HUGHES PROPRIETARY

Leader in Broadband Satellite Caspian Telecom

April 18-19,2013Konstantin Lanin

HUGHES PROPRIETARY

Business Segments

Largest satellite broadband ISP to North American consumers

659K subscribers

World’s leading provider of broadband satellite network solutions to enterprises

VSAT technology pioneer

Leases transponder capacity on satellite fleet primarily to Dish Network, Dish Mexico and secondarily to government entities, ISPs and broadcast news organizations

North America Consumer

North America Enterprise

EchoStarSatellite Services

$274

Note: Revenues above are in $ millions and are as of 12/31/12,Subscriber Count as of 12/31/12

EchoStar Corp.$3,122

Set-top hardware for satellite TV service providers and place-shifting technology

Digital broadcast operationsHSS Corp.$1,433

EchoStar Technologies

& Other$1,689

Hughes$1,159

International Enterprise

HUGHES PROPRIETARY

Satellite Services – Satellite Fleet

22 EchoStar owned, leased, and managed satellites

HUGHES PROPRIETARY

Hughes Mission

To be the world’s premier provider of broadband services, products and network solutions, bridging the best of satellite

and terrestrial technologies.

HUGHES PROPRIETARY

World’s Leading Provider of Broadband Satellite Services and Technology

■ Government

■ Consumer/SMB ■ Enterprise

■ Mobile Satellite

HUGHES PROPRIETARY

VSAT Has Come a Long Way

85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 110

500

1,000

1,500

2,000

2,500

3,000Consumer

Hughes Consumer

Hughes Enterprise

Enterprise

Thou

sand

s of S

ites i

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rvice

Source: Comsys

HUGHES PROPRIETARY

VSAT – Past

Circa 1985 VSATs…

6 PC BoardsOutdoor power1.8 m antenna

PES Type 1 Bypass the terrestrial network for

speed and reliability

Supported SNA/SDLC (multidrop) and X.25

2,000 sites was a very big network

Cost $10,000+

512 kbps outbound

128 kbps inbound

9.6 kbps user rate

HUGHES PROPRIETARY

Hughes Development Trajectory

JUPITER™ High-ThroughputSystem• Wideband forward• Very high speed return• 10’s Mbps services

1990 1995 2000 2005 2010 2013

HX System• 120 Mbps forward• 9.6 Mbps return• Mobility/Mesh/Security

HN System• 120 Mbps forward• 3.6 Mbps return• Internet access• Private VPNDW System

• 75 Mbps forward• 512 Kbps return• Internet access• Private VPNDirectPC

• 75 Mbps forward• Terrestrial return• Internet access

PES• 512 Kbps forward• 256 Kbps return• Corporate networks

Continuous development of VSAT systems

Common core technology• DVB based forward channel• IPoS based return channel• Common IP capabilities

HUGHES PROPRIETARY

Over 900,000 VSATs Operated By HughesOver 3,300,000 VSATs Shipped By Hughes

North America>800,000 VSATs

Brazil>15,000 VSATs

Europe>40,000 VSATs

India>50,000 VSATs

2.6MVSATs shippedNorth America

186KVSATs shipped

Europe50K

VSATs shippedRussia/CIS

111KVSATs shipped

Asia/Pacific

107KVSATs shipped

AME160KVSATs shippedLatin America 120K

VSATs shippedINDIA

HUGHES PROPRIETARY

VSAT – HughesNet North America Today

Subscribers

In thousands

2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

100

200

300

400

500

600

700

HUGHES PROPRIETARY

SPACEWAY® 3The World’s First Switch-In-The-Sky

10 Gbps gross throughput Multiple spot beams with flexible

capacity allocation and onboard routing

Single-hop, full-mesh, small-dish connectivity

Enterprise, consumer, SMB, and government applications

Ka-band technology April 2008: commercial service;

>500 K subs (12/31/12)

HUGHES PROPRIETARY

EchoStar XVII with JUPITER™ High-Throughput Technology

Launched July 5, 2012 Service launched October 1, 2012

60 spot beams Well over 100 Gbps + Capacity Highest forward throughput Highest satellite EIRP/beam Optimizes capacity density to

where users are located

HUGHES PROPRIETARY

World’s Largest Consumer Satellite Internet Service

EchoStar XVII

Downstream (Mbps)

Upstream (Mbps)

Anytime (GB)

Bonus Bytes (GB)

MSRP

Power

10

1

10

10

$39.99

Power PRO

10

2

15

15

$79.99

Power MAX

15

2

20

20

$99.99

EchoStar XVII

SPACEWAY 3

HUGHES PROPRIETARY

The Market in North America

Unserved Households

Current Market Penetration

Opportunity with New

Generation Satellite Ca-

pacity

Current Dial-Up Households

0

2

4

6

8

10

12

14~14.0 M

~1.0 M

~3.5 M4.8 M

U.S. Housing Units (mm)

Current Market Penetration: ~8%Hughes: 659 K ’12FYE SubsViaSat : ~467 K ’12FYE Subs

Unserved within DSL/Cable Footprint

Outside Cable/DSL Footprint

We will provide a better service than a significant proportion of the DSL in

rural areas

40% of rural Broadband users have speeds less

than 10 Mbps

Consumer Market Is BIG and Getting BIGGER

HUGHES PROPRIETARY

Hughes Networks In Action

HUGHES PROPRIETARY

Mobile Broadband Solutions

Trains– Commuter train

service in USA

■ Broadband on-the-Go

■ Aeronautical -Row44– Southwest Airlines– Norwegian AirShuttle– Icelandair– Transaero, UTAir– Mango Airlines■ Maritime

– Global marine communications– Intelsat maritime service

■ Technology provider to the leadersInmarsat Thuraya Globalstar Iridium

HUGHES PROPRIETARY

Integrated COTM Terminal Solutions

Airborne Land Mobile Maritime

AeroSat HR 6400

Rantec Ku 11.5/18”

Tecom

DRS

GD Satcom

Raysat

Cobham

L3-Datron

Thinkom

Harris X/KaHarris X/Ku

Azimuth Cobham/Seatel

HUGHES PROPRIETARY

Government: DoD Opportunities

DoD Bandwidth Gap

HX-Based MicroSat Terminals

Hughes DoD Opportunities

Satellite on the Move

Hughes offers a range of products from L-band to Ku-, Ka-, and X-band

Man-portable terminals Commercial or military Ku-, Ka-,

and X-band satellites

Agile bandwidth On-the-move solutions 3 to 50 Mbps broadband solutions

HUGHES PROPRIETARY

Looking Forward

HUGHES PROPRIETARY

Markets and Applications – Evolution of Satellite Broadband

1990 2000 2011 2015

5-10-25 Mbps

9.6 kbps

1990 2000 2011 2015

$$$$

Significant increase in throughput and performance

Significant reductionin cost of service and hardware

New Addressable Markets: SME and Consumer Ka-band Accelerates these Forces

HUGHES PROPRIETARY

Future Evolution of VSAT

Launch Vehicles Satellite Bus and Payload Ground Systems

HUGHES PROPRIETARY

Broadband Satellites Beyond EchoStar® XVII

200-300 Gbps capacity

Lowering the cost per bit

+ Satellite bus and rocket advances

Increase mass – 8000+ Kgms Increase power – 20+ Kwatts

Payload and spectrum advancesMore and smaller beamsAlternative bands

Feeder beams User beams

Wideband carriers

TraditionalSatellite

SPACEWAY 3Satellite

EchoStar XVII Next generation

HUGHES PROPRIETARY

Ground Systems – Future

Gateways

VSATs

Air Interface

Acceleration

Development Focus Key EnablersCapacity V-band and other spectrumDensity Gflop/sec processor bladesPower efficiency

100 Mbps Throughput Digital modem technology at near theoretical and Hardware-based accelerationPerformance

Spectral efficiency Beyond DVB-S2: - 64-ary modulation - Faster than Nyquist signalingAdvanced VLSI

Fast response times Accelerating Java scriptHTML5 acceleration supportIntelligent caching

HUGHES PROPRIETARY

Ka-Band Technology Development Benefits Flow Through

Application

Transport

Network

Data Link

Physical

Investment in Ka-band Systems

Ka-band

Ku-band

C-band

Common Core Technology Used for All VSAT Systems

Hughes Approach

HUGHES PROPRIETARY

THANK YOU … ANY QUESTIONS?