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KVH Doubles mini-VSAT Broadband Network Capacity in Africa to Support Offshore Oil and Gas Industry

05.06.14

The demand for reliable satellite communications is increasing as a result of strong shipping and oil industry activity

MIDDLETOWN, RI – May 6, 2014 – KVH Industries, Inc., (Nasdaq: KVHI) has doubled the capacity of its mini-VSAT Broadband network in the oil- and gas-rich areas off the West African coast, where maritime traffic and customer demands are surging. This additional Ku-band capacity, which became available in April, addresses demand in an area where offshore supply vessels (OSVs) are the critical link between drilling rigs, cargo ships, and operations on shore.

This area includes the international offshore waters of western Africa, where oil industry activity is increasing, and reliable satellite communications is vital to improving the quality of life and safety for crews and ships. The capacity increase in Africa follows a model KVH built successfully in the Gulf of Mexico, where the mini-VSAT Broadband network provides extensive satellite coverage for offshore supply vessels.

According to reports from the U.S. Energy Information Administration, Africa’s proven oil reserves have grown 120% in the past three decades, from 57 billion barrels to 124 billion barrels, with at least another 100 billion barrels waiting to be discovered. Proven reserves of natural gas have grown 140% in that time.

“Many of the offshore supply vessels operating across the globe rely on our mini-VSAT Broadband service, and we’ve seen how valuable this service can be in regions with strong oil industry activity, such as the Gulf of Mexico, Brazil, and the North Sea. With demand rising along Africa’s western coast, we’re proud to deliver more capacity and better service for our OSV customers, as well as the busy shipping lanes in the region,” says Brent Bruun, executive vice president of KVH’s Mobile Broadband Group. 

KVH’s mini-VSAT Broadband network is the dominant player in the global maritime VSAT market, with twice the market share of its closest competitor, according to a 2014 industry report by Euroconsult. KVH and its technology partner, ViaSat, Inc., (Nasdaq: VSAT), use ArcLight spread spectrum technology to deliver fast broadband service, with Internet download speeds up to 4 Mbps.

The mini-VSAT Broadband network covers 100% of the maritime market through a combination of 19 Ku-band transponders and three C-band beams. KVH has built this global infrastructure by leasing available commercial satellite capacity, rather than investing in its own satellites, leading to lower costs and better prices for customers. Designed exclusively for the mini-VSAT Broadband network, KVH’s unique TracPhone V-IP satellite communications antenna systems are built 85% smaller than typical VSAT antennas to install more easily in all vessels. With antenna sizes ranging from 37 cm (14.5 inches) to 1.1 meter (42.5 inches), there’s a TracPhone V-IP system for vessels of every size.

The ongoing expansion of the mini-VSAT Broadband network in Africa follows network upgrades in other parts of the globe and supports KVH’s recently announced IP-MobileCast content delivery service, which will be available to subscribers this month. Using the same broadband network already streaming into more than 4,000 onboard terminals worldwide, IP-MobileCast will deliver a separate data steam of licensed news, sports, entertainment, and training content – improving quality of life for crews aboard commercial vessels – as well as operational data such as electronic chart updates and weather information. 

Photo captions:
(Top) KVH’s mini-VSAT Broadband network is the world’s most extensive C/Ku-band maritime VSAT network. 
(Bottom) KVH’s advanced TracPhone V-IP satellite antenna systems are designed and optimized for the mini-VSAT Broadband network.

Note to Editors:
Visit KVH’s website for complete details about the global mini-VSAT Broadband network, award-winning TracPhone V-IP series, and upcoming IP-MobileCast content delivery service. High-resolution, press-ready images are available for download and editorial use from the KVH Press Room Image Library.

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. KVH is also a leading news, music, and entertainment content provider to many industries including maritime, retail, and leisure. 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 subsidiaries in Belgium, Bermuda, Brazil, Cyprus, Denmark, 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 the timing and occurrence of new service rollout plans, the functionality, characteristics, quality, and performance of KVH services and technology; and customer demand, preferences, requirements, and expectations. 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: potential unanticipated technical or legal impediments that could delay or impede new service rollout plans or expected strategic relationships; the impact of extended economic weakness and high fuel prices on the sale and use of marine vessels; the need for, or delays in, qualification of products to customer or regulatory standards; unanticipated declines or changes in customer demand, due to competitive, economic, seasonal, and other factors, particularly with respect to the TracPhone V-IP series products; and unanticipated increases in media costs or loss of distribution rights. These and other factors are discussed in more detail in our most recent Form 10-K filed with the SEC. We do not assume any obligation to update our forward-looking statements to reflect new information and developments.

KVH, TracPhone, and IP-MobileCast 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.

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