canopy pilot projects

Motorola Confidential Proprietary

Canopy pilot projectsBrazil

Motorola Professional Services

Sobral

Motorola Professional ServicesFebruary 2003 - Canopy pilot project

Motorola Confidential Proprietary R.F. Feb. 2003

Jaguariúnaand

Campinas



Coverage w/ reflector (16 km)

Internet access

Coverage w/ backhaul unit (32 km)

Example of secondary cell

Prime coverage (3 km)



Telemar internet access

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Sobral solutions showcaseSobral solutions showcase

Administration of public resorts: Model for city administration (Security, health, education)

(Candidate to PMAT public fund for administrative improvements)

Digital citizenship projects: Public Internet access points (free access) and mobile bus IP phone and IP TV service for communication w/ citizen;

(Candidate to FUST public fund for telecommunication access)

Access of remote communities of the North-East: Development of telemedicine (“Saúde familia”) Development of remote education

Remote education

Telemedicine

Surveillance of public areas



Concepts of the pilotConcepts of the pilot



Communication technology can break barrierse.g Cultural leveling per television or communications improvement thru

phone/cellular coverage

Barriers for development of the North-EastBarriers for development of the North-East

Huge geographic extension of Brazil Heterogeneous social environments Heterogeneous economical environments Heterogeneous development levels

Difficulty to integrate and administrate the national community Distance Isolation of remote communities Shortage of highways, railroads and communication insfrastructure Lack of resources to develop infrastructure



Canopy has an huge potential in Brazil

Technology as a means to break barriersTechnology as a means to break barriers

Broadband Internet technology is a means to: Ensure virtual proximity of remote communities Facilitate country administration Promote social development (telemedicine, remote education, information) Promote national integration

Canopy is the missing link to provide Internet in remote communities

Broadband Internet services will unleash profound industrial and social changes, comparable to the changes resulting from the construction of highways or railways

e.g. in the 19th. century in the US.



MomentumMomentum Technological momentum:

Canopy beats competing technologies for most rural applications Competitors will catch up 2004 the latest

Political momentum: Government focus on social development and national integration Anxious quest for new technologies to drive development

Exposure of the Sobral experiment: Ministery of National integration (Ciro Gomes native from Sobral) Ministery of Health ( “Saúde familia” program - Dr. Odorico) Ministery of Education (National priority) Ministery of Telecommunications (Approval process in Anatel)

Ideal momentum for Canopy AND for Motorola Brazil



PartnersPartners



Urban environment of Sobral Fairly developed urban area Internet expertise and access to telecommunications services

Regional environment Underdeveloped region – low population density Precarious infrastructure / shortage of resources Precarious public services (health, education)

Progressive administration - leadership in social programs Searching for ways to drive economic and social development Perceives technology as means for development Ongoing programs for social development

Sobral: ideal stage to demo potential impact for BrazilSobral: ideal stage to demo potential impact for Brazil

Cid Ferreira GomesMayor of Sobral

Dr. Luis Odorico Monteiro de Andrade PhDDirector of social development and health

(Click here)



Edumed: provide solutions and open new marketsEdumed: provide solutions and open new markets

Specialized since 2000 in development of solutions for: Telemedicine Distance education Multimedia service providing Webscasting and Webstreaming

Excellent access to social partners: Maintained by a consortium of over 20 health institutes Profound familiarity with Brazil health, education and academic environments Partnership with numerous health, education institutions and Embratel Non-Profit institute certified for most public grants and programs

Opens access to markets new to Motorola

Prof.Dr. Renato SabbatiniDirector Edumed research institute PhD



Business potentialBusiness potential



Expected demand for Canopy Expected demand for Canopy products and solutionsproducts and solutions

Overwhelming demand for Canopy and related Motorola products and services Security, education, health and administrative solutions for cities, state and federal entities

6,700 city administrations

500,000 schools

7,000 hospitals

85,000 public health care units

65,000 ambulatory units

Innumerous public or private resorts to administrate

Excellent platform to obtain development funds FUST: special fund for dissemination of telecommunication access: 800 Million US$ PMAT: special fund for improvement of administrative efficiency: 400 Million US$ FINEP

From left to right: Prof. Sabbatini, Dr. Odorico, x. xxx (BNDES), René

BNDES committed 600 KUS$ for Sobral pilot solution



Sales estimateSales estimate

Current US sales: 5,000 units per month Just another ISP telecommunication equipment

Brazil sales Canopy is THE solution for country wide low cost communication demand Will be positioned as

Equipment for communication of Internet service providers (ISP) AND solution for Brazilian communities

Estimate: > 5,000 units per month or > 4 Million US$ per month

Canopy Radio Shipments

0

1000

2000

3000

4000

5000

6000

2001 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2002

Un

its 5700xx

5200XX

50 Million US$ per year is a reachable target

Canopy will strongly vitalize Motorola business in Brazil



Telexpo March 25-28Telexpo March 25-28

Video screen with recurring clips on:

• Canopy system

• Belem ISP solution ISP market

• Sobral community solution Community market

Small counter w/ Canopy mockups and min. attendance

Conference from Edumed



EndEnd



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