11/17/04 1

George WuDirector of Marketing

Technology Solutions / ASSP

Fujitsu Microelectronics America, Inc.

WiMAX DeploymentFujitsu Perspective

211/17/04

WiMAX – a Trillion Dollar Holy Grail!

• Finally, a wireless technology that holds the potential of fulfilling so many promises

• Tremendous curb appeal – a powerful price/performance duo• Narrow the digital divide between developed and developing

nations• Zip information straight to the doorsteps of rural

communities• Give cable, DSL and T1/E1 a run for their money in some

areas• When Wal-Mart enters the BWA game, we’d better pay

attention

311/17/04

Market Perception

“WiMAX: The (Next) Great Wireless Hope”“WiMAX in Focus”

“Hot Spots Won’t Be Limited For Long”

“WiMAX Promises Breakthrough in Broadband Access”

“Waiting for WiMAX”

“WiMAX Worth Watching”“The Next Big Thing For Wireless?”

“10 Technologies to Watch in 2004”“Most Promising Technology of the Year”

411/17/04

What is WiMAX?• A non line-of-light broadband wireless standard capable of

transmitting massive information over long distances• Offers new and exciting opportunities to established and newly

emerging companies• Can go places where no wired infrastructure can reach• Backhauling Wi-Fi hotspots & cellular networks

802.16a/REVd 802.16e

Completed 802.16a: Jan 2003802.16REVd: Q3’04

Estimated Q3’05

< 11 GHz

Non line of sight

Up to 75 Mbps at 20MHz

OFDMAOFDM

Pedestrian mobility High-speed mobility

Same as 802.16d with sub-channelization

Spectrum < 11 GHz

Channel Conditions

Non line of sight

Mobility Fixed

Bit Rate Up to 75 Mbps at 20MHz

Modulation OFDM 256 sub-carriersQPSK, 16QAM, 64QAM

Channel Bandwidths

Selectable channel bandwidths between 1.25 and 20 MHz

511/17/04

Radio Frequency Spectrum

US WCS2305-23202345-2360

Low/MidUNII-band(802.11a)5150-5350

UpperUNII-band~5725-5850

ISM (11b/g)2400-2480

MMDS~2500-26902700-2900

3300-3400

3.5GHz band3400-3600

WRC (new)5470-5725

WiMAX profiles available

Future WiMAX profiles

WiFi

Note: also keep an eye out for 4.3GHz (emergency band), 4.9GHz (public safety band)

611/17/04

The WiMAX BenefitsPre-Standard:• Proprietary, vertical solutions• No volume-silicon market

Service Providers

System Design & Architecture

Custom MAC

Custom Radio

Custom, 802.11 or DOCSIS PHY

Network Software

System Integration

Post-Standard:• Equipment interoperability• Economies of scale• Superior price/performance

Service Providers

Equipment Manufacturers

Volume Integrated MAC/PHY Silicon

SolutionsVolume Radio

Suppliers

Network Mgmt Software Suppliers

System Integrators

• Large revenueopportunities

• Large revenueopportunities

Equi

pmen

t Mfr

s Fo

cus

711/17/04

WiMAX’s Key Success Factors: Some Salient Examples• Plenty of available spectrums – both license-exempt and

licensed• Full service offerings from the carriers and service providers

to sustain steady revenue growth• Scalable and affordable standard-based semiconductor

solutions• Cost-effective base station and subscriber station equipment

offering carrier-class feature sets• On-time Plugfest activities through the WiMAX Forum’s

designated test lab(s)• Strong backing from the government of each nation that

deeply acknowledges the technology and its economic impact

811/17/04

BWA Market Structure

911/17/04

WiMAX Market Structure

And more and more companies are entering the WiMAX zone!

1011/17/04

WiMAX – a Borderless WorldA fantasy comes truefor fixed and mobile wireless usersworldwide

1111/17/04

Who are the Customers?

Baby Bells

PublicSafety

Agencies

CellularOperators

IDM(Fujitsu)

BWA Equipment

Makers

FablessSemi

WISP

Enterprise&

AcademicCampuses

WirelessConsumer

GadgetMakers

Mass Consumer Market

Laptop,Cell Phone,

PDAOthers

Mobile Wireless(802.16e)ODM

Fixed Wireless(802.16REVd)

1211/17/04

The WiMAX Deployment Phase

Fixed Wireless(Outdoor*)

Fixed WiMAX(Indoor**) Mobile WiMAX

2005 –> 2007 (earliest) Likely to occur after 2008

*Where forced air cooling is not possible inside the CPE.**Where natural air cooling is not possible inside the CPE.

1311/17/04

Deployment Outlook (1)• WiMAX deployment will happen globally as each country’s

need arises• There will be activities in Asia (e.g. China), Europe (e.g., U.K., France) and

North America• Other geographical areas like Latin America, the Middle East and Africa may

jump into the WiMAX fray once full interoperability and compliance can be realized

• 2005 – System-level plugfest(s) and very small-scale product ramp (Note: 802.16REVd-based solutions will reign in this period)

• 2006 – Small to moderate production ramp (Note: 802.16REVd-based solutions will continue to reign in this period; 802.16e-based SoC design start activities will be rampant)

• 2007 & 2008 – Moderate to large production ramp for 802.16REVd-based solutions (Note: both 802.16 REVd- and 802.16e-based solutions will co-exist)

• Beyond 2008 – 802.16e-based solutions may dominate the mobile wireless market

1411/17/04

Deployment Outlook (2)

• The initial fixed wireless (802.16REVd) deployment involves non-cellular data-networking applications only• Spearheaded by companies with (proprietary OFDM) system

shipments• Small-town or city trials and rural-area launches by WISPs or

Baby Bells• Rollout scheme

• Deploying WiMAX Certified base stations first followed by introducing attractive sign-up packages (i.e. reduced CPE price in exchange for long-term service contracts) to increase CPE sales

• First-generation CPEs will be outdoor types followed by indoor CPEs in subsequent generations

1511/17/04

Deployment Outlook (3)• With an increasing number of WiMAX Certified CPEs in the

market, BWA system companies will gradually OEM their CPEs or narrow their product focus to base stations only to avoid price erosion in access equipment

• Thanks to the availability of license-exempt frequency bands, a handful of CPE start-ups will run trials with new and existing WISPs in remote areas and less populated towns

• There will be several LSI providers for 802.16REVd.• However, the competitive landscape for 802.16e will witness

more fabless semi companies and IDMs competing with feature-rich SoC solutions for the mobile wireless market

1611/17/04

The WiMAX Ecosystem

Line-of-Sight Backhaul802.16d

802.16

INTERNETBACKBONE

Telco Core Network or

Private (Fiber) Network

Non Line-of-SightPoint to Multi-Point

Base Station

1711/17/04

An Observer’s Perspective: Some Provocative Thoughts

• An exciting time for those who cherish the WiMAX potential• Fixed wireless deployment based on the 802.16REVd standard will

see moderate growth over the next few years• Wired and wireless technologies will co-exist together in many

places• Wi-Fi lacks the technological attributes (e.g. distance) to compete

with WiMAX in the near future (or can it?)• The battle between 3G, 3.5G and 802.16e will take the center stage

after 2008 (or will it?)• Another opportunity of a lifetime for start-ups to shine• M&A activities will kick into full gear once interoperability has been

tested and proven• Traditional WLAN box makers like Linksys and Netgear may jump

into the act once the market for fixed wireless access has been validated

1811/17/04

Why Fujitsu for WiMAX?

• One of the two major integrated baseband LSI suppliers

• Fujitsu provides a complete RF+BB WiMAX Certified solution

• Flexible and scalable SoC architecture

• SoC solution capable of supporting base stations and subscriber stations

• Low external component count

• Market-enabling schedule

• Competitive pricing

• Full product roadmap commitment

Fujitsu Microelectronics America, Inc.