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KVH Expands mini-VSAT Broadband Network Capacity in Key Areas of Global Maritime Activity

03.09.15

The company’s satellite network has been enhanced with additional capacity for the Asia-Pacific region, the Pacific Northwest, and the eastern coast of Canada and the U.S.

MIDDLETOWN, RI – March 9, 2015 – KVH Industries, Inc., (Nasdaq: KVHI) has completed several capacity increases for its mini-VSAT Broadbandsm network to support heightened demand from customers engaged in a wide range of commercial maritime activities around the world, including offshore oil and gas, fishing, and shipping. Utilizing 17 satellites and 24 transponders to provide global coverage, KVH’s mini-VSAT Broadband is the most extensive C/Ku-band maritime VSAT network in the world, and is designed for rapid expansion by accessing abundant commercial satellite capacity. Working with leading commercial satellite providers, KVH implemented the recent capacity expansions to meet the ever-growing demand for broadband services at sea.

“The commercial maritime industry is increasingly reliant on broadband services to improve operational efficiency,” says Martin Kits van Heyningen, KVH chief executive officer. “Data and connectivity enable ship owners to accomplish many goals, from reduced fuel consumption through voyage planning to increased safety through updated training programs delivered to crew while they are onboard. We are continually monitoring and improving the mini-VSAT Broadband network to ensure our maritime customers have the critical connectivity they need at all times onboard their vessels.”

KVH’s recent capacity expansions for the mini-VSAT Broadband network include:

  • Asia-Pacific: The capacity of a key satellite beam for the Asia-Pacific region was increased 60%, providing support for commercial shipping and offshore oil and gas activities in the area.
  • Pacific Northwest: A new beam covering the Pacific Northwest was added, providing support for the many commercial fishing fleets located in this area.
  • Eastern Canada and U.S. coast: A new beam was added to more than double the network capacity for the eastern coast of Canada and the United States, a key area for commercial shipping, fishing, and yacht chartering.

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 recent industry reports by Comsys and 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. With its enterprise-grade infrastructure, the mini-VSAT Broadband network carried 500 TB of data and 25 million voice minutes in 2014.

KVH has built this global infrastructure by leasing available commercial satellite capacity, rather than investing in its own satellites. The results are 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. Antenna sizes range from the 37 cm (14.5 inch) diameter TracPhone V3-IP, to the 60 cm (24 inch) diameter TracPhone V7-IP, and the 1.1 meter (42.5 inch) diameter TracPhone V11-IP. The company recently shipped its 5,000th TracPhone system for the mini-VSAT Broadband service.

The capacity expansions also support KVH’s IP-MobileCastTM content delivery service. This multicasting service uses the mini-VSAT Broadband network to deliver a separate data stream of news, sports, entertainment, and training content – improving quality of life for crew members onboard commercial vessels – as well as operational data such as electronic chart updates and weather information. 

Note to Editors: For more information about the mini-VSAT Broadband service, please visit KVH’s website. High-resolution images of KVH products are available at 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. 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 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 need to increase sales of the TracPhone V-IP series products and related services to improve airtime gross margins; the impact of extended economic weakness on the sale and use of marine vessels, particularly in Europe and Asia; 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 the mini-VSAT Broadband service; KVH’s dependence on the availability of third-party satellites and services to support transmissions to mobile antennas; unanticipated expenses associated with the launch of the IP-MobileCast service; and unanticipated increase in media costs or loss of distribution rights. These and other factors are discussed in more detail in our most recent quarterly report on Form 10-Q filed with the SEC. We do not assume any obligation to update our forward-looking statements to reflect new information and 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.

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