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CALY Networks Converting Spectrum to Profit. Cees van der Stoep. cees@calynet.com. Cannot Deploy Fiber Fast Enough. If XO Communications had its way, all its customers would be connected to fiber. “But it will take decades” admitted CTO Doug Carter. BWB Oct 2000.

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Presentation Transcript
slide1

CALY Networks

Converting Spectrum to Profit

Cees van der Stoep

cees@calynet.com

Broadband Wireless world forum 2001

cannot deploy fiber fast enough
Cannot Deploy Fiber Fast Enough

If XO Communications had its way, all its customers would be connected to fiber. “But it will take decades” admitted CTO Doug Carter.

BWB Oct 2000

Broadband Wireless world forum 2001

the opportunity businesses need bandwidth
The Opportunity:Businesses Need Bandwidth

Wired

Fiber OC3

DSL/Cable

Wireless

LMDS 28GHz

MMDS (ISM)

High Bandwidth

Low Bandwidth

mm-wave radio can deliver lots of bandwidth

Broadband Wireless world forum 2001

last mile challenges
“Last Mile” Challenges
  • “Bandwidth bottleneck”
  • Wireline broadband solutions are costly and have long installation lead-times
  • Current wireless solutions have problems

Broadband Wireless world forum 2001

wireless point to multipoint
Wireless Point-to-Multipoint

Broadband Wireless world forum 2001

wireless point to multipoint1
Wireless Point-to-Multipoint

30% of buildings are in the shade

Broadband Wireless world forum 2001

meshed network using point to point
Meshed Network using Point to Point

Broadband Wireless world forum 2001

meshed network using point to point1
Meshed Network using Point to Point

15 links 30 radios to be planned , installed and aligned

Broadband Wireless world forum 2001

limitations for deploying wireless networks today
Limitations for Deploying Wireless Networks Today
  • Cost and availability of equipment
  • Scalability of emerging PMP - PP architecture
    • Capacity restrictions
    • Effective coverage
    • Difficult to add customers, expand
  • Complexity and deployment cost
    • Site planning
    • Frequency planning, reuse models
  • Regulations, Roof Rights, CO-locations

High Cost of Ownership

Broadband Wireless world forum 2001

caly hybrid fiber radio tm dynamic wireless networking
CALY Hybrid Fiber RadioTMDynamic Wireless Networking

Less than half the amount of equipment and <10% of install cost

Broadband Wireless world forum 2001

where is the money
Where is the Money ?

Services Revenue :

Web hosting

Telecommuter

ERP

B2B exchange

VPN

Content

Security

Cost :

Equipment

License

RF planning

Installation

Interconnect

Roof rights

Churn

Broadband Wireless world forum 2001

explosive growth in internet ip services

Multimedia

VPN

Wireless

LAN

E-Commerce

Intranet

Wireless

Internet

Video

Requirements of Network Infrastructure

Unified

Messaging

Software-

Defined

Services

Internet

Backbone

VOIP

Internet

Access

Fax

Voice

Complexity

Explosive Growth in Internet & IP Services

Source Chase H&Q

Broadband Wireless world forum 2001

businesses need qos
Businesses Need QoS

Mission critical,

real time applications:

  • B2B e-Commerce
  • hosted business apps
  • stock trades
  • streaming audio/video
  • collaborative computing

Failed/Delayed

Connection

  • Loss of revenue
  • Loss of productivity

When transaction delays mean losses of real dollars

Broadband Wireless world forum 2001

rita wireless routing algorithms

ISP A

IP Backbone

ISP B

RITAWireless Routing Algorithms
  • Data Packet Scheduling
    • Bandwidth allocation
    • QoS support
    • Priority differentiation
    • Fairness
  • Data Packet Routing
    • Path diversity
    • Load balancing
    • Link and node failure redundancy

Broadband Wireless world forum 2001

multipoint to multipoint sweet spot

10 Gbps

-

1 Gbps

T3----

10 Mbps

T1----

1 Mbps

0.1 Mbps

Residential

Vioice and

Data

Multipoint To Multipoint “Sweet Spot”
  • TCP/IP
    • Ethernet
    • Fast Ethernet
    • Giga Ethernet
  • Wireless Access and Metropolitan Networks
  • MTU/MDU and Business Users

100 Gbps

Fiber Optic

MPtMP

100 Mbps

E3----

Free-Space-Optical

Transmission Rate

E1----

LMDS PMP

DSL

DSL

WLL

Satellite

Copper Cable ,

Long

Dense

Industrial

Residential

Rural

Urban

Remote

Haul

Urban

SubUrban

SubUrban

Geographic and Population Topology

Broadband Wireless world forum 2001

business case
Business Case
  • Financial model compares broadband wireless access networks
    • PMP Wireless Local Loop (LMDS, BWA)
    • Point-to-Point
    • CALY Hybrid Fiber Radio
  • Analysis includes:
    • Network coverage
    • Cash flow and profit & loss
    • Financial measures: NPV, IRR, funding requirements

Broadband Wireless world forum 2001

business case methodology
Business Case Methodology
  • Models entire city: Manchester, UK
    • All businesses with more than 10 employees
  • Market demand driven
    • Network coverage grows organically
    • Demand peaks at 15% after 4 years
    • Models growth on quarter by quarter basis
  • User-chosen node locations

Broadband Wireless world forum 2001

network coverage caly
Network Coverage - CALY

Broadband Wireless world forum 2001

network coverage pmp
Network Coverage - PMP

Broadband Wireless world forum 2001

cumulative cash flow uk business case

25

20

15

Cumulative Cashflow

10

($M)

5

0

1

2

3

4

5

6

7

8

9

10

-5

-10

Year

Cumulative Cash Flow UK Business Case

CALY

PtP

PMP

Broadband Wireless world forum 2001

caly hybrid fiber radio intelligent wireless choice
End User Benefits:

Broadband bandwidth access to Internet backbone

IP QoS

Resilient network

Cost-effective connection

LDMS Operator Benefits:

Limited initial capital requirements, yielding high IRR

Grow network with new customers

No RF planning, site acquisition issues

Fast, easy installation

Self-healing network

Automatic load balancing

QoS offers new services potential

CALY Hybrid Fiber RadioIntelligent Wireless Choice

Broadband Wireless world forum 2001

summary
Summary
  • Broadband IP wireless solution that finally solves the “last mile” bandwidth bottleneck
  • Elimination of wireless implementation obstacles and lower costs enable broader deployment
  • Enables delivery of new high-margin IP QoS services

High-Performance Wireless Networking made Feasible

Broadband Wireless world forum 2001

conclusion
Conclusion

Commercial Broadband

IP Wireless Solution @

Breakthrough Economics

Converting Spectrum to Profit

Broadband Wireless world forum 2001

wireless networking redefined
Wireless Networking Redefined

Broadband Wireless world forum 2001

back up
Back-up

Broadband Wireless world forum 2001

caly networks
Corporate:

CALY Networks

295 Santa Ana Court

Sunnyvale, CA 94085

USA

Tel: 408.730.8800

Fax: 408.739.7453

info@calynet.com

www.calynet.com

CALY Networks

Europe:

World Trade Center

1300, route des Cretes, BP255

06905 Sophia Antipolis, CEDEX

France

Tel: +33(0)4 92 94 00 27

Fax: +33(0)4 92 94 03 40

emea@calynet.com

Broadband Wireless world forum 2001