1. TUYAD/GVF Regional Cooperation: Developing VSAT for Underserved/Unserved Areas in Eurasia Dr.Ilhami AYGUN iaygun@ssi-monaco.com TUYAD, President (Correspondent Association of GVF for Turkey) Space Systems International-Monaco S.A.M. President&CEO

2. The Global VSAT Forum & TUYAD Connecting the unconnected of Eurasia & the World via satellite Global non-profit Association 230 companies in 100 Countries Enabling elevated socio-economic development through…  Effective Regulation & Policy  Capacity Building  Coordination of Telecom Infrastructure Support  TUYAD is Correspondent Association of GVF for Turkey

3. The Global VSAT Forum & TUYAD Connecting the unconnected of Eurasia & the World via satellite  TUYAD is Correspondent Association of GVF for Turkey  The Turkish Association of Satellite / Antenna and Electronic Communication Business people: TUYAD, which is the GVF correspondent in Turkey, is the only professional society of its kind that encompasses private and public sector companies and institutions in Turkey.  TUYAD promotes technical cooperation among its members; established national and international contacts, organises educational and technical seminars, workshops, forums, congresses, fair and symposia and promotes international quality standards in Turkey.

4. Strategy Review… An Overview  Securing Communications Access through Satellite Connectivity Training Imperatives  Satellite & Satellite-Hybrid Connectivity Technology Solutions for Underserved/Unserved Regions (with TUYAD)  Communications Sustainability through Multi-Agency Collaboration  The GVF “SatCommunity" & Disaster Preparedness Initiatives

5. Strategy Review… 2  Securing Communications Access through Satellite Connectivity Training Imperatives  Satellite & Satellite-Hybrid Connectivity Technology Solutions for Underserved/Unserved Regions (with TUYAD)  Communications Sustainability through Multi- Agency Collaboration  The GVF “SatCommunity" & Disaster Preparedness Initiatives

6. Satellite-WiFi Broadband Access Model Sat. Receiver/ Router Satellite Service Provider Uplink Sub. Management Internet Backbone Sat. Receiver/ Router Sub. Management WiFi Access Point Satellite-Based Wi-Fi in Villages

7. Satellite-Based Wi-Fi: A Return on Investment

8. WiMAX and Satellite – Reaching Remote Areas… Sustainably IP Core Network PSTN / Voice Network Softswitch VoiceMAX Netspan NMS Backhauling Broadband Source: Gilat

9. Rural & remote Base Station Satellite Dish WiMAX Base station WiMAX Antenna IPSTAR User Terminal Network Appliance WiMAX InDoor Unit Source: Intel

10. End User location Ethernet Cable Source: Intel

11. Intelsat / GVF / NetHope / iDirect / Wireless / Intel SATELLITE IP NETWORK & SERVICE Space segment Terrestrial SOLUTION & EQUIPMENT PROVIDER Hub equipment / network enhancements GNMS/ABS/DVB-S2/ACM Remote Units (CPE) ANTENNA INSTALLATION Integrated CPE and electronics Service, maintenance and support SERVICE DELIVERY MGMT Integrated service solution Application development End user web interface IP service End user cell/messaging roaming Billing Collections, Portal Mgmt Marketing and Branding Service Provider Basic Functions / Value Chain Basic Functions End Users Wireless Network Infrastructure Distribution of service Other areas of expertise WiFi / GSM / WiMax / LTE Or Local Installer World Ahead Program Low cost PC / Laptops Support / Training Offline/online Applications INTEL PROGRAM FACILITATION Stakeholder Coordination Satellite Training Worldwide Regulatory & Spectrum Management GVF NetHope / Member Community

12. Recent Developments

13. WiMAX and Satellite: Sustainability Factors  Assumptions: –Residential customers ARPU is very low ($5-$10) –Emerging markets remote areas have no/few businesses –Where businesses exist, they will pay $250-$1000 per month  Achieving profitability from residential customers only is very difficult  Will require one or more subsidies: –Equipment –Space segment –Monthly customer charges Source: Gilat

14. WiMAX & Satellite… sample business model  Locations: 150  Households per location: 100  Penetration: 35% (35 sites = total 5250 subscribers)  Residential service: 128Kbps/64Kbps  Business penetration: 4%; 1.4 businesses per site  Business service: 256Kbps/128Kbps  Residential Monthly charges: –Service: $10; Telephone: $5 (calls within village are free); One time hook up: $5  Business Monthly charges: –Service: $250; Telephone: $5 (calls within village are free); One time hook up: $5  Required subidies to become profitable –CAPEX = $6.7M for entire deployment (more required for growth)  Result: Breakeven in 1 st year Source: Gilat

15. Applications  Community –News, Chat, on-line music  Tourism –eMail, Blogs, Photo-sites –Tourist Guides  School –Geography, Math, et. Al.  Farmers –Crop and disease information  Health Clinic –Health and pharmaceutical information  VoIP Source: Intel/USAID

16. The Eurasia opportunity  Direct value added to existing/planned projects  Establish ‘Digital Village’ infrastructure  Begin reaching greater proportion of population – remote rural & other underserved / unconnected areas  Build Upon Existing… –Satellite and wireless industry capabilities –Universal Service/Access Funds –NGO-driven networks –Industry/Vertical networks (social responsibility clauses)

17. Collaborative Partnerships Public-private sector collaboration, where… Local Government (&/or PTT): Provides enabling regulatory environment and, possibly, seed funding External Funding Entity: Provides matching grant GVF: Provides capacity building, facilitates regulatory reform, establishes private sector support Private Sector: Provides in-kind support and delivery of services to selected ‘stakeholders’ ITU, NGOs, etc: Provide visibility, content, applications to user community, motivation

18. Direct investment by the operators Government budget / subsidy Brazil, India, Mexico, Angola, Telkom SA Chile, Brazil GESAC, China XJ, Tibet Funding SourceExample Comments Required very strong regulatory body to implement significant Government budget for rural development USO Fund - indirect contribution by the operators: % of total / designated revenues, % of license fees, etc. Colombia, Peru, Guatemala usually 1%-5% of total/designated revenues, and/or license fees Remote Communications: Examples of resources for funding

19. Thank You Dr.Ilhami AYGUN iaygun@ssi-monaco.com TUYAD, President (Correspondent Association of GVF for Turkey) S pace S ystems International -M onaco S.A.M. President&CEO