INTERVIEW TRANSCRIPT Mary Kirby (interviewer): Youre tempering down a little bit, and why is this?

Don Buchman (ViaSat): Well were just, you know the conversations are about capacity, so what were trying to sell is what we think is supported in the market. Its lots of connectivity, theyre really focused on getting engaged with it, and so we think just in general that that s where the value is. So its not around antenna sizes or radomes or [unclear] strikes, those kinda engagements are kinda the wrong area for us. What we re focused on in our innovations, is in the satellite space, which is what makes the value of the passenger airline, tick. MK: It really is a new paradigm for airlines, youre now sitting across the table of the satellite company, theyre used to the middle man. What is it like from your side of the table? DB: Its a new space for us, its definitely were in a new industry, so were used to our satellite industry. But weve been in aviation for about 10 years. So weve got the [unclear] side, so weve been working our way in, so weve been working with the Gulfstreams of the world and the Lombardiers, so now we re kinda in the next generation of aviation which is Airbus, Boeing, an airline, an international airline and so on. So theres definitely high demand, its a well-established industry, with high expectations. MK: Obviously youve got some nice deals already, that youre supporting. And the most recent one, El Al, which is a real coup because I know that theyre a very particular airline, on a number of levels, particularly security, of course. So, where else do you see yourself carving out some market share here in the near term? DB: So in the near term where we have a lot of capacity is in the US and in Europe, with our partner Eutelsat. So Europe has got a lot of airlines that havent committed yet, so we think theres a lot of activity and were pretty excited adding Europe. El Al was our first direct contract there. With ViaSat-2, were right at the beginning of the sales cycle to take advantage of ViaSat-2, which launches in 2016, its gonna be in service by the end of 2016, its gonna open up routes to South America and the transatlantic routes. So a lot of airlines really interested in that. You know for the airline industry the transatlantic is the gold route, you know the New York to London. And a lot of activity, a lot of excitement, around bringing what we did to JetBlue, to that transcon. MK: And you havent yet decided who will launch ViaSat-2. DB: ViaSat-2 is not yet, the launcher at least I havent been told. Maybe theres a decision but Im not MK: So youve had some discussions with Elon Musk for it potentially down the road, maybe DB: Yeah, I mean SpaceX is a launcher, pretty innovative so we like what theyre doing. MK: Interesting. Eutelsat has started talking about its offering in Europe you guys work with them and they rely on you for some serious technology. The ViaSat technology that Eutelsat uses, tell us about that? DB: The underlying technology is our surfbeam technology. Our satellites and our offering are totally vertically integrated. So surfbeam itself is just one component of our vertical offering. So thats essentially the transmission subsystem. So its how you manage the satellite bandwidth, its the model thats involved in that. Its the acceleration of IP, its how internet acts over satellites, and how that sequencing comes together. And we do that for them. MK: Could they go elsewhere? Could they find another company to work with?

DB: They could if they wanted to, but they would have to tear out a lot of infrastructure and make use of for spot beams its not easy to convert the entire network over to a different technology so it s quite an infrastructure play. MK: So ViaSat made it pretty clear to the market you want to be prime on these contracts with the airlines? DB: We are going down that route. One of the things is for us to be successful, we think it s a big market, were committed to this market, and for us to be successful, our value proposition has to be put forward. And sometimes being prime is what we have to do if we want to get the experimentation and get what we do with JetBlue, to really happen. So that was an innovative, disruptive way of entering the market, for free, very good. MK: Yeah I know, that definitely was. And of course were hearing fantastic reports also about the United, installations about 60 aircraft now? DB: Well total is about 66 I think, as of Ive looked at my email today. Were doing about one or two a day. MK: STC [supplemental type certificate]-wise, how far along the path are you there. DB: So El Al you know, 737 you know on our route. So thatll be an STC. So were going to procurement so were going to be hiring an outside firm as our subcontractor to do the STC work. Radom we ve already done that. I cant say who the radome provider is, its not General Dynamics. MK: I dont think people appreciate how competitor the radome market is? DB: Yeah, we do a lot of military business, we actually have a lot of suppliers that dont play in the commercial aviation, that weve been using a lot on our military business. And so weve been over to cross over some of those suppliers, that are helping us out with our KA and KU offerings. MK: Which is fascinating also, its great news for them because a lot of them have been hit with severe defence budget cuts. So, going forward, what about widebodys? I know obviously that you guys are regional right now. Do you see pockets of sub-fleet regional flying domestic that you could break into. DB: Theres some of that, I think with ViaSat-2 the transatlantic is really going to break it through. One of the other things that were seeing is its not done yet but what were seeing is a softening of our KU/KA offering. This is the hybrid weve talked about for a number of years. Without us in the market, weve had a lot of er no one quite new what this KA thing was going to be. So, pending a more complex, heavier antenna, was sort of wait a second, risky here, and why do I need to do this so we didnt get a lot of traction. Weve watched it on our military, it will be flying by the end of this year, its in certification right now, and were actually seeing a softening from a lot of people out there that actually see what we ve done at KA and see the difference. And now theyre saying hey, thats, I actually want to get access to that. [The KU/KA antenna is] one pedestal with two panels, and the two panels will be opposite sides of each other so one will be KU and one will be KA. And if you switch from one the antenna will just switch 180 degrees. MK: And you feel that the markets gonna warm then to.. DB: Yeah, theyre warming up to it yeah. Because whats it really about, what were trying to push, is less about whats happening on the aircraft from an equipment point of view.. it s more about what can I deliver with this service..? Holy hell, I can give that much to every passenger? And then all of a sudden of a couple more kilos of weight is actually not this big of the picture, its actually the noise in the discussion now. MK: Well.. then maybe youll understand on the network why we believe its so important for the passenger to be educated about the technologies that are available. You know, it makes a difference because passengers

have a voice now, that they havent had in the past, via social media right? So you guys, have in the past spoken about potentially being interested in a partnership with Inmarsat for Global Xpress that could give you global coverage and augment it? DB: Yeah, that would be in there. Were always interested in that where it would make sense, but, you know. But it doesnt need to happen weve got multiple plans to do that. Were already going to have a global coverage, its not if its when, yeah. So well have it. Well have global coverage. MK: So when Eutelsat says its gonna be still another 10-15 years, what do you say to that? DB: Id say theyre probably about 2 times too long. Id say 5-7 years is probably what its going to take. To get the highest density air routes in all the contents connected. MK: What do you think about some of the big announcements this week weve got Go Go 2KU. Is that going to be a viable competitor to what you guys are doing? DB: Not really, its essentially just a KU bandwidth offering. When I talk about capacity its all about capacity. And theyre really not breaching the gap towards us. Were on ViaSat-1 thats got 140 gigabits per second, so if you take a 1 gigabit per second KU and you have it at the top level and you double it, then youre only really at 2 gigabits per second. So theyre really not pushing towards where were at, in terms of capacity. ViaSat-2 is essentially doubling what were doing on ViaSat-1, so thats what were making the big play about. MK: And in a not dissimilar vein, Panasonic Avionics, pushing very very hard on high through high throughput satellite connectivity, what are your thoughts there? DB: Yeah, theyre going fast in the game of KU, they are probably going to get a 5-10X, even occurring KU, which is nice but is still not where were at with KA. MK: They are packaging a [unclear] to connect now with Iridium. Which is interesting. What about yourselves would you see yourselves pairing up on a safety services approved.. DB: Oh sure yeah, in the GA world weve talked to er, with Iridium on that MK: Would you be somewhat impressed with Iridiums plans? DB: Yeah, I think so. So long as they get their service around the world its good to have a healthy competitor in that marketplace. If its not a single source, then maybe the subscription price is not going to be as high. What were hearing from the OEMs, is that now that our capacity is available, theyre actually opening up to new ideas of what they could do with a connected aircraft from a maintenance perspective. Because before it just wasnt economical to get that massive amount of bandwidth off. Now that weve come along, weve actually opened up their eyes to hey some of the stuff that we thought was way off in the future is actually here today. MK: Which is why Boeing is working with you guys? What about Airbus? DB: Airbus is interesting, I think theyre seeing it. You know JetBlue our launch customers are flying their aircraft around so. MK: Airbus was with Infinity for the Inmarsat programmes however, you know liked SVB, they liked FGX, they like New York Global.

DB: What they are recognising I think is that there is a global solution but it is a regional solution. So they are probably not one size fits all when it comes to connectivity in today s marketplace. And they realise that will change over time but.. MK: Finally, you guys have mentioned in the past and so have Zodiac, this kinda packaging of interiors and connectivity.. how do you see that going? DB: So right now were trying to work together on some retrofit programmes which we think is pretty exciting. Were trying to make use of some of the things that we do really well and some of the things that they do really well. MK: So say for example like a United, breaks down DB: Like a United or any of these bigger airlines that have a heavy maintenance or logistics footprint, where Zodiac is excellent at that. MK: And you can come in with potentially better pricing? DB: Possibly yeah, I think with the rates system theyve really tried to innovate and bring head costs down. But were all about disruption and so we like working with companies there. MK: So the investors looking at the industry and the hedge funds, would you recommend they keep an eye on the interior space as well? DB: Yeah, I think its all going to be coming together and youre going to see the way the internet is going right.. people are cutting their TV cords. So linear programming.. youre seeing this over the top phenomenon and thats where we seeing it going as well So when we look out 10 years I dont know if youre a hockey fan but Wayne Gretzky had a quote I dont skate to where the puck is, I skate to where the puck is going to be. And so where we see the market going is this heavy internet and TV and merging of content and internet. MK: And maybe Hollywood ultimately relenting? DB: Yeah, Hollywood will see it.