About APT Satellite

Apstar IIR Satellite Characteristics

Its estimated fuel lifetime is about 15.1 years starting from November 16,

1997.

APSTAR IIR Asia ,Australia

Middle East , part of Europe
Africa

Platform SS/L FS-1300

lifetime > 15 years

Orbit position 76.5 ⁰E

Station keeping + 0.05⁰ (E/W,N/S)

C-band Coverage: Asia, Australia, Middle

28 x 36Mhz East, Europe, Africa
transponder Uplink: 5.850 to 6.425 GHz
Downlink: 3.625 to 4.2 GHz
EIRP: 33 ~ 40dBW
G/T : -10 ~ -3 dB/K

Ku-band Coverage: China

16 x 54Mhz Uplink: 14.0 to 14.5GHz
transponder Downlink: 12.25 to 12.75GHz
EIRP: 45 ~ 58dBW
G/T: 0 ~ +8 dB/K
Apstar V Satellite Characteristics

APSTAR V Asia Pacific

Platform SS/L FS-1300

lifetime > 15 years

Orbit position 138 ⁰E

Station keeping + 0.05⁰ (E/W,N/S)

C-band Coverage: Asia Pacific

38 x 36Mhz Uplink: 5.85 to 6.65 GHz
transponder Downlink: 3.4 to 4.2 GHz
EIRP: 33 ~ 41dBW
G/T : -9 ~ +1dB/K

Ku-band Coverage: China / India

16 x 54Mhz Uplink: 14.0 to 14.5GHz
transponder Downlink: 12.25 to 12.75GHz
EIRP: 45 ~ 59dBW
G/T: -4.5 ~ +9.5dB/K

Apstar VI Satellite Characteristics

 APSTAR VI Asia Pacific

Platform Thales Alenia SPACEBUS 4000

lifetime > 15 years

Orbit position 134 ⁰E

Station keeping + 0.05⁰ (E/W,N/S)

C-band Coverage: Asia Pacific

38 x 36Mhz Uplink: 5.85 to 6.65 GHz
transponder Downlink: 3.4 to 4.2 GHz
EIRP: 33 ~ 41dBW
G/T : -9 ~ +1dB/K

Ku-band Coverage: China

12 x 36Mhz Uplink: 14.0 to 14.5GHz
transponder Downlink: 12.25 to 12.75GHz
EIRP: 46 ~ 59dBW
G/T: -2 ~ +10 dB/K

1. Attitude Subsystem:
This subsystem consists of sensor, actuators, and on-board software applications that are used to
provide attitude determination and control for the spacecraft. All components are operating
nominally.

2. Communication Subsystem:
This subsystem consists of communication receivers, transponders, antennas (reflectors), and
other related hardware that are used to process uplink signals and transmit downlink signals for
the customers. All components are operating nominally.

3. Power Subsystem:
This subsystem consists of high/low voltage buses, batteries, solar arrays, chargers, dischargers,
power regulators and other related hardware that are used to provide constant power to support
the active components of the spacecraft. All components are operating nominally.
4. Propulsion Subsystem:
This subsystem consists of thrusters, propellant/pressurant tanks and lines, and other related
hardware that are used to provide the necessary orbital corrections for the spacecraft. All
components are operating nominally.

5. Spacecraft Control Electronics Subsystem:

This subsystem consists of computer based processing and distributing of commands and
 collecting telemetry for all functions within the spacecraft. All components are operating
nominally.

6. Telemetry, Commanding, and Ranging Subsystem:

This subsystem consists of telemetry, commanding, and ranging baseband units that are used to
communicate with the controlling earth station. All components are operating nominally.

7. Mechanical Subsystem:
This subsystem consists of antenna positioning and solar array drive mechanisms. All components
are operating nominally.

8. Thermal Subsystem:
This subsystem consists of software applications, heaters, sensors, and other related hardware
that are used to regulate the thermal environment of the spacecraft. All components are
operating nominally.

To replace Apstar IIR – The introduction of Apstar 7

APSTAR 7 Asia ,Australia, Middle East , part of Europe , Africa

Platform THALES ALENIA SPACEBUS 4000C2

Operational lifetime > 15 years

Orbit position 76.5 ⁰E

Planned Launch Q1, 2012

date

C-band One Coverage

– covering all visible landmass

– fully emulate the performance of Apstar IIR with improvement

28 active transponders

– 75W linearized TWTA

– Exactly same frequency plan as APSTAR IIR

Ku-band 3 fixed + 1 steerable mission

– Eurasia: Middle East, Central Asia, North Africa, part of

Europe

– CHN: China

– AFR: Africa

– SSB: Steerable beam capable of pointing any visible area on

earth

28 active transponders

– 147 /130W linearized TWTAs

– Inter-connection and selectivity between 4 missions

Replacement plan: Apstar 7 and Apstar 7B

 To minimum the risk

 o Satellite: SPACEBUS – one of the most reliable platform
-> selection of components: no new development
o Launcher: LM3B – LM family: one of the most reliable launcher
-> 117 Long March launch missions as of May 15, 2009
-> 75 consecutive successes since October 1996 (including Apstar IIR & 6)
 Secured replacement plan
o Apstar IIR: conservative calculation of lifetime: end of 2012 (with margin)
o Apstar 7 to be launched in Q1, 2012
o Apstar 7B is on the way
 to ensure the successful replacement, APT is actively working on the
backup satellite named Apstar 7B
 similar design but quicker delivery schedule
 expect to sign the contract before June 2010
o In case of Apstar 7 launch failure, Apstar 7B will be launched to replace Apstar
IIR in 2012
 APT has established daily operation coordination mechanism, and maintained good
relationship with ABS, Thaicom and INSAT, to eliminate any accident adjacent satellite
interference
 No change of operation condition for Apstar 7
o The neighboring satellite operators will respect the coordination agreements in
operating their services
o Any new neighboring satellites must be consistent with the existing coordination
agreements
o At a minimum the Apstar 7 satellite shall be operated under the same condition
as Apstar IIR, the service to our customers can be expect maintained at current
levels or even better with the launch of Apstar 7

APSTAR 7 will have 28 Standard C-band and 28 Ku-band high power transponders. It will have the
same Standard C-band transponder configuration but higher performance as compared to
APSTAR 2R, such that our customers can migrate from APSTAR 2R to APSTAR 7 in a seamless
manner and enjoy an improved transponder performance of APSTAR 7. The Ku-band
transponders will be built with a total of four beams: (a) three fixed beams which cover China,
Middle East, and Africa, and (b) one steerable beam, which can cover most of the landmass on
earth. The Ku-band cross-strap function supports inter-continental Ku communication capability.
APSTAR 7B is substantially a duplicate of APSTAR 7 (but with slightly less quantity in Ku
transponders) to reduce the development risk and to shorten the delivery schedule.

APSTAR 7 is scheduled to be delivered and launched in early 2012. APSTAR 7B can be delivered in
mid 2012 for launching such that it can serve as back up of APSTAR 7 if it is really necessary.

The SPACEBUS 4000 platform and Long March launch vehicle is one of the most reliable couples
in the satellite industry. APSTAR 7 and APSTAR 7B are the second and third satellites with
SPACEBUS platform that we have so far procured from TASF (including its predecessor, Alcatel
Space). Based on our experience on APSTAR 6, the first satellite that APT had procured and
launched on board of Long March 3B of CGWIC in 2005 as well as the brilliant flight or launching
proven records of both TASF and CGWIC in the satellite industry, we are fully confident on the
joint effort and compatibility of SPACEBUS 4000 platform and Long March 3B/E and have no
ground to raise any query on the successful delivery and reliable launch of APSTAR 7 as planned
for the in time replacement of APSTAR 2R. Despite the exceedingly high chance of success of the
APSTAR 7 Satellite for in time replacement of APSTAR 2R, we still procured APSTAR 7B Satellite
(including its launch service) on April 23, 2010, injecting more resources and funding into the
replacement of APSTAR 2R programme, merely for the purpose of achieving additional assurance
and reliability on the replacement programme of APSTAR 2R and offering our customers the
highest standard of our services in supporting our customers’ business continuity and market
competition in the long-term horizon.

Competitors:

Measat Satellite

Measat is one of the new breed of Asia-Pacific operators no longer content in serving
only local markets. “We are not taking our focus off Asia but are using our Asian
business as a stepping stone into a wider geographical market. While Asia will remain
our core market, we are developing more into an emerging market operator. We want
the company to be more of a global player than an Asian player.’ (Brown Kenyon, the
CEO of Measat, (Satellite Today)

Asia Broadcast Satellite (ABS),

ABS has already derived the majority of its revenues from outside Asia. Before the
Mabuhay acquisition (in November), the percentage of revenues coming from Asia
was less than 8 percent. With the launch of ABS-2, ABS expects revenues to be
around 20 percent with the remaining revenues generated outside Asia. After the
acquisition of the initial ABS-1 satellite, ABS is looking to grow from Eastern
Europe, the Middle East and Africa.

ABS has acquired the Koreasat-3 satellite from Korea Telecom (KT), the company
announced May 24.
The satellite aims to provide ABS with even more capacity in the Middle East market
– a major target for the operator.  Koreasat-3 will provide cellular backhaul, VSAT
services, satellite broadband and US/NATO government requirements in the Middle
East region.
   
Thaicom
Thaicom is “looking for the opportunity from other orbital slots that cover Africa and
Middle East,” says Arak Chonlatanon, CEO of Thaicom. ( Satellite Evolution)But
Thaicom made a major strategic bet by building the IPStar satellite, and as a result, a
lot of its future performance will be tied into satellite broadband within the Asia-
Pacific region. Thaicom is still “very positive” about Asia. ( Satellite Today)

JSAT

Japan’s Sky Perfect JSAT is another operator that plans to remain more focused on
Asia than growing in other regions. JSAT has been particularly solid in the area of
satellite Internet services, communications involving gas and oil exploration, mobile
backhaul, and government use. ‘We continue to expect an increase in transponder
demand in the Asia-Pacific region, especially in Indonesia, Afghanistan and
Australia,” says Akiyama, CEO of JSAT. (Satellite Today)

JSAT’s international strategy is focused more on North America; it is the only

satellite operator in Asia that has business access to North America, this should thank
to their joint venture with Intelsat. JSAT plans to expands its opportunities within the
Asia-Pacific region with the launch of JCSAT-13, scheduled for 2013, carrying 44
Ku-band transponders with Japan and Southeast Asia beams and two steerable beams
covering the region from the Middle East to Southwest Asia, Southeast Asia and
Oceania.

AsiaSat

While ABS and Measat target Africa and other regions, AsiaSat’s existing satellites
don’t cover Africa very well, but that is not to say that if the right opportunity
developed they would ignore that continent. Today, the satellite usage growth in
Africa is predominantly a backbone market for developing cellular and Internet
services. That is not a long term market for satellite, but it will last some time and the
applications that utilize the distribution and geographic capabilities of satellite will
develop. Based on this, the future marketing trends of AsiaSat shall be still focus on
their current Asian market occupation while preparing to chip in other regions when
the right orbital slot becomes available. ( Space News)

Market Trending & Analysis

Consumer satellite TV services remain the core growth driver. (Refer to below chart)

Satellite service grew by 11% yoy in 2009. Management indicates that the innovation of High
Definition Television (HDTV) will increase the demand for transponder capacity by ~50% per
channel. The growth in numbers of HDTV would provide a strong support for transponder service
agreement, which would probably lead to a direct catalyst for APT revenue growth..

SAN JOSE, CA — The DTH pay TV services have nearly 60 operating platforms all over the
world. Compared to the growth rate in the number of subscribers, the growth rate in the revenue
generated from the Direct-to-Home pay TV services depicts an increasing trend. The reason
attributed for the growth in the annual average revenue per user (ARPU) is the increase in prices
of these services, as well as value additions to the services being offered. DTH satellite TV
subscribers worldwide, are projected to be over 133 million in 2010, as stated in a recent report
published by Global Industry Analysts, Inc.

World DTH satellite TV services market is projected to grow at compounded annual rate of over
9.6%. DTH satellite TV subscribers in Europe account for nearly 50% of the total subscribers
globally. However, as the North American and West European markets mature, focus is seemingly
shifting towards developing markets such as Asia-Pacific and East European countries. Asia-
Pacific represents the fastest growing market for DTH satellite TV services, registering a CAGR
of nearly 23%.

Difference is uncanny between HD TV service and other consumer TV services. The trends during
five years show ascending on this field while jumping up largely from 48% to 64%. The
adjustments which have been made out through the operators would be re-considered to locate
into higher position where most clients would chip in the business more or less in future. In order
to develop the market share, local operator has to plan out the strategy under international co-
operation.

Strong demand for satellite transponders capacity from HDTV

Most broadcasting companies in the world have upgraded their channel from SDTV (Standard-
Definition Television) to HDTV which requires 50% more capacity from transponders. Up to May
2010, number of HDTV channels nearly double yoy to 2,710, of which 80% serving Americas. Asia
Pacific will gradually pick up the trend.

EchoStar Corp, one of the top satellite TV service providers in the US, made its first
Asian foray by launching its satellite TV service in Taiwan yesterday.

Dubbed “DishHD,” the service will offer 36 high-definition (HD) channels — a figure
that it said is more than double those offered by local TV service providers.

Robust growth in the numbers of HDTV channels is likely to push revenue growth of APT.APT now
operates three satellites to handle the load for broadcasting TV channels for customers like Walt
Disney, HBO, and Sony Picture etc. The business opportunities will be potentially among them to
be explored.
As Eutelsat has teamed up with Eurosport to broadcast the French Open in 3-D to
retail stores throughout Europe, on 27th, May, 2010, which transmitted the 3-D
coverage to its Hot Bird 6 at 13 degrees East for reception by retail outlets and
business clients in 28 countries across Europe.

The event aims to showcase the potential of sport as a driver for the consumer 3-D
market and Panasonic's full end-to-end 3-D capabilities, from 3-D cameras on court,
to new-generation consumer displays. Recently, some of HK 3D cinemas also plan to
co-operate with satellite service providers to broadcast 3D World Cup during the
period in order to attract more football fans to influx into cinemas for this new mode
of consuming.

3D live broadcast shall also be another new developing point of APT satellite
broadcasting/capacity services. Nowadays, more and more consumers require high-
end solutions for the life. Though we don’t have co-operation with any big sports TV
channels at present, it is still worthy to add this into our long-term marketing ongoing
strategy.

HDTV is the trend of TV broadcasting business.

Even international operators look at Asia as their growth market as the use of satellite
in the United States and Europe tends to totally migrate to DTH. Based on the
investigation by Euro Consultant, the number of TV channel delivered by satellite is
expected to increase from 21264 in 2007 to 35663 in 2017. In term of important trend,
the number of HDTV channels is expected to represent 18% of total channels
broadcast, with HD channels ranging from 3% to 39% in different world regions.

HDTV channels broadcast on pay-TV platforms experienced strong growth (95%);

they totaled 658 in 2007 (including local networks in Ka and Ku-band). As a result,
platforms offering HD services increased from 14 in 2006 to 23 in 2007, and a
number of players are still considering the introduction of HD services. In order to
add up to APT TV broadcasting service, proper investment on the HDTV channel
broadcasting service shall be a considerable choice. We could easily find this strong
potential of HDTV services market as below chart:

Suggestions
In conclusion of above, we may possibly reach to these suggestions of APT business
management.

1 Keep a close eye on Asian DTH market.

Since consumer Satellite TV is expected to lead the main stream of world Satellite TV service, DTH
satellite TV service market is worthy to be paid more attention from APT side in future.

2 Consider investing on HD/3D TV satellite service market.

This is based on the ongoing need from broadcasters and service providers. Develop our current
capacity leasing business on HD/Properly adjust transponder arrangement of APSTAR7 seem
considerable from other operators’ recent movements.

3 International Integration and Cooperation shall be a fire-way for us to branch out business in
the world.

Through those cases, AsiaSat + Eurovision, MeaSat + GlobeCast, ABS + KT, TeleSat + SpeedCast,
SES+SOGECABLE, we can see a very intriguing sign that more and more international co-
operation events have been raised between Asian satellite operators and international operators.
Their relationships are not only being defined as supplier-customer, but combined together much
more strategically than before. It reveals a coming trend of satellite service market which
encourages local operators actively going out of their territory to look for more co-operation
business under the world background. In order to crack ways out of Asia, a right partner/co-
operator shall be a key element to be taken into considered first. It is probably the time for APT
to start considering how to browse possibilities to cooperate with other potential partners both
locally and internationally. Aiming to solidify the relationship with APT’s customers, we shall
negotiate under a more long-term sight as well as an international view, price shall not be APT’s
only card on table, a long-vision, win-win mode should be provided instead.

4 Planning out the price/sale policy for APSTAR7 to occupy the market as soon as possible. In sum
of above, we may see the growing trend of ABS orbital occupation progress. There has been
signed of three satellite transactions between KT and ABS with in 12 months, which indicates an
even more violent capacity competition is coming. With various functions of the ABS-2, the
pressure will be exerted onto APT in 2013. We shall accelerate the progress of current
transponder leasing business (updated price policy) about APSTAR 7 in order to occupy the
market as much as possible before ABS launches its new satellite.