The Wild World of Wireless Broadband

and WiMAX According to Alvarion

Patrick Leary
AVP Marketing
Alvarion, Inc.
© Copyright Alvarion Ltd.
Contents

Alvarion at a Glance

Foundation Comment

Market Numbers

WiMAX Vision and Roadmap

WiMAX Customer Examples

Summary

2
Alvarion at a Glance
At a Glance

Worldwide leader in wireless access

Over 30% market share of global BWA market
Largest installed base - over 2,000,000 units
deployed in more than 130 countries
Forefront of wireless standards & leadership
from 802.11 to 802.16e
Providing solutions for extending mobile
coverage and specialized CDMA and
next generation networks
Local presence in 23 locations:
Australia, Brazil, China, Czech Republic, France, Germany, Hong Kong,
Ireland, Israel, Japan, Mexico, Nigeria, Philippines, Poland, Romania,
Russia, Singapore, South Africa, Spain, UK, Uruguay, USA (California and
Florida)
Employees: 900 with around 400 in R&D
Established: 1992
4
At a Glance

Global solutions provider of three metro wireless technologies:

wireless broadband, WLL and cellular
Industry consolidator
BreezeCOM+ Floware + InnoWave + interWAVE
Diversified customer base & outstanding partner network
including Alcatel, Lucent, Siemens, Nera, and over 200 local
partners
Strong financial position
3-year revenue CAGR of 30%
Q1/05: revenues of $57.2M
15 consecutive quarters of margin improvement (45%)
Profitable for 6 quarters
Around $127M in cash

5
Global Customer Base

OEM Partners:
Siemens
Lucent
Alcatel

Nera

Technology Partner:
Intel

Customers: Local presence in 23 locations

Carriers (incumbent, cellular, alternative) Over 2,000,000 units deployed
ISPs and regional operators More than 130 countries
6
Alvarion Product Families

Alvarion Product Portfolio – Total Coverage

LMDS 26/28 GHz WALKair ®

10.5 GHz
BreezeNET ®

5GHz BreezeMAX™

3.5 GHz BreezeACCESS®

US MMDS

2.4 GHz MGW / eMGW™

UltraWAVE
1.9 GHz

Breeze 2000™
800 MHz

Cellular Residential SOHO MTU SME MBU LE

7
Foundation Comment
The Great Equalizer of Broadband Technology

Wireless broadband is the “great equalizer” of

broadband technologies. It enables even those
without twisted copper, coaxial cable, fiber, or
satellite to enter into competition for the
broadband dollar. It therefore expands the
definition of who can be a carrier.

9
Market Numbers
Some Wireless Broadband Market Numbers

$500M industry globally in 2004, up from $350M in 2003.

Alvarion is $200M of this.

Approx. $125M sold BWA hardware sold in North America

in 2004. Up from $85M in 2003.

$1.4B in service revenue for operators globally in 2004.

(Maravedis, March 2005)

$135M in service revenues in the U.S. in 2004. (Maravedis,

March 2005)

11
What Type Operators Are Deploying Today

68% Carriers & IOCs - Incumbent Telcos, Cellular

Operators, Alternative Carriers, Utilities
Carrier-grade data & voice: Wireless DSL, leased lines,
fiber replacement and base station feeding

7% Municipalities
Community broadband, leased line replacement, first
responder mobility, specialty applications
19% WISPs
Broadband Internet access

6% Enterprises
Bridging, SCADA, special applications (e.g. video
surveillance, transportation control systems, ROVs, etc.)

12
Market Revenues by Frequency

Equipment Revenues by Frequency

700MHz 900MHz 1.9GHz

0.60% 3.30% 5.30%
10.5GHz 2.3GHz &2.5-
3.20% 2.7GHz
5GHz
12.80%
24.50%
2.4GHz
9.30%

3.5GHz
41.10%

Maravedis, March 2005

13
Market Pricing – Base Stations
Base Station Shipments

12,000
10.3k

10,000

8,000

6,000 4.7k
3.8k
4,000
2.65k
1.66k
2,000 628

1999 2000 2001 2002 2003 2004

Base Station $80,000 $72,000 $64,800 $63,180 $50,000 $30,648

(average street price)
Maravedis, March 2005

14
Market Pricing - CPE
CPE Shipments

900,000
785k
800,000
700,000
600,000
500,000
400,000
300,000 225k
187k
200,000 150k
88k
100,000 16k

1999 2000 2001 2002 2003 2004

Average CPE $1,500 $1,275 $1,148 $975 $878 $537

(street price)
Maravedis, March 2005

15
WiMAX
Broadband Wireless “Sweet Spot”

17
Wireless Networks Will Coexist

18
WiMAX is Here….(almost)

Chips have been announced: Intel, Fujitsu, Wavesat

Lab has been set: Cetecom, Spain
Profiles are established: 3.5GHz, 2.5GHz, 5.8GHz
Products have been launched: Alvarion, Redline, Airspan, etc.
Intel’s Ron Resnick, President
of the WiMAX Forum, shares
a VoIP call over Intel’s new
PRO/Wireless 5116 Wireless
Broadband Interface
embedded in a working
BreezeMAX CPE with Dr. Mo
Shakouri, Alvarion’s AVP
Business Development and
WiMAX Forum’s Vice
President at the Cetecom’s
lab in Malaga, Spain on April
13, 2005.
The event marked the 1st
public demonstration of
Intel’s chip embedded into a
working CPE

19
What WiMAX Won’t and Will Do

WiMAX….
Won’t deliver 70Mbps in a 30 mile cell NLOS
Won’t repeal the laws of physics and thereby not require an external antenna
Won’t have cheaper fixed modems that cable or DSL
Won’t get your whites whiter and or make your broccoli taste better

But it will…
Will provide 10Mbps in a 3km dense urban cell or about a 10km rural cell
Will enable indoor self-install in licensed bands and/or very low frequency
versions
Will end up with a “zero cost” CPE when it goes fully metro mobile
Will provide you with more choice and increase your personal and professional
productivity
Will foster a means of achieving major OPEX improvements for businesses

20
BreezeMAX Advantages

Expertise in OFDM technology

Working with OFDM technology for over 5 years
Already proven NLOS capabilities
Strategic Relationship with Intel
Close collaboration on chip for CPE
Chosen by Intel as system house to test chip
Time-to-market advantage
Differentiation from Competitors
BreezeMAX platform designed from ground up
vs. adapting existing product
Flexible architecture to support future enhancements
First to market enables valuable field experience

21
1

BreezeMAX Road Map

Licensed Bands

22
Alvarion’s WiMAX Vision

Product Availability
2004 Æ 2006 Æ 2007 Æ
Fixed BWA Portable BWA Mobile BWA
Licensed spectrum
License and
Licensed spectrum Mobile Subscribers
Licensed-exempt
Fixed , Self-Installed - PCMCIA cards
Spectrum: - Embedded WiMAX
CPEs, Portable CPEs
2GHz – 6GHz Fixed Network chip (Notebooks,
Fixed outdoor Operators, Mobile PDAs)
Subscribers Network Operators, Fixed Network
Competitive Carriers Operators, Mobile
National Operators, Network Operators &
& ISPs
Competitive Carriers Competitive Carriers
Target subscribers:
and ISPs. Target subscribers:
- Residential users
Target subscribers: - Residential users
- Enterprises
- Residential users - Business users
- Business users
- Enterprises Voice & Data
Voice & Data
Voice, Data & leased Services
services
line services 23
BreezeMAX Frequencies Road Map

2004 2005 2006

4/05 Q1/06
Q3/04 3.3GHz, FDD Q4/05 3.6-3.8GHz, FDD
3.5GHz, FDD prototype 2.5/2.3GHz 5.8GHz, TDD
…

24
 BreezeMAX 3500 Road Map

8/04 Q1/05 Q3/05 Q1/06

Version 1.0 Version 1.5 Version 2.0 Version2.5
Version 2.5
BreezeMAX 3500 BreezeMAX 3500 BreezeMAX 3500 BreezeMAX 3500
WiMAX Platform Micro BST platform Increased Sector High power AU
Base Station

capacity
3.5GHz 4th order diversity
Increased
FDD Duplexing OFDMA
scalability (Multi
CH BW: 3.5MHz, Voice and Data RF per modem)
1.75MHz Services
Macro BS
WiMAX Certification
Data services

Outdoor CPE Voice Gateway CPE based on Self Install CPE

(POTS)
d ! Intel’s WiMAX Chip @3.5GHz

s e Networking GW
CPE

le a (router + WiFi AP)

Re
25
BreezeMAX Licensed Exempt Road Map

Q1/06 Q2/06
Version 1.0 Version 1.5
BreezeMAX 5000
WiMAX Platform Additional Licensed Exempt
Frequencies
Base Station

5GHz(5.8GHz)
TDD Duplexing Increased scalability (Multi RF
Micro BST
per modem)

Data and voice services Base Station synchronization

Interference mitigation

CPE based on Intel’s WiMAX Chip

Outdoor CPE
CPE

Voice Gateway
Data Router + WiFi

26
BreezeMAX Portable/Mobile

2006 2007
Version 1.0 Version 2.0

802.16e compliant 802.16e compliant

Base Station

Planned frequencies in the

Macro BST
2.0GHz – 3.8GHz range
Data & Voice services
Macro BST
Data & Voice services

Portable Mobile
CPE

27
BreezeMAX Deployment Map

50 Trials/pilots in North America, Europe, Latin America, APAC and

Africa
Commercial deployments in Europe, APAC and CALA
28
Altitude Telecom - Wireless CLEC

First WiMAX-ready network in France

France in 3.5GHz
Offers data and VoIP services
to SME & businesses
Upon Forum certification,
Altitude will target residential
customers
Deployment Status: tens of
BSTs already deployed and
target for 100 BST by mid 2005

www.altitudetelecom.fr 29
Iberbanda – Access CLEC

Spain

Spanish alternative carrier

Main investors – El Corte Ingles, Prisa Group
Granted nationwide license for 3.5GHz network
Addresses suburban areas underserved by DSL
and high speed data services for SME’s
Operating large WALKairtm and BA OFDM network
2000 - Chose Alvarion’s WALKair 1000 for
multi-service BWA to high-end SMEs in 72 cities
2003 - Started expansion network to provide broadband
to rural and suburban areas in Adalusia + Catalonia provinces
underserved by wireline DSL
2004 - Chose BreezeMAXtm WiMAX-ready platform to deliver multiple
services to both business and residential markets

www.iberbanda.es 30
Summary

BWA is becoming a mainstream access technology

Third leg of the access stool with DSL, Cable
WiMAX won’t get your whites whiter or do your dishes,
but…
WiMAX standards accelerating BWA adoption
Hole filling by ILECs, network building by CLECs
WiMAX leads to portable and mobile solutions and to a
new converged broadband network
Customers are starting to deploy pre-WiMAX and
WiMAX-ready systems

20th Century was for wireline; 21st Century is

for wireless … and Alvarion will lead the
market to widespread adoption of WiMAX
standard solutions. 31
 Thank you

32
Alvarion, BreezeCOM, BreezeMAX, BreezeNET, BreezeMANAGE, BreezeACCESS, BreezeLINK, BreezePHONE, WALKair, WALKnet, MGW, eMGW are either registered trademarks, tradenames or service marks of Alvarion Ltd.