Presented by Steve Gardner, CTO, Viasat in the techUK Satellite Applications & Services Conference, 2nd Oct. 2015

1. Innovations and economics in satellite
broadband
How government and industry can make
widespread satellite broadband a reality
Steve Gardner, CTO, ViaSat Government Systems
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ViaSat Proprietary Information

2. High Capacity Satellites Change Everything
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• The capacity available in a satellite has increased by 100x
• This has major implications for communication system solutions

3. HCS background
• ViaSat HCS satellites have revolutionized data SATCOM
• Today ViaSat-1 serves 800k households for residential
broadband in the US
– Satellite has 140 Gbs of total capacity: more than the combined fleets of Intelsat and SES
– Terminals are built to meet
mass market cost points
– FCC rates Exede best among all
broadband access means in the
US in meeting advertised speeds
• ViaSat-2 launches 2017
– 2x capacity economics of ViaSat-1
– 7x coverage area
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4. 9/30/2015 4
These JetBlue passengers
pay for their coach seats
and make decisions that
shape their weekend
These JetBlue passengers
pay for their coach seats
and make decisions that
shape their weekend
These heads of state fly in
custom aircraft at taxpayer
expense and make decisions
that shape our world
These heads of state fly in
custom aircraft at taxpayer
expense and make decisions
that shape our world
Whose plane has the best in-flight broadband service?Whose plane has the best in-flight broadband service?
ViaSat Proprietary Information

5. 0%
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PercentofmarketwithcosttopasslessthanXaxis
Cost to pass a household
HCS satellite
notional terrestrial system
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PercentofmarketreachedbydateonXaxis
Months
HCS satellite
notional terrestrial system
HCS value proposition for broadband
• One satellite serves 1M subscribers
• Cost to pass a subscriber is the same for every subscriber: about $700
(satellite plus ground infrastructure)
• Reach the entire market under the satellite on launch: about 40 months
• Quality of service offering is as good as terrestrial alternatives
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Reach the 20-30% of most
difficult subs at far less cost
Reach the 20-30% of most
difficult subs far sooner

6. What’s Next?
• The problem: 35% annual capacity demand growth
– With no increase in ARPU
• Do this by constantly reducing cost of capacity:
– Increasing capacity of satellites without increasing satellite cost
– Decrease cost of ground infrastructure
– Increase effectiveness with which capacity can be used
• Satellite design flexibility: non-uniform capacity distribution
• Blended apps that lengthen effective busy hour (e.g. connected cars)
• Expand global coverage footprint
– Drives new apps: backhaul, WiFi hotspots, expanded mobility,
resource extraction, government and defense comms, M2M, first
responders and emergency services, etc, etc
– Serve developing countries
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7. What can government do?
• HCS satellites serve continents, not countries
– Business case is not based on one country: international cooperation to
create a positive regulatory environment is helpful
• HCS satellites serve multiple customer groups
– National resilience, first responders, consumer broadband, defense,
enterprise, utilities
– Governments can “bring together demand signals”
• Maximize spectrum available for satellite
– Cost of capacity is inversely proportional to available spectrum
• More equitable access to orbital slots
• Recognize that satellite can be competitive without
subsidy
– Subsidies retard innovation by allowing non-competitive solutions to take
market share
– But don’t create adverse tariff environment for equipment
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