converged voip mesh networks ron sege, president and ceo, tropos networksoctober, 2005

Converged VoIP Mesh NetworksConverged VoIP Mesh NetworksRon Sege, President and CEO, Tropos Networks October, 2005

© 2005 Tropos Networks, Inc.

Tropos NetworksTropos Networks

Anytime, Anywhere Broadband Access.Fast. Low Cost. Simple.

Tropos Control EMSTropos Mesh Router

with PWRP™

0 1 2 Miles

1

WiMAX

Internet

Self-healing Wi-Fi Self-healing Wi-Fi MeshMesh


Wi-Fi Device Explosion ContinuesWi-Fi Device Explosion Continues

020,00040,00060,00080,000

100,000120,000140,000160,000180,000200,000

2001 2003 2005(E) 2007(E)

2004 2005 2006 2007 2008-

20

40

60

80

100

120

140

160

180

Millions

Dual mode phones

Cordless phones

120K+ Wi-Fi Hot Spots

Projected 160M+ Cellular Phones with Wi-FiSource: IDC

Source: Instat

140M+ Wi-Fi Client Devices

0

50

100

150

200

250

300

2002 2003 2004 2005 2006 2007 2008Source: IDC

11Mbps 54Mbps150Mbps


Mesh Takes Wi-Fi to Metro ScaleMesh Takes Wi-Fi to Metro Scale

• Wi-Fi originally designed as a wireless extension for indoor LANs

• Mesh makes Wi-Fi effective outdoors over large areas

• WiMAX will complement Metro Wi-Fi for fixed applications today and mobile ones tomorrow

Sp

eed

UWB

WiMAX

Wi-Fi

2G

3G/UMTS

PAN LAN MAN WAN

Wi-Fi

Open Standard Progression

Open-standards moving into wireless MAN + WAN


Metro-Scale Mesh Deployments TodayMetro-Scale Mesh Deployments Today

Metro-scale Wi-Fi is Now a Fact

Vancouver, BCVancouver, BCWhistler, BCWhistler, BC

Livermore, CALivermore, CA

Half Moon Bay, CA

Half Moon Bay, CA

Cerritos, CACerritos, CA

Newport Beach, CANewport Beach, CA

Encinitas, CA

Encinitas, CA

Fullerton, CA

Fullerton, CA

Healdsburg, CAHealdsburg, CAPacifica, CAPacifica, CA

Federal Way, WAFederal Way, WA

Las Vegas, NVLas Vegas, NV

Boulder City, NVBoulder City, NV

Aspen, COAspen, CO

Burlingame, CA

Burlingame, CA

Chaska, MNChaska, MN

Tulsa, OKTulsa, OK

Frisco, TXFrisco, TXAddison, TXAddison, TX

Granbury, TXGranbury, TXDallas, TXDallas, TX

Grand Prairie, TXGrand Prairie, TX

Corpus Christi, TXCorpus Christi, TX

Houston, TXHouston, TX

Gilbert, MNGilbert, MNMoorhead, MNMoorhead, MNMcMinnville, ORMcMinnville, OR

Paris, KYParis, KY

Baton Rouge, LABaton Rouge, LA

New Orleans, LANew Orleans, LA

Lafayette, LALafayette, LA

Franklin, TN

Franklin, TNAtlanta, GAAtlanta, GA

Greensboro, NCGreensboro, NC

Pensacola, FLPensacola, FL

Miami Beach, FLMiami Beach, FL

Alexandria, VAAlexandria, VABaltimore, MDBaltimore, MD

Croton-on-Hudson, NYCroton-on-Hudson, NY

Jamestown, NYJamestown, NYNantucket, MANantucket, MA

Malden, MAMalden, MA

Brocton, ILBrocton, IL

Panama City, FLPanama City, FL

St. Petersburg, FLSt. Petersburg, FL

South Bend, INSouth Bend, IN

Cedar Island, NCCedar Island, NCJackson, TNJackson, TN

Nampa, IDNampa, ID

Roswell, GARoswell, GA

Rockaway Valley, NJ

Rockaway Valley, NJ

Washtenaw County, MIWashtenaw County, MI

Lynchburg, TNLynchburg, TN

Montgomery County, ALMontgomery County, AL

St. Cloud, FLSt. Cloud, FL

Laguna Beach, CA

Laguna Beach, CA

Los Angeles, CA

Los Angeles, CA Oklahoma, OKOklahoma, OK

Philadelphia, PAPhiladelphia, PA

Lompoc, CALompoc, CA

San Mateo, CASan Mateo, CAMilpitas, CAMilpitas, CA

250+ Paying Customers in 18 Months

Anaheim, CA

Anaheim, CA


The Metro-Scale Interest TomorrowThe Metro-Scale Interest Tomorrow

US Market Momentum

• >190 cities known by Tropos to have purchasing in process for metro-scaleWi-Fi in 2005

• 40 City RFPs due for release from 7/1/05 – 1/1/06

Albuquerque, NMAnaheim, CAAtlanta, GAAustin, TXBaltimore, MDBellevue, WABoca Raton, FLBoston, MACharlotte, NCChattanooga, TNChicago, ILCincinnati, OHCleveland, OHColumbus, OHCorpus Christi, TXDallas, TXDenver, CODetroit, MIEl Paso, TX

Fairfax, VAFargo, NDFort Worth, TXFresno, CAGalveston TXHonolulu, HIHouston, TXIndianapolis, INJacksonville, FLKansas City, MOLas Vegas, NVLos Angeles, CAMaui, HIMemphis, TNMiami, FLMilwaukee, WIMinneapolis, MNNashville, TNNew Orleans, LANew York, NY

Oklahoma City, OKOmaha, NEOrlando, FLPasadena, CAPhiladelphia, PAPhoenix, AZPittsburgh, PAPortland, ORSacramento, CASan Antonio, TXSan Diego, CASan Francisco, CASan Jose, CASeattle, WASt. Louis, MOTucson, AZTulsa, OKWashington, D.C.Wichita, KS

Major US Cities Considering Metro-ScaleWi-Fi in 2005/2006


Metro-Scale Mesh is WorldwideMetro-Scale Mesh is Worldwide

• Installations in 29 countries,and growing

• Activities in APAC, EMEA and CALA

• Growing international ecosystem

GreeceGreeceItalyItaly

United KingdomUnited Kingdom

AlgeriaAlgeria

ThailandThailand

KoreaKoreaChinaChina JapanJapan

MalaysiaMalaysia

LebanonLebanon

SingaporeSingapore

MexicoMexico

Costa RicaCosta Rica

TaiwanTaiwan

PhilippinesPhilippines

IcelandIceland

MaltaMalta

CongoCongo

ChileChile

TurkeyTurkey

KuwaitKuwait

KosovoKosovo

IraqIraqUnited StatesUnited States

CanadaCanada

SpainSpain

IndiaIndia

IndonesiaIndonesia

Puerto RicoPuerto Rico

Wi-Fi is a Truly Global Radio Standard


Metro Wi-Fi Disruptive EconomicsMetro Wi-Fi Disruptive Economics

5-Year Rollout Metro 1xEV-DO Cable

Av. Revenue per User (ARPU)

$20 $651

$30 $45

CAPEX per Home Passed $29 $54 $66 $70

Av. Cost per User (ACPU) $6.70 $12.44 $16.88 $15.42

DSL (ILEC)

Example Network Covering Los Angeles Basin

Expected Throughput

1 - 5 Mbps symmetric

40 - 700 Kbps asymmetric

144 Kbps - 2.0 Mbps symmetric/

asymmetric

256 Kbps - 5 Mbps asymmet

ric

• Based on hypothetical build-out of Los Angeles Basin• 1.4M homes passed, 20% penetration (280K subscribers)

• Wi-Fi ARPU is for fixed residential service only• Mobility will add additional ARPU1 Conservative estimate for 1xEV-DO ARPU rate at year 5

• ACPU includes depreciation; CapEx includes CPE Source: Tropos, industry sources

• Based on hypothetical build-out of Los Angeles Basin• 1.4M homes passed, 20% penetration (280K subscribers)

• Wi-Fi ARPU is for fixed residential service only• Mobility will add additional ARPU1 Conservative estimate for 1xEV-DO ARPU rate at year 5

• ACPU includes depreciation; CapEx includes CPE Source: Tropos, industry sources

Wi-Fi


Metro-Scale VoWiFi Performance TodayMetro-Scale VoWiFi Performance Today• MetroMesh networks support 750 voice subscribers

per square mile– Cellular-type model: 37.5 concurrent calls per square mile

at 20:1 oversubscription

• Real-world round-trip latency of <40 msec• Layer 3 Traffic prioritization and reservation over

air-link delivers carrier-class VoWiFi • VoWiFi currently in use in many networks

“mVoWi-Fi” is operational today


VoWiFi Cost Savings with Metro CoverageVoWiFi Cost Savings with Metro Coverage

Typical MVNO cost per subscriber per month = $13.50

(450 min/sub X $0.03 per min)

Total

Min/mo/sub Cost/mo/sub

Both parties on VoWiFi network

25% 112.5 $0.00 $0

One party on VoWiFi network

40% 180

$0.015 $2.70Neither party on VoWiFi network

35% 157.5 $0.03 $3.90

Cost/min% of calls

100% 450

$6.60$0.015

Savings per sub per month w/ metro coverage = $6.90

mVoWi-Fi can cut MVNO OPEX 50%


Key Roaming Technologies for ConvergenceKey Roaming Technologies for Convergence• 802.11r provides roaming within Wi-Fi

– Provides fast roaming and fast BSS transition for 802.11

• Unlicensed Mobile Access (UMA) provides roaming between Wi-Fi and cellular– Provides access to GSM and GPRS mobile services over

unlicensed spectrum technologies, including 802.11– Now part of 3rd Generation Partnership Project (3GPP)

Standards-based roaming enables convergence

802.11r

UMA


SummarySummary

• Wi-Fi client availability and native IP infrastructure drives superior economics

• Mesh makes Wi-Fi work outdoors over large areas

• Metro Wi-Fi mesh for data and voice is proven today

• Economics are superior for voice, too.• Wi-Fi, IP and middleware improvements will

make VoWi-Fi experience even better over timeSuperior economics will drive mVoWi-Fi

adoption

converged voip mesh networks ron sege, president and ceo, tropos networksoctober, 2005

Documents

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ca cerritos

ca maui

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