Question-and-Answer Session
Operator
(Operator Instructions)
We’ll hear first from Chris Quilty with Raymond James.
Chris Quilty – Raymond James
Hi gentlemen. Can you hear me okay?
Patrick Spratt
I can.
Chris Quilty – Raymond James
Great, I was hoping you could give us, perhaps, a little bit more color on the mini-VSAT service in terms of, perhaps, number of ships deployed or at least when we look at the service revenue or as I guess you’d call it now, the non-product, non-hardware revenue, how much of that is actually starting to be generated from mini-VSAT?
Martin Kits Van Heyningen
Well, we don’t want to talk about specific numbers of units for competitive reasons, but I think Pat may be able to give you a better detail. But it’s certainly the majority of the service revenue now for their airtime business is coming from the mini-VSAT. So we have seen the very rapid growth there in terms of subscriber revenue growth.
Chris Quilty – Raymond James
Okay, and in terms of, I think you mentioned, there’s a couple of other fleet opportunities, presumably the recent one where you announced M9 sales was around 60 units. Is it fair to assume a fleet deal in order of 60, 100 units?
Martin Kits Van Heyningen
Yes, some of the fleets are bigger than that, but yes, that’s what we would call a fleet deal. We’ve already won some fleet orders that were 10 to 20 at a time for the V7. But when I’m talking about a big fleet order, it would be in the range of 50 to 200, somewhere in there.
Chris Quilty – Raymond James
Okay, great and last quarter you gave us some metrics on the monthly ARPU and it had trended from 1,800 up to 2,000. Is that a trend you’re still seeing?
Martin Kits Van Heyningen
I don’t think we’ve seen any further increases, but certainly it’s still above 2,000 last time I checked.
Chris Quilty – Raymond James
Okay, and in terms of any competitive responses you’ve seen out there or other indicators in the channel that competitors may try to match the service or do you think there are major competitive risks?
Martin Kits Van Heyningen
Well, I think probably the most significant new competitor would be Iridium with their open port system. But it’s an L-band system so it’s really more of a competitor for Inmarsat because you’re still paying by the megabyte and it’s fairly expensive to get started. But I think that’s probably the most significant new competitor in the market.
- To read the full transcript on Seeking Alpha, click here »
