Innovation to meet the bottom line: the view from Newtec

In what has been a challenging year for broadcasters, operators and service providers, demand for satellite based services has remained high even as operators look to improve their bottom line. Satellite service providers, broadcasters, telecos and ISPs are facing the need to diversify their service offering, delivering content to consumers via a range of platforms from IP to mobile. Thanks to our technological innovations, Newtec has strengthened its leadership position in the broadcast and IP markets, showing that we are clear market leaders when it comes to TV and IP applications over satellite. FlexACM® helped Newtec penetrate the IP trunking market as well as winning us a WTA Technology of the Year Award, and in the broadcasting world we scooped the Innovation Award with ASBU & Arabsat for MENOS at this year’s IBC. Newtec also strengthened its position as European market leader in the Internet consumer business with 65.000 Sat3Play® terminals shipped through offerings by SES Astra and expansion into Africa, while our new modulation and coding technology 4CPM enabled us to start accessing the business market. Thanks to our customers providing us with more business, we have been able to increase our revenues to end our fiscal year with a revenue increase of about 15 percent, breaking the barrier of 50 million Euros, even in this tough economic climate.

Let’s look back on the achievements of this exceptional year, 2009.

New revolutionary modulation and coding scheme from Newtec

Newtec launched a new revolutionary, highly advanced modulation and coding scheme called 4CPM at IBC09. The coding scheme increases the speed and bandwidth efficiency of the return link of the Newtec Sat3Play® system. The development of this new modulation scheme started back in 2006, and was developed by Newtec in cooperation with the France’s Ecole Nationale Superieure des Telecommunications (ENST) and the Italian universities of Parma and Bologna. TurboConcept, Newtec’s subsidiary in Brest (France), designed and implemented the core 4CPM algorithms. 4CPM enables return rates of 1Mbps and higher making the terminal not only a perfect fit for the consumer market, but also suitable within the professional market. In addition to the increase in the return rate, 4CPM also boosts return link bandwidth efficiency resulting in significantly lower cost satellite capacity.

FlexACM

IP over satellite networks based on Elevation equipment can start as basic IP trunking networks and easily be upgraded at a later stage with the Variable Coding and Modulation (VCM) technology to save more on bandwidth. On top of that, Newtec has added a revolutionary capability that allows our customers to benefit from our cutting-edge and award winning FlexACM technology, with which they can double their data throughput and provide a 100% link availability, something that was just impossible up to now. The additional data throughput made available by using FlexACM technology can either be used to increase the data throughput of the network or to add more remote sites to the network within the same satellite capacity. It’s even possible to provide fixed speed services to the end users, while still enjoying all the advantages FlexACM offers.

Newtec’s success in the IP World

Building on our success in the IP space, Newtec has seen significant success in enabling our customers to leverage their IP trunking and IP backbone applications with the greater efficiency of the Elevation product line. All over the globe, Newtec’s Elevation product deployments are emerging as the perfect solution for customers who want to increase data throughput, efficiently manage quality of service and reduce operational expenses.

2009 has been a bumper year for new satellite-based services in the MENA region. Horizon Satellite Services in the UAE for instance successfully upgraded its link facilities with Newtec’s redundant FlexACM solution connecting several sites in the Middle East with an uplink in Europe. The upgrade project allowed Horizon to eliminate issues of interference from adjacent carrier intermodulation and antenna tracking errors at receive sites on the outer edge of its footprint. In the broadcasting world, independent Iraqi satellite TV station Alsumaria TV invested in Newtec’s IP over satellite solution as part of its migration towards tapeless news production. Increased productivity, speeded up delivery of news content, and reduced costs are the return on investment for Alsumaria TV.

In Africa a leading satellite communications company providing carrier and business network solutions is using our IP Elevation equipment with FlexACM in multiple IP trunking networks to increase the bandwidth efficiency of its intercontinental data links between Europe and Africa. The move to Elevation products has enabled them to increase the bandwidth by 50 to 100%. The higher quality, lower operational costs and the significant bandwidth gains offered by Newtec’s Elevation based solution has made it the obvious choice to assist this company in their accelerated growth plans.

Intelsat, one of the world’s leading providers of global fixed satellite services, uses Newtec’s Elevation product line to provide  IP solutions at very high speeds, in fully redundant environments. In addition, Newtec’s XPE IP encapsulation protocol makes it the most robust and efficient IP system currently available. Intelsat is transporting several hundreds of Mbits over Newtec equipment to its complete satisfaction.

In Latin America, leading telecoms solution provider Alcatel-Lucent selected Newtec’s high-speed IP modems and active L-band combiners to provide high-speed IP backhaul over satellite for one of Brazil’s major telecom operators. In order to fulfil the demands of this satellite backhaul project, including meeting the demand for 1 Gigabit/s throughput, Alcatel-Lucent had to meet stringent performance requirements. Normally, obtaining the maximal efficiency even in harsh climatic conditions pushes the link budgets to the limit and presents challenges for the technology. The strong forward error correction of our DVB-S2 implementation makes it possible to maintain the link while obtaining the maximal spectral efficiency and availability.

Newtec’s equipment is also being used in difficult and demanding locations: live satellite broadcasting from a ship close to 90° North, with wind speeds of up to 250 km/hr and freezing temperatures of -40°C, requires extremely reliable equipment.  In the same harsh conditions in Antartica, Newtec’s Elevation equipment is being used to transmit data to customers in the US and Norway.

Newtec drives IP broadband acceleration and performance

A US based VSAT manufacturer has successfully integrated Newtec’s TelliNet TCP acceleration software into their VSAT terminals. The integration further optimizes communication via satellite. The VSAT application is designed to provide a satellite network to telecom operators to cover different applications and users in one network with unprecedented high channel efficiency performance, mesh connectivity, and without costly multiplexing overheads associated with TDMA carriers.

Thuraya Telecommunications Company, based in the United Arab Emirates, has selected Newtec’s TelliNet solution as part of its ongoing efforts to enhance the performance of its ThurayaIP broadband offering. TelliNet boosts the performance of ThurayaIP and improves the level of customer satisfaction when web surfing, downloading files, receiving streaming services or using other Internet services. Through this enhancement, customers of ThurayaIP will experience much faster throughput in StandardIP and StreamingIP mode while using the unique ThurayaIP broadband terminal. Thanks to the TelliNet upgrade, Thuraya is able to offer its customers an increase in speed when web surfing and a 50% reduction in data download times.
    

Broadcasters: Are You Ready for IP?

Until now, broadcasters have focused on implementing tapeless storage and IP connectivity between IT platforms, universal technologies adopted by all broadcasters. However, the satellite part of the broadcast infrastructure seemed to be evolving less rapidly than the rest of the TV production and distribution environment. Most of the satellite links are still operated as real-time transmissions using MPEG2 encoders and IRDs. Yet here, the evolution towards IP is also unavoidable, as the integration in the global IT-based workflow is not only an issue of efficiency but also of compatibility among signal types and the preservation of video and audio quality. To facilitate the migration towards IP, Newtec developed DualFlow, a unique and innovative option available on all Azimuth broadcast products. This option provides Broadcasters and Network providers with ways to address classical real-time satellite transmission requirements. It also provides support for the IP-based workflows of today and tomorrow for DSNG, contribution and distribution services.

Newtec’s Multistream Technology used for FLO TV network

Qualcomm subsidiary FLO TV has selected Newtec’s Multistream technology and products for an upgrade of its mobile TV content distribution network. Newtec is FLO TV’s main supplier of Multistream Satellite Receivers, with multiple ASI and GbE interfaces, installed in all the company’s terrestrial UHF transmitter towers.
The GbE interface delivers true IP connectivity to the transmitter sites for future applications, such as the distribution of IP services and IP networking applications. As well as robust coding and modulation, the receiver offers operators the flexibility to match QoS to the type of content being delivered via the VCM (Variable Coding and Modulation) functionality. Newtec receivers provide true VCM multistreaming capability coupled with high performance and solid, ready-to-deploy reliability. The flexibility offered by the receiver enables FLO TV to fully optimize their data rate, antenna size and link availability on a per stream basis.

GlobeCast Australia upgrades with Newtec DVB-S2

Newtec, with its partner, Lumina Broadcast Systems Australia, won a contract from GlobeCast Australia to design and deliver Newtec’s AZ110 Modulators, and AZ750 Combining Upconverters to create a flexible and cost effective uplink system. The project enables GlobeCast Australia’s Sydney broadcast operations to offer new services to clients that are uplinking and downlinking HD programme content. The installation is part of a massive upgrade of the GlobeCast Australia master control and teleport, to cope with current and future demand. As a result, GlobeCast Australia’s MC has doubled in capacity. The Newtec systems installed at GlobeCast Australia allow the service provider to ensure interference free combining of multiple carriers, low losses and minimal spectral regrowth. Newtec was also able to deliver significant cost savings.

Newtec powers Middle East’s first commercial mobile TV

Mobision launched the Middle East’s first commercial mobile TV service delivering over 20 of the region’s most popular TV channels to subscribers in four cities in Iraq. With the help of Newtec’s Horizon HZ420 equipment, signals broadcast via satellite are converted into DVB-H which is then transmitted using medium and high power terrestrial transmitters.

Newtec appoints new VP of Sales    

In line with continued growth during the last year, Newtec has expanded its sales force to meet this demand. The sales force is now headed up by a new VP of Sales, Mr. Jean-Pierre De Muyt. Jean-Pierre is a long standing employee of Newtec, and brings his strong track record in sales and marketing to the role of VP of Sales. We are confident that he will be part of the success in 2010, preparing the company for growth and scalability as we move into the year ahead.

Listening to our customers

As broadcasters increasingly look to implement more efficient and cost effective workflows as a means of responding to the new market requirements and reducing their operating costs at the same time, Newtec is keeping pace with their changing priorities and needs. We have been able to demonstrate our commitment to enabling broadcasters to control their bottom line while delivering the same QoS that consumers demand. We have also introduced a new ‘Service Desk’ web portal that provides our customers with an essential daily contact with the Newtec support team.

ASBU and MENOS recognized at IBC09    

The Arab States Broadcasting Union (ASBU), Arabsat and Newtec were awarded the IBC09 Innovation Award for Content Delivery as well as the Judges’ Prize for most influential project of the year. The award is an acknowledgement, not just of our people and their commitment but for the teamwork between Newtec, Arabsat and the ASBU. Already in operation for a year the system – first deployed to deliver coverage of the 2008 Beijing Olympics – has proved to be highly reliable, providing the ASBU with outstanding performance and quality of satellite VoIP.

FlexACM receives the WTA Technology Award

Newtec’s technology leadership in the IP world of satellite communications has been confirmed when the World Teleport Association awarded Newtec for its FlexACM technology with the WTA Technology of the Year Award.

Receiving these technology awards clearly indicates that we are leading innovation in our industry with new solutions that enable our customers to access new business opportunities and to improve the bottom line.

Looking towards 2010

Newtec has been very focused on delivering products enabling higher efficiency to our customers, allowing them to boost bandwidth efficiency resulting in significantly lower cost satellite capacity. Software upgrades such as the 4CPM coding scheme and FlexACM technology can deliver significant cost reductions and bandwidth increases. We are making it easier than ever for customers to make the transition to IP in contribution, distribution and DSNG applications, thanks to Newtec’s broadcasting equipment with IP integration designed to specifically meet the needs of broadcasters.The financial pressures of the current economic climate mean that customers are ever more stringent about ROI, and Newtec’s success and continued growth during this past year is testament to our commitment to meeting our customers’ demands.

2010 is set to be another exciting year for Newtec as the number of TV channels, satellite broadband consumers and the IP traffic worldwide are expected to see continued growth. Broadcasters look forward to drive increasing end-to-end efficiency across their infrastructure. As the deadline for switchover from analogue approaches, digital terrestrial TV and Mobile TV are expected to see further growth as well. Also, the revolution that FlexACM is bringing to the IP world, and the increasing need of countries to close the digital divide, combined with the availability of Ka-band satellites, will see further potential for double digit growth for the coming year.

I am therefore convinced that 2010 will be another year of exciting growth for Newtec.