Executive Summary.

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Marybeth White
5 years ago
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1 Executive Summary

2 Broadband is the great infrastructure challenge of the 21st century Federal Communications Commission. As early as 2012, the FCC predicted that a bandwidth shortage would threaten the future of mobile communications. This prediction has come to pass and has motivated the introduction of new technologies in search of a solution. These new technologies are defining the next generation of mobile broadband solutions becoming identified as the 5th Generation or 5G. Though the 5G standards are primarily reflective of the growth and enhancements related to the cellular industry, there are other significant benefits and features to be shared by this same infrastructure including the highly touted Internet of Things and its influence on the development of Smart Cities. The International Telecommunications Union ( ITU ) has drafted initial standards to be included in the definition of a 5G network such as speed and latency. The current ITU draft defines 5G speeds to be no less than one gigabit up and less than three milliseconds of latency. Experts have determined that to achieve these features, both transmission and receiver technology would need to advance beyond today s networks. What does this mean to the carrier s current plans to deliver 5G services to the U.S.? It means that the carriers must be responsive to a successful migration path from its current 4G networks to a 5G network while avoiding the same short comings that occurred with 4G. Wytec introduces its own strategy designed to embrace a collaboration of technologies and key partnerships involving carriers, municipal government and specialized financial structuring. The Wytec Strategy In early 2014, Wytec introduced millimeter wave technology as a key component to the 5G development puzzle. As a result, the Company developed three (3) millimeter networks designed to cost effectively transmit wi-fi data traffic through a network of small cell nodes located on city utility poles. This network architecture as defined in a 2014 white paper by Signals Analytics called Street Light Small Cells-A Revolution in Mobile Operator Network Economics called Street Lights Small Cells, reports that this neutral host architecture could reduce carrier delivery cost by more than 56%. In 2017, Wytec International received a patent approval from the USPTA for its LPN-16 Small Cell Node capable of delivery a multi-spectrum neutral host carrier delivery utilizing utility poles as its distribution to further support Smart City 5G initiatives. Smart Cities The term 5G and Smart Cities has been touted aggressively in the news and may be purposely confusing to the public by both carriers and city government striving to associate themselves to next generation technology. It is essentially every city government s goal in America to be awarded the gold star of a Smart City. However, this gold star thus far, has not materialized and remains a challenge to virtually every city in the U.S. due to many factors. Though carriers may be touting they are under 5G trials and cities are broadly announcing their smart city initiatives, neither are realistically producing the results associated with these terms. Some cities as well as carriers are beginning to understand that to truly obtain the full benefits of a 5G network or the development of Smart City will take a collaborative effort by multiple entities and technologies. The collaborative effort must be founded on a partnering principal that can embrace a neutral host mentality for the benefit of the whole, not just for the benefit of one. Smart Cities are poised to potentially save governments, people and companies up to $5 Trillion Annually 2

3 Wytec s principal business strategy is directed towards a teaming objective that truly benefits all parties. Cities have utility poles and underutilized dark fiber, carriers have spectrum, technology companies have next generation technology. All these components are needed for developing a Smart City. However, Smart Cities are made up of both residences and businesses. While residences reside in homes, businesses reside in buildings. Tenants rely heavily on high speed broadband services capable of supporting next generation applications thus making Smart Buildings a key component to a Smart City. Smart Buildings Smart Buildings represent the essential core ingredient in supporting the development of a Smart City. Without Smart Buildings capable of supporting its tenants, workers are less productive and unable to work at their peak performance resulting in work force inefficiencies and lower profitability. This is further expanded into a weaker local, state and national economy. The bottom line is that Smart Cities Need Smart Buildings. Smart Buildings consist of multiple characteristics including but not limited to smart applications that support Energy Management, Smart Lighting, Inbuilding Security, high speed Internet, cellular enhancement, and critical fail-over services are a few that define a Smart Building. The core element supporting these applications is a low latency, ultrahigh-speed symmetrical Internet connection. Wytec has built its business model to accomplish two basic principles: 1) Utilize its patented technology ( the LPN-16 ) as being a key participant in a collaboration effort with others for building Smart Cities that can host 5G services and 2) provide these services to the tenants of Smart Buildings. To effectively accomplish this model, Wytec has developed three business brands. The Wytec Brands Wytec International, Inc. supports three (3) brands known as 1) Wytec Business, 2) Wytec Enterprise and 3) Wytec Cities. Each brand has been designed to support specific products/services utilizing its technologies and partnerships. Wytec Business was formed to address the small to medium size business making up more than 22 million businesses representing more than 50% of America s Gross Domestic Product (GDP). This business sector generates more than $300 Billion in annual revenues from the information and telecommunications industry alone. Wytec has developed a multi-marketing channel division to present its products and services through its Wytec Business Brand within this market to include the following products and services: Products & Services FlexSpeed Wytec offers an asymmetrical, symmetrical and variable speed Internet service utilizing a multitude of technologies. FlexSpeed offering both primary and fail-over Internet connection utilizes both millimeter wave fixed wireless and G.Fast technologies to host a portfolio of variable speed services allowing the customer to custom select their Internet connection speeds according to their application needs. Voice Over Internet Protocol (VoIP) requires strong upload Internet speeds to work at maximum efficiency. Wytec offers an asymmetrical, symmetrical and variable speed Internet service utilizing a multitude of technologies. 3

4 4G LTE Fail-Over Fail-over services (also referred to as backup or business continuity services), provide for a continuous Internet connection to the customer in the event that an interruption of Internet service occurs. Wytec provides its fail-over service via a wholesale relationship with all four major carriers and designated as a Mobile Virtual Network Operator (MVNO) allowing Wytec to independently contract with the carriers for any services operating on its mobile networks. 4G LTE Fail-over is an excellent back-up for small businesses not needing greater than twenty-five (25) Mbps as a back-up to their existing Internet connection. 5G Fail-Over Wytec also offers a 5G Fail-over service for larger Enterprise operators needing fail-over protection in excess of 100 Mbps. We accomplish this utilizing millimeter wave technology on a single customer basis. The same 5G fail-over service is offered to a multi-tenant operation utilizing G.Fast technology as mentioned above. SmartDAS SmartDAS is a service that s designed to strengthen a cellular signal within a building when the carriers outside signal becomes weakened due to building penetration and other challenges. This is a significant issue with over five (5) million buildings across the United States. According to Markets and Markets, the global In-Building market is projected to reach $13.74 billion by 2023 with a U.S. market reaching in excess of $1.2 Billion. As reported by Signals Analytics in our 2018 Valuation Report, the $1.2 Billion U.S. In-Building Market between 2018 to 2023 will be primarily addressed with Signal Boosters, Small Cells and Distributed Antenna Systems or ( DAS ). Due to the growing expense of DAS and other factors, Signals forecasts that DAS will begin to gradually lose its dominance in the market from $458 Million in 2018 to $338 Million by The same Report indicates that Small Cells (Wytec s solution) will grow from $343 Million in 2018 to $501 Million in Further analysis by Signals suggest the Small Cell in-building market could be substantially larger according to the amount of square feet without an adequate cellular coverage. Our Report suggests the Wytec solution (Cel-Fi) could address a market exceeding $26.2 billion. Sales and Marketing In May of 2018, Wytec initiated a comprehensive marketing program to introduce both its FlexSpeed and SmartDAS services. The marketing plan included the hiring of eight (8) highly specialized executive sales personnel with more than fifty (50) years of collective experience in both cellular enhancement and highspeed Internet services. To date, our sales group has generated $13,313,664 in sales in less than six (6) months representing several high-profile projects such as the Johnson Space Center in Houston, Texas, The Stratosphere in Las Vegas, Nevada, Baptist Health System, The Grand Hyatt Hotel in San Antonio, Texas and more than sixty four (64) other projects in various stages of the sales cycle including completed purchase orders. According to our original five (5) year revenue forecast, our objective was to generate sales of both SmartDAS and FlexSpeed within 43 projects for a total of $3,260,351 by end of Though the funding of the projects may not obtain the total forecasted revenue of 2018, Wytec is well on its way to not only meet but exceed its 2018 sales forecast. In addition to survey requests for these buildings, Wytec has received significant interest in the deployment of its FlexSpeed services within the same buildings, thereby providing additional support to Wytec s future business forecast. Total Sales $13,313,

LPN-16 Small Cell Mobile operators have seen data traffic on their networks increase year after year and face significant challenges on the reliability of the current 4G network.

5 LPN-16 Small Cell Mobile operators have seen data traffic on their networks increase year after year and face significant challenges on the reliability of the current 4G network. This is due to an exponential rise in cellular usage created by additional applications utilizing video streaming as a service. Most recently new city, state and federal regulations involving a host of public safety concerns are being applied to America s cities and the buildings that host their tenants, visitors and special events. Additionally, more than three-fourths of the world s mobile data traffic will be video, the number of mobile devices per capita will be 1.5, and the total number of smartphones and tablets will be more than 50 percent of global devices and connections. Today s 4G networks operate primarily with what is known as a macro-cell infrastructure, whereby cellular signals are distributed from large towers throughout large dense populations. As additional subscribers aggregate within the same coverage areas, the macrocell infrastructure is unable to support the increasing number of users and appears in the form of dropped calls and slower speeds. A predominate technology solution has most recently arrived, called Small Cells and is being touted as the latest solution in resolving the coverage issue. Small Cells can be placed in many locations that macro-cells cannot such as utility poles. Thus, manufacturers have tooled up to build multiple variations of a small cell at the request of the carriers. While this is being developed, other issues have arisen such as utility pole access rights and the cost of placing a small cell on a utility pole structure. Though carriers are gaining ground on utility pole access rights through government mandates, carriers still face the economics of small cell placement. Carriers have a single host approach in placing their small cells to secure market share in specific coverage areas. This approach, while supporting a market share strategy, challenges a viable return on investment ( ROI ) model. Additionally, this ROI model only works when small cells are placed in dense high-income areas and does little to benefit an entire city. Thus, underserved areas are not included making it highly unfavorable to city managers who must act on behalf of all its constituents, including public safety and first emergency responders. According to Cisco, by 2021, global network traffic will increase sevenfold, a 47% compound annual growth rate from

Wytec s Neutral Host Approach On October 31, 2017, the United States Patent Office granted Wytec International, Inc. a utility patent on its Small Cell technology called the LPN-16.

environment for the cost savings benefit to multiple carriers while simultaneously becoming a significant revenue generator to cities and municipalities desiring a total citywide coverage for all of

8 billion in profit. This contrasts with a single mobile operator model forecasting approximately $5.8 Billion in revenue and $950 million in profit.

6 Wytec s Neutral Host Approach On October 31, 2017, the United States Patent Office granted Wytec International, Inc. a utility patent on its Small Cell technology called the LPN-16. The patent described as an upgradeable, high data transfer speed, multichannel transmission system, is immensely flexible with unlimited network capacity capable of supporting a neutral host environment for the cost savings benefit to multiple carriers while simultaneously becoming a significant revenue generator to cities and municipalities desiring a total citywide coverage for all of its residents including the underserved. When fully deployed, the estimated 1.6 million LPN- 16 neutral host network is forecasted to generate over $10 billion in revenue and approximately $3.8 billion in profit. This contrasts with a single mobile operator model forecasting approximately $5.8 Billion in revenue and $950 million in profit. Wytec believes this stark contrast of opportunity will be a compelling motivator to the mobile operators in the acceptance of the LPN-16 to their Small Cell needs. Wytec is preparing to launch a proof of concept pilot test in late 2018 followed by two (2) additional phases designed with carrier contract participation in 2019 thru LPN-16 Patent Award LPN-16 Wytec s 5G network architecture includes the benefit of millimeter wave wireless transmission for both its fixed wireless fail-over and its FlexSpeed symmetrical Internet services. Public Listing Wytec, as indicated on its website, investor-relations/sec-filings, has filed and received its Notice of Effectiveness (S-1 SEC Registration) providing the Company the approval to list its common shares on a public market. The benefit of this is that Wytec can choose when to list its shares and has no time constraint on when to list. In addition to our approved S-1 Registration Statement, Wytec has most recently engaged Drexel Hamilton LLC, a prominent veteran owned investment banking institution, to provide various financing facilities including underwriting Wytec s initial public offering ( IPO ). Of the determining factors for selecting a listing date for Wytec shares, both the closing of sales for Wytec s products and services along with the success of Wytec s LPN-16 proof of concept pilot test are key factors. Wytec is in the process of completing its LPN-16 planning assumptions and expects to enter into pilot testing within the second to third quarter of For a more detailed review of the Company, we invite you to view our latest Briefing at For more information about the Company, visit

Testimony of Benjamin Aron Director, State Regulatory and External Affairs CTIA Support for Arizona House Bill 2365 February 7 th, 2017

Testimony of Benjamin Aron Director, State Regulatory and External Affairs CTIA Support for Arizona House Bill 2365 February 7 th, 2017 Before the Arizona House Commerce Committee Chair Weninger, Vice-Chair