Wireless Industry

1
Wireless Industry

• Basic Business Model

2
Internet (For IP Packet Network)
Modem Pool (For Circuit Switched)
Existing Future Cellular/PCS Networks
DataWind System Architecture
Router Load Balancing
Authentication Server Firewall Internal/External
Security
Oracle Database Server Back office Client
account information, billing, bookmarks cookies
cache.
DataWind Application Servers Session Processing
3
Agent/Retail Channels

• Basic Model
• Primary revenue from Carriers Activation-Incentiv
  e
• Use Activation-Incentive to subsidize handsets
  below cost
• In rare cases also receive 2 to 3 residual from
  Carrier
• Gain additional revenue through accessories

4
Agent/Retail Channels

• Pain Points
• No customer ownership
• No hardware margins
• No differentiators
• Chargebacks
• Declining/rare residuals

5
DataWind Offer ToAgent/Retail Channels

• DataWind runs Wireless ISP charges consumer
  monthly access fee
• Channel resells hardware, and receives
• Hardware margin
• Ability to sell carrier-plan, and
  carrier-activation-incentive
• Recurring residual stream
• Customer ownership through entry-site advertising

6
Carriers

• Basic Model
• Purchase spectrum
• Build network
• Subsidize handset to gain monthly-subscription-rev
  enues

7
Carriers

• Pain Points
• High Churn (industry average apx. 30)
• Declining Average Revenue Per User
• Increasing Capex/Subscriber
• Subsidy Disease

8
DataWind Offer To Carriers

• DataWind runs Wireless ISP on private-label basis
  charges carriers a per-subscriber fee
• Carrier resells hardware and data plan
• Gains hardware margin
• Ability to sell data plans Increase ARPU
• Customer ownership through entry-site advertising