Tore Morten Olsen

When European space giant Astrium acquired Vizada Group and its Marlink brand in late 2011, it instantly became the global leader in satellite communications for the maritime industry. Its choice of a Managing Director for the new unit was easy – Olsen had been running Marlink for the last five years.

Tell us about the Vizada acquisition.
Earlier, Astrium was dedicated to providing satellite services to governments and armed forces, building satellites and the Ariane launcher and – as EADS, our parent company – Airbus and Eurocopter. But with the acquisition of Vizada Group, Astrium Services established a strong global footprint within the lowest part of the value chain, the services provided to end-user customers on land, in the air, and at sea.

For Vizada and its service provider company, Marlink, it has been very positive to come under the ownership of a long-term-thinking industrial leader. There are many complementary areas that can create interesting and valuable solutions for customers. One example would be Astrium Services geospatial-information services, which provides input on data such as oil spills, icebergs, ship detection and tracking, etc. This is one of many types of service that can provide useful input for shipping companies sailing on the seven seas, and now Astrium Services has the in-house capability to actually deliver them to the end-user.

Did Astrium have a maritime business prior to the Vizada acquisition?
Maritime is in most companies the largest sector for providing satcom services due to the number of vessels and the industry’s reliance on communication to operate safely and efficiently. As the world’s number one commercial military satcom operator and service provider, Astrium Services already provides satellite communications to the most modern navies (UK, U.S., French, German) but was not involved in the commercial maritime business. This has all changed now, of course, and is a perfect example of how complementary the two organizations were when merged. We will use the synergies to provide better and smarter services for shipowners in the future.

Were you the head of Vizada when it was acquired by Astrium?
I was head of Marlink, the direct arm of Vizada Group’s satcom sales – Vizada’s own service provider, essentially. Vizada worked as a wholesaler, providing innovative solutions together with satellite airtime to a range of service providers globally, Marlink being one of them. After the merger I became head of both the indirect and direct maritime operations in the new merged business division called Business Communications.

Who are some of your biggest customers?
We have our largest market share in the European region, coming from the customer base of former Telenor Satellite Services AS (TSS AS) and France Telecom Mobile (FTMSC). As both of these companies were European-based we have the majority of our clients originating out of Europe but with global operations. Overall we have around a 30 percent market share in the maritime MSS (Mobile Satellite Services) markets and a very strong presence in the European maritime VSAT (Very Small Aperture Terminal) market, with a slightly smaller market share in the rest of the world.

What are some of your major product offerings?
What differentiates us in the market is our “connectivity agnostic” approach. This enables us to have an extensive range of value propositions, from small to large, based on the platform or connectivity that best fits the customer’s objectives. And all customers have differing needs and objectives, even if only slightly. So we need to have a highly flexible approach to the range of services and solutions we provide, from entry and premium standard VSAT to complex hybrid networks covering multiple services including VSAT, MSS and 3G/4G. There are many providers in the market, but few offer such a broad range of integrated solutions.

Our XChange VAS platform provides seamless integration between carriers and full control of a vessel’s or platform’s connectivity. It enables a customer to decide how connectivity should be paid for by passengers and crew: Is it a pre-paid card, perhaps a deduction from wages or, sometimes, is the public connectivity going to be free? XChange allows customers to decide this whilst also being a conduit for value-adds such as SkyFile mail solutions.

All in all, being responsible for the provision and integration of solutions that enable communication, whatever the carrier, means that we have to offer flexibility to customers and not just try to sell one technology and keep reinforcing how it’s the best for every situation. Our clear view is that different solutions provide different benefits to the various maritime markets we serve, and it is our job to ensure that we advise our clients on the most effective solution to meet their needs. Since we integrate solutions from so many network operators, hardware suppliers and software developers, we can provide alternatives that are scalable, non-proprietary and future-oriented.

Do you supply cruise ships as well?
Yes, cruise vessels are an important market for us. They have high bandwidth requirements as reliable, low-cost or even free passenger connectivity is a significant value-add for cruise lines. Passengers expect to be able to contact home when on a ten-day cruise or just post status updates on Facebook or tweet their friends. Because of the need for bandwidth, our cruise customers are generally on customized C-band and/or Ku-band networks, which can meet the demand of many simultaneous users.

Hybrid networks are becoming more of a possibility for cruise and passenger vessels as they are capable of meeting bandwidth demand by using the lowest cost/most reliable carrier at any specific time, even including terrestrial connectivity. The cruise and passenger industry is very focused on satisfying their customers’ demand for connectivity, which again drives demand for these highly customized networks.

What is the difference between VSAT, MSS, C-band, Ku-band, Ka-band, etc.?
They are all different technologies with different features, but what they have in common is that they all facilitate reliable and secure voice and data capabilities for shipowners in remote areas where no other long-range communication channel is available. They are different in terms of their capabilities; some use small antennas, others slightly larger. Capital outlay for the equipment varies massively, and airtime costs per minute for voice or MB for data differ too. Throughput is very different depending on which technology you choose, which defines what kind of services you can run over your link.

All these elements are taken into consideration when advising what technology shipowners really need. We are striving to be the experts on satcom as well as on the markets we serve, and we are comfortable about being able to offer the full range and not limit offerings to a specific network or only a single choice. This allows us to meet any requirements that shipowners might have.

Last month you signed a multiyear renewal agreement with Intelsat for C-band capacity.  Do you have similar agreements with other satellite companies?
In November last year we renewed capacity on the SES-4 satellite to provide our customers with the most complete coverage and the ability to leverage advanced services for maritime business communications, tracking systems, and engine performance systems as well as ensuring that crew and passengers experience high levels of availability. Located at 338 degrees East, SES-4 is among several SES satellites providing capacity to Astrium Services, enabling customization of services to satisfy specific needs of customers.

In September 2012, we leveraged capacity on the Intelsat 22 satellite to enhance coverage for our maritime VSAT services, such as WaveCall™ from Marlink and Pharostar™ in the Indian Ocean. Astrium Services is also utilizing the Intelsat 21 satellite, which is designed to provide Ku-band coverage in the southern Atlantic Ocean, expanding the maritime VSAT service capacity in specific regions requiring more coverage.

How was business in 2012 and what is the outlook for 2013?
Business for our customers is harder these days due to the long downturn period in shipping across the board. However, the underlying growth for communication continues, so although growth in 2012 was slower than anticipated we still saw healthy growth figures. With our enhanced capabilities as part of the Astrium and EADS group, we see increased take-up of our services and strong growth recovery.  As the maritime markets have adjusted to the new situation of the shipping industry, they are embracing the opportunities for efficiency improvements offered by our communication solutions. All in all this allows for a positive view of 2013, and we expect to continue to see accelerated growth throughout the year.

What are the major challenges facing providers of maritime communications services?  What do your customers want?
A major challenge from the shipowner’s perspective is that, because there are so many different offerings in the market, it becomes very confusing when comparing services and for them to work out what is best for their needs. Since we are talking highly technical solutions, it’s a challenge to figure out what they really need. Also, they may know what their need is today, but it might change as technology overall is changing very rapidly. So engaging with an experienced communications partner with access to all technologies and platforms is important.

Our customers have very different requirements depending on which segment they operate in. For instance, a seismic or specialist offshore vessel may have high data transfer requirements, so a high-throughput solution may be needed, and capital outlay may not be the customer’s biggest consideration. On the flipside, a box ship sailing global routes may have a much lower requirement for data transfer but still needs to ensure its crew can contact home or browse the Internet for news and entertainment. The cost of the equipment may be a much more important consideration in this scenario. As mentioned, all customers are different because all vessels and operations are different, which is why we make sure we have access to the full arsenal of satellite technology and services.

Our challenge is to design products that fit the different segments in order to provide the  operational efficiency that shipowners are constantly measured on, or the crew welfare that supports recruitment and retention, or, in the passenger sector, the customer satisfaction that ensures people will want to come on board year after year.

Ultimately, the customer wants flexibility. If cost and benefits are right for their needs today, they want to ensure they have the flexibility of changing to meet their future needs too.

Tell us about yourself.  At 45, you are relatively young to be running such a big company.
Thank you for the compliment, but I am unfortunately not that young any longer. I had my first job as the CEO of an affiliate of Telenor at the age of 32, and have found leading companies to be a function where I continuously develop. This has gradually led to leading larger units until I am now part of the team that will drive Astrium Services forward.

You spent a good chunk of your career with a company called Telenor.  Who are they?
Telenor was the former Telephone and Telegraph Authority (PTT) in Norway. They were pioneers in the early days of satellite communications and were founding partners of both Intelsat and Inmarsat. Taking my MSC at the Norwegian Technical University, Telenor was the natural choice for satellite communication. The company today owns and operates the Thor satellite system through a subsidiary but is first and foremost one of the world’s largest mobile phone companies. In 2007 Telenor sold most of its satellite business to Apax Partners, who again sold the company to Astrium in 2011.

Did you have any mentors or role models?  What did you learn from them??
Starting out as an engineer, I was very lucky to work with some of the early innovators in the satellite industry. They convinced me that nothing is impossible; it just requires persistence and persuasion and maybe more time to make things happen. Then later, when my career turned from engineering into management, I had strong mentors who helped me realize that the value of our business lies in its people and in their commitment and engagement, and in the partnership that they have with our clients. People are key to any achievements that we have made during my years as a leader.

What is your #1 job as CEO?
My #1 job is to ensure that we have the right people for the right jobs and that they work together to the benefit of our customers. I try to spend as much time as possible with our customers and with our people, to continuously ensure that we have the right mindset and right focus to maintain and grow the partnerships with our clients. When this is done successfully we meet the expectations of all our stakeholders, be it customers, shareholders or employees.

What is your vision for the company?  Where do you see it in five years?
Our vision is that we will be the leading provider of satellite communication solutions to the maritime industry. Backed by Astrium and EADS, this should absolutely be achievable. It means we need to create close partnerships with both our vendors and our customers. By doing so we foster innovation and accountability in everything we do, and we take full responsibility for the entire communication solution in front of the customer. Size matters, and we need to secure growth and stay “connectivity agnostic” to achieve this vision. The vision we have for the maritime business plays very well into the vision of Astrium, which is “Together, the Pioneer of the full range of space solutions for a better life on Earth.”

What do you do in your spare time?  Do you have any hobbies?
There is, unfortunately, too little time for hobbies, but I try to reserve time for some sports –typically cycling and sailing in the summer and cross-country skiing in the winter. I have two children who are very active in sports, and despite a very patient wife she also ensures that I get my fair share of taking them to their activities. In the fall I always try to reserve one week for bird-hunting together with our dog. I generally enjoy outdoor life so whenever possible you will find me either at sea sailing or in the mountains at our cabin.?

What advice do you have for young people starting out in the industry?
Young people are our future, so it is very important that we take good care of them in bringing them into our industry. This is an exciting world – and the opportunities are tremendous. Technology challenges are there to be resolved; the market is truly global, and opportunities for development will arise. I have always found that the attitude of those who develop the fastest is the attitude of people who are eager to contribute and to learn. Establish a strong network within the company and the industry, and challenge your manager’s way of thinking.

The real value you bring when coming into the industry from an academic institution is that of challenging the current practices. The real competence you have besides the specificities of your education is your ability to learn and adapt. Combine the two, and in addition seek advice from your network, and you have strong pillars.  Stay engaged and curious, deliver on your commitments, and you may have a great future in our industry.

Any final thoughts for our readers?
The maritime market is changing, not only for shipowners but also for satellite service providers. Consolidation has started and will continue, and I would advise the maritime community to keep their options open. The demand for connectivity will increase – new seafarers will not appreciate a life that keeps them from their personal habits of using communication tools, and this will drive demand. Operational efficiency gains can be achieved by better use of communication, and security measures imposed from regulatory bodies will continue to arise.

The requirements of tomorrow will be different from the requirements of today, and you want to make sure that your solutions and communications partners are well equipped not only to give you the solution you need today – but also the one you will need tomorrow.