Group Office : FAX : [email protected] NOTE: This material contains forward-looking statements based on SKY Perfect JSAT Corporation s own projections and estimates. The markets where SKY Perfect JSAT Corporation is active are extremely volatile, subject to rapid shifts in technology, customer demands, prices, changes in economic conditions, the potential of satellite failures and many other variables. Due to the risks and uncertainties involved, actual results may differ from the content of these statements. Therefore, these statements should not be interpreted as representations that such objectives will be fulfilled. 20

21 Thank you very much! Yoshinori Joe MAEDA SKY Perfect JSATCorporation 21

22 Appendix 22

23 Merger of SKY Perfect JSAT Group Three Business entities have merged into SKY Perfect JSAT Corporation as of Oct 1, <Before Merger> (Holding Company) SKY Perfect JSAT Holdings Inc. 100% 100% 97% 100% Other Principal Group Companies <After Merger> (Holding Company) SKY Perfect JSAT Holdings Inc. 100% (New Operating Company) 100% Other Principal Group Companies 23

24 Future Launch Schedule Plans to launch three(3) satellites by the end of ) FY2009: IS-15 Partial ownership with Intelsat 2) FY2009: JCSAT-12 Backup satellite to to JCSAT-R 3) FY2011: NSAT-110R BS/CS hybrid satellite with BSAT 24

25 Coverage Map of Asia-Pacific Region JCSAT-2A C-band JCSAT-5A C-band Superbird-7(C2) Ku-band SE Beam SATSOFT dBW 30dBW 38dBW 34dBW 44dBW 40dBW JCSAT-3A C-band IS-15 Ku-band Superbird-7(C2) Ku-band Steerable Beam SATSOFT 47 38dBW 36dBW 47dBW 25