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July 20, 2007 DBC confidential. Duplication strictly prohibited.

DigitalBridge DigitalBridge CommunicationsCommunications

Next-generation broadband for South CarolinaOctober 17, 2007

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July 20, 2007 DBC confidential. Duplication strictly prohibited.

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Launched WiMAX in small towns during 2007, attaining 7% penetration in 4 months

•

Acquired 20,000 existing subscribers and 150 million MHz-PoPs of WiMAX spectrum, with 135 million MHz-PoPs pending

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Projected 2007 base case revenue of $11M growing to $104M in 2011

•

Employed capital-efficient, pay-as-you-grow strategy:

‐

WiMAX is fundamentally different from other technologies

‐

DBC is able to deploy economically to smaller, under-served towns

DBC summaryDBC summary

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July 20, 2007 DBC confidential. Duplication strictly prohibited.

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Capital cost per home passed is $50-$75 vs. $800-$1,200

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WiMAX network is built only where sufficient density exists base station-by-base station

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Service differentiates on simplicity of install/activation and portability

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All-IP network permits profitable additions to ARPU

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Simplicity and end-to-end control of activation enables targeting of large customer basesamong universities, visitors (roaming and non-roaming), and military communities

•

WiMAX networks will do for the Internet what cellular networks did for voicecommunications

Why WiMAX will succeed in underserved Why WiMAX will succeed in underserved marketsmarkets

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July 20, 2007 DBC confidential. Duplication strictly prohibited.

WiMAX puts DBC on the path toward personal WiMAX puts DBC on the path toward personal broadband broadband

In-home self-install CPEIn-home self-install CPEIn-home self-install CPEIn-home self-install CPE PC cardPC cardPC cardPC card Embedded WiMAX Embedded WiMAX chipschips

Embedded WiMAX Embedded WiMAX chipschips

Mobile devicesMobile devicesMobile devicesMobile devices

TodayToday Q1 2008Q1 2008 Q4 2008Q4 2008 20092009

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July 20, 2007 DBC confidential. Duplication strictly prohibited.

DBC differentiates itself at three points in theDBC differentiates itself at three points in the

broadband service delivery chainbroadband service delivery chain

Middle MileLow-cost, high-capacity backhaul• Excess fiber capacity• Municipally-supported transport networks• Utility-owned fiber networks• Educational networks• Aggregated content

First Mile Flexible, low-cost back office• Outsource/integrate:

‐ Arise (customer care)‐ Aria (billing)‐ Alvarion (network management)

• Outsource overhead• Scalable – invest as you grow

Last MileNew WiMAX technology to reachend customer• Underserved/exclusive markets• Self-provisioned, fast install• Portable personal broadband• No one between DBC and

its customers

Small Business

Visitor-based network

Schools

MDUs

Military Housing

Single Family Homes

Fiber or WirelessInternet Backhaul

NOC

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July 20, 2007 DBC confidential. Duplication strictly prohibited.

DBC has built a low-cost, scalable, carrier-DBC has built a low-cost, scalable, carrier-grade back office grade back office

InternetOnline Order EntryCustomer Self-Care

Bill PaymentBill Presentment

Inventory ManagementLeads Management

Marketing Campaign TrackingTrouble TicketingKnowledgebase

Corporate E-mail/MessagingScheduling/Dispatch

Sharepoint

AriaSelf-Care

SF.comTrouble-Ticketing

SF.comKnowledgebase

TNIOrder Mgmt

MIS andData warehousing

Online/emailcampaigns

TNI OrderMgmt

Aria Billing &Customer Care

Knowledgebase

TroubleTicketing

Call CenterAnd Inbound/

Outbound Sales

CPE ProvisioningRequests

Bill Presentment

Wholesale Partners

DigitalBridgeCommunications.com

AAA Services

Cisco Secure ACSAAA/RADIUS

Cisco Secure ACS

AAA/RADIUS

Backup NMS server on stand-by

Port 1812 AuthPort 1813 Acct

Network Management

SolarwindsOrion

SolarwindsOrion

SQLServer2005

SNMP

E-mail &

SMS

Alerts

Equinix

Cisco 2851

HWIC Switch

NERACitylink II

RedlineAN-50

NERACitylink II

RedlineAN-50

Tier 2Support

Tier 2Support

Tier 2Support

50Mbs Primary

36Mbs Backup

DBC NOC

Cisco 2821 Cisco 3560 Cisco 3560

Public SwitchedTelephone Network

(PSTN)

794

1 V

oIP

Ph

ones

Internet

Cisco 2851

Cisco 500-24TTSwitch w/ DHCP

1 U -48v Power Supply

1 U 8-port power controller

1 U UPS Diesel Generator

Base Station/FAP SI CPE

Outdoor Pro CPE

WiMax backhaul

Visitor-based Wi-Fi Hotspot

Wi-Fi distribution

Ball State/AfterImage GIS

Propagation Analysis

AcxiomAddress

Data

Pre-qualifiedAddresses

IP VideoConf

Retail Sales/Events

Home-basedCSRs

InventoryMgmt

Shipping/Fulfillment

Idaho FallsWarehouse

UPS QuantumView

ScannedCPEData

Scheduling &DispatchField Technician

30 Mbs to

Internet

Wi2

Subscriber PerformanceOptimization Tool

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July 20, 2007 DBC confidential. Duplication strictly prohibited.

DBC’s primary markets are smaller, under-DBC’s primary markets are smaller, under-served townsserved towns

• Target markets include 1,300 towns (population 20,000-150,000) with 27 million people

• Key “reference” markets will be deployed this fall:

• Homes• College students/staff• Visitors• Military families

Consumer• Small business• Carriers/wholesale

Business

• Muni WiMAX• First responder (Missoula)• Disaster recovery

‐ Redundant links‐ Work-from-home

Government/ Homeland Security

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July 20, 2007 DBC confidential. Duplication strictly prohibited.

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Rapid deployment to under-served parts of South Carolina

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Affordable pricing of broadband voice and data services

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Fair-market lease rates for spectrum

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Commitment to bring broadband to college communities (on- and off-campus)

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Commitment to support educational and strategic goals of local colleges

DBC welcomes the opportunity to partner with DBC welcomes the opportunity to partner with South Carolina to deploy next-generation South Carolina to deploy next-generation broadband broadband

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July 20, 2007 DBC confidential. Duplication strictly prohibited.

Middle Mile• Capacity additions on a variable

basis

First Mile • Capital-efficient, pay-as-you-grow• Flexible, non-legacy systems

Last Mile• Targeted underserved markets• Opportunistic mix of owned,

leased, and “called” spectrum• Differentiated, easy, portable

service

Small Business

Visitor-based network

Schools

MDUs

Military Housing

Single Family Homes

Fiber or WirelessInternet Backhaul

NOC

DBC is well positioned to help bring next-DBC is well positioned to help bring next-generation broadband services to South generation broadband services to South CarolinaCarolina