instant wireless voice - cdg...for the first time, a subscriber can glance at the screen of a...

The Kodiak Real-Time Exchange™ System:

INSTANT WIRELESS VOICE

The Kodiak Real-Time Exchange System: Advanced Press-to-Talk

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CONTENTS

Taking P2T to the Next Level –––––––––––––––––––––––––––––––––––––– 3

Subscriber Benefits ––––––––––––––––––––––––––––––––––––––––––––––– 4

Understanding the Effects of Delays ––––––––––––––––––––––––––––––– 5

Carrier Benefits –––––––––––––––––––––––––––––––––––––––––––––––––– 8

Understanding Kodiak’s Competitive Edge over VoIP––––––––––––––––– 9

How the Kodiak Real-Time Exchange System is Configured ––––––––– 11

How the Kodiak RTX Connects to a Network ––––––––––––––––––––––– 12

How Calls Are Billed ––––––––––––––––––––––––––––––––––––––––––––– 14

Standards Compliance ––––––––––––––––––––––––––––––––––––––––––– 14

Commercial Availability –––––––––––––––––––––––––––––––––––––––––– 15

Conclusions ––––––––––––––––––––––––––––––––––––––––––––––––––––– 16

About the Company ––––––––––––––––––––––––––––––––––––––––––––– 17

Glossary –––––––––––––––––––––––––––––––––––––––––––––––––––––––– 18


Taking P2T to the Next Level

Current Alternatives and Their Shortcomings

Press-to-talk (P2T) services have offered wireless subscribers more communications choices by providing“walkie-talkie” and cellular functions in a single handset. The P2T function initially proved popular amongconstruction, transportation and field service personnel requiring relatively short-duration connections tocoworkers. Now P2T is becoming a mainstream wireless service, with demand growing among businessexecutives and consumers.

Wireless carriers want to offer P2T because it can lift revenue by increasing usage and revenue per user whileretaining high-value subscribers. However, earlier P2T technologies have substantial shortcomings forsubscribers and carriers. Depending on the service to which they subscribe, customers can experience slowconnections, inferior service performance and coverage and limited and inconvenient features. In addition, theymay be required to use bulkier, heavier, more expensive handsets. For carriers, P2T can be expensive anddifficult to offer, necessitating massive retrofits to cellular and back office infrastructure or installation of aseparate overlay network. Even then, carriers often face problems with billing inflexibility, lack of roaming oncompetitors’ networks and spectral inefficiencies.

Kodiak’s Breakthrough Solution

The Kodiak Real-Time Exchange (RTX) System not only resolves these issues, but also sets new industrybenchmarks for instant, feature-rich voice connections between individuals and groups. The Kodiak RTX Systemdramatically improves the user experience while enabling carriers to increase MOUs and ARPU, reduce churn,attract new customers and completely avoid costly network changes. In addition, the all-IP, packet-switchedsystem is technology neutral and standards compliant. The high-speed, multiprotocol switch can be deployedon existing and next-generation networks, setting a new global performance standard for instant voice servicedelivery.

The Kodiak RTX System addresses the technology limitations of P2T, broadening the market for wireless voiceservices to all people who need instant voice-quality communications with individuals or groups. As a result,instant calling may become as widely accepted as cellular phone service.

Kodiak Networks is the only vendor providing a total competitive P2T solution. The Kodiak RTX Systemincludes a voice services platform and associated handset software. Kodiak Networks has partnerships toprovide handset software to several global handset manufacturers, providing subscribers with a wide choice ofoperating systems and phones–from low-cost to high-end.

Subscriber Benefits

Compared to competitive alternatives, the Kodiak Real-Time Exchange System provides the fastest, mostconsistent, highest-quality user experience. The system delivers the strongest ranking overall across five keywireless voice service performance areas.

Greatest Overall SpeedThe most crucial factor in providing wireless voice service is overall speed because subscribers expect a real-time conversation experience. Their tolerance for delays is very low. When communication is delayed, it is nolonger real time and no longer a two-way conversation. At that point, delay transforms the exchange intomessaging, a distinctly different service that does not replace or compete with instant voice offerings.Considering all contributing factors, the Kodiak Real-Time Exchange System delivers the fastest instant voicecall processing in the world.

Low Latency (“Chirp to Voice”)Kodiak’s RTX System sets a new benchmark for short intra-call voice latency — only 150 milliseconds,compared to between 2.5 seconds to 3 seconds for competing P2T technologies. This low latency figure isespecially important because latency has a multiplier effect: a P2T call typically involves five volleys, and one-way latency time must be doubled to account for round-trip delay between users. With Kodiak’s technology,users experience no delays, eliminating frustrating “talkovers” that occur when one user cannot hear animmediate response to an outgoing message and starts speaking during an incoming message. These“talkovers” are common with earlier P2T services.

Call Set-up Speed (“Time to Chirp”)The Kodiak RTX System accomplishes call setup, a one-time occurrence for each instant voice call, in 2-3seconds. In contrast, for call setup in the field, VoIP systems on GPRS networks require 4-5 seconds and VoIPsystems on CDMA networks require 8-10 seconds.

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INDUSTRY BENCHMARK:1.5 secondsFast Call Setup

Short Voice Latency

High Voice Quality

Consistent User Experience Consistent:Lacks Hand-off

Consistent:700 ms

Adequate:Uses old vocoder

Adequate:Less than voice network

INDUSTRY BENCHMARK:Hand-off & QoS

Competitive:3.5 seconds

INDUSTRY BENCHMARK:150 ms

INDUSTRY BENCHMARK:Uses latest vocoder

INDUSTRY BENCHMARK:100% of voice networkevery timeslot on every cell

Variable:Lack of QoS on shared channel

Variable:8-10 Seconds in the field

Variable:3.5 - 4.5 Seconds in the field

Inferior:Hard to understand

Adequate:Less than voice networkNetwork-wide Coverage and Capacity

CUSTOMER PERFORMANCE METRICS Motorola IDEN KODIAK GPRS VoIP

Understanding the Effects of Delays

Although call set-up time (“time to chirp”) is a factor in delivering a high-quality instant voice communicationexperience, this value should be placed in the context of overall subscriber tolerance for delay.

Call setup occurs only once during a wireless voice call. However, Kodiak Networks research and acceptedengineering practice indicate that setup should be completed within 4 seconds to prevent subscriberannoyance. The Kodiak Real-Time Exchange System provides setup in 2-3 seconds. In contrast, VoIP systems onCDMA are far slower, requiring 8-10 seconds for setup in the field.

Volley latency values are far more significant than call set-up time because customers seeking fast voiceconnections can quickly become impatient with “talkover” problems during a conversation. The Kodiak RTXSystem sets an industry benchmark for short volley latency — 150 milliseconds. In comparison, VoIP systemson GPRS provide a much longer volley latency of 3.5-4.5 seconds. (All times indicated are measured valuesfrom live systems in the field.)

However, the full effect of latency is actually much larger. With two users involved in a P2T exchange,latency times must be doubled to include round-trip delays. In addition, the typical P2T conversation involvesfive volleys.

Total delay per user = call setup time x 2 plus volley latency x 5.

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Impact of Latency

The average Kodiak instant voice call is close to three times faster than a similar call using VoIP

SALES VP

ACCOUNT MANAGER

SALES VP

ACCOUNT MANAGER

WAIT TALK LISTEN

Elapsed time: 25 SecondsTotal wait time: 4 SecondsCall set-up: 3 SecondsLatency: 0 SecondsChirp wait: 0 Seconds

Elapsed time: 68 SecondsTotal wait time: 84 SecondsCall set-up: 4 SecondsLatency: 3 SecondsChirp wait: 2 Seconds

L E G E N D

Kodiak Instant Voice Session

VolP P2T Session (Typical VoIP P2T call takes 2.7 times longer with 80 additional seconds of wasted time)

Press

W W W

W W W W W W W W W W W W W W W W W W W W WW T T T T T T T T T TTL L L

W W WW W W W W W W WW W W W W W W WW WW WW WW WWWWT T TL L L L TT T TTL L L L L L WW WW WW WW WWTT L

L L W W W W W W W W WWL L W W W W W W W W WWL LLW W

WT T T T T T T T T TL L L

T T TL L L T T T T TL L L L L L LT TL

L L L L L TL L

Chirp Chirp Chirp Chirp Chirp

Press Chirp Chirp Chirp Chirp Chirp

Greatest Group CallingThe Kodiak Real-Time Exchange System provides subscribers with unprecedented capability and flexibility inmanaging their group contacts while maintaining individual privacy and security.

AvailabilityFor the first time, a subscriber can glance at the screen of a instant voice-equipped phone and see whichgroup members are available for a call — reducing “telephone tag” and making communication moresuccessful and time efficient.

Availability information is permission based and user driven. Instant voice subscribers indicate availabilitystatus by selecting from status indicators associated with their “modes of life”— work, home and recreation.Availability status is customer-driven, and is automatically updated each time the mobile is turned On/Off orthe subscriber changes “My Availability” on the handset. To provide this higher level of user control, KodiakNetworks adapted availability features from instant messaging and the Internet, as well as conferencingcapability from wireline, and embedded them in its system.

Privacy/SecurityWhen a subscriber initiates a new group on the handset or through the web, the Kodiak RTX System sends amessage asking each prospective participant to join the group. Each group member may accept or decline therequest and may withdraw from a group at any time.

Contact ManagementUnlike other alternatives, the Kodiak Real-Time Exchange System enables subscribers to create, modify and/ordelete groups in the contacts list on their handset. Customers can also use the Internet for these tasks. However,subscribers are not required to use the Web or call a customer service number to make list changes. Users’ contactinformation is stored in the instant voice handset address book and is synchronized with the Kodiak RTX System.When list changes are made either on the Web or on the handset, they are fully synchronized with the RTX.

Group CallingKodiak Networks’ technology provides nationwide group calling. Group sizes are configurable and may exceed100 users per group.

Call WaitingCall Waiting continues to work with the Kodiak RTX for all combination of cellular and instant voice calls.When P2T users hear a call waiting tone, they can put a call on hold and answer an incoming cellular call.When the cellular conversation is completed, users can toggle back to the instant voice call.

Conferencing Kodiak Networks’ leading edge technology converts an instant voice call into a conference call on demand.Instant voice subscribers using Kodiak Networks technology can instantly upgrade an instant voice call to acellular or conference call, a capability not available with any other instant voice or cellular handset.

Greatest DependabilityThe Kodiak Real-Time Exchange System takes advantage of all the functionality of today’s highly optimizedvoice networks to provide instant voice service. Delivering this quality of service over voice channels, theKodiak RTX System outperforms VoIP alternatives, where voice transmissions do not have top transmissionpriority. When wireless data networks are capable of handling voice, the Kodiak technology supports thosesystems as well.

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CoverageSubscribers enjoy network-wide coverage for all their instant voice calls. Unlike other systems that cover lessthan a carrier’s full service territory, Kodiak Networks technology provides instant voice coverage that exactlymatches geographic coverage of the cellular network. Kodiak provides the only instant voice solution enablingsubscribers to make calls everywhere they can make wireless phone calls.

Consistency of Performance The Kodiak RTX System performs identically to the voice network. Built-in quality of service monitoring assuresa consistent, high-quality user experience across the network’s full coverage area. Kodiak instant voicetechnology also delivers the highest call completion rates of any competing P2T service and minimizesdropouts.

Voice Quality The industry’s latest vocoder provides enhanced speech clarity so instant voice sound quality is the same asGSM and CDMA sound quality. Additionally, the Kodiak System also enables wireless carriers to use full-ratevoice coders for quality which can exceed cellular voice quality-differentiated voice quality.

Everyone, Everywhere, Every Time Communication™New subscribers often ask: “How do I get started? “Who can I call?” With the Kodiak Real-Time ExchangeSystem, new subscribers need not wait for their contacts to become instant voice customers. Kodiak serviceenables customers to connect with any other wireline or wireless subscriber using a touch-tone phone, rapidlybuilding communities of instant voice users. Once non-subscribers experience a Kodiak instant voice call, theyare likely to upgrade their wireless service.

Network IndependenceThe Kodiak RTX System is network technology neutral. Subscribers can use the instant voice service acrossdigital cellular networks because it supports all current and planned air interfaces, including CDMA, GSM andUMTS. This increases the potential for rapid global uptake of instant voice services.

RoamingKodiak Networks’ technology maintains instant voice service for customers when they roam within a countryor across national borders. During international roaming, the Kodiak Networks availability feature continues towork in a way that is invisible to the end user — a virtual home environment.

ReachFor the first time, subscribers can bring any phone on any network into an established instant voice group call.This enhancement allows new customers to start using the group call capability immediately, rather thanwaiting for personal and business associates to become subscribers. No other technology provides this highdegree of reach. Although they can join P2T group calls, non-subscribers cannot initiate such calls. Reach canextend Kodiak instant voice service to non-P2T mobiles, wireline and internet phone users.

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Kodiak Networks has dramatically reduced the technology and business risks associated with deployingenhanced voice services on digital cellular networks. The company’s founders include former carrier executiveswho know firsthand that modifying these highly-complex networks can create a cascade of technical andfinancial difficulties for operators. As a result, Kodiak’s leaders designed the Kodiak RTX System to fit hand-in-glove with current and future wireless networks. The system provides operators with an instant voicetechnology that:

• Easily integrates with existing networks to simplify deployment

• Supports a wide variety of reliable handsets to meet customers’ needs

• Offers an attractive value and rapid payback.

Greatest Technical Advantages The Kodiak RTX System outperforms earlier alternatives and is highly compatible with existing infrastructure.The system interfaces with wireless networks at three points: billing, provisioning (activation) and networkmanagement. In all cases, the instant voice technology adapts to the network — not the reverse. KodiakNetworks is the only voice services technology company with a multiprotocol IP packet switch, enabling thecompany to choose the right network for the right job. For example, for real-time voice applications includingP2T, Kodiak Networks uses the voice network. Instant voice service is best provided over voice channels.(Future Kodiak Networks applications will run over UMTS or data networks, depending on the suitability ofthose networks for the specific service being delivered.) The same speech and service quality standards usedfor existing digital cellular networks are built into the Kodiak Real-Time Exchange System.

Radio Channel EfficiencyWorking over today’s highly optimized voice channels, the Kodiak RTX System takes fewer spectral resourcesto deliver a call than VoIP alternatives. Voice calls have no packet headers. However, VoIP technologies requireadditional bits for IP packet headers, take longer to process calls and have significant latency issues.

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Carrier Benefits

P 2 T C A L L S A R E D I F F E R E N T

Source: RCR, CTIA, Global Mobile, Nextel Press Information

Call Set-Up(Average - seconds)

Call Length(Average - seconds)

Minutes of Use(Average - minutes)

% P2T Users

Group Call Participants(Average number)

ARPU($ Average - monthly)

90 to 100

500

0%

15 to 30

2(3-6 Max)

$53(Top 5 Natl.)

20 to 30

750(250 P2T)

99%

1 to 4

5(3-30 Max)

$71

3X to 8X ShorterCalls than Cellular

50% More Voice Usage

Virtually all NextelCustomers use P2T

14 to 26 SecondFaster Set-up

2.5X More Call legs = More Revenue

+$18 ARPU / Month

CALL ATTRIBUTES CELLULAR P2T P2T DIFFERENCEWith Kodiak Networkstechnology, cellular andinstant voice calls can beprovided on the samedigital network, offeringcustomers morecommunication choices.Contrasts between the twotypes of calls are marked.Faster, shorter instant voicecalls increase usage anddrive carrier revenue aboveaverage cellular-only levels.

Performance and Features The Kodiak Real-Time Exchange System sets the industry’s highest performance benchmarks for instant voiceservice, enabling carriers to offer differentiated, compelling features and benefits that attract new subscribersand retain current customers. It is the only technology supporting maximum subscriber availabilitymanagement, cellular/instant voice call waiting, instant upgrades from instant voice to full voice or conferencecalls, roaming on competitors’ networks and integrated P2T service across GSM and UMTS networks.

ScalabilityThe Kodiak RTX System is easily and rapidly scalable. A single system cabinet is available in scalableconfigurations to support from 40,000 to 800,000 subscribers. Cabinets can be added to scale customercapacity into the millions.

Ease of ImplementationCarriers can offer a new voice service that is fast to deploy and feature-rich across national or multinationalgeographic area.

Understanding Kodiak’s Competitive Edge over VoIP

The multiprotocol Kodiak RTX System can “talk” to circuit-switched and packet-based UMTS and datanetworks. However, the Kodiak RTX System delivers instant voice over dedicated voice channels, the mostsuitable location today for high-quality voice services. The all-IP, packet-switched RTX technology is adaptableto any existing digital cellular network.

In comparison to other P2T technologies, such as VoIP on General Packet Radio Services networks, theKodiak RTX System offers substantial competitive advantages.

With VoIP P2T technology, transmission delays due to packet segmentation, re-assembly and multiplexingmore than double the raw bandwidth requirement, making VoIP a spectrally inefficient P2T technology. Thesedelays and the “best-effort” nature of data networks in delivering packets ultimately erode service quality.

For example, with VoIP GPRS, P2T call set-up times are longer (4-5 seconds in the field), voice latencies arelonger (7-9 seconds round-trip in the field) and coverage is less than the voice network. These issues can leadto user frustration and churn.

The Kodiak RTX System does use VoIP technology for broadband transmission over long-haul networks. Inthis instance, VoIP helps a carrier reduce the cost of sending instant voice calls across great distances.

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V o I P H A S S I G N I F I C A N T P A C K E T O V E R H E A D

4.4 kbpsC/I

Overhead

13.4 KbpsTimeslot

1.8 kbpsGPRS

Overhead

2 kbpsIP/UDP/RTPOverhead

4.75 kbps (AMR)

13.4 kbps (AMR)

1 Voice Conversation<3.51 MOS

2 Voice Conversations3.91 MOS

13.4 KbpsTimeslot

8.2 kbps Total Overhead

VoIP over GPRS

Kodiak Voice over GSM

Carrier’s Private IP Network

KODIAK RTX KODIAK RTX

CITY A CITY B

KODIAK RTX KODIAK RTX

CITY A CITY B

SIP

Broadband IP Transport Network

Carrier’s Circuit-SwitchedBackbone Network

TI / EI (Voice Packets)

RTP (Voice Packets)

SS7 Signaling

Circuit-Switched Transport Network

Voice calls have no packet

headers. Delivering P2T

services on voice networks is

more spectrally efficient than

providing them with VoIP

technologies, which require

additional bits for IP packet

headers. Also, VoIP

technologies do not deliver voice

calls on a highest-priority basis,

so P2T service quality on these

systems is undependable.

Greatest Business AdvantagesThe Kodiak RTX System enables carriers to provide high quality, revenue-driving, value-added voice servicesnow and in the future. Carriers who install the Kodiak RTX System can enjoy first-to-market advantage withcompelling, differentiated voice applications that increase usage.

In addition, the Kodiak RTX System offers billing flexibility and efficiency unmatched by any othercompetitive offering. These substantial gains leverage existing infrastructure investment and can be achievedwithout costly network modifications.

RevenueCarriers capitalize on the proven revenue-driving qualities of instant voice service, especially since customersusing the Kodiak Networks technology can include any phone in a group call (see Greatest Reach above). Inaddition, the greater performance and features of the system provide revenue opportunities, such as a per-minute premium for upgrading an instant voice call to a conference or cellular call.

Billing CapabilityCarriers depend upon detailed billing systems to capture the billable transactions in a wireless network. TheKodiak RTX System allows reuse of existing billing frameworks for billing instant voice calls, whether on aprepaid, postpaid, per leg or per call basis. Only a minor change to the billing mediation function — to filterout instant voice CDRs for billing calculation — is required. Other P2T technologies lack detailed billingcapability.

Network Capital UtilizationKodiak Networks’ technology enables carriers to expand voice services and increase call volume on theirnetworks without buying additional infrastructure. (Three to five instant voice calls can be accommodated inthe space of today’s average cellular call.) the Kodiak RTX System can be implemented over any existingdigital cellular network; no network changes are necessary. In addition, carriers purchase capacity upgradesonly as subscriber capacity is delivered, a “pay as demand grows” approach that avoids huge upfrontdeployment costs.

Coverage FootprintThe service footprint for Kodiak Networks-supported instant voice services is the same as the footprint forvoice coverage, streamlining service descriptions and eliminating subscriber confusion.

Service Breadth and DepthFeatures enabled by Kodiak Networks’ instant voice technology are additions to current cellular offerings. Withthe Kodiak RTX System, carriers gain more choices for their customers and more billable services withoutsacrificing any features or functionality of the existing digital network.

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YES?NO

YES?NO

NON/A

NOCLASS C ONLY

NO

NO

NONO

NONO

NO

Group & Individual Availability

Dynamic Group Management on Handset

Integrated P2T / Instant Voice across GSM and UMTSIntegrated P2T / Instant Voice across GSM and UMTS

Cellular / P2T / Instant Voice Call Waiting

Per Leg / Per Call Billing Nationwide

Instant upgrade from P2T / Instant Voice to full Voice Call / Conference Call

Roaming on Competitor Networks

Nationwide Group Call

Motorola IDEN KODIAK GPRS VoIPKEY DIFFERENTIATORS

YES YES

YES

YES

YES

YES YES

YES

YES

YES

The Kodiak Real-Time Exchange System is built upon Kodiak Networks’ patented technology for crucialinstant voice functions: high-speed, packet-switch fabric; signaling, call control and voice processingsubsystems; service provisioning; and other real-time systems technologies. Kodiak Networks engineered thesystem to work with existing and emerging technology standards.

The system includes a multiprotocol IP packet switch — the Kodiak Real-Time Exchange (RTX) voiceservices platform — and complementary handset software for today’s popular operating systems. The KodiakRTX platform is designed for efficient deployment and operation across regional, national and internationalservice areas.

The Kodiak RTX Voice Services Platform The standards-compliant RTX platform supports all air interfaces including CDMA, GSM, PDC and UMTS. Thenetwork system element attaches directly to existing infrastructure, requiring no changes to the network. Inaddition, the Kodiak RTX can support combinations of technologies and air interfaces within a technologygeneration (CDMA/UMTS, GSM/UMTS, etc.)

Unlike other alternatives, the multiprotocol Kodiak RTX can select the right terrestrial network for the taskat hand. For deploying real-time voice applications including instant voice today, the voice network is mostsuitable. In the case of future real-time voice applications, the Kodiak RTX supports UMTS data networks. Fornon-real-time messaging applications, the data network is most appropriate and the Kodiak RTX supports thisinterface as well. This ability to accommodate a multiplicity of interfaces allows the Kodiak RTX System toreach every phone, including those on the PSTN and on corporate LANs using VoIP. Some of the protocolsthat the RTX supports are: Gigabit Ethernet, ATM, T1, E1, TCP/IP, RTP, SIP, SS7, ISUP, GSM MAP and IS-41.

For an instant voice application deployed today, the Kodiak RTX connects to a large number of MSCs inthe network and resides at the tandem or transit level above the MSCs. (A Kodiak RTX is not required atevery switch site.) This integration reduces installed cost as well as operating expense.

Each Kodiak RTX is built on the following software subsystems: group voice signaling and control, voicebearer path components, system management and group database management. A Kodiak RTX, housed in a7-foot-high equipment rack, is built on a 21-slot carrier-grade, NEBS and ETSI compliant chassis. It features

open, fully redundant architecture, designed specifically for criticalwireless applications and supporting 99.999% availability for fail-safeoperation.

The highly scalable Kodiak RTX platform is designed to allow simplenetwork planning and growth. The network system element is available inscalable configurations to support from 40,000 to 220,000 subscribers.Multiple Kodiak RTX platforms can be collocated to expand the subscribercapacity of a single site into the millions. Connected by SIP for signalingand RTP for voice traffic, Kodiak RTXs can be distributed around a countryor across multiple countries for broad geographic coverage.

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How the Kodiak Real-Time Exchange System Is Configured

The Kodiak RTX System


How the Kodiak RTX Connects to a Network

L E G E N D

SS7 Signaling

TI / EI Voice Trunks

Radio Link

IP

Multiple Units

Carrier’s Private IP Network

KODIAK RTX

IP IP

KODIAK RTX

Carrier’s Voice Transit Network

MSC MSC MSC

BSC

BTS BTS BTS BTS

CustomerHandsets

RadioAccessNetwork

CoreNetwork

BTS BTS

BSC BSC

Handset SoftwareHandsets are a key element in providing advanced voice services and taking full advantage of the Kodiak RTXplatform. As a result, Kodiak Networks has worked closely with global handset manufacturers to integrate theappropriate instant voice software on a wide variety of phones, ranging from basic models to the mostsophisticated handsets on the market. Handsets are now available, enabling carriers to deploy the serviceimmediately.

Kodiak Networks‘ instant voice handset software is implemented using standard programming languagesand runs on the Symbian™ and Palm OS® operating systems, as well as various proprietary handset operatingsystems. Kodiak Networks handset software comes in both user downloadable and manufacturer embeddedformats.

The core handset software for each operating system ranges in size from 25-75 KB of memory and uses thenative execution environment. The handset software uses existing protocol stacks in the mobile, as well as allservice primitives and service resources offered.

FeaturesThe Kodiak RTX System contains the following features:

• Network-Wide Private Calls (one to one)

• Network-Wide Group Calls (one to many)

• Full Availability Functionality with Instant Updates

• Permission-based Contact and Group Management on the Phone (or on the Web, Subscriber’s Choice)

• Call Waiting with Cellular-to-Instant Voice Call Toggling

• Instant Voice Calling to Every Phone on Every Network for Group (or Private) Calls

• Billing Integrated with Existing Systems

• Multiple Handset Support

• Network-Wide Roaming

• Subscriber Provisioning

• Operating System Support including Equipment Provisioning, Billing and Network Management

• Support for System Capabilities

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How Calls Are Billed

The Kodiak RTX System takes advantage of carriers’ existing investments in standard billing infrastructure inthe network to support both prepaid and postpaid billing. Kodiak’s technology supports all the triggersrequired to perform real-time, prepaid billing. For postpaid billing, the MSC in the core network generatesCDRs for billing voice calls. The Kodiak RTX allows carriers to aggregate and manage those CDRs as operatorstypically do today, but provides the flexibility to use the CDRs to bill instant voice calls. No other billing systemor network changes are needed. Generally accepted industry practices regarding national addressing or timezone billing set on the MSC are applicable to instant voice calls. This important system capability enablescustomers to“pay as they talk”.

Billing As You Like ItWith the Kodiak RTX, carriers have unprecedented instant voice prepaid and postpaid billing flexibility.Operators are able to bill instant voice subscribers:• By duration of the call• Per call leg• Per call

Standards Compliance

Carriers can deploy the Kodiak Real-Time Exchange System now with total assurance that the system is 100percent compliant with existing technology standards and will be 100 percent compliant with futurestandards.

Today’s NetworksThe Kodiak Real-Time Exchange System fully complies with CDMA ANSI standards and TIA/EIA standards forNorth America and with GSM ETSI standards. The Kodiak RTX is a multiprotocol IP packet switch that alsosupports standard connection-oriented VoIP interfaces. The Kodiak RTX uses VoIP for all of its intra-RTXbackhaul, providing great cost savings for operators. The same VoIP interface allows the Kodiak RTX to easilyinterface with today’s proprietary VoIP-based P2T applications as needed.

PAGE 14


Possible Examples: Europe, North America, Asia Pacific

KODIAK RTX

GSM & UMTS

GSMNetwork

UMTSNetwork

Possible Examples: ChinaAustraliaIndiaAmericas

KODIAK RTX

GSM & CDMA

CDMANetwork

Possible Examples: Asia PacificCanadaAmericas

KODIAK RTX

CDMA & UMTS

GSMNetwork

UMTSNetwork

CDMANetwork

Future NetworksKodiak Networks fully supports efforts to develop instant voice standards for the GSM evolutionary path,particularly for UMTS. The company is a member of the Open Mobile Alliance (OMA) and continues to evolveits platform to support the IMS SIP-based multimedia service architecture. Kodiak Networks’ IMSimplementation includes a set of SIP proxies, servers and registrars. The IMS platform also acts as a mediagateway providing connections to non-IP networks, such as the PSTN.

Network CombinationsTo provide network operators with maximum flexibility in delivering unified and integrated instant voiceservice, Kodiak Networks is developing methods to support multiple combinations of network technologiesand air interfaces in the same geographic area. Some of these combinations are: GSM & UMTS, GSM & CDMAand CDMA & UMTS.

Kodiak Networks also is developing versions of its instant voice technology for PDC networks in Japan, aswell as 3GPP (UMTS) architecture based on Release 5 (all-IP) standards.

Commercial Availability and Investment

Global Deployment UnderwayThe Kodiak Networks technology, consisting of the RTX voice services platform and instant-voice equippedhandsets, is commercially available today. Kodiak Networks has partnerships to provide instant wirelesshandset software to several global handset manufacturers. As a result, subscribers have a choice of handsetsranging from low-cost to high-end.

Radio Access RTX Model_____________________________________CDMA Available TodayGSM Available TodayTDMA Availability Upon RequestUMTS Availability Upon Request

Instant voice is the first of many services enabled by the Kodiak Real-Time Exchange System. The systemaccommodates additional functionality including conversational voice services, such as press-to-conferenceand press-to-message, an inherently non-real time service.

Attractive Payback PeriodThe Kodiak RTX System enables voice services that increase usage, providing incremental revenue and rapidpayback. The most expensive portion of a wireless carrier’s network is the air interface, including spectrumlicense fees and associated system buildout costs. After a decade of optimizing their digital voice networks,carriers now have systems that are highly spectrally efficient. The Kodiak RTX System enables advanced voiceapplications that drive revenue, increasing return on those network investments.

The system executes the instant voice application in less time and in a more spectrally efficient way thanVoIP alternatives. Therefore, long-term operating costs for the Kodiak system are less than earlier alternatives.The system employs no dedicated circuits. The Kodiak RTX connects at a trunk level for switched access to thecarrier’s MSCs and through shared transmission to the carrier’s other core network elements. Thus, initially, noincremental capital investment is required — the voice transit and shared transmission networks scale withthe growth of instant voice subscribers and usage, as revenue comes in.

PAGE 15


Conclusions

The Kodiak Real-Time Exchange System provides carriers with competitive advantage through differentiatedvoice service offerings. Kodiak Networks’ advanced technology is scalable, robust and carrier-class. It can beimplemented over any existing digital cellular network, enabling carriers to increase MOUs and ARPU, retaincustomers longer and attract new customers without costly retrofits to network infrastructure. Operating overvoice channels where voice services fit best today, the system delivers the industry’s highest customerperformance metrics for instant voice services.

Launching instant voice services with Kodiak Networks technology enhances a carrier’s ability to increase:

• Financial performance, through greater revenue, profit and net gains

• Network capital utilization

• Breadth and depth of profitable voice services

• Competitive position vs. other service providers

• Market perception as an innovator

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About the Company

Kodiak Networks (www.kodiaknetworks.com) is the leading innovator in instant, wireless voice systems forcarriers worldwide. The Kodiak Real-Time Exchange System is a breakthrough in instant voice communications.It can be integrated into any existing digital cellular network, enabling carriers to increase minutes of use(MOUs) and average revenue per user (ARPU), retain customers longer and attract new customers withoutcostly retrofits to network infrastructure.

Founded by luminaries in cellular technology, Kodiak Networks has numerous patents pending in the areasof high-speed, instant fabric; signaling, call control and voice processing subsystems; service provisioning; andother real-time systems technologies. The company has partnerships with several global providers of handsettechnology.

Kodiak Networks is privately funded by Kleiner Perkins Caulfield & Byers (www.kpcb.com) and RedpointVentures (www.redpoint.com), two of the world’s leading venture capital firms. Headquartered in San Ramon,California, Kodiak Networks has additional facilities in Plano, Texas, Bangalore, India, and Swindon, UnitedKingdom.

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Glossary

2G Second generation technology.

2.5G Intermediate step between technology generations.

3G Third generation technology.

3GPP The Third Generation Partnership Project. A group ofinternational standards bodies, wireless carriers and vendors withthe responsibility of standardizing the WCDMA-based members ofthe IMT-2000 family

3GSM Third generation GSM. The name for advanced GlobalSystem for Mobile Communications technology. Wireless carriersoperating second-generation GSM networks typically upgradetheir technology on an evolutionary path proceeding throughGPRS, EDGE and W-CDMA technologies before reaching 3GSMfunctionality. 3GSM services are delivered at a technical level on3G standards developed by 3GPP, which utilizes air interfaces forW-CDMA and, in some specified markets, EDGE.

All-IP. Architecture completely based on Internet protocol (seeTCP/IP below).

AMPS Advanced Mobile Phone System. A standard foranalog cellular, launched in Chicago in 1983. Used in North andSouth American nations and 35 other countries. Operating in the800 MHz band, this first generation technology is susceptible tostatic and interference. Digital service offers greater voice quality,privacy and service enhancements and has replaced AMPS inmost of the United States.

ANSI American National Standards Institute. Founded in1918, the institute works within a variety of industries tocoordinate and set standards in the United States. ANSI is part ofthe International Standardization Organization.

ANSI 41. The North American standard describing intercarriersignaling for call delivery, authentication and validation amongAMPS-based mobile networks.

ARPU Average Revenue Per User. Average service revenuegenerated per wireless subscriber per month, a key financialmetric for the wireless industry worldwide.

ATM Asynchronous Transfer Mode. A multiplexed informationtransfer and switching method in which the data is organizedinto fixed length, 53-octet cells and transmitted according to eachapplication’s instantaneous need.

CDMA Code Division Multiple Access. CDMA is a spread-spectrum air interface technology used in 2G and 3G networks.CDMA allows many users to occupy the same time and frequencyallocations in a given band or space. CDMA assigns unique codesto each communication to differentiate it from others in the samespectrum. Two IMT-2000 standards, CDMA2000 and WCDMA, arebased on CDMA.

CDRs Call Detail Records. Specific data collected bywireless network switches on every call originated, processed

or terminated on the network. CDRs typically containinformation on calling and called numbers, call type (cellular,P2T, etc.), call duration, and other factors used for billing andadministrative tasks.

E1. The European version of a T1 circuit. It is a digital facility usedfor transmitting data or up to 30 voice channels over a telephonenetwork at 2.048 Mbps.

EDGE Enhanced Data Rates for GSM Evolution. Typically thefinal stage in the evolution of the GSM standard. EDGEmodulation enables data speeds up to 384 Kbps, two to threetimes faster than today’s 2.5G GSM/GPRS networks, and supportshigher-performance computing and communications on handsets.EDGE can be deployed within existing GSM spectrum, providing apath toward 3G services for wireless carriers without access tonew spectrum, such as U.S.operators.

ETSI European Telecommunications Standards Institute.ETSI is a not-for-profit organization whose mission is to producetelecommunications standards that will be used for decades. TheInstitute’s key role is to support global harmonization ofstandards. ETSI unites 786 members from 56 countries andrepresents government organizations, network operators,manufacturers, service providers, research bodies and users.Members determine the Institute's work program, which is closelyaligned with market needs.

GPRS General Packet Radio Service. A 2.5G technology thatenhances circuit-switched GSM technology with packet switchingcapability. GPRS offers data speeds up to 115 Kbps. An essentialprecursor for 3G services, GPRS introduces the packet-switchedcore required for UMTS.

GSM Global System for Mobile Communications. This 2Gdigital technology, originally developed for Europe, now has morethan 71 percent of the world wireless market. Initially intendedfor operation in the 900 MHz band and subsequently modified forthe 850 MHz, 1800 MHz and 1900 MHz bands. GSM originallystood for Groupe Speciale Mobile, the committee that began theGSM standardization process.

GSM MAP GSM Mobile Application Part. The networkprotocol that binds GSM systems together. From a networkperspective, 3GPP is based on the GSM MAP with bridges toANSI-41 to provide compatibility with D-AMPS/ANSI-136 (TDMAdigital) systems.

IMS IP Multimedia Core Network Subsystem. IMS providessignaling services for applications within 3G (Release 5)networks. It is a SIP-based multimedia service architecture withopen interfaces.

IMT-2000 International Mobile Telecommunication 2000.The collection of five 3G technologies approved by theInternational Telecommunications Union. IMT-2000 provides aframework for worldwide wireless access by linking diverseterrestrial and/or satellite networks. It will exploit the potentialsynergy between digital mobile telecommunications technologiesand systems for fixed and mobile wireless access systems.

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IS-41. The network standard that allows all switches to exchangeinformation about subscribers.

ISUP ISDN (Integrated Services Digital Network) User Part.ISUP defines the protocol used to set up, manage and releasetrunk circuits that carry voice and data between terminating lineexchanges, such as between a calling party and a called party.ISUP is used for both ISDN and non-ISDN calls. However, callsthat originate and terminate at the same switch do not use ISUPsignaling.

Kbps Kilobits per second. A unit of data transmission speedequal to one thousand bits per second.

MOUs Minutes of Use. Wireless service usage, measured by theminute. A key financial metric for the wireless industry worldwide.

MSC Mobile Switching Center. A switching unit in a wirelessnetwork. The MSC has interfaces to other MSCs, as well as tobase station controllers and the home location and visitorlocation registers.

NEBS™ Network Equipment-Building System. Safety, spatialand environmental design guidelines applied totelecommunications equipment in the United States. Developed inthe 1970s by Bell Laboratories, the documents are maintained bythe successor company, Telcordia Technologies.

PDC Personal Digital Communications. A digital cellulartechnology developed and deployed uniquely in Japan. A TDMAtechnology, PDC is incompatible with any other digital cellularstandard.

PSTN Public Switched Telephone Network. The wirelinetelephone system.

RTP Real-Time Transport Protocol. A protocol for transmittingreal-time audio and video over the Internet. The protocol providesmechanisms for sending and receiving applications to supportstreaming data.

SIP Session Initiation Protocol. A simple text-based,application-layer control protocol. A session is a connectiontypically involving a packet exchange between a user’s computerand a server. Examples are Internet telephony and multimediaconferences. SIP creates, modifies and terminates sessions withone or more participants.

SS7 Signaling System 7. A high-speed, common-channelsignaling system that is the backbone supporting most long-distance telephone traffic worldwide.

T1. A high-speed wireline connection to the Internet. T1bandwidth is roughly 1.5 Mbps per user; it can also alternativelyhandle 24 voice channels. A T1 line can send a gigabyte ofinformation in less than 10 seconds. T1 supports voice, data andvideo at different frequencies on the same connection. In contrastto dial-up, T1 is an always-on connection.

TCP/IP Transmission Control Protocol/Internet Protocol. Aset of protocols developed in the 1970s to assure transmission ofdata from one network device to another. TCP governs theexchange of sequential data; IP routes outgoing and recognizesincoming messages.

TDMA Time Division Multiple Access. A 2G, digital air-interface technology for multiplexing multiple users onto a singlechannel on a single carrier by splitting the carrier into time slotsand allocating these on an as-needed basis.

TIA/EIA Telecommunications Industry Association/ElectronicIndustries Alliance. TIA is accredited by ANSI to developAmerican National standards for a wide variety oftelecommunications products. TIA represents the communicationssector of EIA, a national trade organization including the fullspectrum of U.S. manufacturers and representing more than 80percent of the $430 billion electronics industry.

UMTS Universal Mobile Telecommunications System. TheEuropean entrant for 3G, subsumed into the IMT-2000 family asthe WCDMA technology.

VoIP Voice Over Internet Protocol. Any technology providingvoice services over IP connections.

W-CDMA Wideband Code Division Multiple Access. Thetechnology created from a fusion of proposals to serve as theEuropean entrant for the ITU IMT-2000 family of third-generationwireless technologies.

Sources:

www.cdg.org

www.cibernet.com/roaming/roaming_glossary.html

www.csgnetwork.com/glossaryt.html

www.etsi.org

www.gsmworld.com/technology/glossary.shtml

www.hyperdictionary.com/computing

www.itu.int/home/imt.html

www.onelook.com

www.pt.com/tutorials/ss7/stack.html

www.telecommunication-glossary.com

www.telcordia.com

www.wirelessreview.com/ar/wireless_split_ends

www.wirelessweek.com

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Kodiak Networks, Inc.2010 Crow Canyon Place, Suite 270San Ramon, CA 94583Tel: 925.358.4900 Fax: 925.358.4901www.kodiaknetworks.com

© 2004 KODIAK NETWORKS, INC. ALL RIGHTS RESERVED. KODIAK NETWORKS, KODIAK REAL-TIME EXCHANGE SYSTEM, AND KODIAK NETWORKS LOGO AND TAGLINES ARE TRADEMARKS OF KODIAK NETWORKS, INC. PART NUMBER: WP001-032004

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