Promoting Investment in Mobile Satellite Services Olga Madruga-Forti Vice President, Legal and Regulatory Iridium Satellite LLC Olga.Madruga-Forti@iridium.com

Satellite Connectivity Plays Essential Role in Achieving WSIS Targets by 2015 Targets include Connecting: Villages with ICTs and establish community access points Universities, colleges, secondary schools and primary schools with ICTs Scientific and research centers with ICTs Public libraries, cultural centers, museums, post offices and archives with ICTs Health centers and hospitals with ICTs All local and central government departments and establish websites and e-mail addresses

Satellite Connectivity is Critical in Times of Disasters and Emergencies Always available even though terrestrial infrastructure is damaged, destroyed or overloaded Interconnect widely distributed networks during times of disasters Provide interoperability between disparate systems and networks. Can warn of impending disasters Uniquely appropriate for first responders

Critical Role of Regulator Commercial investment is based on analysis of the opportunity, the costs involved and legal possibilities and requirements. There are three key roles of the regulator. 1. POLICY. Regulators create opportunities and inform the public. Policies should exist, be transparent and readily identifiable. 2. COSTS. Regulators have a significant role in determining the cost of providing service. Spectrum fees, and all local requirements sum up by country to affect feasibility. The higher the cost, the less likely an investment will occur, particularly where market for services is small 3. ADJUDICATION. Regulators also affect timing and rollout in adjudicating applications and authorizations. Key is promoting competition, transparency in regulatory process, light-handed regulation where possible

Iridium Provides Global Coverage Constellation of 66 Low Earth Orbit (LEO) satellites 6 planes of 11 satellites Polar orbits provide at 780 km altitude 100% global coverage Inter-satellite links are key differentiator Multiple spares in orbit Mission Orbit at 780 km (485 mi) (66 Satellites) Storage Orbit 5 5

Barriers to Satellite Connectivity Service Barriers No policy. Approval required for satellite system in every country, not just the distributors High application fees, licensing fees, infrastructure requirements Lengthy approval process, local incorporation requirements Equipment Barriers Difficulty in obtaining type approval. Absence of coordination between different parts of the government (e.g., customs and the regulatory authority) Results?? Satellites will bypass the market. Users left unserved.

Facilitating Market Access and Investment Light-touch regulation – “Open Skies” policy Minimum necessary to achieve government objectives of protecting public safety and managing scarce resources Simplified application process for foreign satellite systems Focus on the service provider (distributor) and not on infrastructure Regulations should be technology neutral Accommodate the maximum number of satellite systems possible Adopt application fees and annual fees that reflect the actual cost of regulation Rely on international coordination process at ITU If satellite is operational, it is coordinated Blanket licensing of terminals and other terrestrial equipment

International and Regional Efforts to Facilitate Investment GMPCS MOU Blanket or class licensing for handsets, mutual recognition of type approval Elimination or reduction of customs requirements for handsets Allow MSS subscribers to carry and use their handsets in-country Tampere Convention Facilitate provision of prompt communications assistance during times of disaster and emergencies Covers both installation and operation of communications systems Addresses regulatory barriers in advance Licensing Use of frequencies and equipment Import of equipment Movement of personnel

Regional Efforts European Union Granted a pan-European license for S-band Eliminated individual country type approvals of satellite and other telecom terminals Introduced harmonized equipment standards CITEL Recommendation 20 (VIII-06) Consider the adoption of procedures that facilitate the free circulation and implementation of GMPCS satellite system terminals for when Administrations consider them needed Notify the CITEL Exec Secretary of authorized systems and terminals, including contact points for posting on CITEL website .

Country-Specific Examples of Light-Touch Regulation Satellite system does not require license Focus on distributor of service No limits on number of licensees or foreign ownership. Observe ITU coordination of frequencies. Singapore Service-based Operator License No application fee Annual fee of US$3,384 Uganda Public Service Provider License Application fee – US$2,500 Annual fee – US$10,000 plus 1% levy on gross annual revenue in country Uruguay Low fees, which are transparent and identifiable Speedy adjudication.

Conclusions To promote investment in satellite services, regulators should adopt a “light touch” Eliminate unnecessary regulation Streamline regulations for satellite services Regulators should work through regional and multilateral fora to harmonize regulations and standardize licensing requirements Regulators should coordinate with other government agencies to promote ease of entry and reduced costs for satellite terminals and other necessary equipment