MegaBits per Second and Dollars per Day: Defining the Most Cost-Effective Communications Solutions for Oil & Gas



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MegaBits per Second and Dollars per Day: Defining the Most Cost-Effective Communications Solutions for Oil & Gas May 2013 Mike Gold VP Sales, Europe, Russia and Israel Comtech EF Data

Oil & Gas business environment is in a period of rapid change Depletion of older reserves Exploration & Production relies on demanding methods, such as deepwater, tight oil, and shale gas. More expensive, more complex. Alternatively, industry pursuing enhanced oil recovery from existing wells. Takes advantage of new techniques, technology, and awareness of geology of field and production history More information required and produced than ever More sophisticated technologies are producing more seismic drilling and production data These approaches depend on access to data Comtech EF Data Proprietary IDC October 2012 2

Petrobras platforms that require Efficient & Reliable Satellite Communications Types of Platforms used by Petrobras Offshore and Mobility platforms Satellite Communications are key for Petrobras 3

More Data and New Technology Digital Oilfields: development and production generate large volumes of data: Acquisition, Processing and storage Chevron is growing at 2 terabytes per day; in 1997, there were only 5 terabytes for the entire company." Jay R. Pryor, VP bus. devt, Chevron Corp., 2011 Exploration uses sophisticated analytics: Seismic processing & reservoir modeling and simulation 3D used to identify new resources, 4D used to understand changes in a reservoir over time. More sophisticated technologies are producing even more data. Wide azimuth (WAZ) involves multiple ships making multiple passes to capture richer picture Produces 3x to 4x more traces per square kilometer than narrow-azimuth towed streamer (NATS) 6x to 8x data volume (IDC October 2012) Comtech EF Data Proprietary 4

Digital Oilfield Development Source: HarrisCaprock 5

Defining Big Data and Analytics: 4V Big Data represents a new generation of technologies and architectures designed to economically extract value from very large volumes of a wide variety of data (structured and unstructured) by enabling high-velocity capture, discovery, and/or analysis. Volume Chevron s 2TB/day... Data from: Exploration, Production data, Refining, Trading, Financial, retail POS... Velocity high-speed streaming data Variety - structured, unstructured and semi-structured data Value Timeliness Volume Velocity Variety Value Comtech EF Data Proprietary 6

O&G Satellite Market Oilfields, Offshore and Mobile platforms have typically relied on satellite communications Only way to reach out to remote areas and have suitable availability Energy markets are in the midst of a bandwidth revolution requiring over 25 Gbps of bandwidth by 2022. With over 461,000 In-service satellite units and $2.6B in revenues by 2022, Energy markets remain a critical consumer of satellite communications for the foreseeable future. They are key vertical across all sectors of the satellite communications industry NSR Energy Markets, 2013 Comtech EF Data Proprietary 7

Communications, Big Data and O&G Many of the challenges of accessing data have been overcome with faster networking technologies, but there are still input/output storage challenges such as insufficient capacity, limited upload bandwidth, and multiple access patterns IDC, Oct 2012 Several recent breakthrough in satellite communications Big Data Volume Velocity Variety Value Satellite Increased transport capacity, High Throughput Satellites, Dynamic bandwidth Low jitter/low latency, Transport of real time streaming content, Quality of user experience, Acceleration, Mobility platforms, Reliability, Guaranteed bandwidth Content agnostic QoS, application aware Comtech EF Data Proprietary 8

What Does it All Mean? Scotty, I need a lot more throughput but I need to minimize bandwidth! 9

Captain, I think I have the solution and ain t more dilithium chrystals! The Answer 10

TDMA Systems Won t Cut it Anymore Big Data means less opportunity to share TDMA systems have inherent overheads and latencies. The required efficiencies rely on new features that aren t available/cost effective in TDMA. 11

Four Pillars of Optimizing Throughput Coding Gain WAN Optimization Physical Layer Enhancements Adaptive Coding and Modulation 12

Coding / FEC (Forward Error Correction) Does not change your Signal to Noise ratio Does nothing to improve your signal quality FEC s simply correct errors lost in transmission But not all FECs are created equally 13

Coding / FEC (Forward Error Correction) Shannon-Hartley Bound: There is a maximum bound on the amount of error free data that can be transmitted though a noisy transmission medium Coding Type Sequential or Viterbi Turbo Product Codes Versa FEC DVB-S2 / DVB-S2-EB1 Vs. Shannon Bound + 4-8 db + 2-3 db + 1-2 db + 0.7 1.5 db 14

Spectral Eff. Advances in Coding Gain Coding Comparison 2.5 Shannon Limit QPSK 2 DVB-S2 8/9 Turbo 7/8 Viterbi 7/8 1.5 DVB-S2 3/4 VersaFEC.706 Turbo 3/4 Viterbi 3/4 1 DVB-S2 1/2 Versa FEC.533 Turbo 1/2 Viterbi 1/2 0.5 0 0 1 2 3 4 5 6 7 8 9 10 Eb/No 15

Advances in Coding Gain on: Fixed BW Maximize Throughput Vit + RS TPC DVB-S2 DVB-S2-EB1 Fixed C/N 6.0 db 6.0 db 6.0 db 6.0 db Best Modulation / Coding for Es/No QPSK ½ QPSK ¾ QPSK 5/6 (.827) QPSK 155/180 Spectral Efficiency 0.92 bits / Hz 1.5 bits / Hz 1.61 bits / Hz 1.67 bits / Hz BW = SR 5.0 MHz 5.0 MHz 5.0 MHz 5.0 MHz User Data Rate 4.6 Mbps 7.5 Mbps 8.1 Mbps 8.4 Mbps 16

Four Pillars of Optimizing Throughput Coding Gain WAN Optimization Physical Layer Enhancements Adaptive Coding and Modulation 17

Carrier Manipulation Carrier in Carrier Use cancellation techniques in duplex circuits to take advantage of BW re-use and balance PEB Reduced Roll Off Figures (ROF) DVB-S2-EB1 Allows carriers to use more symbols in a given amount of allocated BW dscpc (Dynamic SCPC) Allows carriers to be dynamically created and sized to the remote site data demand 18

DoubleTalk Carrier-in-Carrier Based on patented Adaptive Cancellation, Carrierin-Carrier (CnC) allows carriers in a Duplex satellite link to occupy the same transponder space Without DoubleTalk Carrier-in-Carrier With DoubleTalk Carrier-in-Carrier Carrier-in-Carrier is a Registered Trademark of Comtech EF Data DoubleTalk is a Registered Trademark of Applied Signal Technology, Inc. 19

Carrier in Carrier (CnC) Advantage What type of advantage is CnC? CnC is a calculable and definitive advantage CnC is a static, unchanging advantage The advantage due to CnC will not change as conditions change Throughput increases and BW/Power savings are guaranteed for the life of the circuit What are the restrictions? Both ends of the link must be able to see their own uplink Asymmetric circuit ratios (3:1) based on Symbol Rate Power ratio limitations on TX vs. RX (+/-7 db PSD)

Extreme Spectral Efficiency Carrier-in-Carrier can be used to achieve extreme spectral utilization that would not otherwise be possible Best DVB-S2 Spec Efficiency = 4.45 b/hz Asia: 16APSK ¾ FEC --- 90 Mbps DPLX in 15.5MHz Spectral Eff = 5.78 b/hz = 64QAM US: 32APSK ¾ FEC --- 217 Mbps DPLX in 30MHz Spectral Eff = 7.24 b/hz = 256QAM THESE ARE CABLE MODEM FIGURES 21

Additional Roll Off Figures Roll off Figures (ROF) also referred to as alpha or α change the spectral shape of a carrier New Roll Off Figures 15%, 10%, 5% 22

Lower ROF Advantages What is the advantage to lower ROF figures? ROF can be used to calculate occupied BW by some satellite operators Reducing your ROF may reduce your occupied BW and thus reduce your BW payment Alternatively you can keep your occupied BW and increase your Symbol Rate What are the restrictions / drawbacks? Reducing occupied BW will reduce your available Power Equivalent BW (PEB) which reduces Es/No by about the same % as your savings in BW Keeping occupied BW and power fixed while increasing your symbol rate will lower the Es/No by about the same % as your increase in Symbol Rate Many operators may not let you use SR+ROF as occupied BW 23

Dynamic SCPC (dscpc) VMS provides dynamic bandwidth and carrier management Share pool(s) of bandwidth with other terminals Bandwidth can be increased or decreased on demand Lossless switching Shared Outbound BW Pools Entry Channel Comtech EF Data Proprietary 24

Four Pillars of Optimizing Throughput Coding Gain WAN Optimization Physical Layer Enhancements Adaptive Coding and Modulation 25

Adaptive Coding & Modulation (ACM) Adaptive Coding & Modulation (ACM) converts the link margin into increased capacity average throughput gain of 100% (or more) is possible, compared to traditional CCM Most of the year, the link operates at significantly increased throughput For the worst few hours of the year, the link may be available with lower throughput 26

ACM Concept is Simple (ACM) allows for automatic change in Modulation and Coding in response to current link conditions Symbol Rate and Transmit Power are fixed and the data rate changes as the modulation and code rate are changed ACM carriers use fixed bandwidth and power on the transponder The receiving modem in a link, provides signal quality updates to the transmit modem The transmit modem changes the Modulation and/or Code Rate to the most spectrally efficient Mod/Cod for the current conditions 27

Overall Link Margin ACM s value is in the conversion of Link Margin Greater the Link Margin the greater the value of ACM Most Link Margin boils down to two main factors: Link availability (99.8% vs. 99.6%) Effects of Rain Fade (Ku-Band vs. C-Band) 28

Time 3:10 3:30 3:50 4:10 4:30 4:50 5:10 5:30 5:50 6:10 6:30 6:50 7:10 7:30 7:50 8:10 8:30 8:50 9:10 9:30 9:50 10: 10: ACM in Operation ACM Operation and User Throughput 70 60 50 Mbps 40 30 User DR Avail DR 20 10 0 Rain fade: 2.2 db 16-APSK 5/6 @ 64 Mbps To 16-APSK 2/3 @ 51 Mbps Deep Rain fade: 6.9 db 16-APSK 5/6 @ 64 Mbps To QPSK 4/5 @ 31 Mbps 29

Proper Pt-Pt ACM Implementation Monitor WAN Capacity Ingest Data WAN OP Prioritize Data based on filter rules Drain Data Based on drain rules 30

Monitor WAN Capacity FX QOS/PEP CDM-760 TX Capacity Feedback Constant monitor of the CDM-760 TX WAN capacity ensures QoS / WAN OP are enforced and maximize throughput 31

Proper Pt-Pt ACM Implementation Ingest Data All Traffic Ingested Signalling Voice Video HTML HTML Voice Video Voice Voice Signalling FX QOS/PEP Data Ingest of all traffic destined for the WAN 32

Proper Pt-Pt ACM Implementation Prioritize Data Priority Classification FX QOS/PEP Rules / Filters Protocol IP Subnet VLAN ID DiffServ Destination Port 1 2 3 Signalling Voice Voice Video Signalling Voice Video 4 HTML HTML Various rules and filters can be used All traffic is associated with a priority classification 33

Proper Pt-Pt ACM Implementation Data Drain Priority Classification Drain Algorithm 1 2 3 4 Signalling Voice Voice Video HTML Signalling Voice Video HTML Drain Options Strict Priority Fair Weighted Min / Max Signalling Signalling Voice Voice Video Drain rules are applied to minimize latency and ensure high priority traffic maintains CIR 34

Four Pillars of Optimizing Throughput Coding Gain WAN Optimization Physical Layer Enhancements Adaptive Coding and Modulation 35

WAN Optimization Stampede FX add WAN optimization TCP Acceleration & Optimization Mitigating the effect of network induced latency Reduces content that needs to traverse the satellite link Data compression JPEG image reduction & smoothing Caching Dynamic Data Suppression (de-duplication) Application Acceleration Traffic Management QoS/Traffic Shaping Comtech EF Data Proprietary 36

WAN Optimization Customer Savings By utilizing several of the FX Series key features, Hughes is reducing outbound web (HTTP) traffic by 20 25%, improving user experience and reducing OPEX, including: Caching Hughes needed a caching solution that required less recurring licensing costs than other 3 rd party solutions After performing a 3-year cost of ownership analysis, Hughes determined that the FX Series would save considerable OPEX Hughes is utilizing less bandwidth & improving network performance with the FX Series caching functionality GZIP Compression Hughes is using GZIP compression to conserve satellite bandwidth Image optimization & smoothing Helping Hughes improve network performance Comtech EF Data Proprietary 37

K4 GZIP Compression K4 GZIP is lossless compression: Bits In = Bits Out GZIP searches for matches current data against previous data Decompressor has identical history buffer is able to exactly reconstruct the original sequence K4 GZIP compression will work with any data interface, CCM, ACM, CnC or any combination Benefit will vary with data type: web pages, text, documents, email vs. compressed voice and video 38

Percent Compressed Ethernet Packet Size K4 GZIP Compression Compression rates of 52-59% are achieved across various packet sizes and terrestrial data rates using the well defined Calgary Corpus bitstream 60% 58% 56% 54% 52% 200 Bytes 420 Bytes 800 Bytes 1200 Bytes 1472 Bytes 50% 48% 10 50 150 200 300 350 User Data Rate Before Compression 39

The Problem SCOTTY, I NEED MORE THROUGHPUT!!!!!! 40

The Answer Captain, we are now powered by Comtech EF Data products. Warp drive is available! 41

At the heart of Comtech Products: Multi-Layer Optimization Highest spectral efficiency in its class Most Efficient Physical Layer Outbound and return ACM Outbound VCM Low Overhead Framing / Encapsulation Header & Payload Compression Dynamic SCPC Advanced QoS and Group QoS WAN Optimization Comtech EF Data Proprietary 42

Advanced Communication Solutions Featured Products Advanced VSAT Solutions Portfolio of highperformance bandwidth-efficient solutions Satellite Modems CDM-750 CDM-625 CDM-625-EN CDM-570/L-570/L-IP CDM-570/LEN-570/L- IPEN SLM-5650A DMD2050 DM240XR RAN & WAN Optimization Memotec CX-U Series Stampede FX Series Memotec NetPerformer Managed Bandwidth Vipersat Management System (VMS) SkyWire MDX420 Satellite Network Gateway RF Products Indoor Products Frequency Conversion L-Band 70/140 MHz Outdoor Products Frequency Conversion L-Band 70/140 MHz Amplifiers 43

Product Positioning 128 Kbps 256 Kbps 512 Kbps 1Mbps 2Mbps 15Mbps 34Mbps 155Mbps 44

AdvancedVSAT Overview Hub and spoke network Shared DVB-S2 outbound VersaFEC Return Comtech EF Data Proprietary 45

Dynamically Managed Returns DVB S2 ECM Contrl CH VersaFEC dscpc Return All carrier sizes shown as example only DVB-S2 Remote VSAT 1 CDM 840 Remote Router LAN Hub VMS Location LAN Remote VSAT 2 CDM 840 Remote Router LAN VMS-Server CTOG-250 CDM 800 Gateway CDD880Multi-Receive Router x 2 Remote VSAT 3 LAN CDM 840 Remote Router Comtech EF Data Proprietary 46

Layer 2 Operation w/vlan Mgmt LAN Trunk VLAN A, B, C Trunk VLAN A, B, C VMS Hub Router CTOG-250 w/acm Controller CDM-840 Remote X GE CDM-800 ISP 1 VLAN B ISP 2 VLAN C CDD-880 CDM-840 Remote Y GE Remote Router Comtech EF Data Proprietary 47

Return Channel ACM Based on VersaFEC ACM Allows for automatic change in modulation and code rate in response to changing link conditions Very useful feature for Ku where excessive link budget margins is build up Optimizes channel coding and modulation on a frame-byframe basis Allows each remote to operate optimally subject to antenna size, location within the footprint, rain fade and other impairments Comtech EF Data Proprietary 48

Group QoS Group QoS enables multi-level QoS for the shared outbound Provides additional flexibility and control to the network operator Group QoS is fully integrated with ACM / VCM Groups are defined by one or more IP address/ subnet Each group is assigned a CIR and MIR Within the group, QoS can be based on DiffServ Min/max Max/priority Detailed stats are provided For VCM, MODCODs are assigned to each group Comtech EF Data Proprietary 49

Product Positioning 128 Kbps 256 Kbps 512 Kbps 1Mbps 2Mbps 15Mbps 34Mbps 155Mbps 50

CDM-625 Advanced Satellite Modem CDM-625 Advanced Satellite Modem builds on Comtech EF Data s legacy of providing the most bandwidth efficient satellite modems First modem to support DoubleTalk Carrier-in-Carrier with LDPC and VersaFEC (short block LDPC) FEC Multi-layer Optimization DoubleTalk Carrier-in-Carrier with Automatic Power Control VersaFEC low latency LDPC with ACM Low overhead Encapsulation (SLE) for IP traffic Header compression for IP traffic Hardware based payload compression for IP traffic 51

CDM-625 Advanced Satellite Modem Award Winning Technology Carrier-in-Carrier was the winner of the 2007 World Teleport Association (WTA) Teleport Technology of the Year Award CDM-625 was the winner of the 2010 WTA Teleport Technology of the Year Award Thousands of modems deployed around the world Ideal for duplex links Future proof modem simplifies mid life technology update FAST technology Upgrade can be as simple as entering a code Increased capacity 52

Product Positioning 128 Kbps 256 Kbps 512 Kbps 1Mbps 2Mbps 15Mbps 34Mbps 155Mbps 53

CDM-760 Advanced High-Speed Trunking Modem Builds on award winning CDM-750 modem Extra wide Symbol Rate Range 0.1-150 Msps Extreme Data Rates up to 314 Mbps DVB-S2-EB1 (Efficiency Boost Gen 1) technology Upgradeable to DVB-S2 Extension (DVB-Sx) and DVB-S3 Supports CnC, ACM, and GZIP lossless compression Carrier-in-Carrier is a Registered Trademark of Comtech EF Data DoubleTalk is a Registered Trademark of Raytheon Applied Signal Technology 54

CDM-760 Key Features / Specs Symbol Rate: 0.1 150 Msps (0.1 314 Mbps) Coding: DVB-S2 LDPC/BCH EN 302 307 compliant DVB-S2-EB1 Efficiency Boost technology DoubleTalk Carrier-in-Carrier bandwidth compression ACM and CCM Operation, GZIP lossless real-time compression GSE industry standard encapsulation Dual IF: 70/140 & L-Band w/ L-Band monitor (standard) Ethernet Data Interfaces (> 1.2M pps duplex operation) Interface Option Cards (Choose up to 2 Cards) Multistream operation (MUX up to 3 interface types) 55

Mbps 70 60 50 40 30 20 10 0 Time 3:10 3:30 3:50 4:10 4:30 4:50 5:10 5:30 5:50 6:10 6:30 6:50 7:10 7:30 7:50 8:10 8:30 8:50 9:10 9:30 9:50 10: 10: User DR Avail DR SatCom Infrastructure Technologies That Extend Bandwidth & Reduce Expenses Pillars of Optimizing Throughput Coding Gain Mod/Cod DVB S2 EB1/ROF WAN/RAN Optimization Stampede Physical Layer Enhancement Carrier-in- Carrier Technology Without DoubleTalk Carrier-in-Carrier ACM Operation and User Throughput Adaptive Coding and Modulation With DoubleTalk Carrier-in-Carrier

Industry Awards & Recognition Comtech Maintains Market Leadership in SCPC And Satellite Mobile Backhaul Best Backhaul Solution for Africa Award Advanced VSAT Solutions Product of the Year Award Comtech Named Dominant SCPC Satellite Modem Manufacturer CDM-750 Modem 2011 Leadership Award CDM-750 Modem 2010 North American New Product Innovation of the Year Award in Satellite Communications Modems CDM-625 Modem 2010 Teleport Technology of the Year Award & DoubleTalk Carrier-in- Carrier 2007 Teleport Technology of the Year Award MetaCarrier 2012 Industry Innovators Award 57

Comtech EF Data 2114 West 7th Street Tempe, AZ 85281 USA Tel +1.480.333.2200 FAX +1.480.333.2540 sales@comtechefdata.com www.comtechefdata.com