Transcript Corporate Overview Pt 1 NAD 2012

Leader in Broadband Satellite
Caspian Telecom
April 18-19,2013
Konstantin Lanin
HUGHES PROPRIETARY
Business Segments
EchoStar Corp.
$3,122
EchoStar
Technologies
& Other
$1,689
HSS Corp.
$1,433
EchoStar
Satellite Services
$274


Set-top hardware for satellite TV service
providers and place-shifting technology

Digital broadcast operations
Hughes
$1,159
Leases transponder capacity on satellite
fleet primarily to Dish Network, Dish
Mexico and secondarily to government
entities, ISPs and broadcast news
organizations
North America
Consumer

Largest satellite
broadband ISP to North
American consumers

659K subscribers
Note: Revenues above are in $ millions and are as of 12/31/12,
Subscriber Count as of 12/31/12
North America
Enterprise


International
Enterprise
World’s leading provider of broadband
satellite network solutions to enterprises
VSAT technology pioneer
HUGHES PROPRIETARY
Satellite Services –
Satellite Fleet
22 EchoStar owned, leased, and managed satellites
HUGHES PROPRIETARY
Hughes Mission
To be the world’s premier provider of broadband services,
products and network solutions, bridging the best of satellite
and terrestrial technologies.
HUGHES PROPRIETARY
World’s Leading Provider of
Broadband Satellite Services and Technology
■ Consumer/SMB
■ Enterprise
■ Government
■ Mobile Satellite
HUGHES PROPRIETARY
VSAT Has Come a Long Way
3,000
Consumer
Hughes Consumer
2,500
Hughes Enterprise
Thousands of Sites in Service
Enterprise
2,000
1,500
1,000
500
0
85
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95
96
97
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99
00
01
02
03
04
05
06
07
08
09
10
11
Source: Comsys
HUGHES PROPRIETARY
VSAT – Past
PES Type 1
Circa 1985 VSATs…
 Bypass the terrestrial network for
speed and reliability
 Supported SNA/SDLC (multidrop)
and X.25
 2,000 sites was a very big network
 Cost $10,000+
6 PC Boards
Outdoor power
1.8 m antenna
 512 kbps outbound
 128 kbps inbound
 9.6 kbps user rate
HUGHES PROPRIETARY
Hughes Development Trajectory
Continuous development of VSAT systems
JUPITER™ High-Throughput
System
• Wideband forward
• Very high speed return
• 10’s Mbps services
HX System
• 120 Mbps forward
• 9.6 Mbps return
• Mobility/Mesh/Security
HN System
DW System
DirectPC
• 75 Mbps forward
• 512 Kbps return
• Internet access
• Private VPN
• 120 Mbps forward
• 3.6 Mbps return
• Internet access
• Private VPN
Common core technology
• 75 Mbps forward
• Terrestrial return
• Internet access
•DVB based forward channel
•IPoS based return channel
•Common IP capabilities
PES
• 512 Kbps forward
• 256 Kbps return
• Corporate networks
1990
1995
2000
2005
2010
2013
HUGHES PROPRIETARY
Over 900,000 VSATs Operated By Hughes
Over 3,300,000 VSATs Shipped By Hughes
186K
50K
VSATs shipped
Europe
2.6M
VSATs shipped
Russia/CIS
VSATs shipped
North America
Europe
>40,000 VSATs
111K
VSATs shipped
Asia/Pacific
North America
>800,000 VSATs
107K
VSATs shipped
AME
160K
VSATs shipped
Latin America
Brazil
>15,000 VSATs
India
>50,000 VSATs
120K
VSATs shipped
INDIA
HUGHES PROPRIETARY
VSAT – HughesNet North America Today
700
600
500
400
300
200
100
0
Subscribers
In thousands
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
180
224
274
327
380
433
504
578
628
659
HUGHES PROPRIETARY
SPACEWAY® 3
The World’s First Switch-In-The-Sky

10 Gbps gross throughput

Multiple spot beams with flexible
capacity allocation and onboard
routing

Single-hop, full-mesh,
small-dish connectivity

Enterprise, consumer, SMB, and
government applications

Ka-band technology

April 2008: commercial service;
>500 K subs (12/31/12)
HUGHES PROPRIETARY
EchoStar XVII with JUPITER™
High-Throughput Technology
Launched July 5, 2012
Service launched October 1, 2012
 60 spot beams
 Well over 100 Gbps + Capacity
 Highest forward throughput
 Highest satellite EIRP/beam
 Optimizes capacity density to
where users are located
HUGHES PROPRIETARY
World’s Largest Consumer Satellite
Internet Service
EchoStar XVII
Power
Power PRO
Power MAX
Downstream (Mbps)
10
10
15
Upstream (Mbps)
1
2
2
Anytime (GB)
10
15
20
Bonus Bytes (GB)
10
15
20
$39.99
$79.99
$99.99
MSRP
SPACEWAY 3
EchoStar XVII
HUGHES PROPRIETARY
Consumer Market Is BIG and Getting BIGGER
We will provide a better service than
a significant proportion of the DSL in
rural areas
The Market in
North America
U.S. Housing
Units (mm)
~14.0 M
14
Unserved within DSL/Cable Footprint
12
Outside Cable/DSL Footprint
10
8
Current Market Penetration: ~8%
Hughes: 659 K
’12FYE Subs
ViaSat : ~467 K
’12FYE Subs
6
4.8 M
~3.5 M
4
40% of rural
Broadband users
have speeds less
than 10 Mbps
~1.0 M
2
0
Unserved
Households
Current Market
Penetration
Opportunity
with New
Generation
Satellite
Capacity
Current Dial-Up
Households
HUGHES PROPRIETARY
Hughes Networks In
Action
HUGHES PROPRIETARY
Mobile Broadband Solutions
■ Broadband on-the-Go
■ Maritime
– Global marine communications
– Intelsat maritime service
■ Aeronautical -Row44
– Southwest Airlines
– Norwegian AirShuttle
– Icelandair
– Transaero, UTAir
– Mango Airlines
Trains
– Commuter train
service
in USA
■ Technology provider to the leaders
Inmarsat
Thuraya
Globalstar
Iridium
HUGHES PROPRIETARY
Integrated COTM Terminal Solutions
Airborne
Land Mobile
Maritime
Thinkom
AeroSat HR 6400
DRS
Harris X/Ka
Harris X/Ku
GD Satcom
Rantec Ku 11.5/18”
Raysat
Cobham
Azimuth
Cobham/Seatel
L3-Datron
Tecom
HUGHES PROPRIETARY
Government: DoD Opportunities
Satellite on the Move
DoD Bandwidth Gap
Hughes offers a range of
products from L-band to
Ku-, Ka-, and X-band
HX-Based MicroSat Terminals
Hughes DoD Opportunities
 Agile bandwidth


 On-the-move solutions
Man-portable terminals
 3 to 50 Mbps broadband solutions
Commercial or military Ku-, Ka-,
and X-band satellites
HUGHES PROPRIETARY
Looking Forward
HUGHES PROPRIETARY
Markets and Applications –
Evolution of Satellite Broadband
5-10-25 Mbps
Significant increase in throughput and
performance
9.6 kbps
1990
2000
2011
2015
New Addressable Markets: SME and Consumer
Ka-band Accelerates
these Forces
$$$$
Significant reduction
in cost of service and hardware
1990
2000
2011
2015
HUGHES PROPRIETARY
Future Evolution of VSAT
Launch Vehicles
Satellite Bus and Payload
Ground Systems
HUGHES PROPRIETARY
Broadband Satellites Beyond
EchoStar® XVII
 Satellite bus and rocket advances
 Increase mass – 8000+ Kgms
 Increase power – 20+ Kwatts
+
200-300 Gbps
capacity
 Payload and spectrum advances
 More and smaller beams
 Alternative bands
Lowering the cost per bit
 Feeder beams
 User beams
 Wideband carriers
Traditional
Satellite
SPACEWAY 3
Satellite
EchoStar XVII
Next generation
HUGHES PROPRIETARY
Ground Systems – Future
Development Focus
Gateways
VSATs
Capacity
Density
Power efficiency
V-band and other spectrum
Gflop/sec processor blades
100 Mbps Throughput
and
Performance
Digital modem technology at near theoretical
Hardware-based acceleration
Spectral efficiency
Beyond DVB-S2:
- 64-ary modulation
- Faster than Nyquist signaling
Advanced VLSI
Fast response times
Accelerating Java script
HTML5 acceleration support
Intelligent caching
Air Interface
Acceleration
Key Enablers
HUGHES PROPRIETARY
Ka-Band Technology Development
Benefits Flow Through
Hughes Approach
Ka-band
Investment in
Ka-band Systems
Application
Transport
Ku-band
Network
Data Link
Physical
C-band
Common Core Technology Used for All VSAT Systems
HUGHES PROPRIETARY
HUGHES PROPRIETARY