Future Trend of Mobile Backhaul via Satellite

Future Trend of Mobile Backhaul via Satellite

February 23, 2016

HUGHES PROPRIETARY2 H56136 05/01/2023

Company Overview


Hughes Network Systems

$3.4 billion2014 revenue

$1.4 billion

30+ years in the VSAT business

5+ million VSATs shipped1.5+ million VSATs operated by Hughes

Trusted Provider to Enterprises Worldwide

NORTH AMERICA (Germantown, MD)

EUROPE (Germany)

SOUTH AMERICA (Sao Paulo)

INDIA (New Delhi)ASIA (Delhi)

Global Operations Managing sites in more than 100 countries


Hughes Heritage of Innovationin Technology and Services

HUGHES AIRCRAFT COMPANY

Hughes launches first satellite broadband

service

SYNCOM

World’s first geosynchronous

satellite

World’s first commercial communications satellite

Early Bird Anik A

World’s first nationally owned satellite

(Canada)Galaxy 1First Hughes

operated satellite

DIRECTV®

Hughes launches DTH satellite TV

service

DirecPC®

Gemini

Invention of first VSAT

First mesh VSAT

TES

HUGHES STB

Hughes begins production of DirecTV

set-top boxes

DirecDUO®

Hughes introduces first “double play” DTH and satellite Internet service 11 Million Sold

Hughes becomes one of world’s largest STB

manufacturers

DirecWAY®

Hughes launches first two-way satellite broadband service

LDP

C

DEM

OD

ADC

DVB-S2/ACM

Hughes produces world’s first

DVB-S2/ACM ASIC

SPACEWAY® 3

Hughes operates worlds first Ka-band

satellite router

HughesNet® is world’s largest satellite

broadband service

THURAYA™

Hughes produces worlds first

combined satellite/ GSM mobile system

R-BGAN

Hughes produces first Inmarsat

R-BGAN terminal

S-BSSGBBF

Hughes develops ground-based beam forming system for

TerreStar

GBBF

Globalstar

Hughes develops Globalstar next generation core

architecture

Hughes introduces world’s

first high throughput dual

Ku/Ka band satellite routerHN9400

Digital Communications

Corporation (DCC) is born in a garage in Rockville, MD

DCC/MACOM acquired by Hughes

Electronics, becomes Hughes Network

Systems

EchoStar XVII with JUPITER

High-throughput Technology

Over 659,000 Subscribers

1995 1999 2000 2003 2006 2008 2009 2010 2012

1932 1963 1965 1971 1983 1984 1990 1994


Record of Strong Customer Satisfaction

Strong performing companies have a Net Promoter Score >50% Hughes has maintained a Net Promoter Score of 60% or higher in each survey

administration since 2011

Company NPS scoreHarley-Davidson 81%

Costco 79%

Amazon 73%

eBay 71%

Hughes 69% 2013

SAS 66%

Apple 66%

Cisco 57%

Federal Express 56%

Dell 50%

Adobe 48%

Electronic Arts 48%

NPS is a measurement system to improve customer experience and increase customer loyalty


Satellite Backhaul Future Trend


Satellite Technology Evolution

HTS – Multi Spot Beam

Optimized for Broadcast Optimized for Data Lowest Latency

FSS – Wide Beam Non-Geo Constellation


JUPITER Features Overview

Feature BenefitWideband forward channelwith ACM

• Efficiency• Optimum user experience

32APSK Outroute • Efficiency

JUPITER SoC for the VSAT • Cost effective yet high performance terminals (100 Mbps TCP)

Advanced Gateway design • Small footprint, thus low OPEX• Lights out operation for low OPEX

IPv6 internal transport • Future proofWeb Acceleration System (WAS) • PerformanceHardware 256 AES encryption • Security with performance

Plus:• Powerful HNO/VNO• Strong QoS capabilities• Advanced routing features

• Flexible service management

• Rich set of APIs• Simple and accurate

installation


CBOS Terminal supports DVB-S2X TDM return channel along with TDMA CBOS Terminal will support GTP Acceleration Throughput supported 100+ Mbps

Cellular Backhaul over Satellite (CBoS)


CBoS Terminal Options

100+ Mbps throughput

Features• IP67 outdoor enclosure• Two 10/100/1000 BaseT Ethernet Ports• Dual cable IFL to linear ODU• C-Band, Ku-Band or Ka-Band• Wideband DVB-S2X• OQPSK or 8PSK modulation

DVB-S2X Features • Rack mount • Single IFL to Hughes ODU OR

• (Optional) Dual IFL to linear ODU• C-Band, Ku-Band or Ka-Band• 4 (Four) 10/100/1000 BaseT Ethernet Ports• OQPSK or 8PSK modulation


Economics of Cellular Backhaul Key findings

MNOS - Economic equation for satellite backhaul • Satellite usually stands as last resort. Cost of transmission can account

for up to 78% of TCO compared to 10-15% for microwave and urban deployment.

• Euroconsult predicts that cost of HTS capacity could get as low as $500/Mbps/Month by 2017. This would bring Cost of transmission at 37% of TCO – still significantly higher than microwave and urban .

HTS Capacity for 3G• With C and Ku band unable to achieve the desired price points for 3G

implementations in most cases, HTS capacity will be required.

Spectrum Efficiency for 3G• Spectrum efficiency close to 3 Mbps/MHz should be required, which is

expected to be available and combined with HTS by around 2017 with the DVB-S2X implementations.

ARPU for 3G• In most cases, ARPUs of $10-$15 are economically feasible.

Source: Euroconsult – Prospects for Cellular Backhaul 2015


Global VSAT Leader

Hughes is the…– #1 VSAT vendor in the world as measured by # of VSATs

sold and revenue for both Enterprise and Consumer– #1 VSAT operator in both the Asia-Pacific and

European regions– #1 provider of shared hub systems

And Hughes VSAT Systems are used for larger networks

– Hughes VSAT Systems average close to 2,000 remotes per hub, more than any other vendor


Questions and Answers

[email protected]

+1 301 428 7029

mailto:[email protected]

Presentations & Public Speaking

Future Trend of Mobile Backhaul via Satellite