Exhibit 99.1
November 2007
Safe Harbor
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:
This presentation includes “forward looking statements. ” All statements other than statements of historical facts included in this presentation regarding the prospects of our industry and our prospects, plans, financial position and business strategy, may constitute forward looking statements. These statements are based on the beliefs and assumptions of our management and on the information currently available to our management at the time of such statements. Forward looking statements generally can be identified by the words “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates” or similar expressions that indicate future events and trends. Although we believe that the expectations reflected in these forward -looking statements are reasonable, these expectations may not prove to be correct. Important factors that could cause actual results to differ materially from our expectations are disclosed in our filings with the United States Securities and Exchange Commission (“SEC”) . All subsequent written and oral forward -looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements included our SEC filings. Factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected include, but are not limited to, our ability to obtain financing, obtain and maintain regulatory approvals, generate sufficient cash flows, develop our universal chipset architecture, achieve market acceptance for our services, develop our network and generate technological innovations.
The forward -looking statements in this presentation are made only as of the date of this presentation. We undertake no obligation to update or revise the forward -looking statements, whether as a result of new information, future events or otherwise.
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TerreStar Overview
Ø | TerreStar Corporation |
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- | TerreStar Networks (“TSN”) ownership is approximately 86% | ||
- | TerreStar Global ownership is approximately 86% | ||
- | Beneficially owns 44.4 million shares of SkyTerra |
Ø | TerreStar Networks plans to develop, build and operate an all IP-based integrated satellite and ancillary terrestrial component (“ATC”) mobile communications network |
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Ø | TSN plans to address growing government, enterprise and consumer demand for wireless mobile voice and data services |
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Ø | TerreStar Global, an 86% owned subsidiary of TerreStar Corporation, plans to develop and operate an all IP-based integrated satellite and Complementary Ground Component (“CGC”) mobile communications network in Europe |
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Corporate Structure
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TerreStar Networks Strategy
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TerreStar Networks Strategy: Path to Success
Ø | Secure The License |
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Ø | De-Risk the Business |
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Ø | Prudent Capital Plan |
Ø | Pre-Subscribe the Service |
Ø | Broaden Exit/Partner Opportunities |
Ø | Leverage TerreStar Brand Internationally |
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TerreStar Networks Key Highlights
20 MHz of Spectrum |
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Advanced Network & Technology |
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Strong |
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Large Market Opportunity |
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Scalable Business Model |
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1Based on IDC Research, March 2006
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Agreement with the Federal Government
• Cooperative Research and Development Agreement (“CRADA”) between U.S.
Defense Information Systems Agency (“DISA”) and TerreStar concerning
TerreStar’s North American Emergency Response Communications Network
DISA-07-001
October 6, 2006
• CRADA positions TerreStar as a collaborator with the federal government regarding a
variety of public safety and defense users
• TSN believes the CRADA could provide benefit to the government in the following ways:
- | Ensure continuity of communications in event of disaster |
- | Provide backup platform for command and control of federal, state and local officials |
“As a result of this CRADA, DISA expects an expanded resource base of
interoperable commercial equipment.
Both Collaborators expect this CRADA will yield substantial progress, via
information exchanges between DISA and TerreStar, to eventually develop
products that will mutually benefit the Government and the collaborator. ”
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Commercial & Enterprise Opportunities
Ø | Existing and Incumbent Wireline & Wireless Opportunities |
- Metro Expansions
- | Strategic Business Agreement with Simply Wireless |
- No-gap, Ubiquitous Global Roaming
- Rural Communications, serving the underserved
- MVNO
- | Joint Development and Marketing Agreement with telSPACE |
Ø | Opportunities with Existing Wireless Operators |
- Substantial Additional Services through Increased Spectrum
- Modernize and Enhance Capabilities through and all IP network
- Overall Business Opportunity Expansion through Satellite
Ø | Full Business Partnerships for new entrant |
- Telematics & Machine-to-Machine Business Models
- Quad-Play Strategies
- Internet & DBS models
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Building a 4G All-IP Ecosystem
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Industry Leading Partners and Suppliers
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Significant Development Progress
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TerreStar Networks Strategy Assets & Capabilities
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Advanced Technology, Diverse Devices;
Unified by the Universal Chipset
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Finance
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Balance Sheet Summary
($ millions) | |
| September 30,2007 |
Cash and Cash Equivalents | $198 |
Escrow for TerreStar-1 construction | 3 |
Total Cash | $201 |
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Senior Secured PIK notes due 2014 | 500 |
Accrued Interest | 48 |
Total Debt | $548 |
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Preferred Equity | 409 |
Common Equity | 254 |
Total Stockholders' Equity | $663 |
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Total Capitalization | $1,211 |
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Operating and Capital Expenses
$ millions | Oct - Dec 2007 | ||
Capital Expenditures including: | $95-105 | ||
| - | Satellites – TerreStar 1 and 2 |
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| - | ATC Network | |
| - | Handset/Chipset Development |
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Operating Expenses | 25-35 | ||
Total | $120-$140 | ||
Additional Near-Term CapitalResources | Ø Parent liquidity from SKYT shares Ø Vendor financing capacity Ø Potential equity/debt offerings |
Satellite and | Ø Contractual commitments of $327M over the next 12 months Ø Launch insurance in 2008 of $35-50M Ø Estimated $40-60M per market for buildout of ATC network Ø Initial strategy is to launch in several key markets |
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Attractive Spectrum Position
- Two contiguous and cleared 10 MHz blocks in 2 GHz MSS S-band
- All ATC-eligible
- Ubiquitous coverage in U.S. and Canada
- Adjacent to PCS and AWS operators
- Significant underlying value
Mobile Wireless Spectrum Frequencies (MHz)
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Substantial Underlying Spectrum Value
AWS Auction 66 Transactions ($/MHz POP)
Other Recent PCS Transactions ($/MHz POP)
Ø Implied spectrum value of over $4 billion² based on AWS-Auction 66 REAG market values Ø 700 MHz Auction: Expected to commence in January 2008 |
Source: Wall Street Research
1 Based on FCC determined value of $4.8 billion. Assumes 290 million US POPs
2 Based on $0.65/MHz POP of average D, E, and F Auction 66 REAG values, 330 million POPs, and 20 MHz of spectrum
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Key Highlights
20 MHz of Spectrum |
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Advanced Network & Technology |
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Strong |
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Large Market Opportunity |
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Scalable Business Model |
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