Satellite TelecommunicationsSatellite Telecommunications• Satellite telecommunications services growth Satellite telecommunications services growth

expected to continue from $27 Billion in 2000 to expected to continue from $27 Billion in 2000 to $106 Billion in 2010$106 Billion in 2010

• Major growth expected in Major growth expected in broadband data and video broadband data and video services, mobile Digital Audio Radio Services (DARS) services, mobile Digital Audio Radio Services (DARS) and regional mobile systemsand regional mobile systems

• Same dynamics as the terrestrialSame dynamics as the terrestrial

• Future difficult to predict because of rapidity of changeFuture difficult to predict because of rapidity of change

Satellite Telecom RevenuesSatellite Telecom Revenues• Interactive Multimedia Rev. from $1B in 2002 to $18B in 2007Interactive Multimedia Rev. from $1B in 2002 to $18B in 2007• DARS Revenues up to $9B in 2007DARS Revenues up to $9B in 2007• MSS growing at 39% CAGR MSS growing at 39% CAGR

0

20

40

60

80

100

2002 2003 2004 2005 2006 2007

Fix

ed

Sat

elli

te R

ev

en

ue

($B

)

DBS FSS VSAT Multimedia

02468

10121416

2002 2003 2004 2005 2006 2007

Mo

bile

Sat

elli

te R

ev

en

ue

($B

)

DARS MSS

Source: Merrill Linch, Mar 01

Satellite Telecom UsersSatellite Telecom Users• Satellite Interactive Multimedia users: 2M to10M by 2007Satellite Interactive Multimedia users: 2M to10M by 2007• DTV home viewers in Europe could exceed 34M by 2007DTV home viewers in Europe could exceed 34M by 2007• DARS users in the US could exceed 23M by 2007DARS users in the US could exceed 23M by 2007

50

60

70

80

90

100

110

2002 2003 2004 2005 2006 2007

Fix

ed

Sat

elli

te U

sers

(M

)

Broadcast & Multicast Interactive Multimedia

Source: Merrill Linch, Mar 01

0

10

20

30

40

50

2002 2003 2004 2005 2006 2007

Mo

bile

Sat

ellit

e U

sers

(M

)

DARS MSS

European Operators Market ShareEuropean Operators Market Share

Loral 8%

Others24%

INTELSAT16%

Hispasat1%

Telenor5%

New Skies3%

GE Americom7%

EUTELSAT9%

SES11%

Panamsat14%

Telesat 3%

• European operators obtain more than 30% of the revenueEuropean operators obtain more than 30% of the revenue• Steady growth especially from geographical expansionSteady growth especially from geographical expansion

Operators Revenue Share in Operators Revenue Share in 20002000

Source: Space News, May 2001Source: Space News, May 2001

0

500

1000

1500

2000

2500

1997 1998 1999 2000

Rev

enue

s ($

M)

SES EUTELSAT NSAB Telesat Hispasat Telenor

Source: Avanti CommunicationsSource: Avanti Communications

Satellite manufacturersSatellite manufacturers

Good progress for European satellite manufacturersGood progress for European satellite manufacturers

Source: via Satellite, May 2001

• More than 50% of the geo-sat contractsawarded to Europeanmanufacturers

• Need to invest in order to stay ahead in XL platforms 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1997 1998 1999 2000

GE

O S

atel

lite

Ord

ers

US Europe

The Need for XL PlatformsThe Need for XL Platforms

Source ASTRIUM, Jan 2001

0%

20%

40%

60%

80%

100%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

GE

O S

atel

lite

Siz

e (%

)

Small - below 3 kW Medium - to 6.5 kW Med-Large - 6.5 to 8 kW

Large - 8 to 16 kW X Large - 16 to 30 kW

Consumer equipment manufacturersConsumer equipment manufacturers

• Consumer equipment Consumer equipment producers have flourished producers have flourished by capitalising on by capitalising on Europe’s early adoption Europe’s early adoption

of DVB standardsof DVB standards

Set Top Box Market Share 1999 ($3.8B Total)

Pace 11%

Philips9%

Nokia9%

Sagem5%

Grundig3%

Italtel2%

Sci Atllanta10%

Echostar5%

Motorola13%

Others30%

Thomson MM2%

Humax1%