LTE & WiMAX: a Fixed Line Broadband Alternative Richard KeithDirector of Global Strategy, Broadband Access Solutions Home & Networks Mobility

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc WiMAX & LTE in Rural areas Right combination of Coverage, Capacity & true broadband User experience is essential for Economically viable wireless fixed line BB services LTE & WiMAX: potentially viable technology for addressing “Digital Divide” Different Business Model USER EXPERIENCE SPECTRUM FLEXIBILITY SPECTRUM AVAILABILITY Fixed Wireless vs. Mobile Cellular New Revenue Sources DSL/FLBB like Datarate & Latency 1.4MHz to 20MHz bandwidth => simplify refarming Some existing URBAN spectrum unused in rural areas How far into rural can wireless based Broadband service be economically viable? Population density is critical to bus case Subscribers expect to Pay a Premium if no other means of connections DEVICE & Silicon Early Silicon CPEs/Dongles Vs. Mature Silicon Handsets

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc Device Type Impact CPE have a significant impact on reach & rural wireless business model Mobile 1.0 x Datacard or Laptop 1.1 x Indoor CPE 2.2 x 4.8 x Area Outdoor CPE 8.7 x 75 x Area Clustered communities Cell site optimized for coverage of hamlet Hybrid design Indoor and Outdoor CPEs: (few outside of coverage) Sparsely populated area Outdoor CPE for very large coverage Indoor CPE Coverage Indoor CPE Coverage

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc Market Examination – France & Model Conditions No FLBB connections Poor FLBB conx GoodFLBBConnectionsTraditionalMobileNetworkCoverage PopulationArea Total65M550K Urban5.5%0.04% Suburban43.2%3.3% Rural51.3%96.7% Fixed ARPU$50 Penetration20% HHs Avg User Data 53 kbps with 20x OS Dimensioning 124 kbps UL >>1 Mbps DL (16,522) (2311) Urban and Suburban 50% Pop, 3% Land Rural Population (8)(12) (29) (70) (197) (690) (4)(1) (XX) People per sq Km Population Density : Columbia University SEDAC

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc Fixed Broadband Market Examination Positive NPV Urban and Suburban Site Density similar to Mobile Network Coverage Avg: sq/km 50% of 20% uptake of larger numbers 800MHz offers 225% “coverage” site advantage vs. 2.6GHz BUT, 800MHz offers 25% “capacity” site advantage vs. 2.6GHz Rural Site Density applied to Fixed ONLY Coverage Avg = sq/km Outdoor CPE: limited path loss, more power uplink 2600 and 800 nearly the same at the lowest densities Indoor Outdoor 800 and 2600 Indoor 800 Population Density: Columbia University SEDAC Hybrid Indoor + Outdoor hits 32M/50% pop Outdoor only hits 16M/25% pop Outdoor CPE 800 0% 25% 50% 75% 100% 0%25%50%75%100% Cumulative Area Cumulative Population 5 Both LTE 800 and 2600 yields positive NPV deep into Rural Areas

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc thank you