Low Earth Orbit (LEO) HTS Market Surveys

Low Earth Orbit (LEO) HTS Market Surveys - Discussion Guide Brad Grady — Senior NSR Analyst Carlos Placido — Senior NSR Analyst April 2014 NSR NORTHERN SKY RESEARCH EFTA01109204 LEO-HTS Constellation Agenda ---1- NSR • Introduction •System Description —Architecture & Capabilities —LEO Advantages e Feedback & Discussion —Market Potential —Design Suggestions •About NSR NSR April 2014 www.nsr.com O 2014 - NSR 2 EFTA01109205 LEO-HTS Constellation LEO-HTS Market Surveys NSR NSR is working on behalf of a client planning to deploy a constellation of Low Earth Orbit (LEO) high throughput satellites (HTS) • NSR was hired to conduct a set of market surveys and industry discussions related to the potential for a LEO-HTS broadband constellation. • Presentation meant to be used as a guide for an open discussion with the following goals: — Potential: Evaluate market potential for our client to serve service providers and end users — Market Feedback: Help our client to incorporate market feedback into business plan — Design: Allow potential users to influence on system design based on their specific needs — Unmet Needs: Identify needs not well served by current satellite solutions and network architectures April 2014 www.nsr.com Q-) 2014 - NSR 3 EFTA01109206 System Description NSR NORTHERN SKY RESEARCH EFTA01109207 LEO-HTS Constellation Global, Full-Mesh LEO-HTS Constellation NSR The LEO-HTS constellation will have the following main capabilities: • 70 LEO High Throughput Satellites (HIS) — Hybrid Ka-Ku band Payload — Over 400 Gbps of global aggregate capacity — Orbits at approx. 400 miles above the earth. End Users to benefit from: True Global Coverage - 100% earth coverage — Equal speed capability at any location Mesh Network Topology —Anywhere to anywhere high speed IP connectivity — Supports all user needs \ 35 5N, Low Latency, High ,s2° Throughput Performance 60 Mbps — 600 Mbps to 1.2 Gbps per beam — 50 millisec. (round trip) Standards-based Open IP Architecture — Empowered Service Ecosystem. NSR April 2014 www.nsr.com © 2014 - NSR 5 EFTA01109208 LEO-HTS Constellation LEO-HTS Satellites NSR Each LEO-HTS Satellite will have: • Ku-band and Ka-band spot beams — 7 Gbps of Ka-Ku capacity each satellite — 1.2 Gbps Ka-band beams - 600 Mbps Ku-band beams • Inter-Satellite Links (ISL's) — Five (5) choices of network paths for data transmission off the satellite. • On-Board IP Routing — On-board full scale routing capability with real time intelligent routing. Gateways & User Terminals: — Gateways will be strategically located for the cost of bulk bandwidth, lease costs and best weather. — Each satellite has routed access to any gateway without going to ground. — Any client station can be a gateway. NSF.' April 2014 www.nsr.com © 2014 - NSR 6 EFTA01109209 LEO-HTS Constellation User Terminal to Gateway N SR ----+ Client terminals, satellites and gateways are fully meshed both physically and logically. • Each satellite has the ability to route data to the gateway most advantageous to the data being sent based on a rules engine. — Sovereignty issues can be respected where required. • Load balancing is inherent in the network — Least cost routing on a whole new level. — User terminals can also become gateways to terrestrial IP networks X-- User Terminal ISL April 2014 wwmnsr.com CO 2014 - NSR 7 EFTA01109210 LEO-HTS Constellation User Terminal to User Terminal NSR Client station to client station data is sent through the satellites only —Never needs to go through a gateway. • User terminals will support a wide range of uses and network topologies: X ISL ,hf User User Terminal Terminal —Any network topology: — High-speed point-to-point, point-to-multipoint, partial and full mesh —Flat 40 cm square flat panel antenna will handle beams required to maintain a continuous connection to the satellites as they move over head - No moving parts (maintenance free) —Privacy: Secured, private IP links with encryption NSR April 2014 www.nsr.com CO 2014 - NSR 8 EFTA01109211 LEO-HTS Constellation LEO Advantages NSR A. MY. 5X V RESIARCH The LEO-HTS Constellation brings key advantages to end users: • Low Latency: Low latency of less than 50ms RTT makes IP Data run: — 3 x faster than MEO satellites - 12 x faster than GEO Satellites • Power: Being the satellites much closer to Earth, LEO satellites require: — Less than 1/30th the amount of radio amplification of the GEO's to meet the same link budget requirements - This lowers antenna and amplifier size • Availability: The relative closeness of the satellite to the client provides a much improved environment for Ka band during rainy or cloudy weather. —Thus, maintaining a solid connection is much less challenging. NSR April 2014 www.nsr.com ,C.) 2014 - NSR 9 EFTA01109212 Feedback & Discussion NSR NORTHERN SKY RESEARCH EFTA01109213 LEO-HTS Constellation User Segments NSR User segments and applications to benefit from LEO-HTS Maritime Oil & Gas Backhaul /Trunking - • • - Enterprise VSAT Video Contribution Network Offload / Restoration SR April 2014 www.nsr.com © 2014 - NSR 11 EFTA01109214 LEO-HTS Constellation Network & Applications NSR --+ • Applications served by satellites in your niche — Data, video, voice, etc. • Hot Geographies in your Satcom Market —On-shore/ off-shore — Global, Regional, Local, Hot Spot (e.g. Caribbean, Mediterranean) • Common Link Requirements —Data rate, latency, availability, jitter, etc. • Bandwidth Growth — Typical link data rates for satellite services — Projected growth: `)/0 Increase for Link Data Rates over time • Topology and Access technology -SCPC Point to Point — Multipoint TDMA • Current VSAT Equipment used (modems, fixed /stabilized antennas, etc.) %SR April 2014 www.nsr.com ©2014 - NSR 12 EFTA01109215 LEO-HTS Constellation Current Satcom Environment NSR NORINERIOXY MIAMI • Environment: Fixed Satcom / Mobility - Limitations imposed by current satellite systems • CAPEX-OPEX Economics — Off-balance? — High CAPEX and/or OPEX inhibitor in current satcom systems? • Key need /s to be met by satcom to be successful in your user segment — Link Throughput —Network Flexibility —Cost per bit — Link Availability —Client Support SUCCESS — Integration —Value-added services — Mobility —Etc. NSR April 2014 www.nsr.com 2014 - NS 13 EFTA01109216 LEO-HTS Constellation Value Proposition NSR What characteristics of the LEO-HTS System are perceived as potentially valuable and unique: • Low Latency — How important is latency for your apps? — Application response thresholds / time-outs • Mesh Connectivity — Could this drastically improve services? — Is "double hop" currently a constraint? • Dual Frequency Band — Views / experience on Ka band vs Ku band — Preference for one or both? • Flexible Pricing — Terminal $ discourages migration? — How about terminal cost within MRC? Global IP Inter-network High Throughput — Low Latency Small Terminals — Open NSR April 2014 www.nsr.com © 2013 — NSR 14 EFTA01109217 LEO-HTS Constellation Ideal Satellite System NSR --+ Opportunity to have first-hand input for system design and business plan to satisfy your needs —Current system design may be changed for improvements or in response to user feedback during this study. • Preference for Ka or Ku band? — Pros and Cons for each — Equipment backward compatibility — Propagation considerations • OPEX-CAPEX Pricing — CAPEX an inhibitor in current HTS systems? — How about no CAPEX spend? —Cost of equipment amortized over life of the contract. • Beam width versus bits/hertz • Service Ecosystem April 2014 www.nsr.com (c.) 2014 - NSR 15 EFTA01109218 LEO-HTS Constellation Wrap-up Discussion Final Thoughts or Suggestions? EFTA01109219 About NSR EFTA01109220 LEO-HTS Constellation About NSR NSR --+ NSR is a Global Leader in Satellite Market Research and Consulting Founded in 2000, NSR specializes in analysis of growth opportunities across the satellite industry Extensive Client Research, Consulting and Advisory Services U Multi-Client Reports on Various Satellite Topics NSR's expert consultants are located globally and possess over 140 years of combined industry experience. www.nsr.com STAY AHEAD OF THE CURVE Research and Consulting from NSR "Holistic" approach to research enables NSR to anticipate trends with a higher degree of confidence and precision than the competition and stay ahead of the curve. NSR www.nsr.com © 2014 - NSR 10 April 2014 18 EFTA01109221 LEO-HTS Constellation NSR Global Presence NSR GLOBAL PRESENCE DENVER, CO (USA) DUBLIN (IRELAND) CAMBRIDGE, MA (USA) WASHINGTON DC (USA) BUENOS AIRES (ARGENTINA) LONDON (UNITED KINGDOM) FRANCE HONG KONG (HONG KONG) is MUMBAI (INDIA) SEOUL (KOREA, SOUTH) NSR's Complete Global Satellite Coverage 125+ Years of Satellite Industry Experience Presence in 9 countries & 4+ regions "Ahead of the Curve" Analysis & Products/ Coverage COMPLETE satellite coverage & analysis NSR www.nsr.com © 2014 - NSR 10 April 2014 19 EFTA01109222 U.S. Office Northern Sky Research, LLC (NSR) 1000 N. West St., Suite 1200 Wilmington, DE 19801 Phone: Fax:302-295-4801 www.nsr.com www.nsr.com © 2014 — NSR Europe Office Northern Sky Research, Ltd (NSR) 19 Bolsover Street London W1W 5NA United Kingdom Phone: NSR NORTHERN SKY RESEARCH EFTA01109223