1. SAP plenary meeting, 09/07/01, Brussels Satellite Activity Organisation Entity involved in satellite activity

2. SAP plenary meeting, 09/07/01, Brussels Satellite : Pros Wide-Worldwide Coverage –links with isolated or remote countries orterritories (Intelsat or French Overseas departments on Telecom 2), or customers (VSAT), –Worldwide coverage => Mobile services on land / maritime / aero on Inmarsat, for instance, –Fast service availability with short term / temporary link for exemple with TV/ radio event, or start up ISP connexion, Broadcasting ability –Radio / TV broadcast => French « bouquets » on Telecom 2 (followed by Stellat in 2002) and Eutelsat fleet, –Specific Value Added Services : platforms for Video Streaming, Caching, …

3. SAP plenary meeting, 09/07/01, Brussels Satellite : Cons Long term projects (2 to 4 years delivery time for satellites) => difficult to predict / match emerging services, Possible capacity shortage on some areas due to limited number of Orbital positions and limited bandwith (waiting for Ka band) => spectrum/orbital slot management issue, With Satellites, it is difficult to make upgrades over their lifetime in order to get increased capacity, compared to terrestrial or submarine cables Specific terminals (e.g. on 2-way IP access : ) « proprietary » service, challenge to find economies of scale (DVB/RCS)

4. SAP plenary meeting, 09/07/01, Brussels Africa & Middle East @ Botswana Cameroon Central African Rep. Côte d'Ivoire Egypt Equatorial Guinea Israel Jordan @ Lebanon Madagascar Mauritius Morocco Senegal South Africa Turkey United Arab Emirates @ @ @ @ @ Americas Argentina Brazil Canada Chile Colombia Dominican Républic El Salvador Guatemala Honduras Mexico Peru USA Venezuela @ @ @ @ Asia Australia China Hong Kong India Indonesia Japan Malaysia New Zealand Philippines Singapor South Korea Taiwan Thailand Vanuatu Vietnam @ Europe Austria Belgium Bulgaria Czech Republic Cyprus Denmark Finland France Germany Greece Hungary Ireland Italy Luxembourg Moldova Netherlands Norway Poland Portugal Romania Russia Slovakia Spain Sweden Switzerland United Kingdom @ @ @ @ @ @ @ @ @ @ @ @ @ Wireline Wirefree Internet & Multimedia @ Broadcast equant FT office Satellite : an appropriate tool for Worldwide Operators

5. SAP plenary meeting, 09/07/01, Brussels Satellite : FT 2000 Revenues

6. SAP plenary meeting, 09/07/01, Brussels Satellite IP : the last frontier ? Which customer target : identified and permanent markets or temporary markets (IP backbone, last mile solution prior to ADSL) ? Which service : streaming multimedia with a little interactive access to IP or ADSL like Broadband IP services ? Which terminal : « proprietary » or standardized one (DVB RCS ?), - who is best placed to deliver the service to the final customer (Content provider, access provider, …) and what is the appropriate distribution model ? - Comparisons to make with tariffs for terrestrial services ?

7. SAP plenary meeting, 09/07/01, Brussels European Regulatory environment : FT issues Regulatory Review : this market should be under competition rules Vs regulatory rules, Spectrum management : need for a joint work of all concerned european entities, according to a global approach involving all players, RTTE Directive : some flexibility is required for Satellite terminals, due to their Business specificities (narrow market, risky business), => FT is committed to take part in all Consulting Committees and Working Groups related to these sensitive and difficult issues.