1. 1 Overview of WiMax Technology and the impact it will have on private-public partnerships with higher education Presentation to: EduCause 2006, Tempe, Arizona By: P. Kelley Dunne, CEO, DigitalBridge Communications WiMax – Unwiring the last mile

2. 2 WiMAX will combine carrier-grade quality and extended range with the flexibility and ease of Wi-Fi What makes WiMAX different? Industry standards Commoditization of chipsets Use of licensed frequencies VoIP and other top-line applications Elimination of operational expense of installation

3. 3 The WiMAX rollout is being driven by an industry consortium led by Intel ’05 ’06 Infrastructure / Outdoor CPE Deployments ’08 Handset Integration ’07 Indoor CPE Deployments Notebook Integration WiMAX PC Card & Integrated Centrino solutions Intel Integrated WiMAX solutions for the handset Intel WiMAX 802.16-2004 Silicon

4. 4 New wireless broadband technologies work together to complement other’s strengths Wi-Fi 802.11b/g/a, typically confined within office buildings, restaurants, stores, homes, etc. WiMAX Wireless Metro Area Networks (WMANs), cover a much greater distance than WLANs, connecting buildings to one another over a broad area (1-3 miles) WiFi-Mesh 802.11mesh architecture, in which the access points seek out and link themselves to other access points to build the mesh, can scale out to 30 Square miles. 3G Wireless Wide Area Networks (WWANs), the broadest range wireless networks (1-5 miles) with full mobility. Most widely deployed today in the cellular voice infrastructure but also can transmit data. Includes EVDO, UMTS-HSDPA. Wi-Fi WiMAX 3G EVDO Campus Unbounded Local (room, building, neighborhood) MODE Stationary Total Mobility Source: Intel, Fixed Wireless (~ 150 mph) WiFI - Mesh

5. 5 A couple key facts that are important to the WiMax story that will unfold in the next 18 months … First frequencies for 2006 will be 2.3Ghz (WCS) and 2.5Ghz (EBS/BRS) External mounted CPE available 1Q06, Indoor self provisioned CPE available 3Q06 (estimated) RF footprint for self-install CPE will average 1-2miles radius from base station (used in DBC conservative planning tools) Service speeds will be driven by transport costs and spectrum/channels available – target will be current market DSL speeds: 3Mbs/1.5Mbs (d/u) VoIP and other edge applications will be required to support financial requirements of business models.

6. 6 Pre-WiMAX deployment are “Wireless to the Rooftop” and require a truck roll for every customer 2005 $650 - Average customer acquisition 2005 RUBI Trial -“WTR” model with unlicensed spectrum -Pre-WiMAX CPE and base stations -High CAPEX and OPEX costs -Key lessons learned

7. 7 In 2006, a new “ecosystem of opportunities” will be created with the availability of WiMAX CPE 2006 $200 customer acquisition cost (indoor CPE) Key Differentiators : 2-3 mile NLOS 80% self install Standardized CPE VoIP capable

8. 8 2008 $0 CPE cost – “WiMAX Inside” Future Potential: 20-30M laptops shipped with WiMAX Nomadic roaming capable Portable broadband “pocket modem” Service convergence In 2008, WiMAX is embedded in laptops, desktops and handhelds – creating an “Centrino™-like” adoption curve

9. 9 Subscriber Economics have to work:: WiMAX will have a significant impact on the per-subscriber modeling

10. 10 WANMANLANPAN 3GWCDMAGPRSEDGE WiMAX802.16Broadband Wi-Fi802.11 UWBandBluetooth The Result: Always Best Connected RFID/TAG * * *Other brands and names are the property of their respective owners. Multiple technologies serving various customer segments

11. 11 Smart Phones Feature Phones Voice Phones Sources: IDC, Web- Feet Research 0%100%50% ‘03 ‘05 ‘06‘07 ‘08 ‘04 ‘09 ‘02 Data-Centric Phone Shipments Overtake Voice-Centric Phones in ‘05 Data-Centric Phone Shipments Overtake Voice-Centric Phones in ‘05 Voice Revenues Growing at a 4.7% CAGR Data Revenues Growing at a 30.7% CAGR The “tipping point” of the market is indicated by consumer demand for more data centric cell phones

12. 12 1980s1990s2000 Volume Ethernet 2010 Standardization and Client Integration Path to Volume Economics – “Centrino-like” adoption curve Target price for scaleable business models: Cost of DSL or cable modem CPE.

13. 13 Colleges and universities have a unique position in the market as WiMAX is deployed over the next 3 years Spectrum Research Product development Network deployment for education and internal uses Serving underserved areas

14. 14 Ball State Case Study: Digital Middletown Project