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THE SUPER-WIDE AREA NETWORK SATELLITE SYSTEM

AN INTRODUCTION TO SWANSAT
AN INTRODUCTION TO
SWANSAT

On the Horizon… Coming Soon…

The Most Significant Advancement in Computer Networking and ICT Technology in the History of Planet Earth

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In This Issue…
An Introduction to the Super-Wide Area Network
Toward a Landing Rights Memorandum of Understanding…
SWANSAT: Component of a Modern Marshall Plan for the A.U.
HOW TO BRING LOW COST ICT THROUGHOUT AFRICA BY 2013
On Generating € 1 Billion per Month for the African Economy
Cascading Benefits of Shareware Telecommunications™
and MORE…

COPYRIGHT © 1996 – 2008 BY SWANSAT HOLDINGS, LLC. ALL RIGHTS RESERVED INTERNATIONALLY.

—————————————————————————— About Dr. William P. Welty, CEO and Manager SWANSAT Holdings, LLC (USA) ——————————————————————————

Dr. William Welty’s background in telecommunications

Dr. William Welty’s background in telecommunications began in 1982 with his successful pursuit of a broadcast license from the United States of America’s Federal Communications Commission to operate on an interim basis the facilities of UHF KHOF-TV channel 30 assigned to San Bernardino, California. He opened the final round of Direct Broadcast Satellite applications before the FCC in 1986. Dr. Welty sold his DBS interests in 1996 and donated all proceeds to a charitable trust, naming a number of non-profit organizations as beneficiaries. Dr. Welty founded the Super-Wide Area Network Satellite (SWANSAT) System project in 1996, later filing an application before the Ministry of Telecommunications of the Republic of Nauru to operate a number of space stations in the W-band. The application was granted in 2004. Launch of the first of up to twelve SWANSAT spacecraft by SWANSAT vendor IOSTAR Corporation of North Salt Lake City, Utah, is planned for as early as fourth quarter 2012. Budget for the program is EUR€12 billion. Dr. Welty has discussed how SWANSAT can meet Wide Open Access and Sustainable Development goals of the United Nations Global Alliance for ICT and Development with more than 20 ministers of information representing various nation states at the November 2005 World Summit on the Information Society in Tunis, Tunisia. He presented SWANSAT as a candidate for meeting UN Millennium Development and ECOSOC Ministerial Development goals before a number of international regional forums of the ITU. In 2006, the International Forum for ICT Strategies and Investment sponsored by the Kingdom of Morocco and the Islamic Development Bank invited Dr. Welty to address the subject of how ICT development goals can be met utilizing SWANSAT’s Shareware Telecommunications™ economic model as a means to bridge the digital divide. Dr. Welty also addressed the Computer Association of Nepal’s InfoTech 2006 conference in Kathmandu, Nepal as a keynote speaker. In 2007, at the direct invitation of United Nations Secretary-General Ban Ki-Moon, an executive briefing on the Shareware Telecommunications™ economic model was presented to Mr. Sarbuland Khan, Executive Coordinator for the Office of the Secretariat of the Global Alliance for ICT and Development. The model was also presented for consideration as a modern Marshall Plan for the African Union to officials at the embassy of the Arab Republic of Egypt. Dr. Welty presented a private executive briefing on SWANSAT in September 2007 to Her Excellency Amina Salum Ali, the African Union’s ambassador to the United States of America and to officials at the NEPAD Council, the African Union’s ICT advocacy organization, which extended a public endorsement to the SWANSAT Project in November 2007. In late October, Dr. Welty attended the Connect Africa Summit in Kigali, Rwanda, where he discussed the SWANsat Shareware Telecommunications™ model to Rwanda’s President Paul Kagame. One of the key features of the SWANSAT’s Shareware Telecommunications™ model is its capability to provide 2 Meg/second ICT delivery to Least Developed Countries (LDC’s) and Developing Countries (DC’s) via the SWANSAT System for as little as EUR€1/month, thus creating a form of modern Marshall Plan for the African Union. Dr. Welty’s keynote address for ICT Africa 2008 in Addis Ababa, Ethiopia is intended to serve as an introduction to SWANSAT for officials of the African Union who will be attending. By accepting SWANSAT’s offer to affiliate with the SWANSAT Project as an international sponsoring consortium, the African Union will be eligible to receive up to EUR€1 billion per month for the duration of the SWANSAT license, as a means to assist in stabilizing the economy of the African continent, after the manner of a modern Marshall Plan for the African Union.

Copyright © 2008 by SWANsat Holdings, LLC. ALL RIGHTS RESERVED INTERNATIONALLY. Permission to reproduce granted. Photo (343px by 442px, 39,354 bytes) may be downloaded from:

http://swansatfoundation.com/images/people/wpwelty.jpg.

How to Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic

How to Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic Foundation for the African Union

by William P. Welty, Ph.D. 1 Manager, the SWANSAT System

What is SWANSAT?

2

Landing Rights Offered for Video Channel Capacity

4

SWANSAT: A Component of a Modern Marshall Plan for the A.U

4

How to Bring Continent-Wide ICT throughout Africa by 2013

5

How to Generate 1 Billion per Month for the African Economy

6

Optional Participation by the Islamic Development Bank

7

Government Contributions: Landing Rights and ODA Commitments

7

Net ODA as Percentage of GNI Country Aid Amount by GNP

8

How Tax Benefits Incentivize Multi-national Corporate Participation

10

How SWANSAT Will Manage the Supply/Demand Equilibrium

11

Cascading Benefits of the Shareware Telecommunications™ Model

11

During the International Telecommunication Union’s Connect Africa Summit held from 29-30 October 2007 in Kigali, Rwanda, more than 1,000 leaders from the public, private, and financial sectors met to discuss the “key success factors vital to advance ICT investment and boost growth in Africa.” 2 High on the agenda of ICT priorities for the ITU Summit was “the expansion of broadband infrastructures” 3 and consideration of “new ‘last mile’ access solutions” 4 capable of establishing rural connectivity within the context of “a business-friendly policy and regulatory environment.” 5 Even though a public commitment to rolling out ICT continent-wide throughout Africa by 2015 was widely acknowledged, in keeping with the United Nations’ ECOSOC Ministerial Declaration and the United Nations’ Millennium Declaration, nevertheless, a large ground swell of private pessimism that expressed doubts as to whether the goal can be reached did not go unnoticed.

1 Dr. Welty’s background in telecommunications began in 1982 with his successful pursuit of a broadcast license from the United States of America’s Federal Communications Commission to operate on an interim basis the facilities of UHF KHOF-TV channel 30 assigned to San Bernardino, California. He opened the final round of Direct Broadcast Satellite applications before the FCC in 1987, sold his DBS interests in 1996, and then donated all proceeds to a charitable trust, naming a number of non-profit organizations as beneficiaries. Dr. Welty founded the SWANSAT project in 1996, later filing a successful Application for Consent to Operate Space Stations in the W-Band before the Republic of Nauru.

2 See Connect Africa Summit Progamme, ¶2, at http://www.itu.int/ITU-D/connect/africa/2007/summit/programme.html.

3

Ibid.

v.1.4

4 Ibid.

5 Ibid.

Copyright © 1996-2008 by SWANSAT Holdings, LLC. ALL RIGHTS RESERVED INTERNATIONALLY.

SWANSAT Shareware Telecommunications™ Model Patent Pending. Shareware Telecommunications™ is a trademark of SWANSAT Holdings. ALL RIGHTS RESERVED INTERNATIONALLY The AUric gold coin design, the numismatic term of descriptive art "AUric", and the AUric currency symbol device are claimed as trademarks by SWANsat Holdings, LLC. Copyright © 2007 and Trademark ™ 2007 by SWANsat Holdings, LLC. ALL RIGHTS RESERVED INTERNATIONALLY. Trademark ® Registrations for the AUric gold coin design, the numismatic term of descriptive art "AUric", and the AUric currency symbol device are pending 2008. All rights are pledged for transfer to the African Union upon: (1) execution of a planned Note Verbale and Memorandum of Understanding between SWANsat Holdings, LLC and the African Union regarding Landing Rights for SWANsat, (2) exercise of a funding participation option described therein, and (3) actual receipt of funding for the SWANsat System proceeding therefrom.

How to Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic

How to Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic Foundation for the African Union

Less than two weeks after the Connect Africa Summit concluded, in a private communication to us, Mr. Mohsen Khalil, Director of the Global Information and Communication Technologies Department of the World Bank Group, informed us that the WBG recently approved USD$424 million to fund regional connectivity to 25 countries in East-South Africa in regards to African cellular telephony operations. 6 This investment affects less than half of the member states of the African Union. Mr. Khalil also claimed that the international telecom industry has invested USD$25 billion into the African telecom economy over the past ten years, with more money to come between now and the 2015 deadline for rollout of ICT to the African continent agreed to at the Connect Africa Summit. However, the USD$25 billion spent to date to advance ICT deployment in Africa, with “more to come by 2015,” to quote Mr. Khalil’s correspondence to us, is about 30% more than is needed to wire the entire world via high-powered GSO satellite technology.

The proposal outlined herein requires an outlay of only EUR€12 billion in order to connect the entire world, not just the African continent, with 2 Meg/second two-way broadband connections. Furthermore, these ICT connections can be provided at very low cost for Least Developed Countries (LDC’s) and Developing Countries (DC’s) served by the proposed system—as low as EUR€1/month—and starting as early as 2013 in Africa.

Connecting the world via a constellation of GSO high-powered telecommunications spacecraft linked to a non-profit ownership model is an optimal alternative solution to what has already been spent to make ICT work in Africa. Note the following figures from the World Bank’s Annual Reports:

WORLD BANK LENDING BY SECTOR | FISCAL 2001–2007

 

IN MILLIONS OF DOLLARS

 

2001

2002

2003

2004

2005

2006

2007

Agriculture, Fishing, and Forestry Education Energy and Mining Finance Health and Other Social Services Industry and Trade

695.5

1,247.9

1,213.2

1,386.1

1,933.6

1,751.9

1,717.4

1,094.7

1,384.6

2,348.7

1,684.5

1,951.1

1,990.6

2,021.8

1,530.7

1,974.6

1,088.4

966.5

1,822.7

3,030.3

1,784.0

2,246.3

2,710.8

1,446.3

1,808.9

1,675.1

2,319.7

1,613.6

2,521.2

2,366.1

3,442.6

2,997.1

2,216.4

2,132.3

2,752.5

718.3

1,394.5

796.7

797.9

1,629.4

1,542.2

1,181.3

Information and Communication

216.9

153.2

115.3

90.9

190.9

81.0

148.8

Law and Justice and Public Administration 3,850.2

5,351.2

3,956.5

4,978.6

5,569.3

5,857.6

5,468.2

Transportation Water, Sanitation, and Flood Protection

3,105.2

2,390.5

2,727.3

3,777.8

3,138.2

3,214.6

4,949.0

1,271.7

546.0

1,378.3

1,591.6

2,180.2

1,721.0

3,059.4

Sector Totals

17,250.6

19,519.4

18,513.2

20,079.9

22,307.0

23,641.2

24,695.8

Sources: Year 2001: The World Bank Annual Report 2006, Page 57; Years 2002-2007: The World Bank Annual Report 2007, Page 55

Only USD$148.9 million was provided for ICT in 2007 out of a total of nearly USD$25 billion. In contrast, SWANSAT provides EUR€12 billion per year in revenue to the AU in exchange for sponsored funding that amounts to only about seven percent of the WBG’s entire lending budget from 2007!

What is SWANSAT?

The Super-Wide Area Network Satellite (SWANSAT) System is a planned constellation of as many as twelve high powered geosynchronous orbit (GSO) telecommunications satellites licensed for global provision of two-way broadband services utilizing ten GHz of electromagnetic frequency in the

6 Downloadable from http://docs.swansatfoundation.com/ROI/2007_1115_MKhalil_Re_2007_1023_to_RZoellick.pdf.

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How to Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic Foundation for the African Union

Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic Foundation for the

W-band. Host licensing nation for the SWANSAT System is the forward-thinking Republic of Nauru. Each SWANSAT bi-directional signal will cover the globe (except for the North and South Poles), providing ubiquitous, point-to-point, seamless broadband ICT services, integrating VoIP, data, fax, Internet, secure and encrypted email services, international banking and financing services online, computer networking, intranet services, on-orbit secure and encrypted data, file, and server storage, video and audio entertainment, Direct Broadcast Service programming, retail and wholesale sales, Pay-per-View programming, educational programming, medical information, and other services through one comprehensive world-wide system. The first spacecraft in the constellation is planned for deployment in late 2012, with follow-on launches slated every nine to twelve months until a full deployment of the SWANSAT constellation has been accomplished.

of the SWAN SAT constellation has been accomplished. Hemispherical coverage from GSO slots with multiple

Hemispherical coverage from GSO slots with multiple overlapped footprints. The entire globe will be covered, except for the North and South Poles. System capacity: nominally 600 million users per GSO slot.

FIRST LAUNCHES (TOP ROW): Six SWANSAT spacecraft will be delivered to GSO for operation at: Americas theater at 100° West Longitude, Euro-African theater at 30° East Longitude, Western Pacific theater at 150° East Longitude, Central Pacific theater at 210° East Longitude, Atlantic theater at 30° West Longitude, and Asian theater at 90° East Longitude. A spare spacecraft will be delivered to a sparing orbit at the Americas theater at 100° West Longitude (±0.2°).

OPTIONAL FOLLOW-ON (BOTTOM ROW): Greenwich theater at 0° East Longitude; Middle East theatre at 60° East Longitude; Australian theater at 120° East Longitude; Pacific theater at 180° East Longitude; Western Americas theater at 120° West Longitude; Central Atlantic theater at 60° West Longitude. If follow-on program is ordered, a second spare spacecraft will also be delivered to a sparing orbit at Pacific theater at 180° East Longitude (±0.2°).

SWANSAT can provide two-way broadband ICT services to residents of least developed countries (LDC’s) and developing countries (DC’s), utilizing its Shareware Telecommunications™ economic model (described below) to meet sustainable development and wide open access goals of the UN Economic and Social Council’s ECOSOC 2000 Ministerial Declaration in full consistency with many UN Millennium Development Goals. A minimal number of non-subsidized subscriptions from residents of G7 nations will be accepted as a base for subsidizing subscriptions accepted from residents of non-G7 nations, including residents of LDC’s and DC’s and from those serving the underserved in these nations. Each spacecraft in the SWANSAT constellation will be capable of delivering 600 million 2 Megabit/second broadband Internet connections and about 250,000 video channels. Island nations and other world communities that are now either underserved, not being served at all, or served at exorbitant cost to the end user will be served.

Budgetary requirements for design, construction, launch, and deployment of the SWANSAT System are EUR€12 billion, payable in six annual tranches of EUR€2 billion. Included in cost

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How to Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic

How to Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic Foundation for the African Union

estimates are delivery to orbit of the first fourteen IOSTAR power plant spacecraft and fourteen W- Band SWANSAT communications payloads, launch insurance for these deliveries, construction of the ground station, training of operational personnel, operation of the SWANSAT System for one year (without revenue of any kind, if necessary), design and initial production run of SWANSAT handsets, and worldwide marketing.

Landing Rights Offered for Video Channel Capacity

SWANSAT will offer 200 free educational video channels to each of the world’s nations in exchange for grant of SWANSAT Landing Rights on a non-revenue basis. Access to medical information database services to remote locations of subscriber nations on a non-revenue (i.e., “free”) basis will also be included in day-to-day mission priorities of SWANSAT.

SWANSAT: A Component of a Modern Marshall Plan for the A.U.

In an insightful op-ed commentary entitled Why Africa Needs a Marshall Plan and published on 4 June 2007 on the web site of London’s respected Financial Times, 7 Glenn Hubbard and William Duggan observed that “the best advice” that might be offered to Mr. Robert Zoellick, the new president of the World Bank, “may be in the history books.” Hubbard and Duggan were referring to the Marshall Plan, which had first been publicly discussed on 5 June 1947 by George Marshall at a commencement address given on the steps of the Memorial Church of Harvard Yard at Harvard University. The highlight of Marshall’s speech was the following significant statement by him as he spoke in his official capacity as Secretary of State for the United States of America:

as Secretary of State for the United States of America: World Bank President Robert Zoellick It

World Bank President Robert Zoellick

It is logical that the United States should do whatever it is able to do to assist in the return of normal economic health to the world, without which there can be no political stability and no assured peace. Our policy is not directed against any country, but against hunger, poverty, desperation and chaos. Any government that is willing to assist in recovery will find full co-operation on the part of the USA. 8

Under the terms of the Marshall Plan, aid was offered by the United States to nations recovering from the damages sustained by them in World War II, but the recipient nations were held responsible for organization of the aid programs themselves. 9 As Hubbard and Duggan observed in their op-ed piece, “The original Marshall plan was less a grand aid programme than a targeted effort to restore the power of business as a growth engine.” 10 Accordingly, the Marshall Plan facilitated business-sector development as opposed to establishing social services, which is what many other modern aid programs do.

7 Hubbard, Glenn and William Duggan. Why Africa Needs a Marshall Plan. See http://www.ft.com/cms/s/aaf5ef7a-12c3-

11dc-a475-000b5df10621.html.

8 The Marshall Plan. http://en.wikipedia.org/wiki/Marshall_Plan#The_speech.

9 Ibid.

10 Hubbard, Glenn, ¶4.

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How to Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic Foundation for the African Union

Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic Foundation for the

How to Bring Continent-Wide ICT throughout Africa by 2013

SWANSAT Holdings, LLC, the non-profit owned and managed operators of the SWANSAT System, is proposing that the SWANSAT System be used as a means to consolidate establishment of a modern Marshall Plan for the African Union. The SWANSAT System is intended to be operated for LDC’s and DC’s after the pattern of the Marshall Plan for Europe. As part of development efforts regarding the SWANSAT System, SWANSAT Holdings has crafted what is rapidly becoming perceived as one of the first effective economic models available to help bring inexpensive ICT and wide open access to broadband internet via satellite to LDC’s and DC’s. Called Shareware Telecommunications™, the economic model provides a practical methodology by which 2 megabit/ second internet connections via satellite can be delivered to LDC’s and DC’s at a cost as low as EUR€1/month per user. 11 By this action, it will be possible to bridge the digital divide throughout the African continent by applying our Shareware Telecommunications™ model to the task of accomplishing these six strategic long term goals and mid-range objectives of the United Nations Millennium Development Goals and the ECOSOC 2000 Ministerial Declaration: 12

Development “of the basic infrastructure necessary for [ICT] connectivity, including for the most remote areas” 13

Implementation of “measures to bring down connectivity costs to make [ICT] affordable, including through market-based mechanisms and competition, as appropriate” 14 Integration of “developing nations into the networked knowledge-based global economy, and strengthening their capacity in building infrastructure and generating content” 15

Devising “measures to substantially reduce the average cost of access to the Internet

within developing countries” 16 Promotion of programs, “ideas and projects for enhancing direct connectivity among developing countries” 17 in order “to increase the number of computers and other Internet access devices in developing countries” 18

Support

of

“efforts

towards capacity-building and production of content” 19 in

developing countries.

Implementing our Shareware Telecommunications™ economic model with respect to rollout of our planned SWANSAT System is an effective and practical way to ensure sustainable results and the harmonious development of a global network society. Accordingly, we propose our Shareware Telecommunications™ model for application to the SWANSAT system and its architecture for delivery of low-cost ICT broadband via geosynchronous satellite in the W-band.

11

12

13

17

See our white paper Shareware Telecommunications: An Effective Economic Model for Bridging the Digital Divide, downloadable from http://docs.swansatfoundation.com/binder/007_shareware_telecommunications.pdf,

Ministerial Declaration of the High-level Segment Submitted by the President of the Economic and Social Council on the Basis of Informal Consultations: Development and International Cooperation in the Twenty-First Century: The Role of Information Technology in the Context of a Knowledge-Based Global Economy. (http://www.un.org/documents/

ecosoc/docs/2000/e2000-l9.pdf).

Ibid. ¶14B

14 Ibid. ¶14F

15 Ibid., ¶14F

16 Ibid., ¶17C

Ibid., ¶14

18 Ibid., ¶17D

19 Ibid., ¶17G

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How to Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic

How to Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic Foundation for the African Union

a Stable Economic Foundation for the African Union The SWAN SAT Shareware Telecommunications ™ model

The SWANSAT Shareware Telecommunications™ model distinguishes five economic tiers of the world’s nations, based on ranges of per capita annual income: Tier One (greater than USD$20,000), Tier Two (between USD$14,000 - $20,000), Tier Three (between USD$5,000 - $14,000), Tier Four (USD$1,500 - $5,000), and Tier Five (less than USD$1,500). Because each SWANSAT satellite signal reaches more than one third of the earth’s surface, it is economically feasible to bring broadband telecommunications services simultaneously to all tiers in the SWANSAT economic model without sacrificing business stability of the model or of the service providers, if services to Tiers 2-5 economies are subsidized by operational surpluses gained from end users who live in Tier 1 nations and other full paying customers in Tiers 2-5.

As a practical case-history model of how dramatic the potential sea change affecting the cost of ICT can be, on 1 June 2007 we presented the SWANSAT Holdings Shareware Telecommunications model to Mr. Sarbuland Khan, Executive Coordinator of the Secretariat of the United Nations’ Global Alliance for ICT and Development. In attendance were Mr. Ezani Amir and Mr. Serge Kapto, advisors to Mr. Khan. During the course of our briefing, Mr. Kapto informed us that Nigeria’s national university in Lagos spends USD$9,000 per month for an internet connection comprising 1 Meg/second of broadband capacity to serve its more than 40,000 students and faculty. “How much,” Mr. Kapto inquired, “would the cost for a similar capacity line be for the University of Lagos under the SWANSAT Shareware Telecommunications model.” Our surprising answer: EUR€1 per month for a 2 Meg/second connection, not the 1 Meg/second presently being used.

How to Generate €1 Billion per Month for the African Economy

The SWANSAT System is intended to be operated for LDC’s and DC’s after the pattern of the Marshall Plan for Europe. Because SWANsat’s marketing and operational entities are owned by charitable trusts whose beneficiaries are non-profit foundations, these beneficiaries will direct that their profits from sales of services to the world’s 7 wealthiest nations (i.e., the G7 nations) be utilized to subsidize the cost of delivering broadband services to Tiers 2-5 of the world’s economic pyramid, distributing surpluses from operations directly to the benefit of those who need such subsidies. After a minimum support subscriber account base is fully populated, monthly revenue surpluses from these subscribers (about EUR€2,000 million gross billable income per month) will subsidize subscribers residing in Tier 2-5 nations. An additional block of accounts will be reserved for sale by the SWANsat System’s financiers. Under the SWANsat Shareware Telecommunications™ model, a monthly gross income return of EUR€1 billion per month will generously compensate the funding partners who

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How to Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic Foundation for the African Union

Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic Foundation for the

finance the EUR€1 billion SWANsat System in the amount of a remarkable 100% annual interest return on investment (ROI). Because revenues from SWANSAT will accrue monthly and will be distributed to the company’s non-profit owner consortia, the actual corpus of funds can be fully distributed, not merely a percentage of interest earned on investments of endowments, as is the usual operational posture of foundations. As SWANSAT provides services to a number of full-service broadband accounts from retail subscribers in G7 nations, after a subscriber account base of 10-20 million users is fully populated, profits from these subscribers (about EUR€1 billion per month) will subsidize subscribers residing in LDC’s and DC’s. When SWANSAT becomes fully operational, after the initial EUR€12 billion has been repaid for funding SWANSAT—a milestone that could occur as little as five months after launch of the first spacecraft in the SWANSAT constellation—virtually all of the post-launch net income from operation of the SWANSAT System will be recycled through the SWANSAT Foundation Group for sponsoring deployment and rollout of 2 meg/second SWANSAT accounts in LDC’s and DC’s. The benefits of providing ICT to these nations will be incalculable.

Optional Participation by the Islamic Development Bank

As we have demonstrated elsewhere, 20 participation in the SWANSAT System and its Shareware Telecommunications model can be facilitated not only by the World Bank, the International Monetary Fund, by other international financing consortia, but participation by the international Islamic banking community is fully consistent with Islamic law and can be welcomed in partnership with the SWANSAT System. For example, the Islamic Development Banks might assist Islamic nations to better their economies by functioning as a form of mudārabah (a Sharía-honored passive partnership) as a means to assist the approximately 54 of the Tier 2-5 countries that suffer from ICT capacity deficiencies and are rooted in Muslim tradition and culture. With educational progress of these nations currently being hindered by their lack of access to low-cost, reliable ICT services, the SWANSAT model will enable governments to provide video educational capacity to their schools. By entering into contracts with these nations by which no fees are charged by these nations to SWANSAT for landing rights, and by which no fees are charged by SWANSAT to these nations for use of video channels needed to bring educational programming to their citizens, the cost of bringing SWANSAT broadband services to those who are currently underserved can be kept to an absolute minimum.

Government Contributions: Landing Rights and ODA Commitments

Tier 2-5 countries suffer from ICT capacity deficiencies that retard their educational progress. The SWANSAT Shareware Telecommunications™ model offers to enable governments to provide video educational capacity to their schools. Landing rights will be negotiated with the ministries of communication of the world’s nations. SWANSAT will offer to trade non-revenue (i.e., “free”) video capacity on SWANSAT for use by the educational and health ministries in exchange for non-revenue landing rights for SWANSAT. By entering into contracts with these nations by which no fees are charged by these nations to SWANSAT for landing rights, and by which no fees are charged by SWANSAT to these nations for use of video channels needed to bring educational programming to their citizens, the cost of bringing SWANSAT broadband services to those who are currently underserved can be kept to an absolute minimum. Meanwhile, many of the 48 richest countries are

20 See our white paper Islamic Banking and Shareware Telecommunications: How Investment in the SWANsat System Confirms to Sharia Prohibitions against Riba While Serving as an Effective Economic Model for Bridging the Digital Divide. A copy of this paper is downloadable from http://docs.swansatfoundation.com/binder/islamic.pdf.

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How to Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic

How to Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic Foundation for the African Union

significantly failing to meet their international obligations in terms of their support towards developing nations. These obligations were codified back in 1970 (!) in United Nations General Assembly Resolution 2626 (XXV) on October 24, 1970. Paragraph 43 enumerated the obligation:

In recognition of the special importance of the role which can be fulfilled only by official development assistance, a major part of financial resource transfers to the developing countries should be provided in the form of official development assistance. Each economically advanced country will progressively increase its official development assistance to the developing countries and will exert its best efforts to reach a minimum net amount of 0.7 per cent of its gross national product at market prices by the middle of the Decade. 21

The Monterey Consensus reaffirms this obligation by binding signatories—i.e., most developed countries—to spend 0.7% of their Gross National Product (GNP) on Official Development Assistance (ODA) by 2015. However, many countries will have to double, some quadruple, their present ODA in order to reach the milestones called for in the ODA timeline. Despite being nearly three years old now, the indicative OECD graph below demonstrates this pronounced situation.

Net ODA as Percentage of GNI Country Aid Amount by GNP 22

Norway

Denmark

Luxembourg

Sweden

Netherlands

Portugal

Belgium

France

Switzerland

Ireland

UK

Finland

Germany

Canada

Australia

Spain

Austria

Greece

New Zealand

0.41% 0.41% 0.41% 0.39% 0.36% 0.35% 0.28% 0.27%
0.41%
0.41%
0.41%
0.39%
0.36%
0.35%
0.28%
0.27%

0.87%

0.85%

0.83%

0.78%

0.73%

0.63%

“We urge developed countries that have not done so to make concrete efforts towards the target of 0.7% of gross national product as official development assistance to developing countries.” Monterrey Consensus, Paragraph 42

countries.” — Monterrey Consensus , Paragraph 42 0.25% 0.24% 0.23% 0.23% 0.23% Japan USA Italy 0.19%

0.25%

0.24%

0.23%

0.23%

0.23%

Japan

USA

Italy

, Paragraph 42 0.25% 0.24% 0.23% 0.23% 0.23% Japan USA Italy 0.19% 0.17% 0.15% 2 1

0.19%

0.17%

0.15%

21 I.e., by 1975, more than thirty years ago! See International Development Strategy for the Second United Nations Development Decade (http://www.un.org/documents/ga/res/25/ares25.htm)

22 Aid

(http://www.oecd.org/

Rising

Sharply,

According

to

Latest

OECD

Figures.

OECD,

January

2006

dataoecd/0/41/35842562.pdf). See also http://www.globalissues.org/TradeRelated/Development/aid/ oldgraphsoda.asp.

8 —

How to Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic Foundation for the African Union

Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic Foundation for the

Tier 1 Foreign Offices recognize the need to significantly increase the amount they spend on ODA in the coming years, but they also understand the importance of improving the actual effectiveness of official development assistance. In practice, Tier 1 countries are gravitating to models that involve “bigger, fewer, deeper and longer” 23 engagements both with developing country partners and relevant Non-Government Organizations (NGOs). In the past, severe technological and fiscal limitations have stopped nationwide ICT/ICT initiatives. We propose that Tier 1 governments and all other Monterrey Consensus signatories make SWANSAT an Official Development Assistance Project, underscoring their commitment by providing a fiscal incentive for businesses and citizens to participate in bridging the digital divide through their domestic taxation policies. By doing so, these participants will not have to increase their ODA ICI/ICT sector budgets to meet their ODA objectives. If, for example, a new taxation law stated that for every $1 received by an approved charity specifically for the SWANSAT project, the donor receives a $2 tax deductible receipt or an equivalent in tax credits, then the additional “$1 of value” added would represent the difference between the face value of the donation and the actual value of the SWANSAT system, inevitably impacting the calculation of the nation’s overall ODA contribution.

Many Tier 1 countries are seeking a High Definition TV (8mbps) infrastructure for their own citizens. If non-revenue landing rights are made available to SWANSAT, then for every EUR€50 million contributed to SWANSAT, SWANSAT has committed to provide that government five HDTV channels, which the government will be free to utilize for broadcast or to re-license to its own domestic broadcasters at a license fee or rate set at that government’s discretion. Ramifications of the SWANsat Shareware Telecommunications™ model are significant, indeed:

Tier 1 nations would have put concrete measures in place to meet (and possibly exceed) their 0.7% ODA obligations, without having had to double or more their cash expenditure on ODA (as 16 of 23 OECD countries, illustrated on the previous page, must do if they are to meet their 2015 obligation milestones).

Tier 1 citizens and companies would be incentivized by their governments to become directly and personally involved in bridging the Digital Divide.

By 2015, SWANSAT and Tier 1 countries would be well on their way to placing 370 million eligible students living in developing countries in school through United Nations e–schools and e-community programs, thus achieving one of the more important of the United Nations Millennium Development Goals.

 

Tier 1 nations, companies, and individuals would have the option to place their name on the Tier 2-5 student’s handset “brought to you by [name of stakeholder]” to facilitate reminders of the role played by the sponsor in bridging the digital divide.

 

SWANSAT has already committed to pay Tier 1 governments a free a High Definition Digital TV platform in exchange for non-revenue landing rights for SWANSAT. These governments will earn millions of dollars through High Definition broadcasting licensing revenues—all at zero risk to the licensing government—and will be enabled to provide inexpensive HDDTV access for all consumers.

Significantly, HDDTV broadcasters would not have to pass on infrastructure cost components to consumers, since there will be no such costs to pass on!

23 See,

for

example,

at

http://www.oecd.org/document/60/0,2340,en_2649_33721_34763772_1_1_1_1,00.html:

OECD

Development Co-operative Directorate. Peer Review, New Zealand 2005.

9 —

How to Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic

How to Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic Foundation for the African Union

How Tax Benefits Incentivize Multi-national Corporate Participation

The international business community could participate in bridging the digital divide by appealing to three basic motivations that inform all international business being conducted today:

Their desire for profit; and,

Their fear of failure; and,

Their need for corporate self actualization

The powerful combination of charitable foundations and trusts working together with tax-paying corporations provides a unique opportunity to satisfy all three business motivations mentioned above. Suppose, for example, a satellite network terminal manufacturer such as Nokia Siemens Networks participates in the Shareware Telecommunications™ model. It contributes the manufacturing cost of building and distributing SWANSAT handsets in exchange for tax-deductible contributions or tax credits equivalent to the true value of those terminals. By doing so, all nations in which NSN does business receive significant contribution credits toward meeting their nation-specific ODA obligations. By participating with SWANSAT as a SWANSAT Shareware Telecommunications™ corporate sponsor, NSN’s fiduciary responsibility to maximize profits for the benefit of its shareholders will be abundantly met because it has been enabled to retire national and regional tax debts by contributing to the development, manufacture, and distribution of Tier 2-5 SWANSAT earth-station terminal handsets. With appropriate governmental approval, if a handset costs USD$50.00 to manufacture, but has a market value of USD$1,000, a charitable contribution of USD$500,000 translates to a large deduction (or tax-credit) that could retire billions of dollars of tax liabilities with great rapidity—at a rate of as much as 20:1 ratio.

The desire for profit is met or exceeded. Using the example listed above, a

USD$10 million tax liability is written off through a USD$500,000 donation. The fear of failure is reduced or eliminated. The USD$10 million saved can be reassigned to pay staff, create new jobs, expand business operations, or develop new marketing programs. Industry competitors who are not participants in the SWANSAT Shareware Telecommunications™ model will not have received such benefits. The need for corporate self actualization is abundantly met. Corporate citizen obligations and public relations expectations will be met—and exceeded!—when press releases and annual meeting announcements proclaim that the affiliate company helped develop and distribute a GSO satellite-based telecommunications system that will serve the developing world’s least developed countries and developing countries (LDC’s and DC’s) on a shareware basis. Furthermore, because participation in the SWANSAT Shareware Telecommunications™ model allows the participant to expand operations into new markets, brand name recognition, branding rights, and marketing rights placements will serve as world-wide advertisements for the participating manufacturing company.

If a Tier 1 or Monterrey Consensus signatory government decides to provide domestic fiscal incentives to taxpayers who desire to help bridge the digital divide through contributions to the SWANSAT Shareware Telecommunications™ model, then all three basic motivations are simultaneously met for all contributors: individual taxpayers, businesses, and the Monterrey Consensus signatory Government. Everyone wins.

10 —

How to Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic Foundation for the African Union

Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic Foundation for the

How SWANSAT Will Manage the Supply/Demand Equilibrium

As noted earlier, within the context of SWANSAT’s non-profit structure, services will be offered within Tier 2-5 countries consistent the Shareware Telecommunications™ economic model. Tier 1 countries will also see the SWANSAT service as a very real alternative to other internet, video, and data services in their respective marketplaces. The deployment priorities in Tier 2-5 nations are expected to be:

1. Existing pre-launch subscribers and wholesale telecom customers; then,

2. E-school and community initiative participants, funded through Tier 1 nations; then,

3. Non-profit organizational members linked with other SWANSAT initiatives such as SWANGIVE and SWANBANK, two subsidiary non-for-profit international ministries intended to meet the financial requirements of SWANSAT members.

4. School students not involved in e-schools initiatives; and then

5. The general public.

Tier 2-5 citizens who do not want to be on a waiting list for the subsidized service can receive the service as soon as the satellite is operational, paying the full market rate, along with other Tier 1 subscribers. We anticipate that demand for SWANSAT services will be high in all countries that are aware of the service. SWANSAT Marketing, a wholly-owned subsidiary of SWANSAT Holdings, LLC, has proffered a number of innovative marketing strategies to ensure effective market penetration and brand awareness—even before commencement of post-launch SWANSAT services. SWANSAT’s Shareware Telecommunications™ model only needs 10-20 million full paying subscribers to begin the shareware aspect of the project. After the first 10-20 million full service accounts are deployed, Tiers 2-5 will then be eligible for handset distribution and activation. SWANSAT sets a 1:40 ratio on handset distribution, thus smoothing the deployment and the activation/support expenses. In other words, for every additional 10,000 Tier 1+ subscribers (after the first 20 or 40 million), 100,000 accounts will be released for deployment to Tier 2 citizens, 100,000 accounts to Tier 3 citizens, 100,000 accounts to Tier 4 citizens, and 100,000 accounts released to Tier 5 citizens.

Cascading Benefits of the Shareware Telecommunications™ Model

By bringing our proposed Shareware Telecommunications™ economic model to distribution of ICT services via SWANSAT to LDC’s and DC’s, everybody wins:

The underserved win, because they’ll see their broadband services underwritten throughout the world.

Corporate

stakeholders

win,

because

they’ll

receive

both

tax

deductions

and

bragging rights. Governments win, because their economies will blossom in an atmosphere of increased ICT efficiencies accompanied by a robust economy that can serve as a future tax base.

Governments might tax later revenue that proceeds from their blossoming economies. Countries that pass legislation to provide not just tax-deductions but actual tax credits to telecommunications providers will provide the world’s telecommunication providers with even more incentive to endorse the SWANSAT Shareware Telecommunications™ model. By supporting voluntary contributions to the SWANSAT Shareware Telecommunications™ model, the otherwise mandatory ODA contributions will be converted into self-directed taxation (i.e., charitable giving incentivization) that could more than double ODA participation world-wide.

11 —

EXECUTIVE SUMMARY OF THE SUPER-WIDE AREA NETWORK™ SATELLITE (SWANSAT)™ SYSTEM

THE SWANSATSHAREWARE TELECOMMUNICATIONS™ MODEL

SWANSAT System Description

A constellation of up to twelve telecommunications satellites that will operate the first commercial use of the W-

band for delivery of two-way broadband Information and Communication Technology (ICT) services worldwide. Using 500,000 watts of broadcast power, SWANSAT will operate from geosynchronous orbit (GSO) as a hybrid Broadcast Satellite Service (BSS), Mobile Satellite Service (MSS), and Fixed Satellite Service (FSS).

SWANSAT Electromagnetic Frequency Band Assignments

Traditionally referred to as the “W-band” of the electromagnetic spectrum, the 10,000 MHz assigned to SWANSAT includes 71-76 GHz and 81-86 GHz spectra located in Band 11 of the Extremely High Frequency

(EHF) 30-300GHz band described in §2.101 Nomenclature of Frequencies contained in Subpart B: Allocation, Assignment, and Use of Radio Frequencies set forth in the Rules of the Federal Communications Commission

of the United States of America. SWANSAT represents the first ever commercial claim, assignment, and use of

these frequencies from GSO. While allocated to commercial FSS and MSS decades ago, neither assignment nor claim for these W-band spectra had been made with respect to GSO telecommunications by any nation until SWANSAT filed on behalf of its Host Country an Advanced Publication Information statement making a first commercial use claim filing before the ITU in April 2004.

SWANSAT Authorizing Administration

The Republic of Nauru granted licenses in March 2004. An Advanced Publication Information statement was filed before the ITU on behalf of the Republic of Nauru by the licensee in April 2004. In mid-2005, filing procedures were commenced before the ITU with respect to recognition of Nauru’s grants to SWANSAT™ of GSO orbital slot allocations and W-band assignments for the first SWANSAT constellation of spacecraft.

SWANSAT Constellation Launch and Deployment Schedule

SWANSAT 100° West: Late 2012 SWANSAT 30° East: Early 2013 SWANSAT 150° East: Late 2013 SWANSAT 210° East: Early 2014

SWANSAT 30° West: Late 2014 SWANSAT 90° East: Early 2015 SWANSAT Spare: Late 2015 Follow-on Program Commences: Early 2016

SWANSAT Services

SWANSAT will provide global (except within 10° Latitude of polar regions), ubiquitous, point-to-point, seamless broadband ICT services from GSO, integrating VoIP, data, fax, Internet, encrypted email services, international banking and financing services online, computer networking, intranet services, video and audio entertainment, Direct Broadcast Service programming, retail and wholesale sales, Pay-per-View programming, educational programming, medical information, and other services through one comprehensive world-wide system.

SWANSAT Shareware Telecommunications™ Model

SWANSAT will provide two-way broadband ICT services to residents of least developed countries (LDC’s) and developing countries (DC’s), utilizing its Shareware Telecommunications™ economic model to meet sustainable development and wide open access goals of the UN Economic and Social Council’s ECOSOC 2000 Ministerial Declaration in full consistency with many UN Millennium Development Goals. SWANSAT

COPYRIGHT © 1996 – 2008 BY SWANSAT HOLDINGS, LLC. ALL RIGHTS RESERVED INTERNATIONALLY.

PAGE 2

EXECUTIVE SUMMARY: THE SUPER-WIDE AREA NETWORK™

PAGE 2 EXECUTIVE SUMMARY: THE SUPER-WIDE AREA NETWORK™

will accommodate two-way internet access for at least 600 million users per spacecraft with a capacity of 2 Meg/second for each user. A minimal number of non-subsidized subscriptions from residents of G7 nations will be accepted as a base for subsidizing subscriptions accepted from residents of non-G7 nations, including residents of LDC’s and DC’s and from those serving the underserved in these nations. SWANSAT will offer free educational video channels to the ministries of education and health of the world’s nations in exchange for grant of SWANSAT Landing Rights on a non-revenue basis. Access to medical information database services to remote locations of subscriber nations on a non-revenue (i.e., “free”) basis will also be included in day-to-day mission priorities of SWANSAT. See our Shareware Telecommunications™ white paper for specific information.

SWANSAT™ Cash Flow Requirements

Cost for deployment of fourteen SWANSAT spacecraft will be about EUR€12 billion in 2007 euros.* Included in cost estimates are delivery to orbit of the first fourteen IOSTAR power plant spacecraft and fourteen W-Band SWANSAT communications payloads, launch insurance for these deliveries, construction of the ground station, training of operational personnel, operation of the SWANSAT System for one year (without revenue of any kind, if necessary), design and initial production run of SWANSAT handsets, and worldwide marketing. Beginning at receipt of order (ARO), cash flow payment requirements will be as follows:

YYEEAARR AARROO

SSPPAACCEECCRRAAFFTT

SSWWAANN SS AA TT DDEELLIIVVEERRAABBLLEESS

HHAANNDDSSEETT

MMAARRKKEETTIINNGG

PPAAYYMMEENNTT

SSPPAACCEECCRRAAFFTT

GGRROOUUNNDD SSTTAATTIIOONN

EEXXPPEENNSSEESS

EEXXPPEENNSSEESS

 

YEAR 0

EUR€1.5 B

EUR€0.4 B

EUR€0.1 B

YEAR 1

EUR€1.3 B

EUR€0.4 B

EUR€0.3 B

YEAR 2

EUR€1.3 B

EUR€0.4 B

EUR€0.4 B

YEAR 3

EUR€1.2 B

EUR€0.4 B

EUR€0.5 B

YEAR 4

EUR€0.7 B

SWANSAT 1&2 GROUND STATION 1 SWANSAT 3&4 SWANSAT 5&6 SWANSAT 7&8 SWANSAT 9&10 SWANSAT 10&11 SWANSAT 12-14

EUR€0.4 B

EUR€0.7 B

YEAR 5

EUR€2.0 B

 

YEAR 6

YEAR 7

YEAR 8

YEAR 9

YEAR 10

 

EUR€8.0 BILLION

14 SWANSATS 1 GROUND STATION

EUR€2.0 B

EUR€2.0 B

*Funding calculated in euros, with construction, launch, and deployment of the SWANSAT System earth and space segments to be paid in US dollars. The difference in exchange rate between the dollar and the euro will be utilized as a contingency fund by SWANSAT Holdings.

SWANSAT Contact Information

Dr. William P. Welty Manager SWANSAT Holdings, LLC SWANSAT Marketing, LLC 13111 Downey Avenue Paramount, CA 90723-2412 USA

Telephone: +1 562 529 2789

Toll Free (USA only):

1 888 SWANSAT (1 888 792 6728)

Fax: +1 208 567 3898

eMail:

william@swansat.com

Skype: wpwelty Website: http://swansat.com

SWANSAT Executive Briefing Online

If you wish to receive a complimentary online executive briefing concerning the SWANSAT System, please visit:

http:/docs.swansatfoundation.com. A multi-part online Presentation Binder will display, from which you may choose from more than 2,000 pages of materials, most of which are posted in Adobe Acrobat PDF versions or in Microsoft-compatible file formats.

COPYRIGHT © 1996 – 2008 BY SWANSAT HOLDINGS, LLC. ALL RIGHTS RESERVED INTERNATIONALLY.

SATELLITE COMMUNICATIONS

Once launched with the appropriate communications payloads, satellites in geosynchronous orbit will provide converged
Once launched with the
appropriate communications
payloads, satellites in
geosynchronous orbit will
provide converged
communications capabilities
worldwide on the W band.

photo credit: IOSTAR Corporation

W Band and Novel Plan Bridge Digital Divide

They say it can’t be done, but this visionary is determined to prove them wrong.

By Maryann Lawlor

A tiny nation on the brink of bankruptcy and a tenacious technological futurist could parent a telecommunications leap as significant as the Internet itself. The Republic of Nauru, a South Pacific

island one-quarter the size of Manhattan, is set to be

the host country licensor of the Super Wide Area Network, defined by its creator as Wi-Fi or WiMAX

on steroids. Once built and launched, the satellite system not only would offer unheard-of ubiquitous communications capabilities but also would bridge the digital divide with a business model that provides citizens of even the poorest countries with access to the latest technologies. As currently envisioned, the Super Wide Area Network Satellite (SWANsat) system will be a constellation of no less than four and possibly as

May 2007

Reprinted from SIGNAL Magazine

Page 21

W-Band and Novel Plan Bridge Digital Divide

— Lawlor

many as a dozen high-power geosynchronous orbiting (GSO) satellites licensed to provide two-way broadband services using 10 gigahertz of electromagnetic frequency in the W band. With the exception of the regions near the North Pole and

South Pole, each bidirectional signal will cover the globe, and each spacecraft in the constellation will be able to deliver 600 million 2-megabit-per-second broadband Internet connections and about a quarter- million video channels worldwide. The first spacecraft containing the communications payload is planned for deployment

in late 2012, and subsequent launches would occur

annually until the entire constellation is in place.

According to Dr. William Welty, creator of the SWANsat concept and manager of SWANsat Holdings LLC, Cheyenne, Wyoming, once the SWANsat system is up and running, customers will use a handset that features universal serial bus 2 and FireWire ports, in/out audio and video connections with a built-in 30-frame-per-second video camera, a Bluetooth wireless headset and a built-in FM transmitter. Among the services included with

a SWANsat subscription are free

unlimited worldwide voice communications with no international calling fees, worldwide fax services and audio- and videoconferencing. In addition, customers will have high-speed Internet access, secure socket layer encrypted e-mail service with user-defined spam filtering, personal Web pages, 250 megabytes of e-mail and file server storage, digital satellite video and radio, and home school educational and entertainment channels at no charge. Encrypted global positioning system location capabilities and worldwide secure emergency services also are part of the subscriber package. Welty’s business model calls for a per-subscriber service fee of about $100 per month, well below the amount telecommunications users are paying today for these capabilities, which often are supplied by several vendors. Rather than area or country codes, the SWANsat business model features nine subscriber account territories, or SATs, each with its own code number. Although the entire package will not be available for several years, customers already can reserve subscriber accounts by purchasing MySWANmail e- mail accounts through the 128-bit fully encrypted e-

mail service. The accounts are accessible via subscribers’ current Internet landline or wireless connections. The personal account will be assigned to one of the SATs based on a customer’s physical address. Clients with more than one residence located in different territories will be able to select one primary World Code. Subscriber account numbers will resemble a combination of today’s telephone numbers and Internet protocol addresses, for example, 101.1.8777926728.swan. The dot-swan top- level domain will not be available until the SWANsat satellites are in orbit. According to Welty, every effort will be made to assign customers the SWANsat subscriber account number that matches their home or cell phone number. This kind of bleeding-edge technology is not exactly new to Welty. His experience in telecommunications began in 1982 when he pursued and obtained a broadcast license from the U.S. Federal Communications Commission (FCC) to operate, on an interim basis, the facilities of the ultrahigh frequency KHOF-TV channel in San Bernardino, California. In addition, he opened the last round of Direct Broadcast Satellite (DBS) applications with the FCC in 1987 and sold his DBS interests in 1996, donating all the proceeds from the sale to a charitable trust. Welty began pursuing the SWANsat project in 1997. The road was not easy during the SWANsat concept’s formative years. Welty conducted his own analysis of spectrum worldwide and found a section of spectrum allocated many years ago for fixed, mobile and broadcast service. “Today, all of that is converged, but the regulations haven’t caught up with the technology yet,” he muses. “I decided to drive a truck through the loophole.” The analysis revealed that all of the United Nations’ information and communication technology (ICT) regulations were based on the common carrier and broadcast models. However, Welty points out that today’s technologies enable the convergence of these two models and that common carrier and broadcast services already are merged at Web sites such as YouTube. “For SWANsat, there are not just two kinds of information and communication technologies, there are three, and we invented the third form and exempted it from the regulations of

and we invented the third form and exempted it from the regulations of Page 22 Reprinted

Page 22

Reprinted from SIGNAL Magazine

May 2007

— Lawlor

W-Band and Novel Plan Bridge Digital Divide

either,” Welty claims. “I wrote my own ITU

Telecommunications economic model can fill the digital divide. Appreciating this new business paradigm means first understanding that SWANsat is owned by a nonprofit charitable trust. When operational, the SWANsat Foundation Group, a nonprofit corporation sponsored through the Themelios Charitable Remainder Annuity Trust, will serve as a consortium of four nonprofit foundations. The trust is the majority owner of the privately held SWANsat Holdings, licensee of the SWANsat system; the foundations also will sponsor activities other than the communications system. SWANsat’s patent-pending shareware economic model is, in fact, one way to address shortcomings identified by the United Nations Economic and Social Council and United Nations ICT task force. If the methodology is applied, it would fulfill six of the organization’s Millennium Development strategic long-term goals. These include developing the basic infrastructure necessary for ICT connectivity, implementing measures to reduce connectivity costs and integrating developing nations into the networked knowledge-based global economy. The model delineates five economic tiers of nations based on per capita income, ranging from tier one of more than $20,000 to tier five of less than $1,500. Because of SWANsat’s signal reach, it would be possible to bring broadband telecommunications services to all tiers of this economic model simultaneously. Welty proposes that this can be done without sacrificing business stability of either the model or the service providers if services to the bottom four tiers are subsidized by the operational surpluses from the top-tier end users as well as from full-paying customers in tiers two through five. Subsidies would be administered through the nonprofit foundation group. For example, if the service costs $100 per month per household, the group would pay $99 of the tab for customers in tier five nations and the charge for each user would be

$1.

[International Telecommunication Union] regulation

to

cover the exemption for a frequency that was

allocated but never assigned by the ITU.” After completing his analyses, Welty initially thought about approaching the FCC with his plan to use the W band for converged services. However, he had become disenchanted with the FCC in the 1990s when it began auctioning spectrum to pay down the national debt. Calling the practice a “pre-business

tax” set by the losers who increase their bids so that the winners pay higher prices, Welty instead decided his next step would be to explore options outside the United States. It took him six years, but Welty finally found a home he was comfortable with for his new venture: the Republic of Nauru. The island nation of Nauru is located in the Micronesian South Pacific and is 8.1 square miles in land area. It has a population of scarcely more than 13,000—about the same as the student body of a mid-size U.S. university. The island’s primary source

of

income since the early 20th century had been the

exportation of phosphate, which was mined there. However, after severely depleting this resource, Nauru became a tax haven for a brief time then, in 2001, began receiving financial aid from the

Australian government. In return for the funds, the island became the home of a detention center for people seeking asylum in Australia. As an ITU nation-state, Nauru has the authority

to

license companies to operate space stations in the

W

band. The country granted licenses to SWANsat in

March 2004 and filed an Advanced Publication Information statement with the ITU on behalf of the Republic of Nauru in April 2004. By mid-2005, the filing procedures to recognize Nauru’s grants of GSO slot allocations and W-band assignments for SWANsat’s first constellation had begun. The assignments include the 71-gigahertz (GHz) to 76- GHz and 81-GHz to 86-GHz spectra located in Band 11 of the extremely high frequency 30-GHz to 300- GHz band. Welty emphasizes that the business negotiations and subsequent agreements were neither a matter of a big corporation taking advantage of a poor country nor a situation of a desperate country grasping at a last economic straw. Instead, by adopting an unusual and relatively unique economic-business model, he believes that SWANsat not only will bring ubiquitous converged communications capabilities to the world and prosperity back to the Republic of Nauru but also will demonstrate that the Shareware

Welty explains that the economic model includes ensuring that SWANsat would not compete with a local economy it is attempting to boost. To incorporate the local service providers into the financial structure, first SWANsat personnel will use the official national population number that a country reports to the United Nations. Because the very young and very old are not typically computer users, this number will be halved. The quotient will be the country’s official number of computer users, and the

May 2007

Reprinted from SIGNAL Magazine

Page 23

W-Band and Novel Plan Bridge Digital Divide

— Lawlor

local provider will administer the user billing system. In the $100-per-month cost example, the local provider could pay SWANsat $1 per computer user, and the nonprofit group would subsidize the remaining $99 per computer user. “The local providers can charge their computer users $2 a month; the fee structure is up to them. They can decide how to make this work for them in a way that benefits their country,” Welty observes. This innovative business model resembles some old-fashioned transaction approaches. Welty allows that countries he considered approaching for licensing agreements proposed charging the corporation for providing it a home. But he explained to these countries’ representatives that bartering would be mutually beneficial. Case in point, SWANsat is providing the Republic of Nauru free access for educational use. Of course, Internet access is useless without computer equipment, and Welty currently is addressing this side of the business equation. A vendor has not yet been chosen for the earth segment of communications, he says, but equipment such as home receivers, telephones, handsets and dish receivers are part of the estimated total cost of the SWANsat project. Of the 12 billion euros, or approximately $17 billion, for overall cost of the system, Welty estimates that 6 billion euros will be needed for the launches and for station keeping, 2 billion euros will be required for public relations and advertising and 2 billion euros will be allocated for user equipment. Funding to begin the project has not yet been secured, Welty allows, but could come from either nations or private investors. However, the project is moving steadily along, he states. Of the 10 items on the corporation’s “to-do” list, the majority has been checked off. Frequency assessments are complete; orbital research is finished; international licensing is done; and the initial per capita income study of nations is complete. In addition, IOSTAR Corporation, Salt Lake City, has been under contract to SWANsat Holdings since October 2005 to design, develop, produce and deliver to orbit high-power W-band communications payloads for SWANsat and to manage their on-orbit operations. While Welty will control the commercial side of the SWANsat business, IOSTAR retains the right to pursue business for the SWANsat system in the defense sector. Items that remain on the to-do list include acquiring landing rights agreements, spreading the

word about SWANsat and, of course, obtaining the initial funding. Welty believes that once he can check this last item off, it will be about four and a half years until the satellites are in place and widespread telecommunications can begin. Welty is not surprised that this technology as well as the Shareware Telecommunications business model sound outlandish to some; in fact, the more people who say it cannot be done, the more convinced he is that he will do it. History is replete with examples of naysayers who turned out to be utterly wrong, he points out. For example, an 1876 Western Union internal memo predicted that the telephone had too many shortcomings to be considered seriously as a means of communication and as such was of no value to the company, and Lord William Thomson Kelvin gave an assessment in the 1800s that radio had no future. Welty even cites reactions that David Sarnoff received in the 1920s when he talked about investing in radio. “The wireless music box has no imaginable commercial value. Who would pay for a message sent to nobody in particular?” some said to Sarnoff. But, Welty says with a chuckle, “The more people say this isn’t possible, the more I smile.”

“The more people say this isn’t possible, the more I smile.” Page 24 Reprinted from SIGNAL

Page 24

Reprinted from SIGNAL Magazine

May 2007

How to Bring Continent-Wide ICT Connectivity to Africa by 2013 and Establish a Stable Economic Foundation for the African Union

a Stable Economic Foundation for the African Union SWAN SAT Contact Information Dr. William P. Welty
a Stable Economic Foundation for the African Union SWAN SAT Contact Information Dr. William P. Welty

SWANSAT Contact Information

Dr. William P. Welty

Telephone:

+1 562 529 2789

Manager

Toll Free (USA only):

1 888 SWANSAT (1 888 792 6728)

SWANSAT Holdings, LLC

Fax:

+1 208 567 3898

SWANSAT Marketing, LLC

eMail:

william@swansat.com

13111 Downey Avenue

Skype:

wpwelty

Paramount, CA 90723-2412 USA

Website:

http://swansat.com

If you wish to receive a complimentary online executive briefing concerning the SWANsat System, please visit http://docs.swansatfoundation.com. A multi-part online Presentation Binder will display, from which you may choose from more than 2,000 pages of materials, most of which are posted in Adobe Acrobat PDF versions or in Microsoft-compatible file formats. Unless otherwise noted, all documents posted are COPYRIGHT © 1996 - 2008 BY LEADING EDGE TECHNOLOGIES, LTD., BY

SWANSAT HOLDINGS, LLC, BY SWANSAT MARKETING, LLC, BY SWANSAT INFORMATION SYSTEMS, LLC, OR BY OTHER AUTHORIZED AGENTS OR ASSIGNEES OF SWANSAT HOLDINGS, LLC. ALL RIGHTS RESERVED INTERNATIONALLY.

20 —