Agenda

• Company Overview
• Project Overview
– Technology Involved
– Market Analysis
– SWOT Analysis
• Financial Analysis
• Challenges
• Recommendation
 Company Overview
• Broadband Data Communication Service
Provider
• Founded in 1994 by Craig McCaw
• Major Stake Holders
 Project Overview
“Bridge Digital Divide”

• Technology Involved
• Technology Advantage
• Market Analysis
– Current Market
– Customer Base
– Competitor Analysis
 Technology Involved
• Constellation of 288 LEO satellites for
providing Data Communication Service
Technological Advantage
 Market Analysis
– Current Market
– Customer Base
– Competitor Analysis
 Current Market
•Growing @ 1million/yr
•Reach via ISP(whole sale
•Growing @ 0.5million/yr
• Internet Access Market capacity)
•Reach
•Use •T1
directly
Growing
Services@ 6.6%/yr
•Use T1 Services
•90% population in metro
•Need
•Usespeed & reliable
DSL, Dialup
source
•Need speed @ low cost
•Can
•Cancharge premium
Resale Capacity

Values in million

Data of 2003 (rapid change in 5 yrs)

 • Access Methods - Enterprise
•M/S drop by 23%
•Requirement of speed
•Willing to pay more

Values in %

Data of 2003 (rapid change in 5 yrs)

 • Access Methods – Home Business
•Dial up M/S drop by 46%
•High speed technologies acceptance
•High Speed @ Low Cost
•Cable M/S boosted by 33%
•DSL came & acquired 12% market

Values in %

Data of 2003 (rapid change in 5 yrs)

 • Access Methods – Consumer
•Dial up M/S drop by 36%
•High Speed @ Low Cost
•Cable M/S boosted by 24%
•DSL came & acquired 10% market
•High Cost so limited consumers
•Huge amount of untapped market segment

Values in %

Data of 2003 (rapid change in 5 yrs)

•Dialup consumption↓
price constant
•DSL, T1, Cable price↓
consumption↑
Customer Base
Customer Base
 Competitor Analysis

Per Unit Cost for launch

Sky Bridge $12.5m
Teledesic $8.68m
•80 LEO @ 930 miles •Low Speed •Low Speed
•Complex Ground •Less Reliable •High Cost
Segment •Limited Coverage •Entry Barriers(Capital &
•Gateway System (slow •High Cost Regulations)
& Expensive)
•Regulations &
Approvals not received
•Launch cost higher
SWOT Analysis
Financial Analysis
 •Failure of Iridium & other narrow
spectrum
Challenges •Telecomm Stock price LOW
•High Risk

•$1.5bn present
•Different Countries
•$7.5bn promised
Different Costs •2 International
•Language & Currency Agencies
Issues •200 National Agencies
 Recommendations
• Appoint a technology partner
• Deal should be auctioned where more than 1
partner
• Appoint local partners to get local radio
spectrum licence
• Look for less traditional investors
Thank You