Mark Slaughter, CEO and President of RigNet, Inc. (RNET), Interviews with The Wall Street Transcript

Wall Street Transcript

67 WALL STREET, New York - July 23, 2013 - The Wall Street Transcript has just published its Wireless Communications & Telecom Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Mobile Trends in Emerging Markets - 4G Infrastructure Capital Expenditures - Tower Cell Splitting - Global Wireless Spectrum Allocation - 4G LTE and 3G Infrastructure Upgrades

Companies include: RigNet, Inc. (RNET) and many more.

In the following excerpt from the Wireless Communications & Telecom Report, the CEO and President of RigNet, Inc. (RNET) discusses company strategy and the outlook for this vital industry:

TWST: In terms of trends, it seems the need for data is growing exponentially. Is that creating opportunities for you?

Mr. Slaughter: When we started the company in 2000, some of the rigs were what we called greenfield rigs, meaning they did not have active remote communications on them. When we went onboard back then, we weren't replacing anyone; we were putting in remote communications for the first time. Today, if we are on an existing rig, we are replacing somebody. Every rig is served. In some cases, rigs are not even allowed to drill without an active remote communications network in place.

We are definitely seeing bandwidth needs growing. We sometimes win twice for our investors, in the sense that we'll provide that bandwidth with a change order, but we are also providing a service. An example is video. We believe the next big thing is going to be video, and video is being used more and more for video conferencing, for WebEx presentations, for remote diagnoses of broken equipment out on the rig. In that case, we can take handheld video equipment that's explosive-certified on the rig floor and let the smart person back in the office look at a high-res image of the item that is broken. They may be able to fix it without having to fly out on a helicopter to the rig to fix it. If that's the case, the rig saves a lot of time and money.

We are not only selling, in effect, the bandwidth to provide video, but we are also managing the video devices on the network, so we are charging a managed services fee on top of the bandwidth charge. Again, we are rolling all that into a day rate, a simplified single day rate that captures all of that together. Those are the sorts of developments we're seeing today.

Crew welfare is also very important. There are 50,000 people on offshore rigs today. It's an aging population, and there's a new generation coming in of mostly 20- and 30-something males who are Internet savvy and always want to be connected. They are out there for 30-day tours, and while they are working a certain portion of the time, there is also a certain portion of their time when they are not working, but are stuck on a rig. Do they want watch old movies? No, they want to Skype, they want to browse the Web, they want to e-mail, they want to stay connected to their families.

Many of them want to...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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