Page 32: of Maritime Reporter Magazine (July 2000)

Station 12 Strives

To Corner Satcom

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The competitive satellite communica- tions market has taken an additional step toward consolidation, with Station 12 — an independent operating business owned 65 percent by KPN (Royal Dutch

Telecom) and 35 percent by Telstra — leading the way having the intention of cornering the market. Station 12 recent- ly outlined its strategy to double its size in the next three years, both through organic growth and acquisitions.

Station 12 already claims to have 24 percent of the competitive Inmarsat mar- itime and mobile satellite communica- tions sector, with current annual sales of $215 million. This is expected to rise to $500 million by 2003. The company is the largest customer and shareholder in

Inmarsat, the leading provider of whole- sale satellite airtime. To supplement existing services, Station 12 is consider- ing several possible acquisitions includ- ing companies with applications exper- tise, content, software and other value- added services. However, the compa- ny's initial focus will be integrating the two satellite operations and developing the best services available.

Targeted growth in annual sales is around 30 percent with an operating margin of at least 10 percent.

Newly appointed chief executive,

Knut Reed believes that the nature of satcom services is changing, moving from voice 'pipe' to broadband/multi- media end-solutions. Many market changes like deregulation, consolidation and customer focus will reshape the sat- com industry.

He notes that users are increasingly looking at satcom to give them total global access. The market will shift from voice to data: by 2004, some 70 percent of all Inmarsat traffic will be data. Indeed, Internet access will become central to many users and, he predicts, up to 10 percent of this access will be served via satellite. "The key differentiator for Station 12 is our long-term understanding of our customers," said Reed. "We've been working with the maritime industry and remote land area customers for more than 15 years. Our objective is to con- tinue to provide high quality products and services and develop new and advanced services to enable our cus- tomers to grow their businesses. We also want to build our content, applications and transactions services; a good illus- tration is our unique satcom positioning and e-mail application used by fishing fleets." Station 12 offers global connec- tions, combining technical resources with strong sales channels. Much of the company's business is in the maritime sector where it plans to expand services through integrating content and applica-

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