Converged VoIP Mesh Networks

1
Converged VoIP Mesh Networks

• Ron Sege, President and CEO, Tropos
  Networks October, 2005

2
Tropos Networks

• Anytime, Anywhere Broadband Access.Fast. Low
  Cost. Simple.

Self-healing Wi-Fi Mesh
Tropos Mesh Router with PWRP
Tropos Control EMS
3
Wi-Fi Device Explosion Continues
11Mbps
54Mbps
150Mbps
Source IDC
140M Wi-Fi Client Devices
Source Instat
Projected 160M Cellular Phones with Wi-Fi
Source IDC
120K Wi-Fi Hot Spots
4
Mesh Takes Wi-Fi to Metro Scale

• Wi-Fi originally designed as a wireless extension
  for indoor LANs
• Mesh makes Wi-Fi effective outdoors over large
  areas
• WiMAX will complement Metro Wi-Fi for fixed
  applications today and mobile ones tomorrow

WiMAX
Wi-Fi
Wi-Fi
Speed
UWB
3G/UMTS
2G
PAN
LAN
MAN
WAN
5
Metro-Scale Mesh Deployments Today
250 Paying Customers in 18 Months
Whistler, BC
Vancouver, BC
Federal Way, WA
Moorhead, MN
McMinnville, OR
Gilbert, MN
Malden, MA
Chaska, MN
Nampa, ID
Nantucket, MA
Washtenaw County, MI
Jamestown, NY
South Bend, IN
Croton-on-Hudson, NY
Livermore, CA
Las Vegas, NV
Healdsburg, CA
Pacifica, CA
Rockaway Valley, NJ
Philadelphia, PA
Boulder City, NV
Brocton, IL
Baltimore, MD
Half Moon Bay, CA
Aspen, CO
Alexandria, VA
San Mateo, CA
Milpitas, CA
Cerritos, CA
Burlingame, CA
Greensboro, NC
Fullerton, CA
Lompoc, CA
Jackson, TN
Tulsa, OK
Newport Beach, CA
Cedar Island, NC
Los Angeles, CA
Franklin, TN
Lynchburg, TN
Paris, KY
Oklahoma, OK
Laguna Beach, CA
Encinitas, CA
Atlanta, GA
Roswell, GA
Frisco, TX
Addison, TX
Anaheim, CA
Montgomery County, AL
Granbury, TX
Dallas, TX
Lafayette, LA
Grand Prairie, TX
Pensacola, FL
Baton Rouge, LA
Panama City, FL
Houston, TX
New Orleans, LA
St. Cloud, FL
Corpus Christi, TX
St. Petersburg, FL
Miami Beach, FL
Metro-scale Wi-Fi is Now a Fact
6
The Metro-Scale Interest Tomorrow
Major US Cities Considering Metro-ScaleWi-Fi in
2005/2006

• US Market Momentum
• gt190 cities known by Tropos to have purchasing in
  process for metro-scaleWi-Fi in 2005
• 40 City RFPs due for release from 7/1/05 1/1/06

Fairfax, VA
Fargo, ND
Fort Worth, TX
Fresno, CA
Galveston TX
Honolulu, HI
Houston, TX
Indianapolis, IN
Jacksonville, FL
Kansas City, MO
Las Vegas, NV
Los Angeles, CA
Maui, HI
Memphis, TN
Miami, FL
Milwaukee, WI
Minneapolis, MN
Nashville, TN
New Orleans, LA
New York, NY
Oklahoma City, OK
Omaha, NE
Orlando, FL
Pasadena, CA
Philadelphia, PA
Phoenix, AZ
Pittsburgh, PA
Portland, OR
Sacramento, CA
San Antonio, TX
San Diego, CA
San Francisco, CA
San Jose, CA
Seattle, WA
St. Louis, MO
Tucson, AZ
Tulsa, OK
Washington, D.C.
Wichita, KS
Albuquerque, NM
Anaheim, CA
Atlanta, GA
Austin, TX
Baltimore, MD
Bellevue, WA
Boca Raton, FL
Boston, MA
Charlotte, NC
Chattanooga, TN
Chicago, IL
Cincinnati, OH
Cleveland, OH
Columbus, OH
Corpus Christi, TX
Dallas, TX
Denver, CO
Detroit, MI
El Paso, TX
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Metro-Scale Mesh is Worldwide

• Installations in 29 countries,and growing
• Activities in APAC, EMEA and CALA
• Growing international ecosystem

Iceland
United Kingdom
Canada
Kosovo
Greece
Italy
Turkey
Spain
Korea
China
Japan
United States
Algeria
Lebanon
Malta
Iraq
Puerto Rico
Taiwan
Kuwait
India
Mexico
Thailand
Philippines
Costa Rica
Malaysia
Congo
Indonesia
Singapore
Chile
Wi-Fi is a Truly Global Radio Standard
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Metro Wi-Fi Disruptive Economics
Example Network Covering Los Angeles Basin
Metro
5-Year Rollout
1xEV-DO
Cable
DSL (ILEC)
Wi-Fi
20
651
30
45
Av. Revenue per User (ARPU)
29
54
66
70
CAPEX per Home Passed
6.70
12.44
16.88
15.42
Av. Cost per User (ACPU)
144 Kbps - 2.0 Mbps
1 - 5 Mbps
256 Kbps - 5 Mbps
40 - 700 Kbps
Expected Throughput
symmetric/
symmetric
asymmetric
asymmetric
asymmetric

• Based on hypothetical build-out of Los Angeles
  Basin
• 1.4M homes passed, 20 penetration (280K
  subscribers)
• Wi-Fi ARPU is for fixed residential service only
• Mobility will add additional ARPU
• 1 Conservative estimate for 1xEV-DO ARPU rate at
  year 5
• ACPU includes depreciation CapEx includes CPE
  Source Tropos,
  industry sources

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Metro-Scale VoWiFi Performance Today

• MetroMesh networks support 750 voice subscribers
  per square mile
• Cellular-type model 37.5 concurrent calls per
  square mile at 201 oversubscription
• Real-world round-trip latency of lt40 msec
• Layer 3 Traffic prioritization and reservation
  over air-link delivers carrier-class VoWiFi
• VoWiFi currently in use in many networks

mVoWi-Fi is operational today
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VoWiFi Cost Savings with Metro Coverage
Typical MVNO cost per subscriber per month
13.50(450 min/sub X 0.03 per min)
Min/mo/sub
Cost/mo/sub
Cost/min
of calls
25
112.5
0.00
0
Both parties on VoWiFi network
40
180
0.015
2.70
One party on VoWiFi network
35
157.5
0.03
3.90
Neither party on VoWiFi network
100
450
6.60
0.015
Total
Savings per sub per month w/ metro coverage
6.90
mVoWi-Fi can cut MVNO OPEX 50
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Key Roaming Technologies for Convergence

• 802.11r provides roaming within Wi-Fi
• Provides fast roaming and fast BSS transition for
  802.11
• Unlicensed Mobile Access (UMA) provides roaming
  between Wi-Fi and cellular
• Provides access to GSM and GPRS mobile services
  over unlicensed spectrum technologies, including
  802.11
• Now part of 3rd Generation Partnership Project
  (3GPP)

Standards-based roaming enables convergence
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Summary

• Wi-Fi client availability and native IP
  infrastructure drives superior economics
• Mesh makes Wi-Fi work outdoors over large areas
• Metro Wi-Fi mesh for data and voice is proven
  today
• Economics are superior for voice, too.
• Wi-Fi, IP and middleware improvements will make
  VoWi-Fi experience even better over time

Superior economics will drive mVoWi-Fi adoption