i4wifi-2014-report-telco-en.pdf

i4wifi a.s.

Telecommunication Products2014 Distribution Report

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Content

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1. About company i4wifi 3

2. i4wifi as value added distributor 5

3. Kind o distriubution business in 2014 9

4. Customers of i4wifi 11

5. Historical revenues 13

6. Brand share in 2014 16

7. Summary of the year 2014 23

8. Contacts 26

Company i4wifi a.s.

Joint-stock company

Annual turnover about USD 23 million.

Specialized in wireless solutions and networking components industry.

Business activities were launched in 1994 as a private business company.

Leading wireless component supplierin the Czech Republic since 2002

Value added distributor


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Corporate philosophy and people"The one whose main goal is the financial profit, can never be successful."


Number of employees is still increasing from 21 in year 2007 to 34 in 2014 work in Sales, Technical (R&D), Warehouse, Accountant and IT departments

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Warehouse Over 40,000 packages dispatched, of that

100% as same-day dispatch in the 2014

500 packeges total capacity per day

New and safety warehouse

3,800 sq m of warehouse space


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Value added distributor - trainings i4wifi has certified trainers for Mikrotik and Ubiquiti products

Over 4000 specialists in Ubiquiti and Mikrotik RouterOS trainings from i4wifi training center

Other specialized trainings for solar technologies


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Value added distributor - support

8 technicians support our customers everyday

About 30 technical questions are solved each day

Special support for RouterOS, AirOS and Power technologies


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Value added distributor - Exhibitions

MUM Mikrotik User Meeting. MUM is biggistmeeting of Corporate network engineers, ISP and companies with MikroTik related products and services. i4wifi attends the MUM as exhibitor.

AWC AirMax World Conference. Ubiquiti conferences around the world training and advising professionals on how they can optimize their networks with the revolutionary AirMax system. i4wifi nevermissed as exhibitor.

Mikroexpo - Meeting of czech WISP about using not only RouterOS. i4wifi attends each Mikroexpo as speaker.


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Distribution Business in 2014There are 2 major lines of business:

Telecommunication products (TELCO)

Solar power, power storage, electro mobility - EV, accessories (POWER)

Following report focused on the TELCO products


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Main Brands in DistributionUbiquiti Networks (USA), producer of 2,4Ghz, 5GHz, 10GHz and 24GHz hardware known for its reliability and effectivity fit to any network. Frombackhaul Point-to-Point 24GHz (airFiber), EdgeMAX routers and switches, UniFi enterprise solutions to simple 2,4GHz local AP/CPE

MikroTik (Latvia) and their powerful operating system RouterOS installed on all RouterBoards. Offering unmatched configuration options and customatization. Very popular choice of ISP in Czech and Slovak.

TP-LINK and LB-LINK (China) both produce the SOHO Wi-Fi routers, Swithes,

modems and other customer electronic solutions. Brands are most popularin Czech Republic


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CustomersWe have a customer base containing about 1200European providers of internet services (ISP), resellers and other IT infrastructure providers. Another 500 customers who we support by our products and knowledge in their special projects and 40 000+ regular customers


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Key Figures of 2014 i4wifi BusinessTotal revenue: USD 22.976 million

7 % increase of revenue over 2013

51% increase of revenue over 2011

Total amount of units sold: 566,120(of that 465,072 items and 101,048 m of wires)

Over 40,000 packages dispatched, of that 100% as same-day dispatch


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Revenues Show Steady Growth


Primarily due to increase in volume of goods sold

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Seasonal Characteristics


The distribution business tends to peak in spring and fall primarily due to TELCO outdoor units, where the demand has strong seasonal characteristics

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Revenue by Business Line


Telco revenues of USD 10,527 thousand, accounting for 51% of total 2014 revenues represent a major and stable line of business. Further analysis of Telco business line follows. Part Services includes trainings, shipping, storing and other services

TELCO; 51%POWER; 46%

Services; 3%

% of Total Revenue

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Telco Share by Brand - Wireless


Wireless market is dominated by two leading competitors brands, UBIQUITI specializing in high-speed TDMA AirMax technology and MIKROTIK specializing in router operating systems. They together account for 80% of total market share. TP-LINK/LB-LINK specializes in small office/home office wireless solutions.

UBIQUITI; 60%MIKROTIK; 20%

TP-LINK/LB-LINK; 7%

GWL/Power; 4%

WaveRF; 3%

Other; 6%

% of Revenue

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UBIQUITI Products by Revenue


Four best/selling UBIQUITI products account for 70% of total brand revenue followed by other products, such as UniFi AC, airFiber AF5 and Rocket M5 in the top UBIQUITI best-sellers.

NanoStation M5; 14%

Loco M5; 13%

PowerBeam M5 300; 9%

AirFiber AF24; 9%

PowerBridge M10; 8%

PowerBeam M5 400; 6%

UniFi 3pack; 4%

UniFi Pro; 3%

AirGrid M5 23; 2%

ToughSwitch 8 Pro; 2%

Others; 30%

Ubiquiti Products Share by Revenue

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MIKROTIK Products by Revenue


MIKROTIK product portfolio includes wide range of variants of individual models. The #1 product, accounting for 22% of revenues, is RouterBoard SXT Lite5 (#1 in 2012 with 10% share of revenues)

RBSXT5NDR2; 20%

RB911G-5HPnD; 4%

RB951Ui-2HnD; 3%

RBSXT5HPND; 3%

CCR1036-12G-4S; 3%

CCR1016-12G; 3%

RB435G; 3%

RB951G-2HnD; 3%

R52N-M; 3%

RB2011UiAS-2HnD-IN; 2%

Others; 54%

Mikrotik Products Share by Revenue

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TP-LINK/LB-LINK Products by Revenue


TP-LINK and LB-LINK products include mainly home office routers, WDM fiber media converter and variants of the individual models shown in other category.

TL-WR740N; 21%

TL-WR841N; 16%

TL-WR741ND; 12%

TL-WR841ND ; 4%

TL-SG5428; 4%

TL-SG3424; 3%BL-WR2000; 2%

TL-WR720N; 2%

MC112CS; 2%

TL-SF1008D; 2%

Other; 32%

TP-LINK/LB-LINK Products Share by Revenue

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Telco Bestsellers in 2014


The most sold products are NanoStation Loco M5 (ranking #1 in 2012 and 2013) followed by NanoStation M5 AirMax (#2), TP-Link WR740N Router (#3) and most favorit CPE made by Mikrotik RouterBoard SXT Lite5 (#4).

0

2000

4000

6000

8000

10000

12000

14000

16000Ubiquiti Loco M5

Ubiquiti NanoStation M5

TP-LINK TL-WR740N

Mikrotik RB SXT Lite5

Ubiquiti PowerBeam M5 300

TP-LINK TL-WR841N

TP-LINK TL-WR741ND

Ubiquiti PowerBeam M5 400

Ubiquiti AirGrid M5 23

Ubiquiti Rocket M5

Ubiquiti UniFi

Mikrotik RB911G-5HPnD

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Telco Revenue by Product Type


Average selling price for selected products were USD 63,5 per 802.11a/nunit (+2% from 2013), USD 404 per Backhaul links (-17% due to newcheaper products) USD 82,6 per Mikrotik Router Board (+11% due to Cloud Core Router series) and USD 34,8 per 802.11b/g/n unit (+12%, partly due to new, more expensive models sold and due to currency variations)

Category Units Revenue [USD]Average Unit

Price

802.11a/n 67242 $4 270 131 $63,50

Backhaul links 3009 $1 216 257 $404,21

802.11bgn 34065 $1 185 069 $34,79

Mikrotik RouterBoards 13389 $1 105 433 $82,56

Active wired components 10721 $606 119 $56,54

5 GHz antennas 4651 $426 608 $ 91,72

LED lighting 49332 $417 843 $8,47

802.11ac 1738 $346 223 $199,21

IP cameras and recorders 1730 $279 654 $161,65

Other 230874 $673 106 $2,92 21

Telco Revenue by Product Type


Wireless popular complete outdoor units in 802.11a/n category account for 41% of total Telco revenue, supplemented by Backhaullinks (12%) and 802.11b/g/n (11%) as other leading products

802.11a/n; 41%

Backbone links; 12%802.11bgn; 11%

Mikrotik RouterBoards; 11%

Active wired components; 6%

5 GHz antennas; 4%

LED lighting; 4%

802.11ac; 3%

IP cameras and recorders; 3%

Other; 6%

% OF REVENUE

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Wireless Products - Summary


In 2014 unit sales price of telecommunication products further increased because of CZK/USD Exchange rate increasing.

On the other hand, price of Backhaul links further decrease because of wider variety of products.

In 2014, products supporting the latest Wi-Fi platform 802.11ac started favorite in WISP networks. Those products, namely Ubiquiti UniFi, Mikrotik RouterBoards AP/CPE and Ubiquiti PowerBeam and Rocket. 23

Doing Business with i4wifi in 2015


We are among the TOP 100 leading IT companies in Czech and obtain the CEKIA Stability Award evaluate the stability of company. We were awarded by the highestgrade AAA means excellent stability which has only 2% of Czech companies.

For end users of wireless connection services in the Czech Republic and Slovakia, we operate an on-line service showing a list of ISPs available for a selected ZIP code. Our business partners (ISPs) are promoted through this service.

We offer wide range of trainings, technical supportmarketing and storing services.

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Looking into the Future


We see opportunities in wireless communication of M2M systems, smart houses, security systems and increasing of using ISM bands by improved technologies like 802.11ac and TDMA systems.

Our goal for 2015 is to continue with education of our and new customers and provide more help when customer need it. We also expect steady growt of our business activities.

We invite you to cooperate with us in distribution of your products, utilizing our key competences, quality commitment and dedication to customer service. 25

Contact Us for More Information


i4wifi a.s.Prumyslova 11102 00 Praha 10Czech Republic EU

Phone: +420 277 007 500

Fax: +420 277 007 529Mail: [email protected]: i4wifi-export

http://www.i4wifi.euOur sales and technical departmentsare ready for you.

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i4wifi-2014-report-telco-en.pdf

Documents

company i4wifi

customers of i4wifi

distributor trainings

i4wifi training center

mikrotik routeros trainings

distributor support

private business company

ubiquiti products