Since January of 2007, Drew Caplan has served as SkyTerra’s Chief Network Officer. You may recall the company was formerly known as Mobile Satellite Ventures. Drew is responsible for the company’s network engineering and technology functions, as well as leading the development and deployment of the company’s nexgen network. He is a 25-year veteran of the telecommunications industry, having consulted with venture capital and private equity firms interested in investing in telecom and technology companies from 2005 until 2007. Drew also served as Executive in Residence for Columbia Capital.

From 1996 to 2005 he founded and led Nextel Communications’ national engineering organization, responsible for development, engineering, planning, and deployment of new technologies, products, and services. His work with Nextel was highlighted by the introduction of that company’s nationwide and international Push-to-Talk feature. He was also responsible for managing all aspects of Nextel’s interconnections and purchases from other carriers.

Prior to joining Nextel, Mr. Caplan served in progressive engineering, operations, and product development roles with MCI Communications, from 1983 to 1995. As a founding member of MCImetro, MCI’s CLEC startup, Mr. Caplan oversaw the launch of the company’s first services, building out 20 markets. He also authored and delivered significant portions of MCI’s testimony in state and federal hearings surrounding the Telecommunications Act of 1996. We were delighted he could find the time in his busy schedule to talk with SatMagazine regarding SkyTerra’s nexgen network.

SM
Mr. Caplan, would you please explain SkyTerra Communications’ next generation satellite-terrestrial network?

Drew Caplan
SkyTerra is in the advanced stages of building its next-generation integrated satellite terrestrial network. The network will allow users — for the first time ever — to roam seamlessly and transparently between cellular and satellite networks on handheld devices virtually anywhere throughout North America. Consumers will be able to purchase handsets similar in price and size to those currently in the marketplace. In addition, SkyTerra’s next generation service will add very little cost to the wholesale cost of a handset and offer a flexible broadband platform supporting a host of advanced services.

SkyTerra’s ancillary terrestrial component (ATC) technology will offer breakthrough developments in hybrid services, such as common air interfaces, frequency reuse capabilities, and reduced signal interference. The technology represents a landmark development by bringing wireless communications to areas where coverage has traditionally been spotty, and by enabling seamless transfer between the networks.

SM
How is the integration of satellite into cellular devices going to impact cellular operators?

Drew Caplan
SkyTerra believes satellite augmentation of cellular systems — as long as there is no impact to device form factor or cost — provides a meaningful and significant increase in their utility. The major national carriers all focus on ubiquity of access in their marketing campaigns, but the reality is that the U.S. geography can not be ubiquitously covered by terrestrial systems.

Based on SkyTerra’s ongoing primary research and analysis, the company believes consumers will perceive a satellite application to be a meaningful differentiator and one for which they would pay. The implications of this for operators delivering service in an undifferentiated marketplace are significant, as historically minor differences in product have yielded extraordinary shifts in consumer expectation and demand.

Satellite services extension, as a differentiated product, answers questions that are critical to consumers and enterprises alike. It provides coverage when terrestrial networks are unavailable due to catastrophes and it provides coverage in areas that can’t be economically served terrestrially. These are the types of services that build customer loyalty and could yield decreased churn in an ever-more competitive environment.

SM
What are the benefits of an ATC network for end-users?

Drew Caplan
Consumers today demand the portability of small, lightweight cellular devices. They also increasingly want better coverage in order to stay in constant contact with friends, family and co-workers.

Until now, it’s been difficult for people to stay in touch when traveling to a remote area, or following a disaster which often results in terrestrial landlines becoming congested or destroyed. The development of an ATC network will mean individuals have a reliable means of staying in touch. In addition, the satellite-terrestrial network will enable a wide range of consumer telematics services, including vehicle security, infotainment, and remote diagnostics, unique multicasting applications, as well as web-based content and mobile broadband services.

For the public safety and emergency management community, the development of a hybrid network means the mobile devices officials use everyday could become the same device they reach for during an emergency. This will ensure all public safety professionals know how to use the equipment and will be able to communicate during a disaster.

SM
Drew, given current economic conditions, is it less likely that ATC deployment will be undertaken?

Drew Caplan
The longer-term trend of increased usage of mobile data isn’t going to change and the demand on spectrum resources are going to continue to increase. SkyTerra believes that its spectrum assets provide a powerful platform for 3G and 4G services in conjunction with the right set of partners, while our satellite capability and space assets provide a powerful synergy to the ultimate service offering.

SM
In September 2008, SkyTerra signed a deal with Qualcomm. Please explain the significance of that deal.

Drew Caplan
SkyTerra and Qualcomm announced a 15 year agreement in which Qualcomm will integrate satellite and cellular communication technology in select multi-mode mobile baseband chips, including Qualcomm’s first LTE modem. As a result, for the first time ever, satellite connectivity will be enabled in mass-market wireless handsets and devices, enabling these devices to have ubiquitous mobile communications coverage from anywhere in North America, including areas where traditional cellular service is currently unavailable or unreliable.

Agreements like this are just the first of many partnerships between satellite companies and wireless manufacturers and operators. They illustrate how the two industries are taking advantage of opportunities to offer consumers increased geographical coverage and new applications on traditional cellular-sized handsets and other small mobile devices.

SM
When will phones be available?

Drew Caplan
The chipsets that will power the integrated satellite-terrestrial devices are scheduled to become available starting in the second half of 2010. While we are not announcing specific device plans at this time, handsets and PC cards could be available as early as 2011

SM
What will manufacturers and carriers have to do in order to integrate Qualcomm’s chipset and satellite capacity into their handsets?

Drew Caplan
Device manufacturers will need to add certain discrete components, such as radio band filters, to their units to support L-band. Importantly, this is not any different or more costly than the addition of any other new band, such as 700 or AWS.

Outside of cost, there will be no impact on form factor or power. A “regular” cell phone will be able to reliably communicate with SkyTerra’s satellite when outdoors, with unobstructed view of the sky. The satellites will have extremely high receiver sensitivity and will work together to combine receive signal power, which, along with the efficiency of Qualcomm’s satellite adapted EVDO protocol, will allow for reliable satellite service on a cell phone.

SM
ICO and TerreStar have signed similar deals with Qualcomm. What does this mean for SkyTerra?

Drew Caplan
SkyTerra, ICO, and TerreStar recognize the importance of working cooperatively with one another and with Qualcomm in order to make ATC a reality, and will continue to partner on this specific technology platform. We may be competitors in the marketplace, but we are all trying to do what is right for our industry and for consumers.

SM
We appreciate your time, Drew.