2. Agenda
• Company Overview
• Project Overview
– Technology Involved
– Market Analysis
– SWOT Analysis
• Financial Analysis
• Challenges
• Recommendation

3. Company Overview
• Broadband Data Communication Service
Provider
• Founded in 1994 by Craig McCaw
• Major Stake Holders

5. Project Overview
“Bridge Digital Divide”
• Technology Involved
• Technology Advantage
• Market Analysis
– Current Market
– Customer Base
– Competitor Analysis

6. Technology Involved
• Constellation of 288 LEO satellites for
providing Data Communication Service

7. Technological Advantage

8. Market Analysis
– Current Market
– Customer Base
– Competitor Analysis

9. Current Market @ 1million/yr
•Growing
•Reach via ISP(whole sale
•Growing @ 0.5million/yr
• Internet Access Market capacity)
•Reach directly
•Use •Growing @ 6.6%/yr
T1 Services
•Use T1 population in metro
•90% Services
•Need speedDialup
•Use DSL, & reliable
source speed @ low cost
•Need
•Can charge premium
•Can Resale Capacity
Values in million
Data of 2003 (rapid change in 5 yrs)

10. • 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)

11. • 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)

12. • 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)

13. •Dialup consumption↓
price constant
•DSL, T1, Cable price↓
consumption↑

14. Customer Base

15. Customer Base

16. 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

17. SWOT Analysis

18. Financial Analysis

19. •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

20. 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

21. Thank You