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Using Connectivity to Enhance the On-Board Experience and Drive Passenger Loyalty

Countless whitepapers, studies and technical analyses of the connected aircraft have published in recent years. Much of these – including our very own research here at Valour Consultancy – have tended to focus primarily on the potential for airlines to realise cost savings through deployment of various connected aircraft applications. Very few papers have zeroed in on the many ways in which connectivity can be used to indirectly enhance the on-board experience, drive passenger loyalty and boost revenues via increased ticket sales and repeat business. And that’s precisely the angle this new paper – developed in conjunction with our friends at Intelsat – takes.

Click here to check it out and learn about some of the innovative things airlines are doing with today’s connectivity solutions. Hear from industry leaders on pain points, success stories and how they are making passenger connectivity work for their business needs.

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[fusion_builder_container hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" overlay_color="" video_preview_image="" border_size="" border_color="" border_style="solid" padding_top="" padding_bottom="" padding_left="" padding_right=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" border_position="all" spacing="yes" background_image="" background_repeat="no-repeat" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="small-visibility,medium-visibility,large-visibility" center_content="no" last="no" min_height="" hover_type="none" link=""][fusion_imageframe image_id="5240|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="center" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]https://valourconsultancy.com/wp-content/uploads/2020/02/VC-Intelsat-Whitepaper-e1581421869696.png[/fusion_imageframe][fusion_separator style_type="none" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text columns="" column_min_width="" column_spacing="" rule_style="default" rule_size="" rule_color="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""] Countless whitepapers, studies and technical analyses of the connected aircraft have published in recent years. Much of these – including our very own research here at Valour Consultancy – have tended to focus primarily on the potential for airlines to realise cost savings through deployment of various connected aircraft applications. Very few papers have zeroed in on the many ways in which connectivity can be used to indirectly enhance the on-board experience, drive passenger loyalty and boost revenues via increased ticket sales and repeat business. And that’s precisely the angle this new paper - developed in conjunction with our friends at Intelsat - takes. Click here to check it out and learn about some of the innovative things airlines are doing with today's connectivity solutions. Hear from industry leaders on pain points, success stories and how they are making passenger connectivity work for their business needs. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

The Battle for Business Jet Connectivity Supremacy

2019 was an exciting year in terms of new in-flight connectivity options for the business aviation market and in this article, we ponder whether the increased number of players each now offering a plethora of solutions can really be sustained longer term.

Historically, provision of wholesale cabin connectivity services for VIP and business aircraft has been dominated by four companies: Gogo, Viasat, Inmarsat and Iridium. Gogo now counts some 5,500 business aircraft on its air-to-ground (ATG) network, while Viasat lays claim to more than 1,100 cumulative shipments of its Ku-band system over the last decade. On the L-band side, Inmarsat and Iridium account for the bulk of the market and have done for some time. The former has built an enviable base of almost 4,000 aircraft that rely on its hugely-successful SwiftBroadband (SBB) service and over 600 using the Jet ConneX (JX) Ka-band solution. And with 10,000 aircraft installed with its services today, the latter estimates there’s a 90% chance a business jet will be using its voice services to power in-flight phone operations.

All this could be about to change, however. Over the last couple of years, a clutch of new entrants has emerged, presumably attracted by the higher margins on offer compared with the commercial aviation market. Global Eagle and Panasonic Avionics, for example, announced in 2015, their intent to target the bizliner and bizjet markets, respectively. While Global Eagle still harbours an ambition to pursue opportunities in the VVIP space through its ultra-high end PRIVA brand, Panasonic has stepped back and is concentrating solely on its role in IDAIR, a joint-venture with Lufthansa Technik.

Panasonic’s place in partnership with Astronics and Satcom Direct has since been taken by Intelsat and the trio launched FlexExec in October 2018. Installs have been temporarily suspended after the loss of the Intelsat-29e satellite, although expectations are that the service will re-launch in the early part of 2020. Until then, SES and Collins Aerospace will doubtless be looking to make hay with their new, rival Ku-band offering, LuxStream. Further down the line, OneWeb has vowed to revolutionise the connectivity market with a low-latency solution available for fitment on the lightest of bizjets that it plans to have available in the 2021/2022 timeframe.

Away from satellite-based connectivity, SmartSky Networks is in the final stages of completing its ATG network with entry-into-service and full CONUS coverage slated for 2020. Hardware is already installed on several business aircraft, including Embraer ERJs for launch customer, JSX. Rival, Gogo, as is the case with the other aforementioned players currently dominant, is not content to rest on its laurels and plans to launch an upgraded 5G ATG network the following year. Speculation persists that Gogo is also working with Gilat for its Ku-band tail-mount antenna. If true, such a solution would pit the company against Intelsat, SES and Viasat and allow it to address those business jets that travel internationally and that aren’t candidates for its bulkier fuselage mount 2Ku antenna.

Viasat hasn’t given up on its legacy Ku-band network and this year revealed new “Ku Advanced” packages with increased speeds of up to 10 Mbps and an easy migration path to its newer Ka-band system through use of existing aircraft wiring. Ka-band, of course, being a focus of Inmarsat, too. Despite its considerable early lead in this arena, the company continues to add capacity to the Global Xpress (GX) constellation. Inmarsat also has its eyes on supporting shorter intra-European flights having previously announced that the European Aviation Network (EAN) would be available for business aviation in “early 2019”, although timelines would appear to have slipped.

Last but by no means least is Iridium, which is seeking to tap into the increasing demand for backup communications systems with the recently-launched Certus solution. Due to its compact nature, Certus is also expected to find a place as a primary connectivity system on smaller aircraft for “lite connectivity” applications like in-flight messaging. As well as converting its existing customer base to Certus, Iridium will set its sights on capturing market share from L-band counterpart, Inmarsat.

But what’s so appealing about the bizav market that all these players with their many offerings are so intent on vying for a slice of the pie? As mentioned, margins in business aviation relative to air transport are much higher and while there is, surprisingly, a degree of price sensitivity around up-front equipment costs and on-going airtime fees, there is a willingness to pay for a good quality and reliable connectivity experience. Indeed, during the course of the research for our soon to publish study on the adoption of connectivity in this market, a common theme among interviewees was that non-functioning cabin connectivity is often cause to keep an aircraft on the ground. And it’s this level of heightened expectation that could make or break the prospects of those less familiar with having to provide a white glove service.

Simply put, business aviation is a very high touch market and connectivity providers need to cater to the specific demands of those operating no more than a handful of aircraft. A connectivity service needs to tie into the overall theme of making each aircraft or fleet of aircraft unique – something demonstrated by the fact interiors are often completely custom-crafted to match the exacting tastes of owners. Commercial aviation, on the other hand, is a higher volume market where low margin off-the-shelf products (premium cabin seats aside) are the order of the day. And as far as connectivity business models are concerned, airlines and their service providers have frankly struggled for years to make the paid-for approach work. For this reason, the likes of Intelsat and SES have been wise to partner with well-respected industry stalwarts like Satcom Direct and Collins Aerospace.

Though it’s impossible to say who will thrive and who might fall by the wayside in the battle for supremacy, it’s fair to say that we can most probably expect some level of consolidation in the market in the mid- to longer-term. We must remember that there is only a limited number of business aircraft that are viable candidates for many of the services being proposed. For fuselage mount solutions, there are around 500 bizliners that are large enough to accommodate large, bulky radomes. There are currently circa 6,500 large cabin jets and these – plus an extra 2,500 that are set to be added to the fleet over the next ten years – will be the prime target given that most can take a bullet-like tail radome but are not yet fitted with high-bandwidth Ku- or Ka-band connectivity. Beyond this, most of the remaining 16,000 super-midsize, midsize, light and very light business jets and a similar number of turboprops are only really suited to much less invasive ATG and L-band terminals.

A game changer will be the maturity of flat panel antenna technology, which has the potential to open up the total addressable market for high capacity satellite-based connectivity to much smaller airframes. A whole host of companies are currently working on solutions that aim to do just this but industry consensus is that we’re still several years away from market-ready products that overcome current challenges around power consumption, heat dissipation and cost. That being said, there will always be a significant chunk of smaller aircraft that never leave CONUS or Europe and are arguably most suited to an ATG solution. In this regard, the bases look well covered by Gogo, SmartSky and Inmarsat.

With all this in mind, it seems like a stretch to imagine that the bizav market can support so many different solutions. Those with ambitions to stay relevant in the long term need to ensure that they are best in class and not pursue an unwinnable race to the bottom on price, especially if it comes at the expense of a good quality experience. Anything less simply won’t be tolerated.

The competitive environment, market trends and the likely future adoption of connectivity in this space is explored in great depth in Valour Consultancy’s forthcoming report entitled “The Market for IFEC and CMS Systems on VVIP and Business Aircraftdue to publish in Q1 2020.

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[fusion_builder_container hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" overlay_color="" video_preview_image="" border_size="" border_color="" border_style="solid" padding_top="" padding_bottom="" padding_left="" padding_right=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" border_position="all" spacing="yes" background_image="" background_repeat="no-repeat" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="small-visibility,medium-visibility,large-visibility" center_content="no" last="no" min_height="" hover_type="none" link=""][fusion_imageframe image_id="5197|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="center" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]https://valourconsultancy.com/wp-content/uploads/2020/01/airplane-4702807_1280.jpg[/fusion_imageframe][fusion_separator style_type="none" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text columns="" column_min_width="" column_spacing="" rule_style="default" rule_size="" rule_color="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""] 2019 was an exciting year in terms of new in-flight connectivity options for the business aviation market and in this article, we ponder whether the increased number of players each now offering a plethora of solutions can really be sustained longer term. Historically, provision of wholesale cabin connectivity services for VIP and business aircraft has been dominated by four companies: Gogo, Viasat, Inmarsat and Iridium. Gogo now counts some 5,500 business aircraft on its air-to-ground (ATG) network, while Viasat lays claim to more than 1,100 cumulative shipments of its Ku-band system over the last decade. On the L-band side, Inmarsat and Iridium account for the bulk of the market and have done for some time. The former has built an enviable base of almost 4,000 aircraft that rely on its hugely-successful SwiftBroadband (SBB) service and over 600 using the Jet ConneX (JX) Ka-band solution. And with 10,000 aircraft installed with its services today, the latter estimates there's a 90% chance a business jet will be using its voice services to power in-flight phone operations. All this could be about to change, however. Over the last couple of years, a clutch of new entrants has emerged, presumably attracted by the higher margins on offer compared with the commercial aviation market. Global Eagle and Panasonic Avionics, for example, announced in 2015, their intent to target the bizliner and bizjet markets, respectively. While Global Eagle still harbours an ambition to pursue opportunities in the VVIP space through its ultra-high end PRIVA brand, Panasonic has stepped back and is concentrating solely on its role in IDAIR, a joint-venture with Lufthansa Technik. Panasonic’s place in partnership with Astronics and Satcom Direct has since been taken by Intelsat and the trio launched FlexExec in October 2018. Installs have been temporarily suspended after the loss of the Intelsat-29e satellite, although expectations are that the service will re-launch in the early part of 2020. Until then, SES and Collins Aerospace will doubtless be looking to make hay with their new, rival Ku-band offering, LuxStream. Further down the line, OneWeb has vowed to revolutionise the connectivity market with a low-latency solution available for fitment on the lightest of bizjets that it plans to have available in the 2021/2022 timeframe. Away from satellite-based connectivity, SmartSky Networks is in the final stages of completing its ATG network with entry-into-service and full CONUS coverage slated for 2020. Hardware is already installed on several business aircraft, including Embraer ERJs for launch customer, JSX. Rival, Gogo, as is the case with the other aforementioned players currently dominant, is not content to rest on its laurels and plans to launch an upgraded 5G ATG network the following year. Speculation persists that Gogo is also working with Gilat for its Ku-band tail-mount antenna. If true, such a solution would pit the company against Intelsat, SES and Viasat and allow it to address those business jets that travel internationally and that aren’t candidates for its bulkier fuselage mount 2Ku antenna. Viasat hasn’t given up on its legacy Ku-band network and this year revealed new “Ku Advanced” packages with increased speeds of up to 10 Mbps and an easy migration path to its newer Ka-band system through use of existing aircraft wiring. Ka-band, of course, being a focus of Inmarsat, too. Despite its considerable early lead in this arena, the company continues to add capacity to the Global Xpress (GX) constellation. Inmarsat also has its eyes on supporting shorter intra-European flights having previously announced that the European Aviation Network (EAN) would be available for business aviation in “early 2019”, although timelines would appear to have slipped. Last but by no means least is Iridium, which is seeking to tap into the increasing demand for backup communications systems with the recently-launched Certus solution. Due to its compact nature, Certus is also expected to find a place as a primary connectivity system on smaller aircraft for “lite connectivity” applications like in-flight messaging. As well as converting its existing customer base to Certus, Iridium will set its sights on capturing market share from L-band counterpart, Inmarsat. But what’s so appealing about the bizav market that all these players with their many offerings are so intent on vying for a slice of the pie? As mentioned, margins in business aviation relative to air transport are much higher and while there is, surprisingly, a degree of price sensitivity around up-front equipment costs and on-going airtime fees, there is a willingness to pay for a good quality and reliable connectivity experience. Indeed, during the course of the research for our soon to publish study on the adoption of connectivity in this market, a common theme among interviewees was that non-functioning cabin connectivity is often cause to keep an aircraft on the ground. And it’s this level of heightened expectation that could make or break the prospects of those less familiar with having to provide a white glove service. Simply put, business aviation is a very high touch market and connectivity providers need to cater to the specific demands of those operating no more than a handful of aircraft. A connectivity service needs to tie into the overall theme of making each aircraft or fleet of aircraft unique – something demonstrated by the fact interiors are often completely custom-crafted to match the exacting tastes of owners. Commercial aviation, on the other hand, is a higher volume market where low margin off-the-shelf products (premium cabin seats aside) are the order of the day. And as far as connectivity business models are concerned, airlines and their service providers have frankly struggled for years to make the paid-for approach work. For this reason, the likes of Intelsat and SES have been wise to partner with well-respected industry stalwarts like Satcom Direct and Collins Aerospace. Though it’s impossible to say who will thrive and who might fall by the wayside in the battle for supremacy, it’s fair to say that we can most probably expect some level of consolidation in the market in the mid- to longer-term. We must remember that there is only a limited number of business aircraft that are viable candidates for many of the services being proposed. For fuselage mount solutions, there are around 500 bizliners that are large enough to accommodate large, bulky radomes. There are currently circa 6,500 large cabin jets and these – plus an extra 2,500 that are set to be added to the fleet over the next ten years – will be the prime target given that most can take a bullet-like tail radome but are not yet fitted with high-bandwidth Ku- or Ka-band connectivity. Beyond this, most of the remaining 16,000 super-midsize, midsize, light and very light business jets and a similar number of turboprops are only really suited to much less invasive ATG and L-band terminals. A game changer will be the maturity of flat panel antenna technology, which has the potential to open up the total addressable market for high capacity satellite-based connectivity to much smaller airframes. A whole host of companies are currently working on solutions that aim to do just this but industry consensus is that we’re still several years away from market-ready products that overcome current challenges around power consumption, heat dissipation and cost. That being said, there will always be a significant chunk of smaller aircraft that never leave CONUS or Europe and are arguably most suited to an ATG solution. In this regard, the bases look well covered by Gogo, SmartSky and Inmarsat. With all this in mind, it seems like a stretch to imagine that the bizav market can support so many different solutions. Those with ambitions to stay relevant in the long term need to ensure that they are best in class and not pursue an unwinnable race to the bottom on price, especially if it comes at the expense of a good quality experience. Anything less simply won’t be tolerated. The competitive environment, market trends and the likely future adoption of connectivity in this space is explored in great depth in Valour Consultancy’s forthcoming report entitled “The Market for IFEC and CMS Systems on VVIP and Business Aircraftdue to publish in Q1 2020. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Calm Seas and Smooth Surfing

Author: Steve Flood and Josh Flood

This is all in the future. But what about the future future? Almost all the projects described in the last article, bar one or two, are retrofits of existing vessels. They are the projects of specialist technologically advanced consortia. As the demand for autonomous shipping grips the maritime fleet owners, they will look to the shipyards to incorporate the sensors, controls and communications equipment in their newbuilds.

Larger fleet owners such as Maersk, COSCO, Hapag-Lloyd and MSC will be able to write exacting specifications when they approach a shipyard to build 5 or 10 autonomous vessels. Over 40% of the tonnage of trading vessels in the world consists of dry bulk carriers which are ideal for automisation, as are the 28% that are oil tankers and the 13% that are container ships. CSIC, Mitsubishi, Hyundai, STX and DSME shipyards will have the resources and be happy to comply with the requirements of the heavy hitters in the Merchant Navy.

Smaller fleet operators, say, with less than ten vessels, who order ships individually, will expect the shipyard to supply the automisation. The Korean and Singaporean yards already have smart ship projects underway, as do Mitsubishi in Japan. Yards in China, other yards in Japan and elsewhere will have to bring in expertise. Hyundai’s collaboration with Accenture to develop OceanLink is described as a ‘smart ship’ platform for the shipbuilding, shipping, and onshore-logistics sectors. Daewoo (DSME) shipyard has received Approval in Principle (AiP) from Lloyd’s Register for its collaboration with Korean marine system experts, marineworks, who use KVH communication systems for its smart ship solution (DS4) for new container ships.

Without completely destroying the romance, it is possible to describe a merchant ship as a big box with a large engine driving the propeller. To look after the engine, there is an engine control room into which all the parameters of the engine and ancillary equipment are fed and where activities can be scheduled to keep everything running in a tickety-boo fashion. To keep the ship heading in the right direction, there is a bridge or navigation control room somewhere up high where the helmsman can see the horizon.

Experience with drones has suggested that there is no need for the pilot to sit at the sharp end of a plane but can operate his vehicle from the comfort of his armchair in Texas. In the same way, the chief engineer need not man the engine control room aboard his ship nor the skipper pace the bridge. The major difference between a drone and a cargo ship is the sheer volume of data. Even in the most basic of cargo ships there will be hundreds of sensors on the engines and ancillary equipment plus CCTV, fire alarms, gas detectors, stress measurements, safety systems etc. The bridge will be equally bedecked with data points and all these are connected by tens of miles of wiring.

Admittedly the vast majority of data travelling these wires does not need to be transmitted instantaneously to any remote control room. Warnings, alarms and requests for action do need to be addressed in short order and there are plenty of these, even in the most well-maintained and efficient of ships. It may be considered that artificial intelligence (AI) can sort through these and deal with the most routine. Technically competent engineers and seamen who have not only the knowledge and experience to understand the potential problems and understand the coding needed to deal with this, in AI, are relatively rare. For this reason alone, progress needs to be considerate and systems commissioned to deal with failure and not just to comply with rules and specifications.

Typically a smart ship system can be described as an array of modules each designed to do the job once done by seamen. The accumulated data derived from the observations, decisions and actions of these pseudo-cyber-seamen modules can amount to Terabytes per hour. If live-streaming CCTV is added, there is going to be a need for a large amount of communication capacity.

And then there is the problem of the communication infrastructure – Low Earth Orbit (LEO) arrays such as Iridium, OneWeb, LeoSat, O3b and Elon Musk’s Starlink promise the potential of significant data transfer. Indeed, Samsung published a paper in 2015 proposal suggesting the provision of a Zetabyte/month capacity which is equivalent to 200GB/month for 5 Billion users worldwide. The problem for such a proposal is underutilisation. Such satellites orbit the earth every two hours and, of that, spend about one third over populated areas where they are used fully.

Geostationary arrays, such as Inmarsat, Intelsat and Echostar, and Medium Earth orbit arrays such as Galileo, GPS and GLONASS are positioned for populous areas but also have spare time on their antennae. To fully utilise these arrays, there needs to be users around the globe and the oceans have a relative dearth of need.

A quick look at marine traffic (www.marinetraffic.com) on an unremarkable Sunday 21st July 2019 shows that there are over 200,000 marine vessels large enough to be fitted with an AIS tracker sailing the oceans blue. All of these are currently being tracked by satellite. Admittedly they don’t send a lot of data back home, just enough for tracking purposes. If they were all smart or smartish, then there is a need for a large data pipeline back to headquarters.

The serendipitous, or not so serendipitous, advancement of autonomous shipping and satellite communication has potentially many benefits – cheaper trade, safer ships (it is estimated that 75 to 96% of shipping accidents involve human error), less pollution, greater fuel efficiency – one research project by MUNIN (Maritime Unmanned Navigation through Intelligence in Networks) predicted savings of over $7m over a 25-year period per autonomous vessel in fuel consumption and crew supplies and salaries.

Of course, there are downsides, for instance, a large initial capital expenditure in technology, not only for the ship itself, but also of onshore operations to monitor fleet movements. There is also the danger that occurs during in any transition between current manned marine fleet and any unmanned vessel. A lack of crew will also make maintenance of moving parts incredibly difficult on long voyages and breakdowns could result in significant delays.

Something that is scantly regarded is the removal of benefit of international inter-reaction. Each of these ships will have crews of international origin. This is estimated at 1,647,500 seafarers, of which 774,000 are officers and 873,500 are ratings. China, the Philippines, Indonesia, the Russian Federation and Ukraine are the five largest nationalities of all seafarers (officers and ratings). The Philippines is the biggest supplier of ratings, followed by China, Indonesia, the Russian Federation and Ukraine. While China is the biggest supplier of officers, followed by the Philippines, India, Indonesia and the Russian Federation. These crews rub along quite well generally, and as one who has spent some time at sea, the writer can state that one of the great pleasures of sea-time (and one of the great annoyances) is inter-reacting with all the foreign crew members and learning about their culture and cuisine.

However autonomous shipping is steaming over the horizon and it must be welcomed into port if our general prosperity is to increase. The really interesting time comes after autonomous shipping when AI takes over the logistics and trading, assessing cargo prices and starts re-routing ships to maximise profit.

For more information on Valour Consultancy’s maritime connectivity, digital applications, cybersecurity, autonomous maritime vessel and other maritime reports, please contact   info@valourconsultancy.com and “Maritime Research” in the subject line.

 

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[fusion_builder_container hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" overlay_color="" video_preview_image="" border_size="" border_color="" border_style="solid" padding_top="" padding_bottom="" padding_left="" padding_right=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" border_position="all" spacing="yes" background_image="" background_repeat="no-repeat" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="small-visibility,medium-visibility,large-visibility" center_content="no" last="no" min_height="" hover_type="none" link=""][fusion_imageframe image_id="4774|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="none" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]http://217.199.187.200/valourconsultancy.com/wp-content/uploads/2019/07/Calm-Seas-and-Smooth-Sailing-1.jpg[/fusion_imageframe][fusion_text] Author: Steve Flood and Josh Flood This is all in the future. But what about the future future? Almost all the projects described in the last article, bar one or two, are retrofits of existing vessels. They are the projects of specialist technologically advanced consortia. As the demand for autonomous shipping grips the maritime fleet owners, they will look to the shipyards to incorporate the sensors, controls and communications equipment in their newbuilds. Larger fleet owners such as Maersk, COSCO, Hapag-Lloyd and MSC will be able to write exacting specifications when they approach a shipyard to build 5 or 10 autonomous vessels. Over 40% of the tonnage of trading vessels in the world consists of dry bulk carriers which are ideal for automisation, as are the 28% that are oil tankers and the 13% that are container ships. CSIC, Mitsubishi, Hyundai, STX and DSME shipyards will have the resources and be happy to comply with the requirements of the heavy hitters in the Merchant Navy. Smaller fleet operators, say, with less than ten vessels, who order ships individually, will expect the shipyard to supply the automisation. The Korean and Singaporean yards already have smart ship projects underway, as do Mitsubishi in Japan. Yards in China, other yards in Japan and elsewhere will have to bring in expertise. Hyundai’s collaboration with Accenture to develop OceanLink is described as a ‘smart ship’ platform for the shipbuilding, shipping, and onshore-logistics sectors. Daewoo (DSME) shipyard has received Approval in Principle (AiP) from Lloyd’s Register for its collaboration with Korean marine system experts, marineworks, who use KVH communication systems for its smart ship solution (DS4) for new container ships. Without completely destroying the romance, it is possible to describe a merchant ship as a big box with a large engine driving the propeller. To look after the engine, there is an engine control room into which all the parameters of the engine and ancillary equipment are fed and where activities can be scheduled to keep everything running in a tickety-boo fashion. To keep the ship heading in the right direction, there is a bridge or navigation control room somewhere up high where the helmsman can see the horizon. Experience with drones has suggested that there is no need for the pilot to sit at the sharp end of a plane but can operate his vehicle from the comfort of his armchair in Texas. In the same way, the chief engineer need not man the engine control room aboard his ship nor the skipper pace the bridge. The major difference between a drone and a cargo ship is the sheer volume of data. Even in the most basic of cargo ships there will be hundreds of sensors on the engines and ancillary equipment plus CCTV, fire alarms, gas detectors, stress measurements, safety systems etc. The bridge will be equally bedecked with data points and all these are connected by tens of miles of wiring. Admittedly the vast majority of data travelling these wires does not need to be transmitted instantaneously to any remote control room. Warnings, alarms and requests for action do need to be addressed in short order and there are plenty of these, even in the most well-maintained and efficient of ships. It may be considered that artificial intelligence (AI) can sort through these and deal with the most routine. Technically competent engineers and seamen who have not only the knowledge and experience to understand the potential problems and understand the coding needed to deal with this, in AI, are relatively rare. For this reason alone, progress needs to be considerate and systems commissioned to deal with failure and not just to comply with rules and specifications. Typically a smart ship system can be described as an array of modules each designed to do the job once done by seamen. The accumulated data derived from the observations, decisions and actions of these pseudo-cyber-seamen modules can amount to Terabytes per hour. If live-streaming CCTV is added, there is going to be a need for a large amount of communication capacity. And then there is the problem of the communication infrastructure – Low Earth Orbit (LEO) arrays such as Iridium, OneWeb, LeoSat, O3b and Elon Musk’s Starlink promise the potential of significant data transfer. Indeed, Samsung published a paper in 2015 proposal suggesting the provision of a Zetabyte/month capacity which is equivalent to 200GB/month for 5 Billion users worldwide. The problem for such a proposal is underutilisation. Such satellites orbit the earth every two hours and, of that, spend about one third over populated areas where they are used fully. Geostationary arrays, such as Inmarsat, Intelsat and Echostar, and Medium Earth orbit arrays such as Galileo, GPS and GLONASS are positioned for populous areas but also have spare time on their antennae. To fully utilise these arrays, there needs to be users around the globe and the oceans have a relative dearth of need. A quick look at marine traffic (www.marinetraffic.com) on an unremarkable Sunday 21st July 2019 shows that there are over 200,000 marine vessels large enough to be fitted with an AIS tracker sailing the oceans blue. All of these are currently being tracked by satellite. Admittedly they don’t send a lot of data back home, just enough for tracking purposes. If they were all smart or smartish, then there is a need for a large data pipeline back to headquarters. The serendipitous, or not so serendipitous, advancement of autonomous shipping and satellite communication has potentially many benefits – cheaper trade, safer ships (it is estimated that 75 to 96% of shipping accidents involve human error), less pollution, greater fuel efficiency – one research project by MUNIN (Maritime Unmanned Navigation through Intelligence in Networks) predicted savings of over $7m over a 25-year period per autonomous vessel in fuel consumption and crew supplies and salaries. Of course, there are downsides, for instance, a large initial capital expenditure in technology, not only for the ship itself, but also of onshore operations to monitor fleet movements. There is also the danger that occurs during in any transition between current manned marine fleet and any unmanned vessel. A lack of crew will also make maintenance of moving parts incredibly difficult on long voyages and breakdowns could result in significant delays. Something that is scantly regarded is the removal of benefit of international inter-reaction. Each of these ships will have crews of international origin. This is estimated at 1,647,500 seafarers, of which 774,000 are officers and 873,500 are ratings. China, the Philippines, Indonesia, the Russian Federation and Ukraine are the five largest nationalities of all seafarers (officers and ratings). The Philippines is the biggest supplier of ratings, followed by China, Indonesia, the Russian Federation and Ukraine. While China is the biggest supplier of officers, followed by the Philippines, India, Indonesia and the Russian Federation. These crews rub along quite well generally, and as one who has spent some time at sea, the writer can state that one of the great pleasures of sea-time (and one of the great annoyances) is inter-reacting with all the foreign crew members and learning about their culture and cuisine. However autonomous shipping is steaming over the horizon and it must be welcomed into port if our general prosperity is to increase. The really interesting time comes after autonomous shipping when AI takes over the logistics and trading, assessing cargo prices and starts re-routing ships to maximise profit. For more information on Valour Consultancy’s maritime connectivity, digital applications, cybersecurity, autonomous maritime vessel and other maritime reports, please contact   info@valourconsultancy.com and “Maritime Research” in the subject line.   [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

ATG to Drive Adoption of In-Flight Connectivity in China

Mainland China has been unanimously pegged as the next big growth area in the global In-Flight Connectivity (IFC) market for some time now. The country’s aviation sector continues to grow at pace and local airlines possess largely unconnected fleets of almost 3,700 aircraft, 85 per cent of which are single aisle. According to our most recent Quarterly IFC Tracker, 168 aircraft registered to airlines in Mainland China (all wide-body) offered passenger connectivity at the end of March 2019; just 5% of the commercial active fleet.

One could be forgiven for assuming Chinese airlines will follow the lead of others, globally, and opt for satellite connectivity. Afterall, much of the limited IFC-related activity to date has been around bringing satellite-based solutions to market, including recent tie-ups between Viasat and China Satcom, and Honeywell and local service provider Air Esurfing. Furthermore, Panasonic Avionics’ Ku-band solution, which is installed on almost every Chinese aircraft equipped with IFC today, is expected to remain relevant in the coming years thanks to the company’s investment in the APSTAR 6D HTS satellite. But it seems increasingly likely that airlines in Mainland China will be presented with an alternative to satellite-based IFC in the form of China Mobile’s proposed 5G Air-To-Ground network.

China is one of a few countries that can be considered a natural fit for an ATG network. After all, it is the fourth largest in the world, in terms of landmass (behind the U.S., Canada and Russia) and the volume of aviation traffic operating within Chinese borders continues to rise; an estimated 75 per cent of narrow-body aircraft registered to local airlines operate routes exclusively within Mainland borders. Beyond these factors, the broader benefits of ATG over satellite-based solutions, specifically reduced downtime and installation costs, would no doubt appeal to those Tier 2 and 3 airlines unlikely to install a Ku- or Ka-band solution.

With the above in mind, it is no surprise various companies, such as Beijing Weibang Yuanhang Wireless Technology Co., Ltd (Weibang) and China Telecom Satellite have trialled small-scale networks in recent years. The latter is understood to still have 32 towers active and ready to go pending regulatory approval, which to date remains allusive.

In 2018, China Mobile joined this list, successfully trialling a 4G LTE network consisting of 52 ground base stations positioned across a number of high traffic routes. Now, the Mobile Network Operator (MNO) is understood to be working toward launching a full blown 5G ATG network, which will leverage a large chunk of spectrum in the 4.8-4.9 GHz band.

In our most recent report “IFC in China, India and Russia – 2019”, we have put our neck on the line to suggest this ATG concept will succeed where others have failed and become commercially active. But what is it about this proposal that stands out from those before it? For us, there are several factors.

  • China Mobile is the largest in the world, boasting 931 million mobile subscribers (as of March 2019), all of which would likely benefit from the in-flight service, driving take-rates.
  • China Mobile is a state-owned entity, a status that at the very least could speed up the regulatory process associated with launching its proposed network.
  • Crucially, Chinese aviation regulator, the CAAC, seems to be behind the proposal too, having been part of the initial 4G LTE trial in 2018 and subsequently talking up China Mobile’s intentions in a paper published by the International Civil Aviation Organization (ICAO) in October 2018.
  • Finally, China Mobile has surrounded itself with good company. In 2018, it partnered with the Chinese R&D subsidiary of Airbus to develop an end-to-end 5G ATG solution and a month later Chinese heavyweight, Huawei, was brought into the fold to work on the associated terminal.

But whilst there appears to be a number of factors in China Mobile’s favour, it is also important to acknowledge that some significant hurdles lie ahead. Firstly, to justify its existence, the proposed network would have to attract at least one of the major airlines, such as China Southern, China Eastern, Air China or Hainan Airlines. Whilst there appears to be genuine interest from Tier one airlines, a formal decision will likely require proof of service quality. This will understandably take time.

More fundamentally, the Ministry of Industry and Information Technology (MIIT) will need convincing that its concerns around the network’s frequency interference with sovereign military and space applications are unfounded. Whilst this is not expected to put an end to China Mobile’s proposal, it looks likely to delay a commercial launch beyond the MNO’s suggested 2021 launch, with 2022/23 a more realistic time-frame.

Clearly then, there is still some way to go before China Mobile’s proposed ATG network becomes a reality and there is every chance this could be yet another trial that doesn’t ever make the jump to a commercially viable solution. However, the genuine momentum which seems to be building behind this concept makes it difficult to ignore when thinking about the future of IFC in China. All factors point toward this ATG proposal being the one which becomes a reality. Assuming all goes to plan for China Mobile in the next couple of years, we estimate the installed base of ATG in Mainland China will reach approximately 1,300 aircraft by the end of 2028.

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[fusion_builder_container hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" overlay_color="" video_preview_image="" border_size="" border_color="" border_style="solid" padding_top="" padding_bottom="" padding_left="" padding_right=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" border_position="all" spacing="yes" background_image="" background_repeat="no-repeat" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="small-visibility,medium-visibility,large-visibility" center_content="no" last="no" min_height="" hover_type="none" link=""][fusion_imageframe image_id="4841|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="none" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]http://217.199.187.200/valourconsultancy.com/wp-content/uploads/2019/07/china-654405_1280.jpg[/fusion_imageframe][fusion_separator style_type="default" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text] Mainland China has been unanimously pegged as the next big growth area in the global In-Flight Connectivity (IFC) market for some time now. The country’s aviation sector continues to grow at pace and local airlines possess largely unconnected fleets of almost 3,700 aircraft, 85 per cent of which are single aisle. According to our most recent Quarterly IFC Tracker, 168 aircraft registered to airlines in Mainland China (all wide-body) offered passenger connectivity at the end of March 2019; just 5% of the commercial active fleet. One could be forgiven for assuming Chinese airlines will follow the lead of others, globally, and opt for satellite connectivity. Afterall, much of the limited IFC-related activity to date has been around bringing satellite-based solutions to market, including recent tie-ups between Viasat and China Satcom, and Honeywell and local service provider Air Esurfing. Furthermore, Panasonic Avionics’ Ku-band solution, which is installed on almost every Chinese aircraft equipped with IFC today, is expected to remain relevant in the coming years thanks to the company’s investment in the APSTAR 6D HTS satellite. But it seems increasingly likely that airlines in Mainland China will be presented with an alternative to satellite-based IFC in the form of China Mobile’s proposed 5G Air-To-Ground network. China is one of a few countries that can be considered a natural fit for an ATG network. After all, it is the fourth largest in the world, in terms of landmass (behind the U.S., Canada and Russia) and the volume of aviation traffic operating within Chinese borders continues to rise; an estimated 75 per cent of narrow-body aircraft registered to local airlines operate routes exclusively within Mainland borders. Beyond these factors, the broader benefits of ATG over satellite-based solutions, specifically reduced downtime and installation costs, would no doubt appeal to those Tier 2 and 3 airlines unlikely to install a Ku- or Ka-band solution. With the above in mind, it is no surprise various companies, such as Beijing Weibang Yuanhang Wireless Technology Co., Ltd (Weibang) and China Telecom Satellite have trialled small-scale networks in recent years. The latter is understood to still have 32 towers active and ready to go pending regulatory approval, which to date remains allusive. In 2018, China Mobile joined this list, successfully trialling a 4G LTE network consisting of 52 ground base stations positioned across a number of high traffic routes. Now, the Mobile Network Operator (MNO) is understood to be working toward launching a full blown 5G ATG network, which will leverage a large chunk of spectrum in the 4.8-4.9 GHz band. In our most recent report “IFC in China, India and Russia – 2019”, we have put our neck on the line to suggest this ATG concept will succeed where others have failed and become commercially active. But what is it about this proposal that stands out from those before it? For us, there are several factors.
  • China Mobile is the largest in the world, boasting 931 million mobile subscribers (as of March 2019), all of which would likely benefit from the in-flight service, driving take-rates.
  • China Mobile is a state-owned entity, a status that at the very least could speed up the regulatory process associated with launching its proposed network.
  • Crucially, Chinese aviation regulator, the CAAC, seems to be behind the proposal too, having been part of the initial 4G LTE trial in 2018 and subsequently talking up China Mobile’s intentions in a paper published by the International Civil Aviation Organization (ICAO) in October 2018.
  • Finally, China Mobile has surrounded itself with good company. In 2018, it partnered with the Chinese R&D subsidiary of Airbus to develop an end-to-end 5G ATG solution and a month later Chinese heavyweight, Huawei, was brought into the fold to work on the associated terminal.
But whilst there appears to be a number of factors in China Mobile’s favour, it is also important to acknowledge that some significant hurdles lie ahead. Firstly, to justify its existence, the proposed network would have to attract at least one of the major airlines, such as China Southern, China Eastern, Air China or Hainan Airlines. Whilst there appears to be genuine interest from Tier one airlines, a formal decision will likely require proof of service quality. This will understandably take time. More fundamentally, the Ministry of Industry and Information Technology (MIIT) will need convincing that its concerns around the network’s frequency interference with sovereign military and space applications are unfounded. Whilst this is not expected to put an end to China Mobile’s proposal, it looks likely to delay a commercial launch beyond the MNO’s suggested 2021 launch, with 2022/23 a more realistic time-frame. Clearly then, there is still some way to go before China Mobile’s proposed ATG network becomes a reality and there is every chance this could be yet another trial that doesn’t ever make the jump to a commercially viable solution. However, the genuine momentum which seems to be building behind this concept makes it difficult to ignore when thinking about the future of IFC in China. All factors point toward this ATG proposal being the one which becomes a reality. Assuming all goes to plan for China Mobile in the next couple of years, we estimate the installed base of ATG in Mainland China will reach approximately 1,300 aircraft by the end of 2028. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

The Future of Maritime Connectivity – A Sneak Preview

In October 2018, Valour Consultancy will publish a long-awaited update to its maritime connectivity report. For those that simply cannot wait to get a hold of this information, we thought we’d share a sneak peek of our just-realised preliminary data…

Our statistics show that the global maritime connectivity market will continue to grow strongly in 2018, with annual service revenues projected to reach $1.6 billion by the end of the year. This represents a 5.4 per cent increase from 2017.

The VSAT portion of the market is anticipated to drive future growth, with MSS service revenues declining over the coming years. By the end of 2017, VSAT terminals accounted for only nine per cent of the installed base of vessels with some type of connectivity system installed. This will increase to 10 per cent by the end of 2018 and 18 per cent by 2027.

Revenues from VSAT terminal services represented 68 per cent of the total market (equivalent to some $1 billion) in 2017. Average monthly revenues per terminal for C-, Ku-, and Ka-band services differ considerably, however, and were recorded at $5,750, $3,078, and $2,757, respectively, in 2017. In comparison, average monthly service revenues for L-band terminals were just $169.

The passenger segment is a particularly lucrative market as many cruise and ferry line operators are seeking out greater satellite bandwidth capacities to match an ever-increasing demand from passengers to use Internet-enabled smartphones and tablets. Not only do people want to eat their breakfasts, lunches, and dinners; they wish to take pictures of them and post them on social media pages for all the world to see (or sea, if you pardon the pun).

In other maritime verticals, such as merchant, the desire to improve crew welfare is a major driver for the adoption of VSAT technologies for voice, video and email communications. Spending months away from friends and family without any communications can be sapping on morale and will likely lead to staff reconsidering their career or employment choices.

Another major driver within the shipping industry is the digitalisation of vessel operations and increasing operational efficiencies. One key cost saver is anticipating maintenance or repair work before a piece of machinery on the vessel breaks down out at sea, which is much costlier to fix than a vessel docked at a port.

Furthermore, people’s expectations are changing to the degree that not having the ability to access emails or messages is intolerable no matter where they are in the world, on land, at sea or in the air. This is a very notable trend in the leisure market. Yacht or smaller leisure boat owners want to continue with their normal life and business routines whilst sailing around the world. Access to connectivity is essential for them to achieve this.

The Future of Maritime Connectivity” report projects maritime connectivity service revenues will reach almost $2.1 billion by the end of 2027. The leisure and passenger segments are predicted to be the fastest growing areas. Indeed, ARPU for some of the biggest cruise vessels using VSAT systems is expected to easily surpass $30,000 per month.

Speedcast, the Australian service provider, has been very successful in the passenger market thanks in part to the 2017 acquisition of Harris Caprock and August 2018 purchase of Globecomm.

Within the next ten years, global VSAT terminal deployments will treble to more than 72,000 units. The Ka-band market is projected to record the biggest increase, expanding ten-fold from a small base of around 3,000 terminals at the end of 2017, to greater than 30,000 by 2027. In fact, Inmarsat recently revealed that it expects to carry out the 5,000th ship installation of its Fleet Xpress solution by the end of this month, which gives an idea of just how quickly this particular technology is being adopted.

With the prospects for VSAT in maritime incredibly rosy, it can be easy to overlook the MSS market. As such, the report also delves into the low-speed and no voice MSS segment (GMDSS and asset tracking) of the maritime communications market and provides forecasts for the broadband and voice portion (Fleet Broadband and OpenPort). Although VSAT is steadily cannibalising these markets across different maritime verticals, annual L-band service revenues are projected to decline at a slower rate than some might expect. Demand in the fishing, merchant and leisure sectors will continue to support this limited bandwidth technology.

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[fusion_builder_container hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" overlay_color="" video_preview_image="" border_size="" border_color="" border_style="solid" padding_top="" padding_bottom="" padding_left="" padding_right=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" border_position="all" spacing="yes" background_image="" background_repeat="no-repeat" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="small-visibility,medium-visibility,large-visibility" center_content="no" last="no" min_height="" hover_type="none" link=""][fusion_imageframe image_id="4867|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="center" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]http://217.199.187.200/valourconsultancy.com/wp-content/uploads/2018/09/yacht-3480913_1280-min-1024x682-1.jpg[/fusion_imageframe][fusion_separator style_type="default" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text]In October 2018, Valour Consultancy will publish a long-awaited update to its maritime connectivity report. For those that simply cannot wait to get a hold of this information, we thought we’d share a sneak peek of our just-realised preliminary data… Our statistics show that the global maritime connectivity market will continue to grow strongly in 2018, with annual service revenues projected to reach $1.6 billion by the end of the year. This represents a 5.4 per cent increase from 2017. The VSAT portion of the market is anticipated to drive future growth, with MSS service revenues declining over the coming years. By the end of 2017, VSAT terminals accounted for only nine per cent of the installed base of vessels with some type of connectivity system installed. This will increase to 10 per cent by the end of 2018 and 18 per cent by 2027. Revenues from VSAT terminal services represented 68 per cent of the total market (equivalent to some $1 billion) in 2017. Average monthly revenues per terminal for C-, Ku-, and Ka-band services differ considerably, however, and were recorded at $5,750, $3,078, and $2,757, respectively, in 2017. In comparison, average monthly service revenues for L-band terminals were just $169. The passenger segment is a particularly lucrative market as many cruise and ferry line operators are seeking out greater satellite bandwidth capacities to match an ever-increasing demand from passengers to use Internet-enabled smartphones and tablets. Not only do people want to eat their breakfasts, lunches, and dinners; they wish to take pictures of them and post them on social media pages for all the world to see (or sea, if you pardon the pun). In other maritime verticals, such as merchant, the desire to improve crew welfare is a major driver for the adoption of VSAT technologies for voice, video and email communications. Spending months away from friends and family without any communications can be sapping on morale and will likely lead to staff reconsidering their career or employment choices. Another major driver within the shipping industry is the digitalisation of vessel operations and increasing operational efficiencies. One key cost saver is anticipating maintenance or repair work before a piece of machinery on the vessel breaks down out at sea, which is much costlier to fix than a vessel docked at a port. Furthermore, people’s expectations are changing to the degree that not having the ability to access emails or messages is intolerable no matter where they are in the world, on land, at sea or in the air. This is a very notable trend in the leisure market. Yacht or smaller leisure boat owners want to continue with their normal life and business routines whilst sailing around the world. Access to connectivity is essential for them to achieve this. “The Future of Maritime Connectivity” report projects maritime connectivity service revenues will reach almost $2.1 billion by the end of 2027. The leisure and passenger segments are predicted to be the fastest growing areas. Indeed, ARPU for some of the biggest cruise vessels using VSAT systems is expected to easily surpass $30,000 per month. Speedcast, the Australian service provider, has been very successful in the passenger market thanks in part to the 2017 acquisition of Harris Caprock and August 2018 purchase of Globecomm. Within the next ten years, global VSAT terminal deployments will treble to more than 72,000 units. The Ka-band market is projected to record the biggest increase, expanding ten-fold from a small base of around 3,000 terminals at the end of 2017, to greater than 30,000 by 2027. In fact, Inmarsat recently revealed that it expects to carry out the 5,000th ship installation of its Fleet Xpress solution by the end of this month, which gives an idea of just how quickly this particular technology is being adopted. With the prospects for VSAT in maritime incredibly rosy, it can be easy to overlook the MSS market. As such, the report also delves into the low-speed and no voice MSS segment (GMDSS and asset tracking) of the maritime communications market and provides forecasts for the broadband and voice portion (Fleet Broadband and OpenPort). Although VSAT is steadily cannibalising these markets across different maritime verticals, annual L-band service revenues are projected to decline at a slower rate than some might expect. Demand in the fishing, merchant and leisure sectors will continue to support this limited bandwidth technology.[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Is Enhanced Communications For Seafaring Worth The Investment? 

There is a good assumption that effective communications are the main source of success for any business entity to survive, prosper, and grow. In fact, the importance of communications has been brought up as an essential tool in achieving productivity and maintaining strong working relationships in any business sector.

With the advent of globalisation, digitalisation, and mobility, the world has seen changes in communication technologies as the growth of connectivity has been influencing people’s mind over the last decade. The good news is that digital connectivity is here to stay and the future is promising, especially for those industries where constant communications between onshore locations and remote facilities are a high priority.

For instance, the maritime industry has seen improvements in sea-to-shore connectivity, allowing seafarers to enjoy, to some extent, the benefits of digital communications and real-time solutions for work and personal use. Yet, there are some misconceptions against onboard connectivity that need to be rejected as enhanced communications could change the life of those people who spend much of their lives at sea.

Those misconceptions repeatedly comprise costs (installation and running costs), content viewed or downloaded, and resulting distractions. However, the world is experiencing the benefits of the so-called networked economy, where connectivity is not a luxury but a basic right for everyone. It is imperative, though, to explain why investing on enhanced communications is a great business idea, and how this game-changing move improves the quality of lives of seafarers onboard.

Seafarer’s Morale

Seafarers are the most important and qualified employees to work onboard. Providing them with Internet access and other digital applications, improves their quality of life, and helps attract the best talent whilst also optimising vessels and productivity. In consequence, management would have the ability to implement HR programs that increase retention rates for sustainable development and job satisfaction.

The 2015 Crew Connectivity Survey, undertaken by Futurenautics Research, brought forth important figures to the inclusion of crew morale as a core business value. “At recruitment, 73% of respondents said that the level of crew communications services provided onboard did influence their decision about which shipping company they work for.” In other words, most seafarers are telling us that no matter how great the company could be, connecting to the outside world is crucial.

Social Isolation

Seafaring is an inherently isolated occupation. There is a huge risk that crew who spend months away from home could develop feelings of boredom, marginality, exclusion, anger, despair, sadness, frustration, and especially loneliness. Maritime companies, particularly in the shipping sector, are responsible for mitigating the loneliness of being away from home and reducing other psychological side effects, so potential seafarers could find their careers more bearable and attractive.

A recent investigation made by Nautilus International has found that despite some companies believing that social interaction is affected by the provision of enhanced communications onboard vessels, seafarers rated not “speaking the common language” as having the highest impact on social interaction at work. This finding breaks the scepticism that connectivity does not foster community, togetherness, and teamwork values whilst at work.

Maintaining links with home

One of the main concerns for seafarers is that bandwidth at sea is often narrow, expensive, and unreliable, making it difficult for crews to maintain good contact with their families unless they are in port. In the digital age, furnishing seafarers with poor Internet access is counterproductive, as companies that invest in high-bandwidth sea-to-shore connectivity can not only benefit from greater operational efficiencies but they can also boost the morale of their employees by providing technology that facilitates advanced communications such as video calling.

As in business, a happy crew leads to a stable ship, and that is the case for the Engine Cadet, Zypert Barcelo, who was lucky enough to be on a ship – Maersk Laberinto – that provides connectivity at no cost. The seaman reported that he was able to perform effectively onboard as he had the ability to keep in touch with his family for emotional support, which made his life at sea easier. Although there is a risk of home-related distractions, connectivity outweighs work-related challenges for our last two following reasons.

Training Onboard

Providing computer-based training and E-learning is a source of competitive advantage as there is an ever-increasing need for innovation in the industry to reduce operational, safety, and cyber-security costs. As the world moves toward digitalisation, training and development should be indispensable to supply seafarers with skills that meet the technical requirements of modern vessels and the customised needs of companies and their customers.

To quote an example, the recent cyber-attack that shut down Maersk’s business units and IT systems, is a crystal-clear sign that the shipping industry has failed to push staff-awareness and preventive training onto the agenda. The case for security gets even more dramatic when you look at the findings from Nautilus International that show 86% of survey respondents claim that they have never received any sort of training in cyber-security, which makes companies fearful and more reluctant to consider crew connectivity.

Millennials

As the generation gap is widening in the workplace, so-called millennials are starting to question the status quo with new communications requirements and expectations onboard. To appeal to the millennial generation, Mark Charman, CEO at Faststream Recruitment Group, advised recruiters to focus on the most important factors that younger crews consider in choosing an employer: competitive salary, shorter rotations, fast promotions, new vessels, and more importantly, onboard connectivity.

While vessels are becoming more modern and new systems being put in place with integral connectivity solutions and controls, forward-thinking ship owners need to see the technological and economic opportunity that a new generation of seafarers poses to the market. By virtue, millennials are technology advocates, who easily adapt to new digital advances and trends, and make a great use of mobile applications to undertake sophisticated initiatives and other work-related tasks while keeping in touch with the outside world.

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[fusion_builder_container hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" overlay_color="" video_preview_image="" border_size="" border_color="" border_style="solid" padding_top="" padding_bottom="" padding_left="" padding_right=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" border_position="all" spacing="yes" background_image="" background_repeat="no-repeat" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="small-visibility,medium-visibility,large-visibility" center_content="no" last="no" min_height="" hover_type="none" link=""][fusion_imageframe image_id="4962|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="center" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]http://217.199.187.200/valourconsultancy.com/wp-content/uploads/2017/09/elbe-1782991_960_720-e1506360223774-1.jpg[/fusion_imageframe][fusion_separator style_type="default" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text columns="" column_min_width="" column_spacing="" rule_style="default" rule_size="" rule_color="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""] There is a good assumption that effective communications are the main source of success for any business entity to survive, prosper, and grow. In fact, the importance of communications has been brought up as an essential tool in achieving productivity and maintaining strong working relationships in any business sector. With the advent of globalisation, digitalisation, and mobility, the world has seen changes in communication technologies as the growth of connectivity has been influencing people’s mind over the last decade. The good news is that digital connectivity is here to stay and the future is promising, especially for those industries where constant communications between onshore locations and remote facilities are a high priority. For instance, the maritime industry has seen improvements in sea-to-shore connectivity, allowing seafarers to enjoy, to some extent, the benefits of digital communications and real-time solutions for work and personal use. Yet, there are some misconceptions against onboard connectivity that need to be rejected as enhanced communications could change the life of those people who spend much of their lives at sea. Those misconceptions repeatedly comprise costs (installation and running costs), content viewed or downloaded, and resulting distractions. However, the world is experiencing the benefits of the so-called networked economy, where connectivity is not a luxury but a basic right for everyone. It is imperative, though, to explain why investing on enhanced communications is a great business idea, and how this game-changing move improves the quality of lives of seafarers onboard.

Seafarer’s Morale

Seafarers are the most important and qualified employees to work onboard. Providing them with Internet access and other digital applications, improves their quality of life, and helps attract the best talent whilst also optimising vessels and productivity. In consequence, management would have the ability to implement HR programs that increase retention rates for sustainable development and job satisfaction. The 2015 Crew Connectivity Survey, undertaken by Futurenautics Research, brought forth important figures to the inclusion of crew morale as a core business value. "At recruitment, 73% of respondents said that the level of crew communications services provided onboard did influence their decision about which shipping company they work for." In other words, most seafarers are telling us that no matter how great the company could be, connecting to the outside world is crucial.

Social Isolation

Seafaring is an inherently isolated occupation. There is a huge risk that crew who spend months away from home could develop feelings of boredom, marginality, exclusion, anger, despair, sadness, frustration, and especially loneliness. Maritime companies, particularly in the shipping sector, are responsible for mitigating the loneliness of being away from home and reducing other psychological side effects, so potential seafarers could find their careers more bearable and attractive. A recent investigation made by Nautilus International has found that despite some companies believing that social interaction is affected by the provision of enhanced communications onboard vessels, seafarers rated not “speaking the common language” as having the highest impact on social interaction at work. This finding breaks the scepticism that connectivity does not foster community, togetherness, and teamwork values whilst at work.

Maintaining links with home

One of the main concerns for seafarers is that bandwidth at sea is often narrow, expensive, and unreliable, making it difficult for crews to maintain good contact with their families unless they are in port. In the digital age, furnishing seafarers with poor Internet access is counterproductive, as companies that invest in high-bandwidth sea-to-shore connectivity can not only benefit from greater operational efficiencies but they can also boost the morale of their employees by providing technology that facilitates advanced communications such as video calling. As in business, a happy crew leads to a stable ship, and that is the case for the Engine Cadet, Zypert Barcelo, who was lucky enough to be on a ship – Maersk Laberinto – that provides connectivity at no cost. The seaman reported that he was able to perform effectively onboard as he had the ability to keep in touch with his family for emotional support, which made his life at sea easier. Although there is a risk of home-related distractions, connectivity outweighs work-related challenges for our last two following reasons.

Training Onboard

Providing computer-based training and E-learning is a source of competitive advantage as there is an ever-increasing need for innovation in the industry to reduce operational, safety, and cyber-security costs. As the world moves toward digitalisation, training and development should be indispensable to supply seafarers with skills that meet the technical requirements of modern vessels and the customised needs of companies and their customers. To quote an example, the recent cyber-attack that shut down Maersk’s business units and IT systems, is a crystal-clear sign that the shipping industry has failed to push staff-awareness and preventive training onto the agenda. The case for security gets even more dramatic when you look at the findings from Nautilus International that show 86% of survey respondents claim that they have never received any sort of training in cyber-security, which makes companies fearful and more reluctant to consider crew connectivity.

Millennials

As the generation gap is widening in the workplace, so-called millennials are starting to question the status quo with new communications requirements and expectations onboard. To appeal to the millennial generation, Mark Charman, CEO at Faststream Recruitment Group, advised recruiters to focus on the most important factors that younger crews consider in choosing an employer: competitive salary, shorter rotations, fast promotions, new vessels, and more importantly, onboard connectivity. While vessels are becoming more modern and new systems being put in place with integral connectivity solutions and controls, forward-thinking ship owners need to see the technological and economic opportunity that a new generation of seafarers poses to the market. By virtue, millennials are technology advocates, who easily adapt to new digital advances and trends, and make a great use of mobile applications to undertake sophisticated initiatives and other work-related tasks while keeping in touch with the outside world. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Maersk Cyber-Attack: A Lesson Learned?

As the shipping industry keeps moving slowly to new forms of technology and digital innovations, criminality has started to make a huge impact on the ocean supply chain. On June 27th, A.P. Moller-Maersk fell victim to a coordinated international cyber-attack, which affected several of its businesses across the world, causing the shutdown of IT systems across its business units against virtual intrusion. The impact of the attack was critically significant not only for the amount of goods being transported on a daily basis, but also for the major disruption it caused on its port-to-port communications and digital applications.

Without a doubt, the recent cyber-attack unraveled key vulnerabilities and plausible negligence given Maersk’s position as the world biggest shipping line and also, operator of 76 ports via its APM Terminals division. The Danish firm reported, “We can confirm that Maersk has been hit as part of a global cyber-attack named Petya on the 27 June, 2017. IT systems are down across multiple sites and select business units…We have contained the issue and are working on a technical recovery plan with key IT-partners and global cyber security agencies”.

It is difficult to ascertain the exact reasons why Maersk fell victim to such a criminal manoeuvre without having a look at its computer systems and IT capabilities. Nonetheless, it does beg the question: how does one of the largest container shipping companies in the world, which beyond doubt, invests huge amounts of money on IT developments, get brutally infected? During a live interview, Vincent Clerc, Maersk Line’s Chief Commercial Officer, explained that while continuous security assessments and further investigations were still in progress, the firm had been focusing on devoting more resources to business continuity and adequate protection for its customers.

As part of its response to the attach, Maersk enabled the use of manual processes and INNTRA to guarantee continuity and deter customers to keep facing disruptions. After a week of backlog and assessments for full transparency, major digital applications and APM Terminals resumed operations and productivity levels reached normality. Yet, as opposed to other insiders who failed to enumerate the causes that made Maersk a clear victim, surveys and industry experts exposed their views on this topic. These views commonly comprise a mixture of technological, human, and digital failings.

In its Crew Connectivity 2015 survey, Futurenautics found that, “Only 12% of crew had received any form of cyber security training. In addition, only 43% of crew were aware of any cyber-safe policy or cyber hygiene guidelines provided by their company for personal web-browsing or the use of removable media (USB memory sticks etc.). Perhaps unsurprisingly, given the above statistics, fully 43% of crew reported that they had sailed on a vessel that had become infected with a virus or malware”.

Phil Tinsley, Manager, Maritime Security at Bimco said, “It is the human element which we believe is the gravest concern. Why? There is unfortunately still a lack of awareness of the potential severity of a malicious cyber security attack on board a ship. Information technology systems and operational technological system protocols are often not fully understood by all ships’ crews. There is potential for an incident to occur through negligence, misuse or even deliberate acts when dealing with on board systems, which are connected”.

Digital innovations are also the newest game changers that are exposing shipping companies to new vulnerabilities. With more than 600 vessels operating in around 130 countries, Maersk created the “Maersk Advanced Analytics Team” in order to improve operational efficiencies, fuel savings, and customer service. Yet, digitalisation absorbs new issues; vessels are increasingly using systems that rely on data usage and analytics that bring a greater risk of unauthorised access or malicious attacks to ships’ systems and networks.

“One of the biggest challenges I see in the shipping and maritime sector is the pace of digitalisation in the industry versus the ever-changing threat landscape. Today a lot of critical functions, commercial and business operations must meet the digitalisation demand and this has forced industries, including the shipping and maritime sector into meeting demands, which potentially changes the way security was built and designed to secure infrastructure, protect data, customers and employees,” said Jens Monrad, Senior Intel Analyst, at FireEye iSight.

The shipping industry is waking up to a new era of technological innovations. Even so, there is an evident lack of maturity, even for the largest shipping firms, to develop a technical checklist of preventive actions that should be followed to avoid potential cyber threats. Transforming obsolete processes and fragmented supply chains into fully protected, integrated systems requires pragmatism and caution to say the least. Lars Jensen, CEO and partner, at SeaIntelligence Consulting, added:

“Many shipping companies wrongfully believe that cyber security has to be expensive. The reality is that often simple, inexpensive, actions will raise security significantly both on the landside and on the vessels. Often it is a matter of ensuring that systems get updated in a timely fashion, business processes are changed slightly, networks are properly configured, security features are tested and users properly trained.”

Valour Consultancy ratifies the importance that cyber awareness has in todays’ shipping world. By implication, cyber security should be considered vertically and horizontally, from top management ashore to onboard crews, assigning resources and responsibilities that could create a new culture based on continuous risk assessments and operational efficiencies. Perhaps, the Danish conglomerate failed to capture the educational/training benefits that cyber aware programs bring to the industry, which is the reason why many business units across the organisation were vulnerable to the crime.

Ongoing risk assessments should sequentially be employed once awareness reaches optimal results. Every employee should be aware of any potential risk and internal vulnerabilities, carry out continuous assessments and identify solutions in the event of an attack, increase protection methods and mitigate the impact of exposure, implement contingency plans (ideally non-electronic ones against data deletion and shutdown of IT systems), and follow a recovery plan that covers the inspection, detection, and deletion of threats. Following those actions is essential to minimise the risk of loss of data, revenue, and reputation.

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[fusion_builder_container hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" overlay_color="" video_preview_image="" border_size="" border_color="" border_style="solid" padding_top="" padding_bottom="" padding_left="" padding_right=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" border_position="all" spacing="yes" background_image="" background_repeat="no-repeat" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="small-visibility,medium-visibility,large-visibility" center_content="no" last="no" min_height="" hover_type="none" link=""][fusion_text] As the shipping industry keeps moving slowly to new forms of technology and digital innovations, criminality has started to make a huge impact on the ocean supply chain. On June 27th, A.P. Moller-Maersk fell victim to a coordinated international cyber-attack, which affected several of its businesses across the world, causing the shutdown of IT systems across its business units against virtual intrusion. The impact of the attack was critically significant not only for the amount of goods being transported on a daily basis, but also for the major disruption it caused on its port-to-port communications and digital applications. Without a doubt, the recent cyber-attack unraveled key vulnerabilities and plausible negligence given Maersk’s position as the world biggest shipping line and also, operator of 76 ports via its APM Terminals division. The Danish firm reported, “We can confirm that Maersk has been hit as part of a global cyber-attack named Petya on the 27 June, 2017. IT systems are down across multiple sites and select business units…We have contained the issue and are working on a technical recovery plan with key IT-partners and global cyber security agencies”. It is difficult to ascertain the exact reasons why Maersk fell victim to such a criminal manoeuvre without having a look at its computer systems and IT capabilities. Nonetheless, it does beg the question: how does one of the largest container shipping companies in the world, which beyond doubt, invests huge amounts of money on IT developments, get brutally infected? During a live interview, Vincent Clerc, Maersk Line’s Chief Commercial Officer, explained that while continuous security assessments and further investigations were still in progress, the firm had been focusing on devoting more resources to business continuity and adequate protection for its customers. As part of its response to the attach, Maersk enabled the use of manual processes and INNTRA to guarantee continuity and deter customers to keep facing disruptions. After a week of backlog and assessments for full transparency, major digital applications and APM Terminals resumed operations and productivity levels reached normality. Yet, as opposed to other insiders who failed to enumerate the causes that made Maersk a clear victim, surveys and industry experts exposed their views on this topic. These views commonly comprise a mixture of technological, human, and digital failings. In its Crew Connectivity 2015 survey, Futurenautics found that, “Only 12% of crew had received any form of cyber security training. In addition, only 43% of crew were aware of any cyber-safe policy or cyber hygiene guidelines provided by their company for personal web-browsing or the use of removable media (USB memory sticks etc.). Perhaps unsurprisingly, given the above statistics, fully 43% of crew reported that they had sailed on a vessel that had become infected with a virus or malware”. Phil Tinsley, Manager, Maritime Security at Bimco said, “It is the human element which we believe is the gravest concern. Why? There is unfortunately still a lack of awareness of the potential severity of a malicious cyber security attack on board a ship. Information technology systems and operational technological system protocols are often not fully understood by all ships’ crews. There is potential for an incident to occur through negligence, misuse or even deliberate acts when dealing with on board systems, which are connected”. Digital innovations are also the newest game changers that are exposing shipping companies to new vulnerabilities. With more than 600 vessels operating in around 130 countries, Maersk created the “Maersk Advanced Analytics Team” in order to improve operational efficiencies, fuel savings, and customer service. Yet, digitalisation absorbs new issues; vessels are increasingly using systems that rely on data usage and analytics that bring a greater risk of unauthorised access or malicious attacks to ships’ systems and networks. “One of the biggest challenges I see in the shipping and maritime sector is the pace of digitalisation in the industry versus the ever-changing threat landscape. Today a lot of critical functions, commercial and business operations must meet the digitalisation demand and this has forced industries, including the shipping and maritime sector into meeting demands, which potentially changes the way security was built and designed to secure infrastructure, protect data, customers and employees,” said Jens Monrad, Senior Intel Analyst, at FireEye iSight. The shipping industry is waking up to a new era of technological innovations. Even so, there is an evident lack of maturity, even for the largest shipping firms, to develop a technical checklist of preventive actions that should be followed to avoid potential cyber threats. Transforming obsolete processes and fragmented supply chains into fully protected, integrated systems requires pragmatism and caution to say the least. Lars Jensen, CEO and partner, at SeaIntelligence Consulting, added: “Many shipping companies wrongfully believe that cyber security has to be expensive. The reality is that often simple, inexpensive, actions will raise security significantly both on the landside and on the vessels. Often it is a matter of ensuring that systems get updated in a timely fashion, business processes are changed slightly, networks are properly configured, security features are tested and users properly trained.” Valour Consultancy ratifies the importance that cyber awareness has in todays’ shipping world. By implication, cyber security should be considered vertically and horizontally, from top management ashore to onboard crews, assigning resources and responsibilities that could create a new culture based on continuous risk assessments and operational efficiencies. Perhaps, the Danish conglomerate failed to capture the educational/training benefits that cyber aware programs bring to the industry, which is the reason why many business units across the organisation were vulnerable to the crime. Ongoing risk assessments should sequentially be employed once awareness reaches optimal results. Every employee should be aware of any potential risk and internal vulnerabilities, carry out continuous assessments and identify solutions in the event of an attack, increase protection methods and mitigate the impact of exposure, implement contingency plans (ideally non-electronic ones against data deletion and shutdown of IT systems), and follow a recovery plan that covers the inspection, detection, and deletion of threats. Following those actions is essential to minimise the risk of loss of data, revenue, and reputation. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

The Market for In-Flight Connectivity on VIP and Business Aircraft

Last month, Valour Consultancy released its latest analysis of the market for in-flight connectivity on VIP and business aircraft. The study draws upon our considerable expertise in analysing the adoption of in-flight connectivity (IFC) in commercial aviation and is the result of a rigorous primary research phase consisting of numerous interviews with key players from across the industry.

The report finds that, globally, there were 19,131 IFC systems on VIP and business aircraft at the end of 2016. L-band was by far and away the most dominant connectivity technology with cumulative connections representing 75% of the total. A large proportion of this is accounted for by Iridium, whose systems support in-flight satellite phone operations on almost 10,000 aircraft. The remainder of L-band connections are accounted for by Inmarsat, which has seen adoption of SwiftBroadband (SBB) pick up rapidly in recent years.

Uptake of Gogo’s Air-to-Ground (ATG) options has been similarly brisk in recent years. By the end 2013, there were 2,047 terminals connected to the Gogo Biz network. This had increased to 4,172 three years later.

ATG and L-band both have room for further growth in coming years, too.

With respect to ATG, there will likely be continued interest in Gogo’s solutions over the course of the forecast period (2016 to 2026), especially now that the company is close to commercial launch of Gogo Biz 4G and plans to have its next-generation ATG network, which will offer peak network speeds of more than 100 Mbps, up and running by 2018.

When you add SmartSky Networks and its 4G network into the mix, as well as the Inmarsat European Aviation Network (EAN), it is apparent that there remains plenty of potential for ATG technology. Though it is yet to be officially confirmed whether the EAN will be used by the business aviation industry, there appears to be consensus that it would work very well on board private aircraft.

While Inmarsat is reportedly seeing a lot of interest from operators looking to upgrade from lower-bandwidth IFC systems to Jet ConneX, the company is also working on increasing the performance of the L-band technology used for SBB. Iridium, meanwhile, is currently prepping for the launch of the second batch of Iridium NEXT satellites, which are due for lift off on the 25th June. Upon completion of the constellation in 2018 and the start of commercial service one year later, the so-called Iridium Certus solution will likely find favour among operators of those small- and medium-sized business jets less suited to the fitment of bulky radomes.

Adoption of Ku-band technology on VIP and business aircraft appears to have an equally rosy future – a view presumably shared by new market entrants, Panasonic Avionics and Global Eagle, as well as Gogo, which recently announced its first business aviation customer for 2Ku. Right now, there are some 500 Ku-band systems in operation on VIP and business aircraft and the vast majority of these are accounted for by ViaSat and its Yonder system (although it’s no longer referred to as Yonder, to shift the focus towards the ViaSat brand). Panasonic and Global Eagle representatives have not been shy in admitting that they are gunning for ViaSat in this market.

However, ViaSat appears content to focus on ensuring existing clients migrate to its Ka-band technology – a sensible strategy given the ongoing success of its Exede in the Air product in commercial aviation. Now that ViaSat-2 has finally launched after several setbacks, there will soon be a considerable amount of additional Ka-band capacity for business jets flying between North America and Europe. Additionally, the company says that it will have its three planned ViaSat-3 satellites operational around 2020 making ViaSat the only rival provider of global Ka-band capacity to Inmarsat.

By 2020, ViaSat could have some catching up to do if the take up of Jet ConneX is anything to go by. Having debuted in November 2016, there were an estimated 30 aircraft fitted with the solution by the turn of the year. Inmarsat has previously stated that it expects to see 150 Jet ConneX-equipped aircraft by the end of 2017 and has a goal of connecting 3,000 jets by 2020 (although it is apparently now upgrading its forecasts).

Overall, we are forecasting that by the end of 2026, there will be 37,710 IFC systems installed on VIP and business aircraft – almost double the current total. The reader should, of course, note that these numbers do not refer to the number of aircraft with IFC. In fact, it is estimated that today, around 1,000 to 2,000 aircraft with Iridium satellite phones also make use of Inmarsat’s SBB network. Likewise, Gogo has publicly reported 4,172 connections to its Gogo Biz service and acts as the service provider for 5,286 installed Iridium terminals as well as 214 installed SBB terminals (a total of 9,972 connections – all accurate and up to date at the end of 2016). However, the firm delivers services to 7,400 aircraft implying many are flying with more than one system installed.

The following factors have driven interest in IFC on VIP and business aircraft and will continue to do so in future:

  • Owners of business aircraft fitted with connectivity equipment some time ago will be keener to take advantage of more recent advances in satellite and hardware technology.
  • The ‘Uber-isation’ of the private aviation industry is increasingly being talked about and with e-commerce replacing traditional methods of sourcing and booking a business jet, easy comparisons between different operators and aircraft means that customers can see where one aircraft has IFC and another doesn’t. This transparency will further encourage operators to improve their offerings.
  • As well as the increased comparison between business jets and their features because of new e-commerce initiatives, business aviation is having to compete with the rapid adoption of IFC in commercial air transport perhaps making a first class connected seat more attractive than a private jet with no in-flight Wi-Fi.
  • Competition is hotting up with the likes of Global Eagle, Panasonic Avionics, BizJetMobile and SmartSky Networks all new to the market or preparing to enter.
  • The launch of several new high throughput satellites (HTS) and the prospect of cheaper capacity and faster services is having an extremely positive effect on the market with service providers having inked several new deals in recent years.
  • The connected aircraft and e-Enablement is beginning to resonate more and more as a way to drive operational efficiencies and help underpin the IFC business case.

Some of the remaining challenges to more widespread adoption of IFC on VIP and business aircraft are as follows.

  • Production of new business jets has stagnated and consequently reduced the possibility of line-fit offerability deals for many IFC providers and limited their opportunities for growth.
  • Fitting an aircraft with a sizeable antenna to enable IFC impacts aerodynamics and increases fuel burn, thereby driving up operating costs. Additionally, many smaller business jets are currently unable to accommodate larger Ku- and Ka-band antennas on their fuselages.
  • Current generation Ku-/Ka-band systems lock operators into the service provider (so the hardware is not provider agnostic) and should there be a desire to switch, a very expensive refit ensues.
  • While commercial airlines tend to fly set routes at specific times of day, business jets are more sporadic. One day they may be flying domestically in the US, the next they may be making their way to China or Russia. This uncertainty means high-bandwidth IFC solutions that offer global coverage – which are currently few in number – are perhaps more compelling.
  • Many in the industry are concerned that as we move towards realising the vision of the fully-connected aircraft, the opportunity for cyberattacks will increase. The main worry seems to be that such systems will allow wrongdoers to control aircraft and manipulate commands issued to the aircraft. It should be noted that flight control systems are purposefully isolated from all other communications networks on-board the aircraft.
  • Selling an IFC service based on deployment events that have not happened is a significant challenge and operators understandably give much more credit to satellite assets in space than on paper. Further, a delay to the launch of any service has the potential to scare prospective customers away or send them into the arms of rivals. Unfortunately, such delays are all too commonplace for many much-anticipated IFC solutions.

Published in May 2017, “The Market for In-Flight Connectivity on VIP and Business Aircraft” provides an unrivalled insight and analysis into the current and future deployment of IFC on these aircraft. The number of IFC systems installed in 2016 is quantified with forecasts out to 2026 and data is segmented by fitment type, aircraft size, frequency band and geographic region with a full qualitative discussion of the key trends at play in support of this. The report also sizes the market for both service revenues and key enabling hardware, in addition to market share estimates for service providers and capacity providers. A chapter profiling key players is presented, too.

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[fusion_builder_container hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" overlay_color="" video_preview_image="" border_size="" border_color="" border_style="solid" padding_top="" padding_bottom="" padding_left="" padding_right=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" border_position="all" spacing="yes" background_image="" background_repeat="no-repeat" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="small-visibility,medium-visibility,large-visibility" center_content="no" last="no" min_height="" hover_type="none" link=""][fusion_imageframe image_id="4980|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="center" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]http://217.199.187.200/valourconsultancy.com/wp-content/uploads/2017/06/luxury-1961577_960_720-1.jpg[/fusion_imageframe][fusion_separator style_type="default" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text] Last month, Valour Consultancy released its latest analysis of the market for in-flight connectivity on VIP and business aircraft. The study draws upon our considerable expertise in analysing the adoption of in-flight connectivity (IFC) in commercial aviation and is the result of a rigorous primary research phase consisting of numerous interviews with key players from across the industry. The report finds that, globally, there were 19,131 IFC systems on VIP and business aircraft at the end of 2016. L-band was by far and away the most dominant connectivity technology with cumulative connections representing 75% of the total. A large proportion of this is accounted for by Iridium, whose systems support in-flight satellite phone operations on almost 10,000 aircraft. The remainder of L-band connections are accounted for by Inmarsat, which has seen adoption of SwiftBroadband (SBB) pick up rapidly in recent years. Uptake of Gogo’s Air-to-Ground (ATG) options has been similarly brisk in recent years. By the end 2013, there were 2,047 terminals connected to the Gogo Biz network. This had increased to 4,172 three years later. ATG and L-band both have room for further growth in coming years, too. With respect to ATG, there will likely be continued interest in Gogo’s solutions over the course of the forecast period (2016 to 2026), especially now that the company is close to commercial launch of Gogo Biz 4G and plans to have its next-generation ATG network, which will offer peak network speeds of more than 100 Mbps, up and running by 2018. When you add SmartSky Networks and its 4G network into the mix, as well as the Inmarsat European Aviation Network (EAN), it is apparent that there remains plenty of potential for ATG technology. Though it is yet to be officially confirmed whether the EAN will be used by the business aviation industry, there appears to be consensus that it would work very well on board private aircraft. While Inmarsat is reportedly seeing a lot of interest from operators looking to upgrade from lower-bandwidth IFC systems to Jet ConneX, the company is also working on increasing the performance of the L-band technology used for SBB. Iridium, meanwhile, is currently prepping for the launch of the second batch of Iridium NEXT satellites, which are due for lift off on the 25th June. Upon completion of the constellation in 2018 and the start of commercial service one year later, the so-called Iridium Certus solution will likely find favour among operators of those small- and medium-sized business jets less suited to the fitment of bulky radomes. Adoption of Ku-band technology on VIP and business aircraft appears to have an equally rosy future – a view presumably shared by new market entrants, Panasonic Avionics and Global Eagle, as well as Gogo, which recently announced its first business aviation customer for 2Ku. Right now, there are some 500 Ku-band systems in operation on VIP and business aircraft and the vast majority of these are accounted for by ViaSat and its Yonder system (although it's no longer referred to as Yonder, to shift the focus towards the ViaSat brand). Panasonic and Global Eagle representatives have not been shy in admitting that they are gunning for ViaSat in this market. However, ViaSat appears content to focus on ensuring existing clients migrate to its Ka-band technology – a sensible strategy given the ongoing success of its Exede in the Air product in commercial aviation. Now that ViaSat-2 has finally launched after several setbacks, there will soon be a considerable amount of additional Ka-band capacity for business jets flying between North America and Europe. Additionally, the company says that it will have its three planned ViaSat-3 satellites operational around 2020 making ViaSat the only rival provider of global Ka-band capacity to Inmarsat. By 2020, ViaSat could have some catching up to do if the take up of Jet ConneX is anything to go by. Having debuted in November 2016, there were an estimated 30 aircraft fitted with the solution by the turn of the year. Inmarsat has previously stated that it expects to see 150 Jet ConneX-equipped aircraft by the end of 2017 and has a goal of connecting 3,000 jets by 2020 (although it is apparently now upgrading its forecasts). Overall, we are forecasting that by the end of 2026, there will be 37,710 IFC systems installed on VIP and business aircraft – almost double the current total. The reader should, of course, note that these numbers do not refer to the number of aircraft with IFC. In fact, it is estimated that today, around 1,000 to 2,000 aircraft with Iridium satellite phones also make use of Inmarsat’s SBB network. Likewise, Gogo has publicly reported 4,172 connections to its Gogo Biz service and acts as the service provider for 5,286 installed Iridium terminals as well as 214 installed SBB terminals (a total of 9,972 connections – all accurate and up to date at the end of 2016). However, the firm delivers services to 7,400 aircraft implying many are flying with more than one system installed. The following factors have driven interest in IFC on VIP and business aircraft and will continue to do so in future:
  • Owners of business aircraft fitted with connectivity equipment some time ago will be keener to take advantage of more recent advances in satellite and hardware technology.
  • The ‘Uber-isation’ of the private aviation industry is increasingly being talked about and with e-commerce replacing traditional methods of sourcing and booking a business jet, easy comparisons between different operators and aircraft means that customers can see where one aircraft has IFC and another doesn’t. This transparency will further encourage operators to improve their offerings.
  • As well as the increased comparison between business jets and their features because of new e-commerce initiatives, business aviation is having to compete with the rapid adoption of IFC in commercial air transport perhaps making a first class connected seat more attractive than a private jet with no in-flight Wi-Fi.
  • Competition is hotting up with the likes of Global Eagle, Panasonic Avionics, BizJetMobile and SmartSky Networks all new to the market or preparing to enter.
  • The launch of several new high throughput satellites (HTS) and the prospect of cheaper capacity and faster services is having an extremely positive effect on the market with service providers having inked several new deals in recent years.
  • The connected aircraft and e-Enablement is beginning to resonate more and more as a way to drive operational efficiencies and help underpin the IFC business case.
Some of the remaining challenges to more widespread adoption of IFC on VIP and business aircraft are as follows.
  • Production of new business jets has stagnated and consequently reduced the possibility of line-fit offerability deals for many IFC providers and limited their opportunities for growth.
  • Fitting an aircraft with a sizeable antenna to enable IFC impacts aerodynamics and increases fuel burn, thereby driving up operating costs. Additionally, many smaller business jets are currently unable to accommodate larger Ku- and Ka-band antennas on their fuselages.
  • Current generation Ku-/Ka-band systems lock operators into the service provider (so the hardware is not provider agnostic) and should there be a desire to switch, a very expensive refit ensues.
  • While commercial airlines tend to fly set routes at specific times of day, business jets are more sporadic. One day they may be flying domestically in the US, the next they may be making their way to China or Russia. This uncertainty means high-bandwidth IFC solutions that offer global coverage – which are currently few in number – are perhaps more compelling.
  • Many in the industry are concerned that as we move towards realising the vision of the fully-connected aircraft, the opportunity for cyberattacks will increase. The main worry seems to be that such systems will allow wrongdoers to control aircraft and manipulate commands issued to the aircraft. It should be noted that flight control systems are purposefully isolated from all other communications networks on-board the aircraft.
  • Selling an IFC service based on deployment events that have not happened is a significant challenge and operators understandably give much more credit to satellite assets in space than on paper. Further, a delay to the launch of any service has the potential to scare prospective customers away or send them into the arms of rivals. Unfortunately, such delays are all too commonplace for many much-anticipated IFC solutions.
Published in May 2017, “The Market for In-Flight Connectivity on VIP and Business Aircraft” provides an unrivalled insight and analysis into the current and future deployment of IFC on these aircraft. The number of IFC systems installed in 2016 is quantified with forecasts out to 2026 and data is segmented by fitment type, aircraft size, frequency band and geographic region with a full qualitative discussion of the key trends at play in support of this. The report also sizes the market for both service revenues and key enabling hardware, in addition to market share estimates for service providers and capacity providers. A chapter profiling key players is presented, too. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

5 essential reasons offshore connectivity is a strategic necessity.

With growth and post-recession prosperity in the global maritime industry, the proclivity towards real-time solutions and operations is moving forward at a breakneck pace. Increasingly, major maritime segments are realising the importance of sea-to-shore communications. As a result, offshore connectivity has become a pivotal solution to costly remoteness and a lack of central supervision at sea.

To complement the contributions made by Virgil Labrador in his analysis of the Maritime Satellite Market, it is apposite to go back to the basics and outline five essential reasons why offshore connectivity is a strategic necessity for success.

Firstly, efficiencies play a role since many service providers have long offered a bridge to information flows between offshore and office locations. For instance, connected merchant vessels can allow for operational, maintenance, and emergency reports on a virtual platform. Similarly, oil production and exploration companies are constantly battling against the actual adversities of expanding their operations in deeper waters further away from shore and beyond the reach of terrestrial communications facilities.

Satellite connectivity provides a seamless use of Supervisory Control and Data Acquisition (SCADA), as well as real-time transmission of drilling data and asset monitoring to headquarters. High Throughput Satellite (HTS) communications enable vessels to transmit data back to headquarters, which, in return, provides competitive advantages during the decision-making process, stakeholder management, and e-training (ECDIS) resources.

Another reason is coverage control developed throughout the global maritime sector. Improvements of service coverage and bandwidth capacity are demanded not only for the application of route planning, asset diagnostics, and weather applications, but also for infotainment. Service quality is at stake when multiple users aboard are using bandwidth for non-business purposes. Two examples of innovative solutions comprise web compression to improve data speed and bandwidth utilisation, and captive portal services to accommodate access and prioritise applications.

Owing to the advanced mobility and spatial range of vessels across the ocean, maritime industries are constantly coping with vast collections of data and superior means of connectivity-atlas development at seaports, near ports, and deep water. Over the years, service providers, such as Harris CapRock, have applied full integration of 24/7 customer connectivity and personalised experience through Automatic Beam Switching (ABS), whilst Datasat Communications provides professional integration of different communication networks into a hybrid system for major satellite, wireless, and fibre functionalities.

Effective data management is also another reason offshore connectivity increases productivity at remote areas. Large amounts of collected data have grown massively over the years, to the point that service providers are facilitating customers with superior extraction and conversion of this data. Through careful standardisation, consumable information can be distributed to many different users – even those who differ on data requirements, objectives, and locations – in a timely manner.

Interestingly, the management of data also conducts customers to consider firewall filtering and privacy to combat software intromissions from other non-authorised intruders. Many VSAT solutions, for example, enables users to maximise bandwidth through the use of filtering and traffic shaping solutions to guarantee secure utilisation of data and confidentiality.

Adhering to the revolution of technology and communications in today’s highly connected world, smart devices bring a newly added reason for offshore connectivity in the maritime sector. The use of smart gadgets and W-iFi hotspots are also acting as a complementary form of transferring data with satisfactory improvements of reliability, coverage, and capacity. In hostile environments, for example, crews on oil platforms and rigs, are expecting same levels of connectivity at remote locations as they get when they stay ashore.

As Hans Vestberg, President and CEO of Ericsson, remarked when his firm announced a partnership with Maersk Line Operations in 2012, “We’re proud to be able to connect Maersk Line’s fleet with our technology. We believe in a Networked Society, where connectivity will only be the starting point for new ways of innovating, collaborating and socializing. The result will be automated and simplified processes, higher productivity, real-time information allowing quicker, more informed decision making and problem solving.”

Finally, crew welfare is one of the most important reasons offshore connectivity is not merely a strategic trend in the maritime sector. Precisely, The 2015 Crew Connectivity Survey, undertaken by Futurenautics Research, supplied important figures to the inclusion of crew morale as a core business value. At recruitment, 73% of respondents said that the level of crew communications services provided onboard did influence their decision about which shipping company they work for.

The Maritime Labour Convention, which went into effect in August 2013 and includes guidelines on how consideration should be given to include “reasonable access to ship-to-shore telephone communications, and email and Internet facilities”, has undoubtedly played a role in ship-owners placing a greater emphasis on improving crew welfare.

Likewise, there has been profound a shift from safety and security training to career opportunities onboard. Crews of all ranks are taking on training as a reflection of their career goals and not just simple compliance. In the near future, people will be demanding huge efforts to the provision of a learning path that guarantees communication, stress reduction, and field expertise onboard.

In many respects, maritime communications are providing companies the power to deliver the bandwidth for operational success, crew happiness, coverage control, data management, and smart device connectivity, all at the same time. The question is whether network innovations will drive the maritime sector to a new favourable need of infrastructure, coverage and capacity that helps global communications to keep everyone connected.

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[fusion_builder_container hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" overlay_color="" video_preview_image="" border_size="" border_color="" border_style="solid" padding_top="" padding_bottom="" padding_left="" padding_right=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" border_position="all" spacing="yes" background_image="" background_repeat="no-repeat" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="small-visibility,medium-visibility,large-visibility" center_content="no" last="no" min_height="" hover_type="none" link=""][fusion_imageframe image_id="5011|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="center" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]http://217.199.187.200/valourconsultancy.com/wp-content/uploads/2017/03/trade-1963518_1920-1024x719-1.jpg[/fusion_imageframe][fusion_separator style_type="default" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text columns="" column_min_width="" column_spacing="" rule_style="default" rule_size="" rule_color="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""] With growth and post-recession prosperity in the global maritime industry, the proclivity towards real-time solutions and operations is moving forward at a breakneck pace. Increasingly, major maritime segments are realising the importance of sea-to-shore communications. As a result, offshore connectivity has become a pivotal solution to costly remoteness and a lack of central supervision at sea. To complement the contributions made by Virgil Labrador in his analysis of the Maritime Satellite Market, it is apposite to go back to the basics and outline five essential reasons why offshore connectivity is a strategic necessity for success. Firstly, efficiencies play a role since many service providers have long offered a bridge to information flows between offshore and office locations. For instance, connected merchant vessels can allow for operational, maintenance, and emergency reports on a virtual platform. Similarly, oil production and exploration companies are constantly battling against the actual adversities of expanding their operations in deeper waters further away from shore and beyond the reach of terrestrial communications facilities. Satellite connectivity provides a seamless use of Supervisory Control and Data Acquisition (SCADA), as well as real-time transmission of drilling data and asset monitoring to headquarters. High Throughput Satellite (HTS) communications enable vessels to transmit data back to headquarters, which, in return, provides competitive advantages during the decision-making process, stakeholder management, and e-training (ECDIS) resources. Another reason is coverage control developed throughout the global maritime sector. Improvements of service coverage and bandwidth capacity are demanded not only for the application of route planning, asset diagnostics, and weather applications, but also for infotainment. Service quality is at stake when multiple users aboard are using bandwidth for non-business purposes. Two examples of innovative solutions comprise web compression to improve data speed and bandwidth utilisation, and captive portal services to accommodate access and prioritise applications. Owing to the advanced mobility and spatial range of vessels across the ocean, maritime industries are constantly coping with vast collections of data and superior means of connectivity-atlas development at seaports, near ports, and deep water. Over the years, service providers, such as Harris CapRock, have applied full integration of 24/7 customer connectivity and personalised experience through Automatic Beam Switching (ABS), whilst Datasat Communications provides professional integration of different communication networks into a hybrid system for major satellite, wireless, and fibre functionalities. Effective data management is also another reason offshore connectivity increases productivity at remote areas. Large amounts of collected data have grown massively over the years, to the point that service providers are facilitating customers with superior extraction and conversion of this data. Through careful standardisation, consumable information can be distributed to many different users - even those who differ on data requirements, objectives, and locations - in a timely manner. Interestingly, the management of data also conducts customers to consider firewall filtering and privacy to combat software intromissions from other non-authorised intruders. Many VSAT solutions, for example, enables users to maximise bandwidth through the use of filtering and traffic shaping solutions to guarantee secure utilisation of data and confidentiality. Adhering to the revolution of technology and communications in today’s highly connected world, smart devices bring a newly added reason for offshore connectivity in the maritime sector. The use of smart gadgets and W-iFi hotspots are also acting as a complementary form of transferring data with satisfactory improvements of reliability, coverage, and capacity. In hostile environments, for example, crews on oil platforms and rigs, are expecting same levels of connectivity at remote locations as they get when they stay ashore. As Hans Vestberg, President and CEO of Ericsson, remarked when his firm announced a partnership with Maersk Line Operations in 2012, "We're proud to be able to connect Maersk Line's fleet with our technology. We believe in a Networked Society, where connectivity will only be the starting point for new ways of innovating, collaborating and socializing. The result will be automated and simplified processes, higher productivity, real-time information allowing quicker, more informed decision making and problem solving." Finally, crew welfare is one of the most important reasons offshore connectivity is not merely a strategic trend in the maritime sector. Precisely, The 2015 Crew Connectivity Survey, undertaken by Futurenautics Research, supplied important figures to the inclusion of crew morale as a core business value. At recruitment, 73% of respondents said that the level of crew communications services provided onboard did influence their decision about which shipping company they work for. The Maritime Labour Convention, which went into effect in August 2013 and includes guidelines on how consideration should be given to include “reasonable access to ship-to-shore telephone communications, and email and Internet facilities”, has undoubtedly played a role in ship-owners placing a greater emphasis on improving crew welfare. Likewise, there has been profound a shift from safety and security training to career opportunities onboard. Crews of all ranks are taking on training as a reflection of their career goals and not just simple compliance. In the near future, people will be demanding huge efforts to the provision of a learning path that guarantees communication, stress reduction, and field expertise onboard. In many respects, maritime communications are providing companies the power to deliver the bandwidth for operational success, crew happiness, coverage control, data management, and smart device connectivity, all at the same time. The question is whether network innovations will drive the maritime sector to a new favourable need of infrastructure, coverage and capacity that helps global communications to keep everyone connected. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]