C A L Y n e t w o r k s Broadband Wireless world forum 2001 CALY Networks Converting Spectrum to Profit CALY Networks Converting Spectrum to Profit Cees.

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C A L Y n e t w o r k s Broadband Wireless world forum 2001 CALY Networks Converting Spectrum to Profit CALY Networks Converting Spectrum to Profit Cees van der

C A L Y n e t w o r k s Broadband Wireless world forum Cannot Deploy Fiber Fast Enough If XO Communications had its way, all its customers would be connected to fiber. “But it will take decades” admitted CTO Doug Carter. BWB Oct 2000

C A L Y n e t w o r k s Broadband Wireless world forum The Opportunity: Businesses Need Bandwidth Wired Fiber OC3 DSL/Cable High Bandwidth Low Bandwidth Wireless LMDS 28GHz MMDS (ISM) mm-wave radio can deliver lots of bandwidth

C A L Y n e t w o r k s Broadband Wireless world forum “Last Mile” Challenges “Bandwidth bottleneck” Wireline broadband solutions are costly and have long installation lead-times Current wireless solutions have problems

C A L Y n e t w o r k s Broadband Wireless world forum Wireless Point-to-Multipoint

C A L Y n e t w o r k s Broadband Wireless world forum Wireless Point-to-Multipoint 30% of buildings are in the shade

C A L Y n e t w o r k s Broadband Wireless world forum Meshed Network using Point to Point

C A L Y n e t w o r k s Broadband Wireless world forum Meshed Network using Point to Point 15 links 30 radios to be planned, installed and aligned

C A L Y n e t w o r k s Broadband Wireless world forum Limitations for Deploying Wireless Networks Today Cost and availability of equipment Scalability of emerging PMP - PP architecture – Capacity restrictions – Effective coverage – Difficult to add customers, expand Complexity and deployment cost – Site planning – Frequency planning, reuse models Regulations, Roof Rights, CO-locations High Cost of Ownership

C A L Y n e t w o r k s Broadband Wireless world forum CALY Hybrid Fiber Radio TM Dynamic Wireless Networking Less than half the amount of equipment and <10% of install cost

C A L Y n e t w o r k s Broadband Wireless world forum Where is the Money ? Services Revenue : Cost : – Web hosting – Telecommuter – ERP – B2B exchange – VPN – Content – Security – Equipment – License – RF planning – Installation – Interconnect – Roof rights – Churn

C A L Y n e t w o r k s Broadband Wireless world forum Fax Voice Internet Access Internet Backbone VOIP Unified Messaging Intranet Software- Defined Services Wireless Internet Wireless LAN VPN E-Commerce Multimedia Video Complexity Requirements of Network Infrastructure Explosive Growth in Internet & IP Services Source Chase H&Q

C A L Y n e t w o r k s Broadband Wireless world forum Businesses Need QoS Mission critical, real time applications: – B2B e-Commerce – hosted business apps – stock trades – streaming audio/video – collaborative computing When transaction delays mean losses of real dollars Loss of revenue Loss of productivity Failed/Delayed Connection

C A L Y n e t w o r k s Broadband Wireless world forum RITA  Wireless Routing Algorithms Data Packet Scheduling – Bandwidth allocation – QoS support – Priority differentiation – Fairness Data Packet Routing – Path diversity – Load balancing – Link and node failure redundancy IP Backbone ISP A ISP B

C A L Y n e t w o r k s Broadband Wireless world forum Multipoint To Multipoint “Sweet Spot” TCP/IP – Ethernet – Fast Ethernet – Giga Ethernet Wireless Access and Metropolitan Networks MTU/MDU and Business Users 100 Mbps Long Haul Dense Urban Industrial SubUrban Residential SubUrban Rural Remote 100 Gbps Copper Cable, Satellite DSL Fiber Optic Free-Space-Optical Geographic and Population Topology Transmission Rate E1---- E3---- LMDS PMP MPtMP DSL WLL

C A L Y n e t w o r k s Broadband Wireless world forum Business Case Financial model compares broadband wireless access networks – PMP Wireless Local Loop (LMDS, BWA) – Point-to-Point – CALY Hybrid Fiber Radio Analysis includes: – Network coverage – Cash flow and profit & loss – Financial measures: NPV, IRR, funding requirements

C A L Y n e t w o r k s Broadband Wireless world forum Business Case Methodology Models entire city: Manchester, UK – All businesses with more than 10 employees Market demand driven – Network coverage grows organically – Demand peaks at 15% after 4 years – Models growth on quarter by quarter basis User-chosen node locations

C A L Y n e t w o r k s Broadband Wireless world forum Network Coverage - CALY

C A L Y n e t w o r k s Broadband Wireless world forum Network Coverage - PMP

C A L Y n e t w o r k s Broadband Wireless world forum Year Cumulative Cashflow ($M) –CALY –PtP –PMP Cumulative Cash Flow UK Business Case

C A L Y n e t w o r k s Broadband Wireless world forum CALY Hybrid Fiber Radio  Intelligent Wireless Choice End User Benefits: Broadband bandwidth access to Internet backbone IP QoS Resilient network Cost-effective connection LDMS Operator Benefits: Limited initial capital requirements, yielding high IRR Grow network with new customers No RF planning, site acquisition issues Fast, easy installation Self-healing network Automatic load balancing QoS offers new services potential

C A L Y n e t w o r k s Broadband Wireless world forum Summary Broadband IP wireless solution that finally solves the “last mile” bandwidth bottleneck Elimination of wireless implementation obstacles and lower costs enable broader deployment Enables delivery of new high-margin IP QoS services High-Performance Wireless Networking made Feasible

C A L Y n e t w o r k s Broadband Wireless world forum Conclusion Commercial Broadband IP Wireless Breakthrough Economics Converting Spectrum to Profit

C A L Y n e t w o r k s Broadband Wireless world forum Wireless Networking Redefined

C A L Y n e t w o r k s Broadband Wireless world forum Back-up

C A L Y n e t w o r k s Broadband Wireless world forum CALY Networks Corporate: CALY Networks 295 Santa Ana Court Sunnyvale, CA USA Tel: Fax: Europe: World Trade Center 1300, route des Cretes, BP Sophia Antipolis, CEDEX France Tel: +33(0) Fax: +33(0)