Questions, page-2

Hi T,

1. This is unknown and not published. But if we look at Iridium they have consistently had GP margins of 72-75% implying a COGS for users of 25-28%. There might be other items in the GP like equipment so it’s not clean but I have been conservative and have airtime COGS of 30%. BCC is also a price taker in that relationship so I’m comfortable with that assumption. My ARPU is $42.50 - again, this is not published but I’ve shown previously how I got to this #

2. Unknown and I don’t have a view. More importantly Carl’s business remains a key supplier. I don’t see Carl leaving as material to my investment thesis.

3. Yes his REM is high vs the market cap. On his participation in the CR, he already has a lot of skin in the game. With his wage and shares he’s massively overweight to an exposure on BCC. I think he’s good for BCC and while we might want him paid a little less, a couple of hundred grand is immaterial vs our upside. His comp also reduces the risk of him leaving.

Cheers