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© Copyright Alvarion Ltd.
AlvarionAlvarion
Andrea Marco Andrea Marco BorsettiBorsetti
2005 ICTP - Trieste2005 ICTP - Trieste
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Safe Safe HarbourHarbour
This presentation may contain forward-looking statements within the meaning of the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may
be identified by, among other means, the use of the terms “shall”; “will”; “may”; “might”; “could”;
“should”; anticipate”; “expect” (or variations of any of such terms) or by reference to the possibility,
expectation or lack of expectation that specified circumstances or events may occur in the future.
Forward-looking statements are based on the current expectations or beliefs of Alvarion’s
management and are subject to a number of factors and uncertainties that could cause actual results
to differ materially from those described in the forward-looking statements. The following factors,
among others, could cause actual results to differ materially from those described in the forward-
looking statements: an inability to further identify, develop and achieve success for new products,
services and technologies; increased competition and its effect on pricing, spending, third-party
relationships and revenues; an inability to establish and maintain relationships with commerce,
advertising, marketing, and technology providers; a failure to satisfy conditions to the obligations of
other persons to Alvarion; a failure of other persons to satisfy their obligations to Alvarion; and other
risks and contingencies described or referred to from time to time in filings with the Securities and
Exchange Commission. Alvarion disclaims any duty to update such forward-looking statements.
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At a GlanceAt a Glance
Worldwide leader in wireless access30-35% market share of global BWA marketLargest installed base - over 2,000,000 units deployed in more than 130countriesForefront of wireless standards & leadershipfrom 802.11 to 802.16eProviding solutions for extending mobile coverageand specialized CDMA and next generation networks
Local presence in 23 locations:Australia, Brazil, China, Czech Republic, France, Germany, Hong Kong,Ireland, Israel, Japan, Mexico, Nigeria, Philippines, Poland, Romania,Russia, Singapore, South Africa, Spain, UK, Uruguay, USA (Californiaand Miami)
Employees: 900 with around 400 in R&D
Established: 1992
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At a GlanceAt a Glance
Global solutions provider of three metro wireless technologies:wireless broadband, WLL and cellular
Industry consolidatorBreezeCOM+ Floware + InnoWave + interWAVEFinalized acquisition of interWAVE Dec 2004
Diversified customer base & outstanding partner networkincluding Alcatel, Lucent, Nera, Siemens and over 200 localpartners
Strong financial position
14 consecutive quarters of revenue growth as of Q4/04
Q4/04: revenues of $55.9M
Profitable and cash flow positive
Around $133M in cash
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Alvarion is leading the broadband wireless market to the widespreadadoption of standards-based fixed and mobile solutions
AlvarionAlvarion’’ss Strategy Strategy
Continue to dominate the global BWA market with over 30% market share
Maintain technology leadership to keep barriers to entry high
Main consolidator
Extend leadership in fixed BWA to mobile WiMAX
Remain at the forefront of standards development
Combine technology and expertise from both fixed BWA and cellular businesses
Use financial strength and flexibility as strategic competitive advantage
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Alvarion CustomersAlvarion Customers
Carriers (incumbent, cellular, alternative)and ISPs, regional operators
Wireless DSL
Leased line, fiber replacement
Base station feeding
Compact cellular network/extensions
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Alvarion ApplicationsAlvarion Applications
Developing areas: Wireline infrastructure poor or lacking
Copper / fiber substitute
Voice with some data
Cellular voice and data
Developed areas: With quality infrastructure
Hole-filling; DSL / cable refugees
Specialty cellular networks
Developing
Developed
Alvarion Revenue by Type of Market(Approximate)
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CompetitionCompetition
Alvarion is the worldwide leader in the BWA market
Global BWA Equipment Market Q1-Q3 2004 (Skylight Research, 12/04)
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Alvarion Core Technical ExpertiseAlvarion Core Technical Expertise
DSPOver 54 Mbps OFDM PMP architecture (VLIW)36 Mbps QAM PMP
PMP System & ProtocolsOptimized PMP air protocolsToll Quality VoiceDynamic Bandwidth AllocationQuality of Service (QoS)
RadioVariety of high-performance radiosOperating in the widest range of frequency bands 450MHz - 28 GHz
CellularGSM / CDMA network and transmissionIP-based mobile switch (softswitch) and legacy GSM switchingOutdoor mobile solution (network on wheels)
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Alvarion Product FamiliesAlvarion Product Families
BreezeMAX™BreezeACCESS®
BreezeNET ® MGW /eMGW™
WALKair ®
UltraWAVE WAVE 2000
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Alvarion Product FamiliesAlvarion Product Families
Alvarion Product Portfolio – Total Coverage
Cellular Residential SOHO MTU SME MBU LE
LMDS 26/28 GHz
10.5 GHz
5GHz
3.5 GHz
US MMDS
2.4 GHz
1.9 GHz
800 MHz
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BreezeMAX - Taking BreezeMAX - Taking WiMAXWiMAX to the MAX to the MAX
WiMAX-ready solution
BreezeMAX 3500 operates in 3.5GHz
High coverage and availability (NLOS, OFDM)
Multi application multi service platform:
Base Station: High Density (chassis) or Micro (single sector)
CPEs:
Data Bridge
Voice Gateway
Networking Gateway
Residential & enterprises, high density and rural zones for voice, data, video
Carrier-grade NMS
QoS to support multi-applications: voice, leased lines, VPNs & data services
50 installations worldwide (commercial deployments and trials)
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UltraWAVEUltraWAVE / WAVE2000 / WAVE2000
Fixed and mobile cellular networks
Cellular extension for emerging markets
Bandwidth efficient terrestrial and satellite backhaul
UltraWAVE
GSM
Distributed switching
Scaleable architecture
End-to-end network solutions
850, 900, 1800, 1900MHz
WAVE2000
CDMA 2000-1x
Complete IP-based architecture
Softswitch platform
Compact and scaleable
450, 850, 1900, 2100MHz
UltraWAVE
WAVE 2000
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Most field proven BWA system in the world
Access, backhauling, mobility
Flexibility and modularity
Complete SpectrumTM solution
900MHz, 2.4, 2.5, 3.5, 4.9, 5.2, 5.4, 5.7 GHz
Multiple customer profiles
Residential, SOHO, SME, MTU
3 Mbps – 54 Mbps
Varied services
Bandwidth management, prioritization, CIR/MIR, security
Adaptive modulation, OFDM
Integration into the network, easy operation
Fast and easy deployment
BreezeACCESSBreezeACCESS
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MGW / MGW / eMGWeMGW
MGW800MHz, 1.5, 1.9, 2.4, 2.4 (ISM), 3.4-3.8GHzLow cost toll quality voice telephony,dial-up and fax
eMGW1.5, 1.9, 2.4, 2.4 (ISM) 3.4-3.8, 5.7GHzDSL Data + toll quality voice telephony,dial-up and fax512Kbps (symmetric)
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Around 1 million deployed lines
Toll quality voice, fast Internet, Fax G3, Modem V.92
Cost effective for residential, SOHO & small business users
Tailored for urban, suburban & rural areas
FH-CDMA TDD, operating in 800MHz - 5.7GHz
Long range: Up to 25km
Cell capacity: 1000 Erlang, 1- 80 Mbps
Efficient spectrum utilization
Reuse 1:1
MGW / eMGW coexistence
MGW/MGW/eMGWeMGW
Toll quality TDM voice and DSL data services
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Field proven Multi-Service System
Access, feeding
WALKair 1000 – 3.5, 10.5, 26 GHz
Multi-carrier 64QAM
4 Mbps, full duplex
E1, IP, V35, FR, BRI, V5, Multi-POTS
WALKair 3000 – 10.5, 26, 28GHz
Multi-carrier 16QAM/QPSK (adaptive)
36 Mbps, full duplex
E1, IP, Network Interface: ATM, E1/E3, 100BaseT
Alvarix – The best of WALKair 1000 and 3000
WALKairWALKair
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BreezeNET B
PTP in 5.2, 5.4, 5.7GHz
NLOS, OFDM, up to 54Mbps
BreezeNET DS.11
Extra long range outdoor wireless bridge
802.11b at 2.4 GHz / 5.8GHz at 11Mbps
BreezeNET PRO.11
WLAN connectivity at 2.4 GHz at 3Mbps
Unique robustness through Frequency Hopping
BreezeNETBreezeNET
Robust outdoor solutions for bridging and backhaulingCorporate Office
RemoteBranch
Bridging
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Global Customer BaseGlobal Customer Base
Customers: Local presence in 22 countriesCarriers (incumbent, cellular, alternative) Over 2,000,000 units deployedISPs and regional operators More than 130 countries
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Only BWA vendor with Complete Spectrum™solution of 900 MHz, 2.4, and 5 GHz
300,000 units deployed with over 2,000 operators
Largest deployments in US
AMA Techtel (Texas)
Midwest Wireless (Minnesota)
Utilities:
Wheatland Electric, Owensboro (OMU)
Municipalities:
Sailor, York, Alleghany
Texas, Minnesota, Kansas Texas, Minnesota, Kansas …………
Extensive U.S. DeploymentsExtensive U.S. Deployments
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Mexican Incumbent
Largest Telecom provider in Latin America
Main Shareholder: Group Carso
Telephony and Data Wireless DSL services
Target market - mainly residential users
Massive installation hundreds of thousands of deployed lines
Deployed in 10 divisions throughout Mexico
Mainly suburban and rural areas
MGW & eMGW systems, operating in 3.5GHz
MexicoMexico
TelmexTelmex –– Access ILEC Access ILEC
www.telmex.com
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Alvarion 3.5GHz Deployments in ChinaAlvarion 3.5GHz Deployments in China
Cities of China Telecom
Cities of China Unicom
Cities of China Netcom
Cities of China Railcom
Cities of China Mobile
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Telecom Italia Mobile largest shareholder
Leading cellular and long-distance operator
Leveraging on existing infrastructure
Generating revenues withminimal CAPEX and OPEX
Over 30,000 customers connected
Deploying BreezeACCESS XL in 3.5GHz
Currently overlaying the network with BreezeMAX
ChileChile
EntelEntel –– Access Cellular Operator Access Cellular Operator
www.entel.cl
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Owned by France Telecom, Polish government, Kulczyk
70,000 lines in Suburban & rural mainly for residential
Telephony (POTS), voice-band-data and ISDN-BRI
Deployed around 100 base stations
MGW system operating in 2.4GHz
Deployed in over 40 cities throughoutPoland with other operators including:Netia, Dialog, Elnet, PTO
PolandPoland
TPSA TPSA –– Access ILEC Access ILEC
www.telekomunikacja.pl
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Russian (Rostelecom) –American (GoldenTelecom) telecom venture, founded 1990
Offers voice, data and feeding services toRussian enterprises
BWA network is used as complimentaryoffering for both feeding and access solutions
Wireless network serves two key Russianmarkets: Moscow & St. Petersburg
Deploying WALKair 1000 in 3.5 & 10.5GHz
RussiaRussia
SovintelSovintel –– Backhauling Backhauling
www.sovintel.com
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Privately held ISP in Amarillo, TX
Offers Internet and VPN services
Achieved rapid return on investment
Covering 20,000 square miles
Almost 6,000 CPE installed
Deploying BreezeACCESSComplete Spectrum™
USAUSA
AMA AMA TechtelTechtel –– ISP ISP
www.amatechtel.com
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Key Success DriversKey Success Drivers
Next Generation Technology economical, high quality
wire line alternative
Regulation EvolutionIncreased allocation ofLicensed and Unlicensedbands
Carrier Demandto serve ‘White Zones’
& ‘DSL Refugees’
AccelerationStage
StandardizedTechnology 802.16
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New BreezeMAX PlatformNew BreezeMAX Platform
Expertise in OFDM technology
Working with OFDM technology for over 5 years
Already proven NLOS capabilities
Strategic Relationship with Intel
Close collaboration on chip for CPE
Chosen by Intel as system house to test chip
Time-to-market advantage
Differentiation from Competitors
BreezeMAX platform designed from ground upvs. adapting existing product
Flexible architecture to support future enhancements
First to market enables valuable field experience
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The The WiMAXWiMAX Roadmap Roadmap
MobilitySolution Characteristics• CPE Native in Mobile PC• User can roam within the
service area at varyingspeeds
Applications• “Mobile” Broadband
access for consumers• Always Best Connected
(SNS)
20042004 Going ForwardGoing Forward
Fixed OutdoorSolution Characteristics• Fixed location• Installed outside of
subscriber’s house• Requires truck roll
Applications• E1/T1 Level Service for
Enterprises• Backhaul for Hotspots• Fractional E1/T1 for SMB• Limited residential
broadband access(early adopters, rural,developing countries)
Fixed IndoorSolution Characteristics• Consumer – self install,
auto provisioning• Portable – can ‘move’
CPE to another locationin service area
Applications• “Last Mile” Broadband
access for consumers• Portable broadband
access
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Recent DevelopmentsRecent Developments
Successful WiMAX deployments and trials with over 50operators, including:
Mobile City, ScandinaviaIberbanda, SpainAltitude, France
New OEM AgreementsLucentAlcatel
First to announce Mobile WiMAX solutionbased on 802.16e standardavailable in 2006new business unit created to draw on technology and expertise fromboth BWA and cellular businesses
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Global GrowthGlobal Growth
Worldwide Broadband Wireless Equipment Revenue <10GHz
Source: Sky Light Research 2004
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Why Alvarion?Why Alvarion?
Leading the Broadband access / WiMAX revolution
Best positioned to continue to lead this market:
Branded as the number one provider of broadband wireless solutions
Excellent technology, range of products and roadmap
Exceptional channels and partners with global reach
Best available partner to our customers
Strong financial position
Strong management and international board of directors
Track record as successful consolidator
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Thank you
Alvarion, BreezeCOM, BreezeMAX, BreezeNET, BreezeMANAGE, BreezeACCESS, BreezeLINK, BreezePHONE, WALKair, WALKnet, MGW, eMGW are either registered trademarks, tradenames or service marks of Alvarion Ltd.
Andrea Marco Borsetti
Sonia Sabato