8/7/2019 sg teledesic

1/17

8/7/2019 sg teledesic

2/17

Agenda

Company Overview

Project Overview

Technology Involved

Market Analysis

SWOT Analysis

Financial Analysis Challenges

Recommendation

8/7/2019 sg teledesic

3/17

Company Overview

Broadband Data Communication Service

Provider

Founded in 1994 by Craig McCaw Major Stake Holders

Motorola 26%

McCaw & Bill Gates 21% each

Saudi Prince Alwaleed 11%

8/7/2019 sg teledesic

4/17

8/7/2019 sg teledesic

5/17

Project Overview

Bridge Digital Divide

Technology Involved Technology Advantage

Market Analysis

Current Market

Customer Base

Competitor Analysis

8/7/2019 sg teledesic

6/17

Technology Involved

Constellation of 288 LEO satellites forproviding Data Communication Service

8/7/2019 sg teledesic

7/17

Technological Advantage

8/7/2019 sg teledesic

8/17

Market Analysis

Current Market

Customer Base

Competitor Analysis

8/7/2019 sg teledesic

9/17

Current Market

Internet Access Market

Values in million

Growing @ 1million/yr

Reach via ISP(whole sale

capacity)

Use T1 Services

Growing @ 0.5million/yr

Reach directly

Use T1 Services

Need speed & reliable

source

Can charge premium

Growing @ 6.6%/yr

90% population in metro

Use DSL, Dialup

Need speed @ low cost

Can Resale Capacity

Data of 2003 (rapid change in 5 yrs)

8/7/2019 sg teledesic

10/17

Access Methods - Enterprise

M/S drop by 23%

Requirement of speed

Willing to pay more

Values in %

Data of 2003 (rapid change in 5 yrs)

8/7/2019 sg teledesic

11/17

Dial up M/S drop by 46%

High speed technologies acceptanceHigh Speed @ Low Cost

Cable M/S boosted by 33%

DSL came & acquired 12% market

Access Methods Home Business

Values in %

Data of 2003 (rapid change in 5 yrs)

8/7/2019 sg teledesic

12/17

Access Methods Consumer

Values in %

Dial up M/S drop by 36%

High Speed @ Low Cost

Cable M/S boosted by 24%

DSL came & acquired 10% market

High Cost so limited consumers

Huge amount of untapped market segment

Data of 2003 (rapid change in 5 yrs)

8/7/2019 sg teledesic

13/17

Dialup consumptionprice constant

DSL, T1, Cable price

consumption

8/7/2019 sg teledesic

14/17

Customer Base

Fill in Gaps

High Speedmethodsprohibited

RuralCustomers

Price Factor

Unserved

Lowpenetrationof telecommnetworks

Government

may leverage

Developing

Nations

HugeMarket

Huge costspent

currently

Time ismoneyconcept

Maritime &Aviation

8/7/2019 sg teledesic

15/17

Customer Base

Need of rapid &reliable

communication

Remote Services

Criteria coverage

& price

WAN issues

MNC

WAN Applicationattract interest

Health, HumanService, Education &

Agencies

Huge Bandwidth

consumption inmilitary

Distance Learning

Government

8/7/2019 sg teledesic

16/17

Competitor Analysis

SkyBridge Venture of Telecomm

industry

High no. of EquityPartners

Boieng will launch

satellites

Avoided R&D

2001 launch date

ISP Existing Customer

Base

Distribution WideSpread

Initial Cost low

Others HALO

MEO

GEO

LEO

80 LEO @ 930 miles

Complex Ground

Segment

Gateway System (slow

& Expensive)

Regulations &

Approvals not received

Launch cost higher

Low SpeedLess Reliable

Limited Coverage

High Cost

Low SpeedHigh Cost

Entry Barriers(Capital &

Regulations)

Per Unit Cost for launch

Sky Bridge $12.5m

Teledesic $8.68m

8/7/2019 sg teledesic

17/17

SWOT Analysis

SWOT