2. NEOTEC José Luiz N. Frauendorf June, 2001 BRAZILIAN MMDS OPERATORS ASSOCIATION

3. WHAT IS MMDS ? NEOTEC

4. MULTIPOINT MULTICHANNEL DISTRIBUTION SYSTEM NEOTEC

5. BAND ALLOCATION

6. SPECTRUM ATRACTION BAND WIDTH x ATTENUATION

7. MMDS STRENGTH Lower cost than cable Lower cost than cable Investment only at customer’s premise Investment only at customer’s premise Fast to implement Fast to implement Reliable - protected spectrum Reliable - protected spectrum Ideal for small and medium markets Ideal for small and medium markets Convergent Technology (video, voice and data) Convergent Technology (video, voice and data) Benefits from cellular technology improvements Benefits from cellular technology improvements NEOTEC

8. MMDS APPROACH - Pay TV the only service - Analog technology - Macro cell distribution - Line-of-sight only - Residential market only - Multiple services (video, voice and data) voice and data) - Digital technology - Macro and / or multicell - Line-of-sight not required - Residential and corporate market market YESTERDAY TODAY

9. MULTIMEDIA CONCEPT BROADCAST: Video Audio Telecommunication: Phone / Fax Data / Internet PAY-TV Premium TV PPV / VOD Games Music + SINGLE SERVICE PROVIDER

10. Residential Market: – Analog Vídeo – Digital Video – Fast Internet Access Corporate Market: Internet Access Internet Access – “VPN´s” - Virtual Private Network – Video Conference – IP Telephony POTENTIAL SERVICES NEOTEC

11. WHY IS MMDS SO IMPORTANT TO BRAZIL? NEOTEC

12. BRAZIL RESIDENTIAL MULTIMEDIA MARKET Total Population = 160.000.000 Inhabitants Total Homes = 40.000.000 HH Total “A”, “B” and “C” classes = 30% Total Market = 12.000.000 HH Total Subscribers = 3.500.000 (Today) Penetration in 2,005 = 60% Total Subscribers in 2,005 = 7.200.000 HH

13. BRAZIL CORPORATE MARKET LARGE COMPANIES: Quantity= 5.000 Top size = 350 Revenue = US$ 200 mi. to US$ 4.7 bi. (top 350) Data service = R$ 5.9 bi. SMALL + MEDIUM CO. Quantity = 3.5 mi. PIB - 52% total Revenue = US$ 50,000 to US$ 200 mi. Data service = R$ 12 bi. Source TELETIME March 2,001

14. Periferic Region ( < 200 HP / Km) MMDS DSL modems Cable modems Urban Region ( > 200HP/Km) Fiber LMDS MMDS DSL modems Cable modems Rural Region (< 50 HP/Km) MMDS Satellite MMDS MARKET POSITIONING NEOTEC

15. MMDS - PLANNING NEOTEC

16.  CAPACITY  COVERAGE  INTERFERENCE MMDS - PLANNING KEY POINTS NEOTEC

18. DIGITAL 3D MAP SURFACE AND STREETS NEOTEC

19. TRANSMISSION TRANSMISSION MODELING NEOTEC

22. SHADOW AREAS NEOTEC

23. SHADOW AREAS vs. TARGET MARKET NEOTEC

26. FREQUENCY PLANNING NEOTEC

27. ANALOG / DIGITAL VIDEO HEADEND BLOCK DIAGRAM NEOTEC

28. DVB SATELLITE RECEIVER LOCAL SOURCE ANALOG SATELLITE RECEIVER OFF-AIR DEMODULATOR MPEG - 2 ENCODER MPEG - 2 ENCODER MPEG - 2 ENCODER AUDIO VIDEO A/V MULTIPLEXER QAM MODULATOR SCRAMBLER COMBINERCOMBINER BRODBAND TRANSMITTERBRODBAND TRANSMITTER ANTENNAANTENNA SIGNAL AQUISITIONSIGNAL PROCESSING SIGNAL MODULATION SIGNAL TRANSMISSION DIGITAL HEADEND BLOCK DIAGRAM CA

30. INTERNET HEADEND BLOCK DIAGRAM NEOTEC

31. Receiving Antennas (“up-stream”) Transmitting Antennas (“down-stream”) CMTS INTERNET HE BLOCK DIAGRAM

32. CUSTOMER’S PREMISE EQUIPMENT (CPE) BLOCK DIAGRAM NEOTEC

33. DISTRIBUTION BLOCK DIAGRAM NEOTEC

35. SYSTEM ARCHITECTURE NEOTEC

36. DOCSIS “+” STANDARD

37. NETWORK OVERVIEW

38. WHAT IS “NEOTEC”? NEOTEC

39. MMDS OPERATIONS GEOGRAPHIC DISTRIBUTION House Holds = 18.7 mi. (81%) Operations = 92 (63%) Municipality = 338 (72%) (NEOTEC) Total NEOTEC

40. CHALLENGES Internacional Market Demand Industry Standard Open System Near “line-of-site” Installation Suppliers Diversity Equipment Cost Market / Investor’s perception Latin America and specially Brazil are the largest markets

41. THANK YOU NEOTEC R. Pedroso Alvarenga, 505 /132 04531-011 São Paulo S.P. Brazil c/o: José Luiz N. Frauendorf e.mail: jlfrau@uol.com.br Phone: (55-11) 3167-6252