1 Tuesday, May 21, 2002 Satellite Industry Association

2 Satellite Industry Overview Services & Applications Launch Vehicles Ground Equipment Insurance Manufacturing Support Services Remote Sensing Oil pipeline monitoring Rail Management Infrastructure Planning Forest Fire Prevention Urban Planning Flood and Storm watches Air Pollution management Communications Wireless Networks Messaging Telephony Mobile Satellite phones Internet Backbone VSAT’s Credit Card Validation DBS/DARS Direct to Consumer TV & Radio Broadcast and Cable Relay National Emergency Broadcast System Broadband Tele-Medicine Tele-Education Internet to end-user Videoconferencing GPS/Navigation Position location Timing Land/Sea Rescue Mapping

3 Satellites are critical to economy, defense Backbone of national TV, radio, and print media distribution Billions of data, credit, banking transactions daily Primary information source to millions of Americans Essential to flexible global defense infrastructure Satellites are a reliable infrastructure component Largely independent of terrestrial network Space assets out of reach, satellites and gateways redundant Essential for disaster relief and recovery Satellites Are Critical Infrastructure

4 US Satellites and National Security Communications (Voice, Data, Direct Broadcast) Position, Navigation and Timing Early Warning, Tracking and Targeting Meteorological Observation Intelligence, Surveillance and Reconnaissance Technology, R&D, Experimentation

5 Terrestrial Re-use of Satellite Spectrum

6 Digital Audio Radio Services (DARS) Applications in the early 1990’s proposed terrestrial repeaters to compensate for signal loss in urban canyons and rough terrain FCC allocated DARS spectrum in competitive auction in 1997 Adjacent Wireless Cable Service (WCS) interference concerns and local radio content issues still being considered Part 15 issues – WiFi and Bluetooth FCC temporarily approved terrestrial repeater service in 2001 but has yet to issue final license rules

7 Mobile Satellite Services Satellite hybrid network proponents seek to combine the advantages of cellular and satellite systems Terrestrial opponents charge that hybrid systems are an end-run around standard auction process Satellite operators maintain that international satellite spectrum is unique Arguments as to whether a single entity is needed to operate both the terrestrial and satellite component of spectrum

8 Digital Broadcast Satellites (DBS) FCC recently announced that it will authorize MVDDS under the FSS allocation in the 12 GHz band MVDDS will share band with DBS and NGSO-FSS on co- primary (but non-interference) basis subject to service and technical rules FCC adopted a geographic licensing scheme and will assign terrestrial licenses via auction DBS, post-1993 spectrum purchased at auction Satellite television operators are concerned that significant interference will occur if terrestrial re-use is allowed

9 Other Key Satellite Spectrum Issues

10 Radar Detector Interference Satellite operators and their customers have suffered, and continue to suffer significant harm from radar detector interference Radar interference often in excess of 100 X Part 15 interference criteria Problems occurring across GHz band Satellite industry requesting current radar detectors off the market ASAP

11 Nextel Proposal (800 MHz) Nextel seeks 10MHz of MSS spectrum for its 800 MHz band realignment plan Proposed reallocation would hinder critical MSS services and other 800 MHz interference fix exists 3G Optimistic estimates suggested that demand for 3G services might create urgent spectrum needs Licensees need entire band to ensure growth and success of 2GHz MSS systems 2 GHz MSS Spectrum

12 Reducing processing time Addressing mutual exclusivity Discouraging speculative filings and ‘green mail’ Preserving replacement expectations Developing meaningful milestones Reduce need for interpretation and enforcement Satellite Licensing Reform

13 Orbital Debris NPRM FCC recently released all-encompassing NPRM regarding Orbital Debris policies and practices The current policy of a “self-policed” industry works well for US based GEO satellite operators: Industry is highly motivated for economic reasons No collisions to date U.S. has maintained excellent de-orbit record

14 New Uses for Satellite Spectrum

15 The Future of Air Traffic Management Satellites are central to FAA’s future plans Navigation Communications Emergency beacons Increased emphasis on real-time threat response Plane tracking Cabin surveillance Black-box telemetry “Safe mode” controls

16  30 Mbps Output from Satellite 400+ Mbps Output from Satellite 400+ Kbps to User Kbps from User 30+ Mbps to User 512+ Kbps from User Ku-band Satellites (Existing) Ka-band Satellites (from 2003) Copyright ©2002, Hughes Network Systems, All rights reserved Evolution Satellite Broadband