1 Why Wi-Fi business model review August 18, 2003

2 Meeting Goal  Defining the problem/opportunity to be solved  Understand the prelim business models for Wi-Fi  Discuss Technology  Move towards a compelling business model for an umbrella company that incorporates –Connectivity –Information –Management –Systems –Solutions –?

3 Wi Fi Opportunity Definition  The need for high speed INTERnet access –Both apps that require broadband scale access, as well as users that require broadband access  The need to move around with high speed access –Mobile computing users –Environments with large clusters of access aware individuals  The Value add for having both

4 Wi Fi Market Definition  Government –Federal –State –Municipalities  Corporate –International –National –Local  Consumer –Local –National traveller –International traveler

5 Wi Fi Business Models  Monthly Subscription Service –For Profit  T-Mobile, Sprint, Boingo  Pay As You Go –For Profit, Location based services specific to  Aeroports, Hotel Chains, Starbucks, etc.  Open Air Access –Free, Non profit –Cost Plus, For Profit

6 Wi Fi Market Strategies  Monthly Subscription Service –Large carriers looking to extend their footprint and gain revenue for mobile users on their network –Primary markets include large metropolitan cities that have high penetration of broadband and wireless users  Pay As You Go –Primarily targeted at traveling workforce. –Locations targeted at high density congestion zones  Open Air Access –Free Open air access system built as a value add for citizens and travelers in local municipalities  Ports, aeroports, parks, busines districts, redevelopment zones with mixed housing, etc. –Closed secure access built for a municipality’s government infrastructure  Fire, Police, FEMA, local government opps, etc

7 Wi Fi Revenue Models  Pay As You Go –Max of US$19.95/day, though now moving towards commidity of US$9.95 per day. –US$5 – 7 for one hour access with 10cents/minute there after in high traffic areas. –Revenue split with location  Open Air Access –Cost plus revenue split on sales of free access login screens –Cost plus service contract for Closed secure access  Monthly Subscription Service – US$19.99 to US$29.99 per month with large carriers – Revenue split on roamer agreements for travelers

8 Wi Fi Tangential Business Opps  Service Contracts for Wi Fi systems  Security  Portalized information environments for Open Air Access models  WEBsites for linked companies on portalized enviro  Advertising sales  Tangential services and systems that tie to the WiFi solution –Race management, etc.

9 Wi Fi Cost Drivers  Hardware –Connectivity –Servers –Routers –Antenna  Software –Security –Billing –Online time management  Personnel –Support –Installation  Time to market

10 Wi Fi Billing  Component based billing

11 Wi Fi Issues and Risks to Success  Billing  Security  Bandwidth  Antenna coverage and right of placement  Competition and time to market  Capital  Support  Build, buy, or partner  Content generation  Contract lengths  Device viewability in the open air

12 Wi Fi Model TBDs  Target Markets  Target Launch Date  Capital Needed  Funding Sought  Roles  Business processes  Model life cycle

13 Business Exit Strategies  Time  Money  Segmentation of tangential business opps