BreezeMAX™: Deliveringthe Promise of WiMAX

Opening The DoorTo WiMAX!!

Milestones

July2005

Commercial availability ofBreezeMAX PRO CPE withIntel® PRO/Wireless 5116 chipwith voice, data and WiFiinterfaces

Live showcase of BreezeMAX Si– self install CPE with Intel®PRO/Wireless 5116 chip

BreezeMAX: The most widelydeployed WiMAX-readyplatform in more than 30countries and with over 100operators

First vendor to showcaseWiMAX-ready CPE withintegrated Intel® PRO/Wireless5116 chip in WiMAX Forum labs

BreezeMAX 3500 commerciallaunch

Announcement of Intel/Alvarionstrategic collaboration fordevelopment of WiMAX chip(Intel) & system (Alvarion)

Alvarion was our first partner backin 2003 when we identified WiMAX as akey strategic objective for Intel as acompany. Alvarion’s BreezeMAX PRO CPE,using Intel’s PRO/Wireless 5116 broadband

interface system-on-chip, reflects our close relationshipoverall. Intel and Alvarion will continue to develop WiMAXtechnology to enable a mass market while moving towardsa mobile, interoperable future.

Scott RichardsonGeneral Manager, Broadband Wireless, Intel®

Alvarion has been with the WiMAX Forumfrom the beginning as a major advocate of thetechnology and one of the key companiesdriving the standard. Its already numerousBreezeMAX deployments confirm Forum claims

of service quality, capacity, coverage and economics and havegenerated substantial market interest in WiMAX. In addition,Alvarion’s presence and leadership in key working groups ofthe organization have been invaluable.

Ron ResnickPresident, WiMAX Forum™

June2005

May2005

April2005

June2004

July2003

1

Revenues(US$ millions)

For over a decade, Alvarion has been developing and offeringwireless broadband technologies integrated into carrier-qualityplatforms to operators, service providers, municipalities, enterprisesand beyond.

From the beginning of the industry, Alvarion has been a leaderin the broadband wireless access (BWA) market. As the world’slargest vendor of wireless broadband networking equipmentinfrastructure, the company has earned the respect and trust ofover 2000 carriers worldwide, building that customer base intothe leading market share position in the BWA market.

Financially strong and built for the long term, Alvarion’s worldclass products and technology platforms address every major BWAmarket segment.

From providing high-performance, multi-service broadband accessand data and voice services in the last-mile, facilitating cost-effective feeding for cellular networks and enabling building to-building connectivity and public wireless LAN, Alvarion’s productsoffer the full spectrum of wireless broadband applications.

Alvarion has played a significant and proactive role in every majorwireless standards board that has cultivated the establishment ofindustry protocols. Forging the future direction of the BWAcommunity since its inception by serving in leadership positionsin global organizations, the company has also donated technologyto advance standardization. Alvarion is proud to be a primarydriver in enabling the increasing widespread acceptance of BWAtechnology and systems.

Alvarion: A Legacyof Leadership

Once the Rosedale chip is launched andsystems begin to be certified by the WiMAXForum, the potential of WiMAX can be realizedworldwide. Alvarion’s BWA and OFDMexperience continues to position the company

as a strong WiMAX equipment vendor. The commercialdeployments of Alvarion’s BreezeMAX platform demonstratethe capacity and quality of service achievable with WiMAX,also helping to increase confidence in the technology.

Lindsay SchrothSenior Analyst, Yankee Group

WiMAX clearly complements existing andemerging 3G mobile and wireline networks,and can play a significant role in helping ourcustomers deliver converged service offeringsthat can be accessed using a broad range of

devices on a wide variety of networks. We’re very excited towork with Alvarion because they are the front-runners andthought leaders in the WiMAX arena and this relationship willenhance our product portfolio.

John MarinhoVP Strategic Marketing, Lucent Technologies

Alvarion Quarterly Revenue Growth

57.2

44.748.8

55.960

50

40

30

20

10

00

Q104 Q204 Q105Q304

52.2

Q404

2

With more than 2 million units deployed in 130 countries,Alvarion is the uncontested leader in the wirelessbroadband market. An extensive and proven productportfolio offers both fixed and mobile solutions, coveringa wide range of frequency bands from 450 MHz to 28 GHz.

Alvarion’s worldwide installations are the result of a global salesforce, several world-class OEM partners including Alcatel, Lucent,Siemens and Nera and more than 200 local partners. Alvarion’scustomers can offer the full complement of network applications,including:

Broadband accessCorporate VPNsToll quality telephonyMobile base station feedingHotspot backhaulCommunity interconnectionPublic safety communicationsCellular network extensionsMobile voice and data

Targeted for various user profiles including:

Residential(SOHO) small office and home office(SME) small and medium enterprises(MTUs and MDUs) multi-tenant and multi-dwelling unitsCorporate businesses

Alvarion’s products solve any carrier deployment challenge -whatever the population diversity or operating environmentwhether in rural, suburban or urban areas.

Highlights Largest BWA vendorLargest install base - over 2 million units installedin 130 countriesAlvarion solutions deployed with over 2000 carriersWiMAX Forum board and charter memberFirst to introduce CPE with integrated IntelPRO/Wireless 5116 broadband interfaceAnnounced mobile WiMAX productFinancially strong, built for long-termpartnershipStrong OEM channels: Alcatel,Lucent, Siemens, NeraOver $200M revenue in 2004

3

An implementation of the IEEE 802.16 standard, WiMAX(Worldwide Interoperability for Microwave Access) is a standards-based wireless technology providing metropolitan area networkconnectivity of high-throughput, broadband data and toll-qualityvoice services in networks covering long distances and wideranges. WiMAX enables scalable, carrier-class solutions to supportthousands of users with a single base station, while providingdifferentiated service levels. A WiMAX Metropolitan Area Network(MAN) is configured in a cellular manner with base stationsstrategically located to provide metro-area coverage via point-to-multipoint (PMP) wireless connectivity with robust equipmentfit for all climates and terrain.

Alvarion embraced the arrival of the WiMAX Forum from thevery beginning. As a charter member of this prestigiousorganization and holding two vice-presidency chairs, Alvarion ishelping to lead the industry towards the widespread adoptionof standard WiMAX products.

...And Access for AllDriven by the WiMAX Forum, WiMAX certified products willmean standardized and interoperable systems, among variousindustry vendors, which will result in significant reductions inequipment costs and lower operator risk. Cost reductions willimprove business cases, while enabling more affordable andwidespread broadband access for business and residential users.

In terms of market share, Alvarion is theleading global supplier of broadband wirelessnetworks. The company continues to strengthenits market position through acquisitions and newproduct development. The launch of Intel’s

PRO/Wireless 5116 broadband interface, which is embedded intoAlvarion’s new BreezeMAX CPE, will further strengthen their productline as the market embraces WiMAX. With market expectationsof approximately $1.5 billion in 2009, Alvarion will be a catalystin achieving this market potential.

Emmy JohnsonPrincipal Analyst, Skylight Research

WiMAX: Industry Conceived,Alvarion Delivered

Worldwide BWA Equipment Revenue 2004-2009

Skylight Research November 2004

4

515

878

1,530

3000

2500

2000

1500

1000

500

0

20062004 2007 20092008

3500

$ Millions

2005

2,170

2,850

3,294

Partnership with IntelAlvarion’s industry leadership and foresight led to itsselection by Intel as the first vendor to collaborateon the development of WiMAX products. By April2005, Alvarion had another first, the incorporationof Intel’s pioneering WiMAX chip into the BreezeMAXproduct line. In the same month, the BreezeMAX PROCPE was showcased in front of numerous operatorsand media personnel at the WiMAX Forum’s Face2FaceEvent in Malaga, Spain. Performing in a live demonstration,spectators gathered in the Cetecom lab, the official testing lab ofthe WiMAX Forum, and witnessed triple play (data, voice andvideo) services from a BreezeMAX CPE system, embedded withthe Intel chip, PRO/Wireless 5116 broadband interface. Allsubsequent versions of BreezeMAX CPE, including the self installCPE model, will be embedded with Intel’s PRO/Wireless 5116broadband interface.

Taking WiMAX to the MAXThe launch of Alvarion’s BreezeMAX platform in mid-2004 wasa key industry milestone and reinforced Alvarion’s leading positionin the development of WiMAX technology. Leveraging field provenOFDM technology and non-line-of-sight (NLOS) capabilities fromthe BreezeACCESS® product family, BreezeMAX was deployedcommercially in numerous sites around the world within a fewmonths of its launch.

Its deployment in over 30 countries since its introduction meansthat Alvarion has been instrumental in driving WiMAX to its currentplace of prominence with major operators. The results of all theseefforts have been extremely satisfying, as WiMAX standards havesucceeded in moving broadband wireless into a mainstream lastmile solution alongside DSL and cable modems.

Soon the Forum will ratify the IEEE 802.16e standard to realizea mobile broadband version of WiMAX. With this action, theForum will create an all IP mobile offering that will be capable ofconnecting users with broadband wherever in the world they maytravel. The widespread deployment of mobile will be achievedthrough volume opportunities for silicon and system suppliers thatwill result in improved economics for carriers and the extensivedeployment of fixed and mobile BWA networks.

WiMAX product certification planned to start in H2-2005WiMAX organization includes more than 250 members among them operators, vendors, systemintegrators, chip vendorsWiMAX benefits:

End users: more broadband options, lower prices, fixed, portable and mobile servicesService providers: standard technology, lower risk, new markets, better ROI

Highlights

5

Our business model is focused onproviding broadband to rural and urban areasthat are currently not reached and would behard pressed to be served by DSL networks.Until now, we have been concentrating our

efforts on delivering critical access to large enterprises– astrategy which has proved to be highly successful. WithBreezeMAX, we can achieve the proper economics of WiMAXwith smaller business customers and residential users. TheBreezeMAX solution is the key element to rolling out broadbandservices to these types of users.

Carlos MorrellCEO, Iberbanda

We are investing heavily in our wirelessbroadband network and need to be sure thatwe have the most experienced vendor withthe best equipment onboard.

Bertrand LebarbierAssistant General Manager Back Office

Development, Altitude Telecom

WiMAX is essential to our future successand has provided us with a strong and profitablebusiness model. BreezeMAX provides operatorslike us with the flexibility to serve a varietyof business and residential customers, costeffectively – and profitably.

Jean-Paul RivièreChairman & CEO, Altitude Telecom

BreezeMAX:WiMAX and Beyond

BreezeMAX is Alvarion’s WiMAX-ready platform leveraging thecompany’s BWA industry leadership, proven field experience, andadvanced core wireless and networking technologies includingmany years of experience with OFDM technology.

Powered by Intel’s PRO/Wireless 5116 broadband interface,BreezeMAX is able to meet the requirements of a myriad of serviceenvironments, from sparsely populated rural areas to high-densityurban areas. BreezeMAX delivers broadband access services to awide range of customers, including residential, SOHO, SME, largeenterprise and multi-tenant customers.

The system, with excellent sensitivity and market leading OFDMradio technology, is robust to operate in adverse channelconditions and non-line-of-sight links. With high power radiosthat support diversity and smart antenna techniques, BreezeMAXenables the use of indoor self-install CPEs in both dense urbanand suburban environments.

BreezeMAX supports a wide range of network services, includingInternet access, VPNs, Voice, E1/T1, video and multimediaapplications. The advanced Quality of Service (QoS) capabilitiesenable operators to offer differentiated SLAs with committed QoSfor each service.

6

Path to MobilityThe upcoming mobile WiMAX standard promises to bridge thegap among various services that were previously unavailable tomobile users. Among Alvarion’s series of “firsts” in penetratingthe market with WiMAX-ready products is the introduction of aBreezeMAX application capable of delivering mobile wirelessservices over cellular networks. This is new and uncharted territorywhere a standard cellular phone or PDA equipped with newtechnology becomes an all-in-one communications center forvoice, broadband Internet, email, video streaming and beyond.BreezeMAX platform has a clear upgrade path to support theemerging WiMAX mobile industry.

Mobile WiMAX opens the door to true broadband mobility andgreater mass-market opportunity with standard based chipsintegrated into laptops and PDAs. It further reduces theburden on operators and increases opportunities for operators tomake good on the promise of broadband access that is availableanytime, anywhere.

Complete Spectrum SolutionAlvarion’s BreezeMAX platform supports a variety of frequenciesin both licensed and license-exempt bands including 1.5GHz -6GHz bands, and leverages both FDD and TDD technologies.

The WiMAX technology will enable realwireless mobility. In other words, it will giveus the freedom to use our laptops or PDAsto access the Internet or transmit voice withgreater capacity and better quality of service

than other current options. It is fundamental to be at theforefront in the development of wireless access solutions.Working together with Intel and Alvarion, main providers ofwireless solutions and WiMAX worldwide, guarantees oursuccess and strengthens our position in the market. We willremain committed to our customer’s needs, by developing themost ample and innovative national broadband wireless networkin Argentina with presence in over 70 cities.

Luis GalliGeneral Manager, Ertach (formerly Millicom Argentina)

WiMAX platformField provenDeployed in over 30 countriesWide variety of frequencies: 1.5GHz - 6GHzFDD / TDDModular & scalable architecture

Self-installMulti-service with QoSBest NLOS and coverage performanceSuitable for residential, business, MDU/MTU,hotspot, backhaulFixed, portable and mobile services

Highlights

As part of its user-centric vision, Alcatelis committed to providing end-users with aseamless broadband experience, whatever theaccess technology, Our agreement with Alvarionwill allow us to offer service providers a fixedwireless broadband solution matching theircustomers’ current needs.

Marc RouanneCOO of Mobile Activities, Alcatel

7

Outdoor

Mobile

Portable

Indoor

Macro Base StationThe macro base station is an 8U high cPCI shelf that fits in standard19” or ETSI racks. The base station contains a network and radiomodules, power supply and power feeding modules. All themodules are hot swappable and high availability can be providedthrough multiple redundancy schemes. Support for smart antennatechniques, including space time coding (STC), polarization diversityand maximum ratio combining (MRC) together with high powerradios enable the operation of indoor self-install CPEs in denseurban and suburban environments.

Micro Base StationThe micro base station is ideal for operators needing a costeffective, scalable WiMAX-ready base station solution for maximumreturn from their network deployment, especially targeted forlow-density or rural areas.

It is comprised of a stand-alone module (1U high 19”) that connectsto the same outdoor radio unit as the macro base station radio.With this common connection, operators have the ability to mixand match base station types according to deployment needswhile enjoying the same feature set, provisioning and managementfunctionality in both base stations.

BreezeMAX Base Station:The Heart of the Network

8

The BreezeMAX base station is a highly modular andscalable base station, available in both micro and macrosizes to ensure maximum cost efficiency. Both base stationtypes share the following key attributes:

WiMAX-ready design for future support of WiMAX-certified modeOFDM, OFDMA, smart antenna technology that enablesindoor self install capabilitiesFlexible and modular design with unmatched sharingcapacity of one line card on four radio sectors spirallingup to the capacity of four line cards on one radio sectorenabling capacity from 4.5Mb up to 72Mb per sectorOver 30km coverageSNMP central management using AlvariSTAR™

Carrier class, high availability, fully redundant designOFDM, OFDMA, smart antenna technologyBest cost/performanceWiMAX-readyOver 30km coverageAdaptive modulation: BPSK, QPSK, QAM 16 and QAM 64AlvariSTAR: Carrier class NMSCapacity up to 72Mbps per sector and 432 Mbps per base station

We specifically chose Alvarion’sBreezeMAX platform because we are lookingto the future – we want a network which iseconomical and can be easily expanded. Duringthe first stage, we plan to devote particular

attention to the needs of enterprises so that they can contendwith overseas competitors. However, our Alvarion network willbe more than capable of serving the entire population of theisland – businesses and residential customers.

Pascal BonoChairman of XTS Telecom Board, XTS Telecom

Highlights

MacroMicro

BaseStation

PCMCIA,Laptop, PDA,Indoor CPE

PSTNData

Network

NMS/AlvariSTAR

Indoor CPEwith windowmountedantenna

Outdoor CPEfor externalcoverage

Portable andmobile services

Wireless DSLwith tripleplay services

Coverage RangeCove

rage

Ran

ge

9

The subscriber unit (SU) installed at the customer premises providesdata connections to the access unit (AU). Extremely reliable, itserves as an efficient platform for a broad range of services,including high-speed access to IP based services at a net data rateup to 10 Mbps over a 3.5 MHz channel.

The BreezeMAX platform comes with several CPE types to provideoperators with the ultimate flexibility to serve diverse range ofbusiness and residential customers cost effectively.

There are two primary types of CPE units, a self-install indoor CPE,and for longer range, an outdoor CPE. Both CPE types supportthe same rich set of features based on Alvarion’s vast experiencein development and deployment of broadband wireless networksthat boast over 2 million deployed units, including:

Powered by Intel PRO/Wireless 5116 broadband interfaceWiMAX-readyNon-line-of-sight (NLOS) operation functionality utilizingOFDM 256 FFT, OFDMA and AAS technologyDynamic Adaptive Modulation on a per burst basis toprovide most reliable and robust wireless link availability inharsh environmental and radio conditionsAutomatic Transmit Power Control (ATPC) for quick andeasy installation process that maximizes performance whileminimizing interference“Best BST“ feature that automatically scans and selects thebest serving base station based on radio signal strengthparameters as well as providing radio link redundancy functionalityOver the air remote software download functionalitywith dual flash “fail-safe“ mechanism. Automatic softwaredownload to multiple CPEs at a pre-scheduled time- saveson technician visits at customer locationsComprehensive LED visual indication for ease of installationand maintenanceRemote management support via SNMP. The BreezeMAXCPEs are fully managed by AlvariSTAR NMS

Subscriber Units:Customer-Centric For All Service Needs

BreezeMAX PRO CPE: Professionaland Long Distance InstallationsReaching out across the milesThe BreezeMAX PRO CPE is comprised of an outdoor radio unit(ODU) and an indoor network interface unit (IDU). The CPE ODUcontains the modem, radio and integral or external, high-gain flatantenna. The BreezeMAX CPE IDU is available in multiple networkconfigurations to optimally serve the broad array of marketsegments and applications. Each version of IDU connects directlyto the ODU via a category 5 Ethernet cable that carries the datatraffic, power and control signals between the IDU and ODU.

Broadband Data IDUThe BreezeMAX broadband data IDU is the basic CPE providingwireless connectivity. It connects the subscriber’s PC or networkvia a standard Ethernet 10/100 Base-T (RJ 45) interface.

Our vision is to create an out-of-the boxwireless broadband solution for everyone. Anaccess that is easy to set up and use, costeffective and available 24/7. By workingtogether with Intel and Alvarion, we are turning

this vision into reality, and since we’ve proven that thistechnology works not only in test labs but in a real worldenvironment, cities throughout Scandinavia and Europe,especially those in remote areas underserved by wirelineinfrastructure can immediately benefit from MobileCity In-a-Box. This is the next step in Internet connectivity, and a businessopportunity for cities and companies in general and for ISPsin particular.

Göran ErikssonCEO, MobileCity

10

Networking Gateway IDUThe BreezeMAX networking gateway IDU is the optimal networkingsolution for both home and small business users. It features anadvanced integrated broadband router with comprehensive IP-sharing and security capabilities. The networking gateway IDUhas four 10/100 Base-T ports and a wireless access point. Thisnetworking solution is so powerful that it can enable comprehensivehigh-speed connection sharing for multiple users, while providingthe freedom of high-speed, wireless broadband connectivity tohome and SOHO networks with integrated 802.11b/g WirelessLAN functionality. With features such as static & dynamic routing,NAT functionality, built-in firewall and an indoor WiFi coverage,the networking gateway presents operators with a compellinghigh quality, home networking solution.

Broadband Voice Gateway CPE IDUThe broadband voice gateway IDU provides integrated voice anddata services for residential and SOHO users and is available intwo models:

One 10/100 Base-T data port and ONE RJ-11 voice POTS portOne 10/100 Base-T data port and TWO RJ-11 voice POTS port

Featuring advanced voice and data functions such as VLAN tagging,traffic prioritization by IP DiffServ, H.323 and SIP protocols support,Class 5 voice services (3-Party conference, call waiting, call hold),integrated management and more, the broadband voice gatewayIDU presents an ideal solution for operators seeking to serve thecombined services of broadband voice and data.

Integrated Intel® PRO / Wireless 5116broadband interfaceSelf-install and outdoor for extended coverageIntegrated SIM smart cardData, voice, WiFi and E1 / T1 interfacesFull indoor NLOS deploymentMultiple antenna optionsDynamic resource allocation protocol (DRAP)for quality voice services10 Mbps net throughput per CPESNMP management

Highlights

11

BreezeMAX Indoor Self-Install CPE:All-in-One - Just open the box and plug it in….

The BreezeMAX Si is a compact, portable, single box device thatis deployed indoors, typically near the end user’s PC. It is designedfor plug and play operation, enabled either via a SIM card or byusing a user-friendly application provided on a CD with the unit.

The BreezeMAX self-install CPE supports intelligent antenna steeringfunctionality using six antenna elements with 9dBi gain. Servicesand interfaces supported include 10/100 Base-T for IP data,802.11b/g for WiFi hotspots, 1 or 2 POTS (RJ11) ports for voiceservices and battery back up.

12

13

Standard ComplianceAir interface IEEE 802.16-2004; Future upgrade to 802.16eData IEEE 802.3 CSMA/CDRadio ETSI EN 301 021 V.1.4.1 ; ETSI EN 301 753 V.1.1.1EMC ETSI EN 301 489-1Safety EN 60950 (CE)

IEC 60 950 US/C (TUV)Environmental ETS 300 019

part 2-1 T 1.2 & part 2-2 T 2.3 for indoor & outdoorpart 2-3 T 3.2 for indoor ; part 2-4 T 4.1E for outdoor

EnvironmentalOperating temperature Indoor: 0ºC to 40ºC

Outdoor: -40ºC to 55ºCOperating humidity Indoor: 5%-95% non condensing

Outdoor: 5%-95% non condensing, weather protected

Base Station

Radio and ModemFrequency bands 1.5GHz; 2.3GHz WCS; 2.5GHz BRS ; 3.3 - 3.8GHz ; 5 GHzPHY OFDM 256 FFT with uplink OFDMA and future support of SOFDMA for mobile WiMAXDuplex mode FDD / TDDModulations supported 64QAM to BPSK (8 adaptive levels)Channel bandwidth 1.75MHz, 3.5GHz, 5MHz, 7MHz, 10 MHzMulti carrier bandwidth 14 MHz(via IF Mux)Maximum output power 34dBmAntenna type 60º, 90º, 120º, OmniAntenna polarization Vertical and Horizontal

Data and NetworkingNetwork interface 10/100/1000 Base-T, E1/T1VLAN support IEEE 802.1QTraffic classification Layer 2 IEEE 802.1p, IP DiffServ Code Points DSCPQoS Best Effort, Non-Real-Time, Real-Time, Continuous GrantDiversity Schemes Downlink: 2 branch STC (space time coding)

and polarization diversityUplink: 2nd / 4th order diversity MRC(maximum ratio combining)

FEC Concatenated convolution coding andReed Solomon; Rate: 1/2, 2/3, 3/4

Specifications

System

14

Radio and ModemFrequency bands 1.5GHz; 2.3GHz WCS; 2.5GHz BRS ; 3.3 - 3.8GHz ; 5 GHzPHY OFDM 256 FFT with uplink OFDMADuplex mode FDD and TDDModulations supported QAM 64 to BPSK ( 8 adaptive levels)Channel bandwidth 1.75MHz, 3.5GHz, 5MHz, 7MHz, 10 MHzMaximum output power 20 and 24 dBm(At antenna port)Antenna type 18 dBi integrated, 12 dBi window mount, 9 dBi 6 element steering antennaAntenna polarization Vertical and horizontal

Data and NetworkingNetwork interface 10/100 Base-T, 802.11g WiFi, RJ-11 POTS, E1/T1

Networking Gateway CPERouting Static Route, Dynamic Route (RIP1/2)Firewall NAT Firewall with SPI modeNAT functionality NAT, Virtual Server, Special Application

DMZ HostVPN IPSec, PPTP & LT2P Pass-ThroughDHCP DHCP server for LAN and WLAN clients.

DHCP client for WANWireless LAN IEEE 802.11b / 802.11gData Rates 6/12/18/24/36/48/54Mbps in 802.11g mode

1/2/5.5/11Mbps in 802.11b modeOperating frequency 2.4GHzRange coverage Indoors - approx. 35-100 metersNumber of channels America/ FCC: 2.412~2.462GHz (11 Channels)

Japan/ TELEC: 2.412~2.484GHz (14 Channels)Europe/ ETSI: 2.412~2.472GHz (13 Channels)

Security WEP encryption – 64 Bit, 128 Bit

Voice Gateway CPESpeech codecs G711, G729abVoIP protocol H.323, SIPInternal class 5 services Call waiting, 3-party call, call alteration,

differentiated ringing tonesExternal class 5 services Activation of class 5 services supported by the

IP-telephony systemG3 Fax T.38Calling number identification FSK, DTMFDTMF In-band and out-band using H245 and H225 bi-directional

Subscriber Units

15

Progressing at a rapid pace, the WiMAX Forum has been workingdiligently to produce a set of standards that revolutionizes thepotential for fixed and mobile broadband access. Standards establisha baseline for service capacity, coverage, and other operationalfeatures. With its years of experience in OFDM systems, Alvarionhas engineered its BreezeMAX system beyond the WiMAX standard.As Alvarion uses the standards as a foundation, the BreezeMAXsystem maintains its ability to be integrated and interoperable withsystems from other WiMAX vendors.

Rate

IEEE 802.16-2004BreezeMAX

BreezeMAX Sensitivity

BreezeMAX Coverage Competitor System CoverageVS.

Standard & Beyond

Coverage is KeyCoverage is perhaps the most important indicator of a qualitybroadband wireless access system and a primary influence on cost- as good coverage performance requires fewer base stations.The extent of a BWA system’s coverage is largely a factor of radiosensitivity, the specifications of which have been determined bythe WiMAX and the IEEE 802.16-2004 standards. Alvarion’sBreezeMAX system radio sensitivity, however, improves on thisstandard outperforming the specification by 8-10dBm as illustratedin the graph. Typically, 6dBm improvement in the link budgetresults in double the coverage.

Radio-Planning Translates to ProfitsSystem coverage performance has a tremendous influence oncost. In the commercial example below, an area with the dimensionsof 130km x 96 km is delineated. Compare the BreezeMAX systemwith typical competition base station requirements for this scenario.

The results favor BreezeMAX by far:BreezeMAX provides 99.99% coverage with only 11 base stationsin comparison with typical competition base station requiring 28base stations for the same coverage performance. Furthermore,98% of the area is covered by QAM 64 and QAM 16 modulations,resulting in spectral efficiency of 3.24 bit/sec/Hz.

With the same 11 base station locations, the typical solution fromcompetitor products provides only 94% coverage, with 77% ofthe area covered by QAM modulations and an average spectralefficiency of only 2.1 bit/sec/Hz.

To achieve similar performance of BreezeMAX with a typicalcompetition solution requires 28 base stations, which means muchmore investment in equipment, backhaul transmission and siteacquisition and operational costs.

-80

BPSK 1/2 QPSK 1/2 QPSK 3/4 QAM16 1/2 QAM16 3/4

-91

-70

-75

-85

-90

-95

-100

-105

-88-86

-81-79

-100-97

-94-91

-88

dBm

QAM64 1/2 QAM64 3/4

-74

-83

-73

-82

16

QAM 6488%

QAM 1610%

QPSK2%

QPSK17%

QAM 1640%

BPSK3%

QAM 6434%

Not Covered6%

BPSK0%

Stage 1Four radios connected to a single line card providing18 Mbps capacity

Stage 2Four radios connected to two line cards providing 36 Mbps capacity

Extended Coverage

Highly Scaleable

QoS

Carrier Class NMS

Voice over WiMAX

Operator Key Benefits The diagram below illustrates how operators can startwith minimal investment in their base station equipment,and easily scale up capacity as subscribers join the network.

Stage 3Four radios connected to four line cards providing 72 Mbps capacity

An operator’s investment in base station infrastructure is a primarypart of their CAPEX and occurs at the early stages of deployment.

An ideal solution needs to:Minimize initial base station CAPEX

Maintain its initial radio planning and other operational aspectswhen growing the networkScale up incrementally using standard building blocks as moreusers join the network

And BreezeMAX provides:Modem multi channel (MMC) functionalityConnection of a single base station line card to multiple radios,thus splitting the capacity of a single modem among severalbase station sectorsIncreased capacity of the base station as more users join thenetwork by simply adding more line cards

Build-As-You-Grow

17

F1

F4

F2

F3

F1

F4

F2

F3

F1

F4

F2

F3

Quality of ServiceQuality of service (QoS) is essential for the successfulimplementation of multi-service functionality in broadbandwireless networks, especially for voice and other delaysensitive applications. The BreezeMAX system providesdifferent levels of QoS according to the IEEE 802.16-2004and WiMAX standards. As part of its “standards plus” policy,BreezeMAX implements a dynamic resource allocationprotocol (DRAP) that provides admission & congestioncontrol within the wireless domain of the network. DRAPis an innovative, solution providing efficient mapping ofthe voice and signaling traffic in a VoIP network to properQoS levels over the air in the wireless network.

18

Alvarion’s Voice over WiMAX BenefitsMaintain telephony toll-quality over the wireless network - dynamically allocate continuous grant (CG) service for active calls maintainingthe QoS and low jitter needed for toll-quality voice servicesDynamic efficient use of the air resources for voice traffic with proper QoS:

Air resources for voice calls are allocated only for the duration of the callAutomatic support of codec changing in a VoIP call - the DRAP messages update the BreezeMAX equipment on any codec changeor subsequent bandwidth allocation change during the call, hence the exact required bandwidth is always provided. This isessential in fax transmissions where the call may begin with one codec and switch to another to accommodate the fax transmission

Admission and congestion control for each wireless sector:The operator can control and limit the maximum number of concurrent calls per wireless sector and per end user voice gatewayThe operator can prevent callers from placing calls if a sector is overloaded

Deterministic capacity planning between data and voice - controlling the maximum number of calls per sector allows the operatorto deterministically plan the maximum capacity allocated for the voice service and subsequently plan the minimal capacity allocatedfor data serviceCombined provisioning and management of the wireless and voice gateways equipment

Carrier Class NMS - AlvariSTARAlvariSTAR is a comprehensive carrier-class network management system for Alvarion’s BWA products-based networks. AlvariSTAR isdesigned for today’s most advanced service providers’ network operation centers (NOCs), providing the network OA&M staff and managerswith all the network surveillance, monitoring and configuration capabilities required to manage their networks effectively and cost-efficiently.

AlvariSTAR provides the following BWA network management functionality:Device discoveryDevice inventoryTopologyFault managementConfiguration managementService managementPerformance monitoringDevice embedded software upgradeSecurity ManagementNorthbound interface to other network management systemsReporting system

Embedded with the entire knowledge base of BWA network operations, AlvariSTAR is a unique state-of-the-art power multiplier in thehands of the service provider that enables the provisioning of satisfied customers.

19

We have been watching Alvarion carefullyover the last few years and the company hasselected the right strategy for coming outstrong in the BWA market and today, clearlystands as the leader in the emerging WiMAX

market. As they are known to deliver on their promises andconstantly strengthen their market share, we are certainlyconfident in predicting a successful future.

Adlane FellahSenior Analyst, Maravedis

Why Alvarion

Towards an Interoperable FutureThroughout the past decade, Alvarion has maintained a vigorouslystable and clear agenda. Our vision has been consistently accurateand we have emerged as the industry’s foremost leader, confidentlyand gracefully poised at the pinnacle of the BWA pyramid.

The opportunities presented by the establishment of the WiMAXForum, advocating the widespread compliance with the 802.16-2004 Wireless MAN standard and the establishment of guidelinesfor system and component interoperability, presents the telecomindustry with compelling advantages in integrating WiMAX intotheir future agenda.

Alvarion is proud to be the first BWA vendor to work in conjunctionwith Intel on producing a product line that integrates WiMAX-based technology. By merging our respective, industry leadingstrengths, we intend to live up to the promise of a stable,interoperable standard as set forth in the WiMAX mission.

In 2002 we set out to build an alternativenationwide IP network, Alvarion have helpedus achieve this goal and today consumersthroughout Ireland can get access todifferentiated, high quality broadband services

at the most competitive price points.”

“Alvarion equipment has enabled us to add more customersat higher speeds and more quickly, an advantage that hasundoubtedly contributed to our fast growth. Our network iscomplete in all our major cities and towns and we are nowbuilding on this to provide near nationwide coverage by theend of 2005.

Upon the acquisition of our 3.5GHz license, we chose towork with Alvarion to roll-out a WiMAX-ready networkto take advantage of the advanced functionality andfuture cost reductions expected to result from standardwireless broadband products.

Paul DoodyManaging Director, Irish Broadband

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We take pride in ourleading wireless broadband operators

International Corporate HeadquartersTel: +972 3 6456262Email: corporate-sales@alvarion.com

North America HeadquartersTel: +1 650 314 2500Email: n.america-sales@alvarion.com

Alvarion Sales Contacts

© Copyright 2005 Alvarion Ltd. All rights reserved.Alvarion® and all product and service names referenced here in are eitherregistered trademarks, trademarks, tradenames or service marks of Alvarion Ltd.All other names are or may be the trademarks of their respective owners. Thecontent herein is subject to change without further notice. 21

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