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Licensed Product Competitive Update 2012 Kick Off Agenda • • • • • Market Trends Alvarion target customer and markets Winning vs. Huawei Winning vs. Airspan Summary Proprietary Information. 3 WiMAX Market Update BWA WiMAX Device Trends • • • The cumulative number of fixed WiMAX devices worldwide is growing showing a 10% quarterly growth. BWA WiMAX networks in CALA, the Middle East, and Africa are normally used as a complementary/ competitive offering to the existing DSL, cable, and fiber networks BWA WiMAX deployments are dominated by the use of residential gateways Proprietary Information. WiMAX Market Numbers Subscriber Growth and Service Revenues Growth Proprietary Information. 5 Competitive Landscape 2012 Vendor Macro BST Type Focusing on Tier Focusing on Competitive Matrix 1 operators, larger operators, Micro Pico FDD LTE, Offering concentrating on Best in class WiMAX RAN portfolio. Flexible to multiple scenarios, het-net , rural and remote deployments Focusing on Tier Aiming for 1 operators, FDD Alvarion install LTE, Offering base, attacking Diversity standardized Alvarion's solutions only positioning, less proven Frequencies (GHz) deployments, less comprehensive solutions standardized solutions only APAC, leading 6 TD-LTE efforts - (Micro) 2x2 2x4 4x4 - 2.3 2.5 3.5 - Power Output Macro Tx Micro Tx Pico Tx 38 36 dBm dBm 27 dBm 4x4 40 dBm 40 27 dBm dBm 40/37 dBm 2.x/3.x GHz 27 dBm 2x2 10 MHz 27 40 35 dBm dBm dBm 4x4 Indoor 10 MHz 40 40 dBm dBm 27 dBm Product Architecture Zero Footprint or Cabinet Cabinet or All Outdoor Macro/Micro Cabinet or All Outdoor Micro* All outdoor Cabinet or All Outdoor Micro* Cabinet or All Outdoor Micro RRH(Macro) IF Optical NA Optical Optical Proprietary Information. Winning vs. Huawei Proprietary Information. About Huawei • • • • Private company, backed by Chinese Government and headquartered in Shenzhen More than 100K employees (~50% R&D), 20 regional HQs, additional 100 branches Product lines: full telecommunications equipment portfolio • Customers include 35 of top 50 telecom carriers worldwide including Vodafone, BT, Telefonica, FT/Orange, China Mobile, KPN, Deutsche Telecom, Telecom Italia and America Movil Considered to be a financially strong company, investing at least 10% of annual revenues in R&D • Strong IP portfolio :Huawei filed 39,184 patent applications; ranked among top three companies worldwide in LTE essential patents • Large involvement in 91 international standardization organizations: holding over 100 positions (including WiMAX Forum®) Proprietary Information. 8 Huawei • • What to emphasize: • • • • • • Product scalability : Macro Indoor &Outdoor , Micro , BreezeCOMPACT…. Hidden price / complex BOM :Many feature licenses (10 MHz, MIMO A/B per sector) Alvarion is easier to do business with, more flexible and customer oriented Alvarion’s vast, field-proven experience and large installed base Alvarion’s open, best of breed ecosystem Alvarion ASN- GW enables a real pay as you grow What to avoid: • • • Comparison of product HW prices: shift focus to pricing of a complete solution instead and emphasize Alvarion’s reduced Total Cost of Ownership (TCO) Financing: deal with this aspect separately, try not to bundle with technical discussions on the most suitable solution for a customer Huawei have TD-LTE networks : “closed garden” eco system new technology …. Basic SW Item BS Basic Software Package Active Users Software(per user) 10MHz Channel Bandwidth Software USD 1,422 17 Quantity per BS 3 196 105 3 720 3 MIMO Matrix A,Matrix B adaptive (per FA) Optional SW Ethernet Service Software Package(per FA) UL Enhancement Software Package Proprietary Information. 9 Winning vs. Airspan Proprietary Information. About Airspan • • • • • US company owned by Oak Investment Group (VC) – NASDAQ Pink Sheet Provider of sub 6GHz PtMP 4G Solutions Target segments: Alvarion like ….and Smart Grid and Smart Cities and… Aggressive in its Sales and GTM Aggressively approaching Alvarion customers and partners Proprietary Information. 11 Airspan • What to emphasize: • • • • • • • • • • Product line scalability: Macro Indoor &Outdoor , Micro , BreezeCOMPACT…. Unlicensed portfolio!!! Product Maturity :Alvarion’s vast, field-proven experience and large install base– Airspan don’t have single large network on 16e…. 16d to 16e migration experience – Alvarion is the ONLY company migrating its customers including CPE form TDD/FDD to 16e Alvarion’s open, best of breed ecosystem – Alvarion IOT for devices and Core is significantly larger Alvarion ASN- GW enables a real pay as you grow – Airspan have to work with Starent ASR5K or EOL XT2 or in proprietary mode…. Alvarion feature set : Scheduling , Standard ETHCS/IPCS versus proprietary “stand alone”, RRM, Mobility, Idle mode, POE out.. Alvarion NMS and CPE offering Airspan has very slim support organization Low project planning and post sales capabilities – absence of 3rd party network device deployment knowledge and practice Watch out : • • Comparison of product HW prices: shift focus to pricing of a complete solution actual project “burden” LTE discussions – Airspan have “good story” but in reality it is opportunistic and not scalable…. Proprietary Information. 12 Summary Proprietary Information. Competitive Analysis • Alvarion’s strength is in Tier 2&3, with flexibility and customization. Alvarion has the best fitted solution for its target market. • E2E capabilities 6 5 Airspan is focusing is on Tier 2 &3, rural customers, and on Alvarion’s install base - Flexibility 4 Financing 3 2 offering attractive prices and LTE-ready 1 0 products (well perceived by market ?) • Tier-2/3 Deplyment Fit Price ZTE has enhanced products: LTE ready, one box solution leaving WiMAX. • NSN is under NewNet : acquisition • Huawei &Samsung- Tier1, big e2e projects mainly. Product Bench Mark (+ LTE Ready) Field Proven & Reliablility Huawei + Samsung ZTE Alvarion Airspan Proprietary Information. 14 When does Alvarion Win? • Proven success with flexibility and Tier 2&3 fit (BARRET, ELRO) • • E2E capabilities CPE verity customization is a strength Flexibility URBAN 4G Full Scale deployments – out of range (UQ, CLWR) • Tier-2/3 Deployment Fit 6 5 4 3 2 1 0 Financing Price 3.x GHz aggressive product price competition leadership Field Proven & Reliablility Product Bench Mark (+ LTE Ready) Proprietary Information. 15 Thank You Proprietary Information. 16