Good afternoon. I hope you enjoyed the video.
On behalf of Boeing, it's a pleasure to once again host this "Satellite Executive of the Year" luncheon. And Congratulations to Via Satellite as they celebrate 30 years of hosting this Satellite Conference and Exhibition!!
30 years of bringing together the "best of the best" to share ideas, develop relationships, and yes, conduct business. 30 years is a long time, and none of us would be here today if we didn't provide this singular item ---- value.
As one of our nation's most successful businessmen, Warren Buffet, once said, "Price is what you pay; value is what you get."
It's not rocket science, but it is something that differentiates those who succeed from those who don't, and those who win from those who must try again.
The satellite business is a complicated business, driven by an insatiable demand for information, and the ability to be technically and affordably ready to meet those demands. It's a fast-paced, highly competitive environment. But it's one of the world's most exciting industries, for we personally benefit from our products, and we know that what we design and deliver improves lives.
Satellites monitor weather; assess space situations; deliver entertainment and Internet services; help us navigate our way to the next restaurant or store, and -- most importantly --- deliver critical communications to our nation's war fighters, so that they know what's coming and can take action.
Satellites literally save lives.
It's a known fact that satellites can assist in times of emergency. We saw it last week, with the devastating earthquake in Japan, just as we saw when Katrina hit the United States in 2005. One of the first services to fail was cell phone service. How great it will be --- and how beneficial to us all -- when more satellite-based cellular phone systems are put into service.
And in addition to emergency response, another critical need today is military bandwidth. The U.S. government's current demand for military satellite bandwidth estimated to be 20 Gigabytes per second, which is twice the amount of what is available. By 2019 the demand will reach 50 Gigabytes per second, and only 60% of that will be met. This is a problem for the war fighter, but it's also a great opportunity for our industry.
One of Boeing's key recommendations to address this shortfall is a hosted payload. A hosted payload is a secondary payload, added principally to a commercial satellite, and used to perform a separate mission for government customers.
In 2009, Boeing received a pivotal contract award from Intelsat for a medium-power version of the Boeing 702, which we now call the "702MP." The Intelsat contract included a hosted UHF payload that Intelsat will provide to the Australian Defence Force. In 2010, Intelsat exercised an option for a second UHF hosted payload.
And, Inmarsat awarded Boeing a three-satellite constellation that included three high power Boeing 702HP satellites, each of which will carry a hosted Ka-band payload.
We believe that a hosted payload can help the U.S. government with its bandwidth needs, and also the commercial satellite services provider, which benefits from a second source of revenue. We believe this so strongly, in fact, that we just formed a unit, Boeing Commercial Satellite Services, to assist with forging these types of mutually beneficial business arrangements.
And we're going to keep exploring the possibilities, because literally any satellite service --- in any frequency band -- can be provided through a hosted payload.
That includes weather monitoring; surveillance; protected military communications; mobile communications; and business communications.
Any of these are possible.
The value that I spoke of earlier comes from an experienced supplier with technical expertise in multiple satellite domains.
The video you just saw recaps some of Boeing's history, and in 2011 we are marking the 50-year anniversary of the formation of the satellite business unit that is today Boeing Space and Intelligence Systems.
We would not still be here if we didn't provide value.
In 2010, we delivered four satellites -- and one space plane -- for launch. The value to our customers was delivered in the form of:
GOES P -- a weather monitoring satellite Boeing built for NASA and NOAA, launched March 4th and put into service on September 1st.
The X-37B Orbital Test Vehicle -- an experimental space plane built by Boeing for the Rapid Capabilities Office. Launched on April 22nd, it made history as the United States' first unmanned vehicle to land on its own on December 3rd.
The Global Positioning System satellite -- known as GPS IIF -- a satellite providing position, navigation and timing services to the United States Air Force. This was the first of 12 satellites being built by Boeing, and it launched May 27th and was put into service on August 26th.
The Space Based Space Surveillance satellite, known as SBSS, which was built for the United States Air Force. It provides space situational awareness and is a joint effort by Boeing and Ball Aerospace. It launched on September 25th and is expected to enter operations soon.
And finally, SkyTerra-1, the first of two satellites being built by Boeing for LightSquared's satellite network. SkyTerra-1 was launched on November 14th, and the customer accepted control last month.
In 2011 we will launch at least three satellites, in addition to the second X-37B Orbital Test Vehicle, which launched less than two weeks ago.
The future continues to be bright for those who provide value.
And it's not about the size or the cost -- it's about what it does -- and what it can do, with ingenuity, expertise, and commitment. That's what Warren Buffet meant, and it bears repeating: "Price is what you pay; value is what you get."
May we all continue to provide those valuable services that only we in the satellite industry can provide. Thank You.