Mobile Broadband Evolving to OFDM + MIMO 2007 2010 Cellular 3GPP 1G Analog 2G TDMA 3G WCDMA LTE Broadband Wireless - WiMAX 802.16d 802.16e 802.16m Wireless LAN - Wi-Fi 802.11a/b/g 802.11n The 3G community is also moving to OFDM/MIMO. The transition to LTE for the 3G community requires a forklift upgrade of the Radio Access Network (new base stations and client devices.) We will contrast WiMAX and LTE at the end of this course. LTE = Long Term Evolution (evolution of UMTS WCDMA) OFDM = Orthogonal Frequency Division Multiplexing OFDMA + MIMO New Spectrum All-IP Core Network

IEEE 802.16 timelines Call for stage 2 details issued in Jul ’08 First Call for Proposals for 802.16m Stage 3 issued in Sept’08 Sep ’07* Jan’08* Nov 08* Initial P. Working Doc Mar ’09 Letter Ballot Sponsor Ballot Sep ’09 Nov ’08 Nov ’07 Jan ’09 IEEE 802.16m 802.16m Amendment IMT Advanced Proposal System Description Requirements Evaluation Methodology ITU-R IMT Advanced IMT.TECH IMT.EVAL IMT. RADIO Jun ’08 Oct ’08 Proposal Submission Jan’09 First Call for Proposals for SDD issued in Sept ‘07 Circular Letter Proposal Evaluation & Consensus Building Develop Recommendation Q2 Q3 Q4 Q1 2007 2008 2009 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2010 Oct ’09 Jun ’10 Final Proposal Sept ’09* *System Requirements and Evaluation Methodology, System Description, IMT-Advanced Proposal Documents may be further updated based on ITU output (shown by dotted lines). Ŧ 802.16m amendment is dependent on the 802.16Rev2 Project completion ITU based Updates Refinements IEEE 802.16 ITU-R WP5D Mar ’10 IEEE 802.16m standardization complete 2 2

WiMAX or LTE = Same Level of Upgrade 2G, 3G Network (GSM, EV-DO, HSPA) 2G, 3G Core Network SGSN MGW GGSN Upgrade core network to support more IP data traffic New data overlay network 4G Network: (WiMAX or LTE) SAE GW All IP Core HSS PCRF MME/UPE OCS Radio Access Network (RAN): > 90-95% of new CapEx* Core Network Equipment < 10% of new CapEx* SAE – System Architecture Evolution – new all IP core network as defined by 3GPP. Base station equipment is about 20% of the total RAN cost (Intel estimate). Other costs include professional services required for deployment, site locating & permits, backhaul setup, mounting antennas. RANs are often on top of rooftops and tower sites from which the operator leases space. RANs are comprised of BS, antennas, air conditioners, insulation, antenna towers, wiring/feeds. Shipping & installation of the BS can cost almost as much as the BS. If an operator has an existing 2G or 3G cellular network, it can re-use its existing tower sites for locating the new RAN equipment. See WiMAX Forum whitepaper, “Mobile WiMAX for Existing 2G, 3G Operators” available at http://www.wimaxforum.org/news/downloads Core networks are located in the operator’s “switch centers” or “aggregation sites.” For 2G/3G, a state like California might 2-3 switch centers. In 2G/3G, all communications had to go through the central SGSN or GGSN located at the switch center. Operators own the real estate for the switch centers – so it’s far less complex for them to upgrade / operate than maintaining all the BS nodes. RAN = Radio Access Network GGSN = Gateway GPRS Support Node (equivalent to Home Agent in Mobile IP; enables mobility in GPRS/UMTS networks) SGSN = Serving GPRS Support Node (stores location info of GPRS users; packet routing & transfer; authentication & charging functions) Both WiMAX & LTE require new RAN equipment & devices. Neither is “backward compatible” to 3G. Both can interwork well with existing 2G, 3G networks. * Intel estimates. Percentage varies based upon the operator’s existing network.

3G Embedded Module Pricing – Impact of WiMAX ABI research shows how internal modem pricing was dramatically affected by WiMAX’s entry in the market. Our WiMAX/Wi-Fi modules initially came out at less than ½ the cost of the latest 3G modules. Ericsson responded by providing, for the first time, an embedded HSPA minicard module at very aggressive prices compared to historical. Qualcomm also responded with Gobi – an EV-DO / HSPA combo module (with full 2G legacy support and 4-band radio support). Gobi modules from ODMs were significantly more expensive than Ericsson’s HSPA-only module, but we understand that Qualcomm has responded in kind. Nonetheless, these 3G modules are still significantly more expensive than integrated Wi-Fi / WiMAX This highlights the facts that 1) despite 3G global volumes, devices have NOT benefitted from lower prices; 2) industry competition for 3G devices is HIGHLY inefficient; and 3) the only players that appear to have the ability to bring down costs are the ones with the dominant IPR portfolios (since they don’t have to pay royalties to themselves Q4’07 April 2008 HSDPA $145 $85 HSDPA/UPA $176 $108 EV-DO Rev A $139 $89 EV-DO Rev B $150 N/A (not happening) 3G Multi-protocol GSM/CDMA N/A $115 (Qualcomm Gobi chipset) Weighted average of all 2.5 / 3G internal modems (including EDGE, EV-DO, etc.) is as indicated in the chart. ABI Report: Expanding Cellular Broadband Connectivity to the Laptop, December 3, 2007 ABI Report: Cellular Modems and Mobile Broadband Connectivity, Q2 2008 ABI Research: Expanding Cellular Broadband Connectivity to the Laptop, December 3, 2007 ABI Report: Cellular Modems and Mobile Broadband Connectivity, Q2 2008

Data Rate & Latency Comparisons of WiMAX and 3G Evolution Technology Peak Data Rate RAN Access Latency Idle to Active transition time Downlink Uplink WiMAX Release 1.0 TDD (2:1 Ratio) 10 MHz 40 Mbps 10 Mbps* 40 ms 100 ms HSPA (today) 14 Mbps 2 Mbps 50-250 ms 600 ms HSUPA 5.8 Mbps 50-250 ms HSPA Evolved (Rel 7) MIMO 2x2 28 Mbps 11.6 Mbps HSPA Evolved MIMO+64QAM downlink 42 Mbps LTE (Rel 8) 2x5MHz 43.2 Mbps 21.6 Mbps 30 ms Future Today

WiMAX Direct Impact on 3G PC Modem Pricing Wireless Notebook Modem ASP Trajectory $150 Since Intel came out with Echo Peak 2.5-3G Cellular $111 ASP* 3 Chip .11N+.16E WiFi .11ABG Single Chip .11N+.16E** ABI research shows how internal modem pricing was dramatically affected by WiMAX’s entry in the market. Ericsson responded by provided, for the first time, an embedded HSPA minicard module at very aggressive prices compared to historical. Qualcomm also responded with Gobi – an EV-DO / HSPA combo module (with full 2G legacy support and 4-band radio support). Gobi modules from ODMs were significantly more expensive than Ericsson’s HSPA-only module, but we understand that Qualcomm has responded in kind. Nonetheless, these 3G modules are still significantly more expensive than integrated Wi-Fi / WiMAX. Q4’07 April 2008 HSDPA $145 $85 HSDPA/UPA $176 $108 EV-DO Rev A $139 $89 EV-DO Rev B $150 N/A (not happening) 3G Multi-protocol GSM/CDMA N/A $115 (Qualcomm Gobi chipset) Weighted average of all 2.5 / 3G internal modems (including EDGE, EV-DO, etc.) is as indicated in the chart. ABI Report: Expanding Cellular Broadband Connectivity to the Laptop, December 3, 2007 ABI Report: Cellular Modems and Mobile Broadband Connectivity, Q2 2008 WiFi .11N $0 2006 2007 2008 2009 2010 *ABI Research, Q3’07 preliminary ** Intel Estimates

Mobile WiMAX™ 2.0 (802.16m) 300+ Mbps (2010/2011) Peak sector throughput over 300 Mbps DL* (in 20 MHz) TDD & FDD support Multi-carrier support; BW of up to 100 MHz Increased VoIP capacity Even lower link access latencies Enhanced coverage Enhanced multi-radio coexistence and inter-technology handover Integrated multi-hop relay Self-organizing base stations Increased mobility: Up to 350 km/hr* * Note: Actual mobility & throughput depends on environmental conditions and Service Provider provisioning. Aggregate peak sector throughput calculated using 20 MHz for DL. FDD support in 2010 7 7

IEEE 802.16m Backward Compatibility 802.16e/802.16m Mixed Operate on the same RF carrier with same/different BW (a) Support a mix of 16e & 16m MS on same RF carrier (c and e) .16e MS same performance as16e BS (b=c) .16m BS support handover of .16e MS to/from.16e BS (b   c) .16m MS operate with .16e BS with same performance as .16e MS (b=d) .16m able to disable legacy support for e WiMAX Release 2.0 (16m) will be tightly backward compatible to release 1.0 (16e) 8 8