Framework 7 Research Avanti’s Experience One Great George Street, 10 October 2013 Graham Peters Consulting Director Avanti Communications Ltd

BATS – Broadband Access via Integrated Terrestrial & Satellite Systems Introduction to Avanti Communications  Listed on the London Stock Exchange (AIM:AVN)  Launched our first European Ka-band satellite, HYLAS 1 in November 2010  Launched our second satellite, HYLAS 2, covering Europe, Middle East and Africa launched in August 2012  HYLAS 3 covering West Africa to be launched in 2016  Consulting division has extensive experience in managing TSB, ESA and EU funded R&D projects in various domains. Avanti Communications is an innovative UK satellite operator using the latest technology to meet the growing demand for data 2

BATS – Broadband Access via Integrated Terrestrial & Satellite Systems Broadband Delivery by Satellite 3

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BATS – Broadband Access via Integrated Terrestrial & Satellite Systems Broadband Access via Integrated Terrestrial & Satellite Systems (BATS)  3 year project  15 partners  €12.1m total project cost, €8.3m funding   ICT Call 8 Project details 9

BATS – Broadband Access via Integrated Terrestrial & Satellite Systems Problem 10 EU Digital Agenda Target – 30Mbps broadband for all European Citizens by 2020 Forecast in 2020: in many European regions >50% households will lack “superfast” broadband. However, all will have the ability to access satellite and most to some “terrestrial” connectivity. BATS vision: Bridge the broadband divide currently widening between urban and rural areas through an integrated approach that combines satellite with other access technologies.

BATS – Broadband Access via Integrated Terrestrial & Satellite Systems Solution  Intelligent User Gateway (IUG): Measure of each link Key Performance Indicators (KPIs) such as throughput, latency, packet loss, jitter… Traffic prioritisation Identification of each application QoE requirements QoE to QoS mapping Intelligent multi-path routing decisions 11 Satellite 3G/4G DSL Priority DL/UL Throughput Latency Jitter Security Different QoE/QoS requirements HD TV Streaming HD VoIPMessaging Web browsing HD VoD Streaming

BATS – Broadband Access via Integrated Terrestrial & Satellite Systems Opportunity  Support Digital Agenda implementation Enabler to the delivery of cost effective superfast broadband service in both “un served” and “under served” areas  Increased satcom market size and closer integration with other networks  Worldwide Satcom market and jobs in Europe Worldwide Market opportunity: hundreds of B€ over next 10 years Upstream  E2E System engineering to strengthen industry competitiveness Downstream  European Standard to favour SMEs in equipment, services and applications 12

BATS – Broadband Access via Integrated Terrestrial & Satellite Systems BATS - a brief history  Avanti has a successful history of working on previous Framework Programmes, eg.FP5, FP6  Made several unsuccessful bids for projects in early rounds FP7 ICT (ICT Call 1 was December 2006)  Misaligned with the work programme  Lobbying  ICT Call 8 included in “Networks of the Future” an item for “Integration of satellite and terrestrial networks” Project idea and core team formed in Jan 2011 Jan 2011 Warsaw consortium building event July 2011 Call issued 16 January 2012 Proposal submitted March 2012 Hearing May 2012 Negotiation October 2012 Project start

BATS – Broadband Access via Integrated Terrestrial & Satellite Systems Call text “Innovative system architectures and technologies making possible the advent of ultra high capacity satellite communications systems, radically lowered transmission cost, broadband end-to- end connectivity one order of magnitude higher than that of current operational systems, seamless integration capabilities with Future Internet terrestrial based networks, mobile and fixed, notably through capability of dynamic joint reconfiguration of satellite- terrestrial protocols and integrated network management.” Proposal to ICT Call 8: Network of the Future objective (d): “Flexible, resilient, broadband and integrated satellite communications”

BATS – Broadband Access via Integrated Terrestrial & Satellite Systems Lessons  Proposals Focus Time Compelling idea - aligned to call Committed proposal team Well explained – answer the exam questions!  Administration: Significant paper pushing Rules Managing partners  Partner contributions Varying ambitions Varying commitment (people and companies)

BATS – Broadband Access via Integrated Terrestrial & Satellite Systems Benefits  New markets: New contacts Market and applications knowledge Different perspectives of the two industries Contact with potential customers  Technology: New technologies & techniques Develop technical expertise Medium term product development  Business: Staff development / team building / new competencies New business opportunities A commercially safe environment to try out new innovations Spin off projects

BATS – Broadband Access via Integrated Terrestrial & Satellite Systems Where we operate