Broadband & Innovation

Georges DabaghiSales Director - Middle East & Africa

Motorola, Home and Networks Mobility

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2008.

Broadband Penetration on the rise in Middle East•Middle East Market- relatively low Broadband Penetrations

•Broadband take-up in ME continues to be strong across all Arab markets – lags behind other Regions

•Broadband penetration key driver to economic development

Source: Point Topic

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2008.

Broadband in the Home

• Traditional Broadband definition (as > 256 Kbps) is now challenged

• Data Asymmetry fading – new usage patterns (mainly by youths)

• More than one user @ home

• Key drivers emerging:– Video-on-Demand (VoD)

– Enhancements in Video Resolution

– Advent of IPTV & Interactive Applications/Services

• Trending towards Ultra Broadband (connectivity >50 Mbps)

• Requires need of fiber based technology to connect to the Home (FTTH)

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2008.

Streaming Video Will Continue to increase demand…

Reasonable Use Profiles - 2011

APPSDays/ Mo

KB /Day

Hrs /day

Kbps KB / Mo

VoIP on Mobile 30 0.2 64 172,800

Outlook (10 emails + 5 with attachments) 30 10500 315,000

Outlook (10 emails + 5 with attachments) 30 10500 315,000

Live Messenger (assuming it replaces SMS) 30 10.0 3 405,000

MySpace/Facebook, profile update, video stream up and down

10 0.3 128 172,800

General Browsing, Music + News sites, etc… 20 1.0 100 900,000

Home recorded movie on hard drive set top box / Sling / Computer

6 2.0 1000 5,400,000

Youtube, News clip 20 0.5 256 1,152,000

Radio streaming and home stored music 20 2.0 128 2,304,000

11.1Gbytes / Month

APPSDays/ Mo

KB /Day

Hrs /day

Kbps KB / Mo

VoIP on Mobile 30 0.1 64 86,400

Outlook (20 emails + 5 with attachments) 4 11000 44,000

Outlook (20 emails + 5 with attachments) 30 11000 330,000

Live Messenger (assuming it replaces SMS) 30 10.0 3 405,000

MySpace/Facebook, profile update, video stream up and down

5 0.5 128 144,000

General Browsing, Music + News sites, etc… 10 0.5 100 225,000

Home recorded movie on hard drive set top box / Sling / Computer

4 2.0 1000 3,600,000

Youtube, News clip 10 0.3 256 345,600

Radio streaming and home stored music 15 1.0 128 864,000

6.0Gbytes / Month

APPSDays/ Mo

KB /Day

Hrs /day

Kbps KB / Mo

VoIP on Mobile 30 0.5 64 432,000

Outlook (5 emails + 3 with attachments) 20 6250 125,000

General Browsing, Price check + News sites, etc…

20 1.0 100 900,000

Youtube, News clip 20 0.5 256 1,152,000

Radio streaming and home stored music 4 0.5 128 115,200

2.7Gbytes / Month

TypicalMobile only

College StudentLaptop + Mobile

Urban ProfessionalLaptop + Mobile

Source: ComScore Inc

APPSDays/ Mo

KB /Day

Hrs /day

Kbps KB / Mo

VoIP/Conference on Mobile 20 1 64 576,000

VoIP on Mobile 30 0.1 65 87,750

Netmeeting when Out of Office 4 0.5 500 450,000

Outlook (100 emails + 25 with attachments) 4 55000 220,000

Outlook (100 emails + 25 with attachments but only 5 attachments download)

30 16000 480,000

Communicator 4 8 3 43,200

Linked-In, profile update, video stream up and down

2 1 128 115,200

Competitor sites, News sites, etc… (Bursty traffic) 4 1 100 180,000

Home recorded movie on hard drive set top box / Sling / Computer

2 2 1000 1,800,000

Youtube, News clip 10 0.5 256 576,000

Radio streaming and home stored music 10 1 128 576,000

5.1Gbytes / Month

Road WarriorLaptop + Mobile

5.1GB/month 6GB/month

11.1GB/month 2.7GB/month

Wireless Internet use follows Wired Internetby 3-5 years

75% of users watch online video*YouTube = 27% of internet traffic

Short clips - Perfect for mobile use15min of daily YT = 1.2GB/month

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2008.

Strong Demand for Mobile BB

HSPA operators data usage2007 - 6-14X 2008 - 20-50x • User experience / Cell shrinkage with increasing traffic

Costly Cell Splitting + Backhaul + Core

upgrades required

Data revenue is only growing +10-30% year on year

Data Adoption Driving Broadband Wireless Networks

3.5G networks will struggle with mass market mobile data adoption

Future Focus: Lower Cost per Bit

%

Operator Traffic & Revenue challenge

Time

Traffic

Revenue

Voice & SMS dominated

traffic

Mobile Data Explosion

Need a Lower cost per bit

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2008.

Motorola WiMAX & LTE

LTE for

3GPP & 3GPP2 Mobile Operators

WiMAX for

New Entrants &Alternative Business Models

WiMAX & LTEWiMAX & LTECommon Technical Features (OFDM/MIMO) & Architecture (Flat/All IP)

For 2 Distinct Target Markets

Motorola believes in 4G with LTE and WiMAX as the two fundamental next generation wireless access technologies

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2008.

Cellular/Fixed: Worlds ConvergeC

over

age/

Mob

ility

Cov

erag

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obili

ty

Data Speeds (Kbps) span a wide rangeData Speeds (Kbps) span a wide range100,000100,0001010

802.11n (smart antennas)802.11n (smart antennas)802.11 with Mesh extns.802.11 with Mesh extns.

802.16e802.16eWiMAXWiMAX

Loca

l Are

aLo

cal A

rea

Fix

edF

ixed

Wid

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Wid

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rea

Mob

ileM

obile

Met

ro A

rea

Met

ro A

rea

Nom

adic

Nom

adic

Cellular IndustryCellular Industry

Fixed Fixed Wireless Wireless IndustryIndustry

802.16d802.16dWiMAXWiMAX

3.X G3.X G2G2G

Fixed Wireless IndustryFixed Wireless Industry

2.5G2.5G 3G3G

802.11 802.11 b/a/gb/a/g

Mobile Mobile

BroadbandBroadband

HSPA / LTEHSPA / LTE

FDD & TDDFDD & TDD

TDDTDD

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2008.

Spectrum AvailabilityBoth WiMAX & LTE have access to significant spectrum allocations globally

2300 MHz

2500 MHz

3500 MHz

5800 MHz

3600 MHz

Spectrum is new, underutilized, & less costlyOffers access to new wireless players

New to Wireless

Cellular

WiMAXSpectrum focused on traditional cellular bandsAppeal for many cellular operators

Cellular

New to Wireless

LTE

800 MHz

850 MHz

900 MHz

1500 MHz

1700 MHz

1800 MHz

1900 MHz

2100 MHz

2500 MHz

700 MHz

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2008.

Summary

• Phenomenal Opportunity & Challenge to drive up Broadband penetration

• Technology Mix - Wireline & Wireless

• Liberalization is key

• Localized Content & Application

Thank you!