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©2004 Axesstel, Inc.

Advantages of FixedWireless and FMC forthe CDMA 450 MHzBand

CDMA450 Workshop6 June 2006Hanoi, VietnamConnecting The World Now

Lixin ChengChief Sales Officer,President Fixed Wireless Group


Agenda

• Global Market Opportunity

• Advantages of Fixed Wireless & Convergence

• Successful Business Models & Marketing

• Broadband Fixed Wireless Applications

• Axesstel Solutions & Advantages


Global Market Opportunities forFixed Wireless & Broadband


Global Market Opportunity

Current Markets & Products

Incr

eas e

usa

ge

Increase Penetration

Revenues &Value Chains

Users2 billion 6 billion

Create New Markets- Low penetration/high growth potential- Focus on cost reduction- Broaden distribution channels

80% of the world’spopulation is NOTconnected at all!

Innovate in Industrialized Markets- New service concepts / business models- Convergence of Voice/Data, Wireless/Wire-line, WWAN/WLAN- Focus on revenues and future growth


Global Market Opportunity• 3.2 billion mobile subscriber by 2010 (EMC, 06/05)

• Telephone penetration is < 5% in developing countries

• 3.5 billion people live in developing countries

• Fast-growing emerging countries rapidly deploying fixed wireless

• Rural and urban areas in developing countries under-penetrated

• India, China, Brazil, Pakistan and Russia are fastest growing markets

• Governments realize need for universal voice & data service to fueleconomic & social growth

• High saturation in mobile voice drives broadband network deployments

• Operators looking to increase ARPU, retain customers and increasesubscriber base

• North America and EMEA operators leveraging existing networkdeployment to migrate landline subscribers and capture more markets

• Broadband data offers superior alternative to dial-up, ISDN and DSLland-line options

• Fixed mobile convergence allows operators to build market share


Advantages of Fixed Wireless for450 Networks


Advantages of Fixed Wireless

• Fewer cell sites cover a broader area

• Less deployment and maintenancecosts than costly copper or cable

• Quicker to deploy and easier set-up

• Large scale nationwide deployment notrequired

• Greater scalability for serviceenhancements; simplified cell planning


Advantages of Convergence for450 MHz Networks

WirelessLAN

Internet

PSTNCDMA

1X / EVDO

Local AreaNetwork


Advantages of Convergence

• Offset declining voice revenue withhigher margin data services

• Capture voice and data market sharefrom landline competitors

• Reduce CapEx by leveraging existingnetwork deployment to increase subs

• Complete solution for residential,SOHO and commercial markets

• Simplify activation & set up


Successful Fixed WirelessBusiness Models & Applications


Successful Business ModelsSuccessful Operators• TATA Teleservices (India)• TeleCard (Pakistan)• Telefonica (Latin America)• STl (Indonesia)

Business Model• Customer pays for

service (activation fee)• Operator provides

phone as part of service;customer does NOTpick phone

• Operator owns phone• Monthly service fee

charged• Operator manages

inventory• Operator works with

phone suppliers fordesigns next generationof phones

Customer Characteristics• Customer expects “fixed-line”

level of service• Customer perceives service

provided by operator, includingphone!

• Long term customer use of phone,unlike mobile phone!

• Customer may not understandphone quality and reliability issues


Successful Pricing Plans

$49/mo data onlyNoneContract for 2years

EV-DO

Telefonica Guatemala

Various –based on call connectivity

~ Rps $12,900~ US $100

LeaseRps $300 toRps $500 permonth

CDMA 1X

Suntel(Sri Lanka)

Post Paid ProgramsRps $149 – Rps $1999US $2.70 – US $36.35Pre-Paid Programs(starting at Rps 149)

~ Rps $5200~ US $95

BuyCDMA 1X

TeleCard(Pakistan)

Rps $149 – Rps $349US $3.30 – US $7.75

~ Rps $4500~ US $100(deposit for thephone)

Lease(Rps 149 toRps 349)

CDMA 1X

Tata Indicom(India)

Minimum MonthlyCharges

Cost ofActivation

Phone(Lease/Buy)

NetworkCarrier


Successful Marketing Programs


Fixed Wireless and ConvergedBroadband Solutions


Axesstel’s Vision

Axesstel is committed tobringing high quality fixedwireless communication

solutions to people worldwidewhile providing value to ourcustomers, rewards to our

employees and returns to ourshareholders.


• CDMA2000 1X Voice• 2 way SMS• Hands-Free Dialing• 3 line LCD (1 icon line)• Dust-Resistant Keypad

Durable Fixed WirelessDesktop PhonesL450 (450 MHz)L800 (800 MHz)L1900 (1900 MHz)

Available Now

• CDMA2000 1X Voice / MSM 5010• 3-Line Character LCD (1 icon line)• PCO Software (customized)• Metering Message Recognition /• Real-time Calling Unit Display• Receipt Print Through Serial Printer

PCO Fixed WirelessDesktop PhonesAXW-P450PCO (450 MHz)AXW-P800PCO (800 MHz)AXW-P1900PCO (1900 MHz)

Available Now

• CDMA2000 1X Voice and Data / MSM5105• 2-Way SMS• Hands Free Dialing and Talking• 3-Line Character LCD (1 icon line)• Backlit LCD and Keypad• RUIM (AXW-P450R only)

Standard Fixed WirelessDesktop PhonesAXW-P450(R) (450 MHz)AXW-P800(R) (800 MHz)AXW-P1900(R) (1900 MHz)

• CDMA2000 1X Voice and Data• 2-Way SMS• Hands Free Dialing and Talking• Graphic Display• Backlit LCD and Keypad• Optional RUIM

Enhanced Fixed WirelessDesktop PhonesP480 (450 MHz)P830 (800 MHz)P1930 (1900 MHz)

AvailabilityKey FeaturesModel NamesModels

4 Product Lines and 31 Models!

NEW!Available

Now

NEW!Available

Now


• CDMA2000 1xEV-DO Data Rev A (3.1 Mbps)• CDMA2000 1X Voice• Wi-Fi (802.11b/g) Router• Analog Fax (IS-707 A.4 & A.7)• Four Port Ethernet (RJ-45) Switch• USB & RJ-11 Ports (4 REN)• Receive Diversity, Wi-Fi & GPS Antennas

EV-DO Rev A GatewaysMV410 (450 MHz)MV420 (800 MHz)MV430 (1900 MHz)MV440 (800/1900 MHz)

• CDMA2000 1xEV-DO Data (2.4 Mbps)• CDMA2000 1X Voice• Wi-Fi (802.11b/g) Router• Analog Fax (IS-707 A.4 & A.7)• Four Port Ethernet (RJ-45) Switch• USB & RJ-11 Ports (4 REN)• Receive Diversity, Wi-Fi & GPS Antennas

EV-DO GatewaysMV310 (450 MHz)MV320 (800 MHz)MV330 (1900 MHz)MV340 (800/1900 MHz)

AvailableNow

• CDMA2000 1xEV-DO Data / MSM 6500• Support Ethernet (RJ-45) & USB Connection• RX Diversity with Built-in DHCP• Web Administration

Fixed Wireless Broadband ModemsAXW-D450 (450 MHz)AXW-D800 (800 MHz)AXW-D1900 (1900 MHz)

AvailableNow

• CDMA2000 1X Voice & Data / MSM 5105• Meter Pulse Generation for Payphone• Optional Analog Fax• RUIM Capable (AXW-T450R only)

Fixed Wireless TerminalsAXW-T450(R) (450 MHz)AXW-T800(R) (800 MHz)AXW-T1900(R) (1900 MHz)

• CDMA2000 1xEV-DO Data / MSM 6500• CDMA2000 1X Voice• Analog Fax• Dual Band for Networks Worldwide• Plug and Play Ethernet (RJ-45) and USB• Receive Diversity & Web Administration

Fixed Wireless BroadbandModems w/Voice & FaxD450A (450 MHz)D800A (800 MHz)D1900A (1900 MHz)D8190A (800/1900 MHz)

AvailabilityKey FeaturesModel NamesModels

4 Product Lines and 31 Models!

NEW!Available

Now

NEW!Available

Q3 06

NEW!Available

Q4 06


New Fixed Wireless Products• NEW: D8190A 1xEV-DO Broadband Voice & Data Modem

Internet, Email, and Multi-Media StreamingVoice Calling on CDMA 1XSend and Receive FacsimilesWorldwide Dual Band 800/1900 MHzPlug-And-Play Ethernet ConnectionUSB or Ethernet Directly to PCLandline Phone, Cable/DSL DisplacementResidential, SOHO, Enterprise

• NEW: L450 Fixed Wireless Desktop Phones450 MHz BandLow Cost for Entry Level CustomersQuality Voice Calling and 2-Way SMSRugged, Dust Resistant DesignMembrane Keypad1 Icon Line and 2 Character Line DisplayLi-Ion Back-up Battery


New MV300 Series 3G Gateways• Coming Soon: EV-DO Gateways

Integrated 3G Data, Voice, Fax and Wi-Fi Networking Gateway

Wi-Fi Router for Easy Hotspot SetupEmail, Internet & Multi-Media

Streaming (Up to 2.4 or 3.1 Mbps)Voice Calling on CDMA2000 1XSend and Receive FacsimilesNetwork Multiple Desktop & Laptops

with 4 Port Ethernet SwitchCompatible with other LANs/WLANs for

expanded networkingWorldwide Dual Band 800/1900 MHzUp to 4 Landline Phones or Fax MachinesReceive diversity for maximum data throughputBackup Battery for uninterrupted connectivityE911 Support with gpsOne®Cable/DSL and Landline Voice ReplacementResidential, SOHO, Enterprise, Retail, Commercial,Vertical Markets

WirelessLAN

Local Area Network

Internet

PSTNCDMA

1X / EVDO


Broadband ApplicationsDSL/Cable

Replacement

WiFiHotspot

Small Office /Home Office

EmergencyResponseHotspot

PublicTransportation

HotspotLAN

Networking

Mobile WorkStation


Axesstel Global Customer Base


Customer Satisfaction

"Affordable, reliable and practical Axesstelterminals are enabling growing numbers ofPakistanis, some of whom have never useda telephone before, to contact friends andfamily members and conduct businessmore effectively."

Javaid FirozChief Executive OfficerTeleCard

“Axesstel has proven to be an invaluablepartner by designing these new innovativeproducts quickly to meet our uniquemarket needs in support of our newservice launch.”

Darryl GreenCEOTata Teleservices


Axesstel Advantage

• More than 2 million phones deployed worldwide• Broadest fixed wireless portfolio & technology platforms• Focused on fixed wireless, broadband and convergence• Responsive to market demand and quick to market with

quality reliable products• Focused on RF link integrity

– Axesstel sensitivity @ -105 dBm– Competing products @ -86~-89 dBm

• Global Certified Deployments

16 ~ 20 db!!!


Axesstel Advantage

EV-DO Modem Data Speed Comparison Test

0

200

400

600

800

1000

1200

Data

Rate

Kbps

Axesstel

Competitor

Axesstel 681 1014

Competitor 250 820

Weak Signal Area Strong Signal Area

IncreasedData Rate2.7 Times


Key Messages

• Great global opportunity to capture market share in fast-growing, emerging countries

• Data, Voice, WWAN, and WLAN convergence drivehigher margin revenue

• Fixed wireless is quick & easy, cost effective, scalableand maximizes network usage

• Successful business model - operator owns device andoffers competitive monthly tariffs

• Axesstel offers the highest quality products, broadestfixed wireless product portfolio and leverages the widestrange of technology platforms


Thank you very much

connecting the world now hanoi, vietnam€¦ · connecting the world now hanoi, vietnam lixin cheng...

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