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Plug-And-Play Simplicity with No Professional Installation Required

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Plug-And-Play Simplicity with No Professional Installation Required Guy Kelnhofer, President & CEO www.nextnetwireless.com 1 OECD Portugal – October 2004 Plug-and-Play Simplicity With No Professional Installation Required 2 OECD Portugal – October 2004 1 True Plug & Play. What Does That Mean? Simple, Reliable, Fast, Affordable • Indoor, fully-integrated CPE • Self-installable, portable CPE • Absolutely no software to load • No need to configure the user’s PC • Standard Ethernet connection • Supports single or multiple computers • Wireless IP gateway to the home/office • Retail distribution on 3 continents today 3 OECD Portugal – October 2004 How Does it Compare to Wireline Solutions? Service NextNet Dial-Up DSL Cable Self-Installable- No user software to load. No Yes No No No professional installation required High-Speed Yes No Yes Yes Portable CPE Yes No No No Low End-user Yes Yes No No Cost of Service Always-On Service Yes No Yes Yes Available in Rural Almost Almost Yes Maybe Markets Never Never 4 OECD Portugal – October 2004 2 NextNet – the Carrier’s Choice for Mass Market BWA Deployment In the USA … In Canada….. In Mexico….. In Brazil … 5 OECD Portugal – October 2004 Wireless Pioneer Craig McCaw Acquires NextNet & Announces U.S. National Expansion Plan Wireless Pioneer Craig McCaw acquired NextNet in early 2004 and announced plans for a U.S. National broadband wireless deployment, commencing in Jacksonville, FL in the summer of 2004. The Jacksonville launch is part of an aggressive planned build-out throughout the United States. In April 2004, McCaw’s private investment company COM Forbes Billionaires list Holdings Canada, invested $50M in Microcell Wireless pioneer Craig McCaw, Chairman and Telecommunications for a planned Canadian National CEO of Clearwire, was deployment of NextNet’s NLOS technology. Microcell is a formerly the Chairman and CEO of McCaw major wireless provider, offering a wide range of voice and Cellular Communications, high-speed data communications products and services to over which he built into the nation’s leading provider 1.2 million customers. Microcell was sold to Rogers Wireless of cellular services in more than 100 U.S. cities, in Sept. 2004 for $1 Billion. before selling the company to AT&T Corporation in August 1994 for $11.5 Billion. 6 OECD Portugal – October 2004 3 Inukshuk/Allstream/NR Communications Ink Deal for 86M EUR to Deliver NLOS Plug & Play Broadband to 30M Canadians Commercially Deployed Today in: • British Columbia • Ontario • Nunavut • N.W. Territories Inukshuk, a wholly-owned subsidiary of Microcell Telecommunications, Inc. (TSX: MT), holds the licensed Multipoint Communications Systems (MCS) Spectrum (2.5 – 2.596 GHz) covering 30 million Canadians. Microcell is branding the NextNet solution as iFIDO and offering it as a bundled service to residential subscribers. 7 OECD Portugal – October 2004 Inukshuk & SSI Micro Launch Canada’s First NLOS Plug & Play Services Yellowknife, N.W. Territories, Canada, population 20,000. In Feb, 2004, NextNet and Inukshuk (SSI Micro) launched NLOS service in Yellowknife, capital city of the Northwest Territories. 8 OECD Portugal – October 2004 4 Sprint and AOL Trial Content, Features and Bundled Services With NextNet Solution in Canada Content and Features “Industry leading content and features included in the AOL service, coupled with high-speed wireless Internet access, provides users with new and better ways to experience the Internet.” Craig Wallace, CEO, AOL Canada Bundled Services Sprint Canada is evaluating the NextNet solution to support primary line voice and Internet services to households across Canada. “It also has the potential to . make entry into less densely populated areas of the country more economical.” Duncan McEwan, Sprint Canada President and CEO 9 OECD Portugal – October 2004 “Carrier-of-Carriers”- Multiple ISP Network ACCESS ISP Domain LAYER CPE ISP 1 Cell Site Prov isioning CRM Mail Serv er DS3 Hosting Serv er Serv er Server Internet 4 Base stations Sw itch SLA Enforcer Router to Internet SWITCH ISP 2 Cell Site Prov isioning CRM Mail Serv er Serv er Server Hosting Serv er Internet 4 Base stations CPE DS3 Sw itch SLA Enf orcer Router to Internet SWITCH SWITCH CPE G Ethernet ISP 3 CPE Prov isioning CRM Mail Serv er Serv er CPE Server Hosting Serv er Internet Sw itch SLA Enf orcer Router to Internet CPE CPE CPE Access Provider Netw ork Management Server Network Prov ider Serv er Cell Site Network Mngmnt Switch CPE 4 Base stations Network Provider SWITCH Domain Syslog / Statistics ISP s uppor t Web Server 10 OECD Portugal – October 2004 5 Clearwire Launches Jacksonville, FL – Aug. ‘04 With Retail Distribution Throughout the City Retail Distribution Coastal Wireless 11757 Beach Blvd., Suite 12 Jacksonville, FL 32246 Computer Source 4224 Atlantic Blvd. Jacksonville, FL 32207 Delta Communications 10601 San Jose Blvd., Suite 14 Jacksonville, FL 32257 Future Computers 4372 Southside Blvd. Jacksonville, FL 32216 FutureNet Computers Clearwire launched service in Jacksonville, FL on 9825-41 San Jose Blvd. Jacksonville, FL 32257 August 26, 2004, delivering NLOS coverage to ISN Telecom 120,000 homes over a 100 sq. mile area. Service is 4479 Deerwood Lake Park sold through 12 retail stores, with rapid expansion Jacksonville, FL 32216 Leading Edge Wireless planned for the coming months. 2245-6 Plantation Ct. Dr. Fleming Island, FL 32203 M&M Computers 1704 Southside Blvd., Suite 9 Jacksonville, FL 32216 Paragon Communications 4311-2 Highway 17 Orange Park, FL 32073 Parrish Cellular 11701 San Jose Blvd. Jacksonville, FL 32223 Smart PC 4375 Southside Blvd., Suite 13 Jacksonville, FL 32216 Tip Top Computers 5711 Bowden Road, Suite 17 Jacksonville, FL 32216 11 OECD Portugal – October 2004 Clearwire Delivers Uninterrupted Service to 90% of its Coverage Base During Hurricane Frances in Jacksonville, Florida September 4, 2004: Millions of Florida residents evacuated their homes, and millions are without power. Authorities say it could prove to be the most costly natural disaster in U.S. history. Satellite communications fail during Hurricane Frances 12 OECD Portugal – October 2004 6 NLOS Plug & Play Retail Distribution in Mexico MVS is marketing the NextNet NLOS System under the brand name “e-go,” in its retail stores in Mexico City and Mexicali. 13 OECD Portugal – October 2004 NextNet and MVS Expanding Service from Mexico City & Mexicali to 16 New Cities, Covering 41 Million in 2005 PUEBLA MVS’ 2005 market expansion includes Guadalajara, Monterrey, Puebla, Leon, Hermosillo, San Luis Potosi, Morelia, Merida, Chihuahua, Tijuana, Toluca, and Queretaro. 14 OECD Portugal – October 2004 7 Delivering Profitable Broadband Wireless Services to Rural & Remote Markets 15 OECD Portugal – October 2004 Rural Case Study: Evertek, Inc. T Began in 1905 as The Farmers Co-op Telephone Company. T Began delivering wireless Cable TV over MMDS in 1989 T Began delivering wireless Internet in 1999 T Two-time WCA award winner (2002 & 2003) for delivering NLOS broadband wireless service to underserved markets 16 OECD Portugal – October 2004 8 Rural Market Area Served In December 2001, Evertek became the world’s first service provider to deliver commercial NLOS plug-and-play broadband wireless services. Since December 2001, Evertek has expanded coverage to include 12 new rural cities with populations between 500 – 12K Evertek holds the MMDS (2.5-2.686 GHz) BTAs for Mason City, Sioux City, and Fort Dodge, Iowa, with towers that extend coverage into Eastern Nebraska and South Dakota. 17 OECD Portugal – October 2004 Rural Iowa Terrain T Palmer, Everly, Holstein – Very flat, very little clutter (Rural areas) T Sioux City, Kingsley, Pocahontas, Ida Grove – Very hilly, very dense clutter (Cities & Towns) 18 OECD Portugal – October 2004 9 Unique Business Plan – Employed in December ‘01 T Evertek partners with cities – Pocahontas, IA (883 homes passed) – Kingsley, IA (569 homes passed) T City purchases the base station equipment – Evertek maintains equipment – 5 year contract – City gets 15% of each customer – Free use of the water tower 19 OECD Portugal – October 2004 RF Market(s) with Single ISP Network Management Optional equipment and ISP Network RF Base Switch, SLA Enforcer, & DHCP server Station for single-site system Backhaul for Access, Provisioning, DHCP CRM additional RF markets & Network Management Router Router Router Access Domain SLA Enforcer ISP / Network Provider Cell Site Indoor & Outdoor CPEs Domain Subscriber PCs Internet “Hotspot” Wireless AP or Hub 20 OECD Portugal – October 2004 10 Typical Outdoor Base Installation Single BTS mounted outside on a water tower 21 OECD Portugal – October 2004 Kingsley Indoor Plug & Play Coverage Population 1,245 Received Signal Strength Margin Above Sensitivity, Households 569 Outdoor, 1st Floor Level Subscribers 212 Penetration 37.25% yellow > 21 dB, red 15-21 dB, light blue 10-15 dB, green 5-10 dB, dark blue 0-5 dB 9 Subscriber Locations (all use indoor CPE) Omni Antenna Height 100’ AGL Circles show 1.6 to 8.0 km Distance Service also attained at additional points, up to 30 km range ~ 99% service success rate 22 OECD Portugal – October 2004 11 Benefits to the City T The city had estimated $4 Million to build a fiber optic system – Expedience NLOS system was built for less than 2% of that total T Financial advisors estimated a 15 to 20 year payoff for fiber optic system – Expedience NLOS system payoff in about 2.5 years with 120 customers T Do not have to hire new staff – Evertek handles the system administration T Bring Broadband to town – Helps to attract businesses as well as residential 23 OECD Portugal – October 2004 Typical Pricing Structure T Minimal Installation fee – 31.70 EUR T Self Install available T Packages at 512k T Pricing varies by location – Pocahontas at 23.74 EUR/month – Kingsley at 27.71 EUR/month – City’s option Customer Uptake T Evertek is deployed in 12 Iowa cities today. Average market penetration is 14.6% (excluding 12th city launched 9/20/04). T Kingsley market penetration – 37.25% T Pocahontas market penetration – 29.33% 24 OECD Portugal – October 2004 12 Results in Rural Markets T Pocahontas – City Partnership – Deployed Dec.
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