wi-fi/wi-max: fast, low cost, simple today ron sege, president and ceo, tropos networksoctober, 2004
TRANSCRIPT
Wi-Fi/Wi-MAX: Fast, Low Cost, Simple TodayWi-Fi/Wi-MAX: Fast, Low Cost, Simple Today
Ron Sege, President and CEO, Tropos Networks October, 2004
© 2004 Tropos networks, Inc.Page 2
Wi-Fi/WiMAX—”The Ethernet of Radio”Wi-Fi/WiMAX—”The Ethernet of Radio”
0
10
100
1000
10000
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Ethernet
Fast Ethernet
Gigabit Ethernet
10-Gigabit EthernetFrequency
0
10
100
1000
10000
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Ethernet
Fast Ethernet
Gigabit Ethernet
10-Gigabit EthernetFrequency
Ethernet Performance Over Time
0
102030
4050
6070
8090
100
1999 2000 2001 2002 2003* 2004* 2005*
Wi-
Fi C
lient
Devic
es
(mill
ions)
1999: IEEE 802.11b (“Wi-Fi”) standard adopted;Wireless NIC: $200
2001: HP, Dell, IBM,Toshiba offer built-in wireless;Wireless NIC: $100
2002: Wireless NIC: <$60
2003: Wireless integrated ontoPC motherboard; Wireless device proliferation: laptops, PDAs, video cameras, etc.
2004: 1,000+ devicesWiFi certified
Wi-Fi Client Shipments
5 years out Wi-Fi is shipping 3M units/month
10 years out Ethernet had shipped 1M units
total
© 2004 Tropos networks, Inc.Page 3
Metro-Scale Open-Standard Radio in ActionMetro-Scale Open-Standard Radio in Action
Multi-square mile
Mesh Cell Gateways
Clients
Mesh Cell Nodes
Wired IP Wired IP NetworkNetwork
Backhaul
WiMAX
Wi-Fi (Unlicensed)WiMAX (Licensed)
© 2004 Tropos networks, Inc.Page 4
FastFastWi-Fi/WiMAX: Real broadband• 802.11b: 11 Mbps Circa 1999• 802.11g: 54 Mbps Circa 2004• 802.16d 70 Mbps Circa 2005• 802.11n: 100-200 Mbps Circa 2006
• 802.11e: QoS • 802.11r: Roaming• 802.11s: Meshing• 802.16e: Mobility
Ave
rage
Thr
ough
put (
Mbs
)
1
50
5
10
0.5
Today’sCellularArchitecture
Tropos + Gains in Open Standard Radio
spectral efficiency advances
802.11b -> 11g -> 11n
802.16
Tropos Architectural Advances
200820062004 2005 2007
© 2004 Tropos networks, Inc.Page 5
Low CostLow CostWi-Fi/WiMAX: Open-Standard Price/Cost curve• Worldwide standard, 75M connections shipped since
1999• (List) Price/Mbps capacity:
– 1999: $ 202 – 2001: $ 11– 2004: $ 1– 2006: $ 0.40
• Metro-scale CAPEX/Mbps/home passed, fully-installed– 2004: $ 1– 2006: $ 0.30
• No handset subsidy, no truck roll, no license fee
Greater Denver Metro Wi-Fi Model
Per Subscriber Summary Year 5ARPU $24.41 ACPU $5.74 Incremental Cost / Sub $4.25 EBITDA / Sub $18.67
Total CapEx / Potential Sub Passed $30.01 Source: Tropos
© 2004 Tropos networks, Inc.Page 6
SimpleSimpleWi-Fi/WiMAX: Everywhere for
everybody• Laptops, PDAs, cell phones,
music players, cameras, televisions…
• Ample, open and increasing amount of ease-of-use software
• Any native IP service, including Virtual Private Networks, voice, video
• Fixed and mobile
Wi-Fi Parking Meter
Hotspots v Cellular Base Stations
0
50,000
100,000
150,000
200,000
250,000
2002 2003 2004 2005 2006 2007
sta
tio
ns WiFi Hotspots
Cellular base stations
Hotspot Subscribers
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
2002 2003 2004 2005 2006 2007
subs
pwlan subsSupply of Wi-Fi devices
is creating its own service demand
Source: Bear Sterns, TMNG
Source: Bear Sterns, TMNG
© 2004 Tropos networks, Inc.Page 7
Today: Five of 100+ Metro ExamplesToday: Five of 100+ Metro Examples
• Chaska, MN residential– 20% penetration 1 month– Installed by City Manager
• Corpus Christi multi-use– Including AMR
• Philadelphia multi-use– Successful proof-of-concept– Competition + public safety +
digital divide + economic development
• Oklahoma City public safety– 400 sq mi
• Urban east-coast city VoWi-Fi– Prepaid city-wide mobility
AMR Pilot Area 1
AMR Pilot Area 2
Pilot AreaApprox 18.5
Sq Miles(16 per mile)
© 2004 Tropos networks, Inc.Page 8
+ +
Killer Combo:Killer Combo:
It just doesn’t get any better than this!
<$.02/minute* <$100 unsubsidized <$6/sub/mo
*SkypeOut Rate to POTS phone
© 2004 Tropos networks, Inc.Page 9
Wi-Fi/Wi-MAX: Fast, Low Cost, Simple, Today.
So, Why Not?