“Considerations in the creation of a secondary market for radio spectrum”

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

4. 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

5. 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

6. 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

7. 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

8. 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