MEASAT Satellite Systems Sdn. Bhd.

Business Continuity Planning in the Satellite Industry

September 2012

1

Overview

• Founded in 1992 as a Malaysian based satellite operator

– Originally part of Maxis, becoming independent in 1998 and

listed on Bursa Malaysia in 2002

– Subsequently taken private in 2010

– Secured 16 orbital slots for future growth options

• Capacity across five satellites with network reach to over 145

countries representing 80% world‟s population

• Pioneer in Ku-band DTH in high rainfall region, supporting

today six (6) platforms in regions with dynamic DTH markets

– Supports Astro in Malaysia and Brunei, providing DTHmulti-channel television services to over 3m subscribers

– One of four (4) international operators supporting Indian

DTH (Reliance and Sun Direct) with over 11m subscribers

– Core operator in upcoming Indonesia market supporting

AoraTV and CentrinTV

Originally founded in 1992, today MEASAT has capacity across five

satellites with continued focus on growth through fleet expansion

• Strong Asian Video Distribution neighborhood with leadership in Asian HD Video Distribution services

• Focus on continued growth through fleet expansion with three new satellite projects under construction; AFRICASAT-1a (“A1a”),

MEASAT-3b (“M3b”) and MEASAT-3c (“M3c”)

• Named “Regional Satellite Operator of the Year” in 2008 for the Excellence in Satellite Management Awards

2

Top Tier C-Band Video Distribution

> 80 SD/HD TV Channels

Malaysian Communications

MEASAT supports some of the region’s premier

broadcasting and telecommunication companies

• 3 MM subscribers

• 154 channels

• >100K subscribers

• 81 channels

• 4 MM subscribers

• 242 channels

• 7 MM subscribers

• 121 channels

Asian Ku-Band DTH

• >30K subscribers

• 42 channels

3

Advantages of Satellite Platforms

Advantages of Satellites TV Delivery

Wide coverage area: Able to reach urban

and rural populations across a entire

country or region

Immediate Coverage : Provide immediate

coverage on launch enabling rapid rollout of

network while overcoming the “last mile”

problem

Cost effective: Provide a platform that

distributes content in cost effective manner

irrespective of distance

Reliable: High signal availability with less

points of failure compared to terrestrial

networks

High Capacity: DTH systems able to

provide capacity for up to 500 TV channels

`

4

Voice & Data Video Broadcasting Corporate Networks IP Traffic

• Bandwidth on

Demand

• Trunking

• DAMA services

• Store & Forward

• Rural telephony

• Cable TV distribution

• Direct to Home

• Video contribution (backhaul of content

from production to uplink, eg. SNG)

• Video on Demand

• Private networks

(VSATs)

• Distance learning

• Telemedicine

• Internet backbone

connectivity

• Broadband

interactive services

• In-flight aircraft services

• Internet direct access

• Media casting

Example Satellite Applications

5

Asian DTH Platforms

DTH operations

By Country

Operational

Source: Industry sources

*Current subscriber f igures as of 2012 not available

Platform Country Subscribers

DD Direct India 9,000,000

Zee Dish TV India 13,400,000

Tata Sky India 9,000,000

Sun Direct India 7,580,000

Sky PerfecTV Japan 3,863,883

Astro Malaysia 3,067,000

Airtel India 7,828,000

Reliance Digital India 4,411,000

Sky Life Korea 3,262,000

Foxtel Australia 2,220,000

True Vision Thailand *900,000

Videocon D2H India 5,908,000

Austar Australia 620,000

Indovision Indonesia 1,356,000

Dialog TV Sri Lanka 1,500,000

VTV Vietnam *150,000

6

Risks of Satellite Delivery

Issues

• Satellites operating in harsh

environment of space for

extended periods; if issue

occurs, equipment cannot be

readily „repaired‟

• Satellite capacity tailored to

meet specific DTH

requirements (coverage /

power levels)

• Satellites often operated with

limited spare capacity

available (that can be

relocated in case of failure)

• Switching costs of moving to

an alternative satellite

prohibitive

• Time for replacement satellite

can be 24 to 36 months

Potential Failure Points

7

Satellite Failures

8

Satellite Operator Approach

• Utilize slot to support multiple DTH

platforms across multiple markets

• Fly multiple satellites in orbital slot

providing in-orbit diversity /

redundancy

• Utilize different bus designs to avoid

fleet risk

• Operate with spare capacity (to allow

switching in of back-up capacity)

• Work with satellite operators in

adjacent slots to develop in-orbit

spares able to support multiple

markets as / when required

Approach

Spare

Spare

MEASAT 91.5E Slot Development Plan

Frequency Block

Satellite 1 V

H

Satellite 2 V

H

Satellite 3 V

H

Satellite 4 V

H

Market 1

Market 2

Market 3

9

MEASAT’s 91.5 E Hot Slot Strategy

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

4 Transponders

M1

M3

M3 M3a

24 Transponders

36 Transponders

102 Transponders

84 Transponders

M3 M3a M3c

M3 M3a M3b

M3b

By 2015, MEASAT will operate the strongest DTH satellite network in Asia with

more than 100 DTH transponders over four (4) satellites at a single orbital slot

Existing

Satellites

Ku

Payload

Core DTH Markets

MEASAT-3 24 Txs India / Malaysia

MEASAT-3a 12 Txs Indonesia / Malaysia

Under

construction

Ku

Payload

Core DTH Markets

MEASAT-3b 48 Txs India /Malaysia /

Indonesia / Australia

MEASAT-3c 18 Txs India /Malaysia

Support from Manufacturers and DTH Platforms

DTH Plaforms

• Engage in dialogue with

satellite operator about

plans to provide back-up

capacity

• Be prepared to provide

the commitments to allow

operators to invest in

backup

• Be prepared to pay

transponder lease rates

that allow for operators to

provide back-up

Satellite Manufacturers

• Focus on extra

redundancies in satellite

design for DTH operations

• Provide for greater

satellite flexibility (ground

controlled flexible arrays)

• Continue to focus on

improving satellite

reliability

Platform Benefits

• Protect overall

investment in DTH

business (which can

extend into USD

Billions)

• Raises customer

confidence and

strengthens DTH

brand

11

Summary

• Providing a unique advantage as a communication platform, satellites are

used for a range of essential communication, commerce and entertainment services. This includes the provision of television services which today has

become a multi-billion dollar industry across the region.

• While satellites provide an ideal delivery platform for PayTV, satellites also

have certain risks which need to be recognized and mitigated as part of a

BCP strategy.

• While there are a number of things a satellite operator can (and should) do to

address these risks -- and support their DTH customers -- satellite operators

need to work collaboratively with DTH platforms and satellite manufacturers to

ensure satellite provides a robust delivery platform to address future needs

12

Thank You

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