Ovzon’s offering of satellite-based mobile broadband services was launched in 2014. The offering has been well received and Ovzon’s revenues increased from SEK 53.3 million in 2014 to SEK 232 million in 2019.
Ovzon’s service offering
Ovzon’s service offering is built on capacity leased from existing satellites and satellite operators. The service is sold as a complete solution and includes terminals, satellite capacity and gateway connectivity, network management and support. There are two pricing models under Ovzon’s current service offering.
- Fixed price/bulk capacity: large amounts of bandwidth, provided over a longer period. The model represents approximately 95 percent of Ovzon’s net sales.
- Variable price/per minute: the service is sold per minute, similar to a mobile phone service.
The service is also prepared for other pricing models, including charging users per amount of data transferred. As a general matter, margins for the variable sales models are higher compared with bulk-oriented sales, but the efforts necessary to increase utilization are also substantially more personnel-intensive than selling fixed capacity for longer durations.
Frequency band yields benefits
When customers use Ovzon’s mobile broadband services, radio signals are transmitted via leased capacity on GEO satellites. The radio signals are sent over a certain frequency, a subsidiary band of the Ku-band that is not as heavily trafficked as the rest of the band. In addition, it is less sensitive to disruptions due to rain and atmospheric phenomena, which improves the service’s availability and/or terminal sizes. Ovzon mainly targets the mobile services segment (MSS) in the satellite communications market.
Advantages of GEO satellites
Ovzon’s service offering uses GEO satellites, which is a less complex satellite system compared with the LEO or MEO systems. The typical service life of GEO satellites is 15 to 20 years. The high altitude of GEO satellites enables global coverage using only four satellites, with the exception of the polar regions, while LEO systems require at least 50 satellites for global coverage.
Small and user-friendly terminals
With the experience and knowledge of development and integration of small satellite terminals, Ovzon is well equipped for the challenge of developing the next generation of terminals, which are well suited for the satellites utilized by Ovzon.
- T5 terminal (2014): Ovzon’s T5 terminal was launched in 2014. The T5 terminal has a simple user interface and built-in guidance system, allowing non-trained personnel/ users to quickly align the antenna towards the satellite and automatically start communications. The terminal is carried in an ordinary laptop bag or backpack.
- Ovzon has many years of experience in developing and using Satcom On the Move (SOTM) terminals. The COTM terminals used in Ovzon’s service offering, however, have been provided by third-party manufacturers and modified by Ovzon for use with its services.
Comprehensive patent portfolio
Ovzon holds a number of patents covering inventions related to its service offering and products. In addition, Ovzon also holds certain patents that primarily relate to the technical aspects of antennas. Ovzon has adopted a patent policy that ensures clear, strategic management of its patent activities. Patents are applied for in countries where defending the technology is important, such as the US, Germany and others.
