The mini-VSAT Broadbandsm service of KVH Industries, Inc.,
(Nasdaq:KVHI) has been cited in a newly published report as the
market share leader in the maritime VSAT industry by vessels in
service. "The COMSYS Maritime VSAT Report, 4th Edition" estimates
that KVH's mini-VSAT Broadband customers account for 17.9% of the
vessels using maritime VSAT service, as of the end of 2014.
According to COMSYS, KVH's market share is nearly double the
nearest competitor, whose customers account for an estimated 9.6%
of vessels using VSAT service. "KVH's success in building the
largest installed base of vessels over little more than six years
from a standing start illustrates how powerful the combination of a
smaller antenna, easier installation and better onboard integration
can be," reports Simon Bull, the well-respected VSAT industry
analyst at COMSYS, the U.K.-based research firm specializing in the
satellite communications market. "The past two years have seen the
company introduce a range of attractive value-added services and
invest heavily in content and integration in an impressive strategy
to establish itself as much more than just a bandwidth reseller."
KVH launched the mini-VSAT Broadband service in 2007 and designed
it from the ground up to be a next-generation maritime satellite
communications solution, utilizing advanced spread spectrum
technology that enables KVH's TracPhone® V-IP antenna systems to be
85% smaller than competing maritime VSAT products, thereby reducing
the installation time and cost for maritime customers. The
mini-VSAT Broadband service provides fully global coverage from 24
satellite transponders; is very fast, providing Internet downloads
as fast as 4 Mbps; and has low latency, making it ideal for new
applications being adopted by leading ship management companies.
"It is great to see one of the most highly regarded research
reports in the satellite communications industry quantify KVH's
success in winning the maritime VSAT market leadership position,"
says Martin Kits van Heyningen, KVH chief executive officer. "We've
listened carefully to our customers and tried to continually
improve our service to provide them with the connectivity and
content services they need to add value for their customers,
enhance their efficiency, and keep their crews happy. Our strategy
is clearly paying off, as 2014 was a record-breaking year for the
company, during which our global mini-VSAT Broadband network
delivered more than 500 terabytes of data and 25 million minutes of
voice calls to our customers around the world." To better serve
maritime customers in their need to affordably bring entertainment
and operations content onboard ships at sea, KVH developed the
IP-MobileCastTM content delivery service. This service utilizes
multicasting technology to broadcast large files to all ships at
once, an efficient and cost-effective delivery method that stands
in stark contrast to most competitors' current practice of
unicasting files individually to each vessel and charging them for
the satellite service consumed. With IP-MobileCast, customers pay a
monthly subscription fee for entertainment and news content –
new-release Hollywood movies and TV shows, for example – but do not
pay a data transmission fee. KVH is also collaborating with leading
maritime navigation and weather content providers such as Jeppesen,
Transas, and AWT to deliver electronic charts and high-resolution
weather data via the IP-MobileCast content delivery service. Aware
of the importance of seafarer safety and professional
qualifications, KVH also plans to provide multicasting delivery of
maritime training content from VideotelTM, a leader in maritime
training and a company that KVH acquired in July 2014.
COMSYS notes strong overall growth in the maritime VSAT market,
estimating close to 21,000 vessels were equipped with maritime VSAT
as of the end of 2014. It attributes this growth to changing
attitudes within shipping companies about the return on investment
of satellite connectivity, and to the realization that improved
communications and Internet access for crews can save them money.
"VSAT communications seems to have moved from being a cost centre
to a cost saver and a service that will actually be key to helping
the commercial maritime operators recover from the disastrous
economic situation that has been experienced since 2009," Mr. Bull
reports. "It is all too easy to dismiss crew welfare as being
something 'nice to have' and therefore a cost that can be easily
dodged, but the fact is that recruitment and training cost money
and increasingly these expenses are becoming significant.
Many shipping companies experience annual staff turnovers in
excess of 35% and, in one of our interviews with a major operator,
a shipping company which had finally installed VSAT discovered that
their retention rate had skyrocketed to 85%, easily justifying the
additional cost of a VSAT service." He adds: "Surpassing the 20,000
mark is considered to be a tipping point for the industry with the
target now probably around 50,000 vessels over the next few years.
Not only do we see vessel growth across the major segments, but
bandwidth demand also continues to rise." The comprehensive
COMSYS report includes a total competitive review of all leading
maritime VSAT companies, antenna and modem manufacturers, and
satellite owners, plus detailed market analysis and customer
information based on direct interviews. Note to Editors: For more
information about "The COMSYS Maritime VSAT Report, 4th
Edition," please visit the COMSYS website, www.comsys.co.uk.
For more information about KVH's mini-VSAT Broadband service,
TracPhone V-IP series antenna systems, and IP-MobileCast content
delivery service, visit the KVH website, www.minivsat.com/vip.
High-resolution, press-ready images of KVH products are available
at the KVH Press Room Image Library,
www.kvh.com/press-room/image-library.
About COMSYS
COMSYS is a U.K.-based market analysis firm whose areas of
expertise include satellite technology, marketing and competitive
analysis; technical and commercial due diligence and satellite
capacity issues; and broadband and multimedia markets. COMSYS
produces its highly regarded market reports based on primary
research, in-depth knowledge of the issues, technologies,
companies, and people in the industry. Its senior consultant Simon
Bull, the primary author of the company's Maritime VSAT Report, has
specialized in the VSAT market since 1985 and advises clients
worldwide on all aspects of VSAT systems and satellite systems. In
1997, Mr. Bull was instrumental in forming the Global VSAT Forum
(GVF), an industry organization that represents more than 140 of
the leading manufacturers and operators of VSAT systems around the
world. About KVH Industries, Inc.
KVH Industries is a leading provider of in-motion satellite TV
and communications systems, having designed, manufactured, and sold
more than 175,000 mobile satellite antennas for applications on
vessels, vehicles, and aircraft, and more than 5,000 TracPhone
systems for its mini-VSAT Broadband service. KVH is also a leading
news, music, and entertainment content provider to many industries
including maritime, retail, and leisure. Videotel, a KVH company,
is a leading provider of maritime training. KVH is based in
Middletown, RI, with research, development, and manufacturing
operations in Middletown, RI, and Tinley Park, IL. The company's
global presence includes offices in Belgium, Brazil, Cyprus,
Denmark, Hong Kong, Japan, the Netherlands, Norway, Singapore, and
the United Kingdom.
This release may contain certain forward-looking statements that
involve risks and uncertainties. Forward-looking statements
include, for example, the functionality, characteristics, quality
and performance of KVH's services and technology; anticipated
innovation and product development; and customer preferences,
requirements and expectations. The actual results could differ
materially. Factors that may cause such differences include, among
others, those discussed in KVH's most recent Form 10-K filed with
the SEC. KVH does not assume any obligation to update its
forward-looking statements to reflect new information or
developments.
KVH, TracPhone, IP-MobileCast, and Videotel are trademarks of
KVH Industries, Inc. mini-VSAT Broadband is a service mark of KVH
Industries, Inc. All other trademarks are the property of their
respective companies.
CONTACT: Jill Connors
Media & Communications Manager
KVH Industries, Inc.
401-851-3824
jconnors@kvh.com
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