2003 ECO 11

Slide 1: 

© 2003 Inspired Broadcast Networks, Ltd. Europe’s largest, most sophisticated Wi-Fi network Nationwide coverage 2,700+ sites deployed since April Currently rolling out 150 a week World class infrastructure Carrier-grade Ericsson access points Private DSL network for backhaul Fully redundant network core Verified by Intel to support all major applications Neutral, multi-service provider platform Branded service providers (BT, mobile operators, large ISPs, cable companies) sell their own branded Wi-fi service directly to their customers using our network

The Cloud’s unique approach: 

© 2003 Inspired Broadcast Networks, Ltd. The Cloud’s unique approach Deploy massive coverage, so that a Wi-fi hotspot is conveniently available anywhere in the UK. The network integrates sites deployed directly by The Cloud with third party sites managed by The Cloud. The goal is to manage as many network locations as possible, regardless of who actually owns the sites. On track for 20,000 sites by end of 2004 Operate a carrier class network, support all VPN, security and authentication solutions, over a private leased backbone, with full SNMP-management of all network elements. Offer the network on a wholesale basis to various branded Service Providers (BT, the cellular carriers, ISPs, etc) so that they can offer Wi-fi services to their customers using their own brand Give the SPs full control over the user experience, so that their users see only their SP’s brand, use the services integrated by their provider, and are billed for usage on their normal SP’s bill. Facilitate the growth of Wi-fi by working actively with the rest of the wi-fi eco-system.

Why bother?: 

© 2003 Inspired Broadcast Networks, Ltd. Why bother? Public Access Wi-fi has been around for several years in the US and has not been a success. What’s changed? Intel. It’s hard to underestimate the effect of $300 million worth of marketing, a significant investment budget, and 14 million Centrino-based laptops sold this year with Wi-fi. Intel continues to play a pro-active role in areas such as seamless roaming, operator standards, etc. Deep penetration of access points in the enterprise and at home. An access point is deployed every 4 seconds, and home and office use will drive a desire for out of home connectivity. More mobility and the need for connectivity: people who want access during their working day (70% of laptop users work at home, 50% in hotels, 40% at customers, and 30% during travel). The key is to get people used to frequent, short access sessions. More Applications. Broadband penetration is finally at a tipping point, with more creative devices, more bandwidth hungry applications, and more specialized devices like music players. 3G. Realization in Europe that 3G is unlikely to provide a viable service anytime soon is bringing the major operators into the space.

So why hasn’t it happened yet?: 

© 2003 Inspired Broadcast Networks, Ltd. So why hasn’t it happened yet? We need to address the weaknesses in most public Wifi operating models: Inadequate coverage Poor marketing Hard to use services Prohibitive pricing regimes Cumbersome payment arrangements By pushing a more accessible model: Massive nationwide coverage Sold through a recognized and trusted service provider Accessed using a client on the laptop or PDA (with automatic SSID recognition, stored username and password, easy login and logout) Priced by the minute at similar to cellular rates Billed using an existing service provider billing relationship And by redefining success Analysts keep looking for Wi-fi penetration to reach cellular levels, ie tens of millions of users. But Wi-fi is cost effective and profitable in a country with a order of magnitude fewer customers.

The key in Europe is to align with the Service Providers: 

© 2003 Inspired Broadcast Networks, Ltd. The key in Europe is to align with the Service Providers European customers expect a high quality, universal service from their provider, including seamless roaming and easy billing. The best way to drive Wi-fi penetration is to bundle it with existing service offerings Most service providers don’t want to build their own network Yet as their brand is paramount to them, they resist selling a third party’s branded coverage. By building a large, high quality network while letting branded Service Providers specify and sell services under their brand to their existing customers, Service Providers have the opportunity to fill a weakness in their product portfolio Each service provider can determine the authentication methodology, the security protocols, the billing options, the branding and the service look and feel. The Cloud is immediately available to its wholesale partners, allowing new SPs to easily enter the market for integrated broadband wireless data. Each type of service provider has a different motivation: Mobile operators like integrating Wi-fi with GPRS on the client so that carriers can more effectively become “mobile data” operators, regardless of the bearer technology. Fixed line and cable operators see Wi-fi as a way to expand back into mobility and protect their main markets

Our place in the wi-fi world: 

Our place in the wi-fi world

Slide 7: 

© 2003 Inspired Broadcast Networks, Ltd. The Cloud: Shared, Neutral Infrastructure Service ProviderA Service ProviderB Service Provider A User Service Provider B User

More Coverage and Applications: 

© 2003 Inspired Broadcast Networks, Ltd. More Coverage and Applications The Cloud is leveraging the systems used to support its own massive coverage to facilitate the deployment of third party coverage, the management of those sites, and the interconnection of traffic to SPs The Cloud integrates 3rd party sites into its network and manages all traffic (for example 7,000 sites for NWP Payphones) The Cloud manages networks on behalf of a wireless ISP so they can focus on deploying coverage (for example, Square Mile in yacht marinas) The Cloud is integrating enterprise deployments into the public networks by working with major technology vendors to deploy public roaming channels on private infrastructure. The Cloud will host and integrate third party applications into the network so that new services can be easily deployed The Cloud hosts service management platforms in its data center so that Sun, Service Factory, etc can sell a turn key solution to vWISPs and carriers anywhere in Europe

The Cloud’s Wi-fi hub: 

© 2003 Inspired Broadcast Networks, Ltd. IP Interconnect Services Service Selection Interface Prepaid Service Management Service Management Platform Roaming Service Management Wi-Fi + Terminal Packaged Hotspot Third Party Hotspot & Peered Networks Enterprise Hotspot IBN Managed Private Network Infrastructure Site Network The Cloud’s Wi-fi hub Remote Service Management Platform Service Provider Application Platform Private Network Hub Internet Site Networks Backhaul Managed Interconnect Network Services Internet

Expanding Infrastructure: 

© 2003 Inspired Broadcast Networks, Ltd. SiteLAN DSL Tail Data Centre(Manchester) InternetGateway BT Central 155Mbps centralconnect Data Centre(London) LAN bridge ServiceProviderInterconnects InternetGateway EuroDSL SiteLAN Co-Lo Platform forApplication & Services European Site Backhaul Infrastructure UK Site Backhaul Infrastructure Co-Lo Platform forApplication & Services Expanding Infrastructure

Slide 11: 

© 2003 Inspired Broadcast Networks, Ltd. Wi-fi Ecosystem Equipment companies & suppliers (HP, Proxim, Cisco) Device Suppliers (Sony, HP, Palm) Application Suppliers (IBM, Cap Gemini) Service Providers (BT, Boingo, WeRoam) Interested Parties (Government, Promoters, Retailers) Technology Companies (Intel, Ericsson) Site Owners (Retailers, Property Owners, Systems Integrators, WISPs and vWISPs) Occupying the Center of the Wi-fi ecosystem The Cloud acts as a neutral enabler, working with a broad range of partners to achieve their agendas and push Wi-fi adoption – and ultimately traffic on our network and penetration into site estates.

Driving usage on all networks: 

Driving usage on all networks

How to separate the hype from reality: 

© 2003 Inspired Broadcast Networks, Ltd. How to separate the hype from reality Is Wi-fi the next dot.com bubble? Unlikely… Investment to date in the UK is closely tied to rational revenue models. By charging service providers upfront fees, we align the risk with our customer. Market projections are closely tied to the trends of increasing data use, more mobility, more devices and more applications. Even the pessimistic numbers are impressive: 1.6 million enterprise wireless LAN users in the UK by 2008 implies a market with annual revenues of 400 million So what does the future hold? Wi-fi is addictive, so in the enterprise, slow initial growth will be followed by more rapid penetration by end 2004. Biggest opportunity is integrating roaming public access Wi-fi into the enterprise, allowing guest users to behave in someone else’s office as if they were in their own. Future growth can also come from consumer use of connected devices, voice applications, telemetry, M2M communications, and many other segments

WiFi Adoption curve:The changing face of the CustomerBeginning with Enterprise users and migrating towards the consumer: 

WiFi Adoption curve:The changing face of the CustomerBeginning with Enterprise users and migrating towards the consumer Usage 2004 2005 2006 Business users Enterprise access Road warriors Telematics and Workflow apps Consumer apps Music/Video VoWIP

Conclusions: 

Conclusions

The Cloud: 

© 2003 Inspired Broadcast Networks, Ltd. The Cloud Making public Wi-fi real Financially stable Technically sophisticated Operationally resourced Aggregator of the largest number of sites and services Neutral Pursing a creative and responsive vision And you can use it today…