Universal Access

1. Universal Access ITU/BDT Arab Regional Workshop on “Visibility of Rural Connectivity” Khartoum - Sudan, 5-7 September 2004 Mohamed Al Hosani Regulatory Officer mohamed.alhosani@thuraya.com THURAYA Proprietary Information

2. Presentation Covers • Vision • System Architecture • Thuraya Coverage • Economic impact of ICT Development • Thuraya’s Role as a provider of Universal Access • Universal Access • Universal Access through Satellite Technology & Issue of Affordability • Thuraya’s Solution for Affordable Telecommunication Service • Subsidization of Telecom Service for provision of Universal Service • Technical & Commercial Challenges • Other Customized Innovative Solutions for Fixed Applications THURAYA Proprietary Information

3. Our Vision…. Our vision is to provide affordable state-of-the-art Telecommunications services in a broad range of solutions, with specific attention to voice and data. Our target customers are all those in need of basic and advanced telecommunications services in territories of our operation, being land, sea and sky. THURAYA Proprietary Information

4. Space Segment System Architecture Ground Segment Terrestrial Network Primary Gateway Vehicular & Fleet Management Payphone Maritime FDU Handheld USER SEGMENT THURAYA Proprietary Information

5. Thuraya Coverage Area THURAYA Proprietary Information

6. Economic Impact of ICT Development • The presence of telecom infrastructure has a positive and catalytic impact on economic growth and the development of a particular area and region; • The development of Information Communication Technology (ICT) infrastructure has the capacity to drive up business opportunities. • The communication systems can be used as a tool for eliminating: • Illiteracy (through tele-education); • Increasing medicare (through tele-medicine); and • Increasing business opportunities for a agriculture based rural economies. THURAYA Proprietary Information

7. Thuraya’s Role as a provider of Universal Access • Thuraya is more focused on a regional market that lacks basic telecom infrastructure as against global market. • A vast majority of countries within the Thuraya coverage area are either developing countries or Least Developing Countries (as defined by the ITU). More importantly 90% of the Least Developing Countries are under Thuraya coverage area. • Thuraya provides customized and innovative solutions for different market segments e.g. fixed application, payphones, PCO’s, maritime applications, etc that could be used to provide telecommunications access to all cross sections of the society in any country that is within Thuraya satellite coverage area. THURAYA Proprietary Information

8. Universal Access Universal Access is also defined as provision of access to telecommunication services irrespective of the topography and population density of the area, some of the important factors that determines the viability of the telecommunications access system. The specific goal of Universal Access is: • To provide telecommunication access to a particular portion of the population; • To achieve certain levels of telecommunication penetration; or • To ensure that specific services are provided to a particular group. Thuraya is an important tool to provide Universal Access to Rural & Remote areas that are defined by their low income, sparse population and difficult terrain; Introduction and establishment of tele-centers at such rural and remote localities provides an essential means of communication as well as improves the quality of life of the inhabitants of the area served by such tele-centers; THURAYA Proprietary Information

9. Universal Access through Satellite Technology & Issue of Affordability • Affordability is the most important question regarding the use of satellite technology in providing Universal Access. • The people most in need to get connected can’t afford the telecommunication services provided by the satellite technology; • A concerted effort is required from all the interested parties and players i.e., the public sector as well as the private sector; • Thuraya on its part is making efforts to launch projects especially in the developing countries that are innovative as well as affordable; and • Thuraya offers low subscriber tariff in view of economic situation and affordability of the target market most of which resides in the developing countries within its coverage area. THURAYA Proprietary Information

10. Thuraya’s Solution for Affordable Telecommunication Service • In order to provide affordable rural telecommunications service in a country, the following entities are requested to reduce / review their respective part of the tariff that will affect the end customer. • Thuraya • National PSTN network operator • Local service provider/distributor • Government and National Regulatory authority (to reduce or completely eliminate license, revenue sharing fees, and taxation). THURAYA Proprietary Information

11. Thuraya is willing to reduce its charges for payphones deployed for the provision of Universal Access through the following: • Reducing satellite network charge for national traffic generated from such payphones; and • Optimizing other call routing charges through adopting more economical ways to exchange national traffic between payphones and the national PSTN. The national PSTN operator is requested to facilitate the provision of affordable telecom services through the following: • Provide lower termination fees for such service. • Encourage calls from PSTN to the country’s payphones by reducing calling rates to payphones in the same country. THURAYA Proprietary Information

12. Governments and the National Regulatory authorities are requested to facilitate the provision of affordable Universal Access through the following: • Provide support to encourage national PSTN to offer the desired termination fee for such calls as part of its Universal Service Obligations; • Waive any applicable license fee / revenue sharing fees and any other taxation / charges on such services; • Waive taxation on payphone/public call office services; • Waive customs duties on terminal equipment (Thuraya payphone / public call office); and • Regulators should play a role to achieve lower termination fees for such services. Thuraya believes that through cooperation of all involved parties, the national / local calling rate of US$/Minute 0.40 – 0.50 could be achieved as a first step. THURAYA Proprietary Information

13. Subsidization of Telecom Service for provision of Universal Service In order to further reduce the tariff for such telecom service, it is recommended to subsidize this tariff from Special Funds that have been established by a large number of National Governments and the National Regulatory Agencies for the provision of Universal Service to make the use of such telecom services affordable. The Special Funds for the Universal Service could be provided by: • The operators / service providers (PSTN, Cellular and other) to pay 1- 2% of annual revenue; • Government budget allocations / subsidies; and • Financing by international and local development bank / agency. The main reason is to further reduce the national call charges to the end customer in order to make it affordable and accessible to a wider segment of rural communities. THURAYA Proprietary Information

14. Technical & Commercial Challenges • The following are the technical challenges that are involved in provision of Universal Access: • Reaching scattered populations and remote villages is overcome by the satellite technology; • Quick and easy deployment is key to linking the underserved. • The commercial challenges are as follows: • Reasonable terminal equipment costs; • Affordable Tariff (National and International Calls). THURAYA Proprietary Information

15. Other Customized Innovative Solutions for Fixed Applications THURAYA Proprietary Information

16. THURAYA Proprietary Information

17. Thank You WE GO FURTHER…. YOU STAY CLOSER. THURAYA Proprietary Information