Industry Association Roundtable

1. Industry Association Roundtable National Spectrum Managers AssociationMay 16, 2006 Carlos M. Nalda for the Satellite Industry Association

2. Satellite Industry Association • The SIA a U.S.-based trade association providing worldwide representation of the leading satellite operators, service providers, manufacturers, launch services providers, remote sensing operators, and ground equipment suppliers. • The SIA is the unified voice of the U.S. satellite industry on policy, regulatory, and legislative  issues affecting the satellite business. Mission “To educate the public, the press, policy and lawmakers throughout the world of the critical role satellites play in our everyday lives”

3. Satellite Industry Overview • Satellite Services • DBS/DARS • Fixed Satellite Services • Voice, Video, Data • VSATs • Remote Sensing • Transponder Leasing • Mobile Satellite Services • Mobile Telephony • Data/Messaging • Satellite Manufacturing • Satellite Manufacturing • Component and Subsystem Manufacturing • Ground Equipment • Mobile Terminals • Gateways • Control Stations • VSATs • DBS Dishes • Handheld Phones • DARS Equipment • Launch Industry • Launch Services • Vehicle Manufacturing • Component and Subsystem Manufacturing

4. $38.0B $49.1B $55.0B $60.4B $73.1B $78.6B $86.1B $91.1B $97.2B World Satellite Industry Revenues By Sector

5. $60.9 $56.0 $49.1 $46.5 $38.6 $29.7 $ 24.4 $21.1 $15.8 World Satellite Services Revenue FSS=VSAT services, remote sensing, and transponder leasing MSS=Mobile telephone and mobile data DBS/DARS=DTH TV, DARS, and Broadband

6. Satellite Services & Applications • Voice/Video/Data Communications • Rural Telephony • News Gathering/Distribution • Internet Trunking • Corporate VSAT Networks • Tele-Medicine • Distance-Learning • Mobile Telephony • Videoconferencing • Business Television • Broadcast and Cable Relay • VOIP & Multimedia over IP • GPS/Navigation • Position Location • Timing • Search and Rescue • Mapping • Fleet Management • Security & Database Access • Emergency Services • Remote Sensing • Pipeline Monitoring • Infrastructure Planning • Forest Fire Prevention • Urban Planning • Flood and Storm watches • Air Pollution Management • Geo-spatial Services • Direct-To-Consumer • Broadband IP • DTH/DBS Television • Digital Audio Radio • Interactive Entertainment & Games • Video & Data to handhelds

7. Satellites are Critical To The Economy Eat Out PumpGas WatchTV Shop Stay at Hotels Buy & Service Automobile Transact Financially

8. Critical to Flow of Information • Newsgathering – First choicefor live coverage, providinghigh-bandwidth video links from remote locations to capture “breaking news” • Program Delivery – National broadcasts from four major television networks and more than 180 cable channels are relayed to over 10,000 local cable systems via satellite

9. Critical to Homeland Security • Federal Government utilize satellites for backup communications and diversified access alternatives to their federal facilities • Over 80% of Federal agencies rely on satellites for communications, such as: • Federal Emergency Management Agency (FEMA) uses mobile “satellite on wheels” trucks, fixed voice terminals, and mobile satellite phones for emergencies • Coast Guard uses satellites for ship-to-ship and ship-to-shore communications • Customs and Border Protection uses satellites for border monitoring and mobile voice • Satellites provide GPS Navigation signals for: • Public Safety Dispatch, Search & Rescue, etc. • Air Traffic Control and Transportation/Shipment tracking • Telecommunications – primary timing source, E-911 enabler • Satellites provide commercial remote sensing imagery for: • Homeland Security & Asset Protection • Transportation & Infrastructure planning • Natural Resource Assessment • Disaster Relief, etc. • Satellites support network reconstitution, improving infrastructure resiliency with media diversity • Satellites support economic continuity • Industries such as finance/banking, oil, gas, communications and retail rely on satellites

10. Critical To National Security and Defense • 80% of satellite communications used for Operation Iraqi Freedom were provided by the private sector • To meet its near-to-midterm requirements, DOD must continue to use commercial SATCOM • Strategic and in-theater communications networks • New services such as Comm-on-the-Move provide real-time, operational communications capabilities

11. Critical To Rural America Satellites are often the only viable communications option for Rural America

12. Emerging Services/Applications Broadband Connectivity to Homes/Offices • Hughes Network Systems – Direcway / Spaceway • Americom-2-Home • WildBlue Mobile Broadband Services “Comm-on-the-Move” • In-motion: Transmit and Receive on-the-go • Multi-Mb inbound to vehicle, up to 500kbs+ out • Valuable for Network Centric Operations Consumer Focused Satellite Services • Ancillary Terrestrial Component (ATC) • Satellite Radio - DARS Broadband Connectivity to Aircraft • Forward link: 5 Mbps • Return link: 128 - 512 Kbps • E-mail/Internet access

13. Satellite Industry Issues • Spectrum Fees for Satellites • Broadband Mobile-Satellite Services • Earth Stations Onboard Vessels (“ESVs”) • Aeronautical Mobile-Satellite Service (“AMSS”) • LMSS and COTM • Inmarsat BGAN • ITS-DSRC in the 5.9 GHz Band • Ancillary Terrestrial Component (“ATC”) • 2 GHz MSS Spectrum

14. Spectrum Fees for Satellites • Auctions are generally inappropriate for satellite services • Spectrum fees are tax on un-auctioned spectrum users and customers • Satellite operators already pay substantial fees: • Application fees, ITU cost recovery fees, annual regulatory fees, etc. • Spectrum fees will not promote spectrum efficiency • Continued advances in satellite and receiver technology have allowed satellites to substantially increase capacity • Fees discourage technological innovation by increasing costs • Incentives exist to put spectrum to highest and best use • Spectrum fees could have disastrous consequences globally, i.e., “Domino Effect” • Spectrum fees unduly burden rural and remote users, increase cost to consumers generally and will delay/discourage new services • Fees for un-auctioned spectrum should only be tied to reimbursement of regulatory and/or administrative costs

15. Broadband Mobile-Satellite Services • Earth Stations Onboard Vessels (“ESVs”) • C-band and Ku-band systems • Pending Petition for Reconsideration • Aeronautical Mobile-Satellite Service (“AMSS”) • Service rules proceeding pending • Licenses and applications • LMSS and Comm-on-the-Move • Commercial and military applications • Inmarsat BGAN

16. 5.9 GHz Band • Dedicated Short Range Communications (“DSRC”) operations in the 5850-5925 MHz Band • Intelligent Transportation Society of America (“ITS America”), American Association of State Highway and Transportation Officials (“AASHTO”) and SIA sponsoring a cooperative effort to develop a sharing regime • Issues • DSRC/FSS Earth Station Spectrum Sharing Protocol • Examination of the potential for interference from aggregate DSRC transmissions in the 5.9 GHz Band into co-frequency FSS space stations receivers • Examination of adjacent band interference issues

17. Ancillary Terrestrial Component (“ATC”) • FCC Rule Section 25.149 permits L-band, Big LEO and 2 GHz licensees to provide ATC services subject to certain conditions; gating criteria adopted: • Must be integrated with MSS service and may not be provide prior to MSS service • Geographic coverage requirements for MSS service must be satisfied • Replacement satellites required • Equipment certification requirements for handsets • Existing ATC Licensees • MSV licensed in November 2004 to provide ATC services using next-generation GSO satellite • Globalstar licensed in January 2006 to provide ATC services using existing NGSO system • Benefits of ATC • Enhance public safety • Ensure spectrum efficiency • Improve MSS coverage • Reduce costs of providing MSS service • Enhance competition in MSS markets

18. 2 GHz MSS Spectrum Background • 2 GHz MSS allocation approved at WRC-95 • In 1997, FCC allocates 2x 35 MHz of spectrum for MSS at 1990-2025 MHz and 2165-2200 MHz; nine MSS application filed • In 2001, 2 GHz MSS licenses granted to eight licensees • In 2003, FCC cancels three 2 GHz licenses and reallocates 2x 15 MHz of spectrum for terrestrial use, leaving 2x 20 MHz of MSS spectrum • In 2005, after 2 GHz license surrenders, 2 licensees remain: TMI/ Terrastar and ICO, with potential access to all 2 GHz MSS spectrum Status • Current licensee access to all available 2 GHz MSS spectrum challenged by Inmarsat and Globalstar • CTIA and T-Mobile filed comments “supporting” the challenge but suggesting re-allocation to terrestrial use • Remaining 2 GHz MSS spectrum must be preserved

19. Thank you. Carlos M. Nalda Mintz Levin Cohn Ferris Glovsky and Popeo PC 202-434-7333 cmnalda@mintz.com