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Improving Capacity Cost Effectively in Africa

Omar Trujillo VP Africa & LATAM

Africa Com, 2013

In industry with new challenges to meet

2

Average use per user/month

3 MB

X 120

X 73

X 524

Fivefold increase in traffic by 2017

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2012 2013 2014 2015 2016 2017

Pe

nta

byt

es

Middle East & Africa

Source: Cisco VN Forecast 2012-2017; IDC

3G device shipments in Emerging Markets

3

Source IDC: WW Smartphone Market Forecast, Shipments by Geographic Region, 2013-2017

1,200 m

1,000 m

800 m

600 m

400 m

200 m

0 m

2010 Actual

2011 Actual

2012 Actual

2013 Forecast

2014 Forecast

2015 Forecast

2016 Forecast

2017 Forecast

Emerging Markets Developed Markets

Throughput vs. Availability vs. Price

4

Source: Unstrung Insider

Cost

Traffic

Data centric

Voice centric Revenue

We all agree: New networks need lower latency (LTE)

5

“…of course you have higher speed as well”

“The most important [thing] is the latency”

Source: Hans Vestberg, Ericsson CEO, CNBC 24/09/2013

Mobile Networks demand Lower Latency

6

GPRS Rel’97

EDGE Rel’99

EDGE Rel’4

WCDMA Rel’99

Evolved EDGE

HSDPA HSPA LTE

Mill

isec

on

ds

700

600

500

400

300

200

100

Mobile Technologies Satellite Technologies

GEO O3b

Until now, satellite backhaul technology evolution has not matched the increasing performance needs of mobile networks

Source: Rysavy Research

Trading Desk

Medical imaging

Proximity Fastest wins”

>0.1ms

Private Cloud

Web 2.0

Video

Transactions

Virtual desktop

Real-Time “Instantaneous”

Online gaming

>150ms

Mobile broadband

Finance ERP

HR CRM

Web/http Collaboration

Priority “Small delay acceptable”

Voice

400-200ms

Public Cloud

What are we trying to adapt to?

7

Latency Sensitivity

Bu

sin

ess

Cri

tica

lity

Bu

sin

ess

Co

nti

nu

ity

Best effort “No real-time requirement”

Transmission Latency >1s

Main Frame

E-mail

Analytics

Document management

Procurement

Backup/recovery

Archives

WEB: Faster Response Times

Page Rendering MEO vs GEO accelerated link

8

VOICE

Lower Latency = Superior Voice Quality

• As the ITU model shows, when there is a one way latency greater than 200ms, user satisfaction drops dramatically.

• The long delay of GEO satellites is associated with poor voice quality and dissatisfied customers.

• O3b’s much lower latency dramatically improves voice quality compared to GEO satellites.

9

O3b GEO

ITU G.114 Voice Quality Model

Rural Access 5-20Mbps

Per Site

Individual Cells

Semi Rural Access 10-100 Mbps

Per Site

Small Clusters of Cells Connected via Microwave

Urban 155Mbps+

Aggregation High Site Connectivity

O3b products

Solutions

10

10 Steerable Beams per Satellite Supporting multiple backhaul scenarios.

O3b products

Next Generation Backhaul (3G)

Project

• Objective – Increase broadband penetration into rural/remote Malaysia

• Benefit – Achieve National Broadband Initiative (NBI) Objective

Solution

• O3b capacity combined with micro wave aggregation

• Shared site infrastructure & RAN (node B) among operators

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More than 100,000 people are getting connected with the help of O3b

Connecting 111 villages with 3G services

Monrovia

Kinshasa

Juba

Mogadishu

Antananarivo

O3b products

International capacity to the continent

12

Scalable capacity between 100 Mbps - 1.2 Gbps

Fundamentals behind our approach

Unlimited Spectrum Scalable

Satellite Level Redundancy

Match fiber for QoE

Manufacturing Synergies Lower cost

13

O3b’s Latest Developments

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