A Global Leader in Telecom Outsourcing TM

1. A Global Leader in Telecom Outsourcing TM Broadband Wireless World Forum February 19,2001 George Wozencraft

2. Competition Target Subscriber Base Services and Content Without integrated expertise across the broadband spectrum... ...target markets are not reached - and value cannot be maximized Technology Coordinating the Effort

3. Residential SOHO Business Fiber Cable xDSL Satellite Fixed Wireless (ISM, UNII, MMDS, LMDS) Positioning Fixed Wireless • Success will depend on location and the economic availability of competitive alternatives • Created exclusively for data communications in a broadband world, fixed wireless offers numerous advantages, including: • Capital efficiency • Modularity • Speed to market • High capacity

4. Network Design: • Technology Selection • Link Budget • Cell Radius • Capacity • Access Network • Core Network • Transport • Ring Design • Site Acq. / Pre-qualification Business Plan: • CapEx Planning • OpEx Planning • Revenue Projections Overview Dimensioning Wireless Networks is a Complex Undertaking Market Definition: • Market Segmentation Analysis • Bandwidth Demand Modeling • Service Offerings Analysis • Competitive Analysis • Target Area Analysis A Systematic Approach Links Key Elements for More Meaningful Results

5. Market Analysis - Customer Segmentation • Residential Segmentation: • May include multiple variables (household income, size, composition, etc.) • Segmentation linked to block group (locale) • Business Segmentation: • May include multiple variables (SIC, estimated bandwidth demand, # of employees, revenues, etc.) • Segmentation linked to block group or specific buildings • Penetration Estimates developed by: • Customer segment • Service requirement • Locale (block group or building)

6. Residential Segmentation - Sample Map San Diego, CA

7. Business Segmentation - Sample Map San Diego, CA

8. Service Offerings Analysis • Identify potential types of services by segment • Residential Services • Segmentation by access speed, other variables • Potential enhanced services • Business Services • Standard offers (internet access, e-mail accounts, etc.) • Access speed • Value-added services (web-hosting, ASP, etc.) • Services drive network requirements • Bandwidth requirements vary depending upon services offered • Estimated bandwidth demand per subscriber drives link budgets, cell coverage, hub design

9. Competitive Analysis • Identify presence and location of: • Estimated DSL coverage at street level • Known fiber • Probable T1 / T3 • Map projected bandwidth requirements • Bandwidth requirements located down to building and parcel level • Overlay bandwidth requirements alongside competitive alternatives • Identify areas where competitive alternatives exist • Identify potentially exploitable gaps in competitive service offerings

10. Competitive Presence & Bandwidth Demand

11. Demand Modeling • Service offerings and QoS differentiate broadband players -- coverage is secondary • Bandwidth requirements • project by segment / SIC, subscriber type, service offer, QoS • project down to the parcel and / or individual building level • Network design must account for growth • number of subscribers • bandwidth growth per subscriber, over time • Broadband network design should be modular • Target areas of highest potential demand first • Balance target customer bandwidth demand with overall market penetration Prioritize Capacity over Coverage

12. Market-level Target Areas

13. Local Target Areas with Competitive and Bandwidth Demand Overlays

14. 802.11(b) LMDS Single Family High-Use Residential ISM: 3-11Mbps W-LAN UNII: ~20 Mbps MMDS: ~20 Mbps Network Architecture TECHNOLOGY & TYPES OF SUBSCRIBER UNITS W-LAN Micro-node Up to 1.5 Mbps Medium to Large Businesses ISM: 3-11Mbps LMDS: ~34-38 Mbps MMDS: ~20 Mbps ISM/MMDS • Wireline • Fixed Wireless B/H WAP MMDS/ISM MMDS: ~20 Mbps ISM/UNII/MMDS ISM/UNII/MMDS ISM: 3-11Mbps Micro-node Small to Medium LAN Hub Business Single User: Peek User Demand < 15 Mbps MDU/MTU

15. Vendor Selection and RFP Process • Technical Considerations • Spectrum • Capacity • Reliability • Standards • Operational Capabilities • Time-to-Market / Availability • Volume Capabilities • Vendor Financing • Availability • Terms • RFP Process is a Key Element

16. Selecting the Right Technology

17. Thorough projections foster successful partnerships and accelerate progress Align Strategic Objectives Research Invest Recognize Return Value/Share NPV IRR Critical Analysis Speeds Success • Fixed wireless forecasts consider: • Potential service offerings and pricing • Revenue and EBITDA projections • Technology costs • Operating expenses • Core network installation and expenses • Capital expenditures • All pertinent income statement, cash flow, and balance sheet issues

18. Technical Assessment Market Analysis Network Design and Projections Business Plan The Business Plan • Objective • Tie together elements completed in technical assessment, market analysis, and technical designs and financial projections • Benefits • Serves as an internal road map as well as a guidebook for assembling pertinent information for parties new to the Company and/or the fixed wireless business • Increase speed to market, springboard to deployment and/or expansion

19. Design Technical Market Technical Design Financial Financial Market Summary Dimensioning wireless networks is a complex undertaking. Linking the key elements . . . . . . manages the complexity and leads to more favorable results.

20. A Global Leader in Telecom Outsourcing TM The Business of Making Wireless Work