KVH’s Mini-VSAT Broadband Ku- and C-band Coverage. Image credit: KVH Industries

[Satellite TODAY 08-13-13] KVH Industries, a provider of global high speed Internet, television and voice services via satellite, has more than doubled the capacity of its mini-VSAT Broadband network in the Asia-Pacific region.

The continuous global network upgrade involves deployment of Variable Coding, Spreading, and Modulation (VCSM) technology provided by ViaSat, KVH’s partner in the mini-VSAT broadband network. The Asia-Pacific expansion marks the fourth major capacity increase since late 2012, following upgrades in the Caribbean, EMEA and Brazilian regions.

“Increasing mini-VSAT broadband network capacity in the Asia-Pacific region is a key step in our strategy to provide mariners with the connectivity they need at sea,” explains Brent Bruun, executive vice president of KVH’s mobile broadband group. “This area is a major hub for commercial shipping and the vessels travelling there need affordable, fast, and convenient connections in order to optimize their operations.”

While future expansions have not been released, the Asia-Pacific expansion may not be the last for 2013, according to Bruun. “We are constantly monitoring the network and we’ll add bandwidth when required. We may very well need to add bandwidth between now and the end of the year to supplement the existing capacity,” said Bruun in an interview.

Earlier this year, KVH announced a four-part strategy for the mini-VSAT Broadband network, which was designed to bring an assortment of economical and convenient content services to mariners for the first time. The strategy came after KVH noticed many of the large files needed onboard vessels were not exclusive data files, but common content used by many different customers, such as electronic charts, weather forecasts, training courses, digital newspapers, television news and sports clips, music, and movies. Previously, when these large files were transmitted individually to ships, the satellite service costs were unaffordable. In addition, unlimited services typically had fair use policies limiting or blocking transmission of large files.

KVH set out to introduce a more cost-effective way to deliver content to vessels through its mini-VSAT Broadband network. The strategy, which includes enhancing mini-VSAT Broadband network capacity, introducing new TracPhone V-IP terminals with Integrated CommBox Modem (ICM), launching new IP-MobileCast content delivery service, and acquiring leading content provider Headland Media, accomplishes KVH’s intended  goal by taking advantage of additional network capacity via advanced multicasting technology.

The company leverages the readily available commercial fixed service satellite capacity covering the world’s oceans, provided by companies such as Intelsat, Eutelsat, SES, and SkyPerfect JSAT. Currently, the mini-VSAT Broadband network uses 17 leased transponders to cover the globe with a hybrid network including both C-band and Ku-band coverage. KVH’s 1 meter, dual-mode TracPhone V11 antenna seamlessly switches among C- and Ku-band frequencies as easily as the 60 cm TracPhone V7-IP antennas and 37 cm TracPhone V3 antennas switch among Ku-band satellites.

The success of the KVH’s mini-VSAT broadband network was also revealed in the company’s release of its second quarter revenue. Combined mini-VSAT Broadband airtime and TracPhone product revenues amounted to $17.2 million, up 17 percent compared to the same period in 2012. “Our mini-VSAT Broadband airtime service gross margin for the quarter continued to demonstrate the leverage of our business model,” said Peter Rendall, KVH’s chief financial officer.” Compared to the same period last year, gross profit dollars from our mini-VSAT Broadband airtime were approximately 47 percent higher in the current second quarter, while the gross margin percentage increased from 32 percent to 35 percent.”

KVH expects its mini-VSAT Broadband business to show strong year-over-year growth.