1. “Considerations in the creation of a secondary market for radio spectrum” Mike Antonovich Senior Vice President, Broadcast Services PanAmSat FCC Public Forum May 31, 2000

2. PANAMSAT BROADCAST SERVICES: A global business unit for the sales, provision and service of “contribution” services for the world’s broadcasters, news agencies, business television and distance learning networks, resellers and value-added service providers Integrated satellite capacity and teleport facilities booked, managed and provided on a global basis. A network of nearly 2,000 teleport and transportable uplink antennas to collect and retransmit signals to/from virtually anywhere in the world More than 6,000 hours of transmissions performed a month to more than 1,000 customers in 80 countries; supporting a reseller and service provider network that serves many more customers

3. 3 Revised August 12, 1999. Capacity subject to change without notice. THE WORLD’S LARGEST SINGLE-SOURCE PROVIDER OF OCCASIONAL-USE SPACE SEGMENT AND TELEPORT SERVICES: MORE THAN 160 PATHS ON 13 SATELLITES

4. 4 BROADCAST SERVICES GLOBAL REACH PAS-1R PAS-3 PAS-2 PAS-8 Galaxy PAS-5 PAS-4 PAS-7 US West Coast Europe Hong Kong Singapore

5. 5 How it works: Specific inventory has been set aside for long-term use by Broadcast Services to support an active and ongoing need for capacity by the customers Additional unsold capacity intended for sale to fulltime customers is made available on rolling 30, 60, 90 windows Customers with excess inventory establish PanAmSat as a resale agent for their partial-day or fractional satellite capacity PanAmSat actively markets, manages and provides services to our customers on the above inventory

6. 6 How it works: A 24/7 Global Scheduling Center to take customer orders Dedicated staff for carrier access and network monitoring Teleport facilities and operators to perform services Local interconnect to the customers Staff engineers and Special Events people to design, construct and deliver complex services on short notice Booking, billing and management systems Simple contracting mechanisms

7. 7 What has worked well in creating the secondary “spot” market for geostationary satellites? Radio spectrum allocated on a reasonably secure basis –FCC licenses and authorizations to meet the public interest standard –Enough bandwidth and a long enough license to justify taking on the business risks –Clear standards for managing interference –The due diligence standard: use it or lose it! Significant capital investments in management systems and service personnel –Teleports, access and customer service centers –Sales, service and support professionals

8. 8 What has worked well in creating the secondary “spot” market for geostationary satellites? A ready and willing user community –Broadcasters with a need for opportunistic bandwidth to cover preplanned and spontaneous news events –Distance learning and business television networks with a need for partial day or fractional transponder capacity Development and improvements in the enabling technologies –Development of SNG vehicles, compressed digital video systems, Internet-based video

9. 9 Can this model work for other radio spectrum? Yes: –With enough bandwidth is set aside long enough to justify the infrastructure development and deployment costs –With the ability to operate in a managed interference environment –With the MPEG/DVB and IP-based standards for transmitting video and data in place, a market can be found - “build it and they will come” –With the cooperation and support of the customers and service providers