Patricio Baez, Kvh

7/28/2019 Patricio Baez, Kvh

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KVH Indust ries, Inc.

mini-VSAT BroadbandSM and

TracPhone V7 - The New Standard for

Maritime Satellite Communications

Digital Ship 2010

Patricio Baez, Vice President Americas Commercial Sales


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Agenda

Brief Introduction to KVH Brief company overview

Latest news Virtek

Communications Market Maritime Market

Demands and trends

Maritime 5Ss Bandwidth Options

Nordic Taker Video

Customer reviews mini-VSAT Overview

Technology

Coverage Maps

Value Added Services


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KVH Company Overview


4/41 KVH Indust ries, Inc.

An Introduction to KVH

Established in 1982

Financial strength and stability Publicly traded on Nasdaq: KVHI

Profitable with solid balance sheet

Well diversified in products, services, and markets

Guidance and Stabilization

Fiber optic gyro technology Defense and commercial applications

Mobile satellite systems, services, and

connectivity for customers on a global basis

Mobile satellite communications and entertainment for marine,land, and aeronautical applications



KVH and Virtek Join Forces

Virtek Communications AS joins KVH family

9 Least Cost Routing / switching to back-up

9 IP routing, firewall and VPN

9 E-mail server, relay server and client (POP3/SMTPMAP)

9Roaming crew accounts for e-mail and web (access)

9 File transfers and differential synchronization

9 Web optimization and caching



Government U.S. Coast Guard, U.S. Navy, U.S. Army Corps of Engineers,

Military Sealift Command, Saudi Arabian Navy, ColombianNavy, Korean Navy

Shipping/Tankers GroupeDesgagnes, Nordic Tankers (formerly Clipper Marine

Services A/S), Mowinckel, Othello Shipping, M.H. Simonsen

Oil & Gas

Petrobras, SeaCor, Telsa Offshore, Offshore Marine, AlaskaTanker, Shell, and Chevron

Offshore support and projects vessels RederijGroen, Storm Offshore

Fishing Trident Seafood, Fishermens Finest

Established Customer Base



Our view of Maritime Communications Market



Trends and Requirements

Today's telecom market place demands converged infrastructures

which are reliable, secure and available at all times.

Convergence of voice, data, and internet into IP based solutions.

Increased in IP based applications from basic TCP/IP to more

advanced communication solutions such as VoIP, IPTV, &

multimedia, amongst others.

Integrated multiple access platforms serving governments,corporations, enterprises and seamless worldwide.

Communications are now expanding into the mobility market

Aero

Maritime Rail and Transport

Military (Communications-on-the-move)

Communications Overview



Maritime Market

Increasing concern forcrew morale and welfare while on board

Increasing demand for an always-on broadband service

Support applications such as:

Communications applications(VoIP, e-mails, file sharing, web browsing, VPN connectivity, etc)

Vessels management applications(Real time troubleshooting, medical support cargo informationexchange)

Fleet management applications(Real time information exchange of routes, troubleshooting, andweather information)

Demand forflat-fee-per-month with a worldwide coverage

Continued interest forstore-and-forward and live video solutions


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Maritime Needs and Applications

Key Driving Applications

Communications and entertainment applications

E-mail, web browsing, VoIP calls, video streaming, IPTV

Remote and f ield applications

VPN office extensions, file transfers, video-conferencing,

and highly secured links for military applications

Operational applications Real time data sharing

Troubleshooting and route information

Medical support and information exchange

Need for IP-based services with flexibili ty and growth options

Seamless operation for regional and global deployments

Demand for highly reliable transmission security services


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Maritime Primary Challenges

Small Antennas Ultra small/affordable antennas

Adjacent satellite interference

Bandwidth Efficiencies Link budget challenges

Spectral density concerns

Security Concerns

Adversary monitoring

Transmission security

compliance

Mobility Management Automatic beam switching Stable, consistent and reliable network

ID of remote locations at all times

Seamless Coverage Seamless roaming and network

monitoring

Global coverage via multiple

beams Consistent IP Addressing worldwide

for easy migration


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Maritime5SS

Maritime Competitive Analysis on access technologies

Size C-Band VSAT Ku-Band VSAT FB 500 FB 250 Iridium OpenPort IridiumAntenna 2.4M 1.2 mts - 60cms 50cm 25cm 57cm X 23cm Handheld

Radome 3.8M 1.2 - 1.4M 1M 0.5M 57cm x 23cm Handheld

Weight 850kg 100-150kg 40-80kg 15-30kg 11kg Handheld

Speed

Shared IPFrom 256kbps to4Mbps / 512kbps

From 256kbps to18Mbps / 5Mbps

432Kbps(MAX)

284Kbps(MAX)

128Kbps(MAX)

N/A

Service

Pay-as-go NO NO YES YES YES YESWeb Unlimited Unlimited Usage based Usage based Usage based N/A

Dedicated IP CIR CIR Yes Yes N/A N/A

Spend

CPE $80000 - $60,000 $50,000 - $25,000 $17,000 base $11,000 base $5,000 base $2,000 base

Voice $0.25 / min $0.25 / min $1.30 / min $1.30 / min $0.70 / min $1.00/Min

Data$1,500 per month

and up

$1,000 per month

and up

$8 $13

Megabyte

$8 $13

Megabyte$5 $8 Megabyte N/A

Satisfaction

Overall

Inmarsat has set a high standardEnd-to-end design specificationLimited Quality due to capacity

constrains and high costs

Meets regulatory needs

Iridium must overcomeSystem reliabilitySatellite longevity

Funding and continuation of services

Need for continued VSAT educationand benefits of service

Seen as strong, reliable solution yetexepensive and large

Size,Speed,

Service,

Spend

and

Satisfaction


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Bandwidth Alternatives

VSAT Reliability

Flexibility

Service performance

Needs to overcome antennasize and cost

Inmarsat Fleet/FleetBroadband High standard

End-to-end design specification

Quality assurance

Meets regulatory needs

Iridium/OpenPort Must overcome system reliability,

satellite longevity, funding,and operations

mini-VSAT Broadband - the NEW market choice


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Nordic Tankers

N di T k


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Nordic Tankers

One of the largest Danish operators in tankerswith emphasis on product and chemical tankers

Owns, wholly or in part, 15 tankers

Operates about 60 chemical tankers Nordic Tankers handles commercial operation and the major

part of the technical management

Two vessel groups are providing technical

support/fleet management to the entire fleet Daily technical operation

Overall vessel maintenance

Inspections

Purchasing Dry dock planning and execution


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Nordic Video


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mini-VSAT Overview

TracPhone V7 & mini VSAT Broadband


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TracPhone V7 & mini-VSAT Broadband KVH integrated broadband solution

An end-to-end maritime satcom system and service for leisure,

commercial, and government vessels

Broadband service over Ku-band satellites Faster, lower-cost airtime

600+ active subscribers worldwide and growing Expecting to sell 1000th terminal in the

coming weeks

mini VSAT Global Coverage


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mini-VSAT Global Coverage

Only global multi-megabit network for ships and planes Seamless roaming from region to region

Totally automatic switchover between beams No hardware, modem, or software changes when moving among regions

This map depicts KVHs expectations for mini-VSAT Broadbands future coverage; actual coverage and availability may vary. For current, available coverage, visit www.minivsat.com.

Current Coverage Scheduled Coverage

mini VSAT in World Shipping Lanes


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mini-VSAT in World Shipping Lanes

This map depicts KVHs expectations for mini-VSAT Broadbands future coverage; actual coverage and availability may vary. For current, available coverage, visit www.minivsat.com.

Unrivaled and expanding global Ku-band broadband network

TracPhone V7 & mini-VSAT Broadband


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TracPhone V7 & mini-VSAT Broadband Util izing spread spectrum technology

Military technology enables spectrum efficiency and data rates

as fast as 2 Mbps

Compatible with smaller antennas

Easier to install and service 85% smaller by volume and 75% lighter than standard 1-meter

diameter VSAT antennas

Superior, affordable airt ime service

85% less expensive than competing marine airtime solutions

Multiple Voice over IP telephone lines with optimized service

Fast Consistent and Cutting Edge


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Fast, Consistent, and Cutting Edge

The mini-VSAT network - based on ViaSatsArcLight Code Reuse Multiple Access (CRMA)

spread spectrum technology Significantly reduces contention issues, transmission delays

and shared transmission bandwidth Spread spectrum technology immediately sends

data in bursts, constantly streaming data

Enjoy the fastest data rate available even whenmultiple users are transmitting

CRMA offers every user an unobstructed path forconsistent unimpeded data rates

ArcLight technology results in less

latency and contention compared toequally sized networks

Effective Bandwidth Management


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Effective Bandwidth Management

Fully compatible with powerfulmiddleware solutions

Ensure effective onboard

communications management

Allow corporate offices to manageeach vessels network remotely

Monitor every vessel in the fleeton one shore-based screen

Make each vessel an extension ofthe central office

mini-VSAT Benefits


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mini VSAT Benefits Reduce operational and regulatory compliance costs

Seamless operation for regional and global deployments Voyage planning and chart updates

Remote administrative and personnel management Remote support for IT and onboard equipment

Telemedicine and enhanced safety

Crew welfare and retention Sending immediate announcements of an exploration

discovery Real-time data sharing

Benefits of mini-VSAT Broadband


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Benefits of mini VSAT Broadband

Established, proven solution for the Marit ime,as well as, Oil and Gas market worldwide

First next-generation satcom system

Available today Proven commercial solution

Fully integrated communications solution

from a single provider Includes hardware, airtime, and a global support structure

Results in enhanced efficiency and reduced

operating costs

mini-VSAT Network Coverage


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mini VSAT Network Coverage

Unrivaled true broadband worldwide

What Customers Say


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What Customers Say

The recommendation for the V7 came from captains operating our vessels; they had heard about itfrom other captains. They are very pleased with the system, specifically as it pertains to the abilityto email photos for hard to find parts, providing weather reports to other fleets, and increaseddata transmission speeds for sending reports.

~ Christian Asay, Operations Manager, Trident SeafoodsReliable communication is essential to our business, so we found the low operating cost

and higher data capacity of the TracPhone V7 very attractive. The initial equipment costwas higher than what we paid for the LEO systems that were being replaced, which is

OK with us because the TracPhone V7 performs as advertised.~ Stephen Kemp, Resource Manager, Tesla

We chose to switch to mini-VSAT Broadband because it is a more affordable solution andalso offers us more advantages for support and crew retention. Plus, the antenna can

be installed in just one day.

~ Rolf Arne Herheim, Technical Director, DSD Shipping

What Industry Experts are Saying


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y p y g

An intriguing and technologically innovative new offering to the Maritime space comesfrom KVHthe mini-VSAT service is unique in many aspects and could become thede facto standard for delivery of marine VSAT services.

~ The New Battle For The Maritime Customer, Alan Gottl ieb,

SatMagazine.com

...the V7 Mini-VSAT by KVHmixes the most desirable aspects of Inmarsat maritimeservices (global coverage, seamless oceanic roaming, global distribution and support,all packaged in a small and affordable integrated terminal) but also includes additionaldesirability in the form of faster data speeds (in Ku band) at a cost hard to be

matched by its L-Band stable mate...

~ 10 Years of Satellite Communications Evolution, Piers

Cunningham, Digital Ship (SMM Edition)

In summary


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y

A robust, high-capacity, true globalmulti-megabit broadband network

Proven spread spectrum technology

A managed airtime network solution

Virtek CommBox and mini-VSAT Broadband

creates versatile end-to-end solution for powerful

communications solutions integration

24/7/365 technical support

Affordable, Predictable and Reliable


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Thank You


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Contact KVH

TracPhone V7 and mini-VSAT Broadband service

Americas Europe Asia

KVHIndustries,Inc. KVHEuropeA/S KVHSingapore

+14018473327 +4545160180 [email protected] [email protected] [email protected]


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Annex

Commercial-grade TracPhone V7


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Compact, commercial-grade hardware 60 cm antenna plus integrated modem and control unit

75% smaller than legacy 1.2 m VSAT

Reduced installation costs

Due to minimal size and weight, a crane is not needed No need to modify vessel superstructure

Easier to find the optimum antenna location

No need to connect to ships gyro

Installation can take place while under way Reduces vessel downtime

Value Added Crew Calling


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Enhanced Crew Calling solution

Includes dedicated Crew Calling Gateway

Three easy and flexible options Blank cards that the crew members can put money on by

calling KVH directly Pre-paid cards sold in $25 and $100 denominations that the

crew can recharge at any time by calling KVH

Pre-paid cards sold by the ships captain or purser with

no option to recharge via KVH Ship owners can make a 20% profit on all calling

cards they sell to their crew members

Value Added Cell Service


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Offshore Cell Phone Service

In partnership with On-Waves

Use ordinary CDMA and GSM cell phones onboardvessels using very little bandwidth

Small, lightweight equipment uses onboard picocellantennas

Ability for 2 and up to 7 simultaneous calls

For qualifying vessels, there are no monthly feesor any costs to the ship owner

Future Value-added Services


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Internet caf Software interface, measured in time or MBs

Weather charts Forecasts, surface pressure, wind speed/direction, fronts, sea

surface temperature, currents, ice information, wave height, gulfstream, swell condition, and storm information

Regulatory forms Singapore PANS (Pre-Arrival Notification of Security)

USCG e/NOAD (Electronic Notice of Arrival/Departure) WETREP (Western European Tanker Reporting System)

Ship locator Live vessel position tracking 24 x 7, request position report

while on-line, track vessel voyage, six months history on-line,position available by SMS

mini-VSAT for Aeronautics


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KVH Indust ries, Inc.This map depicts KVHs expectations for mini-VSAT Broadbands future coverage; actual coverage and availability may vary. For current, available coverage, visit www.minivsat.com.

Flights in progress

Number of fligh ts: 9287

mini-VSAT for Oil and Gas Industry


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KVH Indust ries, Inc.This map depicts KVHs expectations for mini-VSAT Broadbands future coverage; actual coverage and availability may vary. For current, available coverage, visit www.minivsat.com.

Current Coverage Scheduled CoverageMaritime oil & gas fields

mini-VSAT coverage for Brazil


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Ideally positioned to support Brazils O&G broadband

Internet and voice services needs

Agreement in place with Star One Supported via the Star One C-1 satellite

Expected to go l ive in the fall of 2010

Benefits of mini-VSAT Broadband


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miniVSATBroadband

CRMANetwork

TraditionalTDMANetworks

MoreEfficient

Transmissions

Bursttransmissionsenablemultiple

userstotransmitsimultaneouslyand

spreadsignalacrossentireavailable

bandwidthat

highest

speed

Signalstransmittedonlyatallotted

timeswithinefficienttimebuffers

betweentransmissions

NoContention

Worries

TDMAstylecontentioneliminatedno

delaysneededbetweentransmissions

andchannels

Timebuffersbetweentimeslots

requirescapacitytobefurtherdivided

intoinefficientchannels

Small,Powerful

AntennasMilitary

spread

spectrum

technology

designedforexceptionalmobile

reception/transmissionusingsmall

antennas

Landbased

technology

adapted

for

maritimeusewithcumbersome,

expensiveequipment

RobustNetwork

Capacity

Systemdesignedforglobalmaritime

applicationsusing

full

transponders

in

mostregions

Small,undercapitalizedservice

providersoften

deploy

limited

capacity

toclaimglobalcoverage

EndtoEnd

Solution

Compact24inchantennaandfully

integratedmodem/antennacontrolunit

designedto

work

with

global

mini

VSAT

Broadbandservice

Integratorscombine1mantennas,

modems,otherequipmentfrom

multiplemanufacturers,

and

services

fromdifferentproviders

CRMA Spread Spectrum


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CRMA spreads traditional carrier to 20x the unspread bandwidth Reuses bandwidth, transmitting 15 carriers with BW = 30.7 MHz simultaneously in a single

transponder

Lower power spectral density reduces interference problems that may occur with smallantennas with wide beam widths

Documents

Patricio Baez, Kvh