Creating a Wireless Network

1. Creating a Wireless Network www.ockhamcommunications.com www.miwifi.ca October 2007

2. Overview Intro to Ockham Communications: • Business Model • Operational Plan • Financial Projections Your Task – Building a Municipal WiFi Network in the Bayridge Area: • Defining the Coverage Area • Purchasing the Network Equipment • Installation and Placement of the Network Equipment • Setting up the Back-Office • Generating Revenue Ockham Communications Inc

3. Intro to Ockham Communications • Overview: • Ockham Communications Inc is a wireless Internet service provider (WISP) with operations in Kingston, Ontario, Canada • Services: • Through the MiWiFi network, subscribers receive immediate, fast, secure, and reliable mobile wireless Internet access • Benefits of the MiWiFi network include: • Instant Internet access via online account creation • Up to 3 mbps download and upload speeds (comparable to Bell/Cogeco High Speed) • Mobility anywhere within the seven square kilometer downtown Kingston coverage zone • 24/7 non-automated customer support • Voice Over Internet Protocol (VoIP) supportive Ockham Communications Inc

4. Business Model • Service Area: • Location, Location, Location… • Target Niche: • University and College towns with populations in the 150,000 – 200,000 range • Temporary users • Tourists and business travelers • High-Lease turnover zones • “Marketing awareness” expenditures versus costly “customer switching” expenditures • Service Offerings: • Wireless High Speed residential and business Internet access • Convenience and Mobility • Pre-paid payment options • Focused marketing efforts Ockham Communications Inc

5. Business Model • Temporary users: • Hourly $4.95 • Daily $9.95 • Residential users: • Monthly $29.95 • Business: • Purchase block subscriptions • Promote services to staff and customers Ockham Communications Inc

6. Business Model Ockham Communications Inc

7. Business Model • Partnerships: • Strategic Public-Private Partnerships: • Queen’s University, St. Lawrence College, Royal Military College • Referral Revenue Sharing: • Landlords and property managers acting as marketing agents • Auxiliary Revenue Streams: • NebuAd: Targeted Advertising Platform • Generates $3-$5 additional revenue per subscriber per month • Log-In Screen Advertising • Targeted community-based advertising • Referral Sales for Value-Added Service Providers: • Vonage, Skype, WiFi enabled phones Ockham Communications Inc

8. Operational Plan • 2007 Kingston: • MiWiFi Phase 1 • Est Completion: May 1, 2008 • Coverage: 2 square kilometers • MiWiFi Phase 2 • Est Completion: Sep, 2008 • Coverage: 5 square kilometers • 2009 City #2 and City #3: • Market research conducted • Fast turnaround process Ockham Communications Inc

9. Financial Projections • Average Revenue, Costs, Profit Per User • ARPU: $33.95 • ACPU: $1.50 • APPU: $32.45 • Projected Profit: • Year 1 Profit: $101,640 • Year 2 Profit: $218,460 • Year 3 Profit: $335,280 • Monthly Costs • Network: $5,000 • Operating: $6,000 • Total: $11,000 • Monthly Break-Even Users: 340 • Subscriber Projections • Year 1: 600 (10% market share) • Year 2: 900 (15% market share) • Year 3: 1,200 (20% market share) Ockham Communications Inc

10. Your Task • You have been hired to build a Municipal WiFi network for the Bayridge Area. In order to build the network, you need to complete the following tasks: • Set the boundaries of your coverage area • Purchase the network equipment • Install the network equipment • Set up your back-office • Generate revenue • Remember – your goal is to build a reliable network that will generate as much revenue as possible Ockham Communications Inc

11. Set the Boundaries • North: Princess St • South: Taylor Kidd Blvd • West: Collins Bay Rd • East: Bayridge Dr • Number of Households in area: 20,000 Ockham Communications Inc

12. Purchase the Network Equipment • You will be using BelAir Network 100s • These devices are referred to as “Access Points” • They are high-powered outdoor wireless routers • These devices are installed throughout the coverage area • “Access Points” communicate with each other and create a giant wireless “hotspot” • Cost Per Access Point: $2,000 • Areas with a greater concentration of subscribers will require more Access Points Ockham Communications Inc

13. Install the Network Equipment • Access Points are installed on street lights • For effective coverage, Access Points should be installed approximately 500 meters apart from each other • Areas with a greater concentration of subscribers will require more Access Points • Cost Per Installation: $100 Ockham Communications Inc

14. Setting up the Back-Office • The Back-Office is the place where your network begins • Located in your back-office will be a Fiber Optic network connection and a server • Cost of Fiber Optic Connection: $500 per month • Cost of Server: depends on functionality requirements • Free Service (low speeds): $10,000 • Paid Service (high speeds) $15,000 • Free and Paid Service (low and high speeds): $20,000 Ockham Communications Inc

15. Generate Revenue • You will need to determine the monthly price that you will charge to your subscribers • You can also generate revenue by charging local businesses to advertise on your log-in screen Ockham Communications Inc