- Derik Wagner is the managing director of MTN Communications and recently elected president of ISS. He discusses the challenges of meeting high expectations for connectivity aboard superyachts globally. Key challenges include ubiquitous high-speed connectivity, streaming rich content, and managing increasing devices and content within bandwidth limitations. - Wagner sees technological advances coming through high-throughput satellite services providing faster speeds, and solutions that optimize bandwidth usage regardless of hardware. Innovation is also occurring in antenna and equipment designs for better efficiency. - While new build and resale markets have slowed, demand for additional connectivity from existing clients has allowed MTN's business to continue steady growth. Wagner remains optimistic about opportunities in emerging markets like Asia.

1. T R U T H • O P I N I O N K N O W L E D G E • I D E A S A N D E X P E R T I N D U S T R Y A N A L Y S I S
ISSUE 164
AUGUST/
SEPTEMBER 2015
SUPERYACHT INDUSTRIALISTS
TSR speaks to MTN Communications’
managing director and recently elected
ISS president Derik Wagner.
TURNING TANKOA AROUND
Following a tumultuous history,
Tankoa shipyard is back on its feet
after two recent sales.
LIGHTING UP YOUR LIFE
A look at what there is on offer
and the latest developments in the
underwater lighting world.
GROWING A BACKBONE
The importance of future-
proofing AV technology on
board in order to stay up to date.

2. ISSUE 164 45
Derik
Wagner
TSR’s series of interviews with the industry’s leading
figureheads continues with MTN Communications’
managing director of yacht services, and recently
elected ISS president, Derik Wagner.

3. The Superyacht
REPORT
46 ISSUE 164
Derik Wagner interview
As one of the leading
providers of satellite
communications to the
superyacht industry what
are the immediate challenges
for the sector?
The challenge is meeting expectations
for ubiquitous high-speed connectivity
and rich streaming content on a global
scale. Communications providers
need to continually transform the
on-board experience so it exceeds
ever-expanding lifestyle requirements,
because owners and guests expect the
same experience they have on land.
Usage is regional, seasonal and
not continuous, but when owners
and guests are on board they expect
reliable high-speed connectivity to be
available any time they want or need
it. This requires a global network
infrastructure and support resources
capable of responding to issues
anywhere in the world at a moment’s
notice. Skyrocketing demands are
driving complexities in on-board
networks. There are now more devices
per person, more content per app,
more apps per device … It’s never
ending!
The growing Internet of Things
(IoT) also means bandwidth and
hardware needs to keep escalating.
A huge challenge has evolved from
trying to juggle all these complex,
disparate networks while providing
communications services that are
of equivalent quality to the client’s
private residence. This problem
spawned our development of
MTN Maestro, our end-to-end
communications management solution
that gives captains or ETOs an easier
way to manage it all without having to
worry about underlying infrastructure.
Maestro provides total visibility
and complete control to optimise all
networks so users can consistently
access all the apps and content
they expect wherever they
are. Broadband at sea is more
expensive than terrestrial services;
sophisticated technology is required
to help customers do more with their
bandwidth and realise a higher value
per megabyte (MB).
Solutions must include additional
components that optimise all wide
area networks (WANs) and local
area networks (LANs) to help vessels
achieve an increase in bandwidth
utilisation efficiency. This requires
economies of scale, by working directly
with satellite operators to better
control costs through bulk capacity
purchases and the development
of intelligent routing solutions to
complement very small aperture
terminal (VSAT) satellite solutions,
using cellular data and terrestrial
broadband services when vessels are
close to shore.
Since joining MTN, Wagner has overseen the expansion of
the communications and content provider’s market share,
which the company now estimates at around 50 per cent of
the global superyacht fleet. As this is our annual technology
issue, Wagner represents the perfect interview subject as
someone spearheading the development of a sector that is
often unjustly maligned by superyacht operators. While other
suppliers and service providers are driving the cost of their
products down, the cost of bandwidth at sea remains eye-
wateringly high, even for superyacht owners.
That this is a constant source of dissatisfaction overlooks
the fact that delivering land-based connectivity in isolated
areas, many of which sit on the periphery of satellite
coverage, is a very expensive pursuit. Factor in the soaring
levels of demand on board, with a plethora of devices sapping
bandwidth, and a complement of crew who expect to enjoy
equal levels of connectivity, and it becomes clearer precisely
why providers are fighting a losing battle with prices.
Yet today represents an exciting time for the satcoms sector.
An influx of upstanding providers has driven competition
levels up and, with it, the quality of performance and service.
In fact, it is one of the areas where we could expect to see
some of the more profound innovations in the medium term.
So with these considerations in mind, Will Mathieson sat
down with Wagner to evaluate this fascinating sector …

4. ISSUE 164 47
The Superyacht
REPORT Derik Wagner interview
Historically, the industry has been
sluggish in effectively marketing its high
level of innovation to potential clients,
but you are at the forefront of one of its
most innovative sectors. Where do you
see technological advances manifesting
themselves in the area of satcoms in
the future?
Through the delivery of on-demand, high-speed content,
such as streaming HD/SD video, for ‘super users’.
Already, high-throughput satellite (HTS) services – slated
for 2016 – will offer much faster speeds and higher
throughput in the busiest regions. The industry is also
working towards solutions that optimise satellite capacity
so yachts can do more with what they have, regardless of
frequency band or specific hardware technologies. This
will be delivered by best-value, fully integrated solutions
that are scalable, technology agnostic and future proof.
We are also focusing on new equipment and designs, such
as flat panel antennas, for better efficiency and a smaller
footprint.
Which sector of the industry is the most
innovative and why?
There are several areas of innovation in this industry
so it’s hard to choose one specific sector, but certainly
innovation in yacht design is happening at a rapid pace.
So many components are considered – exterior, interior
and the on-board experience.
Visibly, the trend is to design yachts bigger, better
and with ‘design and technology firsts’, but media and
technology have become integral to design and the
IoT continues to evolve, making the possibilities for an
improved experience almost limitless. Customisation in
overall design – parallels with technology customisation
– involves ensuring the communications are scaled to
each vessel, while meeting functional and performance
requirements at any time and place. Captains and ETOs
need easy-to-use tools to fully manage all on-board
systems for the best experience, no matter the yacht’s
design, owner demands or location.
“High-throughput satellite
(HTS) services – slated for
2016 – will offer much faster
speeds and higher throughput
in the busiest regions.”
How have stuttering new build and
resale markets impacted MTN’s business
activities?
They have had a relatively minor impact on MTN’s
business because demand from existing customers
surpasses the growth from new builds and resales. The
growing demand for additional capacity has prompted
us to push the innovation envelope further, to support
continued growth from existing clients and be ready
to meet efficiently the needs of larger new builds
when they are ready. We have continued on a steady
growth path due to yachting’s insatiable appetite for
communications services.
How much potential does the much-
lauded Asian market really hold for
the superyacht industry?
It has a lot of potential to be a fast-growing market
from high-wealth, tech-savvy individuals beginning
to enjoy a yachting lifestyle. We’re very excited about
this new market and the demographic of young
professionals – aged 30-45 – who were raised on
technology and have a huge appetite for high-speed
connectivity.

5. The Superyacht
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48 ISSUE 164
Derik Wagner interview
Are individual suppliers and service providers
able to play a role in the generation of new
business for the industry? Can the supply
chain – to use a broad term for the myriad
suppliers and service providers who make
up the industry – contribute to bringing new
clients into yachting in any way? Can the
quality of product or service be a powerful
advocacy tool for the entire industry?
Yes they can, in the sense that high quality, professionalism
and white-glove customer support are critical to the
reputation of the industry. Being a very word-of-mouth
industry, it is imperative for each link in the supply chain to
strive for a stellar quality reputation.
Yachting is a lifestyle that the entire supply chain needs to
embrace and respect through an extremely high work ethic.
The highly technical nature of our particular service area
makes education critical. We will continue to improve our
ability to disseminate information in order to educate the
industry, including owners, end-users and crew.
Do you continue to explore new markets,
or has the primary focus returned to
traditional territories because of the
current economic climate?
MTN’s approach is to strengthen our core business and
explore new opportunities for growth in these market
segments. We do continually look to develop technological
solutions that can be utilised effectively across our core
maritime market segments – yachts, cruise liners, ferries, and
oil and gas.
We have been able to maintain steady growth in the current
economic climate because the demand for broadband
communications at sea continues to skyrocket.
From a territorial perspective, we do maintain a laser
focus on the Mediterranean and Caribbean regions and the
seasonal nature of vessel concentrations there. Lately, we’ve
seen a rising demand in the Middle East and Asia Pacific, so
we need to pay attention and meet the demand there as well.
But providing communications to yachts has always been a
global business that continues to thrive, with more vessels
being built and expanding global itineraries.
“High quality, professionalism
and white-glove customer
support are critical to the
reputation of the industry. Being
a very word-of-mouth industry, it
is imperative for each link in the
supply chain to strive for a stellar
quality reputation.”
The satcoms market has been derided
at times for its ‘exorbitant’ costs.
Is this a fair assessment and how is
MTN addressing it?
It is fair to a point – satellite services are expensive
compared with land networks, due to many factors
inherent to the required technology and the relatively
small number of users helping to defray the large
infrastructure costs.
We continuously explore ways to improve satellite
bandwidth efficiency, including optimising each link in
the end-to-end communications chain. The acquisition
of MTN by EMC positions us to achieve better
economies of scale and greater purchasing discounts
when procuring capacity from satellite operators.
“Satellite services are
expensive compared with
land networks, due to many
factors inherent to the
required technology and the
relatively small number of
users helping to defray the
large infrastructure costs.”

6. The Superyacht
REPORT Derik Wagner interview
Are there any current projects or
initiatives at MTN that you would like
to bring to the industry’s attention?
We are rounding out our VSAT portfolio with a suite of
integrated solutions that provide more bandwidth, with
easily manageable and controllable systems and high
flexibility to adapt to yachting seasonality, including
Maestro. So captains/ETOs and yacht managers can
really understand how bandwidth is being used and
optimise each MB down to specific users and devices.
We offer hybrid solutions comprising ‘always-on’
capacity, augmented by flexible consumption-based
data plans, including UltraBurst – on-demand,
high-throughput services with the highest speeds
commercially available, giving
flexibility and control to yachts
streaming bandwidth-hungry
content.
In response to frequent
customer requests, we are
developing new services in the
burgeoning area of on-demand
media and entertainment
services, while cellular data
services (3G/4G/LTE) offer a
cost-effective complement to
VSAT when near shore. Finally,
HTS services beginning in 2016
will deliver faster speeds and
higher throughput for yachts
operating in the Caribbean
followed by the Mediterranean
in 2017.
Finally, what is the
outlook for both MTN
and the superyacht
industry as a whole in
the future?
MTN is more than a bandwidth
provider – we deliver complete
solutions. We bring proven
expertise, ideas and innovation
from our success in other
maritime sectors to the yacht
market. We will continue our
pursuit to educate the industry
in this very specialised arena
and this is what makes our
job so exciting – the ability to
satisfy our most demanding
customers while providing
tools and information to help
captains and ETOs make
decisions and fulfil their day-to-
day responsibilities.
The industry as a whole continues to grow, and provide
higher levels of service in this luxury market. Our role
as the leading service provider, and member of the
International Superyacht Society, is to set the bar for service
and professionalism so that we exceed owners’ demands
and attract new owners. Moving forward, the yachting
industry will continue to grow, but only as long as we’re able
to deliver the lifestyle owners and guests expect.
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