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Global VSAT Forum

Global VSAT Forum Report & Accounts 1999 - 2001

Report & Accounts 1999 - 2001

GLOBAL VSAT FORUM

MISSION STATEMENT

T o act in an independent manner for the general promotion of the global VSAT industry, whether this be technology or service based. The Global

VSAT Forum will represent the best interests of its membership at relevant industry symposia, regulatory and legal consultations and form a single point of contact for any suppliers to the industry or any users of VSAT equipment or services. The Global VSAT Forum’s actions will always be consistent with the promotion and growth of the VSAT industry and its membership.

REGISTERED IN ENGLAND NO. 3414971, a company limited by guarantee REGISTERED OFFICE: 42 HOLYWELL HILL, ST ALBANS, HERTS, AL1 1BX, U.K.

CONTACTS

GVF Secretariat:

Global VSAT Forum 2 Victoria Square Victoria Street St. Albans, Herts, AL1 3TF, U.K. Tel: +44(0)1727 884 739, 513 Fax: +44(0)1727 884 839 Email: david.hartshorn@gvf.org martin.jarrold@gvf.org

GVF Correspondent Offices:

Brasil UNISAT Rua Mexico, 21-Sala 1402-B-Centro CEP. 20031-144-Rio de Janeiro - RJ - Brasil Tel/Fax: +55 21 2532 5123 / 2533 9540 Email: cristovam@unisat.com.br Contact: José Cristóvam Nascimento

Canada John T. Feneley Consulting 18 Fredmir Dollard Des Ormeaux Quebec, Canada H9A 2R2 Tel +1 514 684 7026 Email: jfeneley@attcanada.ca Contact: John T. Feneley

India VSAT Service Association of India 103 Ashoka Estate, Barakhamba Rd New Delhi - 110001 - India Tel: +91 11 335 0633 Fax: +91 11 372 3909 Email: bbhalla@luthra.com Contact: Wg. Cdr. B.G. Bhalla (Retd.) VSM

Indonesia The Indonesian Satellite Association d/a PT. Telekomunikasi Indonesia Tbk JI. Cisanggarung No.2, 2nd Floor, Rm 34 Bandung 40115, Indonesia Tel: +62 22 452 1659 Fax: +62 22 422 0610 Email: arifin_nugroho@attglobal.net Contact: Dr. Arifin Nugroho

Mexico The Mexican Satellite Industry Association Blvd. Manuel Avila Camacho No. 36, Piso 10 Col. Lomas de Chapultepec 11000 Mexico, D.F. Tel: +52 55 284 2534 Fax: +52 55 284 2223 Email: ewallsten@satelitron.com.mx Contact: Ing. Erik R. Wallsten O.

Russia National Assembly of Satellite Communication Bolyshoj Kozlovskij, per., 5, RSCC, for NASC Moscow, 123242 - Russia Tel: +7 095 921 3733, ext. 238 Fax: +7 095 923 4933 Email: AlexanderM@bsh.ru Contact: Alexander Matveev

Sub-Sahara Geoffrey Daniell Telecoms Consulting PO Box 70179, The Willows Pretoria, 0041, S. Africa Tel: +27 12 807 0482 Fax: +27 83 310 3332 Email: daniellgr@inds.co.za Contact: Geoffrey Daniell

West Africa Gilbert Adanusa Communications PO Box AN 8051, Accra, Ghana Tel: +233 21 772 233 Fax: +233 21 224 797 Email: gadanusa@ghana.com Contact: Gilbert Adanusa

GVF Auditor:

MacIntyre Hudson Euro House 1394 High Road London N20 9YZ Tel: +44(020) 8446 0922 Fax: +44(020) 8446 7686

GVF Legal Counsel:

Squire, Sanders & Dempsey Royex House, 17th Floor Aldermanbury Square London EC2V 7HR, U.K. Tel: +44(020) 8446 0922 Fax: +44(020) 8446 7686

Royex House, 17th Floor Aldermanbury Square London EC2V 7HR, U.K. Tel: +44(020) 8446 0922 Fax: +44(020)

CONTENTS

PAGE

Contents

1

Achievements at a Glance

2

The Members

4

Chairmans Introduction

5

Secretary Generals Report

6

Board of Directors

8

Working Groups

10

Membership

12

Representation

14

Deregulation

16

Promotions

20

Financial Statements

22

1

Membership 12 Representation 14 Deregulation 16 Promotions 20 Financial Statements 22 1
1999 & 2000 A JUNE 1999 MAY 1999 APRIL 1999 The Russian government officially recognises

1999 & 2000 A

JUNE 1999 MAY 1999 APRIL 1999 The Russian government officially recognises the GVF as key
JUNE 1999
MAY 1999
APRIL 1999
The Russian government
officially recognises the GVF
as key source on regulatory
reform.
MARCH 1999
SATA, a sub-group of the
Southern Africa Transport
and Telecoms Commission,
invites the GVF to support
VSAT-related reform plans in
the region.
GVF Mutual Recognition
Arrangement is finalised,
enabling faster, less costly
satellite-operator type
approvals.
GVF steps up efforts to
promote reforms that would
permit streamlined VSAT
licensing in 43 European
countries.
OCTOBER 1999
OCTOBER 1999
SEPTEMBER 1999
GVF begins distribution of
second-edition ‘Global VSAT
Business’ industry
supplement.
JULY 1999
GVF Multimedia Working
Group launched to define and
promote role of next-
generation satellite-based
solutions.
GVF provides VSAT policy
seminar for Brazilian
regulatory agency.
GVF Regulatory Working
Group establishes VSAT
policy guidelines for
international regulatory
community.
JANUARY 2000
DECEMBER 1999
GVF efforts thwart
protectionism in Eastern
Europe.
DECEMBER 1999
NOVEMBER 1999
ETSI and GVF develop
Memorandum of
Understanding.
GVF-supported landing-
rights reforms are
implemented in India.
GVF establishes India
Correspondent Office in
conjunction with VSAT
Service Providers Association
of India.
Europe adopts GVF-
supported policy deregulating
VSATs.
FEBRUARY 2000
MARCH 2000
FEBRUARY 2000
GVF Membership surpasses
80 organisations in every
major world region.
UNISAT appointed to lead
GVF’s Brazil Correspondent
Office.
Reform-minded Argentine
regulator requests GVF
seminar.
GVF plans Latin America
VSAT conference.
European nations move to
adopt streamlined licensing
of interactive VSATs.
JANUARY 2000
GVF establishes Russia
Correspondent Office in
conjunction with National
Assembly of Satellite
Communications.
GVF co-ordinates signing of
international multi-lateral
policy agreement.

2

T A GLANCE

APRIL 2000 GVF urges Indian government to initiate further reforms of VSAT sector.
APRIL 2000
GVF urges Indian
government to initiate further
reforms of VSAT sector.
AUGUST 2000 GVF appoints Asociacion de la Industria Satelital Mexicana (ASISAT) to serve as GVF
AUGUST 2000
GVF appoints Asociacion de
la Industria Satelital
Mexicana (ASISAT) to serve
as GVF Mexico
Correspondent.
NOVEMBER 2000 GVF website traffic climbs to ~3,000 hits per day.
NOVEMBER 2000
GVF website traffic climbs to
~3,000 hits per day.
MARCH 2001 South, Central and North American governments unanimously agree to promote co-operation in GVF-supported
MARCH 2001
South, Central and North
American governments
unanimously agree to
promote co-operation in
GVF-supported VSAT
licensing procedures
throughout the region.
VSAT licensing procedures throughout the region. MAY 2000 Middle Eastern administrations seek GVF inputs
MAY 2000 Middle Eastern administrations seek GVF inputs regarding potential liberalisation of VSAT sector.
MAY 2000
Middle Eastern
administrations seek GVF
inputs regarding potential
liberalisation of
VSAT sector.
SEPTEMBER 2000 International VSAT Policy Declaration made available in English, French, Spanish, and Russian through
SEPTEMBER 2000
International VSAT Policy
Declaration made available in
English, French, Spanish, and
Russian through GVF website,
providing access for every
government in
the world.
DECEMBER 2000 GVF Membership reaches 113 companies from 34 countries.
DECEMBER 2000
GVF Membership reaches
113 companies from 34
countries.
MARCH 2001 GVF hosts Chinese delegation to Washington DC and organises high-level Ministry of Information
MARCH 2001
GVF hosts Chinese
delegation to Washington DC
and organises high-level
Ministry of Information
Industry meeting with US
Federal Communications
Commission.
JUNE 2000 GVF stages Latin America VSAT Conference and Regional Membership Meeting in Miami Beach,
JUNE 2000
GVF stages Latin America
VSAT Conference and
Regional Membership
Meeting in Miami Beach,
Florida.
GVF Global Regulatory
Survey is released to
Full Members
of the GVF.
OCTOBER 2000 GVF General Assembly convenes in Amsterdam, and L-band Interface Standard (LBIS) Sub-Group formed.
OCTOBER 2000
GVF General Assembly
convenes in Amsterdam, and
L-band Interface Standard
(LBIS) Sub-Group formed.
COMESA members establish
regulatory authority in
sub-Saharan Africa,
invite GVF support.
JANUARY 2001 GVF runs IP Satellite Workshop in conjunction with China Telecom conference, Honolulu, Hawaii.
JANUARY 2001
GVF runs IP Satellite
Workshop in conjunction
with China Telecom
conference, Honolulu,
Hawaii.
MARCH 2001 GVF begins planning for Arab & African States VSAT Summit to be held
MARCH 2001
GVF begins planning for
Arab & African States VSAT
Summit to be held in Dubai,
United Arab Emirates.

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JULY 2000 European Commission Information Society DG invites GVF members to meetings on measures to
JULY 2000
European Commission
Information Society DG
invites GVF members to
meetings on measures to
improve the business
environment in Russia
and China.
OCTOBER 2000 GVF Mexico Correspondent organises VSAT Regulatory Seminar for incoming Mexican administration.
OCTOBER 2000
GVF Mexico Correspondent
organises VSAT Regulatory
Seminar for incoming
Mexican administration.
FEBRUARY 2001 GVF moderates VSAT regulatory dialogue involving South African Ministry and local industry
FEBRUARY 2001
GVF moderates VSAT
regulatory dialogue involving
South African Ministry and
local industry representatives.
GVF appoints Geoff Daniell
to serve as GVF
Correspondent in South
Africa.
MARCH 2001
Southern Asia
Telecommunications
Regulatory Commission invites
GVF participation in
regulatory meeting, Bhutan.
Indian government agrees
to implement new round
of GVF-backed
VSAT reforms.

LIST OF MEMBERSHIP*

AAE Systems Advantech Aetheric Engineering AFSAT Agilis Communication Technologies Alcatel Anacom Andrew Arabsat ARY group / CMC Engineering Asia Pacific Satellite Magazine Asiasat ASISAT (Mexican Satellite Industry Association)** ASSI (Indonesian Satellite Industry Association)** Astrium Astrolink International Astro Works/AstroExpo.com Boeing Broadband Satellite Magazine BT Cable & Wireless CapRock/IWL Communications Channel Master Clear Channel Codan CommCarrier Communications Center Communication Concepts CompassRose International COMSYS Comtech / EF Data Cyberstar Data Marine Systems Datasat Communications EDGE Communications Emperion Ericsson Componedex Euroconsult EUTELSAT FhG-Fokus. Satcom Flash Networks General Dynamics Geoff Daniell Communications** Gilat Satellite Networks Gilbert Adanusa Consulting** Global Convergence Technology Global Net Global Satellite Exchange Globecomm Systems GS Telecom Gulfsat High Capabilities Technologies Hughes Network Systems Hutchison Corporate Access iDirect INTELSAT Invacom INVSAT Irwin Communications Kingston inmedia Latham & Watkins Latinet Lockheed Martin Global Telecommunications Loral Skynet L-3 Communications Satellite Networks MasterWorks Communications Microspace Communications Mindsprout Technologies Mitsubishi Electric Corporation

Mindsprout Technologies Mitsubishi Electric Corporation 4 MTN Multipoint Communications National Assembly of

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MTN Multipoint Communications National Assembly of Satellite Communication - Russia** ND Satcom NEC NERA NeTrue Vipersat New Skies Satellites Nordic Satellite Norsat International NSI Communications NSN Network Services OmniSpectrum Optus Pacific Century Matrix PanAmSat Paradigm Paradise Datacom ParaGea Communications Patriot Antenna Systems Planet Communications Asia Pradeshta Prodelin Pronet Raven Manufacturing SatNews.com Saudi Inteltec SES Americom SES Global Shiron Satellite Communications Sierracom Signal Mountain Networks Singapore Telecom SNEF Groupe SONEMA SpaceBridge Semiconductor Spacenet Star One Stellat STM Wireless Strategis Stratos Tachyon TeleDanmark Teledesic Teleglobe Communications Corp. Telenor Satellite Services TELEPORT Bulgaria Telespazio Telstra V-Comm The London Satellite Exchange Titan Wireless Transcom Transtel Triaton Tripoint Global UNISAT** United Telesys University of York Verestar Vertex Via Satellite Magazine/PBI Media Viasat Satellite Networks Vicom VSAT Service Providers Association of India** WB Walton Enterprises Worldcom Xantic

Notes: * Full members appear in bold **Asterisk denotes GVF Correspondents

Membership as at 1 February, 2002

CHAIRMAN’S INTRODUCTION

CHAIRMAN’S INTRODUCTION Andrew Werth, Hughes Network Systems “ Competition is a very good thing, but competition

Andrew Werth, Hughes Network Systems

Competition is a very good thing, but competition and co-operation are better.

I think that everyone reading these opening remarks will agree with the first part of this statement; after all, competition is the engine of good business. But what do I

mean by the second part? I am, of course, referring to the kind of co-operation that occurs day-by-day between the companies who, during the last four years, have become members of the Global VSAT Forum.

On 4 June 1997 representatives of 25 companies, all commercial competitors, congregated in London to decide if they were all willing to work together to promote the use of advanced communications network solutions provided via Very Small Aperture Terminals (VSATs).

Four years later, the Global VSAT Forum has more than 130 organisations in membership, representing 37 countries on all the populated continents. Membership continues to grow, with new members joining from all the industry sectors represented by the Forum: satellite operators, VSAT network operators, manufacturers, system integrators, value added and enhanced service providers, carriers, and users. We re pleased to have lawyers, consultants and publishers in membership, too.

So, what is the nature of this co-operation? What has that willingness to work together actually meant? What has been achieved?

Over those four years, the Forum has been the unified voice of the global satellite industry and has succeeded in setting the agenda for discussion with international organisations, national governments and regulatory authorities at a national, regional and global level in matters of licensing, type approvals and conformance.

The Board of Directors, which I have the honour and pleasure of chairing, is supported by representatives of member companies that regularly participate in the activities of the Forums various Working Groups: covering Regulatory matters, the Mutual Recognition Arrangement (on equipment type approvals), Multimedia, Membership and Promotions. Summaries from each of these Working Groups appear in the later pages of this annual report.

Co-operation among member companies has yielded many tangible results. Beyond the major policy gains obtained from working in partnership with modernising regulators, the Global VSAT Forum is positioned as the central point of contact for information both about the industry and for the industry. Its work as an industry watchdog and as a representative body is complemented by major educational and promotional initiatives launched all around the world, and designed to encourage greater awareness of the benefits of satellite communications and especially networks featuring VSAT technology.

I have great pleasure in presenting you with this record of the most recent achievements of the Global VSAT Forum and invite you to consider how you might in the future also contribute to our industrys unified voice.

5

VSAT Forum and invite you to consider how you might in the future also contribute to

SECRETARY GENERALS REPORT

SECRETARY GENERAL ’ S REPORT David Hartshorn, GVF 6 N ever say never with some exceptions.
SECRETARY GENERAL ’ S REPORT David Hartshorn, GVF 6 N ever say never with some exceptions.

David Hartshorn, GVF

6

N ever say never

with

some exceptions. Like never

underestimate what is possible through the combined efforts of a global industry. Take the satellite

communications industry, for example. As of 29 March, 1998, there was still no unified non-partisan voice to represent the industry throughout the world. The industry had not combined its efforts. And the results were painfully apparent:

Most nationsregulations unnecessarily hindered and in many cases prevented - the industrys best efforts to provide essential communications solutions.

For governments interested in regulatory reform of the satellite sector, there was no industry consensus to clearly advise them how to proceed.

And for administrations that still saw no reason to encourage the use of satellite-based services, there was no non-profit organisation with the mandate, credibility or resources to convince them otherwise.

That was just the regulatory front. In global forums, such as the UN, WTO and ITU, or in regional groups like the CEPT, SATTC, APEC, CITEL and others, there was no global industry representation. As a result, key decisions were being made in the absence of unified industry inputs.

The same held true on matters relating to technical co- ordination and standards. And for those who had an interest in simply learning about the virtues of VSAT-based solutions whether they were a potential end user, a would-be service provider, or a government agency there was too often no phone number to call.

All that changed on 30 March, 1998. Thats when the industry said never again. Thats when 27 leading organisations launched the Global VSAT Forum. Thats when the industry began to realise a new level of success.

The first gains came faster than anyone expected, including myself. What we quickly realised was that the primary hurdle to regulatory reform was not always protectionism. Rather, the problem was often that government agencies were simply overwhelmed regarding how best to address satellite communications in the context of trends such as convergence, IP, and broadband.

When the Global VSAT Forum offered to provide a clear guideline on what regulatory refinements were needed to facilitate service provision and thereby help governments achieve vital policy objectives many administrations were delighted. More than a few governments immediately began adapting policies and regulations. The word spread and regulators from literally every major region of the world began contacting the Global VSAT Forum for inputs.

“[Two years ago], we recorded an average of 2,000 hits per day on the association’s website; today, that figure is closer to 9,000.”

SECRETARY GENERALS REPORT

As regards the more conservative administrations, the GVF stepped up its interventions and launched a programme designed to highlight best regulatory practices around the world. A global survey of regulatory regimes was conducted, and this resource has proven instrumental to administrations interested in applying best-practise approaches.

Similar breakthroughs were realised in the technical arena. When a solution was needed to streamline satellite-operator type approvals, a technical framework now known as the Mutual Recognition Arrangement - was established through the Global VSAT Forum. By consensus. In a room full of competitors. Since then, the MRA framework has also begun to be offered to governments as a way of streamlining their type- approvals processes.

Promotional and educational initiatives, meanwhile, took off like a shot. In the GVFs previous Report & Accounts, we recorded an average of 2,000 hits per day on the associations website; today, that figure is closer to 9,000.

In addition, the GVF message reaches approximately 20,000- 30,000 readers of international publications per month. GVF representatives speak before hundreds of government, industry and end-user conference delegates each month. The GVF hosts or supports a seminar or workshop nearly every month and in every region of the world. And the GVF stages informative exhibits in every major region of the world, every year.

The workforce, as it were, is the GVF Membership, which doubled in the first year and doubled again in the second year. Today, the GVF Membership consists of more than 130 leading companies from 37 countries in every major region of the world, and every industry sector.

The strength in our numbers has enabled the global industry to combine expertise drawn from many disciplines from carriers to manufacturers, from operators to value-added service providers, and from lawyers to publishers to consultants. This expert resource has then been applied through the dedication of the Board (see page 8), the commitment of the GVF Working Groups (see page 10), and the frequent-flyer miles of the Secretariat to help advance the industry agenda. Or to put it more directly, to help people obtain access to communications.

Whether its tele-medicine for public health, distance learning for education, rural links for universal access, or IP-based broadband for Internet Service Providers, banks, stock exchanges, oil & gas concerns, automotive dealers, movie theatres, petrol stations, mining operations, or a host of other applications, these are the reasons why this global industry should never be underestimated. Ever.

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or a host of other applications, these are the reasons why this global industry should never
THE BOARD OF DIRECTORS* George Jusaites Olga Madruga- Forti Andrew Stimson T he directors of

THE BOARD OF DIRECTORS*

THE BOARD OF DIRECTORS* George Jusaites Olga Madruga- Forti Andrew Stimson T he directors of the

George Jusaites

THE BOARD OF DIRECTORS* George Jusaites Olga Madruga- Forti Andrew Stimson T he directors of the

Olga Madruga-

Forti

THE BOARD OF DIRECTORS* George Jusaites Olga Madruga- Forti Andrew Stimson T he directors of the

Andrew Stimson

T he directors of the company are delighted with the progress that has been achieved by the Global

VSAT Forum. In particular, the association has been successful in representing and advancing the

VSAT industrys interests in every region of the world. It is strongly expected that this success will

continue well into the future.

George Jusaites, Channel Master (Elected 2 November, 1999)

Broadband Beckons: By 2004, analysts predict that the global satellite broadband market will reach 9 million residential end-users and almost 3 million enterprise sites. This represents astounding growth for the satellite industry in just a few short years. Whether or not you agree with the analystsprojections, Im sure we all can agree that broadband is coming. Some satellite platform providers are preparing program launches as early as the 2002-2003 time frame. What this means to our industry is a myriad of both business opportunities and the problems associated with change. Powerful telecom switches in the sky will provide end-users with a multitude of new services that will cross global borders, replace existing technology with new platforms, and require a volume of manufacturing and equipment installation never before seen in our industrys history. The GVF recognizes that there is much work to be done. With the help of our membership, working groups and strong industry presence we will heed the call to assist in making satellite broadband a success.

Olga Madruga-Forti, Cyberstar (Elected 24 October, 2000)

Policy Progress: The Global VSAT Forums International VSAT Policy Declaration (IVPD) was, and continues to be, a major landmark in the recent history of telecommunications regulatory reform around the world. It created a framework within which the more recent regulatory reform work of the Forum was set. Since the publication of the IVPD, the Forum has produced the VSAT Global Regulatory Survey which sets out the prevailing regulatory conditions in each nation around the globe and draws comparison between this data and the best-practice guidelines that feature in the IVPD. The detailed research data in the Regulatory Survey, building on the ideal-type policy framework set out in the IVPD, constitutes a resource which has

been instrumental in giving regulatory administrations a clearer understanding of the shape and direction of

regulatory reform trends.

administrations have moved forward with their own reforms. In this, and other, aspects of regulatory policy

reform, the Global VSAT Forum continues to be an indispensable partner in its collaboration with industry and governments around the globe.

Moreover, this information has constituted the basis on which many of these

Andrew Stimson, INTELSAT (Appointed as replacement, 1 January, 1999; Re-elected 24 October, 2000)

Information and Application: The Global VSAT Forum works for the benefit of the entire VSAT community end users, solution providers, and policy makers. One aspect of that role is the collection and dissemination of information, from the data comprising a global regulatory database through to market intelligence on communications industry trends. Using diverse means of delivery, from media like the Web and printed publications, through to workshops delivered and meetings attended around the world, the GVF brings this information to bear on one of its other roles, that of promoting and facilitating the use of VSAT- based communications solutions.

Information informs dialogue, facilitates progress. Some form of dialogue affecting the VSAT industry is taking place around the clock, somewhere around the globe: at the World Trade Organisation or the International Telecommunication Union; within regional regulatory organisations; or between national authorities, end-users and their potential service providers. Directed at, and used collaboratively with these forums, this information and how it is applied has contributed to the efficacy of this unified voice of the VSAT community.

8

Larry Whitmeyer Angela Myhre Michael DeWan THE BOARD OF DIRECTORS Larry Whitmeyer, Lockheed Martin Global

Larry Whitmeyer

Larry Whitmeyer Angela Myhre Michael DeWan THE BOARD OF DIRECTORS Larry Whitmeyer, Lockheed Martin Global

Angela Myhre

Larry Whitmeyer Angela Myhre Michael DeWan THE BOARD OF DIRECTORS Larry Whitmeyer, Lockheed Martin Global

Michael DeWan

THE BOARD OF DIRECTORS

Larry Whitmeyer, Lockheed Martin Global Telecommunications (Elected 2 November, 1999)

Point of Presence: In the same way that VSATs facilitate point-of-presence links between widely separated geographic locations, the Global VSAT Forum functions as a worldwide point of presence for its Membership. By enabling its Members to be continually at the forefront of their industrys developments on many fronts, the GVF ensures that an individual Members concerns receive the collective presence and backing of the association. Members know that regardless of their physical location on the globe, they can rely on the GVF to represent their interests with its continual presence at industry events and through energetic sponsorship of key initiatives.

Angela Myhre, Telenor Satellite Services (Elected 30 March, 1998; Re-elected 24 October, 2000)

Education and Promotion: The GVF continues to foster understanding of the role that VSAT-based services

play in the telecommunications industry, and promotes approaches to advance the availability of these services

to consumers, and commercial and government enterprises. Through education and promotion, the GVF has

advocated regulatory and trade principles, and raised the awareness of the industry in political circles, the

press, user groups and associated industries, including IT and Internet. By continuing to advance these

principles, access to vital services will be significantly enhanced at national, regional and global levels -

benefiting administrations, end users and service providers alike. All GVF Members share this educational

and promotional responsibility and commitment.

Michael DeWan, WorldCom (Elected 30 March 1998; Re-elected 2 November, 1999)

The Industry Voice: The VSAT industry competes on a worldwide basis with other telecommunications technologies and, as with any competitive industry, it is vital that the industrys message gets out to the public and to those who can have an impact on our ability to deliver products and services. Communication of the industry position on deregulation, technology, and the suitability of this technology for business and consumer applications can only be influential in the world community if there is a unified voice supported by a significant membership. The GVF fills this industry need. Before the establishment of the GVF, regulators would receive unsolicited comments for regulatory relief from individual firms within the industry. As individual players, these requests failed to receive significant attention, because they did not carry the collective weight of an industry with unified goals.

Today the environment is much different thanks to the prominent position established by the GVF, our Secretary General and a very active membership. Recognition of the GVF throughout the world and acknowledgement of the memberships unity has been borne out by the numerous requests the GVF receives to assist in helping regulators define goals and address country-specific regulatory issues. The GVF enjoys this respect because we are seen as a group willing to cooperate to achieve shared goals. We provide an authoritative voice for the industry and we can provide expertise to all segments of the industry. Great progress has been achieved but much remains to be done. The GVF can continue to successfully pursue the removal of regulatory barriers only if our membership remains actively engaged in the GVF.

* Directors sitting on the Board as at or before 31 March, 2001

9

our membership remains actively engaged in the GVF. ” * Directors sitting on the Board as

WORKING GROUPS

T he Chairs of the Global VSAT Forum Working Groups are pleased to report some of the achievements

made on behalf of the GVF and the industry at large, in their respective areas of responsibility. Their statements are a testimony to the continuing dedication of the GVF Membership as they support the

dedication of the GVF Membership as they support the Annette Purves, New Skies Satellites Susan Gordon,

Annette Purves,

New Skies

Satellites

as they support the Annette Purves, New Skies Satellites Susan Gordon, INTELSAT Ralph Brooker, Andrew Corp.

Susan Gordon,

INTELSAT

Annette Purves, New Skies Satellites Susan Gordon, INTELSAT Ralph Brooker, Andrew Corp. industry agenda throughout the

Ralph Brooker,

Andrew Corp.

Susan Gordon, INTELSAT Ralph Brooker, Andrew Corp. industry agenda throughout the world. Regulatory Working

industry agenda throughout the world.

Regulatory Working Group

While each company views its regulatory know-how and expertise in various countries as part of its competitive edge, the GVF Members have realized the benefits of working together and joining forces on issues of regulatory concern. The competitive strength of the VSAT industry is increased by a common approach. In negotiations with regulators the voice of the GVF can have much more impact and a stronger stand than that of an individual company. About once a month the regulatory experts of the GVF Member companies discuss market-access hurdles and possible GVF actions in a conference call, where updates are also provided on the latest regulatory developments. One of the most important recent projects has been to update and extend the GVF Global Regulatory Database. Originally this database was established in order to allow for a global policy comparison based on the principles of the GVFs International VSAT Policy Declaration. The GVF Regulatory Working Group then decided that it wanted to use this tool also for market access information and to provide for the possibility to create reports based on certain criteria. Many companies are participating in the effort to assess the regulatory situation in every country of the world. Regulatory Workshops that the GVF holds in various countries of the world form an excellent forum for industry, customers and regulators to exchange their views, concerns and experiences and to advocate best- practice principles. Optimum regulatory approaches were promoted during workshops held in countries such as India, Brazil, Russia and Argentina, and they have resulted in substantial improvements in the VSAT regulations. Regulatory advances made in one country or region can then be described and discussed with regulators in other regions with a view toward adoption. Last, but not least, the GVF-RWG has continued to react on short notice to requests for action or intervention by individual member companies or organizations. This activity is ongoing and, based on past GVF successes in every region of the world, promises to gain in importance to the global VSAT community.

Publicity and Promotions Working Group

On a daily basis, the Global VSAT Forum message is heard around the world. Simply put, that message contains

a unified industry statement that VSAT-based satellite networks can provide a cost-effective solution for the

delivery of Internet, video, voice and data services to millions of end-users worldwide. The GVF Publicity and Promotions Working Group has been effectively communicating our message by targeting the publications, speaking venues, workshops, trade shows and conferences where the decision makers are present. During this past year, the GVF participated in more than 30 industry events on a local, national, regional and global basis. Our new Regional Correspondents keep a finger on the pulse of activity, participating one-on-one with the local governments, regulators and end-users. In addition, numerous magazines, newspapers and newsletters have brought the GVF membersmessage home with articles appearing in millions of editions distributed worldwide in a myriad of languages.

Through strategic linking, the GVF website has tripled the number of hits-per-day to over 8,000 and the GVF site

is now listed as one of the top sites by the major Internet search engines. Located at www.gvf.org, this useful

industry tool not only provides our members with special benefits, but also serves as a valuable reference and information center for governments, regulators, potential customers, journalists and educators alike to learn about the global VSAT advantage.

Mutual Recognition Arrangement Working Group

The MRA Working Group charter is to define procedures and standards for earth station equipment type approvals issued by satellite operators. The group maintains an email discussion list with approximately 50 participants and holds meetings several times per year. At an October 2000 meeting in Amsterdam, for example, it was announced that Channel Master had become the first to use the MRA procedure for multiple type approvals using a single test data package. Also during the meeting, final edits to revision C of the MRA procedure (GVF-101) were debated and agreed upon. Revision C was subsequently ratified by the GVF board of directors and is in effect. The document is available to the public for download at www.gvf.org.

10

WORKING GROUPS

Meanwhile, establishment of an L-band Interface Standard (LBIS) has been identified as a priority, and an MRA sub-group has been established to set an industry standard for the interface between L-band modems and outdoor block IF upconverter/SSPAs. An email discussion list and web site have been created, and a draft standard is under review. The MRA Working Groups work also is being applied to regulatory agency type approvals. The GVF has begun to recommend that regional and national governments use the MRA to streamline homologation procedures. Meetings held with the regulatory agencies of India and the U.S. have set the stage for an expanded introduction of the concept throughout the world. The group has other ongoing objectives, including convergence of performance standards and the effective treatment of type approvals in the context of Ka-band services. On this latter point, the MRA Working Group most recently held a meeting at the 7th Ka-Band Utilization Conference in Santa Margherita Ligure, Italy. As next- generation VSAT systems are readied for launch, this dialogue will gain in importance, paving the way for more efficient deployment of services.

the way for more efficient deployment of services. ” Angela Myhre, Telenor Satellite Services Larry Whitmeyer,

Angela Myhre,

Telenor Satellite

Services

of services. ” Angela Myhre, Telenor Satellite Services Larry Whitmeyer, Lockheed Martin Global Telecommunications

Larry Whitmeyer,

Lockheed Martin

Global

Telecommunications

Multimedia Working Group

The rapid introduction of digital technologies has repositioned satellites as a viable complement and in some cases alternative - to terrestrial technologies providing video and multimedia services to businesses and consumers. As the number of Internet users and applications continues to grow, the telecommunications infrastructure is struggling to provide sufficient bandwidth. Although terrestrial technologies are being deployed, it is most likely that there will be many areas without broadband access. As a result significant investment will be required to upgrade networks to support the new demands. The VSAT industry expects broadband, IP-based satellite solutions for Internet, intranet and multimedia applications for customers to represent an increasing proportion of the market in future years. The future VSAT industry will use broadband, IP-based satellite solutions to reach and service its clients and customers. For the VSAT industry, broadband also represents a new playing field, with an increasing number of competitors and an ever-decreasing margin on traditional VSAT services as the inevitable result. The GVF Multimedia Working Group monitors these trends, with an eye for regulatory implications and educational awareness needs. During year 2000, the GVF Multimedia Working Group identified four interest groups - IT industry, Regulatory, Media/Press and Internet - which we believe would benefit from an educational awareness programme. The objective of the programme is to address the interest group's concerns with respect to

broadband, IP-based satellite solutions. White papers were drafted and are now under review.

year, the Working Group, in co-operation with the Publicity and Promotions Working Group, plans to use the 'Industry Voice' to make sure our message is heard, and to secure our role in the evolving broadband business.

In the coming

Membership Working Group

Expanded GVF Membership and the enhancement of Member benefits were the Membership Working Groups (MWGs) two primary efforts over this past year. Recognizing that more Members were desired from the key growth regions of Asia, Latin America and Middle East/Africa, MWG and GVF staff energy was focused on reaching potential Members from these areas and spreading understanding about the GVFs role and function in the satellite industry. Potential Members were personally contacted by working group members, GVF Affiliate Members in the regions, and/or the GVF staff, with invitations to join ranks with their industry colleagues. Key industry events in each of these regions were targeted in order to maximize GVF exposure. As an example, during Telexpo Brasil 2001 in São Paulo, an invitational dinner (sponsored by LMGT) was held to educate selected companies about the GVF, and to hear their concerns regarding the VSAT business. These efforts resulted in an overall increase in GVF Membership from last year. Even so, near-term focus on these regions will continue. At the same time, the MWG worked with the GVF staff and Board of Directors in searching for initiatives that could enhance value of GVF Membership. These efforts resulted in the adoption and implementation of several items, including: annual fee discounts for sponsoring a new Member or upgrading from Associate to Full Membership, creation of a Member Spotlightfeature on the GVF website for Full Members, development of a GVF Membership Directory to be published annually, and instituting special workshop awareness/focus on specific VSAT-related issues through solicitation from Members. Another key development was the establishment of a special Affiliate Member category to encourage Members of GVF Correspondent associations to join the GVF. Of course, endeavors such as these are merely a part of the continuous growth process that an active organization such as the GVF experiences. Through Member input and feedback, the Membership Working Group will continue to work in concert with the GVF staff to expand and strengthen the organizations reach and impact globally.

11

to work in concert with the GVF staff to expand and strengthen the organization ’ s

M E M B E R S H I P B Y C O M PA N Y

MEMBERS 98 99 00 01 130 120 110 100 90 80 70 60 50 40
MEMBERS
98
99 00
01
130
120
110
100
90
80
70
60
50
40
30
20
10
0
MARCH
MARCH
SEPT
DEC
80 70 60 50 40 30 20 10 0 MARCH MARCH SEPT DEC F our years

F our years ago, a group of less than 30 satellite industry leaders had a vision. They realised that they had an opportunity to address the regulatory and market-access

pressures that both service and product providers were facing throughout the world. An organisation established to draw upon the combined strengths of the industry, and that would provide a single, unified voice for the satellite communications community would be a bold and innovative move and they did it.

At mid-July 2001 the Membership had reached 121 organisations from 35 countries in every major region of the world. By the fourth quarter of 2001, the Membership was 130 companies, and counting.

That the industrys resolve to stand together had an immediate effect was noted in the previous Annual Report, and this effect continues on ever broader and deeper levels. An increased Membership has combined in an even greater body of expertise from right across the range of the VSAT community, an expertise manifest in all the varied facets of the Forums work and as described in this Report.

Our newest Members join the established ones in enjoying an enhanced range of Membership benefits identified by the Secretariat and the Membership Working Group. These benefits are presented in more detail in the report of the Chairman of the Membership Working Group within this Report, and include membership fee discounts, GVF trial memberships, special focus groups, a new Affiliate Membershipcategory, discounts for membership in GVF Correspondent Associations, and an annual Membership Directory.

The Global VSAT Forum is now firmly recognised as the VSAT industry representative voice at the tables of various national, regional and international satellite communications authorities, as a successful collaboration of previously unfocussed interests. But, more than for just the record, it is important to highlight the Founder Members, who continue to support the GVFs shared vision:

BT

Full Founder

Cable & Wireless

Full Founder

COMSYS

Associate Founder

Cyberstar

Full Founder

EUTELSAT

Full Founder

Gilat Satellite Networks

Full Founder

Gulfsat

Full Founder

Hughes Network Systems

Full Founder

INTELSAT

Full Founder

Lockheed Martin

Full Founder

Global Telecommunications NEC

Full Founder

SES-Global

Full Founder

SNEF Groupe

Associate Founder

Spacenet Inc.

Associate Founder

STM Wireless

Full Founder

Telenor Satellite Services

Full Founder

Telstra V-Comm

Full Founder

Triaton

Associate Founder

ViaSat

Full Founder

VSAI of India

Associate Founder

Worldcom

Full Founder

12

* Founders as at 1 February, 2002

COUNTRIES 98 99 00 01 40 35 30 25 20 15 10 5 0 MARCH
COUNTRIES
98 99 00
01
40
35
30
25
20
15
10
5
0
MARCH
MARCH
SEPT
DEC

MEMBERSHIP BY COUNTRY

G lobal worldwide, wide-ranging, all embracing, all

good definitions of this too easily over-worked

adjective, but in this spirit the Global VSAT Forum is

wholly true to its name, as intended by its Founding Members.

The original group derived from 11 countries across five regions of the globe; already an international organisation, the objective was to assert and to maintain its non-partisan and non-aligned status.

As it has grown in size and in influence, the Global VSAT Forum has consistently maintained this status, regarded not only as an essential adjunct to its global presence, but vital because so much of that presence is manifest in the form of the individual member companies.

Over and above the work done around the globe by the Forums Secretariat, many initiatives have been developed by, and a great deal of effort expended by, those with local credentials and local expertise. Those companies would only choose to be associated with an organisation that was recognised to have no regional or national alignments or bias. That the work of these local companies in advancing regulatory reform and in promoting VSAT-based solutions has been recognised as successful is further testament to the universal acknowledgement the GVFs global status.

Collaboration with our Correspondent Members - in Brazil, India, Indonesia, Mexico, South Africa, and Russia - together with the efforts of those individual organisations on the ground within their own national and regional contexts, has given even greater weight to the efforts of the Forum. Their input has contributed even greater leverage to the work of introducing greater liberalisation to the telcoms sector in these major world regions.

All of this reflects the true and central strength of the Global VSAT Forum. As new Members join the Forum, either from nations already represented or as the first to represent their respective national market, the level of regional participation grows broader, providing progressively further enhancement to our ability to provide solutions that make sense on a national, regional or global level.

13

further enhancement to our ability to provide solutions that make sense on a national, regional or

REPRESENTATION

BELGIUM

REPRESENTATION BELGIUM Made substantial contributions to Comprehensive Satellite Initiative in co-ordination with SAP-REG

Made substantial contributions to Comprehensive Satellite Initiative in co-ordination with SAP-REG group to promote implementation of CEPT reforms in Europe. Also participated regularly in SAP- REG meetings and addressed other EC regulatory events.

SAP- REG meetings and addressed other EC regulatory events. S ome form of activity that is

S ome form of activity that is likely to shape the VSAT industrys future is taking place in pu globally, regionally and nationally. One of the top objectives of the Global VSAT Forum GVF also updates the Membership on key developments, co-ordinates the provision of ind

representation established by the GVF are noted below.

UNITED STATES

GVF fought to preserve VSAT spectrum from advances made by terrestrial wireless lobby at Federal Communications Commission. Also began working with FCC regarding endorsement of GVF MRA to streamline VSAT type-approvals processes.

of GVF MRA to streamline VSAT type-approvals processes. AMERICAS Having supported CITEL ’ s establishment of

AMERICAS

Having supported CITELs establishment of a VSAT licensing database for the region, served as catalyst during meetings in Panama and Ottawa to advance harmonisation of VSAT regulations throughout South, Central and North America.

MEXICO

GVFs Mexico Correspondent, Asociacion de la Industria Satelital Mexicana, held VSAT Regulatory Workshop for incoming government to promote deregulation. Mexico has begun opening its market to foreign satellite operators.

COSTA RICA

Confirmed Member of Costa Rican legislature as keynote speaker to open the GVF 2000 Latin America Conference. The theme:

VSAT reform in Central America.

VENEZUELA

In response to call for GVF comments, provided consensus-based guidelines on reforms needed to ensure effective VSAT-based services in Venezuela. New legislation enacted.

LATIN AMERICA

GVF launched regional VSAT conference in Miami involving government officials, service providers and end users. Event served as key forum for business and regulatory dialogue.

served as key forum for business and regulatory dialogue. BRAZIL As follow-up to successful 1999 GVF

BRAZIL

As follow-up to successful 1999 GVF VSAT Regulatory Workshop with Brazilian regulator, provided detailed data related to how other administrations have implemented blanket licensing. Brazil has now begun issuing blanket licenses for VSATs.

Brazil has now begun issuing blanket licenses for VSATs. ARGENTINA Conducted Regulatory VSAT Workshop for the

ARGENTINA

Conducted Regulatory VSAT Workshop for the Argentine regulatory agency, CNC; provided inputs to CNCs Secretary of Communications urging adoption of blanket-licensing and relaxed landing-rights regulations to facilitate VSAT service provision. Thereafter, CNC implemented partial reform.

14

PORTUGAL

Government approached regarding Portugals imposition of extremely high VSAT licensing fees.

’ s imposition of extremely high VSAT licensing fees. EASTERN CARIBBEAN Supplied examples of best-practice
’ s imposition of extremely high VSAT licensing fees. EASTERN CARIBBEAN Supplied examples of best-practice
’ s imposition of extremely high VSAT licensing fees. EASTERN CARIBBEAN Supplied examples of best-practice
’ s imposition of extremely high VSAT licensing fees. EASTERN CARIBBEAN Supplied examples of best-practice

EASTERN CARIBBEAN

Supplied examples of best-practice regulation and overview of global reform trends to newly-formed ECTEL group, charged with national-level reform throughout the region.

GREECE

GVF submitted comments related to improvements needed in VSAT regulatory regime.

NIGERIA

to improvements needed in VSAT regulatory regime. NIGERIA Following dialogue with GVF, national regulatory agency

Following dialogue with GVF, national regulatory agency partially deregulated use of satellites by ISP sector.

ZAMBIA

GVF staged VSAT seminar in conjunction with COMESA- EU communications conference.

BOTSWANA

GVF provided industry input on regional satellite spectrum policy and regulatory-reform trends to SATTC. Plans underway to hold VSAT regulatory seminar.

NNepalepal

blic- and private-sector forums almost continually. These dialogues are underway at every level has been to establish and maintain representation for the industry in all such gatherings. The ustry-related data, and involves companies with relevant expertise. A few examples of

REPRESENTATION

DENMARK Having encouraged establishment of One Stop Shop satellite licensing facility by ETO (www.eto.dk), the
DENMARK
Having encouraged establishment of One Stop Shop satellite licensing facility by ETO
(www.eto.dk), the GVF promoted implementation by administrations of legislation needed to
activate Combined Application Form.
FINLAND
Participated in – and was major contributor of documentation for – CEPT
meeting related to regional licensing reform for interactive VSATs. It has
now been adopted by CEPT and implemented by Austria, Czech
Republic, Denmark, Finland, Luxembourg, Netherlands, Norway,
Switzerland. Others are pending.
PAKISTAN
Meetings and dialogue held
with government relating to
Union of Soviet Socialist Republics
SAUDI ARABIA
planned liberalisation of
VSAT sector, including
introduction of international
VoIP via satellite.
introduction of international VoIP via satellite. RUSSIA Russian VSAT Seminar organised for

RUSSIA

Russian VSAT Seminar organised for government/industry together with local GVF Correspondent, National Assembly of Satellite Communications. Expedited VSAT licensing process implemented thereafter.

Supplied data related to best-practice VSAT regulation implemented by other administrations around the world. Licensees have been short-listed to provide first competitive VSAT services in nations history. Independent regulator established.

SOUTH KOREA

Jointly signed memorandum with APSCC to advocate VSAT-related policy reform. Thereafter, began co-ordinating promotion of Open Skies for VSATs in Asia Pacific.

promotion of Open Skies for VSATs in Asia Pacific. UNITED ARAB EMIRATES Initiated planning for Arab
UNITED ARAB
UNITED ARAB

EMIRATES

Initiated planning for Arab & African States VSAT Summit, to be held in Dubai.

CHINA

Meetings held with MII in Beijing regarding regulatory reform. Hosted MII delegation to Washington, where joint meeting was held at FCC. Plans underway to hold follow-up VSAT regulatory seminar for MII in Beijing.

BHUTAN

Addressed SATRC regulatory group regarding national- and regional-level VSAT reform trends.

INDIA
INDIA

MYANMAR

Provided regulatory guidelines to government.

JORDAN

Provided information related to liberalisation of VSAT sector. Jordanian government expects to implement new Telecom Law providing for partial liberalisation of VSAT sector.

Law providing for partial liberalisation of VSAT sector. THAILAND In meetings and official presentations, proposed

THAILANDLaw providing for partial liberalisation of VSAT sector. In meetings and official presentations, proposed

In meetings and official presentations, proposed development of VSAT licensing database by Asia Pacific Telecommunity.

SINGAPORE

Encouraged government advocacy of VSAT services, which was followed by issuance of new licenses.

services, which was followed by issuance of new licenses. 15 Meetings, seminar and other contact with

15

Meetings, seminar and other contact with DoT, TRAI and ISRO related to implementation of direct-satellite-access policy for ISPs, that was implemented in 2000. Subsequent round of dialogue related to fees, data rates and interconnection resulted in implementation of further reforms.

resulted in implementation of further reforms. KENYA Regulatory guidelines provided to goverment. Partial
resulted in implementation of further reforms. KENYA Regulatory guidelines provided to goverment. Partial
resulted in implementation of further reforms. KENYA Regulatory guidelines provided to goverment. Partial

KENYA

Regulatory guidelines provided to goverment. Partial liberalization enacted in 2001.

SOUTH AFRICA

Regulatory Workshop held in Midrand involving Ministry. Joint public/private-sector consensus achieved regarding deregulatory action plan. Follow- up continues.

African States VSAT Summit held during ITU Africa in 2001.

regarding deregulatory action plan. Follow- up continues. African States VSAT Summit held during ITU Africa in

DEREGULATION - EUROPE

DEREGULATION - EUROPE T he Global VSAT Forum ’ s approach in Europe has evolved. Whereas

T he Global VSAT Forums approach in Europe has

evolved. Whereas the associations top priority was

advancement of pan-European satellite policy principles -

several of which are now successfully adopted - the GVF has turned more attention to advocating implementation of those

principles by national administrations.

This advocacy has facilitated unprecedented progress: When the GVF was first launched in 1998, streamlined licensing of VSAT services was not implemented anywhere in Europe; as this publication went to press, a dozen countries had implemented streamlined licensing regimes for VSATs, either for receive-only terminals, interactive systems, or both.

These licensing gains followed the adoption in 2000 of regional policy principles by the European Conference of Posts & Telecommunications (CEPT). They are divided into four Decisions, which have been implemented in the following countries, as follows:

Receive-Only Earth Stations ("ROES" Decision):

Austria, Czech Republic, Denmark, Estonia, Finland, France, Ireland, Latvia, Netherlands, Norway, Poland, and the U.K.

Ku-band Interactive Earth Stations ("VSAT" Decision):

Czech Republic, Denmark, Finland, Luxembourg, the Netherlands, and Norway.

Ka-band Interactive Earth Stations ("SITs" and SUTsDecisions): Austria, Czech Republic, Denmark, Finland, Luxembourg, the Netherlands, Norway, and Switzerland.

As European administrations have been implementing improved licensing regimes, the GVF has been advising governments in Asia, Latin America, the Caribbean, Africa and the Middle East on how to take advantage of similar light-touchapproaches to VSAT regulation.

A key part of this process has involved arranging VSAT

regulatory meetings between European regulators and their counterparts in other regions. High-level officials from the European Commission, CEPT and national administrations have been integrated into GVF regulatory programs in Beijing, Brasilia, Buenos Aires, Miami, Moscow, and Washington, D.C., where progressive reform was advanced.

The current implementation status of satellite-related CEPT Decisions and Recommendations can be seen at www.eto.dk where, in addition to updates, an information bank has now been established for One Stop Shop access to VSAT licensing information relating to many of the 43 European CEPT administrations.

The same web site also includes a Combined Application Form that will enable a VSAT license applicant to file electronically

to any combination of European regulatory administrations

with a single form. The GVF is urging European administrations to take the steps necessary to implement this valuable system.

Meanwhile, in large part due to the energies of the GVFs Russia Correspondent, Alexander Matveev, Moscow has implemented an expedited VSAT licensing procedure for

VSATs used in conjunction with the Express satellite constellation. Matveev, who also serves as Executive Director

of Russias National Assembly of Satellite Communications, is

working with the GVF to have expedited licensing applied more broadly.

16

DEREGULATION - MIDDLE EAST & AFRICA

DEREGULATION - MIDDLE EAST & AFRICA P olitical instability, monopolistic practices, insufficient other Middle Eastern

P olitical instability, monopolistic practices, insufficient

other Middle Eastern and African barriers, the Global

financingdespite the seeming intractability of these and

VSAT Forums Annual Report for 1998-99 noted tremendous potential for regulatory progress in both regions.

We havent been disappointed. National administrations have continued to gradually remove regulatory responsibility from the PTTs and commercialisation of the telecom sector has stimulated further market opening. This has helped drive Middle Eastern and African demand for VSAT-based services, both from the private and public sectors. And that, in turn, is driving the new regulatory agenda.

We are interested in liberalising the VSAT sector. What do you suggest?

Thats what representatives of several Middle Eastern and African governments asked during calls made to the Global VSAT Forum. Several months later, one such government had short-listed five VSAT licensees the first ever to provide competitive VSAT service in the country - and created an independent regulator.

Are they an isolated case? Not hardly. In North Africa, Morocco awarded several VSAT licenses to operators, initiating the first VSAT-based competition in that nations history. And as this report went to press, the Jordanian government which also co- ordinated closely with the GVF - confirmed that they have completed a draft Telecom Law that includes new provisions for VSAT-based competition.

Further south, in markets like Botswana, Malawi, Mozambique, Swaziland, Uganda and Zambia, the governments have implemented partial deregulation of the VSAT sector, permitting local service provision by national and international players. And in South Africa where the GVF has appointed Geoff Daniell to serve as local Correspondent the administration has created an independent regulator.

Meanwhile, the GVF has been working hard and fast to facilitate further gains in both regions. A sampling of activity:

Pan-Africa & the Middle East: The GVF began planning the Arab & African States VSAT Summit to be held in Dubai. The complimentary event will serve as a forum for end users, industry and governments from throughout both regions to embrace the use of satellite-based services.

West Africa: The GVF began working with the West African Telecommunications RegulatorsAuthority (WATRA), which was recently created to co-ordinate regulatory and policy issues.

Sub-Saharan Africa: GVF regulatory meetings and seminars were held at the COMESA Trade Fair in Lusaka, Zambia; Johannesburg, South Africa; and Nairobi, Kenya. The GVF continued its support of the Southern Africa Transport and Communications Commission.

17

and Nairobi, Kenya. The GVF continued its support of the Southern Africa Transport and Communications Commission.

DEREGULATION - ASIA

DEREGULATION - ASIA 18 T hink global, act local. The truth of this truism was put

18

T hink global, act local. The truth of this truism was put to the test in Asia during 1999/2001, with local industry groups increasingly serving as the Global

VSAT Forums standard bearers at the national level.

First among these has been the VSAT Services Association of India (VSAI) which, in addition to its long-standing position as a Founding Member of the Global VSAT Forum, was appointed to serve as the GVFs India Correspondent. In this role, VSAI served as a primary liaison between the GVF and the Indian government on key regulatory initiatives.

In Southeast Asia, meanwhile, the Indonesian Satellite Association (ASSI) was appointed to serve as the GVFs local Correspondent and, further north, a similar strategic relationship was established with the newly-formed China Satellite Forum in Beijing.

The value of local presence became readily apparent in January 2000, when the Indian government implemented a GVF-supported policy that for the first time in the nations history permitted Internet Service Providers with international gateway licenses to directly access any satellite in the orbital arc, and allowed provisional use of non-Indian satellite capacity to address local demand for VSAT services.

Implementation of the policy, which was first drafted with the government 18 months prior during a regulatory workshop organised jointly by VSAI and the GVF, resulted in immediate provision of new services throughout the country. (Indeed, as this report went to press, another contract was signed by a major satellite operator.)

But thats just one example. Since then, the GVF Regulatory Working Group has been involved in numerous interventions, delegations, and meetings with the Indian and indeed, with numerous national and regional Asian regulatory organisations, including:

China: The GVF organised a delegation from Chinas Ministry of Information Industry, which held a high- level meeting with the U.S. Federal Communications Commission in Washington, D.C. The agenda:

Regulatory reform of the VSAT sector, particularly as it relates to the World Trade Organisations Telecom Trade Agreement.

India: Following the above-noted breakthrough in India, New Delhi responded favourably to further GVF/VSAI interventions, announcing that it would: Elevate the ceiling on VSAT data rates from 64 Kbps to 512 Kbps; permit interconnection of VSAT-based closed-user-group networks; and provide for licensing-fee reductions.

Pan-Asia: The GVF has led the establishment of a consensus amongst satellite operators active in the Asian region to jointly advocate national-level Open Skies policies for domestic and international VSAT services.

DEREGULATION - AMERICAS “ D eregulation within the Americas poses a striking dichotomy. ” So

DEREGULATION - AMERICAS

D eregulation within the Americas poses a striking dichotomy.

So ran the opening sentence in this section of the 1998-1999 Annual Report, emphasising the distinction between the light touchof North American regulation and the burdensome restrictions on the use of VSAT-based solutions in certain Latin American nations. But even then, the rules were beginning to be redrawn.

More recently, the regional group of regulators serving South, Central and North America - the Inter-American Telecommunication Commission (CITEL) - has taken ground- breaking steps towards GVF-supported harmonisation of VSAT regulation throughout the two American continents.

As this publication went to press, a CITEL sub-group was finalising a report that recommends the implementation of a comprehensive VSAT programme for the region, with the objective of facilitating earth station licensing in each country. The draft report was supported by GVF involvement in Panama- and Ottawa-based CITEL meetings, and it is to be formally presented at a CITEL gathering in Mexico.

This initiative expands upon another GVF-supported CITEL programme that was implemented in year 2000: the establishment of a regional VSAT licensing database administered by the Organisation of American States, in which numerous countries have provided direct access to their regulatory requirements. This on-line facility has enhanced transparency throughout the region and enables industry to more effectively provide VSAT-based communications. (Interested parties are welcome to visit the site at

www.citel.oas.org/pcc3/vsat/vsat_information_of_licensing.htm)

Important strides also were taken at the national level:

Brazil: Following a GVF Regulatory Seminar held for Anatel - Brazils regulatory agency - blanket licensing of VSATs has been implemented in the country. The new regulation, which applies to Ku-band services, is a major step forward for Brazil and sets an important example for other administrations throughout the region. The GVFs Brazil Correspondent, UNISAT, played an important role in co-ordinating with Anatel.

Mexico: During an event hosted by the GVFs Mexico Correspondent, Asociacion de la Industria Satelital Mexicana (ASISAT), the incoming administration of Mexico learned of the strategic contributions that the satellite industry makes in the national and international arenas. ASISAT, which is Mexicos non-profit satellite industry association, organised presentations and a key speech from the GVF Secretary General for local industry and leading government officials - who recently issued licenses to foreign-owned satellite service providers.

Venezuela: The GVF Regulatory Working Group provided a consensus-based document to the Venezuelan government, advising them of constructive VSAT regulatory approaches, which were taken on board in the nations reform process.

19

advising them of constructive VSAT regulatory approaches, which were taken on board in the nation ’

PROMOTIONAL PROGRAMMES

PROMOTIONAL PROGRAMMES I n more than three years of operations - during a period of tremendous

I n more than three years of operations - during a period of

tremendous change in the VSAT industry and throughout the

telecommunications sector - the promotional work undertaken

by the Global VSAT Forum has grown significantly. Reflecting this, and the consequent expanding workload of the Publicity and Promotions Working Group, the P&PWG now has two co-Chairs, with George Jusaites of Channel Master having joined forces with Susan Gordon of Intelsat at the helm in the third quarter of 2001. A report from Susan Gordon features separately in this Report (see p.10). The Web Amongst its other efforts, the Working Group is presently focusing most closely on GVF event branding, the new Membership Directory, and the GVF web site. In respect of the latter, the web site is now receiving in excess of 8,000 hits per day with some individual member organisations receiving thousands of hits linked from www.gvf.org. Followed by the home page, most hits are received by the GVF Membership List (hotlinked to Membersweb sites), closely followed by the Communications Solutions section, comprising VSAT case studies submitted by member organisations. The increase in traffic to www.gvf.org has been strengthened by seeding the site at many of the worlds most frequently consulted search engines. These include: Excite, AoL, Google, Lycos, Webcrawler, GoTo, AltaVista, Looksmart, MSN and Netscape. Meanwhile, the P&PWG is concentrating on new web site features and means by which eyeball trafficcan be increased yet further. GVF Members are invited to submit their ideas on this initiative to the Working Group via the Secretariat.

GVF Membership Directory At time of writing, a major new GVF publishing venture was firmly underway in co-operation with Satnews Publishers. The Global VSAT Forum Members Directory follows on from the published editions of Global VSAT Business in 1998/99 and 2000, but will feature more member organisation information, thereby becoming a substantial data resource both for members and for GVF industry promotions. Other Publications The Secretary General - and now also the Director for International Programme Development - continues to secure additional regular feature columns in publications around the globe. Articles written by the Secretariat complement those produced by Member organisations, and anyone interested in contributing articles for possible submission to these publications under the GVF banner should contact David Hartshorn or Martin Jarrold. All Around the World The GVF now stages industry events in every major region, every year. For example, with the current regulatory and business climates in the African region continuing to improve, much of the GVFs promotional efforts associated with events were focused on launching the African States VSAT Summit in Johannesburg, during ITU Africa in November 2001. The Summit attracted strong attendance from a wide range of public and private sector executives, including diplomats, regulators, NGOs, satellite service and system providers, Internet professionals, end users and a host of others from Africa, the Middle East, Asia, North America, and Europe. During the Africa Computing & Telecommunications (ACT 2001) Conference and Exhibition in Pretoria, as well as conducting two scheduled workshops, Martin Jarrold, the GVFs new Director of International Programme Development, was interviewed for Summit TV, a pan-African satellite business channel. As well as general promotion of the VSAT industry, the then upcoming GVF African States Summit featured strongly in the discussion that was broadcast both during and after ACT.

20

PROMOTIONAL PROGRAMMES As for the Middle East, plans relating to an Arab States VSAT Summit

PROMOTIONAL PROGRAMMES

As for the Middle East, plans relating to an Arab States VSAT Summit had been unveiled to key communications organisations in Casablanca on 17th April 2001, during the Annual Meeting of

Arabsat. The event is tentatively scheduled for the fourth quarter

of 2002 in Dubai, in conjunction with the GITEX Conference and

Exhibition.

Other conference and exhibition activity for the period August 2000 through to June 2001 is listed below, but worthy of significant note is the CommunicAsia event in Singapore. The GVF was joint organiser of a two-day satellite conference with Singapore Exhibition Services (SES). This is a major event in the Asia Pacific calendar and we will again be working closely with SES for the show in 2002, to include GVF workshops and the main conference. As well as jointly organising such events, the GVF continues to endorse conferences and exhibitions run by specialists in the field, including Telexpo Brasil, Satellite 2002, China Satellite, Convergence India, SatCom Africa and many others.

A sampling GVF-supported Conferences and Meetings from

August 2000 to June 2001 is as follows:

Europe

ET-SAG, Sophia Broadband 2000, Paris GVF Government Meetings, Satellite Russia, Moscow Broadband Via Satellite, Amsterdam SAP-REG Meeting, Brussels Sviaz, Moscow Mediacast, London VSAT 2001, London JPT-SAT Meeting, Bergen EU Legal Conference, Brussels Satellite Broadband Conference

M. E. & Africa

African Telecoms & Broadcast, Sun City GVF Africa VSAT Workshop, Sun City Satcom World Africa, Johannesburg EU-COMESA Co-operation Week, Lusaka Cairo Telecomp, Cairo GVF Africa VSAT Workshop, SatCom Africa, Midrand Middle East Telecoms, Dubai Arabsat Annual Meeting, Casablanca

Asia

Rural Telephony 2000, New Delhi India Telecom, New Delhi China Satellite 2000, Shenzhen ITU Asia, Hong Kong APSCC, Seoul GVF China VSAT Workshop, Honolulu Regional RegulatorsMeeting, Bhutan Convergence India, Delhi GVF Government Meetings, Delhi VSAT-Internet India, Mumbai CommunicAsia, Singapore Asia Pacific Satellite Communication Conference, Singapore

Americas

Telelink 2000, Sao Paulo CITEL Regulatory Meeting, Panama GVF Industry Dinner, Telexpo, Sao Paulo GVF Conference Sessions, Satellite 2001, Washington DC Supercomm, Atlanta Americom Global Meeting, San Diego Satellite Internet Conference, Arlington CITEL PCCCIII Meeting, Ottawa

21

Atlanta Americom Global Meeting, San Diego Satellite Internet Conference, Arlington CITEL PCCCIII Meeting, Ottawa 21

GLOBAL VSAT FORUM SUMMARISED ACCOUNTS REVENUE ACCOUNT

YEAR ENDED 31 DECEMBER 2000

Note Year to 31 Dec 00 £ Year to 31 Dec 99 £ INCOME Administration
Note
Year to
31 Dec 00
£
Year to
31 Dec 99
£
INCOME
Administration expenses
2
297,947
261,026
268,742
205,523
OPERATING SURPLUS
Interest Receivable
3
29,205
55,503
3,169
48
SURPLUS ON ORDINARY ACTIVITIES
BEFORE TAXATION
Tax on surplus on ordinary activities
32,374
55,551
4
405
95
RETAINED SURPLUS FOR THE FINANCIAL
PERIOD
31,969
55,456
BALANCE SHEET
31 December 1999
Note
2000
1999
££
££
FIXED ASSETS
Tangible assets
5
3,153
2,263
CURRENT ASSETS
Debtors
Cash at bank and in hand
6
325,133
71,031
213,417
51,828
538,550
122,859
CREDITORS: Amounts falling due
within one year
7
(433,967)
(49,355)
NET CURRENT ASSETS
104,583
73,504
TOTAL ASSETS LESS CURRENT LIABILITIES
107,736
75,767
RESERVES
Accumulated Surplus
11
107,736
75,767
MEMBERS' FUNDS
107,736
75,767

These summarised accounts were approved on 28th September 2001 on behalf of the directors by MR A.L. STIMSON

These accounts set out on pages 22-26 are a summary of information extracted from full accounts approved by the directors on 28 September 2001 which have been audited and submitted to the Registrar of Companies (company number 3414971). These summarised accounts may not contain sufficient information to allow a full understanding of the financial affairs of the Global VSAT Forum. For further information, the full accounts, the auditorsreport and the directorsreport should be consulted. Copies of these can be obtained from Global VSAT Forum, Fountain Court, 2 Victoria Square, Victoria Street, St Albans, Herts AL1 3TF, UK.

be obtained from Global VSAT Forum, Fountain Court, 2 Victoria Square, Victoria Street, St Albans, Herts

22

YEAR ENDED 31 DECEMBER 2000

1. ACCOUNTING POLICIES

GLOBAL VSAT FORUM SUMMARISED ACCOUNTS NOTES TO THE FINANCIAL STATEMENTS

Basis of accounting The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective March 2000).

Income The income shown in the revenue account is the amount in respect of membership fees due for the year ended 31 December 2000, exclusive of Value Added Tax.

Depreciation Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value over the useful economic life of that asset as follows:

Equipment

-33 1 /3% straight line

Operating lease agreements Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against surplus as incurred.

Foreign currencies Assets and liabilities in foreign currencies are translated into sterling at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transactions. Exchange differences are taken into account in arriving at the operating surplus.

2. INCOME

The income and surplus before tax are attributed to the one principal activity of the company.

An analysis of income is given below:

Year to 31 Dec 00

£

Year to 31 Dec 99

£

United Kingdom Other EU Countries Rest of World

68,100

26,540

64,471

47,771

165,376

186,715

 

297,947

261,026

23

Countries Rest of World 68,100 26,540 64,471 47,771 165,376 186,715   297,947 261,026 23

GLOBAL VSAT FORUM SUMMARISED ACCOUNTS NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2000

3. OPERATING SURPLUS

Operating surplus is stated after charging / (crediting):

 

Year to

Year to

31

Dec 00

31 Dec 99

 

£

£

Depreciation

2,444

1,332

Auditors' fees

1,750

1,750

Net (surplus)/deficit on foreign currency

(2,222)

(2,527)

Year to Year to 31 Dec 00 31 Dec 99 £ £ 405 95 £
Year to
Year to
31 Dec 00
31 Dec 99
£
£
405
95
£
3,997
3,334
7,331
1,734
2,444
4,178

Equipment

4. TAX ON SURPLUS ON ORDINARY ACTIVITIES

In respect of the year:

Corporation tax

5. TANGIBLE FIXED ASSETS

COST At 1 January 2000 Additions

At 31 December 2000

DEPRECIATION At 1 January 2000 Charge for the year

At 31 December 2000

NET BOOK VALUE At 31 December 2000

3,153

At 31 December 1999

2,263

Charge for the year At 31 December 2000 NET BOOK VALUE At 31 December 2000 3,153

24

YEAR ENDED 31 DECEMBER 2000

6. DEBTORS

GLOBAL VSAT FORUM SUMMARISED ACCOUNTS NOTES TO THE FINANCIAL STATEMENTS

2000

£

1999

£

Trade Debtors VAT recoverable Other debtors Prepayments and accrued income

319,545

59,443

-

1,641

4,228

8,664

1,360

1,283

 

325,133

71,031

7.

CREDITORS: Amounts falling due within one year

 

2000

1999

£

£

Trade Creditors Other taxation and social security Other creditors Accruals and deferred income

6,802

1,600

17,090

16,924

9,597

2,231

400,478

28,600

 

433,967

49,355

2000

£

5,440

1999

£

5,132

8.

COMMITMENTS UNDER OPERATING LEASES

At 31 December 2000 the company had aggregate annual commitments under non-cancellable operating leases as set out below.

Operating leases which expire:

Within 1 year

9. RELATED PARTY TRANSACTIONS

No ultimate controlling party has been identified.

Other than the payment of subscriptions, no other transactions with related parties were undertaken such as are required to be disclosed under Financial Reporting Standard 8.

10. COMPANY LIMITED BY GUARANTEE

Each member of the company has guaranteed to contribute £1 in the event of a winding up.

25

COMPANY LIMITED BY GUARANTEE Each member of the company has guaranteed to contribute £1 in the

GLOBAL VSAT FORUM SUMMARISED ACCOUNTS NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2000

11. RESERVES

 

Income

and

Expenditure

Account

£

Opening balance Surplus for the year

75,767

31,969

Balance carried forward

107,736

12. STATUTORY AUDITED ACCOUNTS

These are not the company's statutory accounts for the period ended 31 December 2000. The statutory accounts for that period have been prepared and abbreviated accounts have been delivered to the Registrar of Companies.

The company's auditors reported on the statutory accounts for the period and the audit report was unqualified.

The company's auditors reported on the statutory accounts for the period and the audit report was

26

Global VSAT Forum 2 Victoria Square Victoria Street St.Albans Hertfordshire AL1 3TF United Kingdom

Tel: +44 (0)1727 884739, 513 Fax: +44 (0)1727 884839 E-mail: david.hartshorn@gvf.org martin.jarrold@gvf.org Website: www.gvf.org