REGIONAL DEVELOPMENT FORUM FOR AFRICA KIGALI, RWANDA

1. REGIONAL DEVELOPMENT FORUM FOR AFRICAKIGALI, RWANDA Connecting via Satellite In Africa CécilAmeil, SES Regulatory Affairs 1

2. SES – Who we are • A world-leading telecommunications satellite operator • Premier provider of transmission capacity, related platforms and services worldwide for • media • enterprise and telcos • government and institutions • Headquartered in Luxembourg, with 1,200 staff worldwide • Listed on Euronext Paris and the Luxembourg Stock Exchange

3. Africa is a key focus for SESIntegrated solutions that add value today • SES provides: • Video Distribution – supporting analogue to digital transition and ASO targets, feeding DTT towers or direct to the home; • Maritime and Off-shore communication services – significant existing coverage of the African waters with expansions planned in the short to medium term • Corporate Networks – supplementing the regions terrestrial services, to drive 100% connectivity as well supporting multiple applications; • Broadband Internet Access – helping to bridge the “digital divide” further, SES hosting alleviates the capex burden to ISPs; • Redundancy for Undersea Cables – providing low cost contingency services to keep the region connected when terrestrial systems fail; • IP transit – low cost transit services to connect African regions directly to international data centres and hubs. 3 3

4. Several satellite options over Africa SES-4 Ku-band coverage ASTRA 2B West African Ku-band coverage ASTRA-4A Sub Saharan Ku-band coverage SES-5 C-band coverage (Q2 2012)

5. Broadband services

6. The answer to the Digital Divide New generation bi-directional satellite broadband: Proven - the largest European satellite-based broadband network with over 80,000 end users connected (SBBS / A2C branding) Smaller, quicker (to install) & cheaper than traditional VSATs. 100% coverage within the satellite fleet - enables high-speed Internet access for households and businesses regardless of geographical location Can help to close the ‘Digital Divide’ in emerging regions Designed to complement terrestrial broadband services, especially in those areas where DSL or fibre services may be limited or non-existent. 6

7. SES Broadband in 31 African countries • High Speed Access : • Downlink speeds of up to 10 Mbit / s • Download speeds of up to 360 Kbit / s • Voice over IP (VOIP) Television Access

8. Show Case "Internet Kiosk" in Africa • Purpose: to bring internet access to the otherwise remote communities. • Many African communities have little or no access to basic services, due to: • geographic and social isolation; • 90% live without electricity; and • 98% have no internet access. Other social services, like education health, community development etc. are not available as a result. Solution: The RIK is a self contained solution developed by Intersat Africa, powered by SES Broadband Services. 8

9. SatElections The SatElections Project is hosted within European Space Agency’s and executed to support the following applications: • eTraining element to support electoral cycles in SSA • Rural radio element to support sustainable agricultural development • eShools element to support internet access in schools • To be initiated in 2012 in Western African countries + Burundi and South Africa • SES provides Broadband connectivity and Multicast content delivery to provide access to internet. • Transmission of e-Training content for the Electoral Committee and e-Learning content for the Capacity Buildings is accessible to the local communities. 9

10. Broadcast services

11. Satellite:The digital infrastructure of choice  • Digital satellite is: • Quick to deploy: shortening time of migration for broadcaster and end-consumer. • Cost effective: less CAPEX for infrastructure, lower costs per channel. • Available everywhere: high quality to everyone at the same time.   11

12. Digital Switchover 12 • Africa is committed to the ITU date for switchover from analog to digital on June 17, 2015. • Digital terrestrial networks are beginning to be implemented in some countries. • How will African TV households meet this ambitious target? • How SES addresses the digital switchover • SES satellites are already used in Africa to extend the reach of broadcasters. • With the launch of more powerful satellites, even the most remote homes in Africa can be connected and enjoy the benefits of digitalization using Direct-to-Home TV reception via satellite. • Satellites can complement already existing Digital Terrestrial TV (DTT) networks and accelerate the switchover.

13. Switchover – Benefits for Africa • What happened in Europe: • Over-invested into terrestrial infrastructure, high population coverage, but limited reach. Satellite pioneered digital TV. • Long migration process, typically 7 years from starting DTT implementation to completion. Subsidies often limited to DTT equipment and STB. • Private SD and HD channel offer remains limited on DTT. In many areas only public channels are available. • ‘Digital Dividend’ revenues are very attractive, but can be realised only after the analogue switch-off. • What could this mean: • Optimisation of infrastructure mix –reduce DTT network costs, using satellite DTH for large parts of population. • The deadline for all ITU region 1 countries is in 3 years! Reach needs to be extended rapidly, not only in terrestrial coverage areas. • Satellite can carry a larger number of SD and HD channels to the entire population, while DTT has constraints. • African governments could consider financing the deployment of digital STB’s through the digital dividend – independently of technology. 13

14. Regulatory Hurdles

15. Issues • Limited number of licenses • High licensing fees for spectrum use (e.g. Nigeria, Gabon) or terminals (Burkina-Faso, Rwanda) • No harmonized regional approach, e.g. at Eastern African Community (EAC) level • High import duties / type approvals on equipment • Limited access to public funds e.g. to favor rural development despite existence of Universal Service Funds (USF) • License fees on VSAT operations charged in East African countries in Q1 2011: More typical example: no spectrum fee in satellite dedicated frequencies. 0 fee for small, standard antennas of the A2C type. 15

16. Proposals • Licensing and regulatory fees should not exceed the average resource hours required to process an application and should be reasonably low to allow local ISPs to develop a viable business. • When excessive fees are sought from service providers, these fees are passed-on to our customers and, ultimately, to end-consumers. • Such an approach raises costs of services, impedes competition and may limit service offerings. • In addition, we recommend use of licensing and regulatory fees to cover administrative costs and help promote the independence of the regulator by freeing the agency from dependence on the government’s general budgetary process. Rationale for licensing: to cover regulatory administrative costs associated with processing license and permit other activities associated with regulating licensees. Not to be used as a source of profit for the government. Experience in Africa: overall costs between € 750 and € 1500. For example in Europe: overall cost is € 250-300 and 1st level, basic BB subscription starts at €29/month. 16

17. Thank you

18. ANNEXES

19. Hybrid Service by Satellite Cheaper than A2C (~ 100 € terminal) but less performing (QoS influenced by terrestrial network) Hybrid modem (Sat + mobile) Requires local cellular network Internet Supports legacy TV receivers

20. Who is O3b? Connecting the other three billion people O3b is building a next- generation satellite constellationthat will be capable of enabling operators to offer better, faster, and more affordable connectivity to their customers in a profitable and therefore sustainable way. This is targeting the emerging markets of the world. The first satellites are to be launched in 2013 and the service to be operational the same year. SES is the main (45%) shareholder.

21. Service Coverage Map Service Coverage Map

22. O3b IP Trunking • Full Beam and QuickSTART are both Carrier Class Services • 216MHz/216MHz Transponder • <130 ms round trip latency • 99.5% link availability Forward: 216 MHz O3b Gateway Return: 216 MHz Tier 1 Modem Customer Terminal

23. O3b Mobile Backhaul Forward: 216 MHz O3b Gateway Return: 216 MHz SGSN/GGSN Tier 1 Modem BSC Abis Optimizer MSC Tier 1 Terminal atBSC Site Remote Terminals in Customer Beam