1. Lappeenrannan teknillinen yliopisto TITE Prof. Esa Kerttula Päivä 1: Luento 1-1-7: Maaliskuu 2007 1 © Esa Kerttula

2. : SBG Copyright © 2007 Intel Corporation. Intel Confidential WiMAX Devices Vision and Challenges ASSOCHAM Panel Discussion Wednesday, January 10, 2007 Lil Mohan Mg. Director, Emerging Markets Broadband Wireless

3. WiMAX Solutions Division Emerging Markets Copyright © 2007 Intel Corporation. Intel Confidential 3 This document is provided “as is” with no warranties whatsoever, including any warranty of merchantability, non-infringement fitness for any particular purpose, or any warranty otherwise arising out of any proposal, specification or sample Information in this document is provided in connection with Intel products. No license, express or implied, by estoppels or otherwise, to any intellectual property rights is granted by this document. Except as provided in Intel's Terms and Conditions of Sale for such products, Intel assumes no liability whatsoever, and Intel disclaims any express or implied warranty, relating to sale and/or use of Intel products including liability or warranties relating to fitness for a particular purpose, merchantability, or infringement of any patent, copyright or other intellectual property right. Intel products are not intended for use in medical, life saving, or life sustaining applications. Intel does not control or audit the design or implementation of 3rd party benchmarks or websites referenced in this document. Intel encourages all of its customers to visit the referenced websites or others where similar performance benchmarks are reported and confirm whether the referenced benchmarks are accurate and reflect performance of systems available for purchase. Intel may make changes to specifications and product descriptions at any time, without notice Designers must not rely on the absence or characteristics of any features or instructions marked “reserved” or “undefined.” Intel reserves these for future definition and shall have no responsibility whatsoever for conflicts or incompatibilities arising from future changes to them. This document contains information on products in the design phase of development. Do not finalize a design with this information. Revised information will be published when the product is available. Verify with your local sales office that you have the latest datasheet before finalizing a design. Intel, SpeedStep, Pentium, Intel Centrino and the Intel logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. * Third-party brands and names are the property of their respective owners. Legal Information

4. WiMAX Solutions Division Emerging Markets Copyright © 2007 Intel Corporation. Intel Confidential 4 Agenda WiMAX Devices: Vision Key Challenges for Devices: –Single Worldwide Standard –Price Driving Volume Economics via Integration & Standardization Summary

5. WiMAX Solutions Division Emerging Markets Copyright © 2007 Intel Corporation. Intel Confidential 5 Moore’s Law for Mobile Internet Ultra Mobile PC Entertainment & Productivity Notebook Thin and Light Notebook Sub-Notebook 17” Screen 3” Screen NEAR FUTURE… ~10X LOWER POWER ~10X MORE MOBILE Product descriptions, plans and comparisons provided are estimates only and subject to change without notice Statements are vs. current devices

6. WiMAX Solutions Division Emerging Markets Copyright © 2007 Intel Corporation. Intel Confidential 6 Large Potential WiMAX Device Market 100 Million + WiMAX Integration Across Multiple Segments 802.16e based WiMAX Devices Will Drive A New Embedded Mobile Internet Business Model

7. WiMAX Solutions Division Emerging Markets Copyright © 2007 Intel Corporation. Intel Confidential 7 802.16D802.16E Fixed & Nomadic Network Clients CPE, RG, PCMCIA Cards Mobile Network Clients PCMCIA Cards, Embedded Modules, Integrated Si Technology Challenge: Single Worldwide Standard 802.16e Mobile WiMAX network is best suited for both Fixed & Mobile Making the technology work for device form-factors is NOT the challenge Making a single technology specification work worldwide is the critical factor: Standardize on 802.16e in 2.x and 3.x GHz bands Si and device manufacturers are already building 802.16E based client devices for all these form factors

8. WiMAX Solutions Division Emerging Markets Copyright © 2007 Intel Corporation. Intel Confidential 8 The Economic Challenge: Device Cost $60 $100 $80 Monthly ARPU Est. $20$40$60 $100 $80 $120 3G Today PC Card Cost Est. 90% Attach Rate Goal <10% Attach Rate Source: Intel, Instat, Q3’06 $20 $40 $0 WiFiToday + WiMAX Tomorrow 5 year goal for the mobile Internet worldwide: $30 - $30 Can be achieved only by volume economics: –This can happen only by minimizing the number of SKUs –Needs to be on standard WiMAX frequency bands

9. WiMAX Solutions Division Emerging Markets Copyright © 2007 Intel Corporation. Intel Confidential 9 Driving Volume Economics Via Integration Fixed WiMAX Modems 2004-06 2006-08 2008+ Integrated WiFi/WiMAX Multi-mode Chipsets Intel® PRO/Wireless 5116 Broadband Interface (Rosedale) Portable WiMAX Devices Broad CE Devices Intel® Fixed/Portable WiMAX Si Intel® WiFi/WiMAX Radio (Ofer-R) Other names and brands may be claimed as the property of others Ofer-R is the World’s First Single Chip Wi-Fi/WiMAX Radio Intel® PRO/Wireless 5116 Broadband Interface first highly integrated & programmable IEEE 802.16-2004 compliant SOC Integration drives adoption, reduces cost UMPC: large incremental target market Wireless technology adoption increases dramatically when the functionality is completely integrated within the devices

10. WiMAX Solutions Division Emerging Markets Copyright © 2007 Intel Corporation. Intel Confidential 10 Modem Prices: Promising Trend Source: Intel, Point-Topic, IDC The Impact of CPE Costs on Uptake Million Subs 199619971998199920002001200220032004200520062007 0 20 40 60 80 100 $0 $200 $400 $600 $800 $1,000 CPE Cost DSL Subs ADSL CPE Price WiMAX Price Trend In the first 18 months, WiMAX CPE prices have closely followed the ADSL CPE price curve

11. WiMAX Solutions Division Emerging Markets Copyright © 2007 Intel Corporation. Intel Confidential 11 Summary Two main challenges still exist for WiMAX device mass market adoption: 1.Getting the world standardized on 802.16e WiMAX networks, operating in 2 – or preferably 1 – worldwide standard frequency band(s). 2.Bringing the client device prices to a level that will spur mass market adoption of WiMAX Intel and the rest of the equipment manufacturers have product roadmaps that will spur mass-market adoption With the right Government broadband policy, volume economics can take firm foot-hold in India in 2007.

12. WiMAX Solutions Division Emerging Markets Copyright © 2007 Intel Corporation. Intel Confidential 12 Back Up

13. WiMAX Solutions Division Emerging Markets Copyright © 2007 Intel Corporation. Intel Confidential 13 Fixed WiMAX 1 st Year Ramp Matching DSL Proxim Aperto Siemens Redline Year 1 CPE Shipments & Forecasts Alvarion Airspan WiMAX DSL Source: Intel, Dell O’ro