The WiMAX opportunity
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1 The WiMAX opportunity Nera s positioning Executive Vice President Business Development Nera Networks AS John Knudsen 1 What is WiMAX Fixed 2005 Nomadic 2006 Metrozone Portable/ Mobile 2007/8+ Fixed Outdoor Fixed Indoor Wi-Fi Hotspot Backhaul Enterprise Campus Piconet Mobile Source:Alvarion km/h Soft handover 2 1
2 The WiMAX opportunity Market Regulatory Technology NEED Growing Data demands High speed Internet Inadequate infrastructure Mobility Triple Play Services OPPORTUNITY Telecom Deregulation Frequency Allocations/ Auctions New Carriers entering local access market providing interactive broadband services using high-speed wireless networks ENABLER Standarisation (WiMAX) Intel Marketing Lower Cost Equipment WIFI Proliferation OEM Activity 3 WiMAX - High market growth expectations WiMAX equipment tops $142M in 2005, surging to $1.6B in 2009 From an almost non-existent market in 2004, worldwide WiMAX equipment revenue surged 759% in 2005, hitting $142.3 million, according to Infonetics Research s quarterly WiMAX and Outdoor Mesh Network Equipment report. Infonetics forecasts the worldwide WiMAX equipment market to continue expanding rapidly, with a 5-year unit CAGR of 139% between 2005 and 2009, when the market reaches $1.6 billion. ( Infonetics Research, March 8, 2006 ) 4 2
3 Wireless Technologies 1Gbps 100Mbps UWB General technologies: xdsl Cable Modem Fiber Wireless (2 Technologies) 10Mbps 1Mbps 100kbps W-PAN Bluetooth WiFi IEEE WiMAX IEEE W-WAN 3G/IMT2000 Inside Room Inside Building Low Mobility Outside High Mobility Outside 5 What is WiMAX and some advantages WiMAX is a wireless access technology Based on IEEE standard (human driven) WIMAX Forum consist of approx. 500 members (company driven), has momentum and will set the agenda Standardisation Low frequency bands, hence better reach New technology compare to 3G (higher capacity) IP based, hence lower CAPEX in Corenet CPE will be selfinstalled and for nomadic use Full mobility is expected end 2007/2008 (main driver for market growth) Technology - major changes and decisions have been taken this spring (TDD vs FDD) 6 3
4 WiMAX Network Architecture R1 Network Interoperability Interfaces R3 Sevice Provider IP Core Network Mobile Terminal Content Portable Terminal Fixed Terminal Mobile WiMAX Base Station Access Service Network Gateway ASN-GW AAA Server MIP HA Operation IMS Service Billing User CPE Access Service Network Core Service Network 7 What does this mean for us We have followed this market for many years, now we see it starts to pick up, ref OI 2006 We can utilize market and sales channels from PtP WiMAX has the potential to become very important for Nera s future business as a system integrator Not only product sale, but also services and additional business 8 4
5 What does Nera do today within WiMAX access System integrator Turnkey responsibility System design Complete portfolio Own products 3 party products Maintenance and services! Local presence is needed Local partners A total offering 9 A very competetive portfolio and future road map State of the art products Cover all needs within BST & CPE Well aware of the technical issues (e.g. FDD vs TDD) Road map towards full mobility Own brand Fully integrated with NMS/NetMaster (Network Management System) 10 5
6 Nera has recently won several WiMAX contracts/frame agreements, with a potential OI Q MNOK+ Recent Nera WiMAX cases Large European Regional and City Networks Very ambitious WiMAX projects Build out of a complete network within the next 2-3 years Nera turnkey responsibilities North Africa Wireless Network One of the largest WiMAX contracts to date Nera has designed, installed, implemented and is to provide ongoing service for the customers network Other Nera wireless broadband Nera has delivered wireless BB networks to more than 120 municipalities in Norway Nera owns frequences in 3,5 GHz, 10,5 GHz og 18 GHz Nera has delivered the first WIMAX networks in Norway Nera has the broadest wireless radio transmission experience and competence in Norway through its build-out of the defence and broadcast network 11 Why will Nera succeed Point-to-Point business has several synergies with Point-to-MultiPoint business (WIMAX) Sales & Market channels System design Future netwoks will consist of both PtP(Evolution) and PtMP(WiMAX) Nera has strong competence and reference cases within transmission Good growth prospects Project structure suits Nera 12 6
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