Alvarion Markets, Positioning and Offering
Dec 14, 2015
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Outline
• Alvarion Market – “The 3 pillars”• Market trends• Who are we ? • Where are we coming from ?• Alvarion Offering and Positioning • Road Map• New Alvarion - Marketing rebound• Wavion who?
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Alvarion New Market Focus – "3 Pillars"
BWA Market
• Traditional, Fix operators, Licensed, WiMax driven
• Size – $1.9B (Mobile and Fix)
• Addressable (BWA Fixed/Nomadic WiMAX) – $500M, moderate growth
• Growth components:
• WiMAX CPE
• Networks in transition WiMAX/LTE
• Fixed/Nomadic TD-LTE
• Market will move partially, slowly, to TD-LTE
• Alvarion strategy
- Preserve market position
- Look for large enough niche markets to leverage Alvarion technology
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Alvarion New Market Focus – "3 Pillars"
5GHz Private networks (Enterprise, Verticals) market
• Typical topologies: PtP, PtMP - WiFi, WiMAX, Proprietary
• “Close garden” solution
• Size - $800M, CAGR - 13%
• Alvarion Strategy - Rebound and grow
Carrier grade WiFi market
• New, Mobile Carriers
• Traditional, Enterprise
• Open system, mobile WiFi device driven
• Size - $500M, CAGR - 40%
• Alvarion Strategy - Grow and lead
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Wireless Broadband Market
• Smartphones and tablets are driving exploding data and video traffic
• Operators’ usage of Wi-Fi for data offloading and backhauling, in order to reduce cost, improve QoS, and enable service expansion
• Technology choice (Wi-Fi, 4G/LTE, Femto) driven by capacity, availability & cost
• “White Space” initiative and unlicensed spectrum will use Wi-Fi and LTE
Wi-Fi4G/LTE
Unlicensed Spectrum/bands (2.4, 5 GHz)Licensed bands (700MHz, 1.8, 2.1, 2.3, 2.5, 3.5 GHz)
Focused on fixed & mobile applicationsFocused on country- wide mobile applications
Lowest cost last mile solution (matured, small BS, CPE volume, consolidated standard) consumer electronics
Medium to high cost (non-mature, large BS, expensive CPE) 2-3 years for mass market
Expanding to “White Space” – “Wi-Fi on Steroids”
Frequency & bandwidth allocation delays, diversified
Wi-Fi and LTE are complementary solutions for carriers
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Source: AT&TData Downloads Users
Mobile devices and increased mobile
video driving usage
Capacity DemandCapacity Demand
Capacity SupplyCapacity Supply
Capacity Shortage
Source: Rysavy Research 2010
Operators now understand they need all spectrum and all technologies
Exponential Data Usage Growth
• AT&T reports an 8X increase in data traffic between ‘07-’10, coinciding with the launch of the iPhone; driving broadband download demand with less capability to provide capacity
• Cisco study projects 26x growth from ’10 -’15, to 6.3 exabytes/month; 2/3rds will be video
Skyrocketing Data Usage Average Demand vs. Capacity per User (USA)
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Where Are We Coming From ?
• 2 decades of wireless experience
• One of the largest fix wireless focused R&D organization
• One of the largest outdoor fix wireless installed base
• Large customer base
• Larger partners base
• WiMAX, WiMAX, … many technology building blocks (OFDMA, MIMO, etc.) are part of LTE
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Who Are We?
• Broadband Wireless Solutions provider
• Strong two market pillars – Carriers, Enterprise
• Multiple technologies – WiMAX, WiFi, DAS
• Value creator – Connectivity, Coverage, Capacity
• Company in transition
• From the Elephant track to leading in large niche markets
• In turn-around: From declining to stabilizing to rebounding
Providers of optimized broadband wireless solutions to address connectivity, capacity and coverage
challenges of public and private networks
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New Alvarion - Launch
• Reposition the company: New strategy and messages
• Multiple technologies and solutions
• Serving both Public and Private networks
• New product launches after 2 years with no product “news”
• Profitable company after few years with losses • New branding to serve the above
• Launch in the Sales kick off
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Alvarion Multi-Technology Solution Portfolio
Market /Solution
MobileCarriers
BWA Operators/WISPs
Enterprise/ VerticalMarkets
4G RAN)Licensed &
Unlicensed spectrum(
PrimarySecondary
- Close Garden 5GHz - Carrier-Grade WiFi2.4GHz and 5GHz
Primary)cellular offload(
Primary)access, backhaul(
Primary)access; backhaul(
Intelligent DASPrimarySecondary
Unique combination of complementary solutions optimized fora variety of networks, applications, topologies, and environments
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Public SafetySmart City
Industries & Business & Utility
Private Networks
Private NetworksPrivate Networks
WISPsFixed Access
4G Broadband Urban & Rural
4G Wireless Access
4G Wireless Access
4G Small Cell Backhaul
DAS
In-Building Capacity & Coverage
DAS
Metro WiFi
Carrier WiFi
Carrier WiFi
Products and Solutions
3G Data Offload
WBSn
Breeze Ultra
BreezeMAX Extreme
Breeze Access VL
BreezeNet B
BreezeCell BreezeMAX 4Motion
WALKair
Breeze Compact
WBSn
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A Full Spectrum Portfolio
700-800 850 900MHz 1.8 1.9 2.1 2.3 2.4 2.5 3.3 3.5 3.6–3.8 4.9 – 5.8 5.9 10.5 26 28 GHz
WALKair
Breeze Cell
BreezeMAX 4Motion
Compact
WBSn
Ultra
BNB
VL
Extreme
700-800 850 900MHz 1.8 1.9 2.1 2.3 2.4 2.5 3.3 3.5 3.6–3.8 4.9 – 5.8 5.9 10.5 26 28 GHz
BNB
WBSn
VL
WBS
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Alvarion Product Plan 2012
• New products launch in all three market pillars • Compact
• Ultra
• WBSn
• Major product milestones• Extreme 2.0
• WALKair 5000
• LTE Trial, Phase 2
• NMS, Uplift and Wavion products
• DAS, Strategic customer and partner
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Carrier Wi-Fi• WBSn-2400-S • WBSn-2400-O
• WBSn-2450-S• WBSn-2450-O• WBSn-2450-SO/OS
• WBSn-2400-E • AlvariStar
DAS .. BreezeCell v2.0
Private
Networks
Extreme v1.8 Ultra PtP Ultra PtMP
Extreme v2.0
4G
Wireless
Access
4Motion v3.5
WALKair 5000
Compact 3.5GHz
BMAX Pro 6000
LTE Demo II
Compact 2.5G *
Portfolio Roadmap - 2012
H2’11 H1’12 H2’12
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Why New Branding?
• Reflect the new Alvarion strategy and messages
• Reposition Alvarion as a key provider of broadband solutions to private and public networks
• Reflect the merger of Alvarion and Wavion – “One Company – New Brand”
• Connect to our customers’ business and lifestyle
• Give Alvarion a modernized and refreshed look
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Who is Wavion?
MissionProvide wider coverage, higher capacity and lower cost outdoor Wi-Fi solutions for
carrier-grade broadband applications
Key Stats• Founded in 2000
• An Alvarion company since 11/11
• HQ – Yokneam, Israel
• Global presence in the US, Brazil, Mexico, Colombia,India, China, Philippines, Singapore, Africa, Russia
• Large scale deployments in over 75 countries andwith hundreds of Service Providers
Products, Solution, Technology• Access, Backhaul and CPE products ,
spanning 2.4 GHz, 4.9 – 5.9 GHz, 700 MHz
• End-to-end Outdoor Wi-Fi (802.11a/b/g/n) solution
• Unique Beamforming and Interferencemitigating technologies
Customers• Carriers and ISPs, Governments, Enterprises
Applications• Metro Wi-Fi
• Cellular off-loading
• Rural broadband
• Education, Healthcare, Hospitality connectivity
• SME, Residential and Enterprise
• Digital city (security and video surveillance)
• Energy management / Smart grid / Utilities
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Wi-Fi Market Trends
• Growing number of Wi-Fi devices
• Consolidation of Wi-Fi in Cellular handheld devices
• Start of Wi-Fi consolidation in the core cellular network (handoffs, mobility, roaming)
• Most of outdoor Wi-Fi market is still in traditional applications and developing countries
• Carriers growing interest in Wi-Fi
• Outdoor is noisier
2011 was the transition year to “Outdoor 11.n”
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Demand for Carrier Grade Wi-Fi
In Developed Countries
• 3G data offloading due to high penetration of smartphones and tablets
• Broadband extension to rural communities
In Developing Countries
• Low cost broadband access for Metro and Rural
• Residential and SME, mostly desk-top users
• Synergies with existing cellular infrastructure
Large carriers require licensed and unlicensed (Wi-Fi) frequencies to fully meet capacity needs
• Active deployments in US, Korea, Japan, EU etc.
• RFPs from Multinational carriers – Bharti, Telefonica, Vodafone, T-Mobile etc.
New Carrier Grade Wi-Fi Market is Ramping up
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ISPs, Government, Verticals
Growth in traditional unlicensed markets –mass market technology and devices
• ISPs
• Government
• Vertical markets
• Education
• Campuses
• Healthcare
• Hospitality connectivity
• Digital city(Security and Video Surveillance)
• Energy Management / Smart Grid / Utilities
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Wavion technology used globally in Developed and Developing Countries, each with unique requirements
Selected Customer Case Studies
TTML (TATA), India (Carrier)
• Wireless Coverage of ~50 K”m2 in Navi Mumbai
• 220 WBS-2400 base stations
• Utilizes the cellular infrastructure
• 10,000 subscribers
China Carriers (Carrier)
• China Mobile, China Telecom, China Unicom
• 3 Provinces – Sichuan, Guangxi, Inner Mongolia
• 1000 base stations
• Residential, 3G offloading, Universities, Terminal hubs
San Luis Telecom, Argentina (Metro/Muni)
• Wireless coverage for the local community, schools, students, companies, factories, municipalities & hotels
• 84 towns, blanket coverage
• 620 WBS-2400
• 2nd order 100 WBS-2400 for 10 additional cities(2/2010)
Ural Sviaz (USI), Russia (Metro)
• Wireless coverage of the area Capital Yekaterinburg
• 350 WBS-2400 base stations, 17,000 users
• Utilizes roof tops and the cellular infrastructure
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• Industry’s first two-way Beamforming with 802.11n
• Gigabit outdoor Wi-Fi system
• Carrier grade end-to-end solution
• Fastest ROI, 50% less CAPEX and OPEX required
• Leading interference immunity suite
• Seamless mobile data offload
Omni
New WBSn Family of Base Stations
Flexible Access and Backhaul Solution
Sector & Omni
Enhanced OmniSector
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Wavion offers end-to-end carrier grade wireless networks for a variety of applications, based on its Omni-direction and Sector Base Stations
•Carrier grade Wi-Fi solution
•One-stop-shop for projectexecution
•Wide product range
•Access, backhaul, CPEs,NMS, service provisioning,billing
•Fully managed
•Open standards
•Layer 3 – 4 routing, QOS, AAA, etc.
WBSn - E2E Wi-Fi Network Solution
CPEAccess Network
Bridging & Backhauling
Core Network
Indoor CPEs
Integrated backhaul Self forming Self healing
Portable Wi-Fi clients
Multiple configurations, 2.4
and 5 GHz dual band
Point-to-point linksWavion Service-Pro
WavioNet NMS
Outdoor CPEs
USB CPEs
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NOC
IP core
Cellular Data Network
Internet GW
WAN
HLR
• Beamforming 802.11n• Carrier grade • SIM authentication• Local break-out and full BH• Future: HS2.0, LBS, roaming
Wavion’s Mobile Data Offload
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SignalStrength
HGDPAntenna Array
8 dB Beamforming gain and12 dB HGDP antenna array gain
Beamforming Explained
• Leverages multiple radios and a unique High Gain Diversely Polarized (HGDP) antenna array
• Focuses the energy to and from clients on Rx and Tx
• Adapts per packet per user – tracks movements and noise variations
• Exploits multipath by coherently combining all reflections
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Unlicensed BWA Market & Positioning
Low-End WISPs
High-End WISPs
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WLOB Sales Plan - 2012
• 2012 Target revenues of $26M @ GM=63%• 2012 Pipeline of $40M
• China (CM, CT, CU): $6M - $10M• Philippines (PLDT, Smart,Glob): $8M - $10M• Nigeria (MTN, Glo): $5M - $10M• Indonesia (Indosat, First Media) $2M - $4M• LATAM, NA, EU (W&E), India region $10M - $15M
• WLOB Upside• US, FM , $5M• Nigeria MTN, Services $3M • Brazil, Parks $2M• Paraguay, Paracom $2M• Strategic partners - ZTE, NSN $4M
• Alvarion sales team upside - TBD
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WLOB Sales Plan - 2012 #2
• Strategic Partners • OEM with ZTE • Ericsson / NSN / ALU – achieve homologation, at least one • Production in Brazil • ODM for WiFi Indoor strategy - WCPEn / WBSn-I
• Market Penetration• Asia - Indonesia, Thailand, Vietnam, Japan, Australia • Africa – Another Cellular group and large distributors • Western Europe • Eastern Europe - Serbia, Poland, Romania, Bulgaria, Hungary
• New Markets• 5.x Access and Backhaul – “Open garden”• Large scale indoor offering and GTM• Cable market, product, GTM - TBD• 700 MHz market – Sign new agreement with FM
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Sales Synergies in Process
• Western Europe • Strongest area of performance for Alvarion weakest for Wavion • Wavion missed major opportunities in Europe in 2011 – T-Mobile, O2• One Sales organization led by Gadi’s team in W. Europe
• Asia • Strongest area of performance for Wavion, weakest for Alvarion • One Sales organization led by Zeev
• Working few mutual accounts in several countries• Cross compensation defined: win – win • Knowledge: Webinars, Sales kick-off• Offering:
• 2.4GHz, 2450GHz - “open garden” access products for channels• 700MHz (700 – 800MHz) - WBS + CPE
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Summary
• Wider technology, wider offering, wider addressable market
• New comer to a strong growth market, well positioned to succeed in this market
• Sizeable company for a growing market
• Strong synergies between Alvarion - Wavion
• Good news to the market - new strategy, new products, new markets
• Streamlined organization
2012 should be a turning point – It’s execution time!