May 2000 Deploying the Optimal BWA Architecture PTP vs. PTMP Broadband Wireless World Forum 2001 Rami Hadar Executive Vice President Marketing & Business Development

Point to Point Star Configuration Ring Configuration

Point to Point Advantages   Proven Technology   High Capacity   Lower Up-front Investment Disadvantages   Dedicated bandwidth to a single location.   Star configuration: emulates PMP, but antenna placement becomes an issue and business case fails after 8-10 links   Ring configuration: emulates a fiber ring. Adding new nodes takes 3 building climbs   2 x #subscribers network components Optimal for high bandwidth to a single location

Point to Multipoint Configuration

Advantages   Real-time allocation of bandwidth based on user demand   Oversubscribe equipment and frequency = Lower CapEx   Central base stations aggregates & concentrates traffic from many subscribers.   Smaller hub roof space used   No need for external concentration device   Roof climbs = # subscribers + 1   # of subscribers +1 network elements Disadvantages   Higher upfront cost than PTP   Bandwidth to a single building < 45Mbps Point to Multipoint Optimal access method to small and medium sized buildings

Cost Comparisons: CapEx CapEx Required to deliver identical Services/Revenue Point to Point (based on industry averages)  Equipment  DS3 Radio:$20,000  IAD (needed for each link) :$5,000  ATM Switch (needed for each “Hub” Building) :$30,000  Install  Each link (two buildings, cover ATM as well) :$10,000 Point to Multipoint (based on industry averages)  Equipment  Base Station:$200,000  CPE:$6,750  ADM (needed for Fiber Connection) :$15,000  Install  Base Station:$20,000  CPE:$5,000 Confidential and Proprietary

CapEx Cost Curve 9 Link Cross Over Point

Semi-Urban Mid Size City Cell Coverage: 150 km 2 Rain Region: D Population: 380, buildings* with 25,000 ft 2 or more (requiring >3Mbps Access ) Average of 4 Business per Building 9% Penetration Rate of Addressable Market (Businesses) by the End of year 3  Average 2 ports per customer  5% price decline every year  10% customer churn rate 30 Buildings Serviced by end of year 3 Confidential and Proprietary * U.S. Department of Energy Year 1Year 2Year 3Total Buildings Added PTP* $585,000$175,000$380,000$1,140,000 PTMP $400,000$60,000$120,000$580,000

Large Urban Downtown Multiple Cell coverage: 500 km 2 Rain Region: N Population: 14,000, buildings averaging 50,000 ft 2 or more (requiring 4 Mbps of Bandwidth or more) Average of 20 Business per Building 6% Penetration Rate of Addressable Market (Businesses) by the End of Year 3  Average 1 ports per customer  10% price decline every year  10% customer churn rate 306 Buildings Serviced by end of year 3 Confidential and Proprietary * United Nations/Private Commercial Study Year 1Year 2Year 3Total Buildings Added PTP* $5.1M$4.5M$1.9M$11.5M PTMP $4.2M$0.2M$0.1M$4.5M

Buildings On-Net by Month 9 Link Cross Over Point

DSL, Cable Modem, MMDS 2 Mbs 10 Mbs 20 Mbs 45 Mbs 155 Mbs Point-Multipoint BWA Point-Point BWA Fiber BWA: Filling the Gap Between Copper & Fiber Bandwidth Density High Medium Low