WiMAX

1
WiMAX

• Bridging the Digital Divide in India
• Ruchir Godura
• Sr. VP, Worldwide Sales, Marketing and Customer
  Support

2
Wireless in India-the success story

• Wireless has been the driver of the telecom
  revolution in India
• 0-85M lines in 10 years, growing 5M lines/month
  fastest growing wireless market globally

Yet the Digital Divide Remains

• Less than 1M broadband customers
• Vast majority of broadband access is in the urban
  areas
• Very small of broadband subscribers in India
  are on wireless-wireless has thus far not
  delivered on broadband connectivity.

3
The constraints to bridging the Digital Divide

• Only the incumbents have access to copper plant
• For CLECs to roll-out a widespread copper network
  is an expensive and very time consuming
  proposition
• Lack of standardized solution for BWA
• High costs of available BWA solutions
• High Cost of International Bandwidth and lack of
  local language content
• Low PC penetration

4
Factors of Change

• WiMAX Standard finalized in 2004
• Availability of standardized equipment at price
  points that are relevant to India
• DSL deployment by incumbents has raised awareness
  of BB and stoked demand
• Rapid growth in PC penetration-4M PCs sold in
  2005 with 25 YoY growth estimated
• Steady drop in International Bandwidth prices
• Others National Internet Exchange, Growth in
  Local Hosting, in Domain, etc.

5
Why WiMAX is the Answer

• Of 50M fixed lines in the country, only 10M lines
  are DSL capable with large proportion (i) in
  larger cities and (ii) for business customers
• Broadband access demand expected to reach 20M
  lines by 2010
• At least 50 will have to be on wireless-a market
  of over 10M lines in India in 4 years
• WiMAX is the only low cost, standardized BWA
  solution available in the market. Industry
  momentum behind solution right from chip makers
  and IT Telecom vendors to operators

6
Why India will be the Driver for WiMAX

• Only large, rapidly growing economy with
  disproportionately sparse copper plant
• Broadband access will have to be on wireless
• Only large market with well capitalized CLECs
  that are competing effectively with incumbent
• CLECs by definition can grow fast only on
  wireless
• Only large market that has a primary demand for
  fixed WiMAX, which is available now
• Most other markets looking at WiMAX for mobility
• Due to widespread proliferation of mobile
  services, basic infrastructure sites, towers,
  etc. already exist-a tower every 1 km

7
Why India will be the Driver for WiMAX

• Falling voice tariffs will force private
  operators to expand broadband services
• Falling international bandwidth connectivity and
  opening up of VoIP will make broadband services
  profitable
• Falling PC prices will drive demand for computers
  and consequently, broadband

8
What are the Challenges?

• Low cost for WiMAX SS
• Prices must come down to sub 50 before growth
  spurt happens
• Spectrum must be cleared and available in
  abundance to operators
• 20MHz is the desired level for viability
• Sub Gigahertz spectrum must be made available for
  reaching suburban and rural areas
• Recommend 450 MHz for reach and availability

9
What are the Challenges?

• Wireless licensing policy must be rationalized
• Requisite spectrum for BB service, in line with
  global allocations, must be easily made available
  to Telcos and even pure play ISPs
• Unrealistic to pay license fee per SS
• Local development and manufacture must be
  encouraged
• Rationalize inverted duty structure
• Enable global scale of manufacture to reduce
  costs
• Standardize on WiMAX for e-governance projects
• Government adoption will give boost to private
  deployments

10
Telsima Building WiMAX in India

• Mission
• Build global telecom equipment franchise with
  India as the home market
• Business Strategy
• Leverage growth of broadband wireless markets in
  India
• Leverage scale achieved in India to compete
  globally
• Leverage organic growth and acquisitions to
  deliver end-to-end solutions
• Investment
• 26M to-date from Top-Tier US Asian Investors
• US NEA, NewPath, CMEA Japan Jafco

11
Company Structure

• Corporate Headquarters Silicon Valley
• Finance, Legal
• DSP/RF Design - Europe
• 35 person team Microwave/RF IPR spun out of
  ISKRA Group
• 40 years of Microwave RF design experience
• Defense Commercial deployments across 100
  countries
• Software, QA Manufacturing - India
• 100 engineering team in Bangalore
• Leverage Low cost, High Quality Systems Software
  team in India
• Local Tier 1 Contract Manufacturing (Bangalore)
• Sales Customer Support India CEE
• Global customer support and sales in Gurgaon
• Strong relationships with and understanding of
  large Indian CEE Carriers
• Powerful combination of Direct Sales and
  Strategic Channel Partnerships