PowerPoint-Pr

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The German Broadband Access Market
Christian Golaszewski, COO
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The German Broadband Access Market

• Market opportunities
• BWA
• SMEs
• ASP
• Broadband access technologies
• CAGR
• Value proposition
• Performance
• Capex/Costs
• Business Concept
• Case Study WLL STAR 21 NETWORKS
• Network Topology
• PMP- Licenses in Germany
• Base Stations
• Backbone
• Strategic base Products
• Positioning, Strategy, Success Factos, Vision

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Market opportunities
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European Broadband Access Fundamentals
German broadband access revenues(1) (USm)
European broadband access revenues(1) (USm)2004
5,000
3,975
4,000
3,441
3,000
2,264
2,000
1,094
852
710
1,000
392
384
374
0
UK
Italy
Spain
France
Belgium
Sweden
Germany
Switzerland
Netherlands
Source IDC, 2000
Note 1 Refers to broadband internet access only
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The SME market opportunity
1999 European SME market(1)
2000 German SME market distribution
900
837
600
Number of SMEs (000s)
340
300
214
156
67
59
16
0
5-9
gt500
10-19
20-49
50-99
100-499
Total SMEs (2)
Number of employees
Source IFM, Statistische Jahrbuch, AZ
Bertelsmann Notes 1 International analysis
performed on SMEs with 10499 employees only
2 SMEs with 5499 employees
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The ASP market opportunity
The ASP acceptance of SMEs is rising steeply in
Germany making it very attractive emerging
market segment
German SME companies willing to purchase ASP
services, 2001 2005
120.000
CAGR 01-05
112.844
154,1
80.000
Low IT Spenders
54.181
Medium IT Spenders
High IT Spenders
40.000
26.082
8.781
2.706
0
2001
2002
2003
2004
2005
Note SMEs and all their regional
subsidiaries The German ASP Readiness is
calculated by dividing German ASP market size by
total German IT spending. Source Ovum March
2000, AZ Bertelsmann, Gartner Group, Andersen
Consulting Analysis, EITO
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Broadband Access Technologies
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Broadband Access Connections
Germany Broadband Access Connections,
1999-2004 Business Customers
CAGR 2000-2004
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Value Proposition
WLL
DSL
Medium
High
(licences and roof-rights)
(unbundling)
Medium
Medium
Medium
Medium
High
Medium
30 35
30 35
High
Medium
(2Mbps 15Mbps)
(384Kbps 2Mbps)
High
Low
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Capex/Technology Costs
CAPEX/Mbps/Site
Access Technology Costs
700
160k
600
120k
500
100k
400
80k
300
60k
200
40k
100
20k
0
0
3rdgen.
2nd gen.
DSL
BWA
PtP
FO
FO
BWA
PtP
DSL
(Free space laser)
Capex per Site
2nd Generation BWA Fills the Gap Between Fiber
and DSL
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Where are we going?
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Case Study PMP-WLL STAR 21 NETWORKS The
Broadband Solutions Company
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Todays Service Architecture
ISP1
Server
PSTN
STAR 21 Network
ISPN
Server
Server
NE1
SAP Service Access Point
Internet
ATM
802.3
Basestation
ATM Core
IP service platform
IP filter routing AAL5 AAL5 ATM ATM STM4
STM4
IP 802.3 10BT
AAL5 ATM WLL
ATM STM1 STM4
ATM WLL STM1
802.3 10BT
RFC 1483 (bridged and routed)
ATM Forum UNI/NNI PVC
ATM Forum UNI/NNI PVC
IP Service Termination UNI/NNI PVC
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PMP-WLL Licenses in Germany
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Base Stations Parameters
Typical base station coverage
Highlights

• Radius of 3.5 km at 26GHz, up to 10 km at 3.5GHz
• Bandwidth per base station
• up to 384 Mbits downstream
• up to 288 Mbits upstream
• Bandwidth per licence
• 14MHz per 3.5GHz licence
• 28MHz per 26GHz licence (56MHz in 9 key areas)
• Up to 144 customers (2 Mbits) per base station

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Rainy Days Case Study Frankfurt
Frankfurt base station coverage
Availability of Frankfurt base station

• STAR 21 NETWORKS offices
• Plusline (local Frankfurt ISP)
• Computer Training
• WebHits
• Controlware (Customer outside of Frankfurt
  connected via PTP radio)

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Infrastructure Backbone

• Highspeed Fiber-Network to supply all 221
  license areas with bandwith close to terabit
  range
• 35 Points of Presence (Pops)

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Interconnection Set-Up
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Product Roadmap
Network-Products
Fixed bandwidth Flexible bandwidth LAN-to-LAN
connectivity Frame relay
IP-based VPN Voice services Back-up lines
Voice over IP
LANs-/WAN- Management Soft-PBX
Applications
E-Mail solutions Web- development and -hosting
Standard applications Database server Data back-up
Vertical portals Vertical solutions Video-on-deman
d
Day trading centres Business TV Facility
management
Strategy
Network Service Provider
ISP IT Service Provider
ASP
Content Provider
Business Solution Provider
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Positioning
Company vision STAR 21 NETWORKS aims to become
one of the leading European providers of data
communication, internet and application services
for City Carriers, Internet Service Providers
(ISPs) and SMEs. Leading edge technology Wirel
ess Local Loop access and a high-performance
fiber backbone serve as our technical platform to
provide dynamic broadband connectivity and
high-value end-to-end services. Competitive
advantage achieved by High quality standards,
innovative service solutions, short installation
times and low prices.
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Strategy

• Market entry as Broadband Access Provider
• Leased Lines and Access Service
• Focus Wireless Local Loop (WLL ),
  Point-to-Multipoint-radio (PMP)
• Partner and provider for City Carriers, ISPs and
  cable companies

• Developing into a Full Service Provider
• Innovative bundled services for
  telecommunication and data transfer
• Building a high-speed fiber backbone and
  continuously increasing the
• number of base stations
• Target group small and medium enterprises (SME)

• Positioning as Application Service Provider
  (ASP)
• Network computing, ERP-modules, office
  applications
• Building a powerful data center for hosting and
  for providing application services
• Vertical solutions for specific SME demands

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Our success factors

• Leading edge technology
• High quality end-to-end services conforming to
  top security standards
• Solution oriented servicesProducts and services
  tailored to individual customer needs and
  enhanced by consulting services
• High-value one-stop-shoppingInnovative bundle
  of products and IT-services from one supplier
• Dynamic and individual scalable broadband
  servicesFast and reliable bandwidth services in
  Germany and in selected European regions
• State-of-the-art services
• Providing application services of high customer
  value to reduce IT-costs and to increase our
  customers competitive power

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Our Vision
We improve our customers' competitive position
by delivering the communication and application
solutions of the 21st century. STAR 21 NETWORKS
The Broadband Solutions Company www.star21networ
ks.de