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April 2011

Tooway ™ A new dimension for direct-to-home broadband Ali KORUR Regional Director, Paris, Eutelsat S.A. CEO, Istanbul, Skylogic Eurasia. April 2011. Market Analysis: overview. Over-served Market. Urban areas within 3 km of next DSLAM, with FTTH or near cable headend

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April 2011

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  1. Tooway™A new dimension for direct-to-home broadband Ali KORURRegional Director, Paris, Eutelsat S.A.CEO, Istanbul, Skylogic Eurasia April 2011

  2. Market Analysis: overview Over-served Market • Urban areas within 3 km of next DSLAM, with FTTH or near cable headend • Several competing providers of broadband access Market Failure Unserved Market: 13 M Households Underserved Market: 17 M Households • Areas within approx. 3-5 km of a DSLAM. Broadband is available at a limited max. speed, up to few Mbps not allowing all kind of services (TV, VoD) • Usually only one, sometimes two competing providers • Areas located further than 5 km from next DSLAM or cable head-end, meaning no terrestrial broadband is available • In Europe, unserved areas usually have a low population density * Unserved : Source: IDate, April 2009 in Broadband Satellite in Europe and North Africa ** Underserved : Based on country specific studies analysis

  3. Legend With governmental initiative Benefits from EU funds for infrastructure Other EU countries Multiple initiatives in Europe to bring broadband for all EU-Goal: Universal broadband access for each European home at competitive price by 2013 (Digital Agenda for Europe: 2015.eu) “National Broadband Plan” EU Structural and Cohesion funds for infrastructure “Digital Britain” “German broadband expansion plan” “Irish National Broadband Scheme” (223 M€) Holland: “National Farmers Plan” “France Numérique 2012” Swiss: USC 2008 “Broadband Action Plan to 2008” (210 M€) “Piano Caio” (1.3 Bln€) “Avanze” (5.1 Bln€) Sources: CM_CIC Securities estimation, IDATE 2009; European Commission (2009)

  4. KA-SAT – Europe’s first high-throughput satellite for new-generation services MULTISPOT Frequenciesreused 20 times MHz 8 times more cost-effective for broadbandthancurrent satellite KA-BAND Twice more frequency band No interference Small size antennas y

  5. KA-SAT @ 9°East the most powerful satellite ever build • Satellite main budgets • Power • Spacecraft Power <14kW • Payload DC power 11kW • Solar Array Power up to 16kW • Mass • Payload mass ~1000 kg • Spacecraft dry mass ~3170 kg • Satellite launch mass 5.7t -6.1t • Orbital Manoeuvre life time 16 years • Satellite platform: EUROSTAR E3000 (Astrium) • Launch ILS Proton • Total capacity: 70Gbps • Launch date: 26 December 2011

  6. KA-SAT 35 x more capacity than traditional broadcast satellite KA second generation High throughput satellite This increase of capacity makes satellite connectivity affordable both for consumers and for business applications Estimated capacity in Gbps KA first generation Traditional Ku Paris, July 2010

  7. KA-SAT – European IP MPLS core network Istanbul

  8. KA-SAT end-to-end system architecture Customer premise Reseller premises Skylogic support

  9. KaSat B2C B2B Video Telecom SERVICES SERVICES SERVICES • Terrestrial network extension • Star networks • SOHO’s and SME’s internet • access • Light SNG • Regional TV • Corporate TV • All-satellite Internet broadband • Access • Triple-play offer Professional Terminals Ka-Sat services Consumer Terminals • 77 cm dish, 3W, circular • polarization • Basic: 77 cm dish, 3W, circular polarization, up to 40Mbps up/ 10Mbps down • Advanced: 120 cm dish, 4W, local routing, up to 50Mbps up/ 20Mbps down

  10. Terminal description on KA-SAT Triple Play • Telephony • Broadband Internet • TV channels received from neighbouring • satellites Small dish 71cm plug and play modem Consumer terminals 10 Mbps / 4 Mbps 1 cable Integrated self pointing Integrated Ku TV reception No polarisation tuning Professional terminals Type Down Up Basic Terminal (< 80cm/3W, < 50dBW) 40 Mbps 10 Mbps Advanced solution (100 cm, 120cm/4W, < 54dBW) 50 Mbps 20 Mbps More powerful, more convenient to install

  11. Tooway™ Roadmap for KA-SAT September 2007 Project launch January 2008 Tooway on HB6 Q2 2010 KA-SAT Ground segment deployment December 2010 KA-SAT Launch June 2011 Tooway on KA-SAT

  12. Tooway™ service packages (*) Peak speed reacheable using second generation SurfbeamTM technology; figure is 4096 Kbps on Surfbeam generation; (**)Peak speed reacheable using second generation SurfbeamTM technology; figure is 512 Kbps on Surfbeam generation (***) 1GB is 109 bytes. The volume is aggregated on the following way : VDownload + VUpload = V4week (considering VUpload ≤ ¼ VDownload.) When the subscriber volume passes the 4week volume threshold, he will experience lower speed (maximum 64kbps download/16Kbps upload with low priority for all the packages) and only FTP, HTTP, POP3/SMTP, IMAP and DNS on UDP protocols will be supported. Page 12 Paris, July 2010

  13. VoIP over Tooway • VoIP traffic with QoS will work over KA-SAT Tooway service as it is working currently on Pre KA-SAT Tooway service : • VoIP QoS will be setup based on distributor technical information to identify its VoIP GW • VoIP service will be billed to the distributor each month on the basis of consumed GB for VoIP services by its customers • VoIP traffic will be forwarded to the VoIP GW through internet • Each distributor will bill directly its subscribers • Tooway service will allow distributors to reuse VoIP devices of the market without any modification • VoIP with QoS is already operational on Pre-KASAT Tooway service over HB6 and EB3 satellites

  14. DTH reception on Tooway terminal • Easy DTH reception at 0.8°W, 4.8°E, 13°E or up to 19°E on the same antenna with installation of a specific additional Ku band LNB (compact twin LNB) • TV reception at 0.1°W need to be investigated • DTH kit easy to adapt thanks to a specific mount fitting to the Tooway antenna and simplifying its pointing • DTH performances equivalent to a Rx only 70cm antenna dish size

  15. Tooway™ opportunity

  16. Beyond broadband • KA-SAT’s significant capacity will enable Eutelsat to also address other markets: • Data services and broadband • Data services represent 19%* of Eutelsat revenues. • KA-SAT brings important economic advantages for point-to-point applications that can be selectively translated to our clients • Professional Video services • The satellite performance can benefit Satellite News Gathering operations, contribution links … • Opportunities for regional television • The spot beam configuration opens cost-efficient network opportunities for regional television channels requiring limited coverage * Based on first half year results December 31, 2009

  17. Conclusion • Market driving need for ubiquitous broadband NOW • Satellite can deliver ADSL-comparable service NOW • Future proofed KA-SAT for ADSL2 + comparable service

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