Tag Archives: GMDSS

Safety divided by competition won’t go

There have been some puzzling headlines in the past week or so following the decision by the International Maritime Organization (IMO) to give recognition to the bid by satellite services provider Iridium to run the Global Maritime Distress and Safety System.

The IMO sub-committee on Navigation, Communications, Search and Rescue (NSCR) gave the nod to Iridium’s pitch, which will be subject to approval by the Maritime Safety Committee, though probably not before 2016.

It’s true to say that the surprise has been pretty evenly-distributed around the industry. Certainly, there will have been something close to bewilderment at the headquarters of INMARSAT, which runs GMDSS under mandate from the IMO and which will have been lobbying hard to get the proposal squashed.

The surprise in communications circles is largely due to the apparent mis-match between the requirement the IMO places on INMARSAT for GMDSS uptime of 99.99% and the performance of the existing Iridium network.

Despite its somewhat chequered history: a big launch, a spell in Chapter 11, rescue by the US Department of Defence, and resurgence as the appetite for low cost communications broke over shipping – ship owners like Iridium. The products themselves are cheap and cheerful; Iridium was among the first to identify the potential for what was then called “commodity voice communications” – selling handsets and airtime that could keep seafarers in touch at very low per minute rates.

This was because Iridium needed something to do with its global network of Low Earth Orbit (LEO) satellites in addition to the capacity that the US military was using. In time, data products followed and the same principle applied – they were cheap, easy to use and easy to fix when broken.

This was good for owners who didn’t want to spend a lot on their communications but just needed something on board. The data transfer rates weren’t high either but the owners weren’t necessarily worried.

Slightly more problematic was that its network of LEO satellites – rather more complex than a handset – had an equally creaky reputation in practice. Iridium’s engineers have done admirable work prolonging the working life of its constellation but even with the use of spares, outages are a regular occurrence. Since 2001, iridium has lost 10 satellites from its 66 strong constellation, nine from technical failures, one a collision.

Its fiercest critics say that in areas of greatest ship congestion, heavy demand results in the network being unable to cope and like a weak Wi-Fi signal in a conference room, the contention is such that no-one gets any service.

This must be subject to some question, since Iridium services still sell well, but no hardware manufacturer or service provider is likely to admit that any delicate shipboard technology, whether comms or navigation, is subject to operational failure. You have to talk to seafarers to get to hear that and normally they make you buy them lots of beer first.

But it is important in the light of the sub-committee’s decision because GMDSS is not a commercial service but rather a safety one, mandated by the IMO and one that all SOLAS ships are required to fit and maintain. For that to happen, the IMO demands a level of uptime that the current Iridium constellation appears unable to achieve.

No doubt Iridium is able to produce statistics that confirm it hits 99.99% availability, just as its rivals can produce data saying the opposite, but it is the spread between what its commercial service can manage and the IMO-mandated requirement that raises eyebrows.

Incumbent GMDSS operator INMARSAT has been left spluttering by the decision, which it presumably believes rather undermines the goals it has been set in providing GMDSS since 1979. INMARSAT has also formally unveiled its own evolution of GMDSS, called the Maritime Data Safety Service (MSDS) which will “upgrade” the service onto more its modern I-4 satellites.

Iridium plans a similar development and wants to launch an entirely new network, NEXT comprising 72 satellites from 2015 onwards, with service availability from 2017 onwards. Its key differentiator here is the polar coverage its current and future networks can provide and Inmarsat’s cannot. Iridium will need to get capacity utilisation on this new network too – it plans aeronautical in addition to maritime and land services for NEXT and will need to keep pace with the next generation VSAT and HTS services that will be in place by then.

It appears that the potential for ship traffic in the Polar Regions was among the swaying evidence considered at the IMO. Whether or not the growth potential of the Northern Sea Route is really enough to convince the MSC that this makes enough of a difference is questionable enough in itself. A recent survey by consultants PWC of German ship owners found that 60% saw no fresh opportunities from the NSR’s opening up.

What is far more dangerous surely is for any would-be operator to view GMDSS as a prize, an opportunity that has for too long been under the control of one of its rivals. Some of the coverage of the IMO decision (to say nothing of the comments on social media sites that specialise in pushing commercial interests over public ones) suggest just that.

No-one can credibly assert that Inmarsat has “control” of a service that it was created to deliver under the mandate of the IMO. GMDSS has nothing to do with commercial maritime services like broadband, VSAT or HTS. It is a public service dedicated to the safety of the world’s 1.5m seafarers.

Should the provision of such a service be subject to competition and to the vagaries of national interests? Or should any future decision instead be based on the facts and made in the light of day. Assuming that the IMO has not changed its baseline of 99.99% network uptime, does the proposed service meet the requirement or not?

My editor at BIMCO kindly added the following clarification to the article as published on its website.

Editor’s Note: The NCSR Sub-Committee agreed to invite the MSC to consider and decide on which independent body should produce a technical and operational assessment of the information and provide a report to the sub-committee for evaluation. Following receipt and evaluation of the assessment, the sub-committee would then make a recommendation to the MSC as to the adoption of an MSC resolution recognising the new maritime mobile satellite services provider.

Inmarsat gets it in the neck (and elsewhere) over price rises

Maritime communications giant Inmarsat is the target for a stinging letter of rebuke from the Association of Maritime Managers in Information Technology and Communications (Ammitec), which lists a series of ‘serious objections’ to Inmarsat’s intention to raise its prices from May 1, 2012.

The letter, published during the recent DigitalShip Cyprus conference leaves no room for doubt as to the group’s gripes about Inmarsat’s plans and its feeling that the London-listed company is ‘abusing its position’ as a ‘monopoly’ operator of safety services.

This first refers to Inmarsat’s intention to lift the price of telex communications via Inmarsat-C by 15%, though it neglects to differentiate between the telex service and free GMDSS distress transmissions. Ammitec promises to take the matter to Inmarsat’s regulator IMSO and says the issue should be referred to the IMO Comsar sub-committee.

The group’s real beef however is the planned price increase on Existing and Evolved (E&E) services, notably Inmarsat Fleet, launched in 2002. By raising prices, Inmarsat, it says, is effectively putting this service beyond economic use and forcing users to migrate to the newer FleetBroadband service.

Just as invidious, it says are the planned price rises to the much newer FleetBroadband pay as you go service, which it calls ‘unsupportable’ in a broadly similar argument to that around E&E – that Inmarsat is forcing the pace of change rather than letting the industry evolve at its own speed. Many shipping companies, it says bought FBB on release (when the price was low) and they are clearly disgruntled that Inmarsat is raising prices when costs are high elsewhere and earnings low.

What the letter doesn’t mention is that the prices for FBB plans and packages are not rising – only the pay as you go option, which many people thought was under-priced on release – so owners paying for a managed plan won’t feel any pain.

The letter’s wrath seems to have run its course by the end of page 2 and Ammitec, while noting Inmarsat’s ‘blatant disregard for long-term loyalty’ says it would welcome the chance to discuss the issues with Inmarsat as well as with ‘the wider maritime community’.

All gripping stuff but it does beg a few questions not mentioned by the competitors that have seized on it as proof that Inmarsat is punch-drunk and reeling.

First, according to the programme, Inmarsat Maritime President Frank Coles was present at Cyprus so why no debate there and then?

Second, surely IT buyers don’t imagine that prices only go up when times are good? If so they should check with their colleagues in the chartering department on the price of bunkers lately.

And at the risk of brickbats and worse I have to say, that given my 16 years of reporting on shipping, I have found the concept of ‘long-term loyalty’ to be a rare commodity in maritime communications. Price is king and churn is a fact of life that keeps the sell-side on its toes. As the letter itself notes, if customers were to stay with the E&E services then Inmarsat would get a huge payday, so they will probably move to FleetBroadband – a service which is comparatively cheaper than either Inmarsat-B or Fleet.

Finally it is simply inaccurate to call Inmarsat a monopoly. With the exception of the IMO-mandated GMDSS service, Inmarsat has more viable competition now than at any time in its history.

In a highly commercial market like shipping, Inmarsat must understand the risk it is taking by raising prices now. For the most part, owners, managers and their IT departments are able to vote with their feet. Whether they choose to do that over the next 12 months or so will demonstrate how serious they are about taking the fight from Cyprus to 99 City Road.