Stimulating Rural WiMAX Rural Deployment Examples & Alternatives John H. Longo Principal, Broadband Market Visions September 1, 2009 Mobile: +1.973.229.6130 jlongo@broadbandmarketvisions.com www.broadbandmarketvisions.com

Fixed WiMax / WiFi 4K to 8K Wireless ISPs Fixed WiMax, pre-WiMax, and WiFi deployments Antennas fixed and tuned to maximize bandwidth and QOS Services: fixed VoIP, portable VoIP and broadband internet Speeds: 512 Kbps to 3 Mbps symmetrical Locally owned and operated Cottage industry deployments to fill market voids Less successful: “Field of Dreams” marketing Penetration rates of ~10% Challenge: maintain customers and profitability as alternatives become available

Portable WiMax 802.16e mobile WiMax standard Traditional cellular service type deployments Portable deployments within served communities with customer installed CPE Services: portable voice and broadband internet Speeds: 500 – 768 Kbps up / 1.5 to 2.5 Mbps down Locally focused, community marketing including schools, police and businesses Average population: 10K per community Penetration rates >15 - 20% Challenge: long-term evolution to full 4G mobile service with roaming agreements and national or global coverage

Fiber to the Home Fiber to the premises deployment Privately held for profit company with 40% of stock held by non-profit entities in the community Services: voice, video, broadband internet, adding mobile voice Speeds: up to 100 Mbps (1 Gbps possible) Communities of 900 to 30K Locally focused marketing and customer service, including local community offices, local employees, and local video content, Video leads service adoption; voice and internet are add-on services that provide the greater margins Rural requires >50% penetration; example operation 70% - 80% with prices above incumbent Challenges: high penetration rates; providing local content

Non-profit Broadband Operator Operates variety of technologies to serve non-profit community needs, including purchased and donated fiber, leased facilities, WiMax and WiFi networks Services & speeds: ultra broadband up to gigabit speeds Non-profit with some co-investment in projects by customers Target schools, medical facilities, and public institutions Focus on serving community needs and programs Demonstrated the use of shared infrastructure with WiFi and WiMax built on fiber infrastructure Hybrid public safety with public access 3.65 Ghz WiMax layer for backhaul and institutional service 4.9 Ghz WiMax public safety spectrum 2.4 Ghz WiFi public access

WiMax as a Broadband Solution Short-term Quick and economical as fixed broadband Initial deployment for fiber networks Portable provides mobile-like capabilities in advance of mobile service Longer-term Wireless/portable service alternative for fixed broadband operations Full mobile 4G service with broad coverage Solution for hard to reach locations Community focused marketing is critical

Broadband Market Visions Thank You… John H. Longo Principal & Industry Analyst Mobile: +1.973.229.6130 jlongo@broadbandmarketvisions.com www.broadbandmarketvisions.com