Roaming and Seamless Mobility Conference

WiMAX and RoamingBusiness Case and Challenges

Presentation at International Roaming Forum 2008

Amsterdam

02-04 June 2008

WiMAX Telecom AG

Best Service ProviderWiMAX World Boston, Oct 2006

Best Commercial DeploymentWiMAX World Vienna, May 2007

Finalist Best WiMAX Product/ServiceWireless Broadband Innovation Awards London, May 2007

5/18/2015Copyright WiMAX Telecom AG, 2008 2

Germany3.5 GHz42 MHz

Switzerland3.5 GHz42 MHz

Croatia3.5 GHz42 MHz Austria

3.5 GHz48 MHz

Slovakia3.5 GHz56 MHz

RUSSIA

countries with current spectrum holdings

countries of further interest

� Central European wireless broadband company with development

focus on the CEE/SEE region

� Currently holds 3.5 GHz

spectrum in 5 countries with

over 108 M inhabitants

� Commercial service presently

offered in Austria and Slovakia

(FWA – 802.16d)

� Rollout of mobile WiMAX

(802.16e) network in Croatia in

progress

� Focus on partnerships and joint

wireless projects

� Backed by strategic investor

NextWave Wireless

Company Overview

Presence in EuropeCurrent operations and further growth prospects

5/18/2015Copyright WiMAX Telecom AG, 2008 3

Spectrum Position

Country BW

[MHz]

Pops

[Mio]

Allocation

[MHz]

Technology Service

Austria

(nationwide,

differences between

regions)

Region 1: 56

Region 2: 42

Region 3: 42

Region 4: 70

Region 5: 42

Region 6: 42

average: 49

8.1 3438 - 3466 / 3538 - 3566

3410 - 3431 / 3510 - 3531

3473 - 3494 / 3573 - 3594

3410 - 3445 / 3510 - 3545

3473 - 3494 / 3573 - 3594

3473 - 3494 / 3573 - 3594

Neutral

FDD/TDD permitted

BWA incl. mobility

Croatia (regional) 28 - 42

average: 38.1

3.4 3410 – 3424 / 3510 - 3524

3427.5 - 3448.5 / 3527.5 - 3548.5

3476.5 - 3497.5 / 3576.5 - 3597.5

Neutral

FDD/TDD permitted

FWA (mobility to

be permitted –

following EU

decision)

Germany

(nationwide)

42 82.5 3431 - 3452 / 3531 - 3552 Neutral

FDD/TDD permitted

BWA (mobility to

be permitted – EU

decision)

Slovakia (nationwide) 28 (WT)

28 (Amtel)

5.4 3410 - 3424 / 3510 - 3524

3473 - 3487 / 3573 - 3587

Neutral

FDD/TDD permitted

FWA (mobility to

be permitted – EU

decision)

Switzerland

(nationwide)

42 7.5 3431 - 3452 / 3531 - 3552 Neutral

FDD/TDD permitted

BWA incl. mobility

5/18/2015Copyright WiMAX Telecom AG, 2008 4

Existing networks

CroatiaPop: 4.400KPPP/year: 11.200BB-penetration: 7%

SlovakiaPop: 5.400KPPP/year: 19.600BB-penetration: 7%

Commercial wireless broadband networks in Austria and Slovakia

► Over 13,000 subscribers and 130 BTS based on 802.16d

► Fixed Wireless Access with outdoor CPE’s and Voice over WiMAX

Advanced deployment in multiple regions of Croatia

► Centralized network

deployment policy

► Unified network op

AustriaPop: 8.000KPPP/year: 31.300BB-penetration: 20%

5/18/2015Copyright WiMAX Telecom AG, 2008 5

Who are the players ?

Gradual switch from proprietary pre-WiMAX and fixed 802.16d systems to

mobile wireless broadband (4G)

Main players who already deployed networks of significant size and provide

services to end users on commercial basis promote deployments, which

follow the mobile WiMAX standard (802.16e)

Leading players across the continents include among others:

► USA - Sprint, Clearwire, DigitalBridge

► Australia - Unwired

► Europe - Iberbanda, Banda Ancha,

Irish Broadband, WiMAX Telecom,

Max Telecom

► Asia – KT Corporation (WiBro)

Source: WimaxCounts.com, Q1 2007

5/18/2015Copyright WiMAX Telecom AG, 2008 6

4G technology with flat IP architecture providing data and voice over IP services

► WiMAX 16e supports Quality of Service mechanisms

► high bit rates possible depending on available frequency resources (spectral

efficiency exceeding 1bps/Hz)

► capable to provide multimedia services (i.e. broadcast solutions, MXtv)

Technical developments around WiMAX 16e devices:

► multi-frequency RF chipsets (2.3 GHz – 3.6 GHz) allowing multiple band

operations within one end-user device

► low power consumption for long operation times and good user experience

► portable and mobile network devices, embedded devices in consumer electronics

Evolution of WiMAX infrastructure

► base stations with different form factors

► in-band backhauling relay stations

The 802.16e standard is becoming to be a global standard providing large

footprint and thus roaming capabilities

WiMAX 16e capabilities

5/18/2015Copyright WiMAX Telecom AG, 2008 7

Considerations for the future plans

► Wireless can't win competition on bit rates against fixed line

broadband products, therefore differentiation required

► Currently available BWA bands are not suitable for a competition against

large area mobile networks in terms of ubiquitous coverage

► WiMAX market placement between DSL (no mobility but high bit

rate) and 3G (mobility but limited bit rates) -> expansion/enrichment

of WiFi-type business models

Deployment Objectives

► Outperform 3G by providing high capacity at much lower costs

► Outperform DSL by providing nomadic and mobile services in

dedicated [hot zones / cities ] areas

► Minimize CPE costs -> promote development of embedded devices

Development approaches (1)

=> Metro-Broadband-Zone

5/18/2015Copyright WiMAX Telecom AG, 2008 8

Development approaches (2)

Business Model

Utility approach to maximize usage/revenues and minimize unit cost

Open network to provide access capacity for all sorts of broadband

applications and customer groups (e.g. B2B, B2C and also pure carrier)

Triple play infrastructure with full multimedia to address growing need for

enriched content access (eg. shared multimedia, social

networking/communication, online news with embedded video content)

Introduction of new business models around free usage/low cost usage and

targeted advertising

Outsource BSS/OSS operations completely, or at least until investment can

be truly justified on larger scale

No device subsidies by leveraging on installed devices - initially WiFi via WiFi

access and/or Personal Gateways then WiMAX embedded devices)

5/18/2015Copyright WiMAX Telecom AG, 2008 9

Development approaches (3)

Deployment scenarios

Urban and Suburban models:

► Broadband access and multimedia for embedded devices for nomadic

and mobile usage

► Intelligent multi-antenna processing and a multi-layer model with macro,

micro and pico base stations layers are necessary for high capacity and

indoor penetration

► Co-deployment of Metro-WiFi can leverage broader terminal installed

basis

► Introduction of personal mobile WiMAX/WiFi gateways can address

equipment availably issue in early stages

► Cooperation with local/regional carries can reduce costs of access to the

fiber network, sites as well as to the customer basis

5/18/2015Copyright WiMAX Telecom AG, 2008 10

Development approaches (4)

Deployment scenarios

Rural Model:

► Scalable deployment strategy by using WiMAX self backhauling

capabilities

► Macro/Micro model can provide capacity and appropriate coverage to

dedicated areas of opportunity

► Embedded devices can contribute to the cost savings

Micro/Pico-cell

Macro AccessArea (NLOS)

Backhaul Area

Micro/Pico

Access AreaLOS ConditionsBetween Macro BSAnd Micro/Pico

5/18/2015Copyright WiMAX Telecom AG, 2008 11

Possible scenarios

Scenario Coverage Deployment Comments

1UrbanMobile deep indoor

WiMAX:macro, micro, pico

WiFi: micro, pico, femto

� Micro/Pico/Femto base stations and WiFi

� Access Points for deep indoor coverage

and high capacity

� Macro base stations installed on the roof

tops and Micro/Pico/Femto in street

canyons

2 SuburbanNomadic

indoor WiMAX:macro, micro, pico

� Micro/Pico base stations will contribute to

indoor penetration and local capacity

increase

� WiFi Micro/Pico is applicable in early

stages

3

Suburban/BusinessParksFixed & Nomadic

indoor &

outdoor

WiMAX:macro, micro, pico

microwave

� Outdoor installations only for business

customer

� Microwave is also applicable for business

customer

4Fixed & Rural Nomadic

indoor &

outdoor

WiMAX macro

mainly for PmP

backhauling

WiMAX/WiFiMicro/Pico/Femto

for access

� Due to low market potential low cost,

scalable deployment required

� High Range macro sites for backhauling of

Micro/Pico/Femto cells that are deployed in

the areas of opportunity

5/18/2015Copyright WiMAX Telecom AG, 2008 12

Summary of business models

Challenging business case for DSL-like services (FWA)

► Service Offering similar to DSL

► Low DSL pricing makes return of investment difficult

Profitable nomadic and mobile model in metro areas is possible:

► Co-deployment of metro WiFi-network for better access to installed

basis, marketing effects and capacity

► Embedded Devices and WiMAX/WiFi gateways instead of subsidies

► Cooperation with local/regional operators and open network approach

can reduce opex and capex

Rural model can benefit from urban deployments

► Embedded devices for cost reduction

► Macro/Micro/Pico layers with self-backhauling for dedicated coverage

and capacity

► Pricing in different scenarios depends on releveant pricing in comparable

service segments

5/18/2015Copyright WiMAX Telecom AG, 2008 13

Considerations for roaming

WiMAX and WiFi will evolve towards offering the same set of basic services

WiFi has a large installed base of users

WiFi usages develop and are more and more innovative

A short-term solution via a WiFi-WiMAX bridge enables a quick implementation of

WiFi –WiMAX interoperability

Loose coupling based intersystem roaming solutions will extend the reach

WiFi -WiMAX Bridge allows WiMAX services to WiFi enabled devices

Intersystem intra-operator roaming

► Loose roaming coupling done by AAA association

► Several implementations possible: most probable EAP over RADIUS

► SIM-EAP based association is planned - no implementation known

Inter-operator roaming association

► Same solution as in the GSM world: loose coupling

► Either direct or through a clearing house

5/18/2015Copyright WiMAX Telecom AG, 2008 14

WiFi – WiMAX roaming

Operator A Operator B

WiMAX WiMAX

WiFiWiFi

Operator C

Load Balancing

Intra-system roaming- existing and proven

Intra-system roamingRoaming agreements to be put in place

5/18/2015Copyright WiMAX Telecom AG, 2008 15

Conclusion and outlook

WiMAX and WiFi networks can provide successfully wireless broadband services

to urban areas

► WiMAX-WiFi bridges can drastically increase installed equipment base

► Attractive Products based on high bit rate internet access and integrated

multimedia products are possible

Wireless broadband market can co-exist with high mobility 3G networks and

stationary fixed DSL providing

► High bit rate products (higher than 3G but lower than DSL)

► In Metro area networks (Higher Mobility than DSL but lower than 3G)

Roaming with other WiFi and WiMAX network will make urban business cases

even more attractive

► Extend customer base

► Increase available capacity for WiMAX-WiFi networks

5/18/2015Copyright WiMAX Telecom AG, 2008 16

THANK YOU FOR YOUR ATTENTION

[email protected]