Satellite Based 2way Broadband Services'

1
Satellite Based 2-way Broadband Services. Robert
Bednarek, Executive Vice-President Corporate
Development
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European penetration of broadband and narrowband
Internet access
Number of broadband HHs (Thousands)
Markets ranked by absolute number of broadband HHs
100
Broadband
Narrowband
No connection
Germany
2551
38.1
France
23.9
962
Spain
12.5
904
UK
25.1
900
814
Netherlands
7.0
Belgium
4.2
701
Italy
21.2
692
Sweden
554
4.0
Austria
348
3.3
346
Denmark
3.2
266
Switzerland
3.6
150
Portugal
3.7
109
Norway
2.2
Finland
2.4
95
Luxembourg
0.2
lt3
lt6
Million HHs
9400
Broadband defined as DSL, cable and satellite
subscribers Narrowband defined as PSTN and
ISDN Internet users Source CMA Consulting,
Q2/2002
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Analysts forecast 6 of broadband households will
be satellite homes by 2005
Number of broadband households by access
technology, EU 5
Others (Fixed wireless, fiber)
Satellite
Cable
DSL
Germany, UK, Italy, France and
Spain Source Morgan Stanley Dean Witter, June
2001, Telecommunication and Internet Services -
Industry Overview
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New Services Potential Satellite Broadband
Demand

• Total European broadband households demand
  estimated to be in excess of 29 MM by 2005
• Conservative estimate of 7.3 MM households with
  no access to terrestrial upgraded cable or DSL
  reach by 2005
• More than 45 of ASTRA digital households are
  online
• Broadband demand can be met by existing satellite
  capacity
• Investment into next generation satellite
  technology subject to market development

Lack of Access to Upgraded Cable Modem or DSL and
the Convenience of a DTH Bundled Service Create a
Significant Market for Broadband Services

• Notes
• Source McKinsey analysis 2001 Morgan Stanley
  report, June 2001

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VALUE OF SATELLITE BROADBAND

• Satellite Based Broadband Services
• Allow telecom operators and internet service
  providers to offer broadband connectivity via
  satellite as a complementary connectivity in
  those regions where terrestrial services are not
  available or economical
• Provides non-discriminatory access to broadband
  resources
• Minimizes up-front infrastructure costs
• Social Value of Broadband
• Public services such as e-learning (reduce costs
  and improve quality and educational outcomes),
  e-medicine (teleconsultation), e-government
  (rural areas)
• Transform the way public services are organised
  and delivered
• Enhance educational experiences and
  opportunities
• Revolutionary change in the entertainment
  content, applications and services

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Complementary Network Services
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Two-way broadband via satellite SATLYNX

• Two-way broadband services for residential/SOHO
  and SME/Corporate users via SATLYNX, a
  joint-venture with Gilat Satellite Networks and
  potentially Alcatel Space
• Full range of services by operating the Gilat
  Platform family as well as DVB RCS based BBI
  platforms.
• European market leader

Two-way broadband services for residential and
business users
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Recent Major Broadband Interactive successes

• Spain
• NEO SKY Wireless corporate LMDS operator with
  current presence in 33 cities. Majority owned by
  Iberdrola, major Spanish power company.
• Satellite offers complementary service rollout
  to 100 of territory, for NEOs corporate
  services already provided to Spanish enterprises
• Hundreds of companies with multiple sites for
  IP-VPN connectivity and satellite two-way
  broadband access for 2002
• Neo is implementing satellite WIFI satellite
  solutions in partnership with Cisco
• Commercial service since Q1 2003.

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Recent Major Broadband Interactive successes (2)

• Cyberkiosque
• Contract signed with La Poste group, using ASTRA
  satellite space segment across Europe
• Public service internet access points, local
  community information and teleconferencing
  application open to general public in
• post offices and
• local communities across France
• Possible to interface to existing LAN
  infrastructure and to expand to multiple kiosks

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Elements for a Successful European Broadband
Deployment

• Encourage and guarantee fair competition
  conditions
• Support continued broadband content and
  applications development
• Support technical standardization efforts based
  on DVB-RCS and low-cost interactive terminals
• Lift technical regulatory hurdles
• Large-scale broadband requires guaranteed
  exclusive
• access to satellite radio frequency spectrum
• Broadband terminals require the need for
  streamlined
• or blanket licensing