1

XipLink Corporate Overview || October, 2014

HTS Technology &Satellite Backhaul

for 4G LTE

STS Global 2016 TechDay || Page 2

Introduction ::

Bruce BednarskiSVP, Business Development

San Diego, CA, USA(m) +1 703 346 5250

bbednarski@xiplink.com

STS Global 2016 TechDay || Page 3

Cellular Subscribers :: Key Figures

SOURCE: ERICSSON MOBILITY REPORTJUNE 2016

Total subscriptions EOQ1 2016 is ~ 7.4 billion, + 63 million new subscriptions

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Subscribers by Technology :: Key Figures

SOURCE: ERICSSON MOBILITY REPORTJUNE 2016

LTE subscriptions continue to grow strongly, with 150 million new subscriptions.The total number of LTE subscriptions is now around 1.2 billion. In 2019, LTE will be the dominant technology.WCDMA/HSPA added around 30 million during the quarter. The majority of 3G/4G subscriptions have access to GSM/EDGE as a fallback. GSM/EDGE-only subscriptions declined by 70 million during Q1 2016.

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By Region & Technology :: Key Figures

SOURCE: ERICSSON MOBILITY REPORTJUNE 2016

By 2021, over 90% of the world ́s population will be covered by mobile broadband networks.

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Global CBH Units :: 2G, 3G, 4G

SOURCE: NSR Breakfast Briefing - DC2015

~ 1% of global base stations are backhauled over satellite~ 10% of global population lives outside of any mobile coverage, e.g., 14% of Indonesia

remains isolated.

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CBH Over Satellite :: Evolution

2. PROTOCOL CONVERSION

- Mediation devices TDMA to IP (packet efficiencies)

- Suppress silence , multiplex signaling

- Up to 50% traffic reduction over legacy

3. TDMA VSAT

- Groom across all sites to accommodate traffic and busy hours

- Considerable bandwidth reduction over legacy

5. Wireless Link Optimization

- Complement BTS inefficiencies

- Overcome modem performance issues

- Pure IP data orientation

- Scalable acceleration and traffic optimization

1. LEGACY

- SCPC satellite modems

- Channelized TELCO interfaces

- Each link built to support busy hour

4. IP Oriented Base Stations

-Packet efficiencies in RBS

- Suppress silence, multiplex signaling

- Local call switching

- Elimination of mediation devices

Satellite Bandwidth (Increasing efficiency “goodput”)

STS Global 2016 TechDay || Page 8

HTS For LTE:: Change Agent or Status Quo?

SOURCE: VIASAT ANNUAL REPORT2008

STS Global 2016 TechDay || Page 9

MNO :: Facilities Provisioning Rule-Set

Typical Provisioning Rule-Set:1. Fiber facilities;2. Terrestrial copper;3. Microwave;4. Satellite (last resort)

Example:- 10 Mile 45 Mbps DS-3 (FCC1 Tariff)- Assumes MNO has entrance facility- $3,238.30 per month…dedicated!- Effective rate of $71.96 per Mbps

Satellite remains the bearer facility of last resort!

To GROW: SNO’s require bold pricing leadership to assist MNO’s to (1) “edge-out” their networks to service the final 10% of the unserved population, (2) to “edge-up” the provisioning rule-set as a more attractive transmission facility.

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Global Mobile Data Traffic :: 2015 to 2020

SOURCE: Cisco VNI Mobile2016

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Data Growth :: The MNO’s Conundrum

SOURCE: Cisco VNI Mobile2016

Remote Capacity: < 1 Mbps – 2 Mbps 6 Mbps – 8 Mbps 40 Mbps

Equipped Capacity: 100 Mbps

Capacity Multipliers: 4+ 20+ / 5+

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Improving The Business Case :: CBH

Satellite Network Operators (Layers 1):• Capacity Providers (LEO, MEO, GEO)• 12 Tbps of HTS Capacity Planned 2025, 3Tbps will be GEO HTS*• Drive the Cost Down (Look Outside The Industry)

Modem Technology Providers (Layers 2 &3):• RF Efficiency Features:• Advanced Modulations• Improved FEC’s• Adaptive Code Modulations• Carrier-in-Carrier• Smaller Roll-Off Factors

Wireless Link Optimization (Layers 3, 4, & 5):• Scalable Acceleration to 100’s Mbps• Header and Payload Compression• HTTP Lossy and Lossless Compression• Byte and Web Object Cache• Class Based QoS and Prioritization• Internet “Time to Content” Improvement for QoE• GTP Transparency• PPS Reduction and Link Bonding & Balancing

SOURCE: NSR's Global Satellite Capacity Supply and Demand, 13th Edition

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4G Over HTS :: Questions/Challenges?

4G/LTE is a challenge to support over satellite (latency, signaling)?Mobile Network Operators are under pressure to lower the operating costs associated with building out their network. Satellite as a transmission backhaul option is typically a more expensive option.Mobile Network Operators are looking for relief and options to effectively manage the growth and burden of data traffic (falling prices associated with smartphones increase data consumption driven by video content). Data usurps the vast majority of the capacity, but does NOT equally contribute to the revenue versus voice. Current generation of modems lack performance to support 4G overt HTS?Mobile Network Operators believe that the quality of experience (QoE) for all mobile traffic classes being transported over satellite are inferior to other transmission options.New internet protocols associated with 4G/LTE are challenged over satellite (1) GTP tunneling for the S1 interface, (2) IPV6 has arrivedSupport of multi-service networks (2G, 3G, 4G and WISP models) and support of multi-protocol network (co-mingle IPV4 and 6).Will Ku versus Ka spot beams and rain fade issues render HTS inadequate in this vertical?How much HTS will actually be available for CBH and will that be adequate to drive down cost or even support organic growth (1) consumer versus carrier grade solutions (2) advertised capacity versus truly available capacity (interference) (3) closed versus open systems.

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Thank You!