KVH Industries, Inc., (Nasdaq:KVHI), is driving a sea change in the
way that global maritime fleets are using broadband at sea. The
company’s usage-based airtime plans now represent a majority of
users on KVH’s global satellite network, mini-VSAT Broadbandsm,
which continues to be the market share leader in maritime
VSAT.1
In recent months, many of KVH’s largest and most important fleet
customers have chosen usage-based plans—including Open plans, the
newest set of usage-based airtime plans offered by KVH. Examples
include:
- BW, one of the world’s leading global maritime groups, reached
agreement with KVH to switch from an unlimited airtime plan to
KVH’s Open plans for several LNG and LPG vessels that have
TracPhone® V11-IP systems onboard.
- Seaspan, a leading independent owner, operator, and manager of
containerships, opted for KVH’s Open plans for global connectivity
for 35 vessels, which have TracPhone V11-IP systems installed.
- SMIT Lamnalco, a major European maritime operator, selected and
is currently conducting a field trial of KVH’s mini-VSAT Broadband
service with usage-based airtime plans for approximately 100
vessels. KVH’s TracPhone V3-IP systems will be used on the
vessels.
KVH’s usage-based plans provide maritime customers with the
fastest speeds on the network, regardless of how much data they
have committed to on a monthly basis. This is in stark contrast to
the standard practice in the maritime industry of offering
speed-based plans, which deliver the fastest airtime speeds only to
the customers buying the largest airtime packages.
“We are excited about the success of all of our usage-based
plans, particularly the new Open plans,” says Martin Kits van
Heyningen, CEO of KVH. “When we introduced the Open plans nearly a
year ago, our intent was to offer our customers the fastest
possible speeds at reasonable prices while giving them control over
their consumption with a set of new cloud-based bandwidth
management tools. Both existing and new customers are adopting the
plans, recognizing that they can control and manage costs, while
fast data speeds enable them to operate more efficiently.” A key
reason that global fleets are selecting KVH’s Open plans, which can
be used with KVH’s TracPhone V7-IP and TracPhone V11-IP, is the
improved user experience of having consistent broadband data speeds
of 3-4 Mbps. With competing VSAT service providers, research has
shown that broadband connection speeds for a vessel that typically
uses 50 GB of data per month can average only 160 Kbps, not much
faster than outdated dial-up connections.2 “With KVH’s Open plans
delivering speeds of 3-4 Mbps, we can provide the average VSAT
customer with a user experience that makes the service they’ve been
getting from other providers seem like something out of the digital
stone age,” says Mr. Kits van Heyningen. Transparency in bandwidth
management is another of the keys to the success of KVH’s
usage-based plans. To ensure that vessel operators know exactly how
much broadband data a given vessel is using, KVH developed a set of
network management services as part of the myKVHTM web portal. This
powerful, secure tool is designed to provide a simple way for ship
operators and managers to monitor each vessel’s data-usage status,
allocate usage to individual users or tasks onboard, separate crew
and operational data usage, and set email and SMS text alerts to
help reduce the possibility of “bill shock.” KVH’s complete
maritime communications solution includes the mini-VSAT Broadband
satellite network, which provides broadband connectivity to
thousands of vessels worldwide; the TracPhone V-IP series advanced
satellite communications antenna systems; the IP-MobileCastTM
content delivery service for delivering operations and
entertainment content to vessels via multicasting technology;
leading news, sports, TV, movie, and music content from KVH Media
Group; extensive maritime training programs from VideotelTM; and,
the KVH OneCareTM comprehensive global support program. Taken
together, the company refers to the complete solution under the
Power of OneTM banner. Note to Editors: For more information about
KVH’s mini-VSAT Broadband service with usage-based airtime plans,
visit the KVH website. High-resolution images of KVH products are
available at the KVH Press Room Image Library.1KVH is the world’s
No. 1 maritime VSAT supplier as measured by vessels equipped with
mini-VSAT Broadband service, according to NSR’s Maritime SATCOM
Markets, 4th Edition, June 2016, and the COMSYS Maritime VSAT
Report, 4th Edition, March 2015.2“Understanding and
Benefiting from Maritime Communications,” November 2015,
Dualog.
About KVH Industries, Inc.KVH Industries, Inc.,
is a leading provider of in-motion satellite TV and communications
systems, having designed, manufactured, and sold more than 200,000
mobile satellite antennas for applications on vessels, vehicles,
and aircraft. 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 market-leading provider of
training films, computer-based training and e-Learning. 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 press release contains forward-looking
statements that involve risks and uncertainties. For example,
forward-looking statements include statements regarding our
anticipated revenue, competitive positioning, profitability,
product orders, and the functionality, characteristics, quality,
and performance of KVH products and services. The actual results we
achieve could differ materially from the statements made in this
press release. Factors that might cause these differences include,
but are not limited to: our competitive bid for the 100-vessel
mini-VSAT Broadband contract described above is presently subject
only to a letter of intent, which could expire without a definitive
agreement or could result in an agreement with less favorable
terms; we may not satisfy the minimum criteria set forth in the
letter of intent; potential reduced sales to companies in or
dependent upon the turbulent oil and gas industry; the impact of
extended economic weakness on the sale and use of marine vessels;
the need to increase sales of the TracPhone V-IP series products
and related services to improve airtime gross margins; the need
for, or delays in, qualification of products to customer or
regulatory standards; unanticipated declines or changes in customer
demand, due to economic, seasonal, and other factors, particularly
with respect to the TracPhone V-IP series, including with respect
to new pricing models; recent increases in airtime termination
rates and lower unit sales in our mobile business; and increased
price and service competition in the mobile communications markets.
These and other factors are discussed in more detail in KVH’s most
recent Form 10-Q filed with the SEC. KVH does not assume any
obligation to update its forward-looking statements to reflect new
information and developments.
KVH, TracPhone, myKVH, IP-MobileCast, Videotel,
KVH OneCare, and Power of One are trademarks of KVH Industries,
Inc. mini-VSAT Broadband is a service mark of KVH Industries,
Inc.
For further information, please contact:
Jill Connors
Media Relations & Industry Analyst Manager
KVH Industries, Inc.
Tel: +1 401 851 3824
jconnors@kvh.com
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