Growing the Government and Military COTM Market: Easier Said Than Done

The beginning of the year saw many announcements by service and network providers, equipment manufacturers and operators increasing their presence in the broadband mobile satellite services market, stating their belief that the vision known as communications-on-the-move (COTM) will be a big market in the coming years. 

Government and military thirst for broadband connectivity while moving on land, at sea or in the air is increasing thanks to this vision (and associated stringent requirements) spreading globally. Sharing information in real-time over communication networks creates a new shift in demand for voice, data and video, all melded together and delivered at ever higher speeds and driving established needs for satellite networks that provide fixed services.  It is complex and funnels a host of highly technical procedures and stringent regulations and requirements into an integrated end-to-end service.  Users require better bandwidth management, specific coverage, nimble and flexible allocation of capacity, highly accurate pointing mechanisms (due to differing spacecraft separation regulations around the world), high availability and lightweight hardware using less space with sufficient power to close the link in all kinds of weather conditions.  All of this is required at the lowest possible cost and (almost as important) as soon as possible.

Well, as the old adage goes: easier said than done.

Small But Growing Marketplace

With a somewhat unsettled track record in the government and military satellite communications sector, COTM technology has not found its market yet even if it has been touted as the next big thing for the last ten years.  There is definitely demand within the sector, but many restraints are still blocking the road to further success.  As more budgets are allocated to fielding these systems, the market is lingering on an overall installed base in the thousands of in-service units but with a growing following served by a larger number of available solutions. Fortunately for the vendors, service revenues are commensurate with the hurdles and tribulations of establishing this market.

While the diversity of frequency is helping, the physics of COTM is such that more power and bandwidth to generate the same speeds make solutions in higher frequency bands such as X-band and Ka-band more palatable for selected users. Less prone to interference, commercial X-band solutions are now showing healthy take-up rates.  A couple of years ago, CapRock Communications announced an agreement to provide X-band for government clients.  Since then, it has won two multi-million dollar contracts from U.S. Government agencies to provide over 200 MHz of commercial X-band services such as those offered by X-TAR LLC, which has seen the number of military units deployed over Africa and the Middle East grow steadily.

NATO Countries Make It Move

With NATO and Allied nations growing their demand for COTM and smaller terminals, there has been a trickle-down effect.  Back in 2006, Spain’s commercial X-band satellite operator Hisdesat demonstrated and trialed COTM equipment (that was later deployed) in Afghanistan for the Ministry of Defense of Spain.  This was well ahead of the U.S. troops in the same region and was a sign of things to come as more equipment was tested and fielded with innovative solutions.  As an example, iDirect last summer tested a satellite router that allows a soldier to carry it in backpack or in a moving vehicle for COTM. The router weighs less than 2 lbs (900 grams) and can direct IP-traffic up to 156 Mbps up and 6.5 Mbps down to the user.

We can see then how the acquisition of Raysat Antenna Systems by Gilat Satellite Networks in mid-March of this year is a move that fits at the core strategy of a number of players to address defense and security markets for mobile users in the field.  Building on its phased array technology for a land-mobile platform, Raysat is a perfect example of how difficult it has been to please a very demanding set of customers.  It struggled in the past with FCC regulations, only to later find that most FSS satellite operators consider in-vehicle broadband Internet an afterthought in their operational planning.  That was then.  This is now.

From Bottom to Top

With flat-panel antennas now showing a key advantage, low profile lightweight equipment is finding a good fit for both land and airborne platforms.  There is also a movement by many players to enter the fray and cover as much ground, ocean or air as possible.  Starling Advanced Communications last year re-purposed its aeronautical Ku-band satellite systems for the car market.  A month ago, Gilat announced a commercial contract to provide Kazakhstan’s national railway with a broadband connectivity solution for its trains with Orbit Technology Group equipment.  Already involved with Petrobras of Brazil, they are only missing the link to aircraft to cover their bets.

And it’s up in the air that another recent entrant in the COTM business, Tachyon Networks, found a new niche for its future.  Already strong in ground-based broadband satellite networks, they received a large contract to supply bandwidth to airplanes using a Viasat platform offering 2 Mbps to 18 inch antennas.

UAVs Have It

After having secured capacity on the inclined orbit IS-24 satellite (formerly Amos 1), which still has 4 to 5 years left of fuel onboard, Tachyon is using the ideal coverage of the spacecraft to propose seamless services that integrate protocol and modems of various manufacturers to a variety of aircraft. The flight test underway should help generate sustained interest in their network in a region where many U.S. and Allied aircraft (and eventually UAVs) will seek connectivity for surveillance to keep tabs on conflict zones.

UAVs have generated increasing interest from satellite operators since it is a high-bandwidth application that requires capacity that is almost second to none.  Even if government UAV users are buying satellite capacity on the spot, meaning at a higher price per MHz, UAVs are no longer a luxury and with better endurance than aircraft (12 hours per day at most today), they represent a very promising market for suppliers.

The larger vehicles with both in-theater and tactical-level roles that fly for hours and often for long duration missions are prime targets for large swaths of capacity and high-end hardware to address a strong demand from field troops in their fight against a more diffused threat environment.

Bottom Line

There is more competition in the COTM market with a higher number of products offered across the spectrum of frequencies with single- and multi-band COTM capabilities deployed. With operational applications for many markets requiring large amounts of bandwidth, and data rates above 2 Mbps to the user, COTM is a growth area for the government and mostly military satellite communications market, but there are still many issues to solve before it can reach its full potential.