© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 1

WiMAX End to End SolutionShimon Dahan, Director EM BBW - shimon@cisco.com

Agenda

• Cisco E2E Broadband Wireless

• WiMAX architecture

•Accelerate Revenue via New Business Models

• Customers Commercial Deployments

• Q & A

Solution Description and Value Proposition

Cisco End-to-End Broadband Wireless

Cisco’s Mobility Vision‘Any Play Services’

IP NGN

“Any Play” Services

Across Devices

Across Segments

Across Technologies

EnterpriseCommercial Consumer

Cable/DSL

UnifiedComm

WiMAX

Digital Video

WiFi/FemtoCell

Routing &Switching

3G/4G

Service Exchange

Deliver Valuable Experiences, Not Just Connectivity

Deliver Valuable Experiences, Not Just Connectivity

Efficiently Reach New Markets and

Geographies

Efficiently Reach New Markets and

Geographies

Launch Targeted Marketing and Applications

Launch Targeted Marketing and Applications

Increase Service and Transport

Efficiencies

Increase Service and Transport

Efficiencies

Deliver Services

Deploy Networks

Accelerate Demand

Optimize Business

Faster ROI, Increased SP

Revenue

Faster ROI, Increased SP

Revenue

Higher Growth, Faster Time to

Market

Higher Growth, Faster Time to

Market

Increased Relevance and

Retention

Increased Relevance and

Retention

Decrease Capital and Operational

Expenses

Decrease Capital and Operational

Expenses

Cisco Broadband WirelessProviding the architecture that enables service providers to:

The OpportunityCountry Transformation and ‘Digital Inclusion’

0% 140%

Bro

adba

nd P

enet

ratio

n—20

06

20% 40% 60% 80% 100%

Wireless Penetration

0%

5%

10%

15%

20%

25%

30%

120%

Source: EIU, Telegeography, Point Topic, Cisco Analysis

Enabling ‘Digital Inclusion’

Emerging MarketsGDP Growth +5%Mexico Turkey

Brazil ColombiaSouth Africa

ArgentinaRussiaIndia

Philippines

China

Hong Kong

South Korea

FranceUK

SingaporeUSA Germany

AustraliaJapan

BBW Target MarketsWhy “adoption” is primarily in EM

In “Developed” markets, copper, Cable, and Fiber lines are quite robust affording for reliable high-speed broadband and voice services. WiMAX along with 3/4 G will offer MOBILE broadband services.

In contrast in “Emerging” markets, the telecommunication infrastructure is very poor and would require billions of Dollars of investment. The fastest and cheapest way to provide voice and internet-based services is through the use of Wireless access such as WiMAX.

Signaling Networks

8

Cisco E2E Mobile WiMAX Architecture

Cisco 7600Billing

AAA

Logging

DNS

VoIP

Linksys

Policies

VoDService Control

Session Border

Controller

Content Services Gateway

MIP Home Agent

ISG

ME3xxx ME3xxx

WiFi

WiFi Mesh

UMTS / HSPA

CDMA

WiSM (WiFi)

GGSN (GSM)

PDSN (CDMA)

7600 Carrier Ethernet

12k / 7600

Broadband Services

Broadcast

Roaming Exchanges

IntelligentAggregation

AccessNetwork

AccessDevices

IP/MPLS MultiService

Core

Services andOperations

External Networks andServicesMobile IP

Anchor

AggGWs Service Control

SEF

Subscriber Base Station ASN

WiMAXNetwork

IP Media Partners

Cisco Broadband WirelessBuilt on the Cisco IP NGN architecture for converged, intelligent IP service delivery

An IP NGN ArchitectureWith integrated broadband wireless access technologies, enabling service providers to:EconomicallyEconomically extend connectivity and bandwidth to

millions of new customers – without trenching, in any geography

Rapidly realize a return on investment return on investment through valuable IP services and applications – adaptable to the needs of any market

ImproveImprove not only their footprint, but also their ability to meet the tight time-to-market constraints present in economically vigorous regions

Provide portability and mobilityportability and mobility as a key feature of their service offerings

Reaching New Markets and Delivering Mobility

Broadband Wireless Access: Mobile WiMAX

Cisco WiMAX SolutionAn Open Access Architecture: Profile-CThe Cisco Broadband Wireless solution conforms to the Mobile WiMAX Profile-C Network Reference Model

Access Services Network

Connectivity Services Network

External Networks

An Open ProfileAn Open Profile--C ASN enable C ASN enable greater design flexibility greater design flexibility for service providersfor service providers

All Access Services Network (ASN) functionality is open and distributedRadio-related functions such as resource management and handoff are provided by Mobile WiMAX basestationsIP-related functions such as IP routing, IP Mobility, authentication, and traffic management are provided by ASN Gateways

Cisco WiMAX Solution: Based on WiMAX Forum Network Reference Model

R1: 802.16e (MSS-ASN)

R2: MSS – CSN

R3: ASN GW – HA

R4: Inter-ASN

R5: CSN-CSN

R6: BS - ASNGW

R8: Inter BS

MSS – Mobile Subscriber Station

NAP – Network Access Provider

NSP – Network Service Provider

ASN

MSS

CSN

R2

R3

AnotherASN

R4

ASP Network Or Internet

V-NSP

NAP

ASN

R1ASNGW

BS

BS

R6

HAR8

CSN

H-NSP

R5HA

AAA AAA

DHCPDNS

DHCPDNS

ACCESS SERVICE NETWORK (ASN)

Access gateway (ASN GW) – provides the micro-mobility anchor point and supports bearer services. Also supports the Foreign Agent.

Base station (BS) – provides the radio dependent functions and has limited IP functionality

CORE SERVICES NETWORK (CSN)

Home agent (HA) – provides the macro-mobility anchor point and supports bearer services if roaming/mobility is desired.

Other Network Elements such as AAA, DHCP servers and more are also in the CSN.

Cisco Broadband Wireless AccessMobile WiMAX Access Devices

Exceptional indoor performance through integrated Beam Forming and MIMOEasy mobility within service areas without truck rolls or operator involvementRoaming to any Mobile WiMAX Wave 2 compliant network2

Flexible form factors enable broad segment penetrationLink-level diagnostics enable rapid troubleshooting and problem resolutionCisco WiMAX CCX program assures 3rd-party compliance with Cisco value-add extensions3

Integration with Cisco Connection Manager enables seamless, secure mobility between WiMAX, WiFi, and Wired networks3

1 - Form factors shown are not yet finalized. Subject to change based on interoperability and performance testing2 - Roaming across networks will be guaranteed after WiMAX certification, which may or may not happen for product launch.3 – Availability early CY09

Cisco BWX 320 Series Desktop Cisco BWX 320 Series Desktop / / VoIPVoIP Mobile ModemMobile Modem1 1

Cisco BWX 350 Series USB Cisco BWX 350 Series USB Mobile ModemMobile Modem11

Cisco BWX 360 Series Outdoor Cisco BWX 360 Series Outdoor Fixed Modem Fixed Modem

• Enables open Mobile WiMAX ASN architectures for maximum design & deployment flexibility

• Built on the Cisco 7600 Series – the carrier-class converged services platform providing access to thousands of IOS features

• The most powerful ASN-GW platform available –scalable from 5 to 45 Gbps, 100K to 1M MSS.

• Full 1:1 Session Redundancy for SP Availability• MPLS and IPSec VPNs enables secure residential

and business services over a common infrastructure• Part of the Cisco Service Exchange Framework,

enabling precise control over each subscriber’s Quality of Experience

Cisco Broadband WirelessASN Gateway Services

Cisco Broadband Wireless Gateway (BWG)– a high performance Open Profile-C ASN Gateway for Mobile WiMAX access

Cisco Broadband Wireless AccessMobile WiMAX Networking

BWX 8305 / 2305 Mobile WiMAX Basestations

BWX 8305 / 2305 Mobile WiMAX Antennas

WiMAX 802.16e-2005 certifiedIndustry-leading RF Link-BudgetFirst Mobile WiMAX with Adaptive Beamforming; Advanced Antenna Systems (AAS)Combines Beamforming+MIMO for capacity & class-leading performance

BWX 8305 8-element array provides 120° sector coverage with Beamforming & MIMOBWX 2305 2-element antenna provides in-fill coverage with MIMO

Cisco BWX 8300 Series Broadband Wireless Access System

Hardware Maturity (3rd Generation) Software upgradeable to 802.16e5MHz/10MHz, TDDConfigurable DL/UL duplexSimplified InstallationEMS remote operationSecurity (OTA)Software programmable radio

Specification Value

Transmit Power31 dBm @ antenna port

+27-+46 dBm EIRP

Operational Temperature +0 to +50 degrees C

Mechanical Dimensions

5.25hx19wx12.9d inches for standard rack application

Power Supply+24VDC, -48VDC,

110/240 AC

WiMAX Tower ConfigurationUsing 3 x 120-degree Sectors

Cisco Broadband Wireless AccessMobile WiMAX Beamforming InnovationBeamforming uses antenna array and signal processing techniques to maximize signal strength for subscriber devices

+18 dB

+9 dB

No BeamformingEnergy is dispersed across an entire 90° or 120° sectorGain decreases quickly with distance, degrading performanceLimited coverage. Cells must be tightly spaced for good performanceInter-cell interference adversely affects frequency reuse

Cisco’s Beamforming Implementation

Sector Antenna

Cisco 8-Element 120°Beamforming Array

Array is recalibrated every 5ms, energy is focused at individual subscribersGain (64x) remains high over long distances, improving performanceExpanded Coverage. Cells can be widely spaced while providing good performanceInter-cell interference is minimized, allowing maximum frequency reuse

0 dB

19

AAS Link Budget ImprovementsNet result: CapEx/OpEx Savings…

• Better Link Budget translates to reduction in site count and improvement in capacity.

• Reduced site count impacts Capital Expenditure and on-going Operational Expenditures.

Cisco 3dB Less 6dB Less Comments

# of Sites 71 100 137

# of BTS 213 300 411 120 degree sectors

# of BTS n/a 400 548 90 degree sectors

Leading to dramatically reduced CAPEX and OPEXLeading to dramatically reduced CAPEX and OPEX

New Business Models

Traditional Business Model

SP does most service development and delivery

Limited outsourcing

Extensive portfolio of skill-sets developed and maintained

Manual order processing, provisioning, and truck-rolls

Mass-market advertising or direct sales to create customer base

Applications, provisioning systems, and management interfaces are closed

Success can be impeded due to skillSuccess can be impeded due to skill--set shortages, set shortages, deployment inefficiencies, and high OPEXdeployment inefficiencies, and high OPEX

Virtual Service Provider Model (VSP)A service delivery ecosystem of VSP partners

An IP NGN architecture

Innovative Marketing and sales approach

Alternative route to accelerate Managed services adoption

Cisco can assist with VSP creation, solution architectures, capital leasing, and with expertise in consumer, SMB and vertical markets

Partnership Approach

* VSP can be either a new company or a new department within an existing company

Cisco Partner (SI)

VSP*

Out Tasking & Outsourcing

VSP services

Key Stakeholders

Local Partner

SP access services

SP

Vertical & Application Providers

Consumer

SMB Real Estate

Public Safety

Enterprise

Education Health

Strategic collaborative services such as network intelligence

Retail/ Consumer

Financial Services Government Manufacturing Media/

Entertainment

Key E-Business Solutions

Workforce optimization

CRMSupply-chain management

CRME-learningWorkforce

optimizationTelePresence

CRMWorkforce

optimizationSupply-chain management

E-learningTelePresence

Supply-chain management

E-learningWorkforce

optimizationTelePresence

Supply-chain management

Workforce optimization

TelePresence

IP VPNVoIP

Storage/CDNMobile wireless

WLANB-to-B/RFID

Key Service Provider Offerings

IP VPN Application Aware

VPNStorage Unified

communicationsDDoS, CSA, NAC

IP VPNApplication Aware

VPNStorage

CDNIP telephony

DDoS, CSA, NAC

IP VPN Application Aware

VPNUnified

communicationsCDN

IP VPNApplication Aware

VPNCDN (streaming)

Storage area networks

Mobile wireless

Horizontal Services to Vertical Markets

Business Drivers

Key vertical linkage is around packaging, bundling, selling

WiMAX & VSP impact on ROI C

US

TOM

ER

B

US

INE

SS

CA

SE

+33% (+82 M$) of cumulated Revenues in 3 years

Incremental revenue covers majority of investment

Higher Business customers penetration: +12% at the end of year 3

Boost Business customers ARPU: +60% at the end of year 3

With CISCO GTMACTIVE CUSTOMERS (year end) Y1 Y2 Y3

Residential 31,811 98,458 155,299

SME 2,192 6,729 10,774

REVENUES

Residential Revenues 13,679,173$ 76,453,661$ 134,710,760$

SME revenues 6,566,814$ 35,673,767$ 63,291,901$

TOTAL REVENUES 20,245,988$ 112,127,429$ 198,002,662$

ARPU (at last month of year)

Residential (recurring only) 85.47$ 83.80$ 82.13$

SME (recurring only) 569.38$ 563.62$ 558.21$

Without CISCO GTMACTIVE CUSTOMERS (year end) Y1 Y2 Y3

Residential 18,766 84,162 148,090

SME 1,220 5,471 9,626

REVENUES

Residential Revenues 6,255,813$ 61,669,499$ 124,837,943$

SME revenues 1,973,064$ 18,118,608$ 35,420,264$

TOTAL REVENUES 8,228,877$ 79,788,106$ 160,258,207$

ARPU (at last month of year)

Residential (recurring only) 85.47$ 83.80$ 82.13$

SME (recurring only) 377.13$ 363.09$ 349.05$

CIS

CO

VS

P

PR

OP

OS

AL

$248m Revenues over three years

Residential and SME market

Data built and validated with

customer

What Are Managed Services?Communications and information technologies delivered as finished solutions, managed remotely by highly skilled professionals from a Network Operation Center (NOC) – CPE and network-based

Managed services are proactively monitored and providers can provision devices and troubleshoot incidents from the NOC as governed by defined Service Level Agreements (SLAs) negotiated with end users

Managed Services are often offered on an operating expense basis that may not require capital outlay for the organization

*Disposition of title of CPE is not a determination of whether a service is managed

How Cisco Managed Services OfferingsLeverage Network Transformation

Transport Service

Integrated network

Virtualization platform

Application SERVICES

• Basic connectivity

• Secure Data-Voice Integration

• End to end QoS• Network based

security• Integrated

Dynamic call control

• Application awareness

• Collaboration• Extended

mobility

• UCaaS with Collaboration

• SaaS• Verticalized

Solutions

Service Differentiation

Cus

tom

er L

oyal

ty Basic Connectivity

Configurable and Adaptive Networking

Application Integration

Verticalizationvia SaaS

ISR Is a Solution Platform for Managed Services Simplified Choice, Enhanced Flexibility

Cisco Integrated Services Router“CPE of Choice”

Service Provider

One Router Family

Multiple BenefitsLower TCOLowest OpExSLA Enforcement

Customer “stickiness”Service and solution differentiationRevenue generation

Increased customer loyaltyEnhanced flexibilityIntegrated services

Multiple Revenue-Generating Productized Offerings

Managed VPNs

Managed Voice

Managed Security

EmergingApplications

Multiple ServicesWAN

OptimizationNetwork

Admission Control

Application Firewall

Intrusion Prevention

Network Foundation Protection

WirelessIP Telephony

URL Filtering

SSL and IPSec VPN

Customers Deployments

Increasing Revenue and Efficiency Through the Control, Optimization, and Delivery of IP Services

Max Telecom Bulgaria

• 90% population coverage, Business and Residential, > 8000 subs.

• The Big Package: flat rate, high speed internet 2Mbps, free on net voice, pre-paid voice minutes and mobile number, Web TV, charge for VOD

• Launching Mobile WiMAX in April with USB Dongle,

More than 50 Web TV Channel

NEW USB! - Introducing Mobility

High Speed up to 2Mbps -> 4Mbps

Softphone or CPE + ATA

Motion C5 Healthcare Terminal• Key Features and Options

– - Highly durable design with magnesium-alloy internal frame and elastomer overmolding

– - Highly sealed, disinfectable chassis

– - Optional integrated 1D/2D barcode scanner

– - Integrated 13.56MHz RFID reader with ISO 15693 support

– - Integrated 13.56MHz HF passive RFID tag

– - Integrated 2.0 Megapixel Camera

– - One-year standard warranty

– (upgradeable to two or three years)

– - Optional View Anywhere®Display

– - Motion® DataGuard™ Software

Motion Computing C5 Healthcare Tablet

• Intel design manufactured by Motion Computing in Austin, TX (Dell spinout)

• Connectivity– WiFi ,Ethernet, WiMAX

• Already used by Cisco Healthcare vertical team

– Security– Privacy– Extensibility– “Audio-visual medical

conferencing device”

Summary

Broadband Wireless Market Adoption Reason for WiMAX as Preferred Technology is Simple…

• Higher throughput per subscriber, lower latency, built for IP• Business Case for 802.16 better than traditional 3G systems• Models the successful “plug & play” scheme of Wi-Fi• First licensed-RF technology to enable “Personal Wireless Broadband”• Low licensing costs compared with 3G

It is Key that governments will allocated licenses in 2.5 & 2.3 spectrum alongwith allowing mobility services into the 3.5 where licenses have been awarded

Maximize coverage, and cell capacity using advanced adaptive beamforming techniques

Minimize the number of cells and basestations required for a given coverage area by 30 to 50%

Leverage the efficiencies if IP NGN infrastructures to extend services beyond the reach of wired technologies

Utilize Cisco Service Exchange Framework for low-touch subscriber provisioning and tiered-services

Increase subscriber satisfaction with easily deployed, high-performance mobile broadband services

Cisco Broadband Wireless AccessMobile WiMAX Value Propositions

The innovative Cisco BWX Broadband Wireless Access System enables service providers to:

Q & A