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Copyright 2004 WiMAX Forum

WiMAX Forum and "WiMAX Forum CERTIFIED are registeredtrademarks of the WiMAX Forum.* All trademarks are the properties of their respective owners.

WiMAX forum update and Asia

Market developmentFerrie Hu Tiejun

Asia Pacific Director WiMAX Forum

Chief Scientist, China Motion Telecom

17 Feb. 2005

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Copyright 2004 WiMAX ForumWiMAX Forum and "WiMAX Forum CERTIFIED are registeredtrademarks of the WiMAX Forum.* All trademarks are the properties of their respective owners.

WiMAX Forum Overview

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WiMAX Forum Vision

Create a global mass market for deploymentof broadband wireless networks that will

enable portable and mobile users to maintainhigh-speed connectivity wherever they go.

To lead the access anywhere revolution

supporting delivery of data, voice and videoapplications at home, in the office and onthe go.

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WiMAX Forum

A non-profit organization comprised of broadband wirelessaccess system manufacturers, component (silicon, RF,antenna) suppliers, software developers and serviceproviders

Promote WiMAX brand identity & WiMAX Forum Certified*equipment to drive interoperability

Based upon IEEE 802.16* and ETSI HiperMAN*standards The WiMAX Forum was founded in April 01

Founded in conjunction with the original IEEE 802.16standard for 10-66 GHz applications

In April 02, the Forum started efforts to cover the IEEE802.16a standard for < 11 GHz

As the 802.16x standard evolves, the WiMAX Forum willevolve with it

Over 230 members and growing rapidly

http://www.wimaxforum.org

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Membership Types

Regular Members (Non vendors)

Can participate in all Working Groups

May have limited access

Cannot vote Build WiMAX ecosystem (RF components, test

services, software) Principal Members

Vendors or Service Providers optional

Voting members

* Trademarks and brands property of their respective owners

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WiMAX Forum Membership

Membership RecapDecember 29, 2004

8 Board76 Principal (includes 10 in processing)

155 Regular (includes 29 in processing)

239 Members Total (includes in process)

77 SP (16 processing)64 SM (8 processing)51 SC / CO (5 processing)47 Eco-system Members (10 processing)

Every major SI has

appliedto join:

Samsung, Huawei,

ZTE, Motorola,

Lucent, Alcatel,

Siemens, Nortel,Nokia, and now

Ericsson

Membership Goals:

The WiMAX Forum becomes theleading organization for all

broadbandwireless companies to join.

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System Manufacturers (64)

Adaptix

Airespace, Inc.AirnetAirspan NetworksAlcatelAlvarionAperto NetworksArrayComm*

Axxcelera BroadbandAztech*BeceemCableTV TechnologyCambridge BroadbandCeragonChantry

Chung-Shan instituteCiscoColubrisEricssonFiretide*Gemtek Systems*Goodwin-Europe*

Huawei Technologies

Intracom

Invento NetworksIxiaKyoceraL3 PrimeWaveLG ElectronicsLucentMarconi

Microelectonics Tech.*MotorolaNetopia*NortelNaviniNex-GNextNet Wireless

NokiaOrthogon SystemsP-ComPosdataPronto NetworksProximRadionet

Radwin

Redline Comm.Samsung - do notpublicly announceSanyo Electronics*Shenzhen PowercomSIAE MicroelettronicaSiemens Mobile

SR TelecomStratex NetworksSymbolTelsimaTerabeam WirelessTroposVCom Inc.

VivatoVyyoWaveRiderWiLanZTE Corporation

*new applicant processing (8)

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Service Providers (77)airBandAirNetwork Solutions*

AirpathAirzedAloha PartnersAOL*AltitudeARL Home Comm*AT&TAxtel

Blue Square Tech.*British TelecomBroadband XPress*Cavalier GroupCellcomChina MotionClearwireComba

CovadDeutsche TelekomDigiwebDishnetDSLDistributeleAccess Ltd.EircomEnertel*

EuskaltelFinnet

FirstAve. NetworksFONFrance TelecomFusionIberbandaIDT TelecomInfoQuest*Iqara

Irish BroadbandJSC Start Telecom*Liberia PLC*LightCoreM-WebMetroBridge Networks*MPowerNextel*

NextWaveNextwebNozemaNTTC-NISIC Telecom*ParksPCCWPegesus Comm.*Pipex

Portugal TelecomPowerNet Global

QwestRelianceSBCSC Lithuanian Radio & TV CenterSES AmericomSify LimitedSingTelSkyTel*

SpeakeasySprintSt. Arnaud HoldingsStoneBridgeTATATDC Solutions*TDFTelebria

TelenorTime WarnerTowerstreamTrillionUnitlineUnwiredAustraliaVeriSign*


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Component and Semi-conductorManufacturers (51)

InfiNet Wireless LtdSiWorksSkyworks SolutionsSterlite OpticalIntegrated Devices

Intel CorporationIskra TransmissionK & L MicrowaveMitsubishi ElectricPicoChipReigncomRF Integration

RF MagicRohde & SchwartzRuncomSEQUANSSierra Monolithics

SiGe SemiconductorSumitomo Electric USATDK CorporationTelASIC Comm.Telesis

TeleSymTelrad*Theta MicroelectronicsTrackwiseTratec HoldingTRDATriQuint

Urmet*VectronWavesat Inc.Wireless ValleyXilinxZ-Com

Alpha Tech.*Altera*Andrew Corp.AtherosAtmel

Azimuth SystemsCOM DEVComtechAHACTS Comm.Cushcraft Corp.CygnusEuropeanAntennas

FiltronicsFortress Tech.*FujitsuHoplingHuber+Suhner.


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LCCMcKinsey- do not publicly announce

MiCOM LabsmmWave TechnologiesMurandiNCITNeotec*Nera Networks*OFDM Forum

Ontap4UPCTELPiepenbrock SchusterPricewaterhouse CoopersRedpine NetworksRFISanjole

Securitas DirectSGS Taiwan Ltd.Shorecliff CommunicationsSpectraSiteWalbellWalt Disney Company not for publicWongs International*

Eco-system Members (47)

3e Technologies*ADT

AgilentAnalog DevicesARRISAzonicB11 Group*Booz,Allen and Hamilton*CETECOM

Compliance CertificationComp USA*Daintree Networks Inc.DellEdelmanEDX WirelessElcoteq

Genius Institute of Technology*InnowirelessInovaware*InvenovaJuniper Networks*KaviKiwi Networks


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WiMAX Forum Org Chart

WiMA

X ForumBoard

TechnicalWorking Group

MarketingWorking Group

Service ProviderWorking Group

CertificationWorking Group

NetworkWorking Group

ApplicationsWorking Group

RegulatoryWorking Group

new new

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Global Wireless Standards

IEEE 802.15*Bluetooth

WAN

MAN

LAN

PAN ETSIHiperPAN*

IEEE 802.11*WirelessLAN

ETSIHiperLAN*

IEEE 802.16*2004

WirelessMAN

ETSI HiperMAN* &HIPERACCESS*

IEEE 802.20*(proposed)

3GPP, EDGE(GSM)

IEEE 802.21

IEEE 802.16e*WirelessMAN

v

WiMAX members contributing in these organizations

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WAN WAN MANMAN LANLAN PANPAN

3G3GWCDMAWCDMA

GPRSGPRS

EDGEEDGE

WiMAXWiMAX

802.16802.16

BroadbandBroadband

WiWi--FiFi802.11802.11

UWBUWBandand

BluetoothBluetooth

Wireless Networks Will Co-Exist

The Result: Always Best ConnectedThe Result: Always Best Connected

RFID/RFID/

TAGTAG

****

*Other brands and names are the property of their respective owners.*Other brands and names are the property of their respective owners.

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2005 Deployments: ACCESS With True QoSWiMAX Certified* Fixed Broadband Wireless Access

INTERNETBACKBONE

Telco CoreNetwork or

Private(Fiber)

Network

Non Line ofSight

Point to Multi-point

802.11 802.16

802.16

Point toPoint

BACKHAUL

802.16

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2006 - 2007: Portable/MobileWiMAX Certified Broadband

INTERNETBACKBONE

Telco CoreNetwork or

Private(Fiber)

Network

802.16

Laptop ConnectedThrough 802.16

Line of SightBACKHAUL

802.16 PCIExpress* Form

Factor

802.16

802.16

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2007 2008: Mobile

Wireless Data Access Networks

UrbanRural SuburbsUrban

WiMAX

GSM, CDMA

WiMAX

Wi-FiWi-FiWiMAX

Always Best Connected

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WiMAX Forum Certification Profile

First WiMAX forum CertificatedTM

at end of 2004

Based on IEEE802.16-2004

Second phase profile

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Copyright 2004 WiMAX ForumWiMAX Forum and "WiMAX Forum CERTIFIED are registered

trademarks of the WiMAX Forum.* All trademarks are the properties of their respective owners.

Global View of Spectrum Available forWiMAX

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Speaker Name

Title of Speaker

Primary Bands for 2006 DeploymentsLicensed 2.3, 2.5, 3.3, 3.5 GHzUnlicensed 5 GHz

USA

2.5 & 5 GHz

Central & So America2.5, 3.5 & 5 GHz

EUROPE3.5 & 5 GHz

MIDDLE EASTAFRICA3.5 & 5 GHz

ASIA PACIFIC2.3, 3.3, 3.5 & 5 GHz

Canada2.5, 3.5 & 5 GHz

RussiaPossible: 3.5, 2.5, 2.3?

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Globally Harmonized Spectrum

Cost effective access devices (laptops, handsets, etc.)

Economies of scale for device manufacturing

Divergent RF specs drive device costs up Bands,channelization, mask requirements, power output

Global roamingAbility to take your laptop or handset anywhere, andbe able to connect via a local service provider

Consistent end user experience

Ability to meet demand for higher speed data for more

usersBroadband access available anytime and anywhere

Wireless service prices on par with wired counterparts(xDSL, cable)

Quality of Service for Voice (VoIP)

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WiMAX Spectrum Goals

Sufficient harmonized spectrum to enable avolume global product for laptops with integratedWiMAX

Two licensed bands 2.3-2.7 GHz (notch out 2.4-2.5 GHz)

3.3-3.8 GHz

One license exempt band

5.7255.85 GHz (@ 4W EIRP in manycountries)

5.4-5.725 GHz (@ 1W EIRP per ITU)

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Analyst View of MarketAnalyst View of MarketWiMAX & Proprietary Last mile BWA deploymentsWiMAX & Proprietary Last mile BWA deployments

Key Takeaways:Key Takeaways: 2.5 & 3.5 GHz licensed spectrums

represent biggest opportunity in 06timeframe

5 GHz is largest unlicensed opportunity

Asia Pacific (APAC) region biggest

in 06 followed by EMEA (Europe/MiddleEast/Africa) and NA (North America)

5% 4%22%

28%41%

NA

EMEA

APAC

LAR

ROW

802.16 CPE Shipment by Region802.16 CPE Shipment by Region

2006 Forecast, ABI Research 2003

Projected BWA

Spectrum MixProjected BWA

Spectrum Mix2006 Forecast, Skylight Research 2003

9%

12%

3%

35%

41%

2.4 GHz

2.5-2.8 GHz

3.4-3.8 GHz

5-6 GHz

Others

3.4-3.8 GHz

2.5-2.8 GHz

5-6 GHz

APAC

EMEA

NA

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APAC 5 GHz Expected Allocation

Notes: 1. Japan will consider mid band later; 2. NZ has allocation from 5.725-5.875 GHz for spread

spectrum devices; 3. New Taiwan position is unknown; 4. It is unclear whether Indonesia will support

allocation of the mid band at this time (they may support it as a secondary band).

5.00 6.005.10 5.20 5.30 5.40 5.50 5.60 5.70 5.80 5.90

New Zealand2 /Malay

Thailand

Indonesia4

Australia

Japan1

Singapore

Taiwan3

S. Korea/India

China/HK

5.1505.250 5.350 5.470 5.725 5.8505.825

5.875

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WiMAX Asia development

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China Wireless Regulatory Update

In China , the band 3400 3430 MHzpaired with 3500 3530 MHz (30 MHz x 2)is opened for the implementation of BFWA

service in 32 cities Each operator in China is assigned 10.8MHz x 2 duplex spectrum to roll-out BFWAservice As China is a large market for BFWA,Hong Kong will benefit if the spectrumallocation for BFWA is harmonized withthat adopted in mainland China.

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Hong Kong Wireless Regulatory Update

OFTA set out the candidate frequency band forWiMAX service implementation Proposal 3.400 - 3.600 GHz to fixed service ofBFWA (Broadband Fixed Wireless Access) andFSS (Fixed Satellite Service) Some spectrum in 3.5 GHz available fortemporary basis to conduct trials of BWFA system Balance of spectrum between BWFA and FSS

The sub-band 3.400 3.600 GHz is slightlyused, there is now one assignment for 22

SMATV systems receiving Rajawali Citra TV at3473 MHz from the Palapa C2 satellite.

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Hong Kong Wireless Regulatory Update

OFTA recommends to allocate 10.5 MHz X2 for each operator, as 3.5 MHz channel presector, and 3-sector cell configuration

Also consider other no paired transmit andreceive application, such as UMTS FDD, andOFTA will close monitory the technologydevelopment

OFTA targets to issue an industryconsultation paper on licensing arrangementand regulatory framework of BFWA service inend of 2004, that will invite all 3.5 GHzapplication interested parties

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Singapore Wireless Regulatory Update

On Feb. 2004, IDA announced its intention toassign 2.3 GHz and 2.5 GHz frequency band forWireless Broadband Access, like the USA,

South Korea, Malaysia Marking the spectrum available forcommercial development, they do not belong tothe complete IMT-2000 of 3G family

IDA undertook a public consultation to seekcomment on technical aspects, spectrumallocation, marketing trial framework and Triallicense fees

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Singapore Wireless Regulatory Update

IDA proposed the market trial framework withminor amendments to some T&C for FBO andSBO.

6 months period for market trial license andother 6 months renewable (6+6)

Issues the Guidelines on Submission ofApplication for Market Trial License

S$ 2,500 for the trial license Bankers guarantee is S$ 100,000

For the FBO, they already pay the FBOlicense, the trial license fees will be waived

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South Korea Wireless Regulatory Update

South Korea's Ministry of Information andCommunication (MIC) will select threedomestic telecom carriers for the WiBro

launch by 2006 Domestic mobile-phone operator SKTelecom and fixed-line carriers KT andHanaro are vying for the licenses

South Korea government's WiBro licenserelease schedule should happen in February2005

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WiBro was first conceived as a Koreantechnology standard called HPi (for high-speed portable Internet), in which KoreasElectronics and TelecommunicationsResearch Institute, SK Telecom and KTCorporation had invested heavily MIC agreeing to use the 802.16e standard forWiBro

MIC plans to transfer all the 2.3GHzfrequency bands owned by Korea Telecom(KT) and Hanaro Telecom to mainly be usedin the portable Internet

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WiBro roadmap

Time Status

1H-04 Standard finalization

Feb-05 License issued

1Q-06 Commercial service launched

Source: ITU, compiled by DigiTimes, December 2004.

South Korea: WiBro uses 2005-2013 forecast (million subscribers)

2005 2006 2007 2008 2009 2010 2011 2012 2013

Subscribers

1.311 3.633 6.732 9.401 10.831 11.408 11.614 11.685 11.708

Source: KISDI, compiled by DigiTimes, December 2004.


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Taiwan Regulatory Update

Ministry of Transportation and Communications is closemonitory the wireless broadband technology developmentand wireless regulatory development Directorate General of Telecom office is not yet todefinite the technical direction for wireless broadband

application Followed ITU-R recommendation for spectrumarrangement The 3.4-3.6 GHz is already reserve for fix networkoperator for data communication

No fix network operator planned apply wireless last-mileapplication or the public wireless service license For the Taiwan international relationship environment,Taiwan is open for foreign investor and consider the foreigntechnology standard that is follow by investor

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Japan Regulatory Update

MIC ( MPHPT) on study construction of nextgeneration network infrastructures e-Japan priority policy program 2003

- to enable gigabit-class communicationindoors

- to realize super-high-speed wireless accessby fiscal 2010 Spread of broadband service

- Nationwide 83.3%- City 100 % MIC aim of contributing to building mostadvanced mobile IT environment

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WiMAX business modelsWhite paper download from WiMAX forum

www.wimaxwforum.org

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WiMAX Business Case Scenarios

Hypothetical Metro Area Deployment

Combined Urban, Suburban & Exurbanenvironments

Scenarios:1. Mobile Internet Access Only (802.16e)

2. Small/Medium Business Only

3. Residential Internet Access Only

4. Mobile Internet, Small/Medium Business,Residential Internet, WiFi Hot SpotBackhaul & Mobile Backhaul

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Hypothetical Metro Area

Urban Suburban Exurban Total

Area in sq-km ~50 ~100 ~100 ~250

Population ~500,000

Households 100,000 80,000 10,000 190,000

Small/MediumBusinesses

7,000 3,200 200 10,400

# of WiMAXEnabled PCs (5yrs)

35,000 32,000 6,000 73,000

# of WiFi Hot Spots 100 100 20 220

# of Cellular Sites 50 50 10 60

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Scenario 1: Mobile InternetUrban Suburban Exurban Total

BS Deployed 2 3 2 7

Coverage in sq-km 45 107 96 248

Population Covered ~236,000 ~223,000 ~25,000 ~484,000

WiMAX EnabledPCs ~32,000 ~34,000 ~6,000 ~72,000

Mobile InternetSubscribers

2,860 4,635 1,0408,535(12%)

Sensitivity

Mkt/ARPU/Take -50% - +50%

NPV $1.63M $5.45M $9.27M

Payback 3.9 yrs 3.1 yrs 2.7 yrs

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Scenario 1: Mobile Internet

Net Present Value: Metro Area

-$2,000

-$1,000$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

0 1 2 3 4 5 6

Years

NPV$K

5 Yr CAPEX

0%

19%

19%

13%23%

26%

0%

WiMAX CPE

WiMAX BS Equipment

BS Backhaul

Misc BS Equipment

Edge and CoreEquipment

Site Acquisition & Civil

Works

Spectrum License

Mobile Subscribers

0

2,000

4,000

6,000

8,000

10,000

0 1 2 3 4 5 6

Years

MobileCustomers

OPEX Breakdown

$0

$200

$400

$600

$800

$1,000

$1,200

Ye ar 1 Ye ar 2 Ye ar 3 Ye ar 4 Ye ar 5

Spectrum Lease Fees (If

Applicable)

Customer/Terminal Site

Lease Fees

Equipment Maintenance

General & Administrative

Equipment Installation

and Commissioning

Network Operations

Sales & Marketing

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Scenario 2: SMEUrban Suburban Exurban Total

BS Deployed 9 8 2 19



SME Covered ~6,900 ~3,000 ~200 ~10,100

SME Subscribers 459 288 32779(8%)

Sensitivity


NPV $1.69M $3.22M $4.95M


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Scenario 2: SME


-$4,000

-$3,000

-$2,000

-$1,000

$0

$1,000

$2,000

$3,000

$4,000

0 1 2 3 4 5 6

Years

NPV$K

Total SME Customers

0

200

400

600

800

1,000

0 1 2 3 4 5 6

Years

SMECustomers

5 Yr CAPEX

7%

20%

20%

14%

9%

30%

0%

WiMAX CPE

WiMAX BS Equipment

BS Backhaul

Misc BS Equipment


Site Acquisition & CivilWorks

Spectrum License

OPEX Breakdown

$0

$500

$1,000

$1,500

$2,000

Yea r 1 Yea r 2 Yea r 3 Yea r 4 Yea r 5


Applicable)

Customer/Terminal Site

Lease Fees

Equipmen t Maintenance


Equipment Installation

and Commissioning

Network Operations

Sales & Marketing

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Scenario 3: Residential InternetUrban Suburban Exurban Total




ResidencesCovered ~91,000 ~77,000 ~10,000 ~178,000

ResidentialSubscribers

4,120 6,928 1,88112,929(7%)

Sensitivity


NPV $3.60M $5.56M $7.51M


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Scenario 3: Residential Internet


-$4,000

-$2,000

$0

$2,000

$4,000

$6,000

0 1 2 3 4 5 6

Years

NPV$K

Residential Subscribers

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

0 1 2 3 4 5 6

Years

ResidentialSubscribers

OPEX Breakdown

$0

$500

$1,000

$1,500

$2,000

$2,500

Year 1 Year 2 Year 3 Year 4 Year 5

Spectrum Lease Fees (IfApplicable)

Customer/Terminal SiteLease Fees



Equipment Installationand Commissioning

Network Operations

Sales & Marketing

5 Yr CAPEX

39%

13%13%

9%

7%

19%0%

WiMAX CPE

WiMAX BS Equipment

BS Backhaul

Misc BS Equipment

Edge and Core

Equipment

Site Acquisition & CivilWorks

Spectrum License

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Scenario 4: Mixed MarketUrban

Sub-urban

Exurban TotalSubscribers/

Ma

rketPenetration


Coverage insq-km

48 96 94 238

PopulationCovered

~250,000 ~200,000 ~25,000 ~475,000

ResidencesCovered

~96,000 ~77,000 ~9,400 ~182,40013,000(7.2%)

SMECovered

6,700 3,100 200 10,000825

(8.2%)

WiMAXEnabled PCs

33,600 30,800 5,600 70,0008,300(11.9%)

WiFI HotSpots

96 97 19 21258

(27.4%)

Mobile CellSites

48 49 10 10717

(15.9%)

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Scenario 4: Mixed MarketFinancial Data


-$10,000

-$5,000

$0

$5,000

$10,000

$15,000

$20,000

0 1 2 3 4 5 6

Years

NPV$K

5 Yr CAPEX

23%

18%

18%

13%

4%

24%

0%

WiMAX CPE

WiMAX BS Equipment

BS Backhaul

Misc BS Equipment


Site Acquisition & Civil

Works

Spectrum License

OPEX Breakdown

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Year 1 Year 2 Year 3 Year 4 Year 5


Applicable)

Customer/Terminal SiteLease Fees



Equipment Installationand Commissioning

Network Operations

Sales & Marketing

-$5,000

$0

$5,000

$10,000

$15,000

$20,000

Year

1

Year

2

Year

3

Year

4

Year

5

$K

Gross Annual Revenuein $K

Net Annual Revenue

CAPEX

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Scenario 4: Mixed MarketSubscriber Data

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

0 2 4 6Years

Residential/Mobile

Customers

0

100

200

300

400

500

600

700

800

900

1,000

SMECustomers Residential Users

Mobile Subscribers

Total SME

Customers

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

0 2 4 6

Years

Revenuein$K

Gross ResidentialRevenue in $K

Gross BusinessRevenue in $K

Mobile SubscriberRevenue

Gross BackhaulRevenue

Subscriber Breakdown

58.6%

3.7%

37.3%

0.3% 0.1%Residential Users

Total SME Custom ers

Mobile Subscribers

Wi-Fi Hot Spot Backhaul

Sites

Cellular Backhaul Sites

Subscriber Revenue

40.2%

33.8%

23.5%

2.5%Gross ResidentialRevenue in $K

Gross BusinessRevenue in $K

Mobile Subscriber

Revenue

Gross BackhaulRevenue

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Scenario 4: Mixed MarketSpectrum License Impact

Spectrum assumedfor business case:40MHz in the license-exempt 5.8GHz Band

$/MHz/Pop based on56 MHz of spectrumi.e. 2x28 MHzchannels in 3.5 GHzBand

Opening bid for arecent FCC auction(July 04) was$0.0003/MHz/Pop$15.60

$15.80

$16.00

$16.20

$16.40

$16.60

$16.80

$0.00 $0.01 $0.02 $0.03 $0.04

Spectrum License $/MHz/Pop

N

PVin$M

42

43

44

45

46

47

48

PaybackinMonths

NPV in $M

Payback in Mos

$15.6

$15.8

$16.0

$16.2

$16.4

$16.6

$16.8

$- $0.50 $1.00 $1.50 $2.00 $2.50

Spectrum License $/Pop

NPV$M

42

43

44

45

46

47

48

PaybackinMonths

NPV in $M

Payback in Mos

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Market Segment ComparisonMobile Residential SME Mixed

BaseStations

7 15 19 39

CoverageArea

248 246 241 238

Population ~484K ~464K ~481K ~474K

CAPEX $1.32M $4.01M $3.30M $7.77M

$/Sub $154 $310 $4,231 $349

Subscribers 8,535 12,929 779 22,280

5 yrPenetration

11.9% 7.2% 7.7% n/a

NPVNet present value

$5.45M $5.55M $3.22M $16.61M

Payback 3.1 Yr 3.8 Yr 4.1 Yr 3.5 Yr

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Demographic Comparison

NPV: Mobile Internet Market Segment

-$1,000

-$500$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

0 1 2 3 4 5 6

Years

NPV$K Urban

Suburban

Exurban

NPV: SME Market Segment

-$2,000

-$1,000

$0

$1,000

$2,000

$3,000

0 1 2 3 4 5 6

Years

NPV$K Urban

Suburban

Exurban

NPV: Residential Market Segment

-$2,000

-$1,000

$0

$1,000

$2,000

$3,000

$4,000

0 1 2 3 4 5 6

Years

NPV$K Urban

Suburban

Exurban

NPV: Mixed Market Segment

-$4,000

-$2,000

$0

$2,000

$4,000

$6,000

$8,000

$10,000

0 1 2 3 4 5 6

Years

NPV$K Urban

Suburban

Exurban

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Observations & Conclusions

Satisfactory business case with either scenario Lower market risk with Mixed scenario but .. Greater front-end investment

Mobile Internet only segment provides quickestpayback Aided by $0 CPE cost but .. Must deploy metro-wide before offering service

WiFi Hot Spot and Mobile backhaul will not support astandalone business

ARPUs are good averages for US markets but .. Will vary city by city and country by country

Need additional analysis on projected WiMAX-enabled devices over next 5 years Also include Smartphones and PDAs In competition with 3G/4G mobile

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Appendix: Competitive Technologies(Current US Range)

Technology ARPUs

DSL/Cable $37 to $50 per month (if available)

Wi-Fi $30 to $50 per month

SME T1 $630 per month with 1 year term

SME 512 kbps $531 per month with 1 year term

SME Local Access(POTS)

$265 per month with 1 year term

Leased Lines forMobile Backhaul

$200-$300per T1/Mo

$400-$700per T1/Mo

$800-$1200per T1/Mo

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Documents

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