IPSTAR Project This is SATTEL s next satellite project to be launched in 2004 and will cover Asia and Australia. The region is known for its fast-growing telecommunications business. The Company is currently serving customers in the region through its Thaicom 1A, Thaicom 2 and Thaicom 3 satellites and, in so doing, has acquired marketing expertise in these prime markets for the IPSTAR Broadband Satellite Project. The project will increase the Company s potential to compete more efficiently with ground telecommunications networks. SATTEL expects to be the first company to offer broadband satellite in the Asia-Pacific region. As the second largest satellite company in Asia, SATTEL saw the potential of a new generation of Internet Protocol (IP) satellites and set up a project called IPSTAR-1 to build the first satellite which can fully support telecommunications via IP. This move is aimed to meet the demand for high-speed broadband internet access in the future. Broadband internet access via satellite has long suffered from high cost, so the Company has developed IPSTAR technology to increase the capacity for efficient use of bandwidth, which reduces the service cost to a lower level than that of other satellites. IPSTAR will be the leader of this new generation of broadband satellites, serving as an Internet backbone for telecommunications via fiber optic networks for internet service providers, as well as serving broadband internet to individual consumers as an alternative to ADSL and cable modem. The Company has formed an alliance with a partner with expertise in technology in the US for its innovations and advanced digital encryption technology. These technologies are proprietary to the joint venture for building a satellite which will receive digital information through a broadband internet platform. To minimize risks, the new development will focus on increasing efficiency of tried and tested technology, and the IPSTAR satellite will be launched into geo-stationary orbit, which is widely approved today. IPSTAR-1 divides its service area/footprint into 94 beams (84 Spot beams, 3 Shaped beams, 7 Broadcast beams) with fixed footprints covering important locations in the Asia-Pacific region to minimize wastage on oceans and sparsely populated areas. Ku-Band transponders will transmit the last phase of the signal to customers, depending on the available technical equipment and cost effectiveness. Shin Satellite Public Company Limited 19
Laying the Foundations of A New Generation of Technology Technical Information of IPSTAR-1 Details Satellite Orbital Location Bandwidth Capacity Types of beams in service - Satellite in geostationary orbit - 12 years life service - 120 East - 40+ Gbps, using 75-120 cm. antenna dish - 20 times capacity of existing satellites - SPOT Beams: 84 beams - SHAPED Beams: 3 beams - BROADCAST Beams: 7 beams IPSTAR-1 has the capacity to transmit 40 Gigabytes per second (Gbps) while conventional satellites can transmit less than 3 Gbps. This high capacity is achieved by using the frequency repeatedly many times and modifying the bandwidth as needed through high capacity teleports or gateways. The teleports can increase or reduce signal intensity from one transponder to another, for example, they can increase the transponder intensity in case it is to be sent to areas affected by heavy rain. The key solution to this smart feature is the encryption and compression technology using high level mathematical formulas which enables 1 Hertz frequency to transmit 4 bits of data while existing satellite technology can transmit 1 bit per 1 Hertz. The increased capacity of this new generation satellite equals about 1,000 transponders. The IPSTAR Project is comprised of two main features: 1. The satellite 2. Ground equipment comprising: - End-user terminal and satellite modem - Terminal, Gateway, and ground network system. The Company has selected 18 locations for IPSTAR gateways in the Asia-Pacific region: 20 A n n u a l R e p o r t 2 0 0 3
Number City/Province Country 1 Delhi India 2 Bombay India 3 Pathum Thani Thailand 4 Beijing China PDR 5 Gwangchou China PDR 6 Jakarta Indonesia 7 Tokyo Japan 8 Kalgoorlie Australia 9 Broken Hill Australia 10 Shanghai China PDR 11 Seoul South Korea 12 Manila Philippines 13 Kuala Lumpur Malaysia 14 Taipei Taiwan 15 Hanoi Vietnam 16 Oakland New Zealand 11 Yangon Myanmar 18 Phnom Penh Cambodia The success of the project depends on the ability to manufacture and launch the satellite within a time frame, the success of the satellite launch, and the ability to attract new customers to the new satellite service. The Company has a business plan in place to support the above-mentioned factors: 1. The Company has selected one of the best satellite manufacturers in the world - Space System/Loral. The Company held regular meetings to monitor the progress of satellite manufacture and sent specialized engineers on site with the manufacturer, for close cooperation and to monitor the manufacturing process to ensure that it is progressing as scheduled. 2. The Company has acquired satellite insurance. The insurance policy will cover risk that could arise during the launch as well as the first 12 months in orbit. In addition, the Company also acquired insurance for a replacement rocket from the launcher in case of loss (Launch Risk Guarantee). 3. The Company has begun marketing activity for the IPSTAR satellite system through the soft launch of the First Generation of IPSTAR equipment, which is compatible with Ku-band on conventional satellites such as the Thaicoms or other satellites. This activity prepared a customer base for IPSTAR in the future. Shin Satellite Public Company Limited 21
Laying the Foundations of A New Generation of Technology Research and Development Presently the Company owns some crucial technologies through its subsidiaries in the US. Some technologies were already patented by the subsidiaries. To maximize service efficiency, the IPSTAR system was improved with new and crucial technologies: The Satellite Uses the same cellular system for frequency distribution as that used in cellular telephone networks. This system together with the new satellite antenna dish enables the IPSTAR satellite to use the bandwidth repeatedly, thus increasing the satellite s capacity to expand the bandwidth. Uses Dynamic Link Allocation (DLA) which optimizes the efficiency of transponder use even in adverse weather conditions. Gateway and User Terminal Uses new encryption and modulation technologies to increase capacity of transponders so that they can transmit less amplified signals. The satellite can then use smaller satellite antenna dishes and less power. The cost of user terminals can also be reduced. These new transponder technologies will provide the IPSTAR system with special abilities: Bandwidth can be allocated for optimum efficiency. Customers can jointly uses the bandwidth, which is appropriate for the provision asymmetric and bursty Internet service. Encryption can be altered to suit different weather conditions so that connectivity will be maintained despite adverse weather conditions. The Company also develops IPSTAR technologies constantly, especially those concerning the user terminal: 1. Hardware development. The Company cooperated with the designer to develop user terminal equipment that meets the customer s need in terms of price and capacity. The user terminal is now in its third generation. The first generation was launched as market and system tests, the second generation, which is in use now is an improved version of the first generation equinpment, while the third generation will uses ASIC (Application Specific Integrated Circuit) technology specially designed for IPSTAR to reduce production costs and to enhance new functional features. The third generation user terminal will be ready for service to customers in the third quarter of 2004. In addition, the Company developed a simplex user terminal for customers who do not have a lot of data to retransmit. The simplex user terminal will transmit signals via an ordinary telephone line and receive signals via IPSTAR satellite. 2. Software development. The Company considers software the heart and soul of the system, consequently, it cooperated with the user terminal designer to develop its own software for the terminal. This proprietary software is for controlling the device, for controlling the amount of data each user is transmitting or receiving, whenever there is more than one user on a terminal at a time, so as to ensure that each user can send and receive data without hurdles; and for easy and low-cost installation of the User Terminal. Since new applications are constantly developed, so the system has been designed and developed to support smooth software upgrades without problems from applications or new features. Softwares can be promptly upgraded directly via satellite, which makes for convenience, reliability and readiness to provide the customer with new services. 22 A n n u a l R e p o r t 2 0 0 3
Current Status & Progress IPSTAR-1 satellite manufacturing status update The IPSTAR-1 satellite is being built by Space System Loral, commencing Q3 2000. The satellite has so far completed the integration of its payload and bus systems to the main structure and also completed the reference performance test conducted in ambient temperatures. At the time of writing, the satellite was in the first phase of its thermal vacuum test to validate the performance under an in-orbit environment. Three of four antennas completed environmental and near field range tests whereas the last antenna is expected to go through the near field range test in early 2004. Regarding the launch compatibility, a Preliminary Mission Analysis Review was conducted with the launcher, Arianespace. The result shows that the launch service can support the delivery of the satellite to the designated orbit. IPSTAR ground systems status The IPSTAR ground system consists of IPSTAR gateways and IPSTAR user terminals. The IPSTAR gateways to be used with the IPSTAR-1 satellite are called Second Generation Gateways (SGGWs). The gateways are the performance-enhanced version of First Generation Gateways (FGGWs) which have been used to deploy initial IPSTAR services on conventional satellites for local markets and neighboring countries for a few years. There will be 18 IPSTAR SGGW sets installed in 14 Asia Pacific countries in order to roll out IPSTAR services over the region. Each gateway is comprised of Radio Frequency (RF), Headend (HE) and Network Management System (NMS) subsystems. The IPSTAR Ka-band RF subsystems are supplied by Andrew Corp of the USA. Similar to the First Generation ground system, IPSTAR s HE and NMS are provided by ECC in the USA and Norway s Nera Satcom, respectively. Suppliers have commenced delivery of gateway equipment in its initial configuration for installation. Service provisioning can be ready by the time the satellite is launched. The final gateway configuration will be expanded on site when needed. (Source: Shin Satellite Plc.) Shin Satellite Public Company Limited 23