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.