UK Spectrum Policy Forum Ethan Lavan, Director of Orbital Resources, Eutelsat Ltd Fixed Satellite Services (FSS): Broadcast - Spectrum Applications and Demand See more at: http://www.techuk.org/about/uk-spectrum-policy-forum All Rights Reserved

1. Fixed Satellite
Services (FSS):
Broadcast
Spectrum Applications
and Demand

2. Page 2
Satellite: Tales v Truth
 An “older” technology – people remember Sputnik
 Use spectrum in big chunks
 Small user communities
 Expensive
But
 Satellite is the most efficient way to broadcast a signal over a large coverage
area, particularly when it requires high quality / a large amount of bandwidth
 Integral part of global telecommunications infrastructure
 Indispensable technology in many circumstances
 Making constant technological advances
 Affordable enough to sustain nearly $200b business
 Industry continues to consolidate and grow

3. Page 3
Growth of Satellite Industry
 Over last few years satellite
industry has continued to grow:
total 2012 revenue estimated at
$189.5 billion
 communication (over 50%), earth
observation, navigation, etc
 In 2012 industry experienced
growth rate of 7% - surpassing
2011 and exceeding global
growth rates
 25 new satellites launched so far
in 2014, with another 67 planned
over the next 6 months,
including satellites aimed at
providing a range of innovative
services
Source: Satellite Industry Association
State of the Satellite Industry Report 2013

4. Page 4
Eutelsat Investments are representative of the Industry
 Eutelsat has 36 satellites in geostationary orbit providing reach of
Europe, the Middle East, Africa, Asia, the Americas
 Eutelsat to launch 7 more satellites by mid 2016
 New investment
continuing despite an
increasingly competitive
landscape in all markets

5. Page 5
FSS Broadcast Services today and tomorrow
Satellite TV accounts for more than 80% of
satellite services revenues
• USD 88.4 billion in revenues in 2012*
• 370 Million+ satellite TV households globally in 2012 of which about 200M
pay TV. (1.5 billion total TV households) Source: Idate, Dataxis.
• 4% growth in pay TV subscribers in 2012
Demand for FSS transponders for TV
broadcasting is increasing
• As of 2013 34,000 satellite TV channels, Euroconsult 2013 report predicts
growth to, 39,000 in 2016 and 47,000 in 2022.
• Also 6,000 satellite HDTV channels in 2013, with growth to 10,000 in 2016
and 20,000 in 2022
*Source: Satellite Industry Association State of the Satellite Industry Report 2013

6. Page 6
FSS Broadcast Services today and tomorrow
FSS Broadcasting services will not only remain
relevant going forward, but will be a key enabler
for the future of Advanced Television services
• To support Increase demand for number of channels
• To support migration to HDTV and evolution to UHDTV
• As an integral component of Hybrid services in tomorrow’s (or even today’s)
world of Advanced television services

7. Page 7
Together with broadband, Broadcast is a must-have pillar
to provide advanced TV to everybody
 linear content. Satellite broadcast is the best
infrastructure for high-quality linear video, from
a cost and quality perspective
 Non-linear content
 Satellite guarantees best QoS at anytime
for most demanded content …
 … complemented by broadband for
‘long tail’ catalogue and User Generated
Content 3)
Broadcast by satellite is a must-have pillar to
enable advanced TV for everybody
Broadcast / Broadband hybridization:
perfect match to provide advanced TV to everybody, NOW
1) e.g min 30% of households not eligible to IPTV in almost all European countries
2) esp. for OTT services
3) UGC: content available on YouTube …
Broadband cannot be the only
infrastructure for advanced TV needs
 Current common assumption :
advanced TV = Broadband
 But terrestrial broadband does not / will
not
 Provide quality video to a large share of
users 1)
 provide sufficient QoS at peak hour 2)
 … despite the constant investments of
telcos in infrastructure

8. Page 8
The best of both worlds: high quality linear TV and best in
class on demand TV services
Historical situation with stand
alone broadcast and broadband
Broadcast
Broadband
Broadcast homes
Broadband
IPTV homes
New situation with a combination of pure broadband
solutions and converged hybrid solutions
Pure broadband solutions
Fibre, digital cable or xDSL
Home
network
Hybrid TV
solution
Broadband
Broadcast
Hybrid solutions
Hybrid Broadcast Broadband TV framework
 Both Broadcast and telecommunications networks face limitations
 Hybrid broadcast broadband TV combines the advantages of broadband in delivering individual choice of on-
demand content with the efficiency of broadcasting (Satellite or DTT) in making high quality TV
simultaneously available to a large audience
Source: iDate analysis

9. Page 9
In a nutshell …
 Hybridization of (satellite) Broadcast and broadband is a must have to deliver
Advanced TV to everybody now
 Hybrid TV makes sense in all countries with a significant market potential
 Legacy broadcast TV countries: bring integrated advanced TV services to all
households
 Largely wired TV countries: extend a best-in-class advanced TV experience to all
 TV platforms confirm that from a technical and economic perspective, Broadcast will
remain an essential pillar of future TV
 It is a reality, dozens of platforms have implemented such solutions

10. Page 10
Hybrid TV is a reality: dozens of TV platforms worldwide
have launched hybrid services …
(2013)
Examples of bundled Terrestrial and Satellite TV Broadcast Broadband services
Source: iDate analysis

11. Page 11
… as well as telcos, to increase their reach or optimising
their video service offering and distribution
Source: iDate analysis
(2013)
Examples of Telcos Hybrid Broadcast Broadband TV

12. Page 12
Spectrum is critical
 Satellite operators cannot
provide services without
access to sufficient spectrum
 Access to range of satellite
frequency bands is
necessary to provide
services demanded by users
 Failure to assure availability
of adequate satellite
spectrum will raise user
costs
 Satellite industry efforts
aimed in ensuring that
regular, unnecessary
encroachment on use of
satellite spectrum is rational

13. Page 13
Certainty Needed to Continue Connections
 High upfront investment and need for regulatory certainty over 15+
years life of an in-orbit asset which cannot be changed once launched
 Certainty in turn supports international spectrum coordination with
foreign regulators

14. Page 14
Satellites Achieve Spectrum Efficiency
Advances in satellite technology have resulted
in greater system capacity and higher levels of
frequency reuse
Multiple satellites use same spectrum - and
combined with spectrum reuse by each satellite
this further enhances spectrum efficiency
Satellite services already share frequency
bands with services in a number of bands,
including fixed links and radar
Broadcast nature of satellite complements
terrestrial networks both in terms of coverage
and ability to offload terrestrial networks

15. Page 15
Conclusions
 Growth of new services and higher definition will drive demand for
satellite broadcast services into next decade
 Regional and global coverage of satellite networks requires
international cooperation. National fee structures are impracticable
and unmanageable.
 Technology neutral approach to spectrum allocation does not allows
allow for the recognition of the unique nature of a service
 Spectrum management policies that recognise unique uses and needs
of each technology will best enable spectrum efficiency

16. Thank you!