Presented by Andrew J Fry, Manager, Government and Institutional Relations, Avanti Communications in the techUK Satellite Applications & Services Conference, 2nd Oct. 2015

1. THE ROLE OF KA-BAND SATELLITE SYSTEMS IN
DELIVERING BROADBAND SERVICES
techUK Satellite Applications & Services Conference
2nd October 2015
Andrew J. Fry
Manager, Government and Institutional Relations

2. What I will cover
 Avanti Background:
– AboutAvantiandour Satellites
 Ka-band Satellite Services and Systems:
– TheeconomicsofKa-bandSatellitebroadbandandtheSatellite BroadbandInternetMarket
– HighThroughputKa-bandGEOSatellites(HTS) -ChangingTheGame
– Ka-bandSatelliteBroadband–AnOngoing Revolution
– Thetransformational power of satellite
 Avanti’s Experience of the BDUK Market Test Pilot (MTP)
– OverviewofAvanti’sinitialexperienceofparticipatingintheBDUKMarketTestPilot

3. I. AVANTI BACKGROUND

5. Avanti Satellites

6. Avanti - Confidential - Commercial in Confidence | 5 October, 2015 | 6

7. II. KA-BAND SATELLITE
SERVICES & SYSTEMS

8. The Economics Of the Ka-band Satellite Broadband
A significant portion of the world population does not have access
to voice and/or data services - Satellites are a natural fit to serve
these populations
45% of the world’s population live in rural, hard-to-reach areas
consuming only 15% of the total mobile traffic
30% of the world population live on only 1% of the worlds land area
consuming 60% of the traffic
The terrestrial costs to reach the final 1% of the population is nearly
40 times the cost of reaching the initial 95%.
Ka-band Satellite broadband is a proven
technology, delivering high-speed services to
customers beyond the reach of terrestrial networks
Ka-band satellite-based networks are uniquely able to deliver:
• affordable, immediate and ubiquitous broadband access to end-
users that are otherwise un-served by broadband
• The costs for Ka-band satellite platforms are dramatically less
than the cost to extend terrestrial broadband services
• Unlike other technologies, Ka-band satellite economics are
independent of population density

9. Source: Frost & Sullivan analysis
• The Ka-band market is growing significantly.
• Price is decreasing dramatically
• Millions of premises are currently equipped
with Ka-band satellite broadband all over the
world (e.g. in USA more than 1 million Ka-band
satellite broadband customers)
Satellite Broadband Internet Market

10. Lower space
segment cost
per MB
Higher
throughput
rates
Improve
capacity
availability
Ka-band HTS is a game-changing industry wide innovation
vastly expanding the market for satellite communications.
High Throughput Ka-band GEO Satellites (HTS) - Changing The Game

11. There has been a drastic evolution in performance in the last few years thanks to Ka-band High
Throughput Satellites (HTS) using multi-beam payloads and frequency re-use techniques
The Next-generation of Ka-band HTS systems will provide yet further significant performance
improvements
(Target: Terabit/s satellite capacity at viable economical conditions in the 2025 timeframe).
Ka-band Satellite Broadband – An Ongoing Revolution
Ku
Ku
1st Gen
Ka-band
2nd Gen
Ka-band

13. III. AVANTI’S EXPERIENCE OF THE
BDUK MARKET TEST PILOT (MTP)

14. Purpose of the BDUK Market Test Pilot
The Market Test Pilot will enable BDUK to understand:
 The technical attributes of satellite broadband
 The typical end-user experience
 The appropriateness of satellite broadband for UK wide roll-out.
 Whether regional differences exist
 The effectiveness of marketing approaches
All of these factors will be used to inform the roll-out of broadband to the “final 5%”
Proprietary and ConfidentialQuality. Flexibility. Avanti Communications

15.  The pilot is restricted to Aberdeenshire,
Dumfries and Galloway, Scottish Borders,
Antrim and Fermanagh.
 State Aid approval has only been granted
for “white basic” areas within the target
counties.
 Addresses for target properties (C.22,000)
have been supplied by local authorities.
 BDUK funding is currently restricted to
1000 end-user connections.
 Services will be delivered through retail
service providers, including Avonline and
Europasat
The superfast pilot is highly targeted
Quality. Flexibility. Avanti Communications
BDUK Pilot Target Post Codes

16. Proprietary and ConfidentialQuality. Flexibility. Avanti Communications
Avanti is providing a wholesale network delivering 3 SLAs
including 30Mbps, 24Mbps and 10Mbps
Service Package Data
Limit
Rationale Monthly Retail
Price
(inc VAT)
Take-Up
(July 2015)
%
30Mbps/6Mbps 40GB
Meets EU definition of superfast
broadband in terms of download/
upload speed
£49.99 20%
24Mbps/4Mbps 30GB
Meets BDUK definition of superfast
broadband
£39.99 17%
10Mbps/2Mbps 20GB
Expected to be the new universal
service commitment, replacing
2Mbps.
£24.99 63%

17. Research shows the appetite for high-speed/superfast satellite
broadband in target regions is high…
Quality. Flexibility. Avanti Communications

18. …but the challenges of marketing satellite broadband to
communities are not insignificant
Quality. Flexibility. Avanti Communications

19. Each actor is the BDUK pilot programme has a complimentary
role in delivering a successful pilot
Quality. Flexibility. Avanti Communications
• Sponsorship and funding of programme to meet National
objectives
BDUK
• LA Citizens are the main beneficiaries of programme
• Generate AWARENESS amongst citizens for programme
through marketing
Local Authorities
• Create wholesale superfast wholesale platform
• Generate INTEREST of end-users through marketing
activities
Avanti – Satellite Operator
• Deliver service to end users
• Generate DECISION and ACTION by end-user through
marketing and sales activities
Retail Service Providers
• Access to superfast capable broadband
• Provide feedback to BDUK
Rural Households and SMEs

20. Satellite and Universal Minimum Speeds
 BT Chief Executive Gavin Patterson speaking on his company’s vision for Britain’s
digital committed BT to supporting the government in delivering deliver the
broadband speeds necessary for every property to enjoy modern day internet
services, such as high definition TV streaming and cloud computing and
introducing a new universal minimum broadband speed of 5-10Mbps, which he
described as “enough for everyone in the UK to enjoy popular internet services
like high definition video”1.
 Avanti support a UK universal minimum broadband speed of 5Mbps and higher
1 http://home.bt.com/tech-gadgets/tech-news/bt-ceo-gavin-patterson-delivers-vision-for-britains-digital-future-11364005965808

22. www.avantiplc.com
THANK YOU
Contacts:
Andrew Fry
Manager, Government and Institutional Relations
Email: andrew.fry@avantiplc.com
Kumar Singarajah
Director, Regulatory Affairs & Business Development
Email: kumar.singarajah@avantipc.com