www.Yahsat.ae

Satellite broadband in emerging markets

VSAT Conference

London, 16-18 September 2015

Antonio Bove, Director Product and Marketing

Yahsat

www.Yahsat.ae

Yahsat history

www.Yahsat.ae

Managed Solutions | Government Capacity

Home Solutions | Business Solutions | Transportable Solutions

IP Trunking Solutions | Corporate Networking Capacity | Backhauling capacity

Yahsat provides multipurpose satellite solutions for government enterprise, broadcast customers use across Europe, Middle East, Africa, Central and South West Asia

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www.Yahsat.ae

Mubadala manages a multi-billion dollar portfolio of projects across a

variety of industry sectors.

The presence of Mubadala’s investment reaches the following sectors:

Energy

Aerospace

Healthcare

Real Estate

Technology

Infrastructure

Services

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Who we are?

Number 1 provider of satellite broadband

services in Africa

World’s 8th largest satellite operator

>30,000 Subscribers

23% Net Income annual growth

Will be covering 600 million people globally

Present in 140 countries

Over USD 300 Mn in revenue

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www.Yahsat.ae

Yahsat History and Key Milestones

2008 2007 2010 2011 2009 2012 2014 2013 2016 2015 2017

Satellite Manufacturers

Selected

First Commercial Agreement

Signed

UAE Armed Forces

Signed as Anchor

Customer

YahLive Launched

YahClick Commercial Broadband

Service Launched

Awarded Satellite

Operator Of the Year, at

SATCOM AFRICA

Formed JV with SES to Launch DTH Broadcasting

Y1A Launched

Y1B Launched

>35 Service Partners

Established

Al Yah 3 Commissioned

Expands Portfolio with New “Pick & Click” packages

Al Yah 3 Launch Target

Won Brazilian landing rights for Al Yah 3

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COMMERCIAL ENTITIES GOVERNMENT AUTHORITIES COMMUNITIES

Central Bank of Afghanistan UAE Armed Forces Kenya E-health mini clinics

(36 commissioned to date)

National Identity Program of

Nigeria Emirates Nuclear Energy Corp.

BBC broadcast hostage situation in

Kenya

Revenue Authority of

Uganda

Abu Dhabi Autonomous Systems

Investments

E-learning system and education on

the wheel e.g. Pakistan

Universal Service & Access Agency,

S. Africa Ministry of Health, UAE

United Nations Children Fund, World

Food Program, UNOCHA, OHCHR

e.g. Yemen, Pakistan, Afghanistan

National Drilling Company, UAE MoD, Kingdom of Bahrain

Abu Dhabi Ship Building Lockheed Martin

Co-op & Agricultural

Credit Bank, Yemen Atlas Elektronik

US Department of

Defense

Yahsat provides critical infrastructure to a variety of organizations and connects communities

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How HTS will change our life

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HTS, capacity in excess?

Region Supply

(’17, Gbps) Demand

(’17, Gbps) Demand CAGR

(’13-’17)

North America 635 164 23%

Latin America 3132 57 26%

Western Europe 92 32 43%

Central Europe 46 6 52%

Russia & C. Asia 61 11 123%

MENA 93 32 31%

S.S. Africa 67 25 141%

South Asia 40 10 45%

North East Asia 26 3 1%

China area 5 9 0%

South East Asia 43 13 22%

Oceania & Pacific 123 15 39%

0

200

400

600

800

1,000

1,200

1,400

1,600

2009 2011 2013 2015 2017 2019 2021 2023

CONTRIBUTION

TRUNKING/ BACKHAUL

BROADBAND ACCESS

COMMITTED HTS LEASES-UNUSED

ENTERPRISE NETWORKS

Who will win the race

x11

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Contractor: Airbus &

Thales Alenia

Orbital Location: 52.5°E

Lifetime: 15 Years

Launcher: Ariane 5

Capacity/Payload:

C-band: 8 x 36MHz + 6 x

54MHz Transponders

Ku-band BSS: 25 x

33MHz Transponders

Ka-band Secured

Government

Contractor: Airbus &

Thales Alenia

Orbital Location: 47.5°E

Lifetime: 15 Years

Launcher: ILS-Proton

Capacity/Payload:

Ka-band Commercial:

25 x 110 MHz

Transponders (56 Spot

beams)

Ka-band Secured

Government

Contractor: Orbital ATK

Orbital Location: 20°W

Lifetime: 15 Years

Launcher: Arianespace

Capacity/Payload:

Ka-band Commercial:

58 Spot beams

Y1A Y1B AL YAH 3

Yahsat constellation

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Launch 2016

www.Yahsat.ae

Decline in CAPEX per Gbps, space & ground segment, plus economies of scale provide a price advantage for HTS

SPACE SEGMENT GROUND SEGMENT

Frequency re-use technology multiplies Gbps capacity per satellite

Reducing cost for HTS spacecraft platforms from innovations

Steady overall decline in CAPEX per Gbps (e.g.~$1 Mn/Gbps for Viasat-2)

High density baseband architecture lowers investment per Gbps

“Managed” solutions where multiple customers utilize a single gateway

Service platform synergies that serve multiple customer segments/ applications simultaneously

Reducing CPE prices make HTS accessible for larger audience

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The bigger the better, but …

it will not be only a price game!

www.Yahsat.ae

From legacy to new business paradigms

Which VAS to select?

Which product bundle makes most sense?

Make or Buy?

How the end to end provisioning shall be orchestrated?

Which IT infrastructure is required to address all segments?

How the OSS/BSS shall be integrated with ground segment to address vertical markets?

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MHz

Msps

Mbps

CIR

Best effort

VAS

From wholesale models

to wholebuy models

Market Segments

Co

mp

lex

ity

How to maximize yield with the optimal product mix?

www.Yahsat.ae

Are we ready for that?

So we want to do it?

Do we have the means to do it?

Do we have the skills to do it?

Are we ready to fail?

Are we ready to make experiments?

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From simplicity to increased level of complexity

Reseller

Master Distributor

Distributor Dealer

PoS

New

competencies

Traffic

analytics

Open service

platforms (APIs)

New business

rule

Integrated

marketing

Customer

analytics

www.Yahsat.ae

Yahsat Current and Future HTS Ka-band Coverage

Y1B (47.5E) AY3 (20W)

Al Yah 3 extends Ka- band to 17 new markets plus tops-up key African markets

~40 Gbps, Planned Launch

2016 AY3 will cover >95% of Brazil’s

population

AY3 Coverage Y1B Coverage Combined AY3 & Y1B Coverage

Yahsat covers 60% of Africa’s

population

~15 Gbps, Currently in Orbit

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Brazil Ka-band coverage on Al Yah 3

Al Yah 3 Coverage over Brazil

AY3 Ka-band coverage area

Large coverage reaching over 95% of population

High availability and throughput, even with small consumer terminals

In-country gateway with site diversity

27 beams with contiguous coverage (e.g. supports domestic air routes, COTM)

Good elevation angles across all beams

Targeted capacity per beam (Max: 500MHz, Min 125 MHz)

Yahsat Advantages

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HTS Ka-band: Achieving solid results

Highly attractive prices resulting from declining CAPEX costs & greater economies of scale on ground segment

SERVICE PRICE

Excellent resilience and link performance, even in adverse weather conditions

AVAILABILITY & PERFORMANCE

High throughput and efficiency even on consumer grade terminals (72cm – 120cm)

THROUGHPUT & EFFICIENCY

Advancements in technology & design providing flexibility to serve wide variety of customer segments simultaneously

SEGMENT COMPATIBILITY

1

2

3

4

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Some more food for thoughts

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Compared to Europe, Africa’s traffic pattern shows a delay in maturity of broadband in Africa

Source: Sandvine, Delta Partners analysis

38%

19%

16%

5%

9%

13%

Average

Fixed Internet Traffic Europe (% of total traffic)

35%

29%

8%

6%

6%

16%

Average

Mobile Internet Traffic Africa (% of total traffic)

Real-time entertainment

Web Browsing

File Sharing

Market places

Web Browsing

Communications

File Sharing

Social Networking

Market places

Other

Social Networking

Other

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Mobile data prices in Africa vary widely per country, …but the average PPGB is below most regions in the world

LTE

WiMax

Fixed

xDSL,

Fibre

VSAT

3G

Level of competition

• 61% population coverage of Safaricom (Sep’14)

• Aggressive price policies with liberalisation of

mobile market and introduction of new players

• Launch in Nairobi and Mombasa by Safaricom

• Safaricom required to share at least 30% of 4G

network capacity with competitors on a

commercial basis

• Strong competition from Avanti (very similar

pricing without FAP rule)

• Increasing number of ISPs offering VSAT

solutions

• New fibre roll-out by Safaricom (1,650km by

March’15)

• 70% of fixed BB customers subscribed to FTTx

• Government considering to reallocate

frequency in 2.6GHz band for wireless BB

services

• Main towns and cities covered by AccessKenya

Pricing benchmarks

(USD / GB)

Home (1-4Mbps, 20GB)

4.37

Business (3+ Mbps, 80GB)

0.48 NA 4.44

Cheapest Average Cheapest Average

6.28 5.03 NA NA

4.37 7.50 NA 6.92

2.732 0.68 4.82 14.37

7.10 3.34 6.86 21.26

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Market Segmentation

Enterprise and G&I

Government projects enabling USO initiatives — health, school networks, community development, local government administrations

Oil and Gas Sector

Construction Companies

Governments and Institutions (G&I)

Local and International NGOs

Consumers / SoHo / SMEs

Individual users in sub-urban and rural areas (underserved or un-served)

High income consumers (holiday houses)

VIP customers with connectivity back-up needs

SoHo and SMEs

Cybercafés

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Customer Demographics

NUMBER OF HOUSEHOLD

USERS

NUMBER OF BUSINESS

USERS

11

14

19 48

6

HOUSEHOLD OCCUPATION

Others Lower/ Middle ManagementTop Management Self employedDeclined

68 32 BUSINESS HOME

29

35

10

13

3 3 6

One or two users Three to five users 6 to 10 users11-15 users 16 to 20 users 21 to 30 users

15

53

18

15

One user only Two or three usersFour to five users More than 5 users

2 2 6

38 52

HOUSEHOLD LSM

LSM 6 LSM 7 LSM 8 LSM 9 LSM 10

Mean = 8 Mean = 3

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Customer Demographics

17

54

28

1

LOCATION

Herat Kabul Kandahar Nangarhar

17

25

25

8

25

OCCUPATION

Lower Management Middle Management

Top Management Small business owner

93 7 BUSINESS HOME

29

40

19

5 4 2 2

One or two users Three to five users 6 to 10 users11-15 users 16 to 20 users 21 to 30 users

50

25

17

8

One user only Two or three usersFour to five users More than 5 users

NO. OF HOUSEHOLD USERS NO. OF BUSINESS USERS

Mean = 6 Mean = 3

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No pressure no diamonds!