CANTO – Freedom in Waves Ian Lenathen Director - Sales Bermuda and Caribbean Region Airspan...

CANTO – Freedom in WavesCANTO – Freedom in WavesIan LenathenIan Lenathen

Director - Sales Bermuda and Caribbean Director - Sales Bermuda and Caribbean RegionRegion

Airspan Networks Airspan Networks

President – BroadbandAction Inc.President – BroadbandAction Inc.

Connecting The World

Commercial in Confidence2

VoIP Market Growth --- VoIP Market Growth ---

Residential US

Now – over 3 Million Users

By 2008 – 27 Million

Business US

By 2008 - 44% IP Telephony


Traditional Telecom Monopoly Business ModelTraditional Telecom Monopoly Business Model

• Best Model to ensure world connectivity.

• Long term contracts

• Exclusive

• Multi-Million $ Investment

• Guaranteed Returns

• Good For Government

• Taxes

• Good For Tourism

• PIF


Diminishing RevenuesDiminishing Revenues

• Long Distance Revenue is falling

– Diminishing tax revenue to governments

– Hotels charging for Broadband

• Some block VoIP

• Mobile Phone Revenue increasing– Marketing and Engineering energy focus

– Incumbents put less focus on Broadband Penetration

$

$


• Dial up– E-mail

– Fax Killer

• Broadband– Richer Content

– Cable competition

– Converging Networks

– Converging Services

• Multiple Threat– Music Content

– Movie Content

– Voice Network Assets

Packet Switched - Digital

Telephone

Television/Radio-Media

DataConverging Networks

Converging Services

Internet Protocol

Network Convergence = Service ConvergenceNetwork Convergence = Service Convergence

Traditional Business Models Challenged

Market Discontinuity In Content Distribution and Billing

Data + Movies + Radio + VoiceIP

Internet


IP Trumps IPIP Trumps IP

IP = Intellectual Property

IP = Internet Protocol

Follow the Rules The Rules don’t apply


Pay Per Use Business Model – Adapting StrategiesPay Per Use Business Model – Adapting Strategies

• Apple Computer– iPod

– iMusic

– New Products

– New Business Model

5 Million iPOD’s Sold in first three months of

2005

• Sony Pictures– New Products

– New Business Model

500 most popular titles available from Sony

digital download site by 2006.


PSTN – Same Pain More SourcesPSTN – Same Pain More Sources

Cable Companies - Unregulated

Desktop Portals - Unregulated

VoIP and Peer to Peer - Unregulated


In My Humble Opinion…In My Humble Opinion…

• Greatest threat to Incumbent Telephone companies…

– Competitors granted License to compete in Island Nations

• No desire to run the wire

• Leap-frog with Fixed and Nomadic Wireless Access

• Hot Spot and Wireless backhaul.

For the first time in history – competitors can provide voice and data services to mass markets without touching any

part of the Incumbents Network!


Market DiscontinuityMarket Discontinuity

• Entry fee to become a Telecom Provider is very inexpensive.

– Very little Outside Plant – No wires, No holes, No poles.

– Faster redeployment if a Hurricane hits

– “Instant” Penetration

– “Instant” Service Bundle

–


INTERNETINTERNETBACKBONEBACKBONE

Private (Fiber) Private (Fiber) NetworkNetwork

Non Line of SightNon Line of SightPoint to Multi-Point to Multi-

pointpointOUTDOOROUTDOORCPECPE

802.11802.11 ProprietaryProprietary

ProprietaryProprietaryPtPPtP

INDOORINDOORCPECPE

Point to Point Point to Point BACKHAULBACKHAUL

ProprietaryProprietaryPtMPPtMP

Proprietary Fixed WirelessProprietary Fixed Wireless

Base StationBase Station


INTERNETINTERNETBACKBONEBACKBONE

Private (Fiber) Private (Fiber) NetworkNetwork

Non Line of SightNon Line of SightPoint to Multi-Point to Multi-

pointpointOUTDOOROUTDOORCPECPE

802.11802.11 ProprietaryProprietary

WiMAXWiMAXPtPPtP

INDOORINDOORCPECPE

Point to Point Point to Point BACKHAULBACKHAUL

WiMAXWiMAX

Hybrid Deployment – Standards = Ubiquity Hybrid Deployment – Standards = Ubiquity

Base StationBase Station


Spectrum Profiles – Towards “Harmonization”Spectrum Profiles – Towards “Harmonization”

2 3 4 GHz 5 6

3.300-3.400

Low and Mid U-NII Bands 5.150-5.350

802.11a

Upper U-NII/ISM

Band 5.725-5.850

WRC 5.470-5.725

Unlicensed

ISM (802.11b/g)2.400-2.480

Unlicensed

3.5GHz Band 3.400-3.600

MMDS 2500-2.690 2.700-

2.900

US WCS 2.305-2.320 2.345-2.360

LicensedLicensed

Licensed

WiFi

Future WiMAX profiles

Initial WiMAX profiles

Ian L

Only Two System Profiles will be released Initially:

3.5 GHz FDD5.8 GHz TDD

PCS1.850-1.990

Broad Global Utilization of 3.5 GHzAsia Pacific – Australia, NZ, China, India (3.3-3.4) Japan, Malaysia, Taiwan.EMEA – Czech Republic, France, Germany, Hungary, Greece, Ireland, Norway, Poland, Romania, Russia, Spain, Switzerland, UK, Israel, Turkey, Nigeria, Mali.Americas – Argentina, Brazil, Canada, Columbia, Costa Rica, Ecuador, Mexico, Peru, Uruguay, Venezuela

Licensed

4.9-5.03 GHz TDD Unlicensed - 10MHz Channels - Airspan

Yozan Japan

Market Driven WiMAX example2,5 GHz 3G Europe

Wants it

3G

Eu

rop

e


Speaker Name

Title of Speaker

Spectrum by RegionSpectrum by Region Target ’05-’07 Deployment BandsTarget ’05-’07 Deployment Bands

USA 2.5, 5.8 and 3.4 GHzPossible 700 and 900 MHz

Central & So America2.5, 3.5 & 5.8 GHz

EUROPE3.5 & 5.8 GHz

Possible: 2.5, 3.6 GHz

MIDDLE EASTAFRICA

3.5 & 5.8 GHz

ASIA PACIFIC2.3, 2.5, 3.5 & 5.8 GHz

CANADA2.3, 2.5, 3.5 & 5.8 GHz

RUSSIA 3.5 & 5.8 GHzPossible: 2.3, 2.5 GHz


VoIP Served by Wireless vs. WirelineVoIP Served by Wireless vs. Wireline

• VoIP is simply Voice over a Packet Network.– Wireline companies could easily offer VoIP

– Must protect their investment in the installed “way” of doing things.

• Market discontinuity (Network Connectivity and Digital Broadband Services)

– Wireless Deployment to the home is now possible

– Carrier grade VoIP from the Wireless Network is now possible

“Slow as Possible” Strategy is Risky if mistimed


Traditional Wireline – An example – Atlantis TelcoTraditional Wireline – An example – Atlantis Telco

• Served the Island Nation for the past 50 years (monopoly business model)

• Local, Tandem, Gateway TDM Circuit switches

• Data Networking Overlay with a fiber ring

• Mobile network for past 10 years

• Dial Up Internet for past 8 years

• DSL offered two years ago – Penetrations at 10% of market

• Marketing and Engineering has concentrated on Mobile side the business since this is where customer growth has come from in the past few years.

• Recently dropped DSL price by 30 %

• Residents of the island feel they are paying too much and want to use their broadband as they see fit including running Vonage, Skype and Net2Phone.


Traditional Wireline Competitive Threat Traditional Wireline Competitive Threat

• Government granted license to local “data” company

• New company promised:– High speed Internet for everyone

– Carrier Grade Voice Services

– Value Added Services available through monthly subscription

• The incumbent was wary but knew they owned the wire infrastructure

– Started pushing hard to increase DSLAM Installations to increase penetration.


The Wireless Broadband Service ProviderThe Wireless Broadband Service Provider

• Received permission to use spectrum

• Deployed Soft Switch Class 4 and Class 5 switching Servers

• Installed Towers, Base Stations and Wireless Back Haul

• Created a Marketing plan for CPE and Value added Services including VoIP

• Deployed Hot Spot and Mesh Networks at key locations


New Company Deployment - Freedom in WavesNew Company Deployment - Freedom in Waves

IPNetwork

PSTN

Mobile

Base Station

Soft SwitchNetwork

Management

Subscriber Terminal

Subscriber Terminal

SS7 ISUP

Soft Switch

Hotspot


Indoor Deployment Desktop(Integral Antenna)

Indoor Deployment(Window Antenna)

EasyST withWiFi “Base”

11

22

33

Subscriber self install --- no truck rolls!Subscriber self install --- no truck rolls!

Airspan AS MAX CPE

The EasyST


Wireless Broadband Access Business Case Metrics Wireless Broadband Access Business Case Metrics

• Costs– Infrastructure

• SoftSwitch

• BSR

– CPE

• Media Gateway

– Software Licenses

– Support

– Training

– Installation

• Revenue– One time set up fees

• CPE Lease or Own

• VoIP

– Monthly subscription fee

• VoIP

• Content Filtering

• Secure e-mail

• Anti-virus/Anti-SPAM

• E-Learning

• Home/Office Video Surveillance

– Hot Spot Subscription & Pay Per use.

– Hot Zones with Mesh and WiMAX72 % less cost than Traditional TDM Network


An incumbent’s “Pre-Emptive Strike!”An incumbent’s “Pre-Emptive Strike!”

• C&W Cayman has launched “NetSpeak”

• VoIP is here as a local incumbent broadband service provider offering

• Wireless broadband deployment accelerates time to market – DSLAM’s Versus Base Stations…


It is not a question of Broadband or VoIPIt is not a question of Broadband or VoIP

It is a question of who will deliver it first to the greatest segment of the

market!

It is a question of who will provide the most compelling bundles!

Owning the wire to the home is no longer an asset… it may even be a liability

Airspan Believes both incumbents and new competitors must deploy BWA to remain competitive.

QoS and Speed to market is key.

Thank You!Thank You!

Connecting The World

CANTO – Freedom in Waves Ian Lenathen Director - Sales Bermuda and Caribbean Region Airspan...

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