Paradigm Shifts Affecting Telecommunications

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1. Executive Summary of the SWANsat System

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2. Hybrid System of Satellite Communications Technology

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3. Ten Benefits of the SWANsat System

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4. Basic Services to be Offered

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5. Cyber-Security and Safe Surfing on SWANsat

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6. Paradigm Shifts Affecting Telecommunications

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7. Competition

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8. ITU Trends: How SWANsat fits the ITU Draft Report on IMT-2000

he Internet’s continuing rapid expansion contributes to exponential changes in the communications industries, particularly with respect to the number of businesses that maintain a web presence, the number of people using the web, the value of e-commerce transacted on the web, and the amount of marketing dollars spent on the web. Both the Internet and corporate intranets have quickly become significant global media in their own right, allowing content publishers to deliver information and programming in interactive ways to a narrow audience not possible utilizing traditional broadcast television and print media. Seven emergent Internet paradigm shifts are now occurring and will forever change the way information is disseminated. These shifts are:

1

From Institutionally-directed Communication to Customer-Directed Communication

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From Data Broadcasting to Information Narrowcasting

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From Narrow Bandwidth to Broad Bandwidth

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From Fixed Systems to Wireless Systems

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From Broadcast to Narrowcast

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From Static Media to Interactive, Rich Media

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From Static Ads to Interactive, Streaming Ads

We will expand upon each of these seven paradigm shifts below. SWANsat will optimize implementation of each of these trends throughout the world in a manner more cost-effective than any other satellite-based distribution system ever proposed.

1

From Institutionally-directed Communication to Customer-Directed Communication

Over the past several years, individuals have been taking greater control of their personal communication and information requirements. The internet has facilitated this shift in behavior by providing easy electronic access to information that was once only available to professionals at high cost. For example, with respect to investment decisions, these recent changes have made it possible for small investors with Internet access and limited capital to trade stocks and options from anywhere in the world. Investors have taken advantage of these changes, seeking to profit from short-term price movements of these securities. As a result, online investing accounts now total more than 50 million accounts.

2

From Data Broadcasting to Information Narrowcasting

Our methodology for distinguishing between data and information is the foundation of its ability to provide customers with information services, including monitoring, consolidation, and presentation of real time breaking news. Instead of broadcasting data to many people, we intend to assist in the dissemination of information to specific end user individuals. As a result, narrowcasting, not broadcasting, will define our approach to doing telecommunications. The Applicant defines data as merely a collection of facts. Information is data with time value added. Information is data extracted to meet a specific need at a specific time for a specific purpose. SWANsat will provide information, not merely data, to its customers.

3

From Narrow Bandwidth to Broad Bandwidth

The means by which Internet data streams are disseminated is shifting from narrow bandwidth to broad bandwidth methodologies. Accordingly, SWANsat will provide more room for dissemination of broadband content after the manner of the Internet2 format recently demonstrated in the United States. We will disseminate educational programming, including programming services for home and private schooling. SWANsat will encourage ubiquitous dissemination of audio/visual content, interactive e-commerce opportunities, and Internet participation by traditional advertisers. Furthermore, adoption of broadband will encourage non-users of the Internet to become users.

4

From Fixed Systems to Wireless Systems

Except for the bandwidth limitations of traditional Internet data streams (which are being eliminated by the adoption of broadband channels), the most stringent obstacle that hinders further expansion of Internet access has been the inability of a user to access the Internet from mobile platforms. Simply put, until now the user has had to enter the Internet from fixed computer locations. Emerging trends within the telecommunications industry suggest that all of this is about to change. Accordingly, rather than the user remaining at a fixed location to connect to the Internet world, the Internet world can now come to the user wherever that user happens to be located. Through the SWANsat System, any user will now be able to connect to the Internet from anywhere in the world, thus contributing to exponential growth of Internet access.

5

From Broadcast to Narrowcast

Whereas the foundational assumption of traditional television broadcasting was that content must appeal to a wide audience, the Internet’s narrowcast capability allows appeal to a highly targeted, vertical audience. Inherent within our narrowcast approach to market targeting is a built-in economic efficiency that makes it possible to target specific demographic segments with a pinpoint precision simply impossible with traditional broadcast media.

6

From Static Media to Interactive, Rich Media

Television broadcasting has traditionally enjoyed a significant advantage over the Internet in that its transmission content could not be effectively carried over the Internet. This is because the Internet used to primarily consist of a static medium that could not efficiently present audio or video content. Adoption of streaming video and audio technologies now makes it possible, when combined with broad bandwidth, to present rich media content to Internet users.

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From Static Ads to Interactive, Streaming Ads

Ads accessible on SWANsat’s streaming media will contain full motion, full color, full audio and visual content identical to the production standards of traditional television ads, but directed to a pinpoint vertical audience—in some cases consisting only of a single user. While traditional banner ads will always have some degree of continuing effectiveness on a web site, broadening bandwidth will enable us to apply interactive, streaming ad technology to our direct response ad capabilities in order to capture market share and revenues.

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