Transcript Converged VoIP Mesh Networks

Converged VoIP Mesh Networks
Ron Sege, President and CEO, Tropos Networks
October, 2005
Tropos Networks
Anytime, Anywhere Broadband Access.
Fast. Low Cost. Simple.
Internet
WiMAX
Self-healing Wi-Fi
Mesh
1
Tropos Control EMS
© 2005 Tropos Networks, Inc.
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0
1
2 Miles
Tropos Mesh Router
with PWRP™
Wi-Fi Device Explosion Continues
11Mbps
54Mbps
150Mbps
Dual mode phones
300
Cordless phones
Millions
250
180
200
160
150
140
100
120
50
0
Source: IDC
2002
2003
2004
2005
2006
2007
2008
140M+ Wi-Fi Client Devices
100
80
60
200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
Source: IDC
40
20
-
Source: Instat
2001
2003
2005(E)
2007(E)
120K+ Wi-Fi Hot Spots
© 2005 Tropos Networks, Inc.
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2004
2005
2006
2007
2008
Projected 160M+ Cellular
Phones with Wi-Fi
Mesh Takes Wi-Fi to Metro Scale
Open Standard
Progression
Speed
WiMAX
UWB
Wi-Fi
Wi-Fi
3G/UMTS
2G
PAN
LAN
MAN
WAN
• Wi-Fi originally
designed as a
wireless extension
for indoor LANs
• Mesh makes Wi-Fi
effective outdoors
over large areas
• WiMAX will
complement Metro
Wi-Fi for fixed
applications today
and mobile ones
tomorrow
Open-standards moving into wireless MAN + WAN
© 2005 Tropos Networks, Inc.
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Metro-Scale Mesh Deployments Today
250+ Paying Customers in 18 Months
Whistler, BC
Vancouver, BC
Federal Way, WA
Moorhead, MN
Gilbert, MN
McMinnville, OR
Nampa, ID
Livermore, CA
Pacifica, CA Healdsburg, CA
Half Moon Bay,
CA CA Milpitas, CA
San Mateo,
Burlingame, Cerritos, CA
CA
Lompoc,
CA Fullerton,
Newport Beach, CA LosCA
Angeles, CA
Laguna Beach, CAEncinitas, CA
Anaheim, CA
Malden, MA
Nantucket, MA
Washtenaw County, MI
Jamestown, NY
South Bend, IN Croton-on-Hudson,
Las Vegas, NV
NY
Philadelphia, PA
Boulder City, NV
Brocton, IL Rockaway Valley, NJ
Baltimore,
MD
Aspen, CO
Alexandria, VA
Chaska, MN
Greensboro, NC
Jackson, TN
Tulsa, OK
Cedar Island, NC
Oklahoma, OK Paris, KY Lynchburg, TN Franklin,
TN
Frisco, TX Addison, TX Roswell, GA Atlanta, GA
Montgomery County, AL
Granbury, TX Dallas, TX
Lafayette, LA
Grand Prairie, TX
Pensacola, FL
Baton Rouge, LA
Panama City, FL
Houston, TX New Orleans, LA
St. Cloud, FL
Corpus Christi, TX
St. Petersburg, FL
Miami Beach, FL
Metro-scale Wi-Fi is Now a Fact
© 2005 Tropos Networks, Inc.
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The Metro-Scale Interest Tomorrow
US Market Momentum
• >190 cities known by
Tropos to have
purchasing in process
for metro-scale
Wi-Fi in 2005
• 40 City RFPs due for
release from 7/1/05 –
1/1/06
© 2005 Tropos Networks, Inc.
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Major US Cities Considering Metro-Scale
Wi-Fi in 2005/2006
Albuquerque, NM
Anaheim, CA
Atlanta, GA
Austin, TX
Baltimore, MD
Bellevue, WA
Boca Raton, FL
Boston, MA
Charlotte, NC
Chattanooga, TN
Chicago, IL
Cincinnati, OH
Cleveland, OH
Columbus, OH
Corpus Christi, TX
Dallas, TX
Denver, CO
Detroit, MI
El Paso, TX
Fairfax, VA
Fargo, ND
Fort Worth, TX
Fresno, CA
Galveston TX
Honolulu, HI
Houston, TX
Indianapolis, IN
Jacksonville, FL
Kansas City, MO
Las Vegas, NV
Los Angeles, CA
Maui, HI
Memphis, TN
Miami, FL
Milwaukee, WI
Minneapolis, MN
Nashville, TN
New Orleans, LA
New York, NY
Oklahoma City, OK
Omaha, NE
Orlando, FL
Pasadena, CA
Philadelphia, PA
Phoenix, AZ
Pittsburgh, PA
Portland, OR
Sacramento, CA
San Antonio, TX
San Diego, CA
San Francisco, CA
San Jose, CA
Seattle, WA
St. Louis, MO
Tucson, AZ
Tulsa, OK
Washington, D.C.
Wichita, KS
Metro-Scale Mesh is Worldwide
Iceland
United Kingdom
Canada
United States
Puerto Rico
Mexico
Costa Rica
Kosovo
Spain Italy Greece Turkey
China Korea Japan
Algeria Malta Lebanon Iraq
Taiwan
Kuwait India
Thailand Philippines
Malaysia
Congo
Indonesia
Singapore
• Installations in
29 countries,
and growing
• Activities in
APAC, EMEA and
CALA
• Growing
international
ecosystem
Chile
Wi-Fi is a Truly Global Radio Standard
© 2005 Tropos Networks, Inc.
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Metro Wi-Fi Disruptive Economics
Example Network Covering Los Angeles Basin
Metro
Wi-Fi
1xEV-DO
DSL (ILEC)
Cable
Av. Revenue per User (ARPU)
$20
$651
$30
$45
CAPEX per Home Passed
$29
$54
$66
$70
Av. Cost per User (ACPU)
$6.70
$12.44
$16.88
$15.42
1 - 5 Mbps
symmetric
40 - 700 Kbps
asymmetric
5-Year Rollout
Expected Throughput
144 Kbps - 2.0 Mbps 256 Kbps - 5 Mbps
symmetric/
asymmetric
asymmetric
• Based on hypothetical build-out of Los Angeles Basin
• 1.4M homes passed, 20% penetration (280K subscribers)
• Wi-Fi ARPU is for fixed residential service only
• Mobility will add additional ARPU
1 Conservative estimate for 1xEV-DO ARPU rate at year 5
• ACPU includes depreciation; CapEx includes CPE
Source: Tropos, industry sources
© 2005 Tropos Networks, Inc.
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Metro-Scale VoWiFi Performance Today
• MetroMesh networks support 750 voice subscribers per
square mile
– Cellular-type model: 37.5 concurrent calls per square mile at 20:1
oversubscription
• Real-world round-trip latency of <40 msec
• Layer 3 Traffic prioritization and reservation over air-link
delivers carrier-class VoWiFi
• VoWiFi currently in use in many networks
“mVoWi-Fi” is operational today
© 2005 Tropos Networks, Inc.
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VoWiFi Cost Savings with Metro Coverage
Typical MVNO cost per subscriber per month = $13.50
(450 min/sub X $0.03 per min)
% of calls
Min/mo/sub
Cost/min
Both parties on VoWiFi network
25%
112.5
$0.00
$0
One party on VoWiFi network
40%
180
$0.015
$2.70
Neither party on VoWiFi network
35%
157.5
$0.03
$3.90
100%
450
$0.015
$6.60
Total
Cost/mo/sub
Savings per sub per month w/ metro coverage = $6.90
mVoWi-Fi can cut MVNO OPEX 50%
© 2005 Tropos Networks, Inc.
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Key Roaming Technologies for Convergence
• 802.11r provides roaming within Wi-Fi
– Provides fast roaming and fast BSS transition for 802.11
• Unlicensed Mobile Access (UMA) provides roaming
between Wi-Fi and cellular
– Provides access to GSM and GPRS mobile services over unlicensed
spectrum technologies, including 802.11
– Now part of 3rd Generation Partnership Project (3GPP)
802.11r
UMA
Standards-based roaming enables convergence
© 2005 Tropos Networks, Inc.
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Summary
• Wi-Fi client availability and native IP
infrastructure drives superior economics
• Mesh makes Wi-Fi work outdoors over large areas
• Metro Wi-Fi mesh for data and voice is proven
today
• Economics are superior for voice, too.
• Wi-Fi, IP and middleware improvements will
make VoWi-Fi experience even better over time
Superior economics will drive mVoWi-Fi adoption
© 2005 Tropos Networks, Inc.
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