August 24, 2003TELECOSM 2003

WiFi & 3G CDMA802.11a

Cordless Internet

802.11g

802.11b

Hot Spot

PWLAN

May, 2003

Industry Analyst Briefing Deck

August 24, 2003TELECOSM 2003

Source: QUALCOMM IT

Covering QUALCOMM’s Campus with WiFi

• QUALCOMM believes in 802.11 for the enterprise & home environments

• QUALCOMM has spent over $300,000 "full up costs" for the access points covering our common areas and meeting rooms

– 200 Access Point's represent in one mid size company in a restricted area campus an equivalent of 20% of Boingo's sites nationwide

– Access point installation currently costs about $1,500, at around $500 per an access point and approximately $1,000 in installation expenses.

- Cometa, May, 2003

August 24, 2003TELECOSM 2003

Public WiFi Service Limitations

• Data speeds– Limited by backhaul and multiple access scalability– 11 Mbps becomes irrelevant when connecting through a T1/E1 (~1.5 Mbps),

DSL or cable modem (300 – 500 kbps)

• “Hotspot” coverage– Very limited– Predicated on “travel to compute” model

• Backhaul costs• Landlord fees/revenue sharing

– Perceptions of ultra-low service fees are incorrect– Hotel room phone example– CTIA IT show / T-Mobile example

• Billing issues– WiFi roaming is in its infancy, need for multiple subscriptions

• Barriers to entry are few– “Java Joes” can provide free access next door to a Starbucks/T-Mobile

August 24, 2003TELECOSM 2003

103.8

5.9

0

20

40

60

80

100

120

2002 2003 2004 2005 2006

Number of public WiFi access points (est.)

Source: Gartner Dataquest 2002,

Mainstream Users Expect Ubiquitous Coverage

• A single 802.11 access point covers roughly 25,000 square feet– One or more APs consists of a WLAN “hotspot”

• A single suburban 3G cellsite covers roughly 750,000,000 square feet

By 2006, estimated U.S. public WLAN access points will

cover an area roughly equaling 3.5 cell sites

August 24, 2003TELECOSM 2003

T-Mobile/Starbucks averages 1 user / day / hotspotat 46 minutes each session

Source: Strategy Analytics, October 2002

Usage required to break even on just the T1 access lines: 90 users per AP!T1’s are expensive!

Limited to Backhaul: T1/E1 (~1.5 Mbps)

August 24, 2003TELECOSM 2003

100% of the “Hot Spots” in Both Cities are Covered by CDMA2000

Cisco Starbucks FinderSource: <http://www.cisco.com/warp/public/779/smbiz/cmo/yahoo/index.html>

• New York City– 96 Total “Hot Spots”

• 20 Wireline Locations– 20 Landline Ethernet Hotels

• 5 Wireless Locations (non-café)– 3 Admirals Clubs– 2 WiFi Hotel Lobbies

• 71 Starbucks

• San Francisco– 86 Total “Hot Spots”

• 15 Wireline locations – 15 Landline Ethernet Hotels

• 3 Wireless Locations (non-café)– 1 Admirals Club– 1 WiFi Hotel Lobby – 1 Restaurant

• 68 Starbucks

Are coffee shops the optimal place to work? What if you don’t get a seat…

4 % of these sites are Wireless and not owned by Starbucks

August 24, 2003TELECOSM 2003

http://www.verizonwireless.com/express_network/index.html

August 24, 2003TELECOSM 2003

Will P-WLAN services go the way of the pay phone?

Recent CTIA Trade Show (3/03, New Orleans)

Since cellular phones are now widely used and pricing plans include large bundles of minutes, payphones are

less popular

Hotspots offer a beacon of access today. What happens when cellular data pricing plans are lowered and

data rates increased?

August 24, 2003TELECOSM 2003

Source: http://news.bbc.co.uk/1/hi/technology/2175804.stm

History Lessons for Wireless Networks• Rabbit phone service: Subscribers to

the service, backed by Hutchison Whampoa, could make mobile calls when they were within 100 metres of a Rabbit transmitter.

• WiFi as a business?: Adam Zawel, Yankee Group - "The business models are still uncertain," he said. "That's why we've seen some early failures. It's an uncertain opportunity.”

• But if the history of Rabbit and its peers is any guide, location-specific services may prove unpopular.