1. Addressing the WiMAX Market: How will service providers differentiate themselves? Allan Klein Vice President, Technology

2. 2 SR Telecom – Snapshot Developing, manufacturing and delivering field-proven, carrier-class broadband data and voice wireless technology throughout the world. A Global Leader For over 2 decades, SR Telecom has committed to providing robust telecommunication networks that adapt to its customer's evolving needs Inventor of point-to-multipoint TDMA voice and data transmission and NLOS OFDMA broadband technologies Headquarters in Montreal, Canada with sales and service offices located worldwide 2, 000 000 subscribers connected in over 130 countries Principal member of the WiMAX Forum Inventor of point-to-multipoint TDMA voice and data transmission and NLOS OFDMA broadband technologies Headquarters in Montreal, Canada with sales and service offices located worldwide 2, 000 000 subscribers connected in over 130 countries Principal member of the WiMAX Forum

3. 3 Equipment in 130 countries SR Telecom - The Leader in Licensed OFDM

4. 4 How Do Service Provider’s Differentiate? Differentiated services Reliable service offerings Competitive Pricing Service management As a wireless technology, WiMAX imposes new challenges

5. 5 WiMAX deployment models are shifting Carriers’ business plans are evolving –First-generation WiMAX enables fixed BWA Optional WiMAX features provide differentiation –Advanced WiMAX features will enable indoor self-install model –802.16e will bring portable/nomadic and mobile capabilities: Personal Broadband Deployment models will vary at different stages of WiMAX evolution

6. 6 WiMAX/802.16 adoption 20042005200620072008 802.16e 802.16 -2004 802.16 -2004 Nomadic Fixed Access Nomadic & Simple mobility Full mobility Volume Technology Trials Growth Costs

7. 7 Fixed WiMAX Network Example WiMAX BWA Solution: Simultaneous Connections to Multiple Service Providers and Support of Applications Requiring Differentiated QoS Access Edge Router IP VPN Internet Service Provider 1 Internet Service Provider 2 ASP VoIP/ SIP Regional Broadband Data Network Public/ Private Data Network 100BaseT VLAN Small Medium Enterprises Residential DSL Like Broadband VoIP Gateway SOHO HotspotBackhaul WiFi Router WiMAX BWA Sector

8. 8 Differentiated Services Premium offerings –High-bandwidth services –Guaranteed QOS Full suite of IP services VoIP: Tiered service offerings possible –Basic (VoIP services available over any high-speed connection) –Carrier-class VoIP (Primary-line voice for residential/SOHO) –Enterprise (connections to IP PBX, IADs or hosted IP Centrex) Service Bundling Nomadic services: Personal Broadband Advanced scheduling services and QOS management required “Basic” WiMAX is not sufficient Advanced scheduling services and QOS management required “Basic” WiMAX is not sufficient

9. 9 WiMAX Services and Applications Residential Services High Speed Internet VoIP Telephony Gaming Business Services: Data Services Corporate Internet Web Hosting Branch Office Networking IP VPN Video Conferencing VoIP Telephony, IP Centrex Network Backhaul Telecommuter/ VPN Connection Video Surveillance Nomadic/ Hotzone High Speed Internet VoIP telephony DSL Like Broadband WiFi Backhaul Gaming WiMAX Application Examples :

10. 10 Reliable Service Offerings Reliable services are built on reliable networks User Internet experience must be consistent High-availability NLOS wireless connections critical –Licensed spectrum required –Optional WiMAX airlink features are critical –Reduce customer support and complaint calls –Installation and service verification tools important –Build reputation for reliability Minimize time required to solve customer problems –Rich, real-time diagnostic tools important –Service “health check” and efficient problem resolution

11. 11 Performance Monitoring Capabilities 24x7 Monitoring of the Performance of the Network –WAN Interface Performance –Airlink Performance Packet data Voice Block error rate RSSI, C/I, K-factor (at CPE) Dynamic channel allocation Power control –Call Processing Performance –Network Interface Performance Operator benefits from deep visibility, debug and control Reports showing trends in performance allow the operator to fine-tune operating procedures

12. 12 Competitive Pricing Service pricing influenced by cost of network build out Minimize up-front Capex –“Pay-as-you-grow” model –WiMAX equipment must be selected to reduce overall network cost –Optimize use of spectrum and equipment Minimize Opex –Reduce costs associated with unsuccessful installs –High-availability connections reduce customer support and complaint calls –Minimize time required to solve customer problems Expenses associated with a network can be a bigger driver than capital cost in your business model. WiMAX solutions must place an emphasis on those expenses and use technology to keep them under control.

13. 13 Service management Rapid service activation important –High predictability of wireless coverage essential. –Network design with probability of coverage in mind –Optional WiMAX airlink features are critical. –Reduce installation time and unsuccessful installs Integrated tools to ease service provisioning Hosted IP services add additional flexibility WiMAX model evolving to include external policy servers –Dynamic service provisioning –WiMAX equipment must be capable of maintaining QOS in this environment

14. 14 WiMAX deployment model #1 Pay as you grow Start with a few macro-cells per city –Traditional model for BWA networks –Minimize initial investment Outdoor-install CPEs required to achieve desired coverage –Advanced optional WiMAX features required to provide desired coverage and maximize link availability under NLOS Indoor self-install possible for close-in CPEs –Advanced optional WiMAX features become critical Increase network capacity as subscriber base grows –Additional base stations and/or sectors per BS

15. 15 Macro-cell Example using pre-WiMAX symmetry

16. 16 WiMAX deployment model # 2 Start with many micro-cells per city –Traditional model for mobile networks –Maximize network capacity and coverage –Larger initial investment required –Network designed to maximize probability of coverage Higher percentage of indoor self-installs possible –Advanced optional WiMAX features become critical Near-ubiquitous coverage enables nomadic services: “Personal Broadband”

17. 17 Maximizing probability of coverage Blue areas represent 90% probability of coverage.

18. 18 WiMAX Network Deployments? WiMAX-deployments need WiMAX-certified equipment –Will start for real in 2006 Carriers have been moving forward nevertheless –Deploying WiMAX-ready technology where upgrade path to WiMAX-certified exists –Technology trials to understand WiMAX technology –Development of business plans –Spectrum acquisition –Vendor selection

19. 19 Project Telefónica de España - Spain Provide voice and Internet access to rural Spain EU funded replacement of 250,000 rural ETACS subscribers Nationwide deployment Initial project involves hundreds of Base Stations and ~100,000 subscribers symmetry Selected Proven network scalability to hundreds of Base Stations Spectral Efficiency (entire project will require only 4 MHz of spectrum) RF planning experience with NLOS OFDMA Upgradability to WiMAX

20. 20 Project - Bluetone symmetry Czech Radio - Czech Republic Nationwide deployment in largest urban centers Urban, suburban Broadband data & voice 15 Base Stations and 10,000 CPEs symmetry Selected Spectrum Efficiency NLOS - including indoor installations Quick installation Best-in-class network management

21. 21 Chatham-Kent - Canada Canadian BRAND funding Rural, suburban deployment in dense forested area DSL data speeds Multi-Base-Station deployment covering Chatham-Kent County Project Leading NLOS coverage Spectral Efficiency WiMAX-ready Base Station Carrier-class equipment Low-cost CPEs symmetry selected

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