Introduced less than 2 years ago, this compact satellite communication system is proving to be a disruptive player in the maritime market as the company announced that it recently shipped its 500th system, representing almost 10% of the installed base of maritime VSAT systems based on estimates in the "2008 Maritime VSAT Markets Report" published by COMSYS.

"To become one of the world's leading maritime VSAT operators in less than two years is a testament to the convenience, affordability, and reliability offered by our fully integrated, 24-inch diameter TracPhone V7 and the powerful mini-VSAT Broadband network," says Martin Kits van Heyningen, KVH's chief executive officer.

"Our research showed that maritime customers were unhappy with the performance of traditional VSAT systems. We knew that we could win a leadership position in the market with a superior end-to-end hardware design and robust global network. Our success to date in the face of long-established legacy solutions clearly illustrates that ship captains, commercial fleet managers, and leisure boaters desire a new, more affordable, more reliable, and more versatile approach to maritime satellite communications."

The mini-VSAT Broadband service, along with the KVH TracPhone V7 antenna, comprise the first end-to-end 24-inch VSAT hardware, service, and support package available for maritime communications.

Working together with its partner, ViaSat, KVH offers Voice over IP phone service and Internet access as fast as 512 Kbps (upload) and 2 Mbps (download) at fixed monthly rates to mariners throughout North America, the Caribbean, the North Atlantic, Europe, the Northern Pacific, and the Persian Gulf as well as to the ViaSat Yondersm mobile network for in-flight broadband to business and commercial aircraft.

KVH also recently announced plans for expansion of the service into Asian waters, the Indian Ocean, and the waters surrounding Australia and New Zealand. With the activation of these coverage areas, the mini-VSAT Broadband network will cover the majority of the world's maritime shipping routes and allow mariners to circumnavigate the globe while never leaving KVH's service areas.

This combination of features offers competitive advantages previously unavailable to commercial operators. According to Captain Bryant of American No.1, "The super-fast, always-on connection makes it easy for us to communicate with our office on shore and get all the weather updates and other information we need. Having the TracPhone V7 onboard allows us to spend more time doing what we're out here to do - maximize our daily production!"

For Eddie Kristensson of Vadero Ship Management, the 24-inch (60 cm) diameter, 60 lb. (27 kg) TracPhone V7 offered immediate practical and financial benefits before it was even activated. "The single biggest advantage was that we could easily install it in a normal port and not have to do it at a shipyard. It came completely plug and play, with cables, and then the antenna is so small and light, it was easy to do."

"When we set out to create the TracPhone V7 and mini-VSAT Broadband, we wanted to offer something that no other VSAT provider could match - a completely integrated hardware, network, and service solution," explains Jim Dodez, KVH's vice president of marketing and strategic development.

"Most of our competitors cobble together an antenna from one company, a modem from another, and service from still another, resulting in a hodge-podge of parts that take days to install and activate and confusion as to who is responsible for service and support. With KVH, you have one company providing a fully integrated end-to-end hardware and service solution through our global network of dealers and distributors."

According to customers like Captain Ken Maff of the 115-foot yacht Kapalua, that approach does make a tremendous difference. "The TracPhone V7 and mini-VSAT Broadband are a convenient satellite communications solution for Kapalua because KVH is the only point of contact. We don't worry about wasting time going back and forth between service and hardware providers playing the 'blame game'."

Increasingly, the TracPhone V7 is seen not only as an option for new vessels but also as a replacement for existing solutions that simply don't offer the reliability, bandwidth, or affordability available with the TracPhone V7.

"With our low Earth orbit (LEO) systems we enjoyed what had been an optimal mix of low equipment cost and low operating cost, but they degraded rapidly and are of no use at all now," observed Stephen Kemp, resource manager for Tesla Offshore, which relies on the KVH solution for its geophysical data acquisition vessels.

"Reliable communication is essential to our business, so we found the low operating cost and higher data capacity of the TracPhone V7 very attractive."

For other companies, such as Mowinckel Ship Management, the TracPhone V7 and mini-VSAT Broadband service are ideal complements to existing services, offering tremendous cost savings and expanded access to Internet and voice.

"We are excited to have a new solution for day-to-day shipboard satellite communications that is both affordable and easy to install alongside our existing Inmarsat and GSM systems. This helps to keep our business operations efficient, and allows the crew to use the services to stay in touch with their loved ones," says Runar Gaarder, Mowinckel's ICT Manager.

"This is especially important, because in our industry retaining quality crew and officers is essential." The evolution of the TracPhone V7 and mini-VSAT Broadband service continues. KVH recently announced the availability of a crew calling system and by the end of 2009, KVH and ViaSat hope to have in place the first-ever global Ku-band network for broadband communications and seamless roaming for vessels and aircraft.

"Our expanding coverage areas, affordable service and groundbreaking antenna design are driving significant interest and establishing the TracPhone V7 and mini-VSAT Broadband service in the marketplace. We look forward to bringing this valuable satellite communications solution to an increasing number of mariners in the coming years," concluded Kits van Heyningen.

related report
KVH mini-VSAT Broadband Coverage Expanding to Include Australia and New Zealand Waters
Continuing its march toward a seamless global broadband network for vessels and aircraft, KVH Industries has announced that it expects mini-VSAT Broadbandsm coverage for the Australia and New Zealand region to go live in August 2009 following the successful completion of service testing on the Intelsat IS-2 satellite.

The new coverage area will provide the first significant support for mini-VSAT Broadband service in the southern hemisphere.

This is the latest milestone in the KVH and ViaSat Inc. (Nasdaq: VSAT) joint effort to provide affordable mobile broadband connections around the globe. In addition to providing service for the KVH TracPhone V7, the KVH and ViaSat joint effort also expands network coverage to the ViaSat Yondersm mobile network for in-flight broadband to business and commercial aircraft.

"Together with our recently announced coverage for Asian waters and the Indian Ocean, the anticipated addition of service for Australia and New Zealand represents a significant expansion of our increasingly popular mini-VSAT Broadband Internet and voice service to a major commercial and recreational maritime region," explained Brent C. Bruun, KVH's vice president of sales and business development.

"We believe that our seamless mini-VSAT Broadband network, together with our compact 24-inch (60 cm) commercial-grade antenna and fixed-rate monthly airtime pricing, offers unique benefits to commercial and leisure mariners with regard to hardware and service costs as well as the value that comes with an affordable broadband data connection for crew morale, shipboard operation, regulatory compliance, and more."

The mini-VSAT Broadband service, along with the KVH TracPhone V7 antenna, comprise the first end-to-end 24-inch VSAT hardware, service, and support package available for maritime communications.

Together, KVH and ViaSat are already offering Voice over IP phone service and Internet access as fast as 512 Kbps (upload) and 2 Mbps (download) at fixed monthly rates to mariners throughout North America, the Caribbean, the North Atlantic, Europe, the Northern Pacific, and the Persian Gulf.

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