PRIVATE & CONFIDENTIAL

Is There Space for my Satellite?Navigating the commercial satellite launch process

AVASCENT | 2

AVASCENT

Growth-oriented management

consulting firm with deep

market expertise and rigorous

analytical methods.

AVASCENT ANALYTICSAnalytic arm of Avascent, Analytics develops robust global

market data forecasts built on state of the art visualizations. AVASCENTINTERNATIONALA global network of

senior level strategic

advisors from the highest

levels of gov’t, business,

intel, and int’l affairs

FORMED BY SEVERAL MAJOR SATELLITE COMPANIESas a forum to discuss issues and develop industry-wide positions on shared business, regulatory

and policy interests.

A RECOGNIZED FOCAL POINT FOR THE SATELLITE INDUSTRY

Representing & advocating industry positions with key

policy makers on Capitol Hill and with the White House,

FCC and most Executive Branch departments & agencies.

WITH ESTABLISHED ACTIVE WORKING GROUPS involved with regulatory issues; government

services, public safety, export control policy,

and international trade issues.

This webinar presentation is brought to you by Avascent Analytics and the Satellite Industry Association

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Sam BlackSenior Director of Policy, Satellite Industry Association (SIA)

Sam Black supports SIA’s work on government services, regulatory, legislative, homeland security, export control and trade issues of critical importance to the Association’s members. Sam joined SIA following more than two years as a Research Associate at the Stimson Center, a nonprofit, non-partisan think tank specializing in international security issues. Sam holds a Bachelor’s Degree in Government and Politics and a Master’s Degree in Public Policy, both from the University of Maryland. He was a recipient of the Capt. William P. Cole III Peace Fellowship from the University of Maryland’s School of Public Policy from 2007 to 2008.

Jonathan BelandSenior Market Analyst, FCC Orbital Intelligence Product ManagerJonathan specializes in providing market analysis and subject matter expertise pertaining to the space and telecoms industry. Jonathan has extensive experience providing government and commercial clients with insight on global launch and satellite manufacturing capabilities.

Caitlin KennedySenior Market Analyst, FCC Orbital Intelligence Product ManagerCaitlin specializes in maintaining the FCC Orbital Intelligence database. She has been with Avascentsince August 2012, and has since heavily contributed to maintaining and enhancing AvascentAnalytics’ suite of U.S. and global defense systems market analysis products.

The discussion will be moderated by Avascent’s Jonathan Beland and Caitlin Kennedy, and will feature a discussion with special guest Sam Black from Satellite Industry Association (SIA)

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Space is becoming more crowded all the time, and space industry professionals must keep abreast of a number of orbit-related issues

1. What are industry revenues and which satellites drive these?

2. How is the industry changing over the next decade?

3. What about all of these new constellations of small satellites we hear about?

4. If I want to launch or invest in a new satellite or satellite venture, what do I need to know about getting on orbit?

Space & Satellite Industry Revenues

$322.7BGlobal Space

Industry

Non-Satellite

Industry

$119.7B

Prepared by:

Satellite Services

$122.9B

Ground Equipment

$58.3BSatellite Manufacturing

$15.9B

Launch Industry

$203BSatellite

Industry

(63% of Space

Industry)

Telecommunications• Television

• Telephone

• Broadband

• Aviation

• Maritime

• Road and Rail

Earth Observation• Agriculture

• Change Detection

• Disaster Mitigation

• Meteorology

• Resources

Science• Earth Science

• Space Science

National Security

Consumer Equipment• Sat TV, radio, and broadband equipment

• GNSS stand-alone units & in-vehicle systemsNetwork

Equipment• Gateways

• VSATs

• NOCs

• SNG equipment

4%

Growth

2013 − 2014

1%

Growth

2013 − 2014

Notes: Network operations centers (NOCs), satellite news gathering (SNG), very small aperture terminal

(VSAT) equipment, global navigation satellite systems (GNSS)

Core of the Space

Industrial Base

Prepared by:

38%

14%14%

11%

8%

8%5%

2%

Satellites on Orbit

Operational Satellites by Function(as of December 31, 2014)

• 1,261 operating satellites as

of year-end 2014» >50% are communications

satellites

» 38% are commercial

communications satellites

• 57 countries operate at

least one satellite (some as

part of regional consortia)

Source: The Tauri Group. Note: “Earth Observation Services” is new label for what was formerly referred to as

“Remote Sensing” (this is a definitional change only)

Commercial

Communications

Government

Communications

Earth Observation

Services

Military Surveillance

Total Operational

Satellites

1,261

R&D

Scientific

Navigation

Meteorology

Prepared by:

Global Satellite Services Revenue

$ B

illio

ns

4%10% 7% 9% 5% 5%Growth Rate

Total $122.9$92.8 $99.2 $107.8 $113.5 $118.6

4%

2013 − 2014

Global

Growth

Earth

Observation

Mobile

Fixed

Consumer

Consumer

Fixed

Mobile

Earth Observation

Satellite TV (DBS/DTH)

Satellite Radio (DARS)

Satellite Broadband (3)

Transponder Agreements (1)

Managed Services (2)

Voice

Data

$1.6$1.0 $1.0 $1.1 $1.3 $1.5

$3.3$2.2 $2.3 $2.4 $2.4 $2.6

$17.1$14.4 $15.0 $15.7 $16.4 $16.4

$100.9$75.3 $80.9 $88.6 $93.3 $98.1

$95.0$71.8 $76.9 $84.4 $88.4 $92.6

$4.2$2.5 $2.8 $3.0 $3.4 $3.8

$1.8$1.0 $1.2 $1.2 $1.5 $1.7

$12.3$11.0 $11.1 $11.4 $11.8 $11.8

$4.8$3.4 $3.9 $4.3 $4.6 $4.6

$0.9$0.7 $0.7 $0.7 $0.7 $0.8

$2.3$1.5 $1.6 $1.7 $1.8 $1.8

The U.S. share of

satellite services

revenue in 2014

was

41%

$0

$20

$40

$60

$80

$100

$120

$140

2009 2010 2011 2012 2013 2014

Notes: Numbers may not sum exactly due to rounding. (1) Includes capacity for DTH satellite

TV platforms. (2) Includes VSAT networks. (3) Improved 2014 data results in understatement

of broadband growth rate from 2013.

Prepared by:

$95B

Consumer Satellite Services

The consumer services segment, consisting of satellite television, radio, and broadband, grew by 3% and was the largest contributor to overall

satellite services revenues

Satellite Radio• Satellite radio (DARS) revenues

grew by 10% in 2014

• Satellite radio subscribers grew

7% in 2014 to 27.3 million

• Primarily U.S. customer base

Satellite TV Services• Satellite TV services (DBS/DTH) account for

77% of all satellite services revenues, and

94% of consumer revenues

• About 230 million satellite TV subscribers

worldwide, driven by growth in emerging

markets

• 42% of global revenues attributed to U.S.

• More HD channels added, driving premium

service revenues up» First commercial 4K Ultra HD (UHD) channel

launched in U.S. in late 2014

• More UHD channels to be launched in 2015,

live broadcasts seen as main driver

• Compression technologies continue to

improve; near-term possibility of 2.5 times

bandwidth savings

Satellite Broadband• Over 1.6 million subscribers,

mostly in the U.S.

• Revenue grew slightly faster than

subscribership

Satellite

Consumer Services

Revenue in 2014

$100.9B

Broadband ($2B)Satellite

Radio ($4B)

Satellite TV

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0

200

400

600

800

1,000

1,200

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

# o

f Sa

telli

tes

Lau

nch

ed

Classified Communications Early Warning ISR

Meteorology On-Orbit Servicing PNT (Navigation) Science

Space Station Habitat Survey Transport

What do the next ten years look like?The number of communications satellites is forecast to increase substantially in the 2015-2025 timeframe

New Satellites 2015-2025, by Service Type

Segment 3

Segment 4

Communications Satellites will comprise the majority of new

payloads

Prepared by:

Consumer Broadband Over Satellite

• Keys to success for today’s satellite broadband:

• Comparable to terrestrial

» Comparable to cable and fiber in terms of speed and

price

» Available nationwide, not just in select areas

• Maturation and combining of advanced technologies

(frequency reuse, spot beams, and on-board

processing) defined new, high throughput satellites

(HTS)

• Substantial reduction in cost per unit of throughput

• Growing demand and customer confidence due to

high data rates and reliable service

» Satellite broadband operator ranked first in peak period

download speeds among 14 terrestrial and satellite

broadband providers in the FCC 2013 and 2014

reports “Measuring Broadband America”

1990s• Large constellations proposed, all canceled

• Expensive technology

• Cost-effective terrestrial competition

2000s• Smaller regional systems proposed and

deployed» Wildblue

» Spaceway

• Technical success, test bed for new

technologies, bandwidth cost reduction

• Acquisitions by established players

Present• Five major systems today and expanding:

» Eutelsat Tooway, HughesNet, ViaSat Exede,

Inmarsat Global Xpress, O3b

• Four providers affiliated with established

satellite operators (DTH, FSS, or MSS)

• 50% revenue growth over 5 years

• Subscribers grew 14% annually, tracking the

revenue growth

Prepared by:

0

20

40

60

80

100

120

140

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

• Continued and growing interest in inexpensive very

small satellites

• CubeSats are an established “kit” form of very small

satellite in use for academic, government, and,

increasingly, commercial purposes» 130 CubeSats were launched in 2014, up from 91 in 2013,

with 84 sent into orbit via ISS (28 CubeSats lost in Antares

failure in October)

» 101 commercial CubeSats launched in 2014 for Earth

observation services and communications, up from 8 in 2013.

The vast majority (93) are built and operated by Planet Labs

» Total expenditure to build all CubeSats since 2005 estimated

at less than $100M

» Growing concern regarding collisions with CubeSats – NASA

first major operator to say it has moved satellites to avoid

CubeSats

• Commercial constellations using customized very

small satellites (under 200 kg) are in development» Skybox: High resolution, multispectral sensors, up to 24 sats

planned, 2 launched to date

» OneWeb: Telecommunications, function more as nodes

compared to traditional comsats, 100s of satellites planned,

zero launched to date

Number of CubeSats Launched by Year (2005-2014)

What is a CubeSat?• A CubeSat is a cube-shaped satellite bus measuring 10cm on a side, with a

mass of 1-2 kilograms

• Can be stacked together (2U, 3U, 6U) depending on mission

• Costs» Low Cost: Basic 1U CubeSat bus kits can be purchased for $10,000; with

payload development it will cost roughly $100,000 per unit

» Moderate Cost: Boeing-built CubeSat platforms for NRO are expected to

cost no more than $250,000

» Higher Cost: NASA expects that CubeSats used for planetary science

missions may cost $3-$10 million

28 lost in launch failure

Case Study:

Very Small Satellites

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What are the most pressing questions that satellite operators need answered when launching a satellite into orbit?

1. What does the current orbital situation look like?

2. Which orbital slots have been reserved?

3. Will my signal get through?

4. How does the FCC process satellite broadcast applications?

5. What is in the FCC’s mailbox?

FCC Orbital Intelligence

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What does the current orbital situation look like? (Example: Filing at “129-West”)If you’re in the satellite industry, knowing which satellites are where is fundamental to business planning

129° WL

Example Questions:• What satellites and operators are at 129° WL ?• Are there pending applications to launch or move a satellite to this location? • How long did the application process take other satellite operators at 129° WL?

FCC Orbital Intelligence Outputs

Satellites Located at 129° WL Last Action Last Action Date

SES-129W: GSO FSS (Ku-band) Granted Launch and Operating Authority 10/16/2012

Galaxy 12: GSO FSS (Ku-band) Special Temporary Authority 9/25/2012

Telstar 9: GSO FSS (C-band/Ku-band) Modification 7/7/2005

EchoStar 5: BSS Special Temporary Authority 6/30/2005

Regional Positioning System: RPS Granted Launch and Operating Authority 6/23/2005

Rainbow Ka 2: GSO FSS (Ka-band) Granted Launch and Operating Authority 11/21/2003

Galaxy 27: GSO FSS (C-band/Ku-band) Modification 4/1/2003

EchoStar 8: BSS Special Temporary Authority 6/20/2002

EchoStar 7: BSS Special Temporary Authority 6/6/2001

Galaxy 9: GSO FSS (C-band) Amendment 5/7/1996

CON 2: GSO FSS (unspecified) Modification 8/2/1990

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Which orbital slots have been reserved?Improving Competitive Intelligence

DIRECTV Enterprises, LLCEchoStar CorporationIntelsat License LLCAirbus DS SatCom Government, Inc.LightSquared Subsidiary LLCRow 44 Inc.Spectrum Five LLCOther

0 1 2 3 4 5 6

BSS

BSS in Ka-band

BSS; GSO FSS (Ku-band)

DBS Expansion Band or Reverse Band…

Earth Exploration Satellite Service (EESS)

Earth Station (GSO FSS Ka-band)

Earth Station (NGSO FSS Ka-band)

Earth Stations on-board Vessels (ESV)

GSO FSS (C-band/Ku-band)

GSO FSS (C-band/Ku-band/Ka-band)

GSO MSS

Ku-band FSS ESV

Mobile Earth Station (MES)

NVNG MSS

Applications Filed by Applicant (2015-Present) Applications Filed by Service Type (2015-Present)

• Who is filing applications for different service types?• How can I use FCC notices and industry comments to gain context for competitor behavior?• How do I keep track of competitor plans for future launches or modifications?

FCC Orbital Intelligence Outputs

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Case Study: Will my signal get through?Staying on top of spectrum availability

Spectrum Usage

Ku-BandKu-BandKu-BandKu-BandKu-BandKu-BandKu-BandKu-Band

Orbital Location

120° WL - 130° WL120° WL - 130° WL120° WL - 130° WL120° WL - 130° WL120° WL - 130° WL120° WL - 130° WL120° WL - 130° WL120° WL - 130° WL

GSO FSS

AMC-21EchoStar FSSEchoStar KuXGalaxy 12Galaxy 5GStar IIHorizons 1SBS 5

Operator/Applicant

SES Americom, Inc.EchoStar Satellite Corp.EchoStar KuX Corp.Intelsat License LLCHughes Communications Galaxy, Inc.GE American Communications, Inc.Horizons Satellite, LLCPanAmSat Licensee Corp.

• What satellites are being operated at this orbital location?• Are any satellites going to re-locate or retire?• What operators are currently in this space?• Will my satellite be interfered with by others operators?

Ku-Band

FCC Orbital Intelligence Outputs

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How does the FCC process satellite broadcast applications?Tracking applications and stamp grants

Related Applications

SAT-STA-20140917-00101SAT-STA-20140801-00090SAT-STA-20140627-00081SAT-STA-20140604-00056SAT-STA-20140403-00037SAT-STA-20140203-00012

Application

SAT-STA-20141013-00108

Corresponding FCC Files

Public Notice 14-1532Stamp Grant 182014002035

• What applications have been filed this month?• Who is filing for what and for where?• What applications are referenced?• How long did it take for the application to be granted?• What applications is the FCC dismissing and why?• What applications have been granted this year?

FCC Orbital Intelligence Outputs

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Beyond applications: what is in the FCC’s mailbox?In addition to granting licenses to satellite operators, the FCC also serves as a clearing house for public discourse on pressing issues in the communications satellite industry

• It is important to stay tuned to ongoing conversations regarding regulation and policy changes

• Understanding how consumers and services providers feel affect strategic planning

• Some questions that can be answered by keeping track of public comments are:

• What do satellite operators think about FCC regulation changes?

• What does the public think about policy initiatives and/or regulation changes?

• Who is having meetings with the FCC and about what topics?

• Is the FCC responsive to constituent concerns? Which ones?

• What issues are most concerning for particular satellite manufacturers?

• What types of technologies are satellite manufacturers interested in researching and why?

Public Comments and

Reply Comments

Policy Implemented or Dismissed

FCC Policy Announcement

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Regulatory documentation is plentiful, but finding the relevant information you need is extremely time consuming

and resource intensive

FCC Orbital Intelligence

FCC Orbital Intelligence locates, catalogues, and cross references thousands of regulatory documents and applications from numerous sources

• Search through 30,000+ regulatory documents using numerous metrics

• Data pulled from each filing is returned in an organized, sortable table

• Filings notifications and summaries are automatically “pushed” to users for quick, real-time updates

FCC Orbital Intelligence

The comprehensive source for commercial space regulatory intelligence

PRIVATE & CONFIDENTIAL | AVASCENT | 19

AVASCENT1615 L Street, NW, Suite 1200, Washington, DC 20036TEL: (202) 452-6990www.avascent.com

FCC Orbital Intelligence Product Managers

Jonathan Beland(202) 280-6877

Jbeland@Avascent.com

Caitlin Kennedy(202) 280-6852

Ckennedy@Avascent.com

Questions?

Senior Director of Policy

Sam BlackSblack@sia.org