May 2000

Deploying the OptimalDeploying the OptimalBWA ArchitectureBWA Architecture

PTP vs. PTMPPTP vs. PTMP

Broadband Wireless

World Forum 2001

Rami HadarRami HadarExecutive Vice PresidentExecutive Vice PresidentMarketing & Business DevelopmentMarketing & Business Development

Point to PointPoint to Point

Star ConfigurationStar Configuration

Ring ConfigurationRing Configuration

Point to PointPoint to Point

Advantages Proven Technology High Capacity Lower Up-front Investment

Disadvantages Dedicated bandwidth to a single location . Star configuration: emulates PMP, but antenna

placement becomes an issue and business case fails after 8-10 links

Ring configuration: emulates a fiber ring. Adding new nodes takes 3 building climbs

2 x #subscribers network componentsOptimal for high bandwidth to aOptimal for high bandwidth to a single location single location

Point to Multipoint ConfigurationPoint to Multipoint Configuration

Advantages Real-time allocation of bandwidth based on user

demand Oversubscribe equipment and frequency = Lower

CapEx Central base stations aggregates & concentrates

traffic from many subscribers. Smaller hub roof space used No need for external concentration device Roof climbs = # subscribers + 1

# of subscribers +1 network elements

Disadvantages Higher upfront cost than PTP Bandwidth to a single building < 45Mbps

Point to MultipointPoint to Multipoint

Optimal access method to small and Optimal access method to small and medium sized buildingsmedium sized buildings

Cost Comparisons: CapExCost Comparisons: CapEx CapEx Required to deliver identical Services/Revenue

Point to Point (based on industry averages)

Equipment DS3 Radio: $20,000 IAD (needed for each link): $5,000 ATM Switch (needed for each “Hub” Building): $30,000

Install Each link (two buildings, cover ATM as well): $10,000

Point to Multipoint (based on industry averages)

Equipment Base Station: $200,000 CPE: $6,750 ADM (needed for Fiber Connection) : $15,000

Install Base Station: $20,000 CPE: $5,000

Confidential and Proprietary

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$100.0

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1 3 5 7 9 11 13 15 17 19

Building On-Net (Links)

Co

st (

Th

ou

san

ds)

Point to Point Point to MultiPoint

CapEx Cost CurveCapEx Cost Curve

9 Link Cross9 Link CrossOver PointOver Point

Semi-Urban Mid Size CitySemi-Urban Mid Size City

Cell Coverage: 150 km2 Rain Region: D Population: 380,000 117 buildings* with 25,000 ft2 or

more (requiring >3Mbps Access ) Average of 4 Business per

Building 9% Penetration Rate of

Addressable Market (Businesses) by the End of year 3

Average 2 ports per customer 5% price decline every year 10% customer churn rate

30 Buildings Serviced by end of year 3

Confidential and Proprietary

* U.S. Department of Energy

Year 1 Year 2 Year 3 TotalBuildings Added 15 5 10 30

PTP* $585,000 $175,000 $380,000 $1,140,000

PTMP $400,000 $60,000 $120,000 $580,000

Large Urban DowntownLarge Urban Downtown

Multiple Cell coverage: 500 km2 Rain Region: N Population: 14,000,000 1250 buildings averaging 50,000 ft2 or more (requiring 4 Mbps

of Bandwidth or more) Average of 20 Business per Building 6% Penetration Rate of Addressable Market (Businesses) by

the End of Year 3 Average 1 ports per customer 10% price decline every year 10% customer churn rate

306 Buildings Serviced by end of year 3

Confidential and Proprietary

* United Nations/Private Commercial Study

Year 1 Year 2 Year 3 Total

Buildings Added 136 119 51 306

PTP* $5.1M $4.5M $1.9M $11.5M

PTMP $4.2M $0.2M $0.1M $4.5M

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1215182124

1 3 5 7 9 11 13 15 17 19 21 23

Months

Num

ber

of Bld

s O

n-N

et

Semi-Urban Mid-Size City Suburban Office ParkLarge Urban Downtown

Buildings On-Net by MonthBuildings On-Net by Month

9 Link Cross9 Link CrossOver PointOver Point

DSL, Cable Modem, MMDS2 Mbs

10 Mbs

20 Mbs

45 Mbs

155 Mbs

Point-Multipoint BWA

Point-Point BWA

Fiber

BWA: Filling the Gap Between Copper & FiberBWA: Filling the Gap Between Copper & Fiber

BandwidthBandwidth DensityDensity

HighHigh

MediuMediumm

LowLow