2016 global narrow-band nano-satellite connectivity services technology innovation award

2016 Global Narrow-Band Nano-Satellite Connectivity Services

Technology Innovation Award

2016

GLOBAL NARROW-BANDNANO-SATELLITE CONNECTIVITY SERVICES

TECHNOLOGY INNOVATION AWARD

2016

BEST PRACTICES RESEARCH

© Frost & Sullivan 2016 1 “We Accelerate Growth”

Contents

Background and Company Performance ........................................................................ 2

Industry Challenges .............................................................................................. 2

Technology Attributes and Future Business Value ..................................................... 3

Conclusion........................................................................................................... 6

Significance of Technology Innovation .......................................................................... 7

Understanding Technology Innovation .......................................................................... 7

Key Benchmarking Criteria .................................................................................... 8

Technology Attributes ........................................................................................... 8

Future Business Value ........................................................................................... 8

The Intersection between 360-Degree Research and Best Practices Awards ....................... 9

Research Methodology .......................................................................................... 9

Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices ................................................................................................................. 10

About Frost & Sullivan .............................................................................................. 11



Background and Company Performance Industry Challenges

Lack of Reliable Connectivity Services in Remote Locations Large geographic sections of the world are still unconnected with fiber optic network, which has kept reliable connectivity services from reaching those regions. Even those remote locations with cellular services do not have it in a reliable format. Owing to this lack of a reliable communication layer, delivering essential services, including support during natural disasters and crisis situations, is challenging. The ideal solution will support the existing and incoming telecom operators to expand coverage and deliver reliable connectivity services with or without the customer having access to the existing cellular tower network. Lack of Reliable and Affordable Connectivity Service While satellite-based connectivity service is not new, major connectivity services are based on GEO satellites. These connectivity services do not have satellites moving in and out of coverage for any given location within their respective coverage areas. However, a satellite constellation-based connectivity service that can deliver its capability through existing downstream infrastructure, as well as directly to mobile/cellular devices, is yet to be realized in the consumer segment for connectivity services. The ideal solution will be a Low Earth Orbit (LEO)-based satellite constellation with reliable inter-connections that can deliver uninterrupted connectivity services irrespective of which satellite the user is in connection with. Utilizing small-satellite form factor will enable low-cost space asset realization that, in turn, will enable the financial feasibility of affordable connectivity services to remote locations in a reliable manner. Lack of Self-Sustainable Satellite Network for Consumer Segment Services Unlike GEO satellites, LEO-based constellations will have to overcome the challenge of high orbital velocities, increasingly erratic impact of variable gravity, and atmospheric drag [for altitudes of 500 km and below]. Such a scenario will render the LEO-based constellation systems unreliable in terms of uninterrupted connectivity over their coverage areas. While engaging a wide network of ground stations to continuously monitor satellites, the cost of establishing such a ground station network will cause a rise in the price of the service delivered. This will keep the cost of augmenting connectivity services increasingly prohibitive for uptake by the existing telecom operators and service providers. The ideal solution will be an automated, self-governing satellite management platform that will not only cover satellite-ground telemetry, but also inter-satellite connectivity for seamless connectivity services.



Technology Attributes and Future Business Value Industry Impact Sky and Space Global is working on a network of 150-200 nano-satellites to deliver narrow-band [S-band] connectivity services to telecom operators and services providers. In the communication domain, no business has ever done what Sky and Space Global is working on. So far, nano-satellites [satellites of 1-10 kg weight] have been used in research projects conducted by universities and, in recent years, by small-satellite operators in the earth-observation domain. Sky and Space Global will be the first small-satellite operator to deploy 3U nano-satellites to deliver augmenting and elementary connectivity services. Sky and Space Global’s services will be supporting telecom operators and service providers to expand their existing networks and deliver low-cost narrow-band connectivity services to locations yet to realize reliable connectivity for basic voice and text services. In this way, Sky and Space Global will be supporting the existing communication layers while also establishing a value chain of its own moving forward. Best Practices Examples: Sat-Space Africa (based out of Mauritius), an IP connectivity company providing satellite-based connectivity services, has agreed to use Sky and Space Global’s LEO narrowband connectivity service. This indicates early acceptance from existing service providers. Recently, Sky and Space Global signed a launch contract with Virgin Galactic, a launch capability developer focused on small-satellites. This shows the opportunities that Sky and Space Global is creating for fellow industry participants concerned with small-satellites. Sky and Space Global has contracted Indian Space Research Organization for launching its first set of 3 nano-satellites [3 Diamonds] on Polar Satellite Launch Vehicle. This indicates the company’s willingness to utilize globally available launch capabilities to establish its space assets on time. Product Impact Nano-satellites have so far been utilized in the earth observation domain by for-profit business models, mostly controlled by small-satellite operators, which, in itself, is a recently developed Space Mega Trend. No company other than Sky and Space Global is working on utilizing the nano-satellite form factor in the communications domain, especially in the civilian sector. This marks the company’s efforts as unique in the space industry. Apart from utilizing the nano-satellite form factor, Sky and Space Global is building a



proprietary network management software platform that will enable the satellite constellation to function autonomously, conducting both health management and essential transmission activities. The software platform will remove the need for a widespread network of ground stations for round-the-clock telemetry and replace it with an interconnected capability covering all the nano-satellites in the constellation. The nano-satellite constellation, while being unique, will be rendered distinctly unique with such automated network management capability. Scalability Sky and Space Global is planning to demonstrate its capability with an initial set of 3 nano-satellites called ‘3 Diamonds.’ The constellation is being designed such that soon after demonstrating the capability with 3 Diamonds, the constellation will be expanded to 50 nano-satellites. Further expansion will continue until the constellation includes 150-200 nano-satellites. The company is planning to align the expansion with its growing user base and uptake of its services by telecom operators and service providers. Future plans cover expansion to further latitudes beyond the 15-degree range. The fact that the system can be scaled indicates the inbuilt evolution-compatible system design that can accommodate size change to such large extent that it can even lead to a global connectivity system. Visionary Innovation Sky and Space Global acknowledges the fact that in the communication domain diverse bandwidths and communication protocols are in use and their technological sides go through regular revisions and replacements. To combat this systemic challenge, Sky and Space Global is designing its nano-satellite constellation such that replacements and addition of new nano-satellites will be done on an ongoing basis so that multiple generations of communication protocols will be supported by the constellation at any given time. This will keep the system protocol-agnostic and obsolescence-resistant, which is a direct indicator that the investment made by Sky and Space Global is in a fail-safe mode, guaranteed to deliver returns, irrespective of how the market forces impact the communication technology evolution. Such an attribute makes Sky and Space Global’s effort extremely forward looking and investor friendly and, given that the space capability is going to be realized at a relatively lower cost [in comparison with GEO systems], the impact will only be amplified. Application Diversity Apart from the capability being protocol-agnostic and obsolescence-resistant, Sky and Space Global’s nano-satellite constellation will be supporting a diverse set of service providers. Frost & Sullivan research indicates that in regions where excess S-band capacity is available, service providers are contemplating the development and delivery of S-band-based aeronautical data services. Further research indicates that downstream service providers and solution developers are working on delivering wireless connectivity



services to remote locations. This is in addition to existing telecom operators expanding their terrestrial networks, especially in developing economies. These developments, when compared to the efforts of Sky and Space Global, indicate that its service will add value to a host of other connectivity services under development. Also, because of an equatorial focus covering Africa, Latin America, and Asia-Pacific, Sky and Space Global’s services will help other industry participants deliver affordable connectivity services to remote locations in developing economies where affordability is a key factor in determining the success of any business model. This indicates that Sky and Space Global’s capabilities will not only cover diverse regions, but also segments of connectivity services targeting diverse customer groups. The fact that no other small-satellite company is doing this makes Sky and Space Global’s capabilities uniquely diverse. Financial Performance Sky and Space Global strongly believes in the idea that affordable connectivity is a basic human right in today’s world and is positioning its nano-satellite-based narrow-band services accordingly, so that end users in remote locations of developing economies have affordable access to basic voice and data services. From an augmentation perspective, the company will support the service providers as they improve service reliability and, from an essential service perspective, the company will support end users outside the coverage of the terrestrial network, seamlessly access an affordable connectivity service. To enable such ambitious core principles, Sky and Space Global has outsourced its major business components, such as manufacturing and launches, to existing industry participants, leveraging existing economies of scale and industry expertise. The core focus for reliability is built into the automated network management software platform that will control, manage, and monitor both satellite-to-ground and inter-satellite connectivity operations. This indicates that the business model will utilize existing industrial reliability for its key elements while developing its proprietary system for its differentiating attribute. From a system design perspective, the constellation will be LEO-based and; therefore, will have the orbits decaying automatically and the satellites will eventually burn out, establishing a self-cleaning orbital design for the system that will render the space mission design and operations self-sustainable. These functional and architectural attributes will render the business model self-sustainable, which will support the delivery of narrow band connectivity services at affordable prices. These inbuilt measures to maintain lean and sustainable operations will be required for long-term financial viability of the business model and Sky and Space Global is building itself from the inception phase.



Conclusion

Sky and Space Global is the first company to utilize nano-satellites in a constellation format in the communication domain. It is building a proprietary network management software platform that will enable the constellation to manage, monitor, and control itself in an automated fashion, which is a capability yet to be realized by a for-profit business model utilizing small-satellites in the communication domain. An inter-satellite connectivity-based constellation system focusing on the equatorial belt is an industry first and Sky and Space Global is doing it. The business is aiming to support existing and incoming telecom operators and service providers as they deliver affordable narrow-band services to remote locations that do not have access to reliable and affordable connectivity services. The company is also engaging fellow space industry participants in the small-satellite industry and is well on its way in establishing its core principle of affordable connectivity being a basic human right.

Because of its strong overall performance, Sky and Space Global is recognized with Frost & Sullivan’s 2016 Technology Innovation Award.

To find the Satellite Tool Kit (STK) simulations for Sky and Space Global operational scenario examples and SAS 2020 vision of an Equatorial constellation Check out Sky and Space Global's YouTube channel at: https://www.youtube.com/channel/UCRU4YCBI68NIqA-jyNfBbTg Simulations can be found at: https://www.youtube.com/watch?v=9j9GIC6TOK8 https://www.youtube.com/watch?v=6i39T2eUGrc

https://www.youtube.com/channel/UCRU4YCBI68NIqA-jyNfBbTg

https://www.youtube.com/watch?v=9j9GIC6TOK8

https://www.youtube.com/watch?v=6i39T2eUGrc



Significance of Technology Innovation Ultimately, growth in any organization depends upon finding new ways to excite the market, and upon maintaining a long-term commitment to innovation. At its core, technology innovation or any other type of innovation can only be sustained with leadership in three key areas: understanding demand, nurturing the brand, and differentiating from the competition.

Understanding Technology Innovation Technology innovation begins with a spark of creativity that is systematically pursued, developed, and commercialized. That spark can result from a successful partnership, a productive in-house innovation group, or the mind of a singular individual. Regardless of the source, the success of any new technology is ultimately determined by its innovativeness and its impact on the business as a whole.



Key Benchmarking Criteria

For the Technology Innovation Award, Frost & Sullivan analysts independently evaluated two key factors—Technology Attributes and Future Business Value—according to the criteria identified below.

Technology Attributes Criterion 1: Industry Impact Requirement: Technology enables the pursuit of groundbreaking new ideas, contributing to the betterment of the entire industry

Criterion 2: Product Impact Requirement: Specific technology helps enhance features and functionality of the entire product line for the company

Criterion 3: Scalability Requirement: Technology is scalable, enabling new generations of products over time, with increasing levels of quality and functionality

Criterion 4: Visionary Innovation Requirement: Specific new technology represents true innovation based on a deep understanding of future needs and applications

Criterion 5: Application Diversity Requirement: New technology serves multiple products, multiple applications, and multiple user environments

Future Business Value Criterion 1: Financial Performance Requirement: High potential for strong financial performance in terms of revenues, operating margins and other relevant financial metrics

Criterion 2: Customer Acquisition Requirement: Specific technology enables acquisition of new customers, even as it enhances value to current customers

Criterion 3: Technology Licensing Requirement: New technology displays great potential to be licensed across many sectors and applications, thereby driving incremental revenue streams

Criterion 4: Brand Loyalty Requirement: New technology enhances the company’s brand, creating and/or nurturing brand loyalty

Criterion 5: Human Capital Requirement: Customer impact is enhanced through the leverage of specific technology, translating into positive impact on employee morale and retention



The Intersection between 360-Degree Research and Best Practices Awards

Research Methodology Frost & Sullivan’s 360-degree research methodology represents the analytical rigor of our research process. It offers a 360-degree-view of industry challenges, trends, and issues by integrating all 7 of Frost & Sullivan's research methodologies. Too often, companies make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. The integration of these research disciplines into the 360-degree research methodology provides an evaluation platform for benchmarking industry players and for identifying those performing at best-in-class levels.

360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS



Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices

Frost & Sullivan Awards follow a 10-step process to evaluate award candidates and assess their fit with select best practice criteria. The reputation and integrity of the Awards are based on close adherence to this process.

STEP OBJECTIVE KEY ACTIVITIES OUTPUT

1 Monitor, target, and screen

Identify award recipient candidates from around the globe

• Conduct in-depth industry research

• Identify emerging sectors • Scan multiple geographies

Pipeline of candidates who potentially meet all best-practice criteria

2 Perform 360-degree research

Perform comprehensive, 360-degree research on all candidates in the pipeline

• Interview thought leaders and industry practitioners

• Assess candidates’ fit with best-practice criteria

• Rank all candidates

Matrix positioning all candidates’ performance relative to one another

3

Invite thought leadership in best practices

Perform in-depth examination of all candidates

• Confirm best-practice criteria • Examine eligibility of all

candidates • Identify any information gaps

Detailed profiles of all ranked candidates

4 Initiate research director review

Conduct an unbiased evaluation of all candidate profiles

• Brainstorm ranking options • Invite multiple perspectives

on candidates’ performance • Update candidate profiles

Final prioritization of all eligible candidates and companion best-practice positioning paper

5 Assemble panel of industry experts

Present findings to an expert panel of industry thought leaders

• Share findings • Strengthen cases for

candidate eligibility • Prioritize candidates

Refined list of prioritized award candidates

6 Conduct global industry review

Build consensus on award candidates’ eligibility

• Hold global team meeting to review all candidates

• Pressure-test fit with criteria • Confirm inclusion of all

eligible candidates

Final list of eligible award candidates, representing success stories worldwide

7 Perform quality check

Develop official award consideration materials

• Perform final performance benchmarking activities

• Write nominations • Perform quality review

High-quality, accurate, and creative presentation of nominees’ successes

8 Reconnect with panel of industry experts

Finalize the selection of the best-practice award recipient

• Review analysis with panel • Build consensus • Select winner

Decision on which company performs best against all best-practice criteria

9 Communicate recognition

Inform award recipient of award recognition

• Present award to the CEO • Inspire the organization for

continued success • Celebrate the recipient’s

performance

Announcement of award and plan for how recipient can use the award to enhance the brand

10 Take strategic action

Upon licensing, company may share award news with stakeholders and customers

• Coordinate media outreach • Design a marketing plan • Assess award’s role in future

strategic planning

Widespread awareness of recipient’s award status among investors, media personnel, and employees



About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 45 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

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2016 global narrow-band nano-satellite connectivity services technology innovation award

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