The Road to WiMAX

1. The Road to WiMAX

2. 1 Introduction to WiMAX

3. Worldwide Broadband Market Growth • Broadband Growth rate exceeding Mobile Growth

4. BWA Follows DSL Trend (000’s) Global Subscribers Source: Yankee Group

5. Market Indicators • Worldwide Broadband (BB) subscribers will grow from 60M in 2002 to 270M in 2008(ABI) • Intel’s CentrinoTM Mobile Technology ramp exceeds Expectations • Extensive Worldwide Hotspot growth to 350,000 locations by 2008 (ABI) • Huge Chipset vendors (Intel & Fujitsu) are developing WiMAX based chips • WiMAX chipset will be integrated into Laptops starting from 2006

6. BWA Market is Changing… Standardized TechnologyIEEE 802.16 2nd Generation Technologyeconomical, high quality wire line alternative AccelerationStage The Huge Demandto serve ‘White Zones’& ‘DSL Refugees’ Regulation EvolutionIncreased allocation of Licensed and Unlicensedbands

7. Evolution of Broadband Wireless From Wireless LAN to Access, from Proprietary to StandardSolutions

8. WiMAX Market Vision: Broadband Everywhere 2 3 1 5 FRACTIONAL T1 for SMALL BUSINESS RESIDENTIAL & SoHo DSL LEVEL SERVICE BACKHAUL for HOTSPOTS Mobile Backhaul H 802.16a/d 802.16a/d T1+ LEVEL SERVICE ENTERPRISE H H H H WMAN Nomadic Coverage --> handoff from HOT SPOTS H 4 H H H 802.16e INTERNET BACKBONE = wide area coverage outside of Hot Spots BWA Operator Network Backbone Mobility

9. Operators Indicators • British Telecom considers nationwide WDSL deployment • France Telecom is deploying Wireless DSL in rural France • Altitude Telecom (CLEC) announces country wide deployment of WiMAX ready platform in France • Irish Broadband start to deploy WiMAX in Ireland • Mobile Operators enter into field trials on BB wireless access • Korea announces plans for a “full coverage” BB mobility

10. WiMAX Network Models & Time Frames Access 2005 Portable 2006 Mobile 2007/8+ Metrozone Fixed Outdoor Fixed Indoor Enterprise Campus Piconet Backhaul Wi-Fi Hotspot Mobile

11. The Opportunity presented by WiMAX • WiMAX has the opportunity to become one of the main stream mobile solution • Different frequencies • Wider channel size • WiMAX enables the new personal, true broadband, real-time applications • Video streaming • On-line, multi-user gaming • WiMAX all-IP infrastructure for FMC services • Reuse wireline broadband innovation & content

12. WiMAX Benefits • Component makers • Creates a volume opportunity for silicon suppliers • Equipment makers • No longer need to develop every piece of the end-to-end solution • Can innovate more rapidly • Operators • Standards-based equipment means more cost-effective CPEs • Multiple equipment suppliers and lower costs = lower investment risk • Quickly provision E1+ level and “on demand” high-margin broadband • Scalable; remote management; supports differentiated service levels • Consumers • More choices for getting broadband access • Support for voice, data, video

13. WiMAX - 4 Years and Growing 46 Services Components And Systems Networks 332 Estimated Engineers Working on WiMAX WiMAX Forum Members Ecosystem/Applications Less than500 Engineers Approaching 7,500 Engineers Service Providers System Vendors Components And Systems Silicon/Component Suppliers Spring 2004 Today Spring 2004 Today Source: WiMAX Forum (based on Intel estimates)

14. WiMAX Organization

15. WiMAX Mission Statement The purpose of WiMAX is to promote deployment of broadband wireless access networks by using a global standard and certifying interoperability of products and technologies • Writing test specs • Qualifying test labs • Certifying products • Focus on interoperability WiMAX is the next revolutionary technology after WiFi!

16. WiMAX Benefits • Component makers • Creates a volume opportunity for silicon suppliers • Equipment makers • No longer need to develop every piece of the end-to-end solution • Can innovate more rapidly • Operators • Multiple equipment suppliers and lower costs = lower investment risk • Generate revenue by filling broadband access gaps • Quickly provision E1+ level and “on demand” high margin broadband services • Consumers • More choices for getting broadband access

17. FWA & Mobility over WiMAX

18. Geography • Where will fixed and mobile systems deploy ? • FWA: • Developed countries: Rural & suburban • Developing countries: Urban & suburban • Mobile: Urban & suburban FWA and Mobile will co-exist In Urban (majority) and possibly Sub-urban areas

19. Frequencies • What frequencies will FWA & Mobile use? • Typically different frequencies (similar to cellular evolution) • Current allocated frequencies (3.5GHz etc.) are granted for FWA only • Governments would typically charge additional licensing for mobile (especially after charging all existing mobile applications) • ETSI is working with regulators in order to grant a new frequency for mobile, especially due to the fact that the existing 3.5GHz frequency is already occupied in most places. • May reuse the already existing licensed band (depending on local allocation and usage) FWA and Mobile will most likely operate in different frequencies

20. Deployment Scenarios • What are the deployment scenarios of FWA & Mobile ? • FWA deployments consists of smaller no. of medium sized cells (5-6km), which are maximal coverage driven • Mobile deployment consists of large no. of small cells (1-3km) which are capacity and continuous coverage driven • Mobile/portable devices typically have lower output power, which limits the possible cell range FWA and Mobile will use different deployment scenarios

21. And What About 3G ? Mobility “cake” • 3G has at least 2 years head start over the WiMAX mobility • Many mobile operators are already heavily invested in 3G (licenses & equipment wise) • What will happen when Mobile WiMAX is introduced ? CAPACITY WiMAX 3G GPRS Voice

22. Summary • While Moving from FWA to Mobile … • FWA and Mobile will operate • Using different frequencies • Using different coverage scenarios • Using different capacity planning scenarios • Using different protocols (at least at the beginning) • However will reuse • The FWA as backhauling for mobile cells • The same Backhauling and NMS