![]() Building the Business Case for Broadband Satellite Systems & ServicesRoger Rusch Broadband satellite services will transform the communications industry, but satellite ventures are suspect after several mobile satellite business failures in the past few years. 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. We must now learn from the bad experiences and build a case for investment in sound business proposals. Investors can be impressed by the potential profit of the broadband projects, but the financial case must be credible and compelling. The purpose of this workshop is to provide tools and techniques for preparing and evaluating satellite business plans. The day will begin with an examination of the forces shaping the communication satellite industry. We will discuss what has happened and what we must do to win over investors. Next, there will be a review of issues: Market demand predictions. Why have some estimates been highly inaccurate? What methods provide better estimates? Regulatory issues. What rules or laws could limit profits? This workshop will primarily deal with the practical elements of building a business case. The sessions provide tools and techniques for testing the validity or credibility of each element of the pro forma. It is designed to examine the defining elements of the program. Examples will be taken from current programs. Among the aspects which will be reviewed are: Design Alternatives. Non-geostationary satellites, elliptical orbits, time delay (latency), service quality, link margins, rain fading, elevation angles, onboard processing, passive intermodulation, and intersatellite links. 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? Competitive Alternatives. Workshop Topics
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. Main Conference
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