2. U.S. Wireless Broadband: LMDS, MMDS and Unlicensed Spectrum February 17, 2000 Presented By: Peter Jarich & James Mendelson

3. The Strategis Group Broadband Information Services Telecom Information Services Since 1964 Global Presence Publications in All Fields –Wireless Broadband –Internet User Trends –Branding & Bundling –Competitive Telephony & Convergence –Consumer, Financial, Technology Focus Online News Services

4. WHAT? What Is Fixed Wireless? Why Is It Important?

5. The Wireless Local Loop? Fixed, not mobile. Not simply voice. All you need is spectrum!

6. The Spectrum? Three emerging technologies. Individual characteristics. Individual costs.

7. The Importance? New Technologies Living Examples Major Carriers Real Drivers

8. WHY? What is the Fixed Wireless Business Model?

9. Fixed Wireless Cost Structure 80% Labor Cost vs. 80% Equip. Costs “Backhoes Don’t Obey Moore’s Law.” - Tren Griffin VP Strategy, NEXTLINK

10. Fixed Wireless “Control Structure” Facilities Competition is the only option! Profit Control Service Control The Reality of the 14 Points Resale Unbundle Local Loop Unbundle T-1 On-Network Profit Margins Service Control

11. Wireless = Bundling (Practice) Wireless Exceeds Expectations! 35%35+% 25% Bundling Take Rates

12. 60 - 70 mi MMDS Cell Site Migration Macro to Micro- cellular deployments. More spectrum per end-user. More bandwidth per end-user. Cell Site Migration 5-10 mi

13. WHO? Who has Launched Broadband Wireless Services and Where is it Available?

14. Local Multipoint Distribution Service Hype Becoming Reality Urban & Rural Major & Minor Players NEXTLINK HighSpeed.Com

15. MMDS - Wireless Cable Following the Cable Model One-Way & Two Way Urban & Rural

16. MMDS - Wireless Cable Sprint & MCI WorldCom Battle AT&T with Nationwide Coverage ~200 Markets Rural & Urban Operational Non-Operating

17. Unlicensed Spectrum Broadband The Early Winner? 200+ Markets Rural Deployment Multipoint

18. HOW MUCH? What Revenues will Wireless Broadband Earn?

19. Forecast Assumptions Internet as Key Driver –current emphasis –local phone service is ubiquitous –new technologies and mission-critical voice Scope of Total Internet Market –2003 Business Penetration = 74.1% to 91.8% –2003 Residential Penetration = 83.6% –2003 Access & Transport Revenues = $34.1 Billion Target Markets 2000 - 2001 Launch Dates

20. Network Coverage - Business

21. Network Coverage (Households)

22. Broadband Wireless Subscribers Business Subscribers

23. Broadband Wireless Subscribers Residential Subscribers

24. Service Revenues By Technology Millions, $ 2003 Total: $3.4 Billion

25. Broadband Wireless Market Share By Service

26. WHAT DOES IT ALL MEAN? What Conclusions Can We Draw?

27. U.S. Wireless Broadband Perspectives Wireless Broadband Is Here Today Wireless Is Not Just Voice Wireless Meets End-user Demand For Bundles Wireless Meets Operator Demand For Revenue And Service Control Revenues Are Growing Quickly And Will Be Substantial!

28. U.S. Wireless Broadband: LMDS, MMDS and Unlicensed Spectrum To Purchase:Tim Riordan (202) 530-7591 triordan@strategisgroup.com Further Questions:Jamie Mendelson (202) 530-7589 jmendelson@strategisgroup.com Price: $2,400 (pdf/html) $2,900 (print)