converged voip mesh networks ron sege, president and ceo, tropos networksoctober, 2005
TRANSCRIPT
Converged VoIP Mesh NetworksConverged VoIP Mesh NetworksRon Sege, President and CEO, Tropos Networks October, 2005
© 2005 Tropos Networks, Inc.Page 2
Tropos NetworksTropos Networks
Anytime, Anywhere Broadband Access.Fast. Low Cost. Simple.
Tropos Control EMSTropos Mesh Router
with PWRP™
0 1 2 Miles
1
WiMAX
Internet
Self-healing Wi-Fi Self-healing Wi-Fi MeshMesh
© 2005 Tropos Networks, Inc.Page 3
Wi-Fi Device Explosion ContinuesWi-Fi Device Explosion Continues
020,00040,00060,00080,000
100,000120,000140,000160,000180,000200,000
2001 2003 2005(E) 2007(E)
2004 2005 2006 2007 2008-
20
40
60
80
100
120
140
160
180
Millions
Dual mode phones
Cordless phones
120K+ Wi-Fi Hot Spots
Projected 160M+ Cellular Phones with Wi-FiSource: IDC
Source: Instat
140M+ Wi-Fi Client Devices
0
50
100
150
200
250
300
2002 2003 2004 2005 2006 2007 2008Source: IDC
11Mbps 54Mbps150Mbps
© 2005 Tropos Networks, Inc.Page 4
Mesh Takes Wi-Fi to Metro ScaleMesh Takes Wi-Fi to Metro Scale
• 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
Sp
eed
UWB
WiMAX
Wi-Fi
2G
3G/UMTS
PAN LAN MAN WAN
Wi-Fi
Open Standard Progression
Open-standards moving into wireless MAN + WAN
© 2005 Tropos Networks, Inc.Page 5
Metro-Scale Mesh Deployments TodayMetro-Scale Mesh Deployments Today
Metro-scale Wi-Fi is Now a Fact
Vancouver, BCVancouver, BCWhistler, BCWhistler, BC
Livermore, CALivermore, CA
Half Moon Bay, CA
Half Moon Bay, CA
Cerritos, CACerritos, CA
Newport Beach, CANewport Beach, CA
Encinitas, CA
Encinitas, CA
Fullerton, CA
Fullerton, CA
Healdsburg, CAHealdsburg, CAPacifica, CAPacifica, CA
Federal Way, WAFederal Way, WA
Las Vegas, NVLas Vegas, NV
Boulder City, NVBoulder City, NV
Aspen, COAspen, CO
Burlingame, CA
Burlingame, CA
Chaska, MNChaska, MN
Tulsa, OKTulsa, OK
Frisco, TXFrisco, TXAddison, TXAddison, TX
Granbury, TXGranbury, TXDallas, TXDallas, TX
Grand Prairie, TXGrand Prairie, TX
Corpus Christi, TXCorpus Christi, TX
Houston, TXHouston, TX
Gilbert, MNGilbert, MNMoorhead, MNMoorhead, MNMcMinnville, ORMcMinnville, OR
Paris, KYParis, KY
Baton Rouge, LABaton Rouge, LA
New Orleans, LANew Orleans, LA
Lafayette, LALafayette, LA
Franklin, TN
Franklin, TNAtlanta, GAAtlanta, GA
Greensboro, NCGreensboro, NC
Pensacola, FLPensacola, FL
Miami Beach, FLMiami Beach, FL
Alexandria, VAAlexandria, VABaltimore, MDBaltimore, MD
Croton-on-Hudson, NYCroton-on-Hudson, NY
Jamestown, NYJamestown, NYNantucket, MANantucket, MA
Malden, MAMalden, MA
Brocton, ILBrocton, IL
Panama City, FLPanama City, FL
St. Petersburg, FLSt. Petersburg, FL
South Bend, INSouth Bend, IN
Cedar Island, NCCedar Island, NCJackson, TNJackson, TN
Nampa, IDNampa, ID
Roswell, GARoswell, GA
Rockaway Valley, NJ
Rockaway Valley, NJ
Washtenaw County, MIWashtenaw County, MI
Lynchburg, TNLynchburg, TN
Montgomery County, ALMontgomery County, AL
St. Cloud, FLSt. Cloud, FL
Laguna Beach, CA
Laguna Beach, CA
Los Angeles, CA
Los Angeles, CA Oklahoma, OKOklahoma, OK
Philadelphia, PAPhiladelphia, PA
Lompoc, CALompoc, CA
San Mateo, CASan Mateo, CAMilpitas, CAMilpitas, CA
250+ Paying Customers in 18 Months
Anaheim, CA
Anaheim, CA
© 2005 Tropos Networks, Inc.Page 6
The Metro-Scale Interest TomorrowThe Metro-Scale Interest Tomorrow
US Market Momentum
• >190 cities known by Tropos to have purchasing in process for metro-scaleWi-Fi in 2005
• 40 City RFPs due for release from 7/1/05 – 1/1/06
Albuquerque, NMAnaheim, CAAtlanta, GAAustin, TXBaltimore, MDBellevue, WABoca Raton, FLBoston, MACharlotte, NCChattanooga, TNChicago, ILCincinnati, OHCleveland, OHColumbus, OHCorpus Christi, TXDallas, TXDenver, CODetroit, MIEl Paso, TX
Fairfax, VAFargo, NDFort Worth, TXFresno, CAGalveston TXHonolulu, HIHouston, TXIndianapolis, INJacksonville, FLKansas City, MOLas Vegas, NVLos Angeles, CAMaui, HIMemphis, TNMiami, FLMilwaukee, WIMinneapolis, MNNashville, TNNew Orleans, LANew York, NY
Oklahoma City, OKOmaha, NEOrlando, FLPasadena, CAPhiladelphia, PAPhoenix, AZPittsburgh, PAPortland, ORSacramento, CASan Antonio, TXSan Diego, CASan Francisco, CASan Jose, CASeattle, WASt. Louis, MOTucson, AZTulsa, OKWashington, D.C.Wichita, KS
Major US Cities Considering Metro-ScaleWi-Fi in 2005/2006
© 2005 Tropos Networks, Inc.Page 7
Metro-Scale Mesh is WorldwideMetro-Scale Mesh is Worldwide
• Installations in 29 countries,and growing
• Activities in APAC, EMEA and CALA
• Growing international ecosystem
GreeceGreeceItalyItaly
United KingdomUnited Kingdom
AlgeriaAlgeria
ThailandThailand
KoreaKoreaChinaChina JapanJapan
MalaysiaMalaysia
LebanonLebanon
SingaporeSingapore
MexicoMexico
Costa RicaCosta Rica
TaiwanTaiwan
PhilippinesPhilippines
IcelandIceland
MaltaMalta
CongoCongo
ChileChile
TurkeyTurkey
KuwaitKuwait
KosovoKosovo
IraqIraqUnited StatesUnited States
CanadaCanada
SpainSpain
IndiaIndia
IndonesiaIndonesia
Puerto RicoPuerto Rico
Wi-Fi is a Truly Global Radio Standard
© 2005 Tropos Networks, Inc.Page 8
Metro Wi-Fi Disruptive EconomicsMetro Wi-Fi Disruptive Economics
5-Year Rollout Metro 1xEV-DO 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
DSL (ILEC)
Example Network Covering Los Angeles Basin
Expected Throughput
1 - 5 Mbps symmetric
40 - 700 Kbps asymmetric
144 Kbps - 2.0 Mbps symmetric/
asymmetric
256 Kbps - 5 Mbps asymmet
ric
• 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 ARPU1 Conservative estimate for 1xEV-DO ARPU rate at year 5
• ACPU includes depreciation; CapEx includes CPE Source: Tropos, industry sources
• 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 ARPU1 Conservative estimate for 1xEV-DO ARPU rate at year 5
• ACPU includes depreciation; CapEx includes CPE Source: Tropos, industry sources
Wi-Fi
© 2005 Tropos Networks, Inc.Page 9
Metro-Scale VoWiFi Performance TodayMetro-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.Page 10
VoWiFi Cost Savings with Metro CoverageVoWiFi Cost Savings with Metro Coverage
Typical MVNO cost per subscriber per month = $13.50
(450 min/sub X $0.03 per min)
Total
Min/mo/sub Cost/mo/sub
Both parties on VoWiFi network
25% 112.5 $0.00 $0
One party on VoWiFi network
40% 180
$0.015 $2.70Neither party on VoWiFi network
35% 157.5 $0.03 $3.90
Cost/min% of calls
100% 450
$6.60$0.015
Savings per sub per month w/ metro coverage = $6.90
mVoWi-Fi can cut MVNO OPEX 50%
© 2005 Tropos Networks, Inc.Page 11
Key Roaming Technologies for ConvergenceKey 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)
Standards-based roaming enables convergence
802.11r
UMA
© 2005 Tropos Networks, Inc.Page 12
SummarySummary
• 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 timeSuperior economics will drive mVoWi-Fi
adoption