Broadband Wireless World Forum February 19,2001 George Wozencraft A Global Leader in Telecom Outsourcing TM

WFI Confidential & Proprietary Without integrated expertise across the broadband spectrum......target markets are not reached - and value cannot be maximizedCompetitionTechnology Services and Content Target Subscriber Base Coordinating the Effort

WFI Confidential & Proprietary 3Capital efficiency 3Modularity Fiber xDSL Satellite Fixed Wireless (ISM, UNII, MMDS, LMDS) ResidentialSOHOBusiness Cable Success will depend on location and the economic availability of competitive alternatives Created exclusively for data communications in a broadband world, fixed wireless offers numerous advantages, including: 3Speed to market 3High capacity Positioning Fixed Wireless

WFI Confidential & Proprietary A Systematic Approach Links Key Elements for More Meaningful Results Dimensioning Wireless Networks is a Complex Undertaking Market Definition: oMarket Segmentation Analysis oBandwidth Demand Modeling oService Offerings Analysis oCompetitive Analysis oTarget Area Analysis oMarket Segmentation Analysis oBandwidth Demand Modeling oService Offerings Analysis oCompetitive Analysis oTarget Area Analysis Network Design: oTechnology Selection oLink Budget oCell Radius oCapacity oAccess Network oCore Network oTransport oRing Design oSite Acq. / Pre-qualification oTechnology Selection oLink Budget oCell Radius oCapacity oAccess Network oCore Network oTransport oRing Design oSite Acq. / Pre-qualification Business Plan: oCapEx Planning oOpEx Planning oRevenue Projections oCapEx Planning oOpEx Planning oRevenue Projections Overview

WFI Confidential & Proprietary Market Analysis - Customer Segmentation nResidential Segmentation: 3May include multiple variables (household income, size, composition, etc.) 3Segmentation linked to block group (locale) nBusiness Segmentation: 3May include multiple variables (SIC, estimated bandwidth demand, # of employees, revenues, etc.) 3Segmentation linked to block group or specific buildings nPenetration Estimates developed by: 3Customer segment 3Service requirement 3Locale (block group or building)

WFI Confidential & Proprietary Residential Segmentation - Sample Map San Diego, CA

WFI Confidential & Proprietary Business Segmentation - Sample Map San Diego, CA

WFI Confidential & Proprietary Service Offerings Analysis Identify potential types of services by segment 3Residential Services  Segmentation by access speed, other variables  Potential enhanced services 3Business Services  Standard offers (internet access, accounts, etc.)  Access speed  Value-added services (web-hosting, ASP, etc.) Services drive network requirements 3Bandwidth requirements vary depending upon services offered 3Estimated bandwidth demand per subscriber drives link budgets, cell coverage, hub design

WFI Confidential & Proprietary Competitive Analysis Identify presence and location of: Estimated DSL coverage at street level Known fiber Probable T1 / T3 Map projected bandwidth requirements 3Bandwidth requirements located down to building and parcel level Overlay bandwidth requirements alongside competitive alternatives 3Identify areas where competitive alternatives exist 3Identify potentially exploitable gaps in competitive service offerings

WFI Confidential & Proprietary Competitive Presence & Bandwidth Demand

WFI Confidential & Proprietary Demand Modeling nService offerings and QoS differentiate broadband players -- coverage is secondary 3Bandwidth requirements –project by segment / SIC, subscriber type, service offer, QoS –project down to the parcel and / or individual building level 3Network design must account for growth –number of subscribers –bandwidth growth per subscriber, over time nBroadband network design should be modular 3Target areas of highest potential demand first 3Balance target customer bandwidth demand with overall market penetration Prioritize Capacity over Coverage

WFI Confidential & Proprietary Market-level Target Areas

WFI Confidential & Proprietary Local Target Areas with Competitive and Bandwidth Demand Overlays

WFI Confidential & Proprietary MDU/MTU WAP ISM/UNII/ MMDS Wireline Fixed Wireless B/H Single Family High-Use Residential Small to Medium Business Up to 1.5 Mbps W-LAN Micro-node (b) TECHNOLOGY & TYPES OF SUBSCRIBER UNITS LAN Hub W-LAN Single User: Peek User Demand < 15 Mbps ISM/MMDS LMDS MMDS/ISM ISM: 3-11Mbps UNII: ~20 Mbps MMDS: ~20 Mbps ISM: 3-11Mbps LMDS: ~34-38 MbpsMMDS: ~20 Mbps ISM/UNII/ MMDS Medium to Large Businesses Network Architecture

WFI Confidential & Proprietary Vendor Selection and RFP Process Technical Considerations 3Spectrum 3Capacity 3Reliability 3Standards Operational Capabilities 3Time-to-Market / Availability 3Volume Capabilities Vendor Financing 3Availability 3Terms RFP Process is a Key Element

WFI Confidential & Proprietary Selecting the Right Technology

WFI Confidential & Proprietary Fixed wireless forecasts consider: 3Potential service offerings and pricing 3Revenue and EBITDA projections 3Technology costs 3Operating expenses 3Core network installation and expenses 3Capital expenditures 3All pertinent income statement, cash flow, and balance sheet issues Research Align Strategic Objectives InvestRecognize Return Value/Share NPV IRR Thorough projections foster successful partnerships and accelerate progress Critical Analysis Speeds Success

WFI Confidential & Proprietary Market AnalysisTechnical AssessmentNetwork Design and Projections Business Plan Objective 3Tie together elements completed in technical assessment, market analysis, and technical designs and financial projections Benefits 3Serves as an internal road map as well as a guidebook for assembling pertinent information for parties new to the Company and/or the fixed wireless business 3Increase speed to market, springboard to deployment and/or expansion The Business Plan

WFI Confidential & Proprietary Summary... manages the complexity and leads to more favorable results. Dimensioning wireless networks is a complex undertaking. Market Technical Design Financial Market Technical Design Financial Linking the key elements...

The Business of Making Wireless Work A Global Leader in Telecom Outsourcing TM