Crew Internet - Bridging The Communication Divide

Transcription

Crew Internet- bridging the communication divideMichiel MeijerMarket Development, Inmarsat Maritime Inmarsat confidential

Content1. Trends in crew welfare2. Solution for crew internet3. Business case for crew internet4. Inmarsat’s portfolio Today and Future Inmarsat confidential

. the young people - Generation YYoung people live in advanced IT environmentExtensive use of social networking applications, such asFacebook Twitter WhatsApp Linkedin Inmarsat confidential

Maritime Labour Convention MLC 2006Recommendation for AccommodationCriteria – Recreation(B3.1.11.4):Reasonable access to:ship-to-shore telephonecommunicationsB. EmailC. Internet facilities, whereavailableA.with any charges for the use of theseservices being reasonable in amount Inmarsat confidentialCome into force per20th August 2013

Manpower updates 2010 - BIMCO/ISFConclusions:Challenging future for crewingUnless measures are taken a shortage of officers in 2015 (LOWscenario:12.000 – HIGH scenario:70.000) is expected Inmarsat confidential

Securing Skilled Crew – DeloitteDeloitte survey- 23 companies-1125 vesselsCompetent seafarers and crewing high on theagenda of business issuesRecommended “Best Practices” thatencourage careers at sea securing skilledcrews9 best practices including:Upgraded living conditions,- including provision of broadbandtechnologies* Source: Challenge to the industry. Securing skilled crews in today’s market place- 2011 – Deloitte Inmarsat confidential

Making internet affordable on board Inmarsat confidential

Potential barriers for onboard internetShip manager has no extra budget to deploy crew internetSecurity riskPerception of bill shocks when allowing web browsing over FBNo IT expertise to support onboard internetInstalling cables through the accommodationHow can you overcome thesepotential barriers? Inmarsat confidentialX

FleetBroadband exampleTypical deep sea vessel todayBusiness50 MB data (Email)100 minutes voiceCompany pays 795 per month(FB Standard Plan)Crew - 20 crew members 50 prepaid voice per crewmember74 min per crewmemberCrew pay 1000 per monthExample: Crew is willing to payfor internet 30 per month*Total spend US 1.795 per month*Source: Crew survey Apostleship of the Sea in 2011Crew is willing to spend between 20- 100 per month on internet Inmarsat confidential

What can it cost* to deploy internet? ExampleFleetBroadbandStandard PlanVolume2GB PlanCostsVolumeCostsBusiness Voice100Min 62100Min 34Business Data50MB 73350MB 45Business traffic costs 795 79Prepaid Voice per crew member74Min 5074Min 50Prepaid Internet per crew member0MB 0100MB 30Total per crew memberCrew pays ( income) 50 80 1,000 1,600Monthly invoiceCurrentNewDifferenceTotal invoiced 1,795 2,374 578Crew pays ( income) 1,000 1,600 600New business costs 795 774- 22RatesCurrentNewDifferenceVoiceper min 0.62 0.34-46%Data perMB 14.16 0.90-94%ResultHappy crew: Pay 30 more and get 100 MB for internetHappy business:Pay same and get internet for crewAdditional business data (ECDIS, VPN, etc.) for 90% lower rates Inmarsat confidential*Based on typical retail prices. Excluding cost for Service Delivery Unit

Affordable internet over FBHow does it work? Inmarsat confidential

FleetBroadband internet hotspot bundleMaking internet affordable on boardFleetBroadband2 GB plan “All in One”CommunicationSolution Inmarsat confidentialGlobal internetat speedsup to 432 kbps

“All-in-One” solutionWhy? – Managed InternetCosts if required charged to the crewSplit business and crew trafficEasy remote control and supportBest user experienceTypical features:Prepaid voice and prepaid internetData compression and cachingContent & URL filteringFully managed firewall (on shore and vessel ) Inmarsat confidential

What can my crew do with the 30 ?Making Internet affordable on board Inmarsat confidential

What can my crew do with 30?*33320hours chattinghours web surfingemails50050001500web pagesmobile web pageslow resolutionphotos (300 pixels) Inmarsat confidential20000* Used examples reflect estimates and averages from leading mobile operator sources. Mobile operators: Vodafone, TMobile, Verizon, KPN, Three, Virgin Media, O2, Tele2. The advice is not legally binding

Charge example 1- Managed Crew internet at 0,40 /MBAverage of 2 GB per month per vessel, 400MB business, 1.6 GB for crew (22)Internet traffic income: 634 per month ( 29 per crewmember – 72 MB per crewmember)300025002 GB2000vessel 1vessel 21500vessel 3vessel 410005000May Inmarsat confidentialJuneJulyAugustSeptemberOctober

Charge example 2- Managed Crew internet at 0,20/MBAverage of 2 GB per month per vessel, 400 MB business, 1.6 GB for crew (20)Internet traffic income: 320 per month ( 16 per crewmember- 80 MB per crewmember) Inmarsat confidential2 GB

Charge example 3- Managed Crew internet Free of ChargeAverage of 7 GB per month per vessel, 300MB business, 6.5 GB for crew (30)Internet traffic income: 0 due to free of charge internet policy (216 MB per crewmember)7 GB Inmarsat confidential

Business case for crew internet Inmarsat confidential

HR / Crew - reduced recruitment costPositionsTotal(US )50042 000Travelling expenses related to crewing,interviews, assessments etc.2 500410 000Cost of time spent on recruitment of crew:2 00048 000Training cost for new crew members:2 00048 000Other1 00044 000 8 0004 32 000Crewing related Cost (per year)Per position(US )Crew recruitment advertisingPotential savings per vessel per year 100.000 cost of losing a high rank officer. It takes 5 years before anew officer has reached same level of training & expertise( 20.000 per year)Henk de Vries, Crewmanager at Maersk“Recruiting and training of new crew member cost 10.000”Ship Manager Middle East“If I can save having to recruit a captain, a first officer and two deckhands by having VSAT then that pays for the whole system for ayear”Ian Perrot, CEO E.R. Offshore“When we bid for a job, the customer actually buys the crew morethan the boat.”Rederi AB Transatlantic, T.Anderson, Purchasingmanager Inmarsat confidential

Inmarsat Maritime PortfolioToday & The Future Inmarsat confidential

Record FB Growth ContinuesFleetBroadband Month-End 00Dec 09 Inmarsat confidentialJune 10Dec 10June 11Dec 11June 12Dec 12

Inmarsat Broadband growth path portfoliopriceper MB*Customer needs: 14.16 4. 80Medium Internet CafeEntry Internet Cafe 0.90ECDIS updates 0.40Email FTPFBFBFBFBFB10MB200 MB2 GB6 GBUnlimited* Typical retail price per MegaByte Inmarsat confidentialXLGXIn one monthly Fixed feeCustomer primary needsHigh end Internet/VPNHighEntry

Xpress Link UpdateHybrid solution (Ku VSAT FB), unlimited data usageFully managed, quality broadband solutionA true ‘always on’ connectionCommitted Information Rate (min guaranteed bandwidth)Dual satellite constellation, fixed monthly feeFree upgrade to Global XpressGlobal dealer network450 ships committed Inmarsat confidential

Global Xpress UpdateThe super-fast, Ka-band broadband network from InmarsatDownlink speeds of up to 50MbpsOn schedule to launch 1st satellite Q3 2013First Value Added Resellers announcedJRC appointed as Service ProviderCisco Systems - Long Term Alliance Inmarsat confidential

SummaryGeneration Y is entering the vesselsTo retain skilled crew, internet is recommended byMLC 2006 (ILO/Flagstates), BIMCO/ISF, and DeloitteShip owners have already invested in over 30.000FleetBroadband terminals – “ready” for crew internetFleetBroadband offers excellent growth path forGlobal Crew InternetUpgradable plans (2Gb and above)Speeds up to 432 kbps in global coverageAffordable for crew and ship manager in managed “Allin-One” solution Inmarsat confidentialGlobal internet atspeedsup to 432 kbps

Easy remote control and support Best user experience . Typical features: Prepaid voice and prepaid internet Data compression and caching