EUTELSAT SATELLITE SOLUTIONS FOCUS ON BALTICS. Riga, August 2015
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1 EUTELSAT SATELLITE SOLUTIONS FOCUS ON BALTICS Riga, August 2015
2 AGENDA Who we are FOCUS on Baltics : Market research - our findings Upcoming Satellite : Eutelsat 9B Why choose 9 E orbital position? SMART solutions for Telcos 3
3 A LEADING GLOBAL SATELLITE COMPANY Experience: over 30 years of satellite operations Global coverage: 37 satellites from 117 West to 172 East Continued investment: 7 further satellites to launch Core broadcasting infrastructure: 5,800 TV channels, over 274 million homes Balanced service portfolio: growing data, broadband and government markets Global presence, local knowledge, technical excellence, innovation: assured by 1,000 company experts in Europe, Africa, Asia, the Americas Full-year revenues: 1.4 billion 4
4 DELIVERING GLOBAL COVERAGE Unique range of C, Ku and Ka-band resources 5
5 OUR PORTFOLIO OF SERVICES IP backbone Mobile backhaul Corporate networks Disaster relief Maritime connectivity In-flight broadband SNG Play-out TV headends DTH DTT Data/IP Mobility Video 6
6 BALANCED SERVICE PORTFOLIO 63% Video 23% 14% Government Services Data & Broadband At 30 June
7 FIRST IN BROADCASTING First Satellite TV in Europe First DVB Transmissions First DVB platforms First HD channels First Ultra HD (4k) demos 8
8 VIDEO: A STRONG AND GROWING CORE BUSINESS Broadcasting over 40 anchor pay-tv platforms in Europe, Russia, Turkey, Middle East, Africa, Latin America 274 million homes: Europe, North Africa, Middle East HD acceleration: 11% of channels broadcast New satellites for high-growth video markets: CEE & Russia, Middle East, Africa, Latin America 9
9 VIDEO: A DYNAMIC CORE MARKET Key partner of broadcasters, pay-tv platforms, service providers 10
10 INVESTMENT PROGRAMME FOR EUROPE: SECURING EXISTING BUSINESS, FUELING GROWTH Coverage Launch Capacity EUTELSAT 9B 9 East Europe Q Ku 11
11 AGENDA Who we are FOCUS on Baltics : Market research - our findings Upcoming Satellite : Eutelsat 9B Why choose 9 E orbital position? SMART solutions for Telcos 12
12 EXECUTIVE SUMMARY Cable Satellite IPTV Satellite PAY Satellite FTA EUTELSAT Fleet HDTV UHD Satellite potential Cable reception is the most popular TV reception mode in Baltics, accounting for 45% of total TVHHs in Analogue installed base still held the majority of cable reception Satellite is serving 13% of TV homes (321 thousands TVHHs), but audience grew by 46% between 2005 and 2014 Strong IPTV development lead to a 19% market share Satellite pay-tv accounts for 55% of the satellite installed base and drives growth (+420% in 9 years), accounting for 177 thousands TV homes in % or 144 thousands of satellite homes receive a free-to-air signal. Eutelsat serves the Baltics via three DTH hot spots: 13 E, 9 E and 36 E. Combined satellite reach accounts for 178 thousands TV homes while together with indirect reach (1.2 million TV homes or 75% of the cable and IPTV markets) sums up to a total technical reach of 1.4 million TV homes. On average, 30% of the respondents are equipped with an HDTV set and 16% of non equipped homes declare purchasing intention within the next 12 months. Out of 806 thousands households owning an HD screen, 28% subscribed to an HD offer; 13% of non-subscribed homes intend to subscribe within the next 12 months Overall 64% of respondents in Baltics are aware of UHD and/or have seen a demo 5-8 % of non-dth homes intend to buy a satellite dish within the next 12 months 13
13 BALTICS TV HOMES: DECREASING PERIMETER TVHH CAGR -2% While the number of TV homes was stable in Estonia, Latvia and Lithuania TV homes number decreased between 2005 and 2014 due to continued emigration Growth rate -7.5% Thousands TV households Estonia Latvia Lithuania TVHHs across three countries in
14 TV RECEPTION MODES % 80% 17% 17% 30% 23% 20% 60% 32% 12% 19% 40% 39% 49% 46% 45% 20% 0% 12% 15% 11% 12% Estonia Latvia Lithuania BALTICS average DTH/SMATV CABLE IPTV DTT Thousands TV households Note: With the exception of DTT, all other TV reception modes (Satellite, Cable, IPTV) are not to be considered exclusive 15
15 DTH TV RECEPTION SPLIT PER ORBITAL POSITION OVERVIEW Astra 5 E leads in terms of reach as a single orbital slot Three EUTELSAT hot spots reach 178 homes collectively Thousand TV households Sirius Astra 5 E EUTELSAT HB 13 E EUTELSAT 36 E SES Astra 19 E EUTELSAT 9A 9 E 16
16 AGENDA Who we are FOCUS on Baltics : Market research - our findings Upcoming Satellite : Eutelsat 9B Why choose 9 E orbital position? SMART solutions for Telcos 17
17 EUTELSAT 9B Eutelsat 9A will be replaced by Eutelsat 9B which is expected to be launched in Q Includes a specific coverage to address the Baltics with up to 10 transponders. The main technical characteristics of Eutelsat 9B are the following: Orbital location : 9 East Launch date : expected in Q Manufacturer : Astrium Transponder size : 33 MHz in Ku band (BSS) 18
18 EUTELSAT-9B Eutelsat 9B Downlink Coverage 19
19 EUTELSAT-9B Clear Sky Link margin for 60cm reception Availability for 60cm reception 20
20 AGENDA Who we are FOCUS on Baltics : Market research - our findings Upcoming Satellite : Eutelsat 9B Why choose 9 E orbital position? SMART solutions for Telcos 21
21 WHY 9 E The 9 E orbital slot is ideal for the Baltics: Protected BSS frequencies Possibility to use Clipsat with HOTBIRD Possibility to use Clipsat with E Possibility with a single antenna to have broadband access through KASAT Possibility to Offer 3Play Services 22
22 WHY 9 E (CLIPSAT) Use of Clipsat enable to receive a satellite which is at 4 orbital spacing from 9 E HotBird at 13 E SES-4A/5 at 4.9 E Advantages Existing antenna pointed towards 4.9 E/13 E can receive content from 9 E by adding Clipsat to existing LNB Any new antenna that will be pointed at 9 E can receive existing content from 4.8 E/13 E without the need to retransmit those channels 23
23 FOCUS ON EUTELSAT 9 E IN THE THREE COUNTRIES Figures in 000 Total TVHHs % Remarks IPTV Cable Satellite 59 59% EUTELSAT 9 E serves several cable and IPTV operators in the Baltics, with an indirect combined reach of 87 thousands homes 13 13% Source: Eutelsat cable study
24 EUTELSAT 9A CHANNEL PROGRESSION # of channels 343 FTA vs PAY % 82% PAY FTA Sept Sept Sept Sept DVB / MPEG breakdown 71 SD vs HD 75 22% DVB-S2/MPEG DVB-S2/MPEG DVB-S/MPEG DVB-S/MPEG HD SD Source: Lyngsat Sept Sept Sept Sept
25 AGENDA Who we are FOCUS on Baltics : Market research - our findings Upcoming Satellite : Eutelsat 9B Why choose 9 E orbital position? SMART solutions for Telcos 26
26 TOOWAY Broadband for everyone everywhere A true always-on service comparable to DSL Up to 22 Mb/s downstream - 6Mb/s upstream Full triple-play, plus DTH TV reception from 9 Easy operation and installation Easy-to-install and as accessible as satellite television Plug and play 27
27 TRIPLE-PLAY POSSIBILITY ONLY WITH 1 DISH PER HOUSEHOLD 1 dish and modem for each household delivering Real Broadband Access wherever you are with speeds of 22 Mbps download and 6 Mbps upload Television from Eutelsat 9B Voice over IP Advantages No upfront infrastructural cost 1 install = 1 subscriber Available everywhere even in most remote places Service speed and volume allowance adjusted to fit individual user needs Bundled billing for internet access, television and telephone Home router WiFi TV Phone Indoor Equipment Internet 28
28 EUTELSAT 9B & KASAT FROM ONE TERMINAL KA-SAT is co-located at 9 E with Eutelsat 9A Eutelsat 9B reception through dichroic plug-in on ToowayTM terminals Possibility to combine with a single antenna Direct-To Home and Broadband services and define a Triple play offer for some area KA-SAT coverage with Ku/Ka reception (dichroic) 29
29 DICHROIC SUB-REFLECTOR FOR TV RECEPTION FROM EUTELSAT 9B TV Reception for 9 E with the dichroic sub-reflector Ku-Band TV reception is equivalent to a 60cm antenna 30
30 9 E OPERATION SMART LNB NON LINEAR TV The smart LNB is a Eutelsat new-generation of satellite LNB that adds on top of regular DTH reception capabilities a two-way IP connectivity with a narrow band return-link, optimized for short transmissions of IP packets. It allows narrowband IP transmissions over satellite at very limited cost, plus direct reception and distribution of IP content into the home for different applications: 31
31 SMART LNB - APPLICATIONS Multicast video services: Use smart LNB to receive native IP video streams and redirect inside home. Simple alternative/complement to traditional DVB solutions in order to address all screens at home (in particular the mobile devices that are IP native) Allows linear and non-linear video consumption on tablets and smart phones with effective content right clearing, based on DRM. In this case, the forward link is used in multicast to deliver live native-ip TV channels and Push-VoD Remote management of the CPE 1 (unicast): Use smart LNB as a connection of the end-user settop-box After-sales customer support, quality assurance, audience measurement Independent of any 3 rd party and without any action from the user, (no ADSL, smart-phone or 3G dongle to connect ) This provides to the TV platform a 24/7 visibility into the set-top-box, that can be useful for audience tracking, QoS monitoring Interactive TV experience (unicast): Use smart LNB complimentary to traditional DTH line-up, offer interactive services to customer base, despite the lack of internet access in the home (social TV, interactions with the program ) 1 CPE: Customer Premises Equipment 32
32 A EUTELSAT SMART LNB HOME SCENARIO smart LNB IDU IP TS video LAN connectivity Video Transactions DRM negotiations social / interactive TV Machine to machine Home automation Video TV reception 33
33 THANK YOU
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