MR Interview: Erik Ceuppens, SVP, Satellite Communications, Airbus Defense & Space CIS

Transformation in the maritime communication sector continues, as Airbus Defense and Space announces plans to sell its commercial satellite communications business.

 

MR spoke with Erik Ceuppens, SVP, Satellite Communications, Airbus Defense & Space Communications, Intelligence & Security (CIS), to help put the development in perspective.

The maritime communications sector has been in near continual flux for nearly two decades, with merger and acquisition activity a constant. In tandem with development of innovative software solutions, the connection between ship and shore – particularly the advent of maritime broadband – provides the vital link to help make shipboard operations more efficient and provide enhanced amenities for crew.

Immediately following the SMM 2014 in Hamburg, the latest sector news broke when Airbus Defense and Space – as a part of its Group Strategy Review in 2013 –  announced in mid-September that it would divest itself of its commercial and para-public communication business (including Professional Mobile Radio and commercial satellite communications services activities). To put it concisely for those in the commercial maritime sector, this essentially is the Vizada business (except for the government portion) that was bought by Airbus in 2011 including the strong Marlink brand. To help put things in perspective there is no one better than Erik Ceuppens, an industry veteran who has served as the Executive Director Business Communications for Astrium Services (2012/2014); the CEO Vizada EMEA & Asia (2007-2012); the CEO of France Telecom Mobile Satellite Communications (2004-2007) and previously Vice President Marketing & Customer Operations (2001-2004).

“We really are focused as a management team to continue the continuity to our customers, with the same high quality network of advanced VSAT,” said Ceuppens, who said that although there have been changes in overall ownership over the past years, there has been a consistent management team and mission. “We will continue to accelerate our innovations; we will not slow down.”

Ceuppens stressed the continuity of management and mission, particularly since when the announcement was made Airbus did not identify new ownership for the company, and in fact at press time there were no negotiations underway.

“Airbus, as a public company, decided to communicate (the decision to divest) as soon as a decision was taken,” said Ceuppens. “We are in the early stages, as the sales process will have to be started. The process will hopefully find a conclusion by mid-2015, but today there is no clarity on who the new owner will be, there are no talks going on today,” though he did admit that there was strong interest from prospective industrial and financial owners.

While Ceuppens could not comment on the total value of the business to be sold, of the business communications activities to be sold, maritime accounts for about  66%, while land-based “enterprise activities” make up the remaining portion.

And according to Ceuppens the maritime sector is strong and growing, saying that it expects to sell 800 VSAT units this year alone, and that the maritime VSAT business for the company has quadrupled in the last 18 months. “The commercial maritime market is dynamic, and you must have agility, speed and entrepreneurship to keep ahead of the market,” he said. “Today we are living the migration from narrow band to broadband. The demand for VSAT services is very strong, as broadband communications have become more affordable. This is being driven first by crew demands, but increasingly by the business unit of the ship, as owners increasingly view ships and boats as remote offices with the need for connection.

(As published in the October 2014 edition of Maritime Reporter & Engineering News - http://magazines.marinelink.com/Magazines/MaritimeReporter)