1. Local Area Networks Content WiFi Roaming in the Middle East Special Topic: WiFi Roaming in the Middle East

2. WiFi and Roaming: basic concepts. WiFi Market Overview in the Middle-East. WiFi Roaming: an opportunity and a need. How to roam? Turnkey WiFi Roaming Solutions. Agenda

3. Wireless Fidelity A technology to provide Wireless LAN service Allows access to private networks and to the public Internet Radio technology (2,4 - 5 GHz), based on IEEE 802.11 specs High bandwidth (several MBit/sec) but low coverage (<300m) What is WiFi?

4. Public Hotspot: A location equipped with a WiFi network for access to the public Internet.  Can either be free, or for a fee.  Can be pre-paid or post-paid access fee. Private Hotspot: A location equipped with a WiFi network for access to a private network.  Home Hotspots.  Company Hotspots. What is Hotspot? Hotspo t

5. Provider A’s Hotspot in France Gas station Provider B’s Hotspot in the Lebanon Coffee Shop Hotel Provider C’s Hotspot in Asia The traveling end user wants to access the Internet through domestic and internationally based hotspots. But he has only an account with the blue provider B. Roaming would allow this end user to access the Internet through his home account while using Hotspots not belonging to his home provider. What is WiFi Roaming?

6.  Operate Hotspots  Don’t “own” end-customers  Don’t bill end users n Examples:  Kubiwireless in Spain  The Cloud in the UK  Don’t operate Hotspots  Have a large customer base  Bill the end users n Examples - Providers are typically:  ISP’s like T-Online, Wanadoo, etc  Mobile Operators like Optimus, etc. n T-Mobile in Germany and the US, SFR in France, OTENet in Greece, Telefonica in Spain, etc. Who are the Players of the Hotspot Market? WISPs Providers Both: WISPs + Providers

7. WiFi and Roaming: Basic Concepts. WiFi Market Overview in the Middle-East. WiFi Roaming: An Opportunity and A Need. How to Roam? Turnkey WiFi Roaming Solutions. Agenda

8. * Source: Gartner Dataquest 2003 WiFi is experiencing significant growth, driven by cost and convenience factors. Market Trends

9. Number of Hotspots in Middle East Growth in Public WLAN in the Middle East, 2003-2008

10. Drivers for WiFi rapidly growing deployment:  Rapidly improving components (smaller, faster, cheaper)  All new laptops are WiFi enabled (Centrino processors)  Relatively low risk and low cost of deployment  Source of differentiation b y offering an innovative VA service  Mobility of workforce  In the Middle-East most WISP’s, Carriers, Mobile Operators and ISP’s are implementing WiFi strategies. Market Trends

11. WiFi and Roaming: Basic Concepts. WiFi Market Overview in the Middle-East. WiFi Roaming: An Opportunity and A Need. How to Roam? Turnkey WiFi Roaming Solutions. Agenda

12. You are a WISP hotspot At the hotel At the airport hotspot You are a WISP, operating one or several hotspots. Roaming partner A Roaming partner B Roaming partner C First Opportunity: Revenues through ‘In- Roaming’ How to Improve your Revenue? Allow Customers of various providers to use your Hotspots through WiFi Roaming agreements

13. You are a Provider WISP hotspot WISP hotspot WISP hotspot Second Opportunity: Revenues through ‘Out-Roaming’ You are a Provider, typically an ISP or Mobile Operator. How to Improve your Revenue and ARPU? Allow your Customers to use Hotspots of various WISPs through WiFi Roaming agreements

14. WiFi Roaming: A Need  Hotspot operators (WISP’s) need customers to use their Hotspots!  ISP’s and Mobile Operators need Hotspots for their customers!  No one has WiFi a worldwide coverage  There is a need for international WiFi Roaming  This is similar to the GSM Roaming concept.  Most countries are not monopolistic for WiFi  There is also a need for in-country WiFi Roaming  This is different from GSM Roaming concept.

15. WiFi and Roaming: Basic Concepts. WiFi Market Overview in the Middle-East. WiFi Roaming: An Opportunity and A Need. How to Roam? Turnkey WiFi Roaming Solutions. Agenda

16. 100 players means nearly 5000 connections ! WISP Mobile ISP How to Roam: First Possibility Negotiate Multiple Bilateral Agreements for Roaming

17. Clearing-House solution WISP Mobile ISP How to Roam: Second Possibility Use a Single Clearing-House for Multiple Roaming Possibilities

18. How to Roam: What Strategy?  Clearing-House Solutions for WiFi Roaming are used to reach many players (WISPs and/or Providers) through one agreement.  Easy and cheap! Only one agreement is necessary, and the solutions on the market provide billing, clearing, etc.  Bilateral WiFi agreements for WiFi roaming are in general used for strategic partnerships.  For example large European Mobile operators are signing bilateral agreements for WiFi Roaming.

19. WiFi and Roaming: Basic Concepts. WiFi Market Overview in the Middle-East. WiFi Roaming: An Opportunity and A Need. How to Roam? Turnkey WiFi Roaming Solutions. Agenda

20. WiFi Roaming Solutions on the Market  Airpath  Boingo  GRIC  iPass  Picopoint  WeRoam …and many others…

21. T-Online T-MobileT-Com Deutsche Telekom T-Systems Fixed Network Access Internet Service Provider Mobile Communications IT & TC solutions (ITC ) The divisions of Deutsche Telekom Four-division Strategy

22. T-Systems’ WiFi Roaming Solution Benefits Potentially millions of additional end customers, but through only one connection, one contract, one bill. Great value added service to differentiate form competition. No initial investment in most cases, no monthly fee. Strong R & D resources: customized solutions available Additional revenues. And the guarantee of a stable and a long lasting partner. Benefits for WISPs, ISPs and Mobile Operators Benefits for End-Users: Easy, fast and highly secure access worldwide. Usage of home provider Login and Password. Post-paid invoicing by the home provider.

23. T-Systems‘ WiFi Roaming Solution Footprint We Target by end 2004: WISP: over 10 000 Hotspots. ISP’s and Mobile Operators: over 100 million users. Current Partners of T-Systems’ Roaming Platform: Providers: T-Mobile, T-Online, Eplus, DNA, etc. WISP: T-Mobile, Berlinet, Viewquest, Airnix, Frankfurt Airport, etc. …and we are in contact with most of the players in the Middle East. We also focus on strategic presence: Events: Eurocup in Portugal, Olympics in Athens, etc. Locations: Airports, Hotels, Congress centers, etc. …and we are CBB’s first partner  you can surf while flying!!

24. WiFi Roaming Back-up slides

25. T-systems  Buys from WISPs access to their hotspots  Sells to ISPs and Mobile Operators, access to WISP hotspots Buying and Selling of Online Minutes. WLAN Roaming Platform Selling of WLAN Minutes Buying of WLAN Minutes Provid er WIS P hotspo t

26. Authentication: Information Flow. WISP Provider 2 Hotspot Access Cube Access Points User Laptop 1 3 WLAN Roaming Platform 1 2 3 Legend WLAN Authentication WLAN Authorization Internet Internet Traffic

27. Billing: Financial flows. Money flow WLAN Roaming- Platform Provider e.g. GSM carrier e.g. ISPs Legal relationship WISP Clearing-House pays WISP their share €/$ End-user pays his provider/carrier €/$

28. Appendix: Wireless LANs n Wireless LAN networks, including 802.11 or Wi-Fi, are growing quickly for home and office applications n Unregulated frequency bands - Quality of Service not guaranteed, but speed, low cost, and ease of implementation are compelling n Very suitable for local data transmission and access outside operator networks - e.g. company internal solutions or home installations n Being endowed with roaming capabilities and voice enabled devices to compete directly with carrier-owned networks

29. Wi-Fi n Wireless Fidelity (Wi-Fi) n IEEE 802.11b n 50m range approximately n Data rates vary – 11 - 56 Mb/s in theory n Higher with some proprietary extensions – 7 Mb/s is more realistic n Walls can reduces range and throughput n Number of users can reduce data rates

30. n WLANs are specified by IEEE 802.11 standards: n 802.11a: 5.8 GHz OFDM technology supporting typical ranges of 100m and 54 Mbps data rates. n 802.11b: 2.4 GHz DSSS technology supporting typical ranges of 100m and 11 Mbps data rates. n 802.11g: 2.4 GHz OFDM & DSSS technology supporting typical ranges of 100m and 54 Mbps data rates. n 802.11i: MAC layer security using AES, 802.1x, and SHA…Expected draft for 2004 n 802.11e: QoS features in the air interface…Expected draft for 2004 n 802.11f: Inter Access Point Protocol (IAPP) for seamless interoperable roaming…Expected draft for 2005 RF & MAC Layer MAC Layer Features All 802.11 standards can be used for Point-to-Point or Point-to- Multi-Point configurations WLAN Overview

31. Wi-Fi Problems n Security – Wi-Fi was not designed with robust security in mind n Interference – operates in unlicensed 2.4 GHz spectrum – competes with other products e.g microwave ovens! n Scarcity of “hotspots”

32. Bluetooth n 1998 n Goal: eliminate the need for cables n Short range - 10m n data rate - 1 Mb/s n Example of an ad-hoc network – network formed on an “as-needed” basis

33. Bluetooth Topology n Piconet – Two or more Bluetooth devices – One master n regulates traffic between devices – Remainder termed slaves n Scatternet – Two or more piconets n Note that a device can be a member of more than one piconet at a given time.