1 October 4-7, 2004 Los Angeles, CA The State of WiMAX October 7, 2004 Alan Menezes

2 October 4-7, 2004 Los Angeles, CA Wireless Broadband – Fixed & Mobile What’s the End-user Value Proposition? – Broadband Access – Mobility / Portability – Business Users or Consumers Carrier Business Model – Business Subscribers or Consumers (ARPU) – Time to break-even & payback

3 October 4-7, 2004 Los Angeles, CA The Application defines the Network Business Class Services or Consumer Services – Capacity, Coverage & Cost Implications – Varying User Requirements and Applications – Bandwidth or Performance versus Range – Host Model or Gateway Model Fixed Broadband Access versus Portable or Mobile – First Mile Broadband or Mobile Wideband Access Scalability of available Technologies – Wireless Broadband Access – IEEE a – Wireless LANs – Wi-Fi – IEEE a/b/g – User Self-Install for Consumer Internet Access – Portable or Mobile 3G Technologies

4 October 4-7, 2004 Los Angeles, CA Current Market Drivers – Fixed Access Business Grade Services – IP-based network access with guaranteed SLA – T1/E1 and Fractional T1/E1 Replacement – High-end complement to DSL & Cable Hot Spot / Hot Zone Network Backhaul – Wireless gateway: WiFi + WiMAX-class equipment – Campus networks backhaul – UMTS & Picocell backhaul

5 October 4-7, 2004 Los Angeles, CA Fixed Access Unified Broadband Access Business SME SOHO Hot Spot & Hot Zone Backhaul Mobile Network Backhaul Base Station Access Point Subscriber Equipment Cellular Subscriber Equipment Metro Area Network

6 October 4-7, 2004 Los Angeles, CA Technology Timeline 1990’s2000‘02‘04‘06‘10 First Generation Systems ‘08 Total Cost per user class Systems Standard compliant systems e - nomadic derivatives (fixed) Proprietary solutions Typically < 4 Mbps per channel (3.5 GHz) Second Generation Systems Carrier class technologies with proprietary chips 4 to 20 Mbps per channel (3.5 GHz) WiMAX certified interoperability Mass market for chips Up to 30 Mbps per channel (3.5 GHz) WiMAX certified Limited mobility Business-grade Services Business & Consumer Services Portability

7 October 4-7, 2004 Los Angeles, CA Key Success Factors Geographic Spectrum Availability Standardization & Interoperability Several Success Factors are different for Fixed versus Portable/Mobile Cost Effectiveness – Commodity CPE for fixed – Laptop Integration for portable VoIP becoming a key driver

8 October 4-7, 2004 Los Angeles, CA Access to Spectrum – Why It Matters Propagation Characteristics & NLOS Performance depend on Spectrum – 2.4/2.5 GHz versus 5.8 GHz – Licensed versus Unlicensed Every Solution is a Trade-off – Indoor Self-Install is not free – Multiple wall penetration means reduced range – Range /Cell Size affect Infrastructure Costs

9 October 4-7, 2004 Los Angeles, CA Coverage and Capacity Variations in Multiservice Wireless Access Coverage Radius (km) N-LoS, O-LoS, LoS Range O-LoS; LoS Range, N-LoS Point-to-multipoint LoS-Only Range, Point-to-point RooftopUnder Eave Indoor Portable Roaming/UMTS Wireless Access Roaming/UMTS Wireless Access Cells Required for Coverage WLAN and HotSpot Wireless (Wi-Fi / x) WLAN and HotSpot Wireless (Wi-Fi / x) PicocellMicrocell Macrocell (indoor to 300 ft.) (campus to 5 km) (3 km to 50 km) PicocellMicrocell Macrocell (indoor to 300 ft.) (campus to 5 km) (3 km to 50 km) Metropolitan Area - Fixed Broadband Wireless Access (IEEE802.16a / WiMAX) Metropolitan Area - Fixed Broadband Wireless Access (IEEE802.16a / WiMAX)

10 October 4-7, 2004 Los Angeles, CA Myth: WiMAX could kill WLAN hotspots WiFi Hotspots, Hotzones & mesh networks are driving “WiMAX-class” deployments A significant issue in Hotspot and Hotzone deployment is backhaul WiFi will continue to play an important role even with WiMAX on laptops – “Best Connected Philosophy”

11 October 4-7, 2004 Los Angeles, CA Benefits of WiMAX Standardization provides service providers with the risk mitigation and cost roadmaps It is the only solution to cost effectively bypass the incumbent without digging up the streets Cost effectively extends the reach of fiber Economics work today for business services with consumer services to follow Wireless offers a key differentiation to wired – Portability & Roaming