caly networks converting spectrum to profit

Broadband Wireless world forum 2001 C A L Yn e t w o r k s

CALY NetworksCALY Networks

Converting Spectrum to ProfitConverting Spectrum to Profit

Cees van der Stoep [email protected]

Broadband Wireless world forum 2001 2 C A L Yn e t w o r k s

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


The Opportunity:Businesses Need Bandwidth

Wired

Fiber OC3

DSL/Cable

High Bandwidth

Low Bandwidth

Wireless

LMDS 28GHz

MMDS (ISM)

mm-wave radio can deliver lots of bandwidthmm-wave radio can deliver lots of bandwidth


“Last Mile” Challenges

“Bandwidth bottleneck” Wireline broadband solutions are costly and have

long installation lead-times Current wireless solutions have problems


Wireless Point-to-Multipoint


Wireless Point-to-Multipoint

30% of buildings are in the shade


Meshed Network using Point to Point


Meshed Network using Point to Point

15 links 30 radios to be planned , installed and aligned


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 OwnershipHigh Cost of Ownership

Broadband Wireless world forum 2001 10

C A L Yn e t w o r k s

CALY Hybrid Fiber RadioTM Dynamic Wireless Networking

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

install cost



Where is the Money ?

Services Revenue :

Cost :

– Web hosting– Telecommuter– ERP– B2B exchange– VPN– Content– Security

– Equipment– License– RF planning– Installation– Interconnect– Roof rights– Churn



Fax

Voice

InternetAccess

InternetBackbone

VOIP

UnifiedMessaging

Intranet

Software-DefinedServices

WirelessInternet

WirelessLAN

VPN

E-Commerce

Multimedia

Video

Complexity

Requ

irem

ents

of N

etwo

rk In

frast

ruct

ure

Explosive Growth in Internet & IP Services

Source Chase H&Q



Businesses Need QoS

Mission critical, real time applications:

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

When transaction delays mean losses of real dollarsWhen transaction delays mean losses of real dollars

Loss of revenue Loss of productivity

Failed/DelayedConnection



RITAWireless Routing Algorithms

Data Packet Scheduling– Bandwidth allocation– QoS support– Priority differentiation– Fairness

Data Packet Routing– Path diversity– Load balancing– Link and node failure redundancy

IP BackboneISP A

ISP B



Multipoint To Multipoint “Sweet Spot”

TCP/IP– Ethernet– Fast Ethernet– Giga Ethernet

Wireless Access and Metropolitan Networks

MTU/MDU and Business Users

100 Mbps

LongHaul

DenseUrban Urban Industrial

SubUrbanResidential

SubUrbanRural Remote

ResidentialVioice and

Data

0.1 Mbps

1 Mbps

10 Mbps

1 Gbps

10 Gbps

T1----

T3----

-

100 Gbps

Copper Cable ,Satellite

DSL

Fiber Optic

Free-Space-Optical

Geographic and Population Topology

Tran

smis

sion

Rat

e

E1----

E3----

LMDS PMP

MPtMP

DSL

WLL



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



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



Network Coverage - CALY

0

10

20

30

40

50

0 10 20 30 40 50

number companiesmarket demandCALY customersCALY seed nodes



Network Coverage - PMP

0

10

20

30

40

50

0 10 20 30 40 50

number companiesmarket demandPMP customersPMP seed nodes



-10-505

10152025

1 2 3 4 5 6 7 8 9 10

Year

Cum

ulat

ive

Cash

flow

($

M) –CALY

–PtP–PMP

Cumulative Cash Flow UK Business Case



CALY Hybrid Fiber RadioIntelligent 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



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 FeasibleHigh-Performance Wireless Networking made Feasible



Conclusion

Commercial Broadband IP Wireless Solution @

Breakthrough Economics

Converting Spectrum to Profit



Wireless Networking Redefined



Back-up



CALY Networks

Corporate:CALY Networks295 Santa Ana CourtSunnyvale, CA 94085USATel: 408.730.8800Fax: 408.739.7453

[email protected]

Europe:World Trade Center1300, route des Cretes, BP25506905 Sophia Antipolis, CEDEXFranceTel: +33(0)4 92 94 00 27Fax: +33(0)4 92 94 03 40

[email protected]

caly networks converting spectrum to profit

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