Presentation on theme: "Alvarion Carrier Grade Wi-Fi Market & Industry Review"— Presentation transcript:
1Alvarion Carrier Grade Wi-Fi Market & Industry Review Proprietary and Confidential
2DisclaimerThis presentation contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of These statements are based on the current expectations or beliefs of Alvarion’s management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: potential impact on our business of the current global recession, the inability of our customers to obtain credit to purchase our products as a result of global credit market conditions, the failure to fund projects under the U.S. broadband stimulus program, continued delays in 4G license allocation in certain countries; the failure of the products for the 4G market to develop as anticipated;, Alvarion’s inability to capture market share in the expected growth of the 4G market as anticipated, due to, among other things, competitive reasons or failure to execute in our sales, marketing or manufacturing objectives; the failure of the Alvarion’s strategic initiatives to enable Alvarion to more effectively capitalize on market opportunities as anticipated; inability to further identify, develop and achieve success for new products, services and technologies; increased competition and its effect on pricing, spending, third-party relationships and revenues; as well as the inability to establish and maintain relationships with commerce, advertising, marketing, and technology providers and other risks detailed from time to time in the Company’s 20-F Annual Report Risk Factors section as well as in other filings with the Securities and Exchange Commission. The information in this presentation is provided solely for information purposes, and is not a commitment, promise or legal obligation to deliver any products, features and/or functionalities, and should not be relied upon in making purchasing decisions. The development, release and timing of any products, features and/or functionalities described remains at the sole discretion of Alvarion. If and when any products, features and/or functionalities are offered for sale by Alvarion, they will be sold under agreed upon terms and conditions. This information may not be incorporated into any contractual agreement with Alvarion or its subsidiaries or affiliates. Alvarion makes no representations or warranties with respect to the contents of this presentation, and specifically disclaims any express or implied warranties of merchantability or fitness for any particular purpose. Copyright 2012 Alvarion Ltd. All rights reserved. Alvarion®, its logo and certain names, product and service names referenced herein may be either registered trademarks, trademarks, tradenames or service marks of Alvarion Ltd in certain jurisdictions. All other names are or may be the trademarks of their respective owners. The content herein is subject to change without further notice.
3Carrier Grade Wi-Fi Definition Delivers the Service End-users ExpectThe Service Provider PerspectiveScalable to million of usersLong range – less APs per sq-kmSmooth deployment and trouble-free operation (NMS)Open standards - Back office integrationThe User PerspectiveSeamless service (HS2.0 ready)QoSHigh capacitySecuredWe here about Carrier Grade Wi0Fi a lot. What is it?
4Outdoor Wi-Fi - Positioning Map Alvarion is a Carrier Grade Wi-Fi Market LeaderGrowth, $1B Market in 1-2 yearsAltai, GoNet, BelAirAlvarion-WavionCiscoRuckusCellular OffloadingDirectCarrier Access ServiceMotorola$$ Per AccountSea portsMinesOil & gasHotelsCampusSafe CityAir portsCiscoMallsSPGTropos Firetide SkypilotUbiquitiHigh-end WISPsMikroTikDistributionLow-end WISPs
5Mobile Broadband Traffic is Soaring Exponential Demand for Mobile Broadband TrafficAT&T: 8X increase in data traffic between coinciding with the launch of the iPhoneCisco: 26x growth between 2010 – 2015, 65% will be videoCapacity Inflation Point55
6Wi-Fi Overtakes ALL IP Networks in 2015 Fastest Growth is with Mobile, yet Wi-Fi will Carry Most of The LoadMobile Traffic growth leads with 92% CAGR (Wired 24% CAGR, Wi-Fi 39% CAGR)The biggest driver for the global traffic growth will be videoMost of Wi-Fi data is Indoor (residential & Enterprise)The Death of Mobile? The Rise of Wi-Fi as a Viable Alternative to Mobile Cellular Networks , Cisco, November 2011
7Wi-Fi is a User Driven Phenomena The User perspectiveLow cost, unlicensed band and interoperability propels adoptionWi-Fi-only tablets are hereApple: iPhone 4S owners use twice as much data as iPhone 4 users and three times as much data as iPhone 3G owners CNET Jan 2012Half of Smartphone usage is already on Wi-Fi Bango early 2011
8Wi-Fi is Strategic to Cellular Operators The Service Provider perspectiveUbiquitous, low cost deploymentWi-Fi will offload ~ 60% of mobile data traffic by 2015 Juniper 4/2011:Hotspot number will grow from 1.3M in 2011 to 5.8M in 2015 Informa40 connections per sec. on AT&T Wi-Fi hot spot network on 3Q11302 million Wi-Fi connections on 3Q12, 3 times more than last year“47% of mobile operators: hotspots are crucial to enhance their customers’ experience” WBA Industry Report 2011Hot-zones in San-Francisco, London, Singapore, Seoul, Tokyo…AT&T paid $275 million in cash to acquire Wayport, a start-up that at the time had constructed a hotspot constellation of 8,000 locations.AT&T now has over 30,000 hotsports in airports, hotels, port arenas,
9Wi-Fi Cellular Integration Standards 3GPP, IEEE, WFA, WBAWi-Fi integration with 3G – 2004 (3GPP I-WALN)Ahead of its timeSIM AuthenticationWi-Fi integration with LTE – 2010 (3GPP LTE EPC core)Common service deliveryWFA Hotspot Certification starts in mid 2012WBA and WFA initiativeANDSF - Access network discovery and selection functionWISPr - Wireless Internet Service Provider roaming
10Wi-Fi is Strategic to Cellular Operators Backhauling & joint LTE / Wi-Fi nodesMicro cells backhaulSmall cells to drive over $1.5B in wireless BH by 2016 Mobile Experts, 10/201158% of outdoor small cells will be BH by wireless by 2016 ABI Research 9/2011Heterogeneous networks is the futureLTE + Wi-Fi micro cellsHeTNET
11Wi-Fi is Strategic to Cellular Operators New Services OpportunityLocation based servicesAdvertisement, reminders, friends finder, emergency servicesWi-Fi will be used for Indoors and urban canyonsIndoor navigation – the leading app, hotAccuracy is the keyMalls, Airport terminals, large retail stores, campuses, museums…Managed Wi-Fi servicesBluetooth – NokiaWi-Fi and cellular signals – Microsoft, RIMQualcomm – sensors and Wi-Fi
12Wi-Fi to Lead Location Solutions by 2015 Over a Billion Wi-Fi Location Based Devices by 2015Alternative Positioning Technologies , ABI, October 2010
13The Outcome - Wi-Fi is Booming Over a billion Wi-Fi chipset shipment by 2012From 0.5 billon in 2009 to nearly 1.7 billion Wi-Fi enabled devices, in 2015Wi-Fi technology rapid development continues: Beamforming, Hotspot 2.0, ac, Wi-Fi direct, ad, aF…The White Space opportunityIn-Stat's September 2010
14A few words about Private Networks Education – 300,000 K-12 schools in NAHospitality – “many hotels offer unreliable or outrageously expensive wireless Internet access” TechCrunchOil & Gas – Video Surveillance, VoIP, logistic area …Hekou OilDawn Lake HotelHeilongjiang DaqingGuangxi Qinzhou UniversityZunyi Government building
15Summary Opportunities Come With Challenges Interference and low power regulation Alvarion Wi-Fi leadsService accessibility – complex today HS2.0Security SIM/Web authentication, AESCore integration AAA, tunnelingUnified user profileService continuityMobilityRoamingBusiness case profitability Lowest number of base stations per sq-km, reliable