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Frank JulesPresident & COOU.S. Operations

Winstar Communications

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Bandwidth CapacitiesBandwidth Capacities

Long-Haul Local

Geographic Basis

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Of 750,000commercial office

buildings…

Less than 10,000have direct fiber

connections

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Backlog in broadband

access

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The FactsThe Facts

1. Local bandwidth is scarce

2. Demand is exploding

3. New broadband services are coming to market every day

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Demand:Won’t be met until

scarcity is addressed

How can this be done?

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Incumbent carriers still retain 90+% market share

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“Broadband users at work in the U.S. will double to

55 million by 2005”

“87% of workers with Internet access will be

using high-speed connections in 2005”

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RBOCsCan’t Do

it!

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Local bandwidth is

scarce

The right technology

The right business model

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The Winstar MissionThe Winstar Mission

Build the world’s most widely available, end-to-end broadband network…

…and load it with a comprehensive set of productivity enhancing services that help businesses become better at what they do.

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Winstar TechnologiesWinstar Technologies

•Our own fiber network connecting top 60 markets in U.S.

• Internet hosting centers

•Broadband fixed wireless

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• OC-3 connectivity for $20,000

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Broadband ServicesBroadband Services

•Network-based applications

•Complex back-office functions

•E-commerce applications

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• iDelphi initiative

•Savings of $30M in IT costs

Designed and implementedhosted application platform

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Solving Bandwidth Drives Demand for Broadband Services

Solving Bandwidth Drives Demand for Broadband Services

•Customer acquisition rate is going up

•75% of new Winstar customers order bundled data and voice

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Business-ready

bandwidth

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Next StepsNext Steps

•Focus on creating solutions that get inside buildings

•Remember broadband network is software platform of future

•Local bandwidth is scarce!

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Tremendous opportunity

exists