Satellite Capacity Lease Agreement

Inmarsat`s stated goal is to provide a consistent experience. This is one of the reasons for global coverage with a few satellites. The problem is that this strategy was developed in 2010 and is not being implemented until seven years later. The result is wider coverage, with no sufficient capacity for air transport. To what extent is Inmarsat`s self-described “thin” capacity limited? Consider this — our current air-to-ground network in the U.S. has 30 times more capacity than Inmarsat on the same geography. (In fact, in 2008, our ATG network had three times as much capacity as Inmarsat`s network today.) The only thing that will be consistent with Inmarsat`s experience is that it will be slow and frustrating for passengers. Maintaining the link can be particularly important in an emergency. AsiaSat`s satellite capacity has been used to set up short-term networks for disaster recovery when the primary terrestrial network of telecommunications companies has been damaged by natural disasters or other catastrophic events.

In cases where AsiaSat customers encounter emergencies, AsiaSat`s fleet and facilities can provide support as backup. It takes an end-to-end service provider to deliver on those promises, and satellite capacity is only about one-third of the equation. With only about 100 aircraft directly operated by Inmarsat and ViaSat (aircraft using their satellite capacity are now mainly managed by other in-flight connectivity partners), it is perhaps not surprising that they do not realize that the other two thirds are of paramount importance to airlines. Other elements include certification and installation of systems in aircraft, global logistics and maintenance, as well as systems and software for presenting, managing and customizing passenger experiences on behalf of airlines. With our leasing strategy, we can afford to devote 100% of the capacity we buy to aviation and not share it with other users. While Viasat and Inmarsat must de-emphasize their capacity by simultaneously sharing them between a number of users in homes, ships and aircraft. Dedicated capabilities are essential to meeting aviation performance standards. An airline`s decision regarding its connectivity provider is important. We believe that our leasing strategy for airlines is better because it reduces their risk and exposure to falls in the satellite industry, while ensuring the capacity and coverage needed to meet the growing needs of their connected passengers. And at the end of the day, we think airlines are realizing that they are facing a key question: who invests the most in your success, a provider that aligns aviation needs with the needs of many other sectors, or a partner that focuses exclusively on the best connectivity experience for aviation? ViaSat`s argument for aviation is that they essentially have “unlimited” capabilities.

You will explain that ViaSat-2 has just started with a capacity twice that of ViaSat-1 and that ViaSat-3 will start around 2020 or later. What is ignored in this argument is that ViaSat is already very limited in capacity. ViaSat-1 is now overrated, while ViaSat-2 will quickly support its core business, residential broadband, which is struggling with much more powerful wireless providers. Linking your fortune to ViaSat is a risky bet. ViaSat is unable to reverse its challenges in the housing market. And without returns, they will have a hard time financing the satellites needed to meet the growing capacity needs, as customers are stuck on some oversubscribed satellites. Capacity depends on customer requirements. Sat4Ever offers locations ranging from hundreds of kHz to full transponders. Inmarsat argues that growth in satellite capacity is ultimately slowed and market capacity is limited. They imply that the cost of the purchase will increase (what it would do) and that the

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