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Canopy Training SeminarConfidential & Proprietary

Welcome to the CanopyTraining Seminar!

Confidential & ProprietaryMOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other

product or service names are the property of their respective owners. © Motorola, Inc. 2002.

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Canopy Training AgendaOctober, 2002

Canopy Broadband Wireless Internet Training Seminar

Canopy Training SeminarConfidential & Proprietary

Business/Sales Training Agenda

Welcome/Opening Comments

Canopy Product Overview

Competitive Landscape

Canopy Product Roadmap

Break

Building the Business Proposition

Creating the Buzz

Canopy Configurations

Breakout Sessions

Canopy Training SeminarConfidential & Proprietary

Technical Training AgendaCanopy Architectural OverviewCanopy IP NetworkingBreakCanopy System ScalabilityCanopy System Security LunchCanopy System InstallationManaging the Canopy ComponentsTroubleshooting the Canopy SystemQuestions & AnswersClosing Comments

Canopy Training SeminarConfidential & Proprietary

Agenda

Welcome/Opening Comments

Canopy Product Overview

Competitive Landscape

Canopy Product Roadmap

Break

Building the Business Proposition

Creating the Buzz

Canopy Configurations

Breakout Sessions

Confidential & ProprietaryMOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other

product or service names are the property of their respective owners. © Motorola, Inc. 2002.

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Canopy Market and Product Overview

Tony Sarallo

Sr. Manager, Distribution Strategy & Sales LACA, and Motorola Channel Partners

Canopy Broadband Wireless Internet Training Seminar

Canopy Training SeminarConfidential & Proprietary

Agenda

• Wireless Broadband Opportunity

• The Canopy System

• Key Canopy Differentiators

• Summary

Canopy Training SeminarConfidential & Proprietary

What is Wireless Broadband?

• High Speed Data with User Access Speeds Greater than 256K

• Licensed & Unlicensed Frequency Options

• Why Canopy is Focused on the Unlicensed 5GHz Spectrum

– Spectrum is Free– Spectrum is Clear– Over 200Mhz of Available

Spectrum

Canopy Training SeminarConfidential & Proprietary

What is the Difference?

• Wireless Local Area Network (WLAN):– Designed to Support Last 100 Feet (802.11A&B)– Used Largely in Enterprises but Migrating into Residential

• Hotspots– Interface to ISP to Support Nomadic Traffic in Public Areas.

Leverages WLAN and Provides Billing Support– Examples: Airports, Train Stations, Coffee Shops

• Fixed Wireless – Last Mile to Business or Residential– Fixed IP Access to a Fixed Location– Canopy can Support Internet Delivery to Hotspots with

Distribution using WLANS

Canopy Training SeminarConfidential & Proprietary

The Value Chain

Content &Applications

AccessNetworks

End-UserDevices

What User Wants Users

Companies Providing

New and traditionalContent and applications

(video, web pages)

Providers of broadbandNetworks connecting

End-users to backbonesWhere content and Applications can be

Accessed(Cable, DSL, Wireless)

Hardware and softwareUsed by end-users and

Connected to the accessNetwork

(personal computers,web cams, PDAs))

Content &Applications

AccessNetworks

End-UserDevices

What User Wants Users

Companies Providing

New and traditionalContent and applications

(video, web pages)

Providers of broadbandNetworks connecting

End-users to backbonesWhere content and Applications can be

Accessed(Cable, DSL, Wireless)

Hardware and softwareUsed by end-users and

Connected to the accessNetwork

(personal computers,web cams, PDAs))

Canopy Training SeminarConfidential & Proprietary

Experience Makes the Difference

Experienced RF Design, Installation and Support are Critical for a Successful Wireless ISP Deployment

Content &Applications

AccessNetworks

End-UserDevices

What User Wants

Users

Companies Providing

New and traditionalContent and applications

(video, web pages)

Providers of broadbandNetworks connecting

End-users to backbonesWhere content and Applications can be

Accessed(Cable, DSL, Wireless)

Hardware and softwareUsed by end-users and

Connected to the accessNetwork

(personal computers,web cams, PDAs))

Content &Applications

AccessNetworks

End-UserDevices

What User Wants

Users

Companies Providing

New and traditionalContent and applications

(video, web pages)

Providers of broadbandNetworks connecting

End-users to backbonesWhere content and Applications can be

Accessed(Cable, DSL, Wireless)

Hardware and softwareUsed by end-users and

Connected to the accessNetwork

(personal computers,web cams, PDAs))

Canopy Training SeminarConfidential & Proprietary

Up To 1000 Additional WISPs Are Expected To Deploy By End Of 2002 In The US Alone!

The Broadband Wireless Landscape

• The Fixed Wireless Market Is Expected To Grow To $344M In 2002 With 68% Of Spending Occurring From July – December 2002.

• WISPs Will Account For $243M (74%) Of Total$180M Will Be Spent In The Second Half 2002

• 31% Of Existing ISPs Will Expand Into Broadband Wireless

Access Market• WISP Market Is Highly Fragmented With More Than 1000

Companies Offering Service Today

Canopy Training SeminarConfidential & Proprietary

Why are ISPs Becoming WISPs?

• Subscribers Have Limited Or No Broadband Access • Ability To Quickly Meet Demand For Broadband

Services via Wireless• Telco DSL Resale Costs Don’t Leave Enough Room

For Realistic ROI• Means To Increase Service Area With Better Profit

Margins Than Dial-up And T-1• Reduce Operating Costs By Eliminating Local Loop

85% of the WISPs are Also Some Type of IP Provider

Canopy Training SeminarConfidential & Proprietary

Fixed Wireless Market Sizing(Total Available Market by Segment)

0%

10%

20%

30%

40%

50%

60%

2002 2005

WISPs

Cable Operators

DSL Suppliers

Direct Satellite

Enterprises

Alarm Companies

Municipalities

Canopy Training SeminarConfidential & Proprietary

Key Service Provider Challenges

• Business Environment– Bypassing LEC– Faster Access– Customer Demand– Broadband Alternatives

• Vendor Selection Criteria– Equipment Price– Technical Support

• Most Challenging Feature– System Design/Installation– Radio/Wireless Knowledge– Technical Support– Interference Mitigation

Canopy Training SeminarConfidential & Proprietary

Broadband access solutions that can address the price/performance, availability, and cost of ownership requirements of the service provider will enjoy long-term viability in this emerging market.

Bottom Line

Canopy Training SeminarConfidential & Proprietary

How The Canopy Solution Meets the Challenge

• No Licenses Required– Canopy Works in the Unlicensed UNII Spectrum so there is no license

required– No Right of Way Issues

• No Complicated Equipment– Canopy Equipment Is Streamlined And Simple To Install For Those

Experienced In RF And Wireless Communications

• No Major Investment– The Start-up Costs Of The Canopy Platform Are More Affordable Than Any

Other Wireless Internet Connectivity Option - Demand Based Build-out

• No Complex Infrastructure– Canopy Can Be Up And Running In A Day! No Requirements For Overhead

Or In-ground Wire, Microwave Or Software To Install– No Recurring T1 Leasing Costs

Canopy Training SeminarConfidential & Proprietary

The Canopy Opportunity

5Ghz Fixed Wireless Access Total Available Market(United States)

2002 2003 2004 2005

5Ghz Subs Deployed Each Year

144,496 636,173 695,799 964,524

5Ghz Equipment TAM

$96,667,540 $361,759,492 $395,666,101 $548,476,846

5Ghz Systems Design, Installation and Support

$33,833,639 $126,615,822 $138,483,135 $191,966,896

5Ghz Equipment & Services

$130,501,179 $488,375,314 $534,149,237 $740,443,741

Canopy Training SeminarConfidential & Proprietary

ISPs & WISPs

• Canopy Enables both ISPs and WISPs to:

– Deliver Cost Effective Broadband Service to Existing Portfolio

– Provide Fast, Secure, Reliable Service Without the Interference Issues that Plague Competitive Wireless Offerings

• Higher Quality of Service with Lower Network & Maintenance Costs

Canopy Training SeminarConfidential & Proprietary

Municipalities

• Provides an Alternative to Broadband Providers

• Serves Consumers in the “Digital Divide”

• Build Electronic Village• Construct Safe Zones• Provide Community Net• Wireless Broadband

Solution for Public Safety Applications

Canopy Training SeminarConfidential & Proprietary

Security Market

• Leverage Long-Term Customer Relationships

• Expand Product Offering to Include a Broadband Component for Overall Alarm Monitoring

• Provide Incremental Revenue Growth

Canopy Training SeminarConfidential & Proprietary

Medium to Large Enterprises

• Broadband Connections for Virtual Private Networks

• Backhaul Services that Significantly Reduce/Eliminate Monthly T1 Costs

• Safe, Secure & Reliable• Redundancy Application

Canopy Training SeminarConfidential & Proprietary

SOHO/Residential

• With Canopy, SOHOs can afford the benefits of high-speed Broadband Service to Support their Business

• Canopy Levels the Playing Field by Delivering Cost Effective Broadband Access for Everyone

• “Crossing the Digital Divide”

Canopy Training SeminarConfidential & Proprietary

Point-to-Multipoint

Point-to-Multipoint

Point-to-Point

Canopy Wireless Internet PlatformA Fixed Wireless Access Solution

Canopy Training SeminarConfidential & Proprietary

Main Components

• Access Point (AP)• Subscriber Module (SM)• Backhaul (BH)

Canopy Training SeminarConfidential & Proprietary

Access Point

The Canopy Access Point is used as a relay to transmit Internet Service to the surrounding Community

The brains of your Internet access networkis the Canopy AP Cluster.

The glue of your Internet access networkis the Canopy Cluster Management Module.

Canopy Training SeminarConfidential & Proprietary

Subscriber Module

The Canopy Subscriber Module is used to receive Internet Service from the closest Access Point.

The Canopy Subscriber Module (SM)connects you to your Internet access network.

Canopy Training SeminarConfidential & Proprietary

Backhaul

The Canopy Backhaul can be used to deliver Internet feed to an Access Point for distribution.

The Canopy Backhaul Unit (BH) gives you the flexibility to connect your Internet access network to a remote Internet “feed.”

Canopy Training SeminarConfidential & Proprietary

Standard Multipoint configuration

The standard multipoint configuration is a 5.2GHz set of Access Point Modules connected by a Cluster Management Module serving 5.2GHz SM equipped households.

5.2GHz

Subscriber Module Equipped Households

Network Connection

AC Feed

Access Point Cluster

ClusterManagementModule

Canopy Training SeminarConfidential & Proprietary

Standard Point-to-Point Configuration

The standard Point-to-Point configuration is a 5.7GHz pair of Backhaul Modules used to deliver an Internet feed to a 5.2GHz AP Cluster.

5.2GHz

Network Connection

AC Feed

Backhaul Unit

Backhaul Unit

AC Feed

5.7GHz

Canopy Training SeminarConfidential & Proprietary

5.7 GHz Multipoint

In this configuration a 5.7 GHz access point cluster provides the network feed to multiple 5.2 GHz access point clusters via a 5.7GHz subscriber module with reflector dish assembly

5.2GHz

Network Connection

AC Feed

5.7 GHz Access Point Cluster

**Subscriber Module

AC Feed

5.7GHz

Canopy Training SeminarConfidential & Proprietary

• Delivers Superior Performance

• Is Designed to Mitigate RF Interference

• Gracefully Supports Growth From Islands to

Contiguous Coverage

• Offers a Better User Experience than Wired Broadband

Alternatives

Canopy’s Unique Characteristics

Canopy Training SeminarConfidential & Proprietary

"Canopy is the only fixed wireless solution that has the

range that you said it has.  We have one link that is 1.6

miles between the SM and the AP going through one tree

that we did not think would work when we were setting it

up, but it is working great!  One of my favorite parts of

Canopy is the simplicity of your network management and

WEB interface for set-up and monitoring. You have the

most customer friendly product in the industry."

John MillsFounder, Outback Telecom

Canopy Training SeminarConfidential & Proprietary

• Wireless Connectivity to the Internet via an Access Point (AP) Cluster

• Six AP Modules per AP Cluster, each serving up to 200 Subscriber Modules (SM) each

• Two Mile 5.2 GHz AP Cluster Radius

• 10 Mile 5.7 GHz AP Cluster Radius

• Effective Data Transfer Rates: ―>7 Mbps for Backhaul Module―>6 Mbps for Access Point Module―3-6 Mbps for a Single Subscriber

Module (Depending on Applications)

Superior Performance

Canopy Training SeminarConfidential & Proprietary

Canopy Interference Immunity

• Canopy Virtually Ignores External Interference– Canopy was optimized to ignore external interference– Every radio is factory tested to meet throughput at 3db C/I – Canopy nominal C/I performance is ~2 dB – Competitions C/I requirements are 8db – 25 db

• Canopy Does Not Create Destructive Self Interference– Canopy avoids self interference through precise GPS

synchronization – Cluster Management Module has GPS Receiver to deliver exact

synchronization signals to APs and BHs– AP Cluster can be put where capacity and/or coverage is

needed

Canopy Training SeminarConfidential & Proprietary

Non-Canopy scenario – Other wireless systems – with less interference toleranceand no directional antennas – experience lots of interference from other Access Points in the area. Only customers closest to the transmitting signal can expect good service ( green areas ).

Interference Immunity

Canopy Training SeminarConfidential & Proprietary

Non-Canopy scenario – Adding access points adds more signals andincreases interference. Good service is reduced (green areas).

Interference Immunity

Canopy Training SeminarConfidential & Proprietary

Canopy scenario – With its high interference tolerance and directional antennas on all access points, Canopy expands the areas that receive good service (green areas)and reduces areas experiencing interference (red areas).

Interference Immunity

Canopy Training SeminarConfidential & Proprietary

Canopy scenario – Because of Canopy’s high interference tolerance and directionalantennas, adding access points actually increases coverage and capacity.

Interference Immunity

Canopy Training SeminarConfidential & Proprietary

Canopy Security•Fundamentally, end-to-end security should extend beyond wireless

•Unique Air Interface

“Sniffer” Radios Don’t Exist – Chipset required

Fragmented, 64-bit data packets sent OTA

MAC protocol for Packet Assembly/Disassembly and retransmission is not published

•Bearer Channel Encryption

Single DES (Release 3)

AES (Authentication Server – Early Q4)

•Operation: Continuous Key Changes

BRAID (TIA Standard Used in Cell Phones)

–Key Distribution

–SM Authentication

Canopy Training SeminarConfidential & Proprietary

Authentication Server Features (Early Q4)•SM Authentication via 128 bit key

PTP key changed every 24 hours

Individual SM authentication, key management

Based on TIA standard BRAID

•Per SM bandwidth allocation

Sustained Rate

Burst Traffic

•Customer Platform

Linux based – Redundant Database

Authentication Server is NOT open source

Manageable via GUI or Telnet - Customer apps may be added

Built with redundant components

Canopy Training SeminarConfidential & Proprietary

Canopy is faster than any other ISP option your customer has. And we can prove it –

Speed Comparison

Canopy Training SeminarConfidential & Proprietary

Canopy is at least as fast as MMDS – and faster than all other

options.

Canopy is faster for downloads.Now, watch as 5 MB file downloads from server to PC.

*Download speeds based on typical dial-up, 58.8 modem, --- Actual speeds may vary.

Speed Comparison: Download

Canopy Training SeminarConfidential & Proprietary

There’s no contest - Canopy uploads faster than all other ISP options.

Canopy is faster for uploads.Watch how fast a 2.5 MB file uploads from a PC to a server, with typical speeds for each ISP option.*

*Upload speeds based on typical dial-up, 58.8 modem, --- Actual speeds may vary.

Speed Comparison: Upload

Canopy Training SeminarConfidential & Proprietary

Summary• The fixed wireless market is healthy and is expected to gain

considerable strength in the second half of 2002.

• Canopy is a highly cost-effective, superior performing, interference tolerant wireless broadband solution.

• Canopy leverages the technical knowledge and experience of Motorola and builds on your “trusted relationships” to enter new business opportunities and realize enhanced revenue streams.

• Canopy is an extremely versatile solution that offers new and unique opportunities for service providers of every kind.

• Canopy is well positioned to support private IP distribution networks for service providers, large enterprises, and municipalities

Canopy Training SeminarConfidential & Proprietary

Agenda

Welcome/Opening Comments

Canopy Product Overview

Competitive Landscape

Canopy Product Roadmap

Break

Building the Business Proposition

Creating the Buzz

Canopy Configurations

Breakout Sessions

Canopy Training SeminarConfidential & Proprietary

"I have tested and deployed most every 2.4 GHz and 5.8

GHz Fixed Wireless Access product in the industry and

Canopy is the best Point-to-Multipoint solution.  You

have the right combination of functionality, speed, and

price for the WISP operators targeting the SME and

residential markets.  I hope you are ready to handle the

success that is heading your way!"

Brian MagnusonPresident and CEO of

Cascade Networks

Canopy Training SeminarConfidential & Proprietary

Players in the Access Network Space

CableAT&T

Time WarnerComcast

MediaOne

WirelessMotorola

Western MultiplexSunstreamAlvarion

DSLBellSouth

QuestSBC

VerizonSatelliteStarbandHughes

CableAT&T

Time WarnerComcast

MediaOne

WirelessMotorola

Western MultiplexSunstreamAlvarion

DSLBellSouth

QuestSBC

VerizonSatelliteStarbandHughes

Canopy Training SeminarConfidential & Proprietary

Competitive Technology Summary

Notes 1) Subscriber expenditures include hardware and installation; Source: McKinsey and Bernstein analysis,CSO analysis

Technology Capital Cost per Sub. (2001/2005E)

Subscriber Expenditures

(2001/2005E)

Typical Bit Rate to User

Dial-Up N/A $200 56 Kbps

Cable Modem $208 - $196 $770/$280 >1.2Mbps

DSL $254/$204 $1,395/$487 384 Kbps – 1.5 Mbps

Fixed Wireless - MMDS $1000+ $1,150/$540 1-2 Mbps

Fixed Wireless - Meshed >$600 ~$2,000 300 Kbps

Fixed Wireless - Canopy

$625/$325 $535/$340 1-3 Mbps

Canopy Training SeminarConfidential & Proprietary

Un-licensed PMP Offerings

10 40 60

2.4

SunStream 5800BAS

WMUX Tsunami Multipoint5.8

5.3

GH

Z

SunStreamWestern Multiplex

AlvarionMotorola

BreezeAccessII

Canopy 5200 PMP

Effective Through Put (Mbps)

Lucent

RaylinkWave Wireless

CiscoTeltronics

YDI

Nokia Rooftop

Proxim

Zcomax

Adaptive Broadband

5 20

Canopy 5700 PMP

1

Canopy Training SeminarConfidential & Proprietary

5 GHz FWA PMP Competitive Assessment

Price Radio

Perfor-mance

Network

Management/Stability

Distribution

Channel and Support

Brand

Identity

Motorola/

CANOPY

Alvarion

(2.4 GHz)

Trango/ SunStream

Western Multiplex

(Tsunami -Multipoint)

Canopy Training SeminarConfidential & Proprietary

The Competition:Proxim

Competitor Markets Served

Technology Strengths Weaknesses

Proxim(Western Multiplex & Proxim)

Enterprise

Residentia

l

Campus

Backhaul

Last mile

• Fixed

Wireless

Access

(FWA) 2.4

GHz

5.8 GHz

(Tsunami)

• In-Building

5 GHz

(802.11a)

2.4 GHz

(802.11b)

Broad Portfolio

High Data Rates

And Carrier

Interfaces To T1,

E1, etc

Strong

Distribution And

Partner Program

Proxim Merger

Increases

Portfolio Into

Home Networking

Size/Weight

Of Last Mile

Technology

High Cost

No Cost-

Effective

CPE for FWA

Only High

End

Backhaul

Canopy Training SeminarConfidential & Proprietary

The Competition:Alvarion

Competitor Markets Served

Technology Strengths Weaknesses

Alvarion Residential

Campus

2.4, 2.5, 2.6,

3.5, 5.8 GHZ

Broad Portfolio

of PMP

Incumbent

Manufacturer

Respected By

WISP

Operators

Strong

Distribution

And Partner

Program

Multiple

Global

Markets

Only 2.4

GHz PMP in

US

Complexity

of Solution

Cost – More

Component

s

No PMP 5.8

GHz

Solution

Supply

Chain

Concerns

Canopy Training SeminarConfidential & Proprietary

The Competition:SunStream

Competitor Markets Served

Technology Strengths Weaknesses

Trango Wireless (AKA: Sunstream)

Campus

Backhaul

5.8 GHZ New Product Size

Lower Cost($2500 for AP, $795 for CPE)

Software Control for RF Power, Antenna Polarization

Wireless Experience and Associated Product Stability

Distribution Network

Brand Recognition

Canopy Training SeminarConfidential & Proprietary

The Leader in 5GHz PMP Access: Motorola

Competitor Markets Served

Technology Strengths Weaknesses

Motorola Cable DSL Satellite Single Family

Residential SOHO Municipalities Telemetry Backhaul Medium/Large

Businesses

• 5.3 GHz

• 5.8 GHz

Superior Product

Performance Product Size Lowest Costs Worldwide

Wireless

Experience Distribution

Channels Brand

Recognition Customization

Services Customer Service

New to

Market

Canopy Training SeminarConfidential & Proprietary

Canopy Competitive Positioning

• Product of Choice for the Small to Medium Enterprise (SME) and residential point to multipoint (PMP) in FWA applications at 5 GHz

• CANOPY products are aggressively priced while offering the advantages of operating at the less crowded 5 GHz bands

• CANOPY only player with 5.2 GHz and 5.7 GHz products– 5.7 GHz provides range for backhaul and long range PMP

– 5.2 GHz provides coverage and capacity for hotspots and cell splits

• CANOPY designed from the ground up to address the issues of private networks and WISPs operating in the unlicensed band

Canopy Training SeminarConfidential & Proprietary

Competition Summary

• Many Technology Alternatives– Fixed Wireless Access (FWA) is most attractive today in underserved markets– FWA attractive to service providers that need to extend their reach– Canopy is competitive with wired technologies in new deployments

• Canopy is the 5GHz FWA Leader– Lowest Cost– Integrated Solution (PMP and PTP)– Superior Performance– Brand Recognition– Superior Technology– Lowest cost of ownership

Canopy Training SeminarConfidential & Proprietary

Agenda

Welcome/Opening Comments

Canopy Product Overview

Competitive Landscape

Canopy Product Roadmap

Break

Building the Business Proposition

Creating the Buzz

Canopy Configurations

Breakout Sessions

Canopy Training SeminarConfidential & Proprietary

Committed Product Enhancements

• Software Release 3.0 – Available– DES, Improved Security of Telnet controls– Enables Authentication Server – 4Q ‘02– Individual Controls on Bandwidth Limit per user – 4Q ‘02

• 20 Mbps Backhaul – 4Q ‘02

• Software Release 4.0 – 2Q ‘03– All Control Access under Public Encryption– Full SNMP - Enables a higher level of unified network and customer

management– Private Network at the user’s end – NAT, VPN tunnel, user can’t see

other Canopy users– AES encryption option

Canopy Training SeminarConfidential & Proprietary

Standards

• 802.11a– This is a Local Area Network (100 foot range) architecture

– Canopy belongs in the Access or Local Loop (2 mile range) space

• 802.16– 802.16 is focused on the Access space, BUT it’s not yet mature

– We are now deeply involved

– We are committed to a strategy of bringing our expertise in the missing pieces (wireless and the middle layers) to the process

Canopy Training SeminarConfidential & Proprietary

What’s in the Future?

• Advanced architecture enabling 50 Mbps when appropriate, additional frequencies

• Of course lower cost, smaller size as volume and component technology maturation allow

• System/architecture features enabling simpler planning, lower system startup costs, and new applications

• Solutions (VoIP, Video Surveillance, in-building signal distribution)

Canopy Training SeminarConfidential & Proprietary

Agenda

Welcome/Opening Comments

Canopy Product Overview

Competitive Landscape

Canopy Product Roadmap

Break

Building the Business Proposition

Creating the Buzz

Canopy Configurations

Breakout Sessions

Canopy Training SeminarConfidential & Proprietary

Building the Business Proposition

• Why ISPs are becoming WISPs• Critical WISP business variables• WISPs service charge • WISP/municipality partnership• How CANOPY uniquely addresses the WISP

business case• WISP Business Case Tool

Canopy Training SeminarConfidential & Proprietary

Why are ISPs becoming WISPs

• Inability to meet demand for broadband services from existing subscribers

• Telco DSL resale costs don’t leave enough room for realistic ROI

• Subscribers have limited or no access to cable broadband systems

• Means to increase service area with better profit margins than dial-up and T-1

• Reduce operating costs by eliminating local loop

85% of the WISPs are also some type of IP Provider

Canopy Training SeminarConfidential & Proprietary

WISP Typical Cost of Operations

Operating Cost Component• Access & Backhaul• Customer Support• Equipment

– Radios– Antennas– Switches– Miscellaneous

• Tower Rights---------------------------------TOTAL TYPICAL COSTS

Typical Cost• $2,500 ($1,500 - $4,500)

• $6/Month ($3 - $10)

• $10,000/POP ($7,000 - $11,000)– $3,000 - $5,000/POP– $3,000 - $5,000/POP– $500 - $700/POP– $500/POP

• $1000/Month (0 - $7,000)---------------------------------$55,000/Year per POP

$200 - $250/subscriber (@200 Subs/POP)

Canopy Training SeminarConfidential & Proprietary

Residential Service Speeds and Pricing

Speed

Typical Monthly Subscription Fee

Average Installation Cost

128 Kbps $39($29 - $69)

$150($75 - $199)

256 Kbps(Most Popular)

$69($49 - $109)

$150($75 - $199)

512 Kbps $129($99 - $179)

$150($75 - $199)

Canopy Training SeminarConfidential & Proprietary

Business Service Speeds and Pricing

Speed

Typical Monthly Subscription Fee

Average Installation Cost

256 Kbps $129 $300

512 Kbps

(Most Popular)

$179 $450

768 Kbps $279 $600

1 Mbps $399 $600

1.5 Mbps $625 $600

2 Mbps $1,000 $600

Typical WISP Customer Split is 70% Business and 30% Residential

Canopy Training SeminarConfidential & Proprietary

Typical Cost of Customer Acquisition

• Residential Customer: $650– CPE: $500– Installation/Site Survey: $150 (1 truck roll)

• Business Customer:$1,050– CPE: $600– Installation/Site Survey $450 (2 truck rolls)

65% of WISPs build the CPE cost in to the access pricing and installation fees.

Canopy Training SeminarConfidential & Proprietary

Municipality Partnership Possibilities

• Motorola Conducted Primary Market Research With 30 Municipalities In the Chicago Metropolitan Area– Broad base of Interest by Municipalities to Sponsor a Wireless

Internet Service Provider in their Area.

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Survey Results

% Description

90% Were Interested In Competitive Broadband Solutions For Their Community

58% Were Most Interested In A FWA Alternative For Delivering IP Services To Residents, Businesses, And Municipal Agencies

73% Did Not Have Funding For This Alternative

65% Wanted To Sponsor A WISP And/Or Get Service From A WISP

73% Were Interested In Using This Alternative To Address The “Digital Divide”

44% Were Interested In Creating A Private, Local Community Only Site Linking Residents, Schools, Businesses, And Municipal Agencies

Canopy Training SeminarConfidential & Proprietary

CANOPY Features Address Key Drivers of WISP Success• Low total cost of ownership

– Lowest infrastructure cost at 5 GHz– Lowest cost per unit of customer bandwidth delivered– Speed of deployment

• Lightweight, single board design– Easiest to install – fewer truck rolls– Easiest to maintain– Best opportunity to see volume based price reductions

• Robust and reliable architecture– Reduces customer service demand– Reduces service calls

• Excellent rejection of interference– Solves top concern of existing WISPs– Addresses fears of new WISPs

Canopy Training SeminarConfidential & Proprietary

CANOPY Advantages

Operating Cost Component• Access & Backhaul• Customer Support• Equipment

– Radios– Antennas– Switches– Miscellaneous

• Tower Rights

CANOPY Advantage• Integrated BH unit• Reduced need• Fully Integrated

– Software defined– Integrated – TBD– TBD

• Light weight and small size sharply reduces costs

Canopy Training SeminarConfidential & Proprietary

Agenda

Welcome/Opening Comments

Canopy Product Overview

Competitive Landscape

Canopy Product Roadmap

Break

Building the Business Proposition

Creating the Buzz

Canopy Configurations

Breakout Sessions

Confidential & ProprietaryMOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other

product or service names are the property of their respective owners. © Motorola, Inc. 2002.

Place your image on top of this gray box.

If no graphic is applicable, delete gray box

and notch-out behind gray box, from

the Title Master

Marketing – The Buzz

Canopy Broadband Wireless Internet Training Seminar

Canopy Training SeminarConfidential & Proprietary

Today’s Discussion

• Marketing Communications Program

• Public Relations Program

• Canopy User Protected Web Site

Canopy Training SeminarConfidential & Proprietary

Marketing Communications

Vehicle ActivityCollateral • Success Stories – feature key successes on a regular basis

• Sales tools– Brochures/Data Sheets/Application Sheets

Events Program • Targeted conferences and exhibits throughout the year

Advertising • Banner advertising in key industry websites• Print campaign in targeted vertical publications

Sales Lead Generation • Robust, online sales lead generation system that provides qualified leads to authorized resellers

• Online tools to track and capture sales data to help you meet your sales objectives

• Direct mail programs to help enhance sales lead generation process

Internet • Robust, easy-to-use external web site• Secure extranet for all Canopy resellers

Canopy Training SeminarConfidential & Proprietary

Collateral

• Available Today– Technical publications

– Brochures and sales tools

– Authorized Reseller identity program

– Sales lead system

– Direct mail campaigns

• In Development– Case Studies

– Market Development Program

– Revised User Manuals

Canopy Training SeminarConfidential & Proprietary

Events Opportunities

Q2 2002• April

– Entelec– IWCE– NAMTSE

• June– WCA 2002

Q3 2002• August

– APCO– WISP.X

• September– Wireless Hot Spots

Q1 2003• February

– SuperNET 2003– ExpoComm – Broadband Wireless

World– Americas Telecom

• March– CTIA Wireless 2003

Canopy Training SeminarConfidential & Proprietary

Advertising Schedule

Publication / Date Size3 10 17 24 1 8 15 22 29 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 2 9 16 23 30

Wireless Broadband Magazine 1/2 4C

Broadband Wireless Online 120x60 Banner

Broadband Wireless Weekly 468x60 Banner

Broadband Wireless Exchange Banner

Total Space Cost

Events

WC

A

WIS

P.X

Ho

t S

po

ts

June July Aug Sept Oct Nov Dec

12-Jul 18-Nov6-Sep

Canopy ½ page – 4 Color Print Ad

Canopy Banner Ad

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Public Relations

Vehicle ActivityPublic Relations • Build key media relationships

• Build Momentum by releasing follow up press releases on a timely basis

–Application Stories–Success Stories–New Capabilities –New Product Enhancements

Analyst Relations • Continue to build relationships with key analysts in order to increase awareness and build preference for solution

You can help by sending us newsworthy events, activities and tidbits!

Canopy Training SeminarConfidential & Proprietary

Sales Lead System

• Support the sales process with qualified sales leads and robust tracking/reporting system

• Provide real-time marketing program effectiveness information

• Assist in evaluation of sales cycle length and identification of best markets

• Create a positive first impression with customers by fulfilling collateral requests and distributing sales leads within 24 hours

Canopy Training SeminarConfidential & Proprietary

Protected Customer Website

Canopy Training SeminarConfidential & Proprietary

Authorized Reseller/Canopy Customer Page Entry

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Maintaining the Excitement

We’ve created quite a flurry in the marketplace and we need your help to continue that momentum

– Sales Lead follow-up/Online system

– News, news, news– Hot events and conferences

Canopy Training SeminarConfidential & Proprietary

Agenda

Welcome/Opening Comments

Canopy Product Overview

Competitive Landscape

Canopy Product Roadmap

Break

Building the Business Proposition

Creating the Buzz

Canopy Configurations

Breakout Sessions

Confidential & ProprietaryMOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other

product or service names are the property of their respective owners. © Motorola, Inc. 2002.

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the Title Master

Configuring A Canopy System

Tony Sarallo

Canopy Broadband Wireless Internet Training Seminar

Add Pictures

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Configuring a Canopy System

• Point to Point (5.7 GHz)– Backhaul Module– Reflector Kit

• Point to Multi-Point (5.2 GHz and 5.7 GHz)– AP Cluster– Cluster Management Module– Subscriber Module– Subscriber Module with Reflector

Please refer to the Canopy Configuration Guide for detailed information on Canopy components and configuration

guidelines

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Canopy Core Components

Product5200AP/5700AP Access Point Module

5200SM/5700SM Subscriber Module

5700BHMRF/5700BHSRF Backhaul Module (with 27RD)

27RD Reflector Kit

1008CK Cluster Management Module

SMMB1 Universal Mounting Bracket

300SS Surge Suppressor

ACPS110 Single Module Power Supply

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Canopy Point to Point System

• Single Point to Point Link

• Multiple Point to Point Links

• When is the CMM required?

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Single 5.7 GHZ Backhaul Link• (1) 5700BHMRF 5.7 GHZ Backhaul Master

•One 5.7 GHz BH Module pre-configured as Master•One 27RD Reflector Kit

• (1) 5700BHSRF 5.7 GHZ Backhaul Slave•One 5.7 GHz BH Module pre-configured as Slave•One 27RD Reflector Kit

• (2) ACPS110 Single Module Power Supply1

• (2) 300SS Surge Suppressor1

1 Only one 300SS and ACPS110 needed if BH Module used with CMM

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Multiple Backhaul Links

5.2GHz

Network Connection

AC Feed

5.7 GHz BH(Timing Slave)

5.7GHz5.7GHz

CMM

AC Feed

5.7 GHz BH(Timing Slave)

AC Feed

5.7 GHz BH (Timing Masters)

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Multiple Backhaul Links at a Single Location

• Synchronize timing of all BH Modules to avoid system self interference

• Use the Cluster Configuration Module to power the BH Module(s) and provide GPS timing synchronization

• The BH Modules with the CMM are the timing masters for each link

• Always use the Reflector Kits and Frequency re-use to maximize BH Module interference immunity

Canopy Training SeminarConfidential & Proprietary

Canopy Point to Multipoint System

Subscriber Modules

Network Connection

360 Degree Coverage

60 DegreeCoverage Wedge

GPS AntennaGPS ReceiverHardened Ethernet SwitchPower Supply

Cluster ManagementModule (CMM)

Up to 2 Miles

Power Supply

1 to 6 Units

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Access Point Cluster

• 1008CK - Cluster Management Module (CMM)– Outdoor Enclosure– Power Supply (Input is 24VDC, 110 VAC or 220 VAC)– Hardened Ethernet Switch (Eight Inputs)– AP Timing Synchronization (GPS receiver and antenna)– AP Power Insertion Board

• One to Six AP Modules (5.2 GHZ or 5.7 GHZ)

• Up to Two Backhaul Modules (5.7 GHz)

• Up to One Surge Suppressor

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Subscriber Modules

• 5.2 GHZ or 5.7 GHZ– 5700SM– 5200SM

• Customer Premise Equipment Requirements• One 5200SM or 5700SM• One ACPS110• One 300SS• One SMMB1• Optional 27RD for 5700SM

AC Adapter

Ethernet Cable

CANOPY SM

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Subscriber Module Options

SM (5200SM and 5700SM) with Internal Antenna – 2 mile range – LOS– 3.6 Mbps Effective Throughput– ~20-25 ms round trip latency

• SM (5700SM) with Reflector Kit (27RD)– Up to 10 mile range – LOS– 3.6 Mbps Effective Throughput– ~20-25 ms round trip latency

Canopy Training SeminarConfidential & Proprietary

Canopy AP

Canopy SM

Canopy SM

Repeater

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TK10001 - 30 Starter Kit

• 30 Starter Kit– (6) 5200AP Access Point Modules– (1) 5.7 GHZ Backhaul Link which comprises

• 5700BHMRF 5.7 GHZ Backhaul Master with a 27RD reflector Kit• 5700BHSRF 5.7 GHZ Backhaul Slave with a 27RD reflector Kit

– (30) 5200SM 5.2 GHZ Subscriber Modules– (1) 1008CK Cluster Management Module– (32) 300SS Surge Suppressors– (32) ACPS110 Single Module Power Supplies– (1) CAT 5 Cable Tester

Modify

Canopy Training SeminarConfidential & Proprietary

Canopy Installation Cables

• Canopy™ is a wireless broadband system requiring UV protected cables that are designed for use outdoors in temperature ranges between -30° C to +55° C.

• Motorola has designated Best-Tronics Manufacturing as an authorized dealer of cables that meet our specifications.

• Visit their website at www.best-tronics.com/motorola to take advantage of their aggressive pricing, custom cable lengths and 1-day order turnaround.

Canopy Training SeminarConfidential & Proprietary

Agenda

Welcome/Opening Comments

Canopy Product Overview

Competitive Landscape

Canopy Product Roadmap

Break

Building the Business Proposition

Creating the Buzz

Canopy Configurations

Breakout Sessions