1. August 24, 2003 TELECOSM 2003 WiFi & 3G CDMA 802.11a Cordless Internet 802.11g 802.11b Hot Spot PWLAN May, 2003 Industry Analyst Briefing Deck

2. August 24, 2003 TELECOSM 2003 Source: QUALCOMM IT Covering QUALCOMM’s Campus with WiFi QUALCOMM believes in 802.11 for the enterprise & home environments QUALCOMM has spent over $300,000 "full up costs" for the access points covering our common areas and meeting rooms –200 Access Point's represent in one mid size company in a restricted area campus an equivalent of 20% of Boingo's sites nationwide –Access point installation currently costs about $1,500, at around $500 per an access point and approximately $1,000 in installation expenses. - Cometa, May, 2003

3. August 24, 2003 TELECOSM 2003 Public WiFi Service Limitations Data speeds –Limited by backhaul and multiple access scalability –11 Mbps becomes irrelevant when connecting through a T1/E1 (~1.5 Mbps), DSL or cable modem (300 – 500 kbps) “Hotspot” coverage –Very limited –Predicated on “travel to compute” model Backhaul costs Landlord fees/revenue sharing –Perceptions of ultra-low service fees are incorrect –Hotel room phone example –CTIA IT show / T-Mobile example Billing issues –WiFi roaming is in its infancy, need for multiple subscriptions Barriers to entry are few –“Java Joes” can provide free access next door to a Starbucks/T-Mobile

4. August 24, 2003 TELECOSM 2003 Number of public WiFi access points (est.) Source: Gartner Dataquest 2002, Mainstream Users Expect Ubiquitous Coverage A single 802.11 access point covers roughly 25,000 square feet –One or more APs consists of a WLAN “hotspot” A single suburban 3G cellsite covers roughly 750,000,000 square feet By 2006, estimated U.S. public WLAN access points will cover an area roughly equaling 3.5 cell sites

5. August 24, 2003 TELECOSM 2003 T-Mobile/Starbucks averages 1 user / day / hotspot at 46 minutes each session Source: Strategy Analytics, October 2002 Usage required to break even on just the T1 access lines: 90 users per AP! T1’s are expensive! Limited to Backhaul: T1/E1 (~1.5 Mbps)

6. August 24, 2003 TELECOSM 2003 100% of the “Hot Spots” in Both Cities are Covered by CDMA2000 Cisco Starbucks Finder Source: New York City –96 Total “Hot Spots” 20 Wireline Locations –20 Landline Ethernet Hotels 5 Wireless Locations (non- café) –3 Admirals Clubs –2 WiFi Hotel Lobbies 71 Starbucks San Francisco –86 Total “Hot Spots” 15 Wireline locations –15 Landline Ethernet Hotels 3 Wireless Locations (non- café) –1 Admirals Club –1 WiFi Hotel Lobby –1 Restaurant 68 Starbucks Are coffee shops the optimal place to work? What if you don’t get a seat… 4 % of these sites are Wireless and not owned by Starbucks

7. August 24, 2003 TELECOSM 2003 http://www.verizonwireless.com/express_network/index.html

8. August 24, 2003 TELECOSM 2003 Will P-WLAN services go the way of the pay phone? Recent CTIA Trade Show (3/03, New Orleans) Since cellular phones are now widely used and pricing plans include large bundles of minutes, payphones are less popular Hotspots offer a beacon of access today. What happens when cellular data pricing plans are lowered and data rates increased?

9. August 24, 2003 TELECOSM 2003 Source: http://news.bbc.co.uk/1/hi/technology/2175804.stm History Lessons for Wireless Networks Rabbit phone service: Subscribers to the service, backed by Hutchison Whampoa, could make mobile calls when they were within 100 metres of a Rabbit transmitter. WiFi as a business?: Adam Zawel, Yankee Group - "The business models are still uncertain," he said. "That's why we've seen some early failures. It's an uncertain opportunity.” But if the history of Rabbit and its peers is any guide, location- specific services may prove unpopular.