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
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10 Typical Outdoor Base Installation
Single BTS mounted outside on a water tower
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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%
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12 Results in Rural Markets
T Pocahontas – City Partnership – Deployed Dec. 2001 – 883 households – 259 customers (29% penetration) – Cash flow positive
T Kingsley – City Partnership – Deployed May 2002 – 569 households – 212 customers (37% penetration) – Cash flow positive
T Ida Grove – Traditional Business Plan – Deployed Dec. 2002 – 1,017 households – 174 customers (17% penetration) – Cash Flow Positive
T Holstein – Traditional Business Plan – Deployed Nov. 2002 – 627 households – 107 customers (17% penetration) – Cash flow positive
25 OECD Portugal – October 2004
NextNet’s U.S. ISP Partners Include:
Florida, Minnesota New Mexico Iowa Minnesota
Nebraska Ohio Arizona Michigan 26 OECD Portugal – October 2004
13 NextNet Meets All European Union (EU) Requirements (3.4-3.6 GHz)
27 OECD Portugal – October 2004
Clearwire Europe Trials 3.5 GHz NLOS Broadband With Danske Telecom in Copenhagen Broadband to Fit Your Lifestyle
Danske Telecom A/S is a 100 percent Danish owned telecoms operator, owned by the BankInvest Group and the Danish Railway Authorities. Danske Telecom has two FWA licenses in the 26GHz and 3.5GHz bands and has its own nationwide transmission network covering the 20 largest cities in Denmark. The company’s vision is to become the best supplier of voice, data and Internet access lines and related services in the Nordic region.
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14 Clearwire Europe – Trials 3.5 GHz NLOS Broadband Services in Dublin Broadband Where You Want it. When You Want it.
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Clearwire Europe – Trials 3.5 GHz NLOS Broadband Services in Brussels Broadband Where You Want it. When You Want it.
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15 Leveraging Europe’s Fiber Networks to Deliver BWA to Rural Communities Using Existing Fixed Assets Strategically Placed to Reduce Capital Investment
Europe’s rail system covers 28 countries and North Africa via Eurostar, Eurostar Thalys, TGV and others.
TGV Thalys
31 OECD Portugal – October 2004
Current Wi-Fi Trend . . . How is NextNet Different?
• Wi-Fi “Hot Spots” • NextNet NLOS Technology • Available in cafes, airports, etc. • Available in rural, urban and suburban • Portable, range of up to 300 feet markets (can connect multiple hotspots) (LAN) • Portable, range of up to 30 km (WAN) • Operates over unlicensed • Operates over Licensed (protected) frequencies frequencies • Security issues • Competes with cable and DSL
32 OECD Portugal – October 2004
16 NextNet & WiMAX. The Right Choice for Today and Beyond
NextNet invented OFDM-based NLOS plug-and-play broadband wireless technology in 1999. Today, WiMAX has adopted NLOS OFDM plug & play as the “technology platform of choice” for future WiMAX Certification™.
As a principal member of the WiMAX Forum™, NextNet is working with WiMAX members to help promote and execute the WiMAX Forum’s vision of broadband wireless interoperability, based on IEEE 802.16.
NextNet is delivering on the promise of WiMAX Today!
33 OECD Portugal – October 2004
Why NextNet is Well-Positioned for an Interoperable Future
802.16 NextNet® Airlink OFDM OFDM Access Method TDD or FDD TDD Interface Modified Ethernet Ethernet NLOS Future Now 6 MHz Data Rate 12Mbps 12Mbps 802.16e/ Mobility Now 802.20
NextNet’s three-year history of NLOS OFDM commercial deployment experience will be key in delivering the features and functionality that WiMAX systems will need to satisfy customers in the future.
34 OECD Portugal – October 2004
17 A Flexible Solution
WiFi Wired “Hotspot” PC LANs LANs
Voice over IP
ATMs
Laptops
Fleet Applications
Control and Data Acquisition applications
Point of Sale Terminals
Video Conferencing Security
35 OECD Portugal – October 2004
Delivering Mobile Broadband Solutions to Rural Markets
When every second counts!
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18 Public Safety Applications Emergency Response Delivering Critical Data FAST!
• Coordinate evacuations (download floor plans, escape routes) • Access building blueprints to evaluate structural integrity • Communicate with central command to direct traffic away from disaster scene
37 OECD Portugal – October 2004
Public Safety Officials – Carry the Office With You!
• “Mobile Ethernet” Advanced OFDM technology delivers consistent throughput everywhere in the coverage area • Robust construction to meet Public Safety requirements • Fast, seamless handoff at high vehicular speeds Expedience™ • Reliable mobile operation over the entire contiguous network Modem • Multi-city roaming support
Rooftop Omnidirectional RJ-45 Antenna Ethernet Ports On-board Ethernet
Vehicle Telemetry
38 OECD Portugal – October 2004
19 How Does it Work?
GPS Sync
Sector Antenna
Base Station
Power Inserter 48 VDC Supply Switch
Internet Trunk Mounted Mobile Broadband Unit: NLOS mobile outdoor modem mounts to trunk of emergency vehicle (police, fire, ambulance, etc.). The fully-integrated device (modem-antenna- transceiver) delivers broadband voice and data services over OFDM-based technology platform licensed frequencies. operates in a NLOS cellularized network
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Public Safety Applications Creating a shared platform for communication between authorities
• Search criminal data base for photos and fingerprints • Coordinate crowd control • Monitor traffic video cameras on the way to the crime scene • Keep officers on the street, while filing reports (greater officer visibility & public security)
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20 Guy Kelnhofer, President & CEO www.nextnetwireless.com 41 OECD Portugal – October 2004
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