www.Yahsat.ae
Satellite broadband in emerging markets
VSAT Conference
London, 16-18 September 2015
Antonio Bove, Director Product and Marketing
Yahsat
www.Yahsat.ae
Yahsat history
www.Yahsat.ae
Managed Solutions | Government Capacity
Home Solutions | Business Solutions | Transportable
Solutions
IP Trunking Solutions | Corporate Networking Capacity | Backhauling
capacity
Yahsat provides multipurpose satellite solutions for government
enterprise, broadcast customers use across Europe, Middle East, Africa,
Central and South West Asia
3
www.Yahsat.ae
Mubadala manages a multi-billion dollar portfolio of projects across a
variety of industry sectors.
The presence of Mubadala’s investment reaches the following sectors:
 Energy
 Aerospace
 Healthcare
 Real Estate
 Technology
 Infrastructure
 Services
4
www.Yahsat.ae
Who we are?
Number 1
provider of satellite broadband
services in Africa
World’s 8th largest
satellite operator
>30,000
Subscribers
23% Net Income annual growth
Will be covering 600
million people globally
Present in 140 countries
Over USD 300 Mn
in revenue
5
www.Yahsat.ae
Yahsat History and Key Milestones
20082007 2010 20112009 2012 20142013 20162015 2017
Satellite
Manufacturers
Selected
First
Commercial
Agreement
Signed
UAE Armed
Forces
Signed as
Anchor
Customer
YahLive
Launched
YahClick
Commercial
Broadband
Service
Launched
Awarded
Satellite
Operator Of
the Year, at
SATCOM
AFRICA
Formed JV
with SES to
Launch DTH
Broadcasting
Y1A Launched
Y1B Launched
>35 Service
Partners
Established
Al Yah 3
Commissioned
Expands Portfolio
with New “Pick &
Click” packages
Al Yah 3
Launch Target
Won Brazilian
landing rights
for Al Yah 3
6
www.Yahsat.ae
COMMERCIAL ENTITIES GOVERNMENT AUTHORITIES COMMUNITIES
Central Bank of Afghanistan UAE Armed Forces
Kenya E-health mini clinics
(36 commissioned to date)
National Identity Program of
Nigeria
Emirates Nuclear Energy Corp.
BBC broadcast hostage situation in
Kenya
Revenue Authority of
Uganda
Abu Dhabi Autonomous Systems
Investments
E-learning system and education on
the wheel e.g. Pakistan
Universal Service & Access Agency,
S. Africa
Ministry of Health, UAE
United Nations Children Fund, World
Food Program, UNOCHA, OHCHR
e.g. Yemen, Pakistan, Afghanistan
National Drilling Company, UAE MoD, Kingdom of Bahrain
Abu Dhabi Ship Building Lockheed Martin
Co-op & Agricultural
Credit Bank, Yemen
Atlas Elektronik
US Department of
Defense
Yahsat provides critical infrastructure to a variety
of organizations and connects communities
7
www.Yahsat.ae
How HTS will change our life
www.Yahsat.ae
HTS, capacity in excess?
Region
Supply
(’17, Gbps)
Demand
(’17, Gbps)
Demand CAGR
(’13-’17)
North America 635 164 23%
Latin America 3132
57 26%
Western Europe 92 32 43%
Central Europe 46 6 52%
Russia & C. Asia 61 11 123%
MENA 93 32 31%
S.S. Africa 67 25 141%
South Asia 40 10 45%
North East Asia 26 3 1%
China area 5 9 0%
South East Asia 43 13 22%
Oceania & Pacific 123 15 39%
0
200
400
600
800
1,000
1,200
1,400
1,600
2009 2011 2013 2015 2017 2019 2021 2023
CONTRIBUTION
TRUNKING/
BACKHAUL
BROADBAND
ACCESS
COMMITTED HTS
LEASES-UNUSED
ENTERPRISE
NETWORKS
Who will win the race
x11
www.Yahsat.ae
Contractor: Airbus &
Thales Alenia
Orbital Location: 52.5°E
Lifetime: 15 Years
Launcher: Ariane 5
Capacity/Payload:
C-band: 8 x 36MHz + 6 x
54MHz Transponders
Ku-band BSS: 25 x
33MHz Transponders
Ka-band Secured
Government
Contractor: Airbus &
Thales Alenia
Orbital Location: 47.5°E
Lifetime: 15 Years
Launcher: ILS-Proton
Capacity/Payload:
Ka-band Commercial:
25 x 110 MHz
Transponders (56 Spot
beams)
Ka-band Secured
Government
Contractor: Orbital ATK
Orbital Location: 20°W
Lifetime: 15 Years
Launcher: Arianespace
Capacity/Payload:
Ka-band Commercial:
58 Spot beams
Y1A Y1B AL YAH 3
Yahsat constellation
10
Launch 2016
www.Yahsat.ae
Decline in CAPEX per Gbps, space & ground segment, plus
economies of scale provide a price advantage for HTS
SPACE SEGMENT GROUND SEGMENT
 Frequency re-use technology
multiplies Gbps capacity per
satellite
 Reducing cost for HTS spacecraft
platforms from innovations
 Steady overall decline in CAPEX
per Gbps (e.g.~$1 Mn/Gbps for
Viasat-2)
 High density baseband architecture
lowers investment per Gbps
 “Managed” solutions where
multiple customers utilize a single
gateway
 Service platform synergies that
serve multiple customer segments/
applications simultaneously
 Reducing CPE prices make HTS
accessible for larger audience
11
The bigger the better, but …
it will not be only a price game!
www.Yahsat.ae
From legacy to new business paradigms
 Which VAS to select?
 Which product bundle makes most
sense?
 Make or Buy?
 How the end to end provisioning shall be
orchestrated?
 Which IT infrastructure is required to
address all segments?
 How the OSS/BSS shall be integrated
with ground segment to address vertical
markets?
12
MHz
Msps
Mbps
CIR
Best effort
VAS
From wholesale models
to wholebuy models
Market Segments
Complexity
How to maximize yield with the optimal product mix?
www.Yahsat.ae
Are we ready for that?
 So we want to do it?
 Do we have the means to do it?
 Do we have the skills to do it?
 Are we ready to fail?
 Are we ready to make experiments?
13
From simplicity to increased level of complexity
Reseller
Master
Distributor
DistributorDealer
PoS
New
competencies
Traffic
analytics
Open service
platforms (APIs)
New business
rule
Integrated
marketing
Customer
analytics
www.Yahsat.ae
Yahsat Current and Future HTS Ka-band Coverage
Y1B (47.5E)AY3 (20W)
Al Yah 3 extends Ka- band to 17 new markets plus tops-up key African
markets
~40 Gbps,
Planned
Launch
2016AY3 will cover
>95% of Brazil’s
population
AY3 Coverage Y1B Coverage Combined AY3 & Y1B Coverage
Yahsat covers
60% of Africa’s
population
~15 Gbps,
Currently in
Orbit
14
www.Yahsat.ae
Brazil Ka-band coverage on Al Yah 3
Al Yah 3 Coverage over Brazil
AY3 Ka-band coverage area
Large coverage reaching over 95%
of population
High availability and throughput,
even with small consumer terminals
In-country gateway with site
diversity
27 beams with contiguous coverage
(e.g. supports domestic air routes,
COTM)
Good elevation angles across all
beams
Targeted capacity per beam
(Max: 500MHz, Min 125 MHz)
Yahsat Advantages
15
www.Yahsat.ae
HTS Ka-band: Achieving solid results
 Highly attractive prices resulting from declining CAPEX
costs & greater economies of scale on ground segment
SERVICE PRICE
 Excellent resilience and link performance, even in
adverse weather conditions
AVAILABILITY &
PERFORMANCE
 High throughput and efficiency even on consumer
grade terminals (72cm – 120cm)
THROUGHPUT &
EFFICIENCY
 Advancements in technology & design providing
flexibility to serve wide variety of customer segments
simultaneously
SEGMENT
COMPATIBILITY
1
2
3
4
16
www.Yahsat.ae
Some more food for thoughts
www.Yahsat.ae
Compared to Europe, Africa’s traffic pattern shows a
delay in maturity of broadband in Africa
Source: Sandvine, Delta Partners analysis
38%
19%
16%
5%
9%
13%
Average
Fixed Internet Traffic Europe
(% of total traffic)
35%
29%
8%
6%
6%
16%
Average
Mobile Internet Traffic Africa
(% of total traffic)
Real-time
entertainment
Web Browsing
File Sharing
Market places
Web Browsing
Communications
File Sharing
Social Networking
Market places
Other
Social Networking
Other
www.Yahsat.ae
Mobile data prices in Africa vary widely per country, …but the
average PPGB is below most regions in the world
LTE
WiMax
Fixed
xDSL,
Fibre
VSAT
3G
Level of competition
• 61% population coverage of Safaricom (Sep’14)
• Aggressive price policies with liberalisation of
mobile market and introduction of new players
• Launch in Nairobi and Mombasa by Safaricom
• Safaricom required to share at least 30% of 4G
network capacity with competitors on a
commercial basis
• Strong competition from Avanti (very similar
pricing without FAP rule)
• Increasing number of ISPs offering VSAT
solutions
• New fibre roll-out by Safaricom (1,650km by
March’15)
• 70% of fixed BB customers subscribed to FTTx
• Government considering to reallocate
frequency in 2.6GHz band for wireless BB
services
• Main towns and cities covered by AccessKenya
Pricing benchmarks
(USD / GB)
Home
(1-4Mbps, 20GB)
4.37
Business
(3+ Mbps, 80GB)
0.48 NA4.44
Cheapest Average Cheapest Average
6.28 5.03 NANA
4.37 7.50 NA6.92
2.732 0.68 4.8214.37
7.10 3.34 6.8621.26
www.Yahsat.ae
Market Segmentation
Enterprise and
G&I
Government projects enabling USO initiatives —
health, school networks, community development,
local government administrations
 Oil and Gas Sector
 Construction Companies
 Governments and Institutions (G&I)
 Local and International NGOs
Consumers /
SoHo / SMEs
 Individual users in sub-urban and rural areas
(underserved or un-served)
 High income consumers (holiday houses)
 VIP customers with connectivity back-up needs
 SoHo and SMEs
 Cybercafés
20
www.Yahsat.ae
www.Yahsat.ae
Customer Demographics
NUMBER OF HOUSEHOLD
USERS
NUMBER OF BUSINESS
USERS
11
14
19
48
6
HOUSEHOLD OCCUPATION
Others Lower/ Middle Management
Top Management Self employed
Declined
68 32BUSINESS HOME
29
35
10
13
33 6
One or two users Three to five users 6 to 10 users
11-15 users 16 to 20 users 21 to 30 users
15
53
18
15
One user only Two or three users
Four to five users More than 5 users
22 6
38
52
HOUSEHOLD LSM
LSM 6 LSM 7 LSM 8 LSM 9 LSM 10
Mean = 8 Mean = 3
22
www.Yahsat.ae
Customer Demographics
17
54
28
1
LOCATION
Herat Kabul Kandahar Nangarhar
17
25
25
8
25
OCCUPATION
Lower Management Middle Management
Top Management Small business owner
93 7BUSINESS HOME
29
40
19
5 422
One or two users Three to five users 6 to 10 users
11-15 users 16 to 20 users 21 to 30 users
50
25
17
8
One user only Two or three users
Four to five users More than 5 users
NO. OF HOUSEHOLD USERSNO. OF BUSINESS USERS
Mean = 6 Mean = 3
23
www.Yahsat.ae
No pressure no diamonds!

VSAT Conference London, 16-18 September 2015 - Antonio Bove, Director Product and Marketing - Yahsat

  • 1.
    www.Yahsat.ae Satellite broadband inemerging markets VSAT Conference London, 16-18 September 2015 Antonio Bove, Director Product and Marketing Yahsat
  • 2.
  • 3.
    www.Yahsat.ae Managed Solutions |Government Capacity Home Solutions | Business Solutions | Transportable Solutions IP Trunking Solutions | Corporate Networking Capacity | Backhauling capacity Yahsat provides multipurpose satellite solutions for government enterprise, broadcast customers use across Europe, Middle East, Africa, Central and South West Asia 3
  • 4.
    www.Yahsat.ae Mubadala manages amulti-billion dollar portfolio of projects across a variety of industry sectors. The presence of Mubadala’s investment reaches the following sectors:  Energy  Aerospace  Healthcare  Real Estate  Technology  Infrastructure  Services 4
  • 5.
    www.Yahsat.ae Who we are? Number1 provider of satellite broadband services in Africa World’s 8th largest satellite operator >30,000 Subscribers 23% Net Income annual growth Will be covering 600 million people globally Present in 140 countries Over USD 300 Mn in revenue 5
  • 6.
    www.Yahsat.ae Yahsat History andKey Milestones 20082007 2010 20112009 2012 20142013 20162015 2017 Satellite Manufacturers Selected First Commercial Agreement Signed UAE Armed Forces Signed as Anchor Customer YahLive Launched YahClick Commercial Broadband Service Launched Awarded Satellite Operator Of the Year, at SATCOM AFRICA Formed JV with SES to Launch DTH Broadcasting Y1A Launched Y1B Launched >35 Service Partners Established Al Yah 3 Commissioned Expands Portfolio with New “Pick & Click” packages Al Yah 3 Launch Target Won Brazilian landing rights for Al Yah 3 6
  • 7.
    www.Yahsat.ae COMMERCIAL ENTITIES GOVERNMENTAUTHORITIES COMMUNITIES Central Bank of Afghanistan UAE Armed Forces Kenya E-health mini clinics (36 commissioned to date) National Identity Program of Nigeria Emirates Nuclear Energy Corp. BBC broadcast hostage situation in Kenya Revenue Authority of Uganda Abu Dhabi Autonomous Systems Investments E-learning system and education on the wheel e.g. Pakistan Universal Service & Access Agency, S. Africa Ministry of Health, UAE United Nations Children Fund, World Food Program, UNOCHA, OHCHR e.g. Yemen, Pakistan, Afghanistan National Drilling Company, UAE MoD, Kingdom of Bahrain Abu Dhabi Ship Building Lockheed Martin Co-op & Agricultural Credit Bank, Yemen Atlas Elektronik US Department of Defense Yahsat provides critical infrastructure to a variety of organizations and connects communities 7
  • 8.
  • 9.
    www.Yahsat.ae HTS, capacity inexcess? Region Supply (’17, Gbps) Demand (’17, Gbps) Demand CAGR (’13-’17) North America 635 164 23% Latin America 3132 57 26% Western Europe 92 32 43% Central Europe 46 6 52% Russia & C. Asia 61 11 123% MENA 93 32 31% S.S. Africa 67 25 141% South Asia 40 10 45% North East Asia 26 3 1% China area 5 9 0% South East Asia 43 13 22% Oceania & Pacific 123 15 39% 0 200 400 600 800 1,000 1,200 1,400 1,600 2009 2011 2013 2015 2017 2019 2021 2023 CONTRIBUTION TRUNKING/ BACKHAUL BROADBAND ACCESS COMMITTED HTS LEASES-UNUSED ENTERPRISE NETWORKS Who will win the race x11
  • 10.
    www.Yahsat.ae Contractor: Airbus & ThalesAlenia Orbital Location: 52.5°E Lifetime: 15 Years Launcher: Ariane 5 Capacity/Payload: C-band: 8 x 36MHz + 6 x 54MHz Transponders Ku-band BSS: 25 x 33MHz Transponders Ka-band Secured Government Contractor: Airbus & Thales Alenia Orbital Location: 47.5°E Lifetime: 15 Years Launcher: ILS-Proton Capacity/Payload: Ka-band Commercial: 25 x 110 MHz Transponders (56 Spot beams) Ka-band Secured Government Contractor: Orbital ATK Orbital Location: 20°W Lifetime: 15 Years Launcher: Arianespace Capacity/Payload: Ka-band Commercial: 58 Spot beams Y1A Y1B AL YAH 3 Yahsat constellation 10 Launch 2016
  • 11.
    www.Yahsat.ae Decline in CAPEXper Gbps, space & ground segment, plus economies of scale provide a price advantage for HTS SPACE SEGMENT GROUND SEGMENT  Frequency re-use technology multiplies Gbps capacity per satellite  Reducing cost for HTS spacecraft platforms from innovations  Steady overall decline in CAPEX per Gbps (e.g.~$1 Mn/Gbps for Viasat-2)  High density baseband architecture lowers investment per Gbps  “Managed” solutions where multiple customers utilize a single gateway  Service platform synergies that serve multiple customer segments/ applications simultaneously  Reducing CPE prices make HTS accessible for larger audience 11 The bigger the better, but … it will not be only a price game!
  • 12.
    www.Yahsat.ae From legacy tonew business paradigms  Which VAS to select?  Which product bundle makes most sense?  Make or Buy?  How the end to end provisioning shall be orchestrated?  Which IT infrastructure is required to address all segments?  How the OSS/BSS shall be integrated with ground segment to address vertical markets? 12 MHz Msps Mbps CIR Best effort VAS From wholesale models to wholebuy models Market Segments Complexity How to maximize yield with the optimal product mix?
  • 13.
    www.Yahsat.ae Are we readyfor that?  So we want to do it?  Do we have the means to do it?  Do we have the skills to do it?  Are we ready to fail?  Are we ready to make experiments? 13 From simplicity to increased level of complexity Reseller Master Distributor DistributorDealer PoS New competencies Traffic analytics Open service platforms (APIs) New business rule Integrated marketing Customer analytics
  • 14.
    www.Yahsat.ae Yahsat Current andFuture HTS Ka-band Coverage Y1B (47.5E)AY3 (20W) Al Yah 3 extends Ka- band to 17 new markets plus tops-up key African markets ~40 Gbps, Planned Launch 2016AY3 will cover >95% of Brazil’s population AY3 Coverage Y1B Coverage Combined AY3 & Y1B Coverage Yahsat covers 60% of Africa’s population ~15 Gbps, Currently in Orbit 14
  • 15.
    www.Yahsat.ae Brazil Ka-band coverageon Al Yah 3 Al Yah 3 Coverage over Brazil AY3 Ka-band coverage area Large coverage reaching over 95% of population High availability and throughput, even with small consumer terminals In-country gateway with site diversity 27 beams with contiguous coverage (e.g. supports domestic air routes, COTM) Good elevation angles across all beams Targeted capacity per beam (Max: 500MHz, Min 125 MHz) Yahsat Advantages 15
  • 16.
    www.Yahsat.ae HTS Ka-band: Achievingsolid results  Highly attractive prices resulting from declining CAPEX costs & greater economies of scale on ground segment SERVICE PRICE  Excellent resilience and link performance, even in adverse weather conditions AVAILABILITY & PERFORMANCE  High throughput and efficiency even on consumer grade terminals (72cm – 120cm) THROUGHPUT & EFFICIENCY  Advancements in technology & design providing flexibility to serve wide variety of customer segments simultaneously SEGMENT COMPATIBILITY 1 2 3 4 16
  • 17.
  • 18.
    www.Yahsat.ae Compared to Europe,Africa’s traffic pattern shows a delay in maturity of broadband in Africa Source: Sandvine, Delta Partners analysis 38% 19% 16% 5% 9% 13% Average Fixed Internet Traffic Europe (% of total traffic) 35% 29% 8% 6% 6% 16% Average Mobile Internet Traffic Africa (% of total traffic) Real-time entertainment Web Browsing File Sharing Market places Web Browsing Communications File Sharing Social Networking Market places Other Social Networking Other
  • 19.
    www.Yahsat.ae Mobile data pricesin Africa vary widely per country, …but the average PPGB is below most regions in the world LTE WiMax Fixed xDSL, Fibre VSAT 3G Level of competition • 61% population coverage of Safaricom (Sep’14) • Aggressive price policies with liberalisation of mobile market and introduction of new players • Launch in Nairobi and Mombasa by Safaricom • Safaricom required to share at least 30% of 4G network capacity with competitors on a commercial basis • Strong competition from Avanti (very similar pricing without FAP rule) • Increasing number of ISPs offering VSAT solutions • New fibre roll-out by Safaricom (1,650km by March’15) • 70% of fixed BB customers subscribed to FTTx • Government considering to reallocate frequency in 2.6GHz band for wireless BB services • Main towns and cities covered by AccessKenya Pricing benchmarks (USD / GB) Home (1-4Mbps, 20GB) 4.37 Business (3+ Mbps, 80GB) 0.48 NA4.44 Cheapest Average Cheapest Average 6.28 5.03 NANA 4.37 7.50 NA6.92 2.732 0.68 4.8214.37 7.10 3.34 6.8621.26
  • 20.
    www.Yahsat.ae Market Segmentation Enterprise and G&I Governmentprojects enabling USO initiatives — health, school networks, community development, local government administrations  Oil and Gas Sector  Construction Companies  Governments and Institutions (G&I)  Local and International NGOs Consumers / SoHo / SMEs  Individual users in sub-urban and rural areas (underserved or un-served)  High income consumers (holiday houses)  VIP customers with connectivity back-up needs  SoHo and SMEs  Cybercafés 20
  • 21.
  • 22.
    www.Yahsat.ae Customer Demographics NUMBER OFHOUSEHOLD USERS NUMBER OF BUSINESS USERS 11 14 19 48 6 HOUSEHOLD OCCUPATION Others Lower/ Middle Management Top Management Self employed Declined 68 32BUSINESS HOME 29 35 10 13 33 6 One or two users Three to five users 6 to 10 users 11-15 users 16 to 20 users 21 to 30 users 15 53 18 15 One user only Two or three users Four to five users More than 5 users 22 6 38 52 HOUSEHOLD LSM LSM 6 LSM 7 LSM 8 LSM 9 LSM 10 Mean = 8 Mean = 3 22
  • 23.
    www.Yahsat.ae Customer Demographics 17 54 28 1 LOCATION Herat KabulKandahar Nangarhar 17 25 25 8 25 OCCUPATION Lower Management Middle Management Top Management Small business owner 93 7BUSINESS HOME 29 40 19 5 422 One or two users Three to five users 6 to 10 users 11-15 users 16 to 20 users 21 to 30 users 50 25 17 8 One user only Two or three users Four to five users More than 5 users NO. OF HOUSEHOLD USERSNO. OF BUSINESS USERS Mean = 6 Mean = 3 23
  • 24.