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Copyright © 2005 New Venture Partners LLC. All Rights Reserved.

A Business Case For Mobile Broadband Data

WOCC2005

March 22, 2005

New Venture Partners

Copyright © 2005 New Venture Partners LLC. All Rights Reserved. 2

Over 50% of American Homes Have Broadband Access & Growing Quickly

Broadband vs. Narrowband in the U.S.

46% 54% Nov. 200445% 55% Dec. 200445% 55% Jan. 200544% 56% Feb. 2005Narrowband Broadband

•Total broadband is an aggregation of ISDN, LAN, cable modem, and DSL

Source: Nielsen/Net Ratings, as of Mar. 17, 2005

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This Is Also True In Europe and …

From Forrester Highlight: Broadband Reaches 18.3% Of US Households, July 2004

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… And In Asia-Pacific

From IDC 2003

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It’s Happening Very Quickly

0

20

40

60

0 12010080604020Years since the invention

Automobiles1886

Telephone1876

Electricity1873

Television1926

Radio1905

Internet1975

70%

30%

80

100%Broadband

access1995

The penetration rates of broadband access across the world considerably outpace the penetration rates of other technologies and systems that have become indispensable attributes of modern everyday life. Industry analysts predict that in the nearest future broadband access in the developed countries will become an indispensable feature of life support infrastructure for hundreds of millions of people.

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Consumers Are Also Experiencing Wireless Broadband

• Consumer take up of Wi-Fi– 30 million worldwide users in 2004 (up from 9.3M in 2003)– 802.11g access prices declined 10%+ in 2004

• 10 million + homes in US have wireless networks• 29% growth in global wireless Internet users in 2004• More applications – gaming, email, video• More devices – notebooks, handsets• Lower cost to carriers and consumers

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Mobile Broadband Opens Up New Markets & Customers

VPN

News

IP TV

Gaming

Enterprise

Chat & VideoMessaging

Telematics

Pictures

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It’s Becoming a Multi-Access, Multi-Technology World

Mobile

Office Home

Lunch

Travel

Mobile

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3G Triple Play – Three Technologies for Three Services

MSC

BSC/IWF

2G/3G BasestationPDSN(PPP)

OperatorNetwork

PBX

Media Server

IP

BorderRouter

WWW2

2: IP over CDMA PPP Tunnel

(Circuit Switched)

TelephonyGateway

PSTN 1

1: Circuit Switched Voice over CDMA

44: Multi-mode handset

IP

MediaStreaming

PBX

EdgeRouter

QCOMMediaFLO

33: Video

over Broadcast

3 Technologies for 3 Services•OFDM for Broadcast•1X/UMTS for Voice•DO/HSDPA for Data

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The Right Access Delivers the Right User Experience

Gaming

Latency

VPN

Security

Entertainment

Capacity

IP

Productivity

QoS

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The World Is Adopting OFDM

DoCoMo, Siemens, Motorola have all demonstrated high speed data using OFDM

OFDM will be the basis for Qualcomm’s Multicast technology at 700MHz

WiMAX is based on OFDM Technology

WiFi is based on OFDM Technology

WiBro will use OFDMA Technology

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Flash-OFDM Triple Play – One Technology for Three Services

IP transport

OperatorNetwork

FLASH-OFDM: 1 Technologyfor Voice, Data & Media Services

IP

EdgeRouter

RadioRouter

IP

BorderRouter

WWW

2

2: IP overFLASH-OFDM

PSTN

MediaGateway

Softswitch

SIP

1

1: VoIP overFLASH-OFDM

PBX

3MediaServer

3: Video over FLASH-OFDM

IP

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Flarion Flash-OFDM Sector Capacity

FLEXBAND1x 1.25MHz N=1

FLEXBAND3x 1.25MHz N=3

FLEXBAND5MHz3x 1.25MHz N=1

FLASH OFDM1x 1.25MHzN=1

600

378

186

UL .050DL .200

DL 1.4

UL .600

DL 5.3

UL 1.8

UL .900

DL 2.5

UL .350

DL .800

DL 5.3

UL 1.8

UL .750

DL 2.0

DL 6.0

UL 2.5

DL 15.9

UL 5.4

UL .900

DL 3.2

Peak Rate

DL 1.25

UL .500Sustainable

UL .050DL .200

Edge Rate

250

62126

150

40126

31

125 130

Voice Subs Active Subs 1GByte Subs

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Summary

The industry is migrating towards a Multi-Access, Multi-Technology worldOFDM is the technology that will deliver mobile broadband to the mass marketFirst: Mobilise the Computing ExperienceSecond: Mobilise Consumer Data AccessUsers don’t like change: Keep it SimpleAccess is key – How it is delivered is critical to revenue growth