Motorola Canopy Wireless Broadband Platform

Mike Dalton

Director US Sales

Motorola, Inc.

2

Agenda

• The Enterprise Challenge

• Defining the Business Opportunity Complimentary Technologies Why Motorola Successful Applications

• Making Money with Canopy Products The Canopy System Growing Revenue and Margins Marketing Programs and Sales Tools Canopy Applications

• Next Steps

The Challenge

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Challenging the Paradigm

• ISPs Have Been the True Trailblazers & Have Proved the Viability and Security of Fixed Wireless Broadband Across the Globe

• Enterprises are Recognizing the Promises of the Technology & are Beginning to Deploy on a Widespread Basis

• ROI Time Continues to Drop as More Companies Deploy Network Extensions

• How? Fixed Wireless

The Traditional Enterprise Paradigm is Being Extended by Relatively Unknown Unlicensed Wireless Broadband

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It’s About Expanding Business

Need for Network Extension Increasing Daily

Enterprise RequirementsNetwork ExtensionsVoIPVideo SurveillanceT1/E1 Replacement

VAR Opportunities:Business ExpansionSolution DifferentiationCompelling Business Case Faster Return on Investment (ROI)

It’s Connecting Buildings and Places

6

Wireless Ethernet

Provides the Flexibility

to Surmount Geographic, Economic &

Time Constraints

The Opportunity

8

The Right Technology:For the Right Application

Canopy Wireless Broadband

802.11 Based LAN

Wide Area Network

Last 100 Feet“Wireless Ethernet”

9

Complementing Wired Networks

• Low-Cost, High-speed Data Connectivity

• Installation And Maintenance Is Easy Installs in < 1 Day

• Reaches Unreachable Areas

As a Wireless Bridge As a Wireless Network

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Why Deploy Canopy?1. Low Initial Investment

2. Low Cost Incremental Growth

3. Carrier Grade Quality of Service

4. Interference Tolerant

5. Highest Level of Security

6. Consistent User Experience

7. No Software Agent on End User Computer

Canopy Wireless Broadband:Deployment Considerations

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A Snapshot:Canopy Wireless Broadband

• Developed by Motorola Labs(>65 Patents) for the unlicensed band

• Launched June 2002

• Deployments Worldwide 2,000 Private System Deployments 1,000 Service Providers

• Extremely Reliable - 45 Year MTBF

• Return Rate of < 1.5%

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Canopy Global Deployments:In Over 80 Countries

North AmericaCanadaMexico

USA

ArgentinaBahamasBelizeBermudaBrazilChileColombiaCosta RicaDominican Republic

EcuadorEl SalvadorGuyanaJamaicaPanamaPuerto RicoUruguayVenezuela

Caribbean & Latin America

Asia Pacific

American SamoaAustraliaBangladeshBruneiCambodiaChinaHong KongIndiaIndonesia

MalaysiaMongoliaNepalNew ZealandPakistanPhilippinesSingaporeSri LankaTaiwanVietnam

AlgeriaBotswanaGhanaGuineaKenyaIvory CoastMaliMozambique

NamibiaNigeriaSeychellesSouth AfricaTanzaniaTogoZimbabwe

Africa

Middle EastAfghanistan

ArmeniaEgyptIraq

JordanPakistan

Saudi ArabiaTurkeyU.A.E.

AlbaniaArmenia

AzerbaijanBosnia

BulgariaCzech

RepublicGeorgia

HungaryKazakhstanLuzemburgMacedoniaMontenegroRussiaSerbiaUkraine

Europe

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Canopy20Mb BH Legacy

PBX

IP PhoneNetwork

Switchor

Router

LANLAN802.1p, 802.1q

AnalogPhone

LegacyPBX

IP PhoneNetwork

Switchor

Router

LANLAN802.1p, 802.1q

AnalogPhone

Maintain Switch/Router802.1p, 802.1q and Secure VPN

MedicalImages

VoIP AnalogVoice

Canopy Wireless Broadband:Healthcare

Canopy Wireless Backhaul

10, 20, 45Mb

CanopyT1 Mux

CanopyT1 Mux

NetworkApplications

Telco Bypass

Fiber Replacement

LAN Extension

Customer Applications

Rural Hospital to Main Hospital

Hospital Campus

Physician Offices to Hospital

HIPPA Compliant AES Encryption

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Canopy Wireless Broadband:Education

ENTERPRISEENTERPRISEAdministrationBuildingBuilding

C A N O P YC A N O P Y

Canopy NLoS45Mb Backhaul

Canopy Advantage20Mb PTMPSecure VLAN

Prioritized Voice & Video

C A N O P YC A N O P Y

C A N O P YC A N O P Y

C A N O P Y

C A N O P Y C A N O P Y C A N O P Y

C A N O P YC A N O P YC A N O P Y

C A N O P YC A N O P Y C A N O P YC A N O P Y C A N O P YC A N O P Y

Higher Ed Applications

Connect RemoteCampus/Dorms

Disaster Recovery

Video Surveillance

K-12 Applications

Connect Schoolsand

Portable Classrooms

Video Surveillance

RadiusServer

L3 SwitchVoIP Firewall

C A N O P YC A N O P Y

CanopyT1 Mux

Campus ResidenceIP Softphone

Parking L

ot

Video S

urveilla

nce

Relay Video Surveillance

to Campus Police

Connect toRemote Campus

Canopy ProvidesApplication Priority

for Latency Sensitive Video and VoIP

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FIXED PTP FOR BUSINESSFIXED PTP FOR BUSINESS FIXED PTMP FOR BUSINESSFIXED PTMP FOR BUSINESS

MOBILE/PORTABLEMOBILE/PORTABLE

Video, VoIP & DataVideo, VoIP & Data

Canopy Hot Zone 802.11 MESHCanopy Hot Zone 802.11 MESH

802.11

802.11

802.11

802.11

Enterprise Point to Enterprise Point to Point BackhaulPoint Backhaul

BACKHAUL for HOTSPOTSBACKHAUL for HOTSPOTS

E1/T1E1/T1ReplacementReplacementVoIP and DataVoIP and Data E1/T1 / VoIP and Data E1/T1 / VoIP and Data

for Small Businessfor Small Business

VIDEO SURVEILLANCEVIDEO SURVEILLANCEWi-FiCell

Canopy Wireless Broadband:LAN Extension, T1 Replacement, Surveillance, Hot Zone

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Canopy SM Backhaul

Any Wi-Fi Node can be converted to a

GatewayWith a Canopy SM backhaul as more

bandwidth is required in the network

C A N O P YC A N O P Y

C A N O P Y

The Canopy Hot ZoneTM Community Wireless Networks

Wi-FiGateway withCanopy SM

Backhaul

Wi-FiNode

Canopy AP Cluster

Connect to Internet or Interconnect to

another Canopy AP Cluster with a Canopy 10, 20 or 45Mb Backhaul

C A N O P Y

C A N O P Y

C A N O P Y

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Canopy Wireless Broadband:Real World Applications

Canopy Wireless Broadband Platform

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Serving Geographically Diverse Companies and Campuses: With License Free Spectrum

• Ideal for Developing, Enhancing & Extending Advanced Broadband Networks & Services

• Removes Right-of-Way Issues

• Flexible Deployment Possibilities with both Line of Sight & Non Line of Sight Applications: Remote Office Connectivity

Secure Data Transfer

• Canopy Products in Action Today: Voice Over IP (VoIP)

Video Services

Security Surveillance

PBX Extensions

T1/E1 Extension/Replacement

Broadband Internet Access

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Canopy’s Main Components

Access Points (AP) Subscriber Module (SM)

Backhaul Modules (BH)

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Canopy - Ranges

• Internal Patch Antenna only

(AP to SM)

• Internal Patch to Reflector

(AP to SM)

• 2 Reflectors (Backhaul)

~ 2 miles 5.2 GHz~ 5 miles 2.4 GHz

~10 miles 5.7 GHz~15 miles 2.4 GHz

~30 miles 2.4 GHz

~10 miles 5.2 GHz

~40 miles 900 MHz

~30 miles 5.7 GHz

~ 2 miles 5.7 GHz

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Canopy Backhaul options

Canopy BH radio, using internal patch antenna only

Canopy backhaul radio with reflector

Canopy 45mbs, external antenna and indoor unit - 5.7 GHz only, 30+ mile range. OFDM modulation for NLOS operation

IDU

ODU

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Point-to-Point Systems

Canopy Product Modulation Rate Aggregate Throughput

Range Without Reflector

Range With Reflector

2.4 GHz BH 10 Mbps 7.5 Mbps 5 miles(8 kilometers)

35 miles(56 kilometers)

2.4 GHz BH 20 Mbps 14 Mbps 3 miles(5 kilometers)

35 miles(56 kilometers)

5.2 GHz BH 10 Mbps 7.5 Mbps 2 miles(3.2 kilometers)

N/A

5.2 GHz Extended Range BH

10 Mbps 7.5 Mbps N/A 10 miles(16 kilometers)

5.2 GHz Extended Range BH**

20 Mbps 14 Mbps N/A 5 miles(5 kilometers)

5.7 GHz BH 10 Mbps 7.5 Mbps 2 miles(3.2 kilometers)

35 miles(56 kilometers)

5.7 GHz BH 20 Mbps 14 Mbps 1 mile(1.6 kilometers)

35 miles(56 kilometers)

5.7 GHz BH 45 Mbps 33.6 Mbps* 40 miles**(64 kilometers)

N/A

• Used in Wireless Backhaul, Bridging, Channelized T1/E1 (Voice & Data)

• Six Degree Antenna Beam Spans Distances up to 40 Miles

• Greater Distances Can be Achieved By Daisy Chaining Systems Together

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Backhaul Applications

• Interconnect campus buildings and remote branch offices

• Backup network

• PBX extension

• Connecting voice and data

• Disaster recovery applications

Enterprise to Branch OfficeEnterprise to Branch Office

T1/E1 Mux-T1/E1 Mux-T1/E1 MuxT1/E1 Mux T1/E1 Mux-T1/E1 Mux-T1/E1 Mux-T1/E1 Mux-T1/E1 MuxT1/E1 MuxT1/E1 MuxT1/E1 Mux

Data

Voice

LANLAN

PBXPBX PBXPBX

Canopy BackhaulCanopy BackhaulT1/E1T1/E1 T1/E1T1/E1

LANLAN

PSTN

MainOffice

RemoteOffice

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Canopy Backhaul – MSRP(per complete link)

Signaling Rate

Reflector MSRP

2.4 or 5.7 GHz 10 Mbs $2,190

2.4 or 5.7 GHz 10 Mbs X $2,490

5.2 GHz 10 Mbs $1,190

5.2 GHz 10 Mbs X $2,290

2.4 or 5.7 GHz 20 Mbs $3,190

2.4 or 5.7 GHz 20 Mbs X $3,590

5.7 GHz 45 Mbs with antenna $11,995

5.7 GHz 150 Mbs with antenna

5.7 GHz 300 Mbs with antenna $19,995

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T1/E1 Multiplexer and Backhauls

New Business Value:

• Simple Pt-Pt: Ethernet / VoIP Connectivity

• Bandwidth Feeder to Access Point Clusters

• Legacy T1 Interface and LAN Connectivity

• IP Piggyback to Existing 6 GHz Pt-Pt Microwave*

Straightforward Business CaseFrom 3 to 12 month payback for Enterprise

Customers

Straightforward Business CaseFrom 3 to 12 month payback for Enterprise

Customers

Save up to $500 to $1000/month on leased line cost/site.

1 Port Savings - $500 x 12 months = $6,000

4 Port Savings - $2,000 x 12 months = $24,000

Capability to work around right of way issues

Achieve cost savings by: Eliminating the recurring expense of

leased lines Implementing wireless PBX

networking Aggregating voice and data traffic via

one medium Using remaining bandwidth to route

LAN/WAN data

* requires 6 GHz diplexers, uses existing 6 GHz antenna system

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Typical Enterprise Cost Savings

Average T1 lease rates in Suburban, Rural environments

between $600 to $1100 per month if available at all.

Fully Loaded Canopy T1 transport

0.01.02.03.04.05.06.07.0

$600 $700 $800 $900 $1,000 $1,100

T1 Monthly Lease Cost

Pa

yB

ac

k P

eri

od

(M

on

ths

)

One Port 2 Port 3 Port1 4 Port

Canopy T1/E1

Multiplexer delivers from 3 to 12 month

payback

Canopy T1/E1

Multiplexer delivers from 3 to 12 month

payback

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What Makes Canopy Different?

• A Motorola Technological Breakthrough That Significantly Improves Wireless Broadband Low CPE Cost Low Infrastructure Cost Affordable Continuous Metro-wide Wireless Coverage

LOW Total Cost of Ownership >7 Mbps Throughput to standard CPE >14 Mbps Throughput to Enterprise CPE

HIGH Throughput and Return on Investment

• Built From The Ground-up For Broadband Access In Outdoor Environments Secure (DES And AES Encryption) Robust And Reliable Scalable for Metropolitan, Campus, or Distance Deployments Easy to Install Designed with 802.16X in mind…

Cost Effective Extension of Existing Business Opportunities

Canopy is not another Wireless

Alternative,it’s a

Complement to Wires and

Wireless LANs

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What Makes Canopy ValuableThink about the product mix

0

10

20

30

40

50

60

70

80

90

ProductMix

AverageMargin

GrossMargin

CanopyProducts

Other Products

Deal Size = 100K• Hardware Only• Canopy = 10K• Other = 90K

0

10

20

30

40

50

60

70

80

ProductMix

AverageMargin

GrossMargin

CanopyProducts

Other Products

Deal Size = 100K• Hardware Only• Canopy = 25K• Other = 75K

Margin• Canopy = 1.2K• Other = 3.6K

Margin• Canopy = 3K• Other = 3K

Assumes 4% margins for “Other” products and 12% margins for Canopy products

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Accelerating Growth:Helping You Succeed

• Motorola & Comstor Sales Support Regional Technical Managers Lead Distribution

• Marketing Campaigns 3 Month Enterprise eMarketing

Campaign starting in March Goal = 150 Leads Generated Additional Canopy Product

Promotion with Campaign

• Other Resources 3rd Party Engineering /

Installation Pure ServicesRF AnalysisInstallation Support

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What’s in it for YOU!

• Enterprise is a New Space for Canopy Products Not introducing new technology, just a different “wireless” way of

delivering applications and services Transparent to the customer

• Easy to Sell – Enables Quicker Application Deployment T1 bypass WAN/LAN extension Video surveillance PBX extension

• Easy to Install – Installs in less than a day

• Easy to Service – Rarely needs it

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Canopy Tools You Can Use

We Support You:

• WebsiteCanopy Content and DocumentationReseller Support Services Interactive Forum and Knowledge

Base

• In PersonRegional Technical ManagersHands-on TrainingCustomer Support

• Other ToolsTraining CDsProduct / Business Webinars

Canopy Applications

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A Secure Port in a High-Risk Storm

• Problem: Most Target-Rich Port in the U.S. Enhances Security Monitoring After 9/11 Attacks

• Solution: Integrate Canopy System with 91 State-of-the-Art Cameras, Servers & Software which Together Provide Intelligent Monitoring that Can Detect Unauthorized Objects, Land & Water Intrusions and Suspicious Movements

• Results: Excellent. Installed in Less than 100 Days At a Significant Cost Savings. System is Accessible From All 3 Port Security Offices & Can Be Accessed Directly by Law Enforcement & Emergency Response Centers

Virginia Port Authority Enhances Security Monitoring Across Three Ports Covering a 15 Mile Area

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Oklahoma Cardiovascular Associates

• Problem: Physicians Were Unable to Consult Real-Time with Off-Site Cardiovascular Doctors/Surgeons for Time Critical Life Saving Events

• Solution: Install Canopy Point-to-Point & Point-to-Multipoint System That Enables Doctors To Collaborate With Colleagues At Four Hospitals And Five Clinics

• Results: Doctors Use the Canopy System to Read the Digital Images from Devices such as Ultrasound, Nuclear Medicine and MRI Remotely, Share Information and Discuss Diagnostics without Physically Present at the Facility

Increases Bandwidth to Remote Clinics While Reducing Costs & Complying with HIPPA Requirements

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University of Notre Dame

• Problem: No Attractive High Speed Broadband Access for Notre Dame Staff & Faculty Living Off Campus

• Solution: Connect the University to the Canopy Network, ND Users can be “Connected” to the University Network Directly By Management & Assignment of the Appropriate TCP/IP Addresses to the User

• Results: Outstanding. E-mail, Internet Bandwidth, Client Billing & First Level Support Handled by University.

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Enterprise Looks to Motorola & CanopyFlorida Car Dealership

• Problem: Holman Enterprises Southern Division Was Spending More Than $75,000 Per Year In Frame Relay Costs For Its 9 Dealership & Service Locations

• Solution: Migrating Voice And Internet Traffic Of Each Site Over To Canopy With No Change To The Dealership’s Existing Legacy Voice Equipment

• Result: Nearly all 9 Sites Are Linked With Wireless Broadband. All Dealership Activities (Customer Information, ADP Database Applications, Web-based Applications And Voice) Are Connected To The Main Server Via Canopy

How One Enterprise Enhanced Their Voice & Data Communications Capabilities While Significantly Reducing Frame Relay Costs, Increasing

Bandwidth & Eliminating Variable Delay Issues

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The Desktop Town Hall:Canopy Brings CEO’s Live Message to Employees’ Desktops

• Problem: Delivering a Real-Time 90-Minute Town Presentation by Motorola CEO Ed Zander to Employees Located in two Buildings on the Company Headquarters in Schaumburg, IL and at a Distribution Building Located 20 Miles Away

• Solution: Due to Time Constraints & High Costs Associated with Building a Tower or Leasing Fiber, Motorola and Fox Valley Internet Installed Several Canopy Wireless Broadband Point-to-Point Links to the Buildings & Broadcast the Town Hall Presentation

• Results: Outstanding! Employees in Three Buildings Were Able to Watch & Listen to the CEO Without Being Inconvenienced by Having to Leave their Places of Work. Motorola was Able to Use its Own Technology in Delivering the CEOs Message in a Cost-Effective & Reliable Manner

Over 1,300 Motorola Employees on Two Campuses & Separated by 20 Miles Were Able to View a Live Town Hall Presentation

Next Steps

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Take Action

• Sign Up Today to become a Motorola Authorized Canopy Solution Provider or www.motorola.com/canopy

• Call Paul Rodgers, Craig Gaffney or Mike Dalton if you have questions about: What Canopy Products

You Should be Selling The Value Proposition of

Adding Canopy Products to Your Business

A Current Deal that Would Benefit from Canopy Products

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Become a Reseller

• Higher Margins than Commoditized RF Products

• Enterprise is a New Space for Canopy Products

• Wide Open Opportunity “Greenfield”

• No Channel Conflict

• Pent-up Demand

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Contact Us

Mike Dalton – Director US Channel Sales

mike.dalton@motorola.com

1+ 480-451-0114

Craig Gaffney – North America Channel Manager

craig.gaffney@motorola.com

1+ 847-538-6615

www.motorola.com/canopy

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Motorola and WiMAX

• Motorola Is a Principal Member of the WiMAX Forum and Fully Supports 802.16 Standards

• 802.16 Technology Provides Benefits to Service Providers for Last-Mile Access Applications in Licensed Spectrum

• We Expect WiMAX to Open New Markets for Our Canopy Wireless Broadband Product Line

• Motorola Canopy 3.5 GHz and 2.5 GHz Licensed Products, Currently Scheduled for Availability in the 2005 & Are Planned to Be WiMAX Compatible

Today, There is No Spectrum Allocated for WiMAX in the United States

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Canopy Hot ZoneTM SolutionEnable Mobile Applications for…

• Campus Environment Enterprise

University / School

Hospital / Healthcare

Entertainment Venues

• Community / Public Venues Public Venues / Stadiums

Library Grounds

Park Districts

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The Canopy Hot ZoneTM

Goes Beyond a Hot Spot to Create a Hot Zone

Metro-Scale Broadband Think of a Hot Zone as City or County Hot Zones comprise a number of Wi-Fi Cells

Delivering at least T-1 Speeds (~1Mbps) for every user With secure access

Cost Effective Technology Unlicensed Wireless Spectrum Leverages Open Standard Wi-Fi Device access is with inexpensive or free built-in Wi-Fi Technology The Canopy Hot Zone is:

ScalableMultiple Canopy SM’s backhaul

traffic from Hot ZoneCanopy SM’s uses for high-speed

fixed access to individual usersEasy to Deploy

Wi-Fi

Wi-Fi

Wi-Fi

Wi-Fi

Wi-Fi

Wi-Fi

Wi-Fi

Wi-Fi

Wi-Fi

Wi-Fi

Wi-Fi

Wi-Fi

Wi-FiWi-Fi

Wi-Fi

Wi-Fi

Wi-Fi

CanopyBackhaul

CanopyBackhaul

Wi-Fi

CanopyBackhaul

Wi-Fi

CanopyBackhaul

Wi-Fi

CanopyBackhaul

Wi-Fi

Or Canopy Fixed

Access Inside Zone

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Canopy Hot ZoneTM SolutionCanopy SM - Fixed Access and Backhaul to Hot Zone

Tropos

CanopySM

Fixed AccessInside

Hot Zone

Fixed AccessOutside

Hot Zone

Home User

EnterpriseUser