BLUE

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Broadband for a mobile planetTM
BGAN Messaging Version 1.2 December 2005
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BGAN the elevator pitch
1st mobile communications service to offer
Broadband data (up to half a megabit)
plus voice
accessible simultaneously through a single
compact device
with guaranteed data rates on-demand
that will be available globally Smaller,
Lighter, Faster, Cheaper Wider Reach
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Key benefits of BGAN
Hygiene factors
Unique benefits
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Global coverage

• Mobile broadband coverage wherever you go
• Initially accessible in Europe, Africa, the
  Middle East and Asia
• Available in North and South America by April
  2006
• 85 of worlds landmass covered by the first two
  satellites

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Simultaneous voice broadband data

• Accessible through one device
• Make a phone call while downloading email or
  sending live video
• Performance equal to terrestrial broadband
• Up to half a megabit data rates
• Guaranteed data rates on-demand

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Highly portable

• Small, lightweight terminals
• Can be carried as easily as a notebook PC
• Smallest terminal weighs less than 1 Kg
• Set up a broadband mobile office in minutes

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Flexible

• A range of terminals to suit single users or
  small teams
• Supports IP and circuit-switched applications
• Wired and wireless connectivity options
• Customisable user interface

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Easy to use

• Consistent user experience
• Easy to carry, quick to set up, simple to use
• Same user interface across all terminals
• No technical expertise required
• 24/7 customer support

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Reliable

• Dependable, peace-of-mind communications
• I-4 network capacity is 16 times higher than I-3
• Ability to dynamically re-direct network capacity
  to areas of high usage
• Robust terminals for challenging environments
• 24/7 customer support from our partners

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Secure

• Inmarsats vast experience in serving government
  customers
• Supports all major VPN products and encryption
  standards

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Competitively priced

• Significantly lower cost of ownership
• Competitive with other mobile satellite services
• Highly competitive compared to international
  roaming on cellular
• Flexible packages
• Greater control of budget

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BGAN Market Driver Facts

• Data Solutions are needed to drive a modern
  organisation
• Typical applications are designed to be used in a
  Local Area Network (LAN) environment
• Mobile use is growing faster than any other
  method. End users are not in an office (or dont
  want to be)
• Inmarsat Data Solutions (esp,) BGAN, are Business
  Enablers to improve efficiency where and when
  such normal office connections are not
  available
• BGAN has a far wider reach than other third
  generation services and can be just as cost
  competitive
• BGAN is secure and totally independent of local
  infrastructure

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What does the customer need?

• Global or regional coverage?
• Mobile, fixed or portable connectivity?
• Voice or data, or both simultaneously?
• Low speed data or high speed data?
• Demand assigned charges or package pricing?
• Post-pay or pre-pay?

BGAN WILL SERVE ALL OF THESE NEEDS The answers to
these questions will tell you how to position
BGAN against its competitors help to build a
solution to sell
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BGAN The Value Proposition program
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Agenda

• The Process
• Launch Propositions
• Customer Feedback
• Next Steps

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Value Proposition objectives

• Accelerate take-up of BGAN services through
• Understanding end-customer experience
• Developing solutions that address end-customer
  needs
• Ensure solutions and services are equally
  applicable to core and non-core sector
  organisations
• How
• Work with partners to interview end-users and
  ascertain business needs
• Developed a comprehensive beta test program to
  prove solutions and services are fit for
  purpose

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End-customer meetings
Distribution of interviews by Sector

• Conducted 50 end-customer meetings with
  partners across 8 sectors
• Initial focus Media, Military, Oil Gas and NGO
  (Aid organisations)
• Essential that we get our propositions right for
  our core sectors
• Core sector knowledge will help inform emerging
  sector opportunities based on end-customer
  profiling
• Q3 focus shifts to non-core organisations

Civil
Other, 2
Government, 4
Finance , 3
Media, 17
Construction, 3
Aid, 9
Energy, 5
Military, 19
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Overview of process
Phase 1
Phase 3
Phase 4
Phase 2
Understand segment requirements profile
Build functioning proposition
Test physical Proposition
Develop Value Proposition

• Sector analysis
• Create framework
• Quantitative research
• DP/ Manufacturer feedback
• Market opportunity
• Competitor analysis

• Trial
• Key customers selected
• Testing varied propositions
• Beta testing
• BGAN lab

• Technical scoping
• All aspects of operational delivery product,
  billing, SLAs, sales marketing collateral etc
• Alignment with DP / SP
• Assess proposition.

• VP Road-map
• End-user analysis
• Horizontal / sector / bespoke propositions
• Assess ability to tailor each segment
• DP/SP value add
• Questionnaire
• Guidelines

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Beta test criteria
I4 CoverageIOR AOR satellite footprints

• Geography - IOR Coverage
• Q3 2005 Beta activity under IOR footprint
• Technology Readiness
• Proven IP and CS solutions where BGAN might gain
  early foothold
• New solutions centred on BGAN
• Test across footprint
• Profile
• Early adopter
• Resource and commitment
• Teething pains

228 Spot-beams / 2 x 512kbps channels per beam
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End-to-end approach

• All activities are based on eight key building
  blocks
• Customer meetings
• Proposition development
• Beta testing

Network Connectivity IP Standard IP
Streaming ISDN Voice
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Agenda

• The Process
• Launch Propositions
• Customer Feedback
• Next Steps

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BGAN market position
Customer feedback indicated the following uses
for SatCom services
Major applications
Satellite Communication environment
Live Video
E-mail
Internet
Intranet
FTP
Telephony
Telemetry
Indicates non core BGAN areas
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Value proposition program 2 streams
Media, Military, Aid and Oil Gas
(Primary) Construction, Government Insurance
(Secondary)
Construction, Finance (Retail banking
Insurance), Power Energy, Manufacturing and
Professional Services
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Focus solutions at launch

• 1. Mobile Video / Audio
• a) Live
• IP (streaming)
• ISDN
• b) Store and Forward
• c) Voice
• 2. Single-user mobile office
• a) Broadband data
• b) Voice
• 3. Multi-user mobile office
• Broadband data
• Multiple PDP context
• Voice
• VoIP

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Applying solutions to core sectors
Notes 1. All government / military applications
require secure encryption
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Adapting solutions to emerging sectors
Notes 1. Device-to-device communications are a
key requirement within the finance sector 2.
Network back-up (disaster response bandwidth
on-demand) are key emerging requirements Not
all of the above will constitute launch
propositions
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Live Broadcast propositionMobile Video / Audio
solution
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Live Broadcast proposition Mobile Video / Audio
solution
3
Video SF IM/HTTP
Connectivity from DP to customer hub preserves
end-to-end QoS
Content Management server
HUB
1
BGAN Multi-User
CS Call
BGAN Device
RAN SGSN
Live Video VoIP
2
Head Office
Video Camera
Dedicated IP Connection (256Kbps) Live
Streaming Best Effort IP Connection (492Kbps)
Store Forward 4Kbps Circuit Switched Voice
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Live Broadcast propositionMobile Video / Audio
solution

• Benefits
• Portability Class 1 device (A4 size / 2Kg)
  provides functionality of 4GAN or small VSAT unit
• Performance Guaranteed data rates for
  prioritised traffic, 256Kbps
• Functionality multiple simultaneous sessions
  (voice call while streaming video and running
  applications via a standard class)

HNS 9201
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Mobile office / Field agent / Claims
processorSingle User Mobile Office
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Mobile office / Field agent / Claims processor -
Single User Mobile Office
Content Management server
HUB
1
BGAN Multi-User
CS Call
BGAN Device
RAN SGSN
2
Standard class connection
Head Office
Best Effort IP Connection (492Kbps) Store
Forward 4Kbps Circuit Switched Voice
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Mobile office / Field agent / Claims
processorSingle User Mobile Office

• Benefits
• Ease of use deployed, set-up and operational
  within minutes
• Portability Class 3 device (A5 size / 1Kg)
  supports both IP and circuit switched
  applications
• Functionality single device used globally

Nera device
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Rapid deployment, field operations proposition
Multi-User Mobile Office
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Rapid deployment, field operations proposition
Multi-User Mobile Office
Email, Internet, Intranet, FTP
2
Connectivity from DP to customer hub preserves
end-to-end QoS
Content Management server
HUB
Internet
1
Multi-user VoIP calls
BGAN Device
RAN SGSN
VoIP GateWay
PSTN
Head / Branch Office
Best Effort IP Connection (492kbps) Store
Forward Dedicated IP Connection (128Kbps)
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Rapid deployment, field operations proposition
Multi-User Mobile Office solution

• Benefits
• Multi-use Eleven users supported on a single
  device
• High speed up to half a megabit available
  across a single device
• Flexibility Enables multiple users to run
  streaming, standard class or VoIP sessions
  simultaneously
• Number of sessions only limited by 492kbps
  throughput of device

Thrane Thrane Explorer 500
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BGAN Key benefits
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Agenda

• The Process
• Launch Propositions
• Customer Feedback
• Next Steps

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Customer requirements

• Antennae
• Tracking (Vehicular)
• External
• Short term lease
• Pricing tools
• Streaming class reservation
• Voice options
• Multiple simultaneous calls
• Secure encrypted calls
• Device locking
• Block certain services

• Peripheral equipment
• PDA interface
• 256Kbps streaming
• Terminal bonding
• Channel muxing
• MMI reporting
• Clear referencing
• Remote terminal activation
• Alarm monitoring
• CCTV
• Establishing class of service for end user
• Remote diagnosis
• SCADA / ATM

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Feedback on strategic questions

• Can Inmarsat take a share of handheld MSS voice
  market with BGAN?
• Print media voice will be a nice add-on, but
  we will not get rid of our Thuraya handsets
• Print media voice on the move is a key
  requirement
• Print media voice capability of BGAN is a key
  benefit
• Implication BGAN can displace elements of MSS
  voice
• Can Inmarsat attack low-end VSAT market with
  BGAN?
• Media We currently swap to VSAT after 8 weeks
• Construction We will not deploy VSAT if
  project duration is less than six months
• Broadcast bonding two BGAN terminals will
  enable us to replace our VSAT trucks
• Implication Some indication that convenience is
  more important than price

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Agenda

• The Process
• Launch Propositions
• Customer Feedback
• Next Steps

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Key activity timeline
Q1/05
Q1/06
Activities
Q2/05
Q3/05
Q4/05
Q2/06
Customer meetings
1
Technical scoping
2
3
Proposition assessment
Build propositions
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Messaging
5
6
Beta test
Core sector
Non-Core sector
PM Proposition Manager
SM Solution Manager
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Next steps

• Commence testing activities September 05
• Protocol test / bench
• End-to-end test
• Beta test October 05
• Develop messaging September 05
• vertical sector messages
• collateral for launch
• Key sector end-customer testimonials November
  05
• New sector identification September 05
• Identify focus sectors
• Key account targeting
• VP meetings October 05

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BGAN Competition The Competitive Environment
for BGAN and Positioning for Success
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BGAN market space (1)

• Inmarsat has conducted an extensive programme of
  market intelligence since Q1 2004
• Total market for L-band voice services is
  estimated to be 500m with an installed base of
  around 500,000 annual ARPU of 1k.
• Total market for next-generation L-band services
  is predicted to be worth 800m a year by 2010
  with 50,000 installed units annual ARPU of
  16k. Source Northern Sky Research
• Total VSAT market estimated as 38bn in 2002 but
  less than 5 related to corporate communications.
  IP broadband via satellite is still a nascent
  market. Source Bain

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BGAN market space (2)

• Predicting the addressable market for BGAN is
  challenging
• Market is still emergent
• BGAN is a completely new product proposition
• Slow development to date of terrestrial
  high-speed mobile data market
• Inmarsat has concluded that BGAN will occupy a
  unique market position, with only small overlap
  with other technologies

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BGAN market space (3)
High
Portable HSD
VSAT
3G
Data Demand
BGAN
MSS
Low
Portability
High
Low
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BGAN market space (4)

• Portable high speed data
• Rapid deployment, highly moveable, stationary
  during use
• BGANs primary market
• Very limited competition within MSS
• Semi-fixed applications
• Transportable but only moved occasionally,
• VSAT services offering high data speeds (up to 4
  Mbps) with bulky, expensive equipment
• Possible for BGAN to compete in some
  circumstances

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BGAN market space (5)

• Fixed
• Never moves portability is therefore not a
  factor
• VSAT services offering high data speeds (up to
  30Mbps) with equipment costs either the same or
  lower that BGAN
• Possible for BGAN to compete in very limited
  circumstances
• Mobile
• Consumer and business voice and low speed data
  services
• High levels of competition from cellular and MSS
  handheld
• BGAN cannot compete directly as not truly mobile
• Voice traffic will be an upside from a primarily
  data sale

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BGAN market space (6)

• In same location for an extended period
• Campus
• gt1 week up to several months

• On the move/pause
• Nomad
• Up to one week in the same location

• Permanent installation
• Alternatives are unreliable, low bandwidth,
  expensive or slow to deploy

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BGAN competitionA top level view

• Portable HSD and semi-fixed
• MSS systems, e.g. Thuraya DSL
• Transportable VSAT
• Terrestrial systems, e.g. 3G and WiFi
• Mobile voice and fixed data
• MSS handheld systems
• GSM cellular systems
• Fixed VSAT

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BGAN vs. ThurayaDSL
Source Thuraya sales material 4/05
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BGAN Competitive positioning vs. MSS HSD
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BGAN Competitive positioning vs. MSS handheld
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BGAN Competitive positioning vs. GSM
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BGAN vs. transportable VSAT
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BGAN vs. transportable VSAT
Requires the successful launch of all three I-4
satellites, F3 to be determined in due course.
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BGAN vs. transportable VSAT
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BGAN Competitive positioning vs. transportable
VSAT
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BGAN Competitive positioning vs. 3G
Synergy as BGAN multi-user terminals will fill
gaps in 3G coverage
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Competitive positioning vs. WiFi
Synergy as BGAN multi-user terminals will support
WiFi
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BGAN Competitive positioning vs. fixed VSAT
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BGAN - market segment
Target Usage Segment
Motivation to buy BGAN

• Use BGAN functional advantage to gain market
  share with aggressive pricing options for data,
  to counter semi-fixed VSAT and competitive voice
  vs. other MSS to up-sell voice
• Maximise lease opportunities
• Attract voice only usage once terminal is
  purchased/deployed

New market opportunity Can compete Main market
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Inmarsats supplier level competitive advantages

• Market leader for 25 years with established
  customer base
• Recognised brand amongst core segments - global
  coverage, service reliability, GMDSS
• Portfolio to address varying needs
• Global channel presence
• Next generation satellites one successfully
  launched and second to be launched shortly fully
  funded
• Clear migration path to next generation,
  high-value services

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Your service level competitive factors

• Building loyalty with your SPs customers
  through service enrichments and attractive
  pricing points
• Understanding of your SP/customer needs
• Knowledge of which solution best fits
  SP/customers needs
• Before and after sales services
• Value-added services

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BGAN Unleashing The Power Of The Demonstration
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BGAN selling-demonstrationsTrain your
salespeople to be able to develop and deliver a
20 minute customised demonstration that shows the
customera) Something that matches the
customers own application needb) Highlights
your most relevant USPsc) How the value chain
can enhance their productivityd) How BGAN will
reduce their costs!!e) Something that
demonstrates how BGAN beats the competition
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BGAN PricingCreating The Best Packages to
Attract The Right Customers
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BGAN offers value for money not just commodity
units

• The feature richness of BGAN should always be
  sold over and above the actual cost of a minute
  or megabyte
• What is the value of flexibility? Having the
  ability to up move your remote office at short
  notice, without having to re-install connectivity
  at a new site with the project downtime this may
  cause is invaluable.
• Real time file transfers can mean real money to a
  company, minute 1, a file can be worth 100k,
  minute 3, 50k, minute 5 onwards 0

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BGAN pricing strategy - core positioning

• High-speed mobile data with voice
• Unique BGAN is a leader, not a follower
• A premium service
• Still largely a multi-niche play
• Need to move focus away from price to overall
  value

BGAN is a superior integrated product offering
based on reliability, performance, ubiquitous
coverage, security, portability and flexibility
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Voice service pricing

• Very competitive voice price
• Target end user price lt1 per-minute
• Good channel margins

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Voice
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Standard IP
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Premium IP
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ISDN
Link
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BGAN Packages What are they?

• Standard pricing model for Broadband data, both
  in fixed line and cellular industries with
  typically a minimum contract duration.
• Inclusive allowances of Standard IP and Voice for
  a fixed monthly subscription fee.
• Improved value for increased monthly
  subscription.

76
BGAN Packages Why have them?

• With high data speeds and increased traffic
  volumes, paying on a per MByte basis is not
  always a suitable pricing model.
• End users want fixed costs to avoid bill shock,
  as it becomes more difficult to predict usage
  volumes.
• Benefits to SPs
• Convert unpredictable usage based revenues to
  predictable subscription based revenues.
• Minimum contract duration ties users in, allowing
  opportunity to have an on-going relationship with
  users.
• Low data prices to change perception of Inmarsat
  being expensive to broaden market reach for BGAN.
• Increased margins as users usually purchase
  allowances that are larger than their
  requirements. Any usage outside allowance will be
  at a rate higher than the implied rate in the
  allowance.

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BGAN Packages Options for DPs SPs

• Use standard Inmarsat packages as building blocks
  to create new retail packages. Improves
  differentiation and helps to target different
  market and customer segments.
• Example
• Inmarsat Standard IP allowances are 20, 100, 750
  2,000MBs. SPs should fill in the gaps with
  own packages.
• Minimum duration subscription based pricing gives
  the opportunity to include a subsidy for
  terminals.
• Ability to create bespoke allowances for
  individual customers

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Package Options

• Reducing prices in bundles
• Increasing subscription
• Increased access to services

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Pricing Things You Should Know (1)

• There is a minimum charge for circuit switched
  voice, data and streaming data based on a minimum
  duration
• There is a minimum charge for standard IP data
  based on data volume
• These minimum charges will apply to each CDR
• If a single call or IP session straddles more
  than one CDR then the minimum charges may apply
  more than once to that session
• This will only be significant if the call length
  or data amount is not as great as the minimum
  call length or data volume charging thresholds.

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Pricing Things You Should Know (2)
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Regulatory

• Models
• Status Quo User obtains licence/visited country
  
• Service Provider or DP applies for licence in a
  country
• Global circulation of terminals
• Only Yemen forbid access to Inmarsat terminals
• Use can be subject to conditions which vary from
  country to country
• Info in regulatory database
• Support from Inmarsat to obtain terminal licences
• Enforcement currently light