Confidential and Proprietary Proposal for optical fiber repeater based Wireless Network. (Wired Cell)

1 Confidential and proprietary Business Objectives Paradigm shift:Develop an alternative to conventional build out of sites in the areas of high density traffic. City coverage:Flexibility to lease to the Wireless carriers an entire city coverage, instead of conventional tower space (a la tower companies). No more zoning battles. Work in cooperation with local cities/municipalities to harmonize the business objectives and local concerns about “tower in my backyard” Return to investors:Make sure that investors reap benefit out of this solution and view this as an attractive investment proposition.

2 Confidential and proprietary Goals Quality:Develop a high quality network, in which customers of wireless carriers can experience nothing but the best. Capacity:Provide a wireless network where Wireless carriers can sell phones without any worry for the roadblocks to add capacity. Flexibility:Develop a network which is flexible and nimble for Wireless carriers to respond to any change in the economic and sales environment.

3 Confidential and proprietary Goals Cont.... Ease of deployment:Network which is easy to deploy, which do not need conventional sites for quality enhancement and to sustain subscriber growth. Spectrum:Any spectrum issues of wireless carrier becomes less of an issue. Higher spectrum efficiency. Reliability:Develop a network which has a high degree of reliability & availability, which is less dependent on the vagaries of power and Telco companies.

4 Confidential and proprietary Proposal Proposal is for the fiber optic based repeater system with optical fiber cable strung on utility poles or laid through underground conduits. Optical fiber repeaters installed at the distances to get the optimum coverage. Each repeater is mounted on low height (35-45 feet) poles with low profile and non intrusive omni/wide beamwidth antennas. RF is radiated by the series of repeaters mounted on poles and connected by optical fiber to the centrally located Base Station.

5 Confidential and proprietary Proposal Cont.... Repeaters can be used for multicasting of RF signal or work as standalone sectors. This approximates the microcell architecture and enjoys it’s increased spectrum efficiency and quality. The proposed optical repeater based architecture does overcome the following drawbacks of microcells. –Need to have T1 for each microcell location. –Inability to efficiently handle the unevenly distributed traffic in the area covered by the series of microcells. This proposed architecture requires the optical fiber connectivity, taking the signal back to the central Base station.

6 Confidential and proprietary What are the gains? This is economically an advantageous proposal for Wireless carriers. Since most of the time wireless customers will have at least one pole “visible” they will experience enhanced quality of coverage with less fading effect. Increased spectrum efficiency. On conservative estimate efficiency gain is at least 3 times the conventional site solution.

7 Confidential and proprietary What are the gains? Cont.... No need to build costly, difficult and sometimes impossible conventional sites, year after year, to sustain increased net adds and traffic. Cell splits can be achieved by simple splicing and changing the cable jumpers. This has direct implications on time to add capacity to the system and quickly respond to changing economic and sales scenarios. To cater to the increased traffic, radio resources will have to be added at the centralized hub location, thus simplifying the planning & deployment.

8 Confidential and proprietary What are the gains? Cont.... Decrease in overall operating cost for wireless carrier. –Better matrix of sites per technician. –Decrease in number of T1, because of their optimum use. –Centralized Base station location can have T1 circuits, from redundant sources and backup power, decreasing the outages due to T1 & power. This architecture will aid the 3G deployment strategy for the wireless carriers.

9 Confidential and proprietary Network Architecture Optical Fiber Cable on poles Optical fiber repeaters with antenna RF/Optical fiber interface Central Hub Station Base Stations RF Wireless carrier 1 Wireless carrier 2 Wireless carrier 3 Wireless carrier 4 Optical Fiber Cable through conduit

10 Confidential and proprietary Network Schematic Fiber optic cable laid along the roads, terminated on a hub base station. Optical fiber repeater Optical fiber cable

11 Confidential and proprietary RF Coverage Wireless Carrier 1 Objective: primary coverage Secondary capacity Simulcast of 8 3 Sectors of Capacity Wireless Carrier 2 Objective: coverage & moderate capacity Simulcast of 6 4 Sectors of Capacity Wireless Carrier 3 Objective: Primary capacity Simulcast of 4 6 Sectors of Capacity Sector 1 Sector 2 Sector 3 Sector 4 Sector 5 Sector 6 Sector 1 Sector 3 Sector 4 Sector 2 Sector 1 Sector 3 Each diagram represents different Wireless carrier, with different capacity requirement, transmitting on the same set of repeater locations. Sector 2

12 Confidential and proprietary Rental and cons. cost for optical cable Cost of construction. Fiber on utility poles. –Furnish & installation Strand $1.25 per foot –Lashing fiber to strand$0.76 per foot Application cost. –Detroit Edison$80 for 6 poles, $13 thereafter for every additional pole. –PLD$60 for 6 poles, $13 thereafter for every additional pole. Pulling fiber through existing conduit. –Proofing & stringing$0.60 per foot –Cable pulling$1.25 per foot –Adder cable$0.50 per foot New conduit installation –Directional bore $8.50 per foot –Install inter-duct$0.75 per foot Recurring costs Attachment to utility poles –Fiber attachment $15 per year per pole (PLD rate is $4.95) –Repeater and Antenna $60 per year per pole ($4.95, PLD has not quoted any different rate) Existing Conduit –Conduit lease $4.50 per foot/year (This is PLD cost nothing has been quoted by Detroit Edison) Common cost –Cost of 96 strand cable$1.57 per foot –Mid sheath entry$235 per repeater –Splicing & testing$ 39 per fiber –Splice enclosure dress$ 125 per enclosure

13 Confidential and proprietary Economics