The Wild World of Wireless Broadband and WiMAX According to Alvarion. Patrick Leary AVP Marketing Alvarion, Inc. Copyright Alvarion Ltd.
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1 The Wild World of Wireless Broadband and WiMAX According to Alvarion Patrick Leary AVP Marketing Alvarion, Inc. Copyright Alvarion Ltd.
2 Contents Alvarion at a Glance Foundation Comment Market Numbers WiMAX Vision and Roadmap WiMAX Customer Examples Summary 2
3 Alvarion at a Glance
4 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 to e 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:
5 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
6 Global Customer Base OEM Partners: Siemens Lucent Alcatel Nera Technology Partner: Intel Customers: Carriers (incumbent, cellular, alternative) ISPs and regional operators Local presence in 23 locations Over 2,000,000 units deployed More than 130 countries 6
7 Alvarion Product Families Alvarion Product Portfolio Total Coverage LMDS 26/28 GHz WALKair BreezeNET 10.5 GHz 5GHz BreezeMAX BreezeACCESS 3.5 GHz US MMDS 2.4 GHz MGW / emgw UltraWAVE 1.9 GHz Breeze MHz Cellular Residential SOHO MTU SME MBU LE 7
8 Foundation Comment
9 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
10 Market Numbers
11 Some Wireless Broadband Market Numbers $500M industry globally in 2004, up from $350M in Alvarion is $200M of this. Approx. $125M sold BWA hardware sold in North America in Up from $85M in $1.4B in service revenue for operators globally in (Maravedis, March 2005) $135M in service revenues in the U.S. in (Maravedis, March 2005) 11
12 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% 19% Municipalities Community broadband, leased line replacement, first responder mobility, specialty applications WISPs Broadband Internet access 6% Enterprises Bridging, SCADA, special applications (e.g. video surveillance, transportation control systems, ROVs, etc.) 12
13 Market Revenues by Frequency Equipment Revenues by Frequency 5GHz 24.50% 10.5GHz 3.20% 700MHz 0.60% 900MHz 3.30% 1.9GHz 5.30% 2.3GHz & GHz 12.80% 2.4GHz 9.30% 3.5GHz 41.10% Maravedis, March
14 Market Pricing Base Stations Base Station Shipments 12, k 10,000 8,000 6, k 4, k 3.8k 2, k Base Station $80,000 $72,000 $64,800 $63,180 $50,000 $30,648 (average street price) Maravedis, March
15 Market Pricing - CPE CPE Shipments 900, , k 700, , , , , , ,000 16k 88k 150k 187k 225k Average CPE $1,500 $1,275 $1,148 $975 $878 $537 (street price) Maravedis, March
16 WiMAX
17 Broadband Wireless Sweet Spot 17
18 Wireless Networks Will Coexist 18
19 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, The event marked the 1 st public demonstration of Intel s chip embedded into a working CPE 19
20 What WiMAX Won t 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
21 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
22 1 BreezeMAX Road Map Licensed Bands 22
23 Alvarion s s WiMAX Vision 2004 Fixed BWA License and Licensed-exempt exempt Spectrum: 2GHz 6GHz Fixed outdoor Subscribers National Operators, Competitive Carriers and ISPs. Target subscribers: - Residential users - Enterprises Voice, Data & leased line services Product Availability 2006 Portable BWA Licensed spectrum Fixed, Self-Installed CPEs,, Portable CPEs Fixed Network Operators, Mobile Network Operators, Competitive Carriers & ISPs Target subscribers: - Residential users - Enterprises - Business users Voice & Data services 2007 Mobile BWA Licensed spectrum Mobile Subscribers - PCMCIA cards - Embedded WiMAX chip (Notebooks, PDAs) Fixed Network Operators, Mobile Network Operators & Competitive Carriers Target subscribers: - Residential users - Business users Voice & Data Services 23
24 BreezeMAX Frequencies Road Map /05 Q3/04 3.3GHz, FDD Q4/05 3.5GHz, FDD prototype 2.5/2.3GHz Q1/ GHz, FDD 5.8GHz, TDD 24
25 BreezeMAX 3500 Road Map 8/04 Q1/05 Q3/05 Q1/06 Version 1.0 Version 1.5 Version 2.0 Version CPE Base Station BreezeMAX 3500 WiMAX Platform 3.5GHz FDD Duplexing CH BW: 3.5MHz, 1.75MHz Macro BS Data services Outdoor CPE Released! BreezeMAX 3500 Micro BST platform Voice and Data Services Voice Gateway (POTS) Networking GW (router + WiFi AP) BreezeMAX 3500 Increased Sector capacity Increased scalability (Multi RF per modem) CPE based on Intel s s WiMAX Chip BreezeMAX 3500 High power AU 4 th order diversity OFDMA WiMAX Certification Self Install 25
26 BreezeMAX Licensed Exempt Road Map Base Station WiMAX Platform 5GHz(5.8GHz) TDD Duplexing Micro BST Q1/06 Version 1.0 BreezeMAX 5000 Data and voice services Q2/06 Version 1.5 Additional Licensed Exempt Frequencies Increased scalability (Multi RF per modem) Base Station synchronization Interference mitigation CPE CPE based on Intel s s WiMAX Chip Outdoor CPE Voice Gateway Data Router + WiFi 26
27 BreezeMAX Portable/Mobile 2006 Version Version 2.0 CPE Base Station e compliant Planned frequencies in the 2.0GHz 3.8GHz range Macro BST Data & Voice services Portable e compliant Macro BST Data & Voice services Mobile 27
28 BreezeMAX Deployment Map 50 Trials/pilots in North America, Europe, Latin America, APAC and Africa Commercial deployments in Europe, APAC and CALA 28
29 Altitude Telecom - Wireless CLEC First WiMAX-ready network in 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 France 29
30 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 WALKair tm and BA OFDM network Chose Alvarion s WALKair 1000 for multi-service BWA to high-end SMEs in 72 cities Started expansion network to provide broadband to rural and suburban areas in Adalusia + Catalonia provinces underserved by wireline DSL Chose BreezeMAX tm WiMAX-ready platform to deliver multiple services to both business and residential markets 30
31 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 20 th Century was for wireline; 21 st Century is for wireless and Alvarion will lead the market to widespread adoption of WiMAX standard solutions. 31
32 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.
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