Intelsat S.A. The World s Leading Provider of Satellite Services. Summarizing the Opex vs Capex Dilemma

Transcription

1 Intelsat S.A. The World s Leading Provider of Satellite Services Summarizing the Opex vs Capex Dilemma 1

2 Which Network is Best for My Network? Total Cost of Ownership (OPEX Vs CAPEX) Relative Efficiency of Alternative Schemes Mbps / MHz QPSK 8PSK DVB-S DVB-S2 LDPC CinC 16/32APSK Time 2

3 Capacity Type Overview Station Kept (S/K) Extended C-band Super Extended C- band Inclined Orbit (IOO) MHZ Cost (OPEX) Equipment Cost (CAPEX) Required Equipment Non-tracking antenna with standard BUC, LNB and cabling Non-tracking antenna with Extended Frequency BUC, LNB and cabling Step-tracking antenna with standard BUC, LNB and cabling Target Applications Corporate networks, Cellular Backhaul, Trunking Mobility, Cellular Backhaul, Trunking Trunking Mobility, Disaster Recovery, Business Continuity, Trunking Technical Sophistication Low Medium (interference troubleshooting) Medium/High (tracking system maintenance) Regulatory Constraints Standard Moderate Many Standard 3

4 Managed service Concept 19 February

5 Managed Service Offering A (Full)** Managed Service delivery of the Intelsat designed solution includes: Solution Design to meet agreed availability commitment as per SLA, Delivery and installation Commissioning of all specified Remote Sites equipment at each remote site when needed The end to end operation, support, maintenance and spare management**. Conversion of actual contracted MHz into Mbps: Total solution for the netwrok based on a per Mbps basis Service will include the delivery of Mbps, network management / monitoring and ground support**. **: Can be tailored/customized based on SLA and service requirement: Network upgrade or not With/without on ground presence Network Management System if required Intelsat Proprietary and Confidential 5

6 Service Delivery After contract signing, O&M support is expected to begin and then ramp up over time as on ground support team is deployed Assuming all VSAT network links alarms and events are currently reported to an existing NOC. Assuming customer NOC would then be responsible for reporting this information to the service provider as necessary to provide on ground support. Tasks to be performed: Preventive maintenance (PM) Corrective maintenance (CM) NMS installation Spares part management, RMAs, and replacement of equipment Intelsat Proprietary and Confidential 6

7 On-Ground Support Model 7

8 Ground Support In order to meet the agreed SLA, Service provider to propose : Dedicated In-Country personnel. On-Site Expertise for both preventive and corrective visits and for rapid resolution of faults Presence of a Project Coordinator (PC) The local technical team will be under the responsibility of PC A permanent locally assigned Project Manager A dedicated Project Manager Support Includes: Preventive Maintenance (PM) Corrective Maintenance (CM) Installation & Integration Testing and commissioning of contracted services 1st, 2nd, and 3rd Level Support; quickly identify & solve problems directly or remotely. 24 x 7 x 365 on-call support resources Spares Management Plan RMA management as necessitated by any equipment failures. 8

9 Logistics Import/Export: Customer will be responsible for import of equipment Logistics : Customer will be responsible for custom clearance and will bring equipment to a central WH. Service provider will support with the required documents etc. From there service provider will pick the equipment and will take it to its central or regional WH. Movement from WH to sites needs to have a responsible person. Same applies in reverse direction (from site to service provider WH to customer s WH) 9

10 SLAs & KPI Responsibility Matrix: Draft will be proposed by Intelsat Service Level Agreement: Draft will proposed by service provider KPI's, reward & penalty mechanism: Will be included in proposed SLA 10

11 Service provider Ground Support Shared Responsibility Customer Responsible Installs L1 L2 L3 On Site TS IP Routing - FUS Fault Isolation RF Testing Restoral RMA/ Replace Equip DomSat Remote Hands- On Intelsat1 Network RF TS Support Level IP Routing - Network Monitor Design LOCAL PM, LOCAL TECHNICIAN 11

12 Rural Cellular backhaul 19 February

13 The Intelsat Value Proposition (1/2) Intelsat offers a number of wide and spot beam designs in C- band and Ku-band to allow a match of the proper capacity to the proper requirement Intelsat will collaborate to develop forward-looking pricing, allowing a mobile operator to grow its network viably within market conditions The incorporation of Intelsat Epic NG into its portfolio enables a mobile operator to increase its network capacity in C-Band while expanding in Ku-, leveraging existing Traditional capacity where appropriate Existing services can continue to leverage existing equipment on either Traditional capacity or transition to new C-Band Spot, as appropriate New services most likely will use new C-Band or Ku-Band Spots, leveraging new, smaller equipment 13

14 The Intelsat Value Proposition (2/2) Through optimization and Total Cost of Ownership (TCO) analysis, Intelsat will consultatively provide the proper solution, including remote kits, best suited for an application Intelsat will leverage its experience and ecosystem vendor relationships to help the customer network rollouts. Offering the ability to grow intelligently, economically and reliably via new economics for increased profits. 14

15 Different Value Propositions of Intelsat Epic NG Current Challenges Customer Benefits Epic NG Value Maximized BUC Restricted inbound B/W Supporting Demand More inbound throughput New Locations Expansion to new areas not economically feasible Growth Smaller kit with same throughput Operational Complexity Currently on numerous satellites Consolidation Reduced operational complexity 15

16 Intelsat EpicNG vs. Traditional Comparison Concept - Tradeoff of Efficiency and Throughput Desired Outcomes & Solutions : Same throughput but lower cost per site (OPEX Focus) Increased performance allows smaller, inexpensive kit to function Able to grow network into previously cost-prohibitive areas More throughput per site (CAPEX Focus) For a given BUC size, push (T2/W T1/W) more Mbps per Watt of power Eliminates the need to purchase upgraded kit and travel to site to install Mbps per Watts T2 / W T1 / W Traditional IS-33e IS-29e E1 E2 Mbps / MHz Combination of cost efficiencies and throughput allows service provider to balance these two elements 16

17 Rural Cellular Backhaul Service Key Differentiators Why Intelsat? I. Suitable space segment resources and extensive portfolio (alternatives) II. Deliver the utmost satellite transport optimization equipment + capacity with Traditional with bridge to EPIC III. Knowing the TCO output, we can deliver an economic and reliable network solutions for your customers. IV. Experience in service provisioning, installation and network maintenance via local and remote customer support V. Extensive knowledge how to maximize profitability with limited resources. 17

18 Key Benefits and advantages to moving to Ku remote access Low network TCO (capex & opex) Possibility to reuse existing C band hub (on EPIC) Higher network/service availability (hub uplink C-band) Low power consumption (solar kit) and maintenance cost Breaking barriers and entering to new markets Better spectral efficiencies Use smaller kit at remotes Larger inbound carrier w/less power Quick network deployment Savings in logistics (transportation and storage) 18

19 Intelsat is working with ecosystem partners to incorporate features and modularity to unleash Intelsat Epic NG Remote Kits Actual network requirements will dictate best kit combinations Working on defining remote kit package best suited for rural access Generic kits that can be suggested for different types of cellular backhaul links: Type Platform BUC Antenna Band Avail Trad Eff.* Epic Eff.* Low Rate Access Gilat SkyEdgeII 2W 1.2M Ku- 99.8% Low Rate Access idirect X1 2W 1.2M Ku- 99.8% Low Rate Aggregation CEFD CDM W 2.4M Ku- or C % Med Rate Aggregation CEFD CDM W 4.5M C % High Rate Aggregation Newtek 40W 7.3M C % Minimizing remote kit costs imperative to provide attractive satellite communications economics 19

20 Total Cost of Ownership Model Rural Cellular Backhaul 20

21 Assumptions Sample of assumptions made for analysis purpose Estimated cost Gilat SkyEdge II hub TDMA platform included (New Network) Hub antenna and RF were not included Estimated cost for the infrastructure (12m pole/tower), power solution required (solar panels + batteries) for small base station and VSAT terminal Estimated VSAT, 2G/3G base station (Small Cell) cost, software, installation and maintenance costs also included. VSAT remote terminals included (1.2m ku-band, Modem, 4W BUC+LNB) Services included: hub manage service and maintenance Service contract term: 3 Yrs Considered spectral and power efficiencies depicted in the technical analysis enclosed. 21

22 Key Information needed for TCO analysis Identify the country of operation and number of remote rural sites. Estimated avg. No. of Subscribers per site/village? Estimate ARPU figure? Are these remotes are 2G or 3G? Base station model, specs (i.e. 2G or 3G)? Do you have restriction to use the same base station (i.e. Ericsson or Huawei)? No. of Erlangs and/or data rate per remote New or existing network expansion (Hub/TDMA or SCPC system)? Satellite utilization (ID, Mhz, orbital loc and so on)? 22

23 Typical Traffic Profile per remote 2G & 3G CBH Example Traffic Profile assumptions for a 300 remote network: (*) (*) Will OPEX ultimately save the day? (*) Assumptions and estimated figures 23

24 Total Cost of Ownership Analysis (2G GSM/3G) Example Epic NG IS-33 24