Tooway™ A new dimension for direct-to-home broadband

Ali KORURRegional Director, Paris, Eutelsat S.A.CEO, Istanbul, Skylogic Eurasia

April 2011

2Paris, July 2010

Market Analysis: overview

Unserved Market: 13 M HouseholdsUnserved Market: 13 M Households

> 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

> Urban areas within 3 km of next DSLAM, with FTTH or near cable headend

> Several competing providers of broadband access

Over-served MarketOver-served Market

Underserved Market: 17 M HouseholdsUnderserved 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

Market Failure

* Unserved : Source: IDate, April 2009 in Broadband Satellite in Europe and North Africa** Underserved : Based on country specific studies analysis

3Paris, July 2010

Multiple initiatives in Europe to bring broadband for all

“Avanze”(5.1 Bln€)

“Piano Caio”(1.3 Bln€)

“France Numérique 2012”

“Digital Britain”

“Irish National Broadband Scheme”

(223 M€)

“German broadband expansion

plan”

Swiss: USC 2008

“Broadband Action Plan to 2008”

(210 M€)

“National Broadband Plan”

EU Structural and Cohesion funds

for infrastructure

Sources: CM_CIC Securities estimation, IDATE 2009; European Commission (2009)

Other EU countries

With governmental initiative

Benefits from EU funds for infrastructure

Legend

Holland: “National Farmers Plan”

EU-Goal: Universal broadband access for each European home at competitive price by 2013 (Digital Agenda for Europe: 2015.eu)

EU-Goal: Universal broadband access for each European home at competitive price by 2013 (Digital Agenda for Europe: 2015.eu)

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KA-SAT – Europe’s first high-throughput satellite for new-generation services

SA

TS

OF

T

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KA-SAT @ 9°East

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

the most powerful satellite ever build

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KA-SAT 35 x more capacity than traditional broadcast satellite

KA first generation

KA second generationHigh throughput satellite

Estimated capacity in Gbps

Paris, July 2010

Traditional Ku

This increase of capacity makes satellite connectivity affordable both for consumers and for business applications

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KA-SAT – European IP MPLS core network

Istanbul

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KA-SAT end-to-end system architecture

Customer premise

Reseller premisesSkylogic support

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Ka-Sat services

B2C B2B

KaSat

Telecom Video

Terrestrial network extensionStar networksSOHO’s and SME’s internetaccess

SERVICESLight SNGRegional TVCorporate TV

SERVICES

Professional TerminalsBasic: 77 cm dish, 3W, circular polarization, up to 40Mbps up/ 10Mbps downAdvanced: 120 cm dish, 4W, local routing, up to 50Mbps up/ 20Mbps down

All-satellite Internet broadbandAccessTriple-play offer

SERVICES

Consumer Terminals

77 cm dish, 3W, circularpolarization

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Terminal description on KA-SAT

More powerful, more convenient to install

Type

Basic Terminal(< 80cm/3W, < 50dBW)

Advanced solution(100 cm, 120cm/4W,< 54dBW)

50Mbps

20Mbps

Down Up

40Mbps

10Mbps

Consumer terminals

Professional terminals

11Paris, July 2010

Tooway™ Roadmap for KA-SAT

January 2008Tooway on HB6January 2008

Tooway on HB6September 2007Project launch

September 2007Project launch

December 2010 KA-SAT Launch

December 2010 KA-SAT Launch

June 2011Tooway on

KA-SAT

June 2011Tooway on

KA-SAT

Q2 2010KA-SAT

Ground segmentdeployment

Q2 2010KA-SAT

Ground segmentdeployment

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Tooway™ service packages

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Page 12

Standard packages tooway 6 tooway 8 tooway 10 tooway 10+

Max download, Kbps(*) 6144 8192 10240

Max upload, Kbps(**) 1024 2048 4096

IP addressingDynamic public IP

address1 1 2 4

4 Week aggregated volume consumption, GB

(***)4 8 13 25

(*) 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.

13June 2010 page 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

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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

15Paris, July 2010

Tooway™ opportunity

16Paris, July 2010

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

Conclusion•Market driving need for ubiquitous broadband NOW

•Satellite can deliver ADSL-comparable service NOW

•Future proofed KA-SAT for ADSL2 + comparable service