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Future Trend of Mobile Backhaul via Satellite

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Small Cell Forum MWC 2016 Sponsor Presentation: Hughes

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Future Trend of Mobile Backhaul via Satellite

  1. 1. Future Trend of Mobile Backhaul via Satellite February 23, 2016
  2. 2. HUGHES PROPRIETARY2 H56136 2/24/2016 Company Overview
  3. 3. HUGHES PROPRIETARY3 H56136 2/24/2016 Hughes Network Systems $3.4 billion 2014 revenue $1.4 billion 30+ years in the VSAT business 5+ million VSATs shipped 1.5+ 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
  4. 4. HUGHES PROPRIETARY4 H56136 2/24/2016 Hughes Heritage of Innovation in 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 1 First 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 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 router HN9400 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
  5. 5. HUGHES PROPRIETARY5 H56136 2/24/2016 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 score Harley-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
  6. 6. HUGHES PROPRIETARY6 H56136 2/24/2016 Satellite Backhaul Future Trend
  7. 7. HUGHES PROPRIETARY7 H56136 2/24/2016 Satellite Technology Evolution HTS – Multi Spot Beam Optimized for Broadcast Optimized for Data Lowest Latency FSS – Wide Beam Non-Geo Constellation
  8. 8. HUGHES PROPRIETARY8 H56136 2/24/2016 JUPITER Features Overview Feature Benefit Wideband forward channel with 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 proof Web Acceleration System (WAS) • Performance Hardware 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
  9. 9. HUGHES PROPRIETARY9 H56136 2/24/2016  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)
  10. 10. HUGHES PROPRIETARY10 H56136 2/24/2016 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
  11. 11. HUGHES PROPRIETARY11 H56136 2/24/2016 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
  12. 12. HUGHES PROPRIETARY12 H56136 2/24/2016 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
  13. 13. HUGHES PROPRIETARY13 H56136 2/24/2016 Questions and Answers vince.onuigbo@hughes.com +1 301 428 7029

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