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  1. Selling the Broadband Wireless AdvantageA Nortel Networks / Star21 Networks Case Study Craig Clary, Director Account Marketing Broadband Wireless Access, Nortel Networks Broadband Wireless World Forum February 19, 2001 San Francisco, California

  2. The Broadband Access Technology Landscape FS Optics Optics P-P Radio fT1/T1/DS3 PMP Radio xDSL wDSL Cable Modem ISDN Dial Access Multiple Technologies Competing For a Wide Variety of Users – All Open Up The First Mile In Their Own Way

  3. User Distance from POP High Sustained Rate Access Business Class QoS Access Cost / User Time to Deploy Line of Sight Generally, Solutions Are Hybrids Because No One Technology Breaks Through All Constraints Selecting a Technology FS Optics P-P Radio Wireless Legend N/A or very low barriers Some barriers exist Issue may block implementation BWA (LMDS) wDSL Optics xDSL Wired Copper Cable Modem

  4. Speeds deployment time Provides high-speed connectivity to the optical core Delivers scalability Extends the reach of fiber loop Reduces recurring operational expenditures Increases service provider control Broadband Wireless Value Proposition

  5. Service Growth Projections Value Added IP Services Lead The Way * Various sources

  6. Legacy Services/ Leased Line Replacement • N*T1/E1 (fractional T1/E1) • Frame Relay/T1(E1) and X.21 • High Speed Internet (from T1(E1) to OC-3 & 10- and 100-BaseT) Must support traditional services with business class QoS • Advanced IP Services • IP-VPN (RAS and Site-Site) • Dedicated Web Hosting • Application/E-mail Hosting Allows the Service Provider become the Ethernet Service Provider Business Class Services

  7. Managed Services • End-End with Differentiated SLA • Network Based Security (e.g. Firewalling) • Single Point Billing for Bundled Service Once an Ethernet Service Provider – Managed Services become the up-sell • In-Building Distribution Solutions • BWA/xDSL bundling • Switched Etherent/VLANs on CAT5 • Wireless LAN Access is not the end-game – need integrated solutions to solve the last 500 ft The BWA Challenge Is To Ensure Seamless Support and Speedy Delivery Of High Value Services Business Class Services

  8. Broadband Wireless Access A Global Market? -Absolutely The Globe is Equally Divided in 4 Years Despite The Head Start in North America Source – Strategis Group Interpreted by Nortel Networks

  9. Additional 24 Countries Covering 931M Pops BWA Year 2000 Market Expansion

  10. As the Core Expands So Must the First Mile Source – Ryan, Hankin, Kent Nov-2000 We Haven’t Seen Anything Yet

  11. Spectrum Channelization Operators CAP ILEC Channelized Block Spectrum Acquisition Grant Auction High Low Spectrum Use Covenants Rapid IP Based Legacy Over Time BWA Flexibility Rides Global See-Saw Wireless Culture Services Europe Asia N. America CALA

  12. Star 21 Timeline January 2001 – Commercial launch 150 base stations February 2001 – STAR 21 wins national license in Austria January 2001 – STAR 21 doubles bandwidth efficiency of base stations with dual carrier solution December 2000 – Wins National Romanian 26 GHz license November 2000 – Raised US$500 million in tight financial market April 2000 – STAR 21 Networks and Nortel Networks partner to build end-to-end data network September 2000 – Acquisition of national 26 GHz licenses in Czech Republic April 2000 – Acquisition of national 26 GHz Swiss licenses March 2000 – Acquisition of national 26 GHz licenses in Spain August 1999 – STAR 21 gains 3.5 and 26 GHZ licenses in Germany March 1999 – STAR 21 (formerly Star One) founded