Functionality as a Service (FaaS) in VSAT networking. Revolutionary solution for emerging markets

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1 Functionality as a Service (FaaS) in VSAT networking Revolutionary solution for emerging markets

2 NEW APPROACH IN VSAT NETWORKING Revolutionary reduction of upfront VSAT hardware costs thanks to Functionality as a Service approach similar to well-known Software as a Service commercial model Making satellite communications affordable for customers in the emerging markets Reducing investment requirements for satellite communication projects of any size and complexity Risk-free solution to penetrate new, undeveloped markets with ultraflexible technology and ultra-low initial investments Ideal ground segment solution to accompany new regional satellite initiatives

3 Typical satellite project expenditures (100 sites private VSAT network) $ $ $ $ $ $ $ $ $ $ $- Hardware Works Capacity Year 1 Year 2 Year 3 High upfront investments into VSAT hardware and installation First year expenditures are about 70% of total project cost* Hardware costs are about 60% of total first year expenditures or 40% of total project cost* * For 3-year term

4 Managing key risk factors VSAT Hardware nonrecurring expenditure, with limited opportunities for reuse in other projects Works non-recurring, nonrefundable expenditure Satellite capacity recurring expenditure with potential for easy reallocation to another project within the coverage Expenditures of typical VSAT project Capacity Works Hardware 41% 17% 42% TASK: Reducing upfront investments into VSAT networks and risks of first year operations

5 SOLUTION: VSAT with Functionality as a Service (FaaS) Universal VSAT system with unified all-in-one hardware platform and software-activated functionality Restructuring traditional VSAT costs into: Non-recurring cost for hardware itself with basic functionality Recurring cost for advanced SW functionality and support Provisioning of VSAT functionality on-demand: Leasing of required features for specified time and when needed Short-term leasing for demo and risky projects Anytime upgrade to a time-unlimited license Swapping SW licenses in-between network devices or different networks On-line purchase of software licenses for spares from your warehouse

6 UHP platform ROMANTIS UHP Satellite Router is all-in-one technology with architecture based on a single, universal hardware platform that may operate as a Hub, remote Star terminal, remote Mesh terminal, SCPC or as a Full Mesh hubless station UHP-1000 routers supports any topologies point-to-point, hub and spoke, tree of trees, full mesh and various modes of operations, e.g. SCPC, TDM/SCPC, TDM/TDMA, TDM/TDMA Mesh, TDMA Full Mesh. All supported modes of operation are software selectable, remote manageable without need for hardware replacement or on-site visits UHP routers also support time-limited software keys that provide required functionality for specified period of time A software key can be reused with any other UHP router ensuring migration of network functionality from one site to another

7 Network cost structure Romantis VSAT Network cost structure Production 49% R&D + Support 51% UHP VSAT platform ensures industry-lowest manufacturing costs At least 50% of UHP cost can be structured as recurring fees About 99% of UHP Hub costs can be recurring

8 UHP VSAT platform with FaaS Key principles Non-recurring payment for VSAT hardware covers its production cost only Required functionality can be leased for respective period of time and covered by recurring payments The software keys can be swapped between the sites Time-unlimited SW license can be purchased at any time Benefits Minimal upfront investments into VSAT projects makes this technology widely-affordable Reduction of the 1 st year expenditures down to 50% in comparison to traditional approach Voiding or shifting a SW license from one site to another allows doing risk-free business in more projects and applications

9 Sample FaaS VSAT Pricing Network component* Hardware Purchase Price, one-time Software Leasing fee, monthly** TDM/TDMA Mini-Hub $400 $950 TDM/TDMA STAR Terminal $400 $15 TDM/TDMA MESH Terminal $400 $30 Full Mesh TDMA Hubless Station $400 $65 * IDU only ** 5 years term Fully functional HUB just for 0.5% of its traditional market price! Buy universal technology and decide on required functionality on the fly

10 Cooperation on FaaS VSAT Joint product: Satellite Capacity with customer-managed, affordable, risk-free FaaS solution for Ground Segment Total package to start satellite business combining satellite capacity, ground segment and know-how Applicable to government and enterprise operators/integrators and telecom providers of any size Tailored for emerging markets, where new satellites are to be launched or not yet completely utilized Allows establishing small- to medium-size satellite networks with minimal initial investments and risk-free, business-friendly cash flow Incredible flexibility of VSAT technology, allowing to change the mode of network operation or topology without loss of initial investment

11 Joint capacity/hardware product packages UHP VSAT equipment on exclusive FaaS conditions when ordered in a package with satellite capacity Makes VSAT network affordable for previously unreachable customers (short-term or risky projects) Increase loyalty of customers because of need to buy time-unlimited licenses when moving to another satellite capacities Free Try&Buy opportunity for UHP VSAT platform for any capacity order exceeding... MHz Allow customers validating new technology and new approach Motivating customers to optimize their outdated technologies Free UHP HUB for entire contract term when ordered with MHz capacity Obvious advantage on other market proposals Motivation to start VSAT business even if capacity has been ordered for another purposes

12 Next steps Validating UHP technology Definition of joint working group Developing marketing plan for the joint product Launch of join sales and approaching potential customers on EMEA, LATAM, Asian markets Deployment of demo networks (Try & Buy)