Spectrum & the ESAP Process

ATIF - April 16, 2009

Samer Halawi Vice President, Strategic Corporate Development

Inmarsat plc (LSE: ISAT)

Content
Who we are
Not enough spectrum! ATC and ESAP/CGC

Monetization of the ESAP process

Our markets

Dependable global voice & data mobile communications where local networks are unreliable or dont exist MSS market leader in maritime, land, and aero markets 2008 revenues up 13.4% to $635 million, EBITDA up 12.5% to $432 million (68% EBITDA margin) Fully funded with satellite fleet operational into the 2020s
Usage data as at June 2008

Not enough spectrum!

Exploding demand for broadband wireless services, both 2way and broadcast
Congested network capacity
Broadband explosion (smart phones with PC like experience, social networking such as Facebook and Youtube, next generation gaming, mobile broadband applications, bundling and pricing strategies, etc.)

Planned technologies hungrier than ever for spectrum

Limited spectrum availability and lack of harmonization Due to spectrum and business model uncertainty, incumbent operators slow to invest in new infrastructure

Spectrum availability in Europe

Bands 470-862 MHz Digital dividend TV spectrum 880-915/925-960 MHz; and 17101785/1805-1880 MHz GSM bands 1900-1980/2010-2025/2110-2170 MHz 3G bands 1980-2010/2170-2200 MHz MSS bands 2500-2690 MHz 3G expansion bands Comments Top 70 MHz targeted for mobile, but no common agreed timetable or strategy Only GSM and UMTS currently allowed in bands, with very complex sharing between legacy and new technologies Already allocated, with little chance to repurpose l Available, harmonized and auction-free l Best available new band, but no harmonization and auctions expected

ATC licensing in North America

Efficient use of L-band spectrum (reserved for satellite) Extends terrestrial scope and economics to satellite world Allows for deployment of national hybrid networks Fulfillment of USO obligations Gating requirements Requires spectrum coordination amongst different holders Spectrum coordination agreement between Inmarsat and MSV

ESAP process & CGC licensing in Europe

Similar to ATC concept 2 free awards of 30 MHz of spectrum each, through ESAP process MSS pan-European license and local CGC model S-band spectrum at 2 GHz is clean and of premium quality

Hybrid network, technology agnostic

Gating requirements less strict that ATC, with main condition being launch of S-band satellite (300 million over a period of 3 years) translates into a cost of less than $0.02 / PMP

Several monetization strategies

Monetization of the ESAP process

Spectrum play, as preferred business model, or
S-band MSS - 10Mbps downlink speeds to laptop - 500kbps downlink speeds to handheld S-band MSS & CGC - Broadcast audio/video services - Mobile telephony/broadband

MSS Evolution - BGAN on steroids - GSPS evolution

B2G - First responders - Security/military - Integrated comms

Mobile broadcast - Mobile TV -In-vehicle audio and telematics (SDARS)

CGC - 3G/4G 2-way comms - Terrestrial network - Spectrum play

Primarily internal
Evolutionary approach founded on Inmarsats existing services
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Primarily external
Revolutionary approach founded on third party collaborations

Conclusion
Unique opportunity to acquire 30 MHz of clean premium S-band spectrum across all 27 member states of the EC

Entry cost consist of around 300 million payable over 3 years

Flexibility to apply several business models, spectrum play model could deliver very health IRR and cash on cash multiple

Safety net business model delivers a business worth over $800 million, with a range of options in between
Several strategic rationales for potential partners to join Inmarsat on this venture

Inmarsat confidential

Thank you

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