1. WiMAX – A Carrier Perspective Aamir Hussain

2. 1 Profitable FWA with WiMAX Increasing WiMax Forum Activity Performance, conformance testing Projected Timelines For Standardized WiMAX Pre-standard solutions since mid 04 3.5GHz and 5.8GHz WiMAX Solutions by mid 05 Sub $2K Base Stations by YE06 Sub $100 CPE by YE06 (with 802.16e) Cost curves are attractive Trends are for increased bandwidth and tetherless broadband access Carriers welcome promise of low CPE for consumer markets

3. 2 Cost Curve of a Typical Consumer Grade WiFi AP Time Period: 11/13/00 through 05/10/04 Each tick mark represents one week Red = High Price, Blue = Average Price, Green = Low Price Tracking Data: www.pricescan.com 1H042H031H022H021H031H012H01 Can WiMAX follow a similar tendency in 2005-2006?

4. 3 Technology Comparison TechnologyRateReachSpectrum 2.5-3G NA CDMA 2000153Kbps2.5 miles850MHz; 1.9GHz 2.5-3G GPRS128Kpbs2.5 miles850MHz; 1.9GHz 1xEVDO (Rev. A) 3.1 Mbps FL; 1.8 Mbps RL2.5 miles850MHz; 1.9GHz 802.11a54Mbps300 feet (indoor)5.8GHz 802.11b11Mbps300 feet (indoor)2.4GHz 802.11g54Mbps300 feet (indoor)2.4GHz 802.15 Bluetooth721Kbps10 feet2.4GHz 802.15-3a UWB480Mbps10-50 feet2-10.2GHz 802.16a Unlicensed (20MHz) 802.16a MMDS (6MHz) 40Mbps 1.5-9Mbps 3 miles (P2MP); >10 miles (P2P) 5.8GHz 2.3-2.5GHz 802.16 LMDS1.5-155Mbps2 miles28-31GHz 802.20 Flarion 1.5Mbps FL; 0.6Mbps RL3 miles850MHz; 1.9GHz

5. 4 Data Rates Modulation / Code Rate QPSK 1/2 QPSK 3/4 16 QAM 1/2 16 QAM 3/4 64 QAM 2/3 64 QAM 3/4 1.75 MHz1.042.182.914.365.946.55 3.5 MHz2.084.375.828.7311.8813.09 5MHz4.166.238.3112.4716.6218.7 7.0 MHz4.158.7311.6417.4523.7526.18 10.0 MHz8.3112.4716.6324.9433.2537.40 20.0 MHz16.6224.9433.2549.8766.4974.81 Data rates in Mbps, simplex including signaling, pilots, etc. Actual Throughput = 60% of the above Seen in tests: 6Mbps TCP throughput in BPSK, 40Mbps TCP Throughput in 64QAM ¾ Hype claims 70Mbps at 30 miles. True tests show 40Mbps unobstructed. Experienced service providers know not to size throughput at highest possible modulation. Adaptive Modulation Code Rate Bits /Symbol BPSK1/2 BPSK3/4 QPSK1/21 QPSK3/43/2 16 QAM1/22 16 QAM3/43 64 QAM2/34 64 QAM3/45

6. 5 Carrier High-Level WiMAX Strategy Pursue Point-to-Point applications initially to prime the pump for development of cost effective Point-to-Multipoint Opportunities. Push development of CPE towards the Consumer Electronics market similar to WiFi – drives cost curve down Applications: Point-to-Point Backhaul -DSLAM backhaul bandwidth relief – bridge the gap between copper and fiber bandwidth -Extend bandwidth from fiber rings to business customers -Quick start IOF solution Point-to-Multipoint Access -DSL fill-in Phase 1 Outdoor antennas Phase 2 First wall penetration Portable DSL Potential DSL replacement

7. 6 Point-to-Point Deployment Opportunity Deploy Remote Terminals that include a high-bandwidth backhaul connection Could be TDM-based DS1, DS3, etc. Could be Ethernet-based 10/100BaseT, GigE, etc. Pursue Development of WiMAX Base Stations to meet one or more of the above interfaces to the DSLAM Bring the connection between the radio link and a remote terminal to a standard interface Select simple combination to manage cost Deploy WiMAX Base Stations on existing PCS/Cellular towers Aggregation multiple point-to-point links Interface to the Metro Optical Network Benefits Bridges the gap between copper backhaul capacity and fiber backhaul capacity Significantly less than trenching fiber Enables quick start capability Same architecture provides high bandwidth to businesses VoIP Data Video Modem / WiFi WiMAX RT

8. 7 Point-to-Point Technology Trial Provide backhaul link to a new remote DSLAM 5.8 GHz OFDM (802.16a, WiMax-like) Narrow beam Adaptive modulation, BPSK-64QAM Obstructed path length of 2.73mils Central Office DSLAM Indirect path using PCS towers provide near line of sight alternative: Higher modulation and better throughput Cost tradeoff. 10-20Mbps 10 Mbps6 Mbps3 Mbps

9. 8 WiMAX Point-to-Multipoint Deployment Opportunity Assuming cost targets are met: Pole-mounted WiMAX Base Stations Low-cost Base Stations No cables coming down from pole Mesh capability of 4-6 hops to an aggregation point tied to a high-speed internet connection Self healing -Bulk dispatch to cut OpEx Increased network reliability -Optional battery backup CPE Options Outdoor or Indoor WiMAX radio with Power over Ethernet cabling to indoor network Outdoor Indoor WiMAX/WiFi radio: WiMAX for network side, WiFi for indoor distribution PCMCIA WiMAX radio Built-in WiMAX radio like Centrino for WiFi VoIP Data Video WiMAX / WiFi VoIP Data Video WiMAX / WiFi VoIP Data Video WiMAX / WiFi

10. 9 Point-to-Multipoint Technology Trial Denver trial 5.8 GHz 90-degree sectors Multiple (3-5) simultaneous users Average bit rate 0.8-3.1Mbps Take aways: Can reach some NLOS locations, but not all Holds promise Scale 0 0.2 0.4 0.6 miles 1.6Mbps 2.9Mbps 1.8Mbps 1.1Mbps 0.8Mbps 3.1Mbps 1.8Mbps 2.2Mbps 2.5Mbps 1.2Mbps Base station

11. 10 Summary Market is moving towards broadband wireless solutions WiMAX has significant potential Opportunities include both point-to-point and point-to-multipoint applications Technology trials underway, preliminary results encouraging

12. 11 Backup Slides

13. 12 802.16 Broadband Wireless Access (BWA) Specification: IEEE® Standard 802.16™ “Air Interface for Fixed Broadband Wireless Access Systems” Spectrum of Interest: 2.5 - 60GHz Addresses the following at the physical layer: Higher capacity links and spectral efficiencies Adaptive burst modulation profiles Frequency Division Duplex and Time Division Duplex deployments. Intelligent medium access control layer (MAC) Necessary levels of Quality of Service (QoS) for ATM and IP networks Offers a natural migration path for ATM to IP networks. Can be optimized for different kinds of technologies, allowing future-proof development.

14. 13 Spectrum Considerations Licensed spectrum preferred to better manage SLAs 3.5 GHz world-wide allocation, US considering light licensing in 3.65-3.7 GHz Unlicensed spectrum at 5.8 GHz, but line-of- sight required Unlicensed spectrum at 700 MHz with etiquette?