Hughes - SPACEWAY™ Overview - Marcelo C. de Rezende

1. HUGHES PROPRIETARY
SPACEWAY
TM
Overview
May-2008

2. HUGHES PROPRIETARY
Favorable Industry Trends
Significant growth expected in the IP
VPN market
Hughes is a leading provider of IP VPNs
and managed networks
Differentiated value proposition –
combining the best of satellite and
terrestrial broadband
Industry recognition:
– 2007 “North American Retail
Market Penetration Leadership
Award” – Frost & Sullivan
– 2007 “North American Space &
Communications Company of the
Year” – Frost & Sullivan
– Ranked as one of North America’s
largest providers of managed
network services by the Yankee
Group, 2006
0
100
200
300
400
500
600
700
800
900
1,000
2006 2007 2008 2009 2010 2011
Thousands
IP VPN portsSource: Vertical Systems Group - ENS

3. HUGHES PROPRIETARY
Hughes Broadband Consumer
Broadband Internet access
service for those overlooked by
cable/DSL
More than 400,000 consumer
subs at end of 1Q08
Activating ~12,000 subs per
month with controlled marketing
expenditure*
Key business characteristics
– Great synergy with
enterprise
business on platform, space
segment, back office support
(thus sharing costs)
– Includes residential and
small business users
Broadband Internet access
service for those overlooked by
cable/DSL
More than 400,000 consumer
subs at end of 1Q08
Activating ~12,000 subs per
month with controlled marketing
expenditure*
Key business characteristics
– Great synergy with
enterprise
business on platform, space
segment, back office support
(thus sharing costs)
– Includes residential and
small business users
Consumer Density by ZIP Code
All 50 states and Canada
More than 26,000 ZIPs
Current Subscriber Base
Profitable
Generating positive cash since 2004
*(during first half of 2007)

4. HUGHES PROPRIETARY
Penetration of Households
%
%
%
%
%
%
0
10
20
30
40
50
60%
MiddleEast
andAfrica
LatinAmerica Eastern
Europe
Asia/Pacific
andJapan
Western
Europe
North
America
2005
2010
Worldwide Penetration, 2005
Worldwide Penetration, 2010
Source:Gartner Dataquest (November2006)
Broadband Penetration of Households
by Region, 2005 and 2010
Primary Market Drivers
Dial up can’t handle
rich web content
Home workers and
professional users
requiring internet
access for business
First time internet
users by-passing dial
up

5. HUGHES PROPRIETARY
SPACEWAY Overview
First full mesh commercial satellite system
– 10 Gigabits/second capacity
– Core IP VPN service plans and Bandwidth-on-demand
First full mesh commercial satellite system
– 10 Gigabits/second capacity
– Core IP VPN service plans and Bandwidth-on-demand
Uplink speeds
– 2 Mbps
– N x 16 Mbps
Downlink carrier
speeds:
– 440 Mbps
On-board packet
replicator
Uplink speeds
– 2 Mbps
– N x 16 Mbps
Downlink carrier
speeds:
– 440 Mbps
On-board packet
replicator
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Satellite
Flexible Capacity
Allocation
Base Capabilities
Key Attributes

6. HUGHES PROPRIETARY
The Role of Satellite in Today’s Broadband World
MPLS:
– Replacing frame relay
– Pushed by telcos as they migrate to IP
infrastructure
– QOS, Mesh, typically fractional T1 access
– Relatively expensive
DSL
– Coverage varies between 50% and 85% of
enterprise locations
– Performance dependent on location
– No QoS/SLAs
– Needs VPN for networking
Cable
– More limited coverage than DSL
– No QoS/SLAs
WiMax
– Underdeployed
– Will compete primarily with DSL
Performance:
– High Throughputs (2Mbps+)
SLAs:
– Full managed network
– Performance and network SLAs
MPLS Like QoS
– Full Mesh small dish to small dish
– Classifier to allow service differentiation
– Multiple service plans from a single terminal
– Bandwidth on demand capability and billing
– Low jitter services
Roles:
– Primary networking:
▪ Full mesh with additional service plan overlays
and on demand bandwidth
▪ Ideal for small networks as well as large
– MPLS network integration
▪ Integrates with MPLS backbone
▪ More bandwidth and availability than typical
MPLS network (using HAN configuration)
▪ Lower cost than MPLS
▪ Additional service overlay (e.g. internet
access/teleconferencing)
– Backup networking
▪ Overlay of terrestrial network infrastructure
with high speed and on demand bandwidth
▪ High capacity trunking and back up
Terrestrial Broadband Spaceway

7. HUGHES PROPRIETARY
SPACEWAY Service Capabilities
Data
Ctr
NOC
Data
Ctr
NOC
Normal Priority Data
High Priority Data
Constant Rate
Low Vol. Low Latency
IP/MPLS/
Internet
Current Systems
Spaceway System
High data rates:
– 512 kbps, 2 Mbps, 16 Mbps and nx16 Mbps upstream
– 440 Mbps downstream
Flexible connectivity:
– Full-mesh or star topologies
– Broadcast and multicast
Small dishes
High capacity:
– Each satellite supports 10 Gbps, equivalent to 6,500 T1
SPACEWAY Highlights:

8. HUGHES PROPRIETARY
SPACEWAY System Summary
Uplink:
29.5-30.0 GHz
Downlink:
19.7-20.2 GHz
512 Kbps, 2.048 Mbps or 16.384
Mbps burst rate
225 demod capacity @ 51 Mbps
Total Raw Capacity = 11.47 GPS
FDMA TDMA Uplink
TDM Downlink
24 hopping beams with one
carrier each @ 440 Mbps burst
rate
Total Raw Capacity = 10.44 GPS
• Switches uplink packets onto
destination downlink beams
• Dynamically assigns uplink
bandwidth launch
• Fully configurable in-orbit
Payload
Ka Band

9. HUGHES PROPRIETARY
SPACEWAY Switching
Uplink
Downlink
Approx. 200 miles
Characteristics:
– 112 uplink cells with a
transmission throughput of 1-8
x 50 Mbps.
– 7 x 112 downlink micro-cells
with up to 24 simultaneous
transmissions at 440 Mbps
– Cell diameter is about 200
miles.
SPACEWAY packets received on one
Uplink Cell can be transmitted to
any other Downlink Cell

10. HUGHES PROPRIETARY
SPACEWAY Based VPN Services
VPN a
VPN n
Customer A
Data Center
2 Mbps
Internet
High Priority
Intranet traffic
Normal Priority
Internet traffic
Constant Bit Rate
Video Traffic
Mechanisms to create virtual private networks within SPACEWAY.
Four end-end classes of service to support multiple traffic classes.
Hughes’ Optimized VPN and High Availability VPNs strengthened with
SPACEWAY’s capabilities.
Enterprises can subscribe to networking service and add optional
services, such as Internet access.
Service delivery systems for scalable deployment of small networks.
Mechanisms to create virtual private networks within SPACEWAY.
Four end-end classes of service to support multiple traffic classes.
Hughes’ Optimized VPN and High Availability VPNs strengthened with
SPACEWAY’s capabilities.
Enterprises can subscribe to networking service and add optional
services, such as Internet access.
Service delivery systems for scalable deployment of small networks.
Landline
Broadband
MPLS

11. HUGHES PROPRIETARY
SPACEWAY Classes of Service
Unspecified
Bit Rate
Available Bit
Rate
Expedited,
low rate
Constant Rate
or Variable
Rate-Real
Time
Service
Type
Best effort; default class; uses
bandwidth only as required
Spaceway low
priority volume
on-demand
services
Email, FTP, Bulk
Transfer
4
Uses bandwidth only as
required; more stringent latency
characteristics than best effort
Spaceway high
priority volume
on-demand
services
Time sensitive or
mission critical
bursty applications
3
Provides a lower latency, policed
against a low offered rate
Contention
Channels
Point of Sale, Real-
time database
queries
2
Provides a guaranteed rate (CR)
or guaranteed minimum rate
(VR) at a minimum latency and
packet loss rate
Spaceway
Connections
and Rate Uplink
Packet Service
Videoconferencing1
DescriptionSpaceway
Services
Used
ExamplesPriority
(Class of
Service)

12. HUGHES PROPRIETARY
SPACEWAY Enterprise Services
Enterprise grade Internet access
service. Service plans up to 2 Mbps/5
Mbps.
Any-any connection oriented service
up to 2 Mbps, using SPACEWAY’s
highest COS. Billing plans to support
on-demand/occasional use
functionality.
VPN Services, with support for star
and mesh topologies. Data rates up to
2 Mbps for small sites, and 16 Mbps
for large sites.
Billing plans to support primary
networking as well as access continuity
applications.
Description
DSL, cable
Private Lines, PRI
Frame Relay,
IP-VPN
Terrestrial
Service
Business
Internet
Access
Constant Rate
Networking
Services
Service
Services can be layered to offer more flexibility

13. HUGHES PROPRIETARY
SPACEWAY CPE Family
3.5m
tracking
Up to nX50
Mbps
nX16 MbpsLarge sites, data centersHG900
Branch offices, small
business
Residential/telecommuter
Usage
98cm,
1.2m,
1.8m
Up to 30 Mbps2 MbpsHN9800
74cmUp to 30 Mbps512kbpsHN9000
AntennaDownlinkUplinkModel

14. HUGHES PROPRIETARY
HN9800 Platform
One 10/100 Ethernet LAN port
– 2nd port support (future)
Connectivity
– Mesh (any-any) support
– CoS Support
– Remote site and gateway configurations
Performance Enhancements
– Data Prioritization
– Integrated TCP Acceleration
– Web Page Acceleration
– Data Compression
– SSL Acceleration (future)
Router Functionality
– DHCP Server/Relay
– Network Address Translation
– RIP v1, RIP v2
Integrated Dial Backup Modem
Integrated Data Encryption
Key Features

15. HUGHES PROPRIETARY
Obrigado!
Marcelo C. de Rezende
marketing@hughes.com.br
11 3818-7500