1. 1 TITLE PAGE The State of the Global Satellite Industry: Trends, Opportunities, Challenges Broadcast Cable & Satellite Eurasia 2007 November 22, 2007 Presented by Susan J. Irwin President, Irwin Communications, Inc.

2. 2 Irwin Communications, Inc. Satellite Communications Consulting Founded ın 1985 Based in Washington, D.C. Market Research, Business Development, Market Analysis, Capacity Brokerage FSS, MSS, Broadcastıng, Broadband, VSATs Chair, SATCON (Satellite & Content Delivery Conference and Expo) since 2002, next SATCON October 15,16 ın NYC

3. 3 Global VSAT Forum Non-Profit VSAT Industry Association 180+ Member Organizations in 80 Nations Advancing Satcom Interests Worldwide Thru: –Regulatory Reform & Market Access –Education & Training –Technical Support (e.g. Type Approvals, etc) –Industry Promotions (e. g. Events, Online, Publishing, etc) –Market Intelligence & Commercial Leads

4. 4 Satellite Industry Overview Satellite Manufacturing Component and Subsystem Manufacturing Ground Equipment Mobile Terminals Gateways Control Stations VSATs Handheld Phones DARS Equipment Satellite Services Mobile Mobile Data Mobile Voice Fixed Broadband Private Networks Remote Sensing Transponder Agreements Broadcasting Satellite Television Satellite Radio Launch Industry Launch Services Vehicle Manufacturing Component and Subsytem Manufacturing

5. 5 World Satellite Industry Revenues World satellite industry revenues had average annual growth of 10.5% for the period of 2001-2006

6. 6 World Revenues By Sector Satellite Manufacturing and Satellite Services showed the greatest growth: 54% and 19%, respectively

7. 7 World Satellite Services Revenue

8. 8 Satellite Services Findings Satellite Services growth of 19% in 2006 outpaced 2005 growth of 13% –Satellite Television revenues increased 17% globally in 2006, again contributing the largest portion of overall satellite services growth Global satellite TV subscribers grew about 10% over 2005 levels, reaching approximately 89 million worldwide –Satellite Radio continued to experience strong growth Revenues doubled from $0.8 billion in 2005 to $1.58 billion in 2006 Subscribers grew by 50% - from 9.4 million in 2005 to 14.2 million in 2006 –Overall Fixed Satellite Services revenue grew by 20% over 2005, while Mobile Satellite Services revenue increased by 18%, driven by growth in voice traffic

9. 9 Advantages of Satellites Broad Geographic coverage Ease of Deployment Point-to-multipoint High bandwidth Supports hybrid and asymmetric networks Economics, Coverage, Scalability, Reliability! +

10. 10 Satellite Services & Applications Consumer –DTH Television –Satellite Radio –Satellite Broadband –Video & Data to Handhelds Cable, Broadcast TV –Program Dıstrıbutıon –Satellite Newsgatherıng Enterprıse, Govt –VSATs –Hybrid networks –Streamıng, webcastıng –VoIP –Internet access –BTV, Distance Learning –Disaster recovery –Emergency response

11. 11 Emerging Services HDTV IPTV Mobile TV Satellite radio Cellular backhauls Satellite broadband Mobile broadband National security E-Government

12. 12 Ensure social benefits –Reasonable level of communication for society –Increased exposure to new ICT Encourage economic development –Communication between individuals and communities –Access to education and information –Develop more competitive environment Enhance local government services and administration –Local governing and influence in remote areas –Education –Health services –Security and police E-Gov: Public Sector Motivation

13. 13 Global HDTV Channels Despite dramatic growth since 2005, HDTV channels still account for only 2% of all television channels carried via satellite today Over the next five years, HDTV channels are expected to grow another 600%, with average annual growth of 35%

14. 14 Key Market Drivers Strong global economic climate Continued government and military demand and investment Accelerated replacement and realignment of major commercial fleets Increasing levels of global consumer demand Availability and relative ‘affordability’ of capital for investment

15. 15 Key Market Challenges Ongoing regulatory obstacles –India, China Regional economic weakness –Africa, Asia, S. America C-band spectrum battle –Potential loss of valuable frequencies

16. 16 C-Band Usage and Applications Industry Supply, User Demand –ITU Allocation –Many satellites available –Widely used for a multitude of satellite services like: Offshore communications TV broadcast to cable networks and individual receivers VSAT networks, backhaul Internet providers Emergency and disaster recovery Satellite News Gathering MSS feeder links

17. 17 Why is SatCom Important in C-band?

18. 18 Newcomers in C-band Downlinks Band commonly used by FSS satellites Additional band (FSS, feederlinks for MSS, …) Future mobile phone networks (IMT Advanced, 4G, ….) Broadband Wireless Access (BWA), WiMax, FWA, …. Is being considered by ITU Is currently being introduced country by country worldwide BWA or IMT in ANY part of satcom C-band downlink will have an impact on FSS reception in ALL of the band 3.43.53.63.73.83.9 4.0 4.14.2 Std. C Etx. C

19. 19 WRC 07 Safeguards C-band Frequencies No global identification for IMT (International Mobile Telecommunications) including WiMax) Regions 2 & 3 (Americas and Caribbean, Asia) overwhelming support for interference- free C-Band Region 1 - Broader support for IMT in Africa, Middle East, Europe

20. 20 Conclusion Robust global industry-wide growth signals real market expansion –Developed markets show steadily increasing demand for traditional and emergıng satellite services –Continued demand for increased geographic penetration in developing and rural areas –Increasing requirements for enhanced products/applications – DVB, IP, HD, Handheld devıces –Changing regulatory regimes worldwıde

21. 21 Teşekkürler Global VSAT Forum www.gvf.org David.Hartshorn@gvf.org Irwin Communications, Inc. www.irwincom.com Sirwin@irwincom.com