1. CANTO – Freedom in Waves Ian Lenathen Director - Sales Bermuda and Caribbean Region Airspan Networks President – BroadbandAction Inc. Connecting The World

2. 2 Commercial in Confidence VoIP Market Growth --- VoIP Market Growth --- Residential US Now – over 3 Million Users By 2008 – 27 Million Business US By 2008 - 44% IP Telephony

3. 3 Commercial in Confidence Traditional Telecom Monopoly Business Model Best Model to ensure world connectivity. Long term contracts Exclusive Multi-Million $ Investment Guaranteed Returns Good For Government Taxes Good For Tourism PIF

4. 4 Commercial in Confidence Diminishing Revenues Long Distance Revenue is falling –Diminishing tax revenue to governments –Hotels charging for Broadband Some block VoIP Mobile Phone Revenue increasing –Marketing and Engineering energy focus –Incumbents put less focus on Broadband Penetration $ $

5. 5 Commercial in Confidence Dial up –E-mail –Fax Killer Broadband –Richer Content –Cable competition –Converging Networks –Converging Services Multiple Threat –Music Content –Movie Content –Voice Network Assets Packet Switched - Digital Telephone Television/Radio-Media Data Converging Networks Converging Services Internet Protocol Network Convergence = Service Convergence Traditional Business Models Challenged Market Discontinuity In Content Distribution and Billing Data + Movies + Radio + Voice IP Internet

6. 6 Commercial in Confidence IP Trumps IP IP = Intellectual Property IP = Internet Protocol Follow the Rules The Rules don’t apply

7. 7 Commercial in Confidence Pay Per Use Business Model – Adapting Strategies Apple Computer –iPod – iMusic – New Products – New Business Model 5 Million iPOD’s Sold in first three months of 2005 Sony Pictures – New Products – New Business Model 500 most popular titles available from Sony digital download site by 2006.

8. 8 Commercial in Confidence PSTN – Same Pain More Sources Cable Companies - Unregulated Desktop Portals - Unregulated VoIP and Peer to Peer - Unregulated

9. 9 Commercial in Confidence In My Humble Opinion… Greatest threat to Incumbent Telephone companies… –Competitors granted License to compete in Island Nations No desire to run the wire Leap-frog with Fixed and Nomadic Wireless Access Hot Spot and Wireless backhaul. For the first time in history – competitors can provide voice and data services to mass markets without touching any part of the Incumbents Network!

10. 10 Commercial in Confidence Market Discontinuity Entry fee to become a Telecom Provider is very inexpensive. –Very little Outside Plant – No wires, No holes, No poles. –Faster redeployment if a Hurricane hits –“Instant” Penetration –“Instant” Service Bundle –

11. 11 Commercial in Confidence INTERNETBACKBONE Private (Fiber) Network Non Line of Sight Point to Multi- point OUTDOORCPE 802.11 Proprietary ProprietaryPtP INDOORCPE Point to Point BACKHAUL ProprietaryPtMP Proprietary Fixed Wireless Base Station

12. 12 Commercial in Confidence INTERNETBACKBONE Private (Fiber) Network Non Line of Sight Point to Multi- point OUTDOORCPE 802.11 Proprietary WiMAXPtP INDOORCPE Point to Point BACKHAUL WiMAX Hybrid Deployment – Standards = Ubiquity Base Station

13. 13 Commercial in Confidence Spectrum Profiles – Towards “Harmonization” 2 34 GHz56 3.300-3.400 Low and Mid U-NII Bands 5.150-5.350 802.11a Upper U- NII/ISM Band 5.725-5.850 WRC 5.470-5.725 Unlicensed ISM (802.11b/g) 2.400-2.480 Unlicensed 3.5GHz Band 3.400-3.600 MMDS 2500- 2.690 2.700- 2.900 US WCS 2.305-2.320 2.345-2.360 Licensed WiFi Future WiMAX profiles Initial WiMAX profiles Ian L Only Two System Profiles will be released Initially: 3.5 GHz FDD 5.8 GHz TDD PCS 1.850-1.990 Broad Global Utilization of 3.5 GHz Asia Pacific – Australia, NZ, China, India (3.3-3.4) Japan, Malaysia, Taiwan. EMEA – Czech Republic, France, Germany, Hungary, Greece, Ireland, Norway, Poland, Romania, Russia, Spain, Switzerland, UK, Israel, Turkey, Nigeria, Mali. Americas – Argentina, Brazil, Canada, Columbia, Costa Rica, Ecuador, Mexico, Peru, Uruguay, Venezuela Licensed 4.9-5.03 GHz TDD Unlicensed - 10MHz Channels - Airspan Yozan Japan Market Driven WiMAX example 2,5 GHz 3G Europe Wants it 3G Europe

14. 14 Commercial in Confidence Speaker Name Title of Speaker Spectrum by Region Target ’05-’07 Deployment Bands USA 2.5, 5.8 and 3.4 GHz Possible 700 and 900 MHz Central & So America 2.5, 3.5 & 5.8 GHz EUROPE 3.5 & 5.8 GHz Possible: 2.5, 3.6 GHz MIDDLE EAST AFRICA 3.5 & 5.8 GHz ASIA PACIFIC 2.3, 2.5, 3.5 & 5.8 GHz CANADA 2.3, 2.5, 3.5 & 5.8 GHz RUSSIA 3.5 & 5.8 GHz Possible: 2.3, 2.5 GHz

15. 15 Commercial in Confidence VoIP Served by Wireless vs. Wireline VoIP is simply Voice over a Packet Network. –Wireline companies could easily offer VoIP –Must protect their investment in the installed “way” of doing things. Market discontinuity (Network Connectivity and Digital Broadband Services) –Wireless Deployment to the home is now possible –Carrier grade VoIP from the Wireless Network is now possible “Slow as Possible” Strategy is Risky if mistimed

16. 16 Commercial in Confidence Traditional Wireline – An example – Atlantis Telco Served the Island Nation for the past 50 years (monopoly business model) Local, Tandem, Gateway TDM Circuit switches Data Networking Overlay with a fiber ring Mobile network for past 10 years Dial Up Internet for past 8 years DSL offered two years ago – Penetrations at 10% of market Marketing and Engineering has concentrated on Mobile side the business since this is where customer growth has come from in the past few years. Recently dropped DSL price by 30 % Residents of the island feel they are paying too much and want to use their broadband as they see fit including running Vonage, Skype and Net2Phone.

17. 17 Commercial in Confidence Traditional Wireline Competitive Threat Government granted license to local “data” company New company promised: – High speed Internet for everyone – Carrier Grade Voice Services –Value Added Services available through monthly subscription The incumbent was wary but knew they owned the wire infrastructure –Started pushing hard to increase DSLAM Installations to increase penetration.

18. 18 Commercial in Confidence The Wireless Broadband Service Provider Received permission to use spectrum Deployed Soft Switch Class 4 and Class 5 switching Servers Installed Towers, Base Stations and Wireless Back Haul Created a Marketing plan for CPE and Value added Services including VoIP Deployed Hot Spot and Mesh Networks at key locations

19. 19 Commercial in Confidence New Company Deployment - Freedom in Waves IP Network PSTNMobile Base Station Soft Switch Network Management Subscriber Terminal SS7 ISUP Soft Switch Hotspot

20. 20 Commercial in Confidence Indoor Deployment Desktop (Integral Antenna) Indoor Deployment ( Window Antenna) EasyST with WiFi “Base” 1 2 3 Subscriber self install --- no truck rolls! Airspan AS MAX CPE The EasyST

21. 21 Commercial in Confidence Wireless Broadband Access Business Case Metrics Costs –Infrastructure SoftSwitch BSR –CPE Media Gateway –Software Licenses –Support –Training –Installation Revenue –One time set up fees CPE Lease or Own VoIP –Monthly subscription fee VoIP Content Filtering Secure e-mail Anti-virus/Anti-SPAM E-Learning Home/Office Video Surveillance –Hot Spot Subscription & Pay Per use. –Hot Zones with Mesh and WiMAX 72 % less cost than Traditional TDM Network

22. 22 Commercial in Confidence An incumbent’s “Pre-Emptive Strike!” C&W Cayman has launched “NetSpeak” VoIP is here as a local incumbent broadband service provider offering Wireless broadband deployment accelerates time to market – DSLAM’s Versus Base Stations…

23. 23 Commercial in Confidence It is not a question of Broadband or VoIP It is a question of who will deliver it first to the greatest segment of the market! It is a question of who will provide the most compelling bundles! Owning the wire to the home is no longer an asset… it may even be a liability Airspan Believes both incumbents and new competitors must deploy BWA to remain competitive. QoS and Speed to market is key.

24. Thank You! Connecting The World