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Motorola Confidential Proprietary MOTOROLA, the Stylized M Logo, and MOTOWI4 are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc
Motorola Confidential Proprietary MOTOROLA, the Stylized M Logo, and MOTOWI4 are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc Site costs – Light Infrastructure Benefits Antennas Separate → Integrated Active Elements Many → Few Civil Works Tower → Pole/Stand Real Estate Traditional → Innovative Cabling Analog Coax → Digital Installation Tools Heavy Equip. → Hand Tools Cooling A/C → Convection/Fans Infrastructure Housing Temp Control Building → All Outdoor Power K-amps → amps Capex Cost Difference Traditional Cellular Infrastructure (Range: $80k-190k) Light Infrastructure (Range: $30k-120k) Blended avg: ~$96K Blended avg: ~$44K
Motorola Confidential Proprietary MOTOROLA, the Stylized M Logo, and MOTOWI4 are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc Flat IP Architecture - Now on IP Cost and performance curves - Reduced Capex, backhaul and Opex costs. By reduced network complexity. Majority off the shelf equipment TRADITIONAL CELLULAR ARCHITECTURE InternetPSTN MSS SGSN Base Station Controllers GGSN Media Gateway Base Stations CARRIER ACCESS POINT (CAP) ARCHITECTURE InternetPSTN Access Points CAP Controller VoIP Gateway or IMS Data Gateway or IMS
Motorola Confidential Proprietary MOTOROLA, the Stylized M Logo, and MOTOWI4 are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc WiMAX Chipset costs – Design simplicity: Full-duplex TDD streamlines RF design – Leverage with a/b/g makes multi-mode cheaper – 2.5Ghz and 3.5Ghz world-wide spectrum allocations drive economies of scale Global ecosystem Technology cost comparison WiMAX voice centric WiMAX MM centric
Motorola Confidential Proprietary MOTOROLA, the Stylized M Logo, and MOTOWI4 are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc WiMAX Business Model Link Estimation Tool Capacity Simulator Coverage Analysis Capacity Analysis Model Input Sheet Model Result Sheet Integrated with Model
Motorola Confidential Proprietary MOTOROLA, the Stylized M Logo, and MOTOWI4 are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc Model Inputs and Results - 10 Year Financial Pro-forma - Estimate TCO and ROI - Capacity is estimated using the pseudo simulator for each year - Includes wireless/wireline backhaul Model Input Sheet Model Result Sheet Inputs Include: Frequency band, Channel BW Network Type – Fixed, Mobile, Mixed Coverage rollout, Design details (Demographics, Antenna Ht etc, Duty Cycle..) Services Offered, Traffic profile and demand ARPU, Handset Costs/Subsidies Churn Rates, subscriber rollout Backhaul details, Existing network synergies
Motorola Confidential Proprietary MOTOROLA, the Stylized M Logo, and MOTOWI4 are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc Operator Business Modeling Methodology & Results Applied varied penetration rates, densities, and traffic mixes to mobile and fixed/nomadic models Applied most efficient product to carrier business model Over 60 business models generated Summarize results and apply to market segments Close business cases based on: Solving for ARPU vs.. Number of Subscribers Product Cost averages 5% to 10% of TCO minimal impact to business case – Big hitters: Site specific costs in backhaul, site acquisition, site rental, and site utilities Site Costs: 15% to 30% of TCO
Motorola Confidential Proprietary MOTOROLA, the Stylized M Logo, and MOTOWI4 are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc Summary Carrier Business Model Results
Motorola Confidential Proprietary MOTOROLA, the Stylized M Logo, and MOTOWI4 are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc Mobile Technology Comparisons: TCO based on Data Usage per User Capacity Expansion Risk Note: Per subscriber data usage (1 busy hour, 7 non-busy hours per day) based on 15k subscribers in 100 km^2 EVDO-A based on 2.5 GHz with 7 carriers; cell edge rates DL 1 Mbps,UL 256 kbps WiMAX based on 2.5 GHz at 10 MHz channel BW; cell edge rates DL 1 Mbps,UL 256 kbps Backhaul costs assumed operator uses lowest cost solution (owned wireless) 2 GB per Person per Month TCO tipping point toward WiMax
Motorola Confidential Proprietary MOTOROLA, the Stylized M Logo, and MOTOWI4 are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc Mobile Technology Comparisons: TCO based on Data Usage per User Capacity Expansion Risk Note: Per subscriber data usage (1 busy hour, 7 non-busy hours per day) based on 15k subscribers in 100 km^2 EVDO-A based on 2.5 GHz with 7 carriers; cell edge rates DL 1 Mbps,UL 256 kbps WiMAX based on 2.5 GHz at 10 MHz channel BW; cell edge rates DL 1 Mbps,UL 256 kbps Backhaul costs assumed operator uses lowest cost solution (owned wireless) 2 GB per Person per Month TCO tipping point toward WiMax
Motorola Confidential Proprietary MOTOROLA, the Stylized M Logo, and MOTOWI4 are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc Broadband Capacity Comparison (SIMO)
Motorola Confidential Proprietary MOTOROLA, the Stylized M Logo, and MOTOWI4 are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc WiMAX System Simulation Results: Summary All MS 30 Kmph