ITC Global: New Technologies and New Frontiers
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1 An Interview with Ian Dawkins, V.P. Network Services at Panasonic and CEO, ITC Global ITC Global: New Technologies and New Frontiers A lot is happening at Panasonic Avionics. On February 2017 their management changed with Hideo Nikano, deputy CEO of Panasonic Avionics, succeeding Paul Margis as CEO and lately, the company has been involved in significant upgrades of technology, including implementation of Extreme HTS satellites, development of an advanced mobility capable modem in partnership with Newtec and a deal with Ericsson to implement their 5G technology when it becomes available. When combined with these technological advances and Panasonic Avionics' existing HTS satellite network, their capability to deliver live sports and news content and their extensive library of video entertainment, their ITC subsidiary is primed for expansion beyond its traditional oil and gas and mining markets. To find out just where ITC is headed in terms of new markets and technologies, we met with Ian Dawkins, CEO ITC Global and VP, Network Operations, Panasonic Avionics Corporation. SMW: Given the recent changes in Panasonic management and the new technologies being implemented, can you tell us how Panasonic?s objectives have evolved, and whether there have been any changes in strategic direction at ITC as a result? ID: I?ve now been with the organization for a year, having come on board last April, and I can tell you that I discovered very early on that we have a strong team of regional leaders and decision makers across our organization that do an outstanding job of representing the needs of our customers, and of driving forward progress in the business. 20
2 We?re still very much focused on developing the right strategic partnerships to expand our network road map based on customer needs, so that hasn?t changed. From an ITC Global perspective, we?re really working to fully leverage our technological capabilities and partners to deliver highly reliable communications to both current customers and new market segments. It?s about ensuring we have the right focus and resources to deliver for our existing clients and partners, while also working to penetrate high-value adjacent markets that need Panasonic solutions and services. SMW: Panasonic has acquired ITC Global, and they are putting together a very interesting combination of new technologies including Extreme High Throughout Satellites, 5G capability with Ericsson and a new high-speed modem developed by Newtec. Do you expect that these initiatives will have a significant impact on ITC?s oilfield and mining business in the future? ID: We are planning to add Extreme High Throughput Satellite (XTS TM ) payloads in the early part of the 2020s. These satellite payloads are an evolution on current HTS satellites. They have smaller spot beams and high capacity to better serve dense traffic regions, but they also enable backward compatibility with current antennas. XTS capabilities will give Panasonic and ITC Global new technology to support our customers and will possibly include optical components, gateways in Q- and V-band, or even lasers. In addition, the Newtec high-throughput modem will have a significant impact on all of our customer sets, as it is introduced in a very methodical, phased approach. This high-bandwidth technology will be critical for mobility, as many current legacy modem platforms cannot keep pace with satellite network innovations to fully support HTS and XTS. 22
3 23 The new modem platform is starting to support specific aero customers who need to access more than 100 Mbps into a single site. For ITC Global?s verticals - oilfield, maritime and mining - this increased throughput will be valuable once the network improvements have been implemented. One of my colleagues recently noted that implementing this technology would be similar to the cellphone market upgrading from 2G to 4G. We really believe it will make a huge impact for our customers. One more technology item that you mentioned, 5G, will become increasingly important. In 2016, Panasonic joined with Ericsson to support innovative energy-as-a-service capabilities that will use the Internet of Things and big data analytics to make networks smarter and more efficient to monitor and maintain energy infrastructure. SMW: I understand that Panasonic is going to reduce its commitment for ultra HTS satellite capacity from three to two payloads and is going to reserve capital for investment in LEOs. In terms of advantages of LEOs, the lower latencies offered by LEOs are especially attractive to oil companies seeking to run latency sensitive applications over satellite. Is that the principal advantage driving the shift to LEOs or are there others? Will LEOs
4 25 ultimately replace GEOs in the oilfield? ID: As mentioned, we?re looking way beyond the immediate term as we consider our customers?needs. So, of course, we are interested in what LEOs have to offer, and our business model is such that we are not in a position to need to make any quick decisions. While LEOs may have advantages for some of our customer sets, these systems also come with compromises that require consideration before we can decide on the optimal HTS solution to fulfill a customer's application. Because both Medium Earth Orbit and LEO satellites travel overhead at all times, instead of tracking with a fixed point on Earth as GEO satellites do, providing constant coverage requires a constellation of several satellites. This means that a customer would have to purchase and maintain two antennas to track the satellites across the sky and?handoff?to the next satellite as it travels overhead. The impact of additional costs and coverage changes must be thoroughly evaluated before we consider implementing this new technology. We are still committed to geostationary satellites and the strong advantages that they provide. As the new low earth orbit systems take shape and start to be introduced, we are watching very carefully to look for the value they can offer to make our network stronger. SMW: To date, Panasonic has deployed Ku-Band services exclusively in aero and oilfield markets. What is the future of Ka-Band in oilfield considering its susceptibility to rain fade? If Panasonic does move to LEOs, will the company consider the use of Ka-Band LEOs or remain exclusively with Ku-Band? ID: First, let me clarify Panasonic?s focus on Ku-band and Ka-band. Obviously our network is Ku-based. We?ve done our research and believe very strongly in Ku-band benefits and capabilities in meeting the diverse needs of our customers. That said, we certainly will leverage Ka- as well as C-band when they
5 meet a customer?s specific requirements. This is true for both Panasonic and ITC Global. Our goal is to provide ample bandwidth for the lowest cost per bit while meeting the requirements that our customers specify. ITC Global helps customers to choose the right? not necessarily the trendiest? technologies for their critical, remote business operations. Panasonic and ITC Global continue to find that, in most cases, HTS Ku-band is better suited for our customers who require high-availability solutions. SMW: Considering the importance of flat panel antenna arrays to widespread deployment of LEOs, what is Panasonic doing in this area after the termination of the Kymeta deal? ID: The Panasonic team is working to identify alternative flat-panel technology options for the needs of our expanding VSAT network and customer requirements. We know that antennas are evolving to become larger and flatter, using increasingly improved chips. Accessibility to these antennas is coming closer, but the costs need to competitive with mechanically steerable antennas, although value added features including lower maintenance costs, easy of installation, ability to access two satellites simultaneously (in the case of LEOs and MEOs) could justify a premium price. SMW: Based on its plan to purchase ten thousand flat panel antennas from Kymeta, it appeared that Panasonic was on the verge of a major initiative to penetrate maritime markets. With the cancellation of the deal, will Panasonic still pursue maritime markets and, if so, which markets? What about Cruise? Are you planning or are you engaged in a significant initiative in 27
6 that market? Did Panasonic bid on the Carnival contract? ID: As I mentioned, Panasonic is continuing to consider various antenna technologies to support a number of initiatives in both the near and long-term. In terms of the maritime sector, ITC Global has been delivering satellite network services to mostly maritime customers for almost a decade, both directly and through channel partners. This segment is a natural fit for our business, especially through strategic partners, now that ITC Global is part of Panasonic. We recently announced a strategic channel partnership with AST and PCCW to further penetrate niche segments of the maritime sector. With Panasonic, we?ve made significant capital project investments, including HTS, that, when shared with partners in niche segments, can support users and enable these small providers with valuable new technology services. We see changes in the maritime business that put us in a position to pick up new opportunities and further expand our services to this growing vertical. The cruise sector continues to be a very interesting market with exciting potential for us, and we will shortly announce a major cruise contract. Of course, the consumer drives the demand, and so cruise customers that rely on satellite are more eager than ever to stay one step ahead of their competition, so Panasonic is committed to leveraging all of our advanced new technology for 28
7 the cruise sector. This list includes capabilities such as dynamic bandwidth allocation and high-throughput, smart satellite beam switching to support advanced operational efficiency and scalability. For example, if you are on the Panasonic network, we use automatic beam switching (ABS). But our ABS technology is based on a performance score of all beams available at a customer?s location. The way we?ve designed and deployed things, the VSAT doesn?t wait until the signal strength degrades into substandard performance before attempting to acquire another satellite and re-stabilize. It may seem small, but it makes a big difference for our customers. Additionally, our coverage is delivered by region, not beam. Sometimes you see a footprint and think it looks pretty good, only to find the provider actually only has one beam covering a key region. Our network is made up of multiple beams across every region that can land at several teleports. Between the power of our network and this kind of redundancy, customers are assured of high availability. This is true not just within maritime, but energy and enterprise verticals as well. Then there?s the content side. Panasonic has extensive licensing agreements for its aero business and we are working to build out our libraries for other markets. For example, ITC Global is beginning to implement a new Video On Demand service that our remote offshore operators are requesting. With a library of more than 100 top Hollywood movies and the latest current television programs available, our Crew LIVE users will now have access to added entertainment options. Consider our capabilities to deliver video streaming for live event feeds, such as major sporting events. For 30
8 31 example, we provided a custom feed of the Rio Summer Olympics - in 6 weeks, we were able to connect 2 cruise ships to broadcast 200 Hours of Olympic coverage in near-hd quality. The feed was available to staterooms and large format public displays. In this instance, we provided all the onboard equipment with the service. Panasonic has also had some other exciting trials in cruise, delivering special TV services and audiovisual technology to several cruise ship partners. We also provide extensive outdoor LED technology and projector mapping? kind of like a rolling screen system? for multiple cruise brands. These are just some of the ways that we?re meeting consumer demand for onboard connectivity in support of cruise operators, and there is definitely more to come. I think it?s fair to say that our maritime business exemplifies the value and success of Panasonic?s acquisition of ITC Global. We have taken two great businesses in their own right, leveraged each one?s strengths from the start, and continue to build out capabilities that enhance new layers of the market. SMW: I understand Panasonic was slated to sell bandwidth to E3 systems. What is the status of this initiative? Will Panasonic excess bandwidth to other maritime or oilfield VSAT integrators? ID: This relates to something I mentioned about partnering with providers in niche markets. The Channels Program has been a part of ITC Global?s core business for many years and it benefits both parties involved. Channel partners give ITC Global entrance into markets and regions where we do not already operate, or where specific domain expertise is required. ITC Global partners can more easily deploy connectivity to new customer sets using our network, without the cost and expertise needed for developing a global network like we have already created. Our channels program will certainly continue to be core to our strategic plans going forward. We have potential partners regularly approaching us to leverage our HTS platform for their customer needs.
9 SMW: There has been a lot of talk about the?digital Oilfield.? We are witnessing huge advancements in satellite technology that are resulting in lower cost and much higher speed connectivity. I understand your 5G partnership with Ericsson is about enabling IoT applications. How will IoT and high-speed satellite connectivity affect drilling operations in the future? What new applications will be possible? ID: Satcom will continue to expand the role it plays for the reinvigorated oil and gas market. Energy companies understand that data analysis can have a big impact on their business. Customers look to ITC Global for counsel on what technologies will be most impactful for immediate and long-term business operations. One segment where we see great potential in leveraging broader Panasonic capabilities and technology innovations is delivery of real-time video data analytics for efficient offshore operations. For example, we are working to employ Panasonic camera technologies to support video streams of the water around an unmanned platform so the operator can continuously analyze it for signs of an oil spill. Ship operators can monitor various, key parameters and investigate issues that are identified by the monitoring tools. For instance, vibration alerts can indicate issues with equipment performance and provide an early warning of failures. By downloading equipment data, vessel operators can also analyze performance trends and the ability of crew to navigate ships effectively. Data can be fed back to shore managers to reduce the risk of costly incidents and can also be used for training. As energy players re-establish their investment plans for the coming years, improving operations and maintenance will be central. We believe that ITC Global's network and industry expertise when combined, is extremely valuable to customers. 33
10 About Ian Dawkins: Ian Dawkins joined Panasonic SMW: Avionics There is a lot of talk regarding Corporation continued as Vice consolidation of VSAT President providers of Network in oilfield and maritime Operations markets. in April Do 2017 you believe the where he consolidation has been has run its course, or do responsible you see for driving further consolidation coming? engineering and customer support ID: for The the market company?s is changing radically as global communications connectivity becomes increasingly network. commoditized. Market conditions in the energy and mining sectors were at Ian took some on a of strategic their lowest points in years. dual role, The also competition serving as from entrenched CEO for competitors ITC Global, which desperate to maintain provides market critical share, along with new entrants communications anxious to to gain the share, drove pricing to energy, record enterprise lows and and competitive pressure to maritime record markets, highs. and We are seeing increased became interest a subsidiary from of new and past customers Panasonic who Avionics are realizing in you get what you pay for so to speak. In his CEO We capacity, are watching Ian this, but we have drives the always strategic been a provider of more than direction just and connectivity. growth for the ITC Global organization. 34 Ian has held leadership roles in the Aviation and Industry consolidation will run its course and, we are using this period to strengthen our position. Panasonic, together with ITC Global, is committed to building new business across markets and maintaining, and even improving, customer satisfaction, no matter what is happening in the market overall. From an industry perspective, there is little doubt that further change is on the way, as I believe there is no facet of our industry that is not undergoing radical transformation. What emerges will be a new group of industry leaders, who are able to compete with tremendous scale and market dominance. We certainly aim to be one of those leaders. SMW: Thank you Ian. Given the enhanced capabilities at Panasonic and ITC, we'll be looking forward to covering you more in future editions. Ian Dawkins joined Panasonic Avionics Corporation as Vice President of Network Operations in April 2017 where he has been responsible for driving engineering and customer support for the company's global communications network. Ian took on a strategic dual role, also serving as CEO for ITC Global, which provides critical communication to the energy, enterprise and maritime markets, and became a subsidiary of Panasonic Avionics in As part of Panasonic s mobility communications business, ITC Global leverages Panasonic s HTS network to provide end-toend connectivity services to customers with remote operations.
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