Telenor Satellite Broadcasting and the Thor satellite programme

Arne Jørgen Mæland – Director Space Systems Division

www.telenorsbc.com

Who are we?

Broadcast

Telenor ASA

Transmission& Access

Distribution

• Norkring – terrestrial towers

• Satellite Broadcasting• Conax – security and management

All data, source: Telenor, December 2005. Finances in Norwegian Kroner, converted at 31 December 2005

Revenues: $10.6bnEBITDA: $3.7bnMarket Cap: $18.8bnEmployees: 23,400

Mobile (& Fixed Line

•Nordic countries

•Europe

•Asia

•83 million subs

Other units

•Telenor Cinclus

•EDB Business

•Partner ASA

•Telenor Satellite Services

•Telenor R&D

•Telenor Venture

•Telenor New Business

•Telenor EiendomHoldings

TSBc

TSBc vs. TSS

•Part of Telenor Broadcast- one of main business areas of Telenor ASA •Own and operate Telenor Satellites and partly own Intelsat 10-02 •Delivery of quality TV broadcasting services to our customers.•Provision of satellite and terrestrial capacity to resellers•Located at key 1°West position

Vs.

• Part of “other units” in Telenor ASA operations • Owner of the former Comsat Mobile Communications in the USA• Services include, BGAN, Inmarsat and Iridium• Provide VSAT broadband and on-demand communications for mobile, semi-fixed

and fixed satellite solutions. • Purchases satellite capacity from various providers incl. TSBc.

Telenor Satellite Services AS

Telenor Satellite Broadcasting AS

• We are one of Europe’s leading satellite services providers

• Positioning 1° West as key for satellite broadcasting in Europe and the Middle East

• Delivers TV, radio, IP and telecoms services based upon satellites at 1°West and related terrestrial infrastructure.

• Owns and operates two THOR satellite and co-owns Intelsat 10-02.

• Major market: broadcasting services in the Nordics.

Telenor Satellite Broadcasting (TSBc)Our business

For more on TSBc: www.telenorsbc.com

TSBc - Major milestones1992

•Purchase THOR I and move to the 1° West position. •DTH Pay TV Operator established Norway

1995 •Telenor orders THOR II •Introduces the first digital programming at 1° West.

1996/1997•Telenor leases more capacity at the 1° West position on Intelsat 707 •THOR II is successfully launched and nearly every transponder is sold.

1998•THOR III successfully launched to match peak analogue demand and as an experimental platform for business development.

2002•Introduction of IP services over satellite.

2004•Partly owned Intelsat 10-02 positioned at 1°West successfully launched

2005•Telenor contracts with Orbital to build THOR II-R.

Thor II

Thor III

Thor II-R

IS 10-02

2008

2011

2023

2017

15

14

24

7

• Nordic countries• Northern Europe

• Nordic countries• CE Europe

• Nordic countries• Pan Europe• Middle East

• Europe• Middle East

Flexible pan-European DTH footprint

Satellite End of life Transponders Main coverage

Thor replacement program• 2002:

– TSBc defined as non-core to Telenor business and put out for sale

• 2004:– Sales project cancelled in spring of 2004

– New long-term strategy and business plan for new satellite investment approved

• 2005:– Thor II-R RFP released in February

– Telenor ASA Board approval for Thor II-R program

– Thor II-R contract signed September

• 2006:– Planning for Thor III-R

– Release Thor III-R RFP in November

• 2007– Contract Thor III-R Q2 2007

– Thor II-R scheduled to be launched in Q4 2007

• 2008– Thor II EOL Q3 2008

• 2009

• 2010– Launch of Thor III-R at the latest in Q2 2010

– Thor III EOL Q4 2010

Key drivers for Thor II-R procurement

• Delivery in orbit before Thor II EOL

– Thor II-R in service planned for Q1-08

• Approval of business plan

– Replacement of Thor II + organic growth ⇒ 24 transponders

• In orbit diversity

– Buy two satellites instead of one large

Back-up slides

Telenor Broadcast summary of 2005

• Strong subscription growth

• Revenue growth (NOK 5,649 million)

• EBITDA NOK 1,517 million

• Improved EBIT margin for 2005

• Acquired rights to Norwegian football togetherwith TV2

• Contracted new satellite

• Co-owner in NTV and NTV Pluss

• Applied for Norwegian DTT liscence togetherwith TV2 and NRK

• New exclusive distribution agreement withTV2

Transmission, distribution and pay-TV- an important part of Telenor’s history and strategy

• Telephony• Broadcasting• Data communication

Going international

Establish pay-TV offer in Nordics

• Thor Satellites• Established Canal Digital• Purchase of Norkring

Meeting needs

Pioneer in satellite communication

Early implementation of digital networks

• Acquired cable TV

New possibilities

Digitalisation, need for more capacity

• New services• New channels• New distribution

The Digital decade

1970’s 1980’s 1990’s 2000’s

Telenor Broadcast – One of the largestmedia companies in the Nordic region

Retaildistribution

Wholesaletransmission

Services/technology

ThorSatellites

10-02 Satellite

“Leading distributor”

“Supporting infrastructure”

“Complementary assets”

Financialshareholding

“Related assets”

NTVNTV Plus

One of the largest media companies in theNordic region

Telenor BroadcastHolding

NorkringTerrestrial

Network(Norway)

SatelliteBroadcasting

Transponder capacity(EMEA)

ConaxAccess Control(International)

Canal DigitalTV Distribution

(Nordic)

Otrum

Other interests

NTV and NTV Pluss

100% 90%100% 100%

A –pressen45%

33%

33%

Finland

Denmark

Sweden

Norway