OECD Workshop on Digital Divide Porto, 25-26 October 2004

Yves BLANC Director of Institutional Relations SUMMARY

1) About Eutelsat

2) Why satellite is a capable solution ?

3) Eutelsat / Skylogic Broadband Strategy Key facts & figures

4 Europe’s largest satellite operator, World’s # 3

4 760 M€ turnover in 2003/2004

4 430 employees, from 24 different nationalities

4 Operates 24 satellites, covering 90 % of the world populatio,

4 TV & Radio accounts for 70 % of the business

4 Remaining 30 % in the telecoms sector, for large customers, but also, more and more, for small entities :

4 More than 25 000 interactive terminals deployed at the end of 2003 Eutelsat in-orbit resource 4Reaching up to 90% of the global population ** W3 7° E * TELECOM 2D * TELSTAR 12 8° W SESAT 1 15° W 36° E * SESAT 2 53° E

* ATLANTIC BIRD™ 1 12.5° W W5 * EXPRESS A3 e-BIRD W4 70.5° E 11° W W2 33° E 16° E 36° E W1 EUROBIRD™ 1 ATLANTIC BIRD™ 2 EUTELSAT II-F3 EUTELSAT II-F2 W3A 10° E 28.5° E 8° W 21.5° E 48° E ATLANTIC BIRD™ 3 7° E EUROBIRD™ 2 5° W HOT BIRD™ 1, 2, 3, 4, 6 25.5° E 13° E

stable orbit inclined orbit * capacity leased from other operators ** W3 currently under relocation Business profile as of 30 June 2004 4 Consumer broadcasting remains Eutelsat’s prime activity, representing more than two thirds of 2003-2004 revenues*

Video 15% Professional Data Networks Applications and Mobile Services 69% 11% Multi-usage Consumer 53% broadcasting 5% Broadband Services

9% 7% Professional video networks Contribution services

*excluding other revenues of 35 million € A diversified application mix

PROFESSIONAL DATA VIDEO APPLICATIONS BROADBAND SERVICES NETWORKS 9 Direct broadcasting of TV 9 Private networks for 9 Internet backbone channels and radio interconnecting LAN/WAN connections for Internet programmes and extending voice networks Service Providers

9 TV distribution to cable 9 Data broadcasting 9 Broadband Internet access for networks corporates, private users 9 Corporate television and 9 Contribution links videoconferencing services 9 Virtual Private Networks

9 Professional video networks 9 Professional mobile services 9 Multicasting and distribution of for programme exchanges for messaging and positioning IP content and satellite newsgathering Video broadcasting: 1,450 TV channels

4 Europe’s leading operator 4 1,450 TV channels in 45 languages, 750 radio stations 4 Anchor customers in free-to-air, pay-TV and contribution services All-Terrestrial Solution

MAIN CITY

RURAL VILLAGE

BACK-HAUL CONSUMER EQUIPMENT BACK-BONE ACCESS

REMOTE HOMES OR SMEs All-Terrestrial Solution

4 Rolls out according a multi-year schedule : not immediate.

4 Most densely populated areas served first. Others will wait.

4 Expensive investment. No recoupment if limited market.

4 Needs serious attention to market identification and location before planning the deployment

4 Complex issues between public and private sector to solve the investment and operation equation.

4 In lesser developped countries, ground equipment is difficult to maintain, and sometimes to protect All-satellite solution

MAIN CITY

CONSUMER EQUIPMENT BACK-HAUL RURAL VILLAGE

BACK-BONE

REMOTE HOMES OR SMEs W3A Coverage All-Satellite Solution

4 Satellite covers a whole continent at the same time

4 All users within the coverage are equally served, regardless of their location and of their neighbours.

4 Satellites are already there, and paid. No additional investment is needed

4 No need for complex and accurate market studies

4 No intermediate infrastructure to finance and operate

4 Ground infrastructure limited to hub stations and consumer equipement. Easy to protect and maintain. Terrestrial & Satellite Combination

MAIN CITY

RURAL VILLAGE

BACK-HAUL

CONSUMER EQUIPMENT BACK-BONE

ACCESS REMOTE HOMES OR SMEs Terrestrial & Satellite Combination

4 Satellite is versatile : does access and back-haul, or any of the two

4 Interface easily with other technologies : I.e. Wi-Fi or PLC, as it does for

GSM in some countries

4 Satellite operators’ core business is to lease space capacity, not to

directly operate consumer services

4 Lots of experiments and deployments under way around Europe Example: Being Wireless Phase1 Eutelsat strategy for Broadband

4 On-going development of multimedia platforms to:

4 Reduce size and cost of user terminals

4 Increase flexibility in bandwith allocation

4 Support development of community broadband access, associating satellite with Wi-Fi and PLC IP access and multimedia services

Multimedia platforms operated by Eutelsat and partners provide terrestrial, maritime, in-flight broadband services

EutelsatEutelsat platformsplatforms andand VASVAS MajorMajor partnerpartner platformsplatforms

More than 100 distributors

4 Market presence through distributor networks in Europe, Middle East, Africa, providing turnkey solutions to SMEs, local authorities, consumers 4 Eutelsat’s broadband subsidiary, Skylogic Italia, provides Internet and network connectivity for sites in Europe, Asia, Africa, the Americas [Ð] size, [Ð] costs, [Ï] speed

Antenna 96cm

Power 2W

Blanket licensing

< 1500 EUR D-Star References World-wide

4 D-Star references: 4 Thousands of customers in Eutelsat’s worldwide network (Europe, South America, Middle East, Africa), including 4 Cyber Cafés (North Africa) 4 Italian Civil Protection (Italy) 4 La Poste (France and Africa) 4 CSI - Piedmont (Italy) 4 Education Ministery (Congo Brazzaville) 4 Power plants (Elettromeccanica Veneta) 4 Oil companies (Turkey) 4 Blu Hotels (Italy) 4 SDV (Nigeria) 4 SOS International (Nigeria) 4 Tidewater (Guinée Equ. & Nigeria)

4 Over 80 hubs sold by ViaSat around the world, with 25,000 terminals 4 ViaSat was founded in 1986 and is listed on the NASDAQ (VSAT) since 1996 Channel Partner Distribution Strategy

TELCO

TELCO Corporate ISP EndEnd Client TELCO Client Integrator/VAR

Resellers

PublicPublic AdminAdmin

(Only if requested by customer) World-World- widewide networknetwork www.skylogic.com 3 Main Services Skylogic, large Eutelsat investment in Italy