Workshop:
Building the Business Case for Broadband Satellite Systems & ServicesRoger Rusch
President
TelAstra, Inc.
Broadband satellite services will transform the communications
industry. Over the past few years we have witnessed the failure of several new satellite
services. Based on the predicted market size, cost, schedule, and capability the business
cases looked good. Investors were impressed by the potential profit of these projects, but
the financial analyses were no better than the assumptions. Some of the new broadband
initiatives have excellent prospects, but are having difficulty-securing funding. Because
of past difficulties it is more difficult to win investors for new initiatives.
The purpose of this workshop is to provide tools and techniques
for preparing and evaluating satellite business plans. The day will begin with a brief
overview of the types of communications satellite services which are being proposed and
developed. Next, there will be a short review of some of the most significant issues in
satellite communications including use of non-geostationary satellites, elliptical orbits,
time delay (latency), service quality, link margins, rain fading, elevation angles,
onboard processing, passive intermodulation problems, and intersatellite links.
Market demand predictions. Why have some estimates been highly
inaccurate? What methods provide better estimates? Computation of satellite capacity. How
can we determine capacity? Capital cost estimates for satellites, launch vehicles, and
insurance. What tools are available to estimate costs and anticipate overruns? Program
development schedules. How long will it really take to build a system? Operational cost
for satellite systems. What does it cost to operate satellites? How many satellites will
need to be replaced due to failures? Service provider costs. What cost does the service
provider have? How much of the retail revenue goes to the service provider and to the
satellite operator? Expenses for equity and debt. What returns do equity partners expect?
What interest rates are paid for project debt financing? Revenue ramp up. How rapidly will
customers adopt the service? Earth terminal costs. What factors determine the terminals
cost and acceptability? Regulatory issues. What rules or laws could limit profit
potential?
Workshop Topics:
Market Vision & System Design
- Satellite Market Segments
- Benefits of Satellite Services
- Value Added Chain
- System Architecture
- Issues and Risks
- Earth Terminal Features & Costs
- Regulatory Access
Supply & Demand
- Growth & Demand Projections
- Capacity Calculations
Elements of the Pro Forma
- Capital Cost Estimates
- Program Development Schedules
- Operational Costs
- Service Provider Costs
Winning Customers
- Financing a Start-up Venture
- Service Pricing
- Revenue Ramp-up
- Sales & Distribution
- Equity markets
About Your Workshop Leader:
TelAstra, Inc. is a technical
management-consulting firm dedicated to universal communications service. The company
counsels service operators, system producers, and investors in business and financial
aspects of the telecommunications industry. The firm has published comprehensive records
of the cost, schedule, technical, and operational performance of all the communications
satellites built and launched. The company has performed due diligence for clients and
published four editions of Financial and Business Evaluation of New Multimedia Satellite
Systems.
Roger Rusch is a pioneer in the satellite communications industry with
39 years of contributions to space technology. He has been responsible for the management
of all aspects of satellite manufacturing including design, systems engineering,
production, testing, and business development. He has held senior positions at Hughes
Space and Communications Group, Space Systems / Loral (then Ford Aerospace), and TRW.
Who Should Attend:
The workshop has been prepared for a wide
range of professions in the satellite communications industry including system sponsors,
financial analysts, program managers, systems engineers, suppliers of components and earth
terminals and other investors in satellite communications projects. |
