NEOTECNEOTEC

José Luiz N. Frauendorf June, 2001

BRAZILIAN MMDS OPERATORS ASSOCIATIONBRAZILIAN MMDS OPERATORS ASSOCIATION

WHAT IS MMDS ?WHAT IS MMDS ?

NEOTEC

MULTIPOINT MULTICHANNEL

DISTRIBUTION SYSTEM

MMDS SPECTRUM

UP-STREAM (MDS)

DOWN-STREAM (MMDS)31 Channels - 6MHz

NEOTEC

BAND ALLOCATION

0

100

200

300

400

500

600

FM Off- AirTV

850 MHz 930 MHz 1.9 GHz 1.9 GHz 2.5 GHz 3.5 GHz 3.9 GHz 10.5 GHz 15 GHz 21 GHz 23 GHz 28 GHz

Ban

dw

idth

per

Lic

en

see (

MH

z)

Cellular PagingPCS N

MMDS

FWA

Point-Multipoint

Point-PointPoint-Point

Point-Point

LMDS

PCS W

C Band

SPECTRUM ATRACTION

FM

Off Air TV

MMDS

* C Band

LMDS10.5 GHz

Cellular

PCS W

FWA

15 G

Hz

21 G

Hz

23 G

Hz

Paging

PCS N

BAND WIDTH x ATTENUATION

MMDS STRENGTHMMDS STRENGTH

• Lower cost than cableLower cost than cable

• Investment only at customer’s premiseInvestment only at customer’s premise

• Fast to implementFast to implement

• Reliable - protected spectrumReliable - protected spectrum

• Ideal for small and medium marketsIdeal for small and medium markets

• Convergent Technology (video, voice and data)Convergent Technology (video, voice and data)

• Benefits from cellular technology improvementsBenefits from cellular technology improvements

NEOTEC

MMDS APPROACHMMDS APPROACH

- Pay TV the only service- Pay TV the only service

- Analog technology- Analog technology

- Macro cell distribution- Macro cell distribution

- Line-of-sight only- Line-of-sight only

- Residential market only- Residential market only

- Multiple services (video, - Multiple services (video, voice and data)voice and data)- Digital technology- Digital technology

- Macro and / or multicell- Macro and / or multicell

- Line-of-sight not required- Line-of-sight not required

- Residential - Residential and and corporate corporate marketmarket

YESTERDAYYESTERDAY TODAYTODAY

MULTIMEDIA CONCEPT

BROADCAST:VideoAudio

Telecommunication:Phone / Fax

Data / Internet

PAY-TVPremium TV

PPV / VODGamesMusic

+SINGLE

SERVICEPROVIDER

Residential Market:Residential Market:– Analog VídeoAnalog Vídeo– Digital Video Digital Video – Fast Internet AccessFast Internet Access

Corporate MarketCorporate Market::• Internet AccessInternet Access

– ““VPN´s” - Virtual Private NetworkVPN´s” - Virtual Private Network– Video ConferenceVideo Conference– IP TelephonyIP Telephony

POTENTIAL SERVICESPOTENTIAL SERVICES

NEOTEC

WHY IS MMDS SO IMPORTANT TO BRAZIL?

NEOTEC

BRAZIL RESIDENTIAL MULTIMEDIA MARKET

• Total Population = 160.000.000 Inhabitants

• Total Homes = 40.000.000 HH

• Total “A”, “B” and “C” classes = 30%

• Total Market = 12.000.000 HH

• Total Subscribers = 3.500.000 (Today)

• Penetration in 2,005 = 60%

• Total Subscribers in 2,005 = 7.200.000 HH

BRAZIL CORPORATE MARKET

LARGE COMPANIES:

• Quantity= 5.000

• Top size = 350

• Revenue = US$ 200 mi.

to US$ 4.7 bi. (top 350)

• Data service = R$ 5.9 bi.

SMALL + MEDIUM CO.

• Quantity = 3.5 mi.

• PIB - 52% total

• Revenue = US$ 50,000

to US$ 200 mi.

• Data service = R$ 12 bi.

Source TELETIME March 2,001

Periferic Region( < 200 HP / Km)• MMDS• DSL modems• Cable modems

Urban Region( > 200HP/Km)• Fiber• LMDS• MMDS• DSL modems• Cable modems

Rural Region(< 50 HP/Km)• MMDS• Satellite

MMDS MARKET POSITIONING

NEOTEC

MMDS - PLANNING

NEOTEC

CAPACITY

COVERAGE

INTERFERENCE

MMDS - PLANNING KEY POINTS

NEOTEC

DIGITAL 3D MAPSURFACE AND STREETS

NEOTEC

TRANSMISSION

TRANSMISSION MODELING

NEOTEC

NEOTEC

Aracaju - Teleserv - Potência recebida X Distância

-80-75-70-65-60-55-50-45-40-35-30-25-20-15-10-50

0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000 22000 24000 26000

distância(m)

Po

tên

cia

rece

bid

a (

dB

m)

Pt = 43 dBm Lt = 4,0 dB Gt = 15.2 dBi ; Ht=150m Hr=10m

Gr = 20 dBi Lr = 3,5 dB

mai/01

Beta Telecom Consultores

NF = 2 dB Ta = 175 K; MSD = - 106,7 dBm

DMA

M. Freire

Mosqueiro ( obstruido por árvores)

Soledade

ESACO

Socorro

Capuchinhos

CRASE

R. Sul Farol

S. Amaro P. Pedro

Aeroporto ( obstruido por árvores)

Laranjeiras

MaruimS.Cristovão

CANAL B2 ( teórico x medido)Nulo Da Antena

Máximo da Antena

NEOTEC

SHADOW AREAS

NEOTEC

SHADOW AREAS vs. TARGET MARKET

NEOTEC

NEOTEC

NEOTEC

FREQUENCY PLANNING

NEOTEC

ANALOG / DIGITAL VIDEO HEADEND BLOCK DIAGRAM

NEOTEC

DVBSATELLITERECEIVER

LOCALSOURCE

ANALOGSATELLITERECEIVER

OFF-AIRDEMODULATOR

MPEG - 2ENCODER

MPEG - 2ENCODER

MPEG - 2ENCODER

AUDIO

VIDEO

A/V

A/V

MULTIPLEXERQAM

MODULATORSCRAMBLER

COMBINER

BRODBAND TRANSMITTER

ANTENNA

SIGNAL AQUISITION SIGNAL PROCESSINGSIGNAL

MODULATIONSIGNAL

TRANSMISSION

DIGITAL HEADEND BLOCK DIAGRAM

CA

DVBSATELLITERECEIVER

LOCALSOURCE

ANALOGSATELLITERECEIVER

OFF-AIRDEMODULATOR

A/V (PAL/M)

PACH-PANNEL

VIDEO/AUDIOBTSC/SAP

MODULATORSCRAMBLER

COMBINER

BRODBAND

TRANSMITTER

ANTENNA

SIGNAL AQUISITION

SIGNALPROCESSING

SIGNAL MODULATION

SIGNALTRANSMISSION

ANALOG HEADEND BLOCK DIAGRAM - BROADBAND TX

NTSC/PAL-MTRANSCODER

ANALOGSATELLITERECEIVER

A/V NTSC/PAL-MTRANSCODER

A/V

A/V (PAL/M)

AUDIOEQUILIZER

(n+1)

INTERNET HEADENDBLOCK DIAGRAM

NEOTEC

Receiving Antennas(“up-stream”)

Transmitting Antennas(“down-stream”)

CMTS

INTERNET HE BLOCK DIAGRAM

CUSTOMER’S PREMISE EQUIPMENT (CPE)BLOCK DIAGRAM

NEOTEC

DISTRIBUTION BLOCK DIAGRAM

NEOTEC

nINDOOR

AMPLIFIERDIVISOR

(1:2)

DIGITALSTB TV

CABLEMODEM

IPADAPTER

(LAN)

CPE

ANTENNA + TRANSCEIVER(Integrated)

ANTENNA + BDC (Integrated)

ANTENNA + BDC (Integrated)

BLOCKDOWN

CONVERTER

SETOP BOX

SETOP BOX

TV SET

TV SET

TRANSCEIVER

TV SET

CABLE -MODEM

IPPV - TELCO RETURN

BLOCKDOWN

CONVERTER

PC

PC

SETOP BOX

DIGITAL PAY-TV SERVICE

TELCO RETURN (2,4 kb/s) (115kb/s) DIGITAL PAY-TV SERVICE

+INTERNET TELCO RETURN

256 kb/sDIGITAL PAY-TV

+INTERNET TWO-WAY

SERVICE

ANTENNA + BDC (Integrated)

ON / OFFBLOCKDOWN

CONVERTER

TV SET

ANALOG PAY-TV SERVICE

CPE OPTIONS - BLOCK DIAGRAM

NEOTEC

SYSTEM ARCHITECTURE

NEOTEC

DOCSIS “+” STANDARD

BIDIRECTIONAL MMDS SYSTEM

IP TRAFFIC TRANSPARENT

NETWORK OVERVIEW

WHAT IS “NEOTEC”?

NEOTEC

MMDS OPERATIONSGEOGRAPHIC DISTRIBUTION

House Holds = 18.7 mi. (81%)Operations = 92 (63%)Municipality = 338 (72%)

(NEOTEC)Total

NEOTEC

CHALLENGES• Internacional Market Demand• Industry Standard• Open System • Near “line-of-site” Installation• Suppliers Diversity• Equipment Cost• Market / Investor’s perception

Latin America and specially Brazil are the largest marketsLatin America and specially Brazil are the largest markets

THANK YOUNEOTECR. Pedroso Alvarenga, 505 /13204531-011 São Paulo S.P. Brazilc/o: José Luiz N. Frauendorfe.mail: jlfrau@uol.com.brPhone: (55-11) 3167-6252