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CALY Networks Converting Spectrum to Profit

CALY Networks Converting Spectrum to Profit. Cees van der Stoep. cees@calynet.com. Cannot Deploy Fiber Fast Enough. If XO Communications had its way, all its customers would be connected to fiber. “But it will take decades” admitted CTO Doug Carter. BWB Oct 2000.

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CALY Networks Converting Spectrum to Profit

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  1. CALY Networks Converting Spectrum to Profit Cees van der Stoep cees@calynet.com Broadband Wireless world forum 2001

  2. Cannot Deploy Fiber Fast Enough If XO Communications had its way, all its customers would be connected to fiber. “But it will take decades” admitted CTO Doug Carter. BWB Oct 2000 Broadband Wireless world forum 2001

  3. The Opportunity:Businesses Need Bandwidth Wired Fiber OC3 DSL/Cable Wireless LMDS 28GHz MMDS (ISM) High Bandwidth Low Bandwidth mm-wave radio can deliver lots of bandwidth Broadband Wireless world forum 2001

  4. “Last Mile” Challenges • “Bandwidth bottleneck” • Wireline broadband solutions are costly and have long installation lead-times • Current wireless solutions have problems Broadband Wireless world forum 2001

  5. Wireless Point-to-Multipoint Broadband Wireless world forum 2001

  6. Wireless Point-to-Multipoint 30% of buildings are in the shade Broadband Wireless world forum 2001

  7. Meshed Network using Point to Point Broadband Wireless world forum 2001

  8. Meshed Network using Point to Point 15 links 30 radios to be planned , installed and aligned Broadband Wireless world forum 2001

  9. Limitations for Deploying Wireless Networks Today • Cost and availability of equipment • Scalability of emerging PMP - PP architecture • Capacity restrictions • Effective coverage • Difficult to add customers, expand • Complexity and deployment cost • Site planning • Frequency planning, reuse models • Regulations, Roof Rights, CO-locations High Cost of Ownership Broadband Wireless world forum 2001

  10. CALY Hybrid Fiber RadioTMDynamic Wireless Networking Less than half the amount of equipment and <10% of install cost Broadband Wireless world forum 2001

  11. Where is the Money ? Services Revenue : Web hosting Telecommuter ERP B2B exchange VPN Content Security Cost : Equipment License RF planning Installation Interconnect Roof rights Churn Broadband Wireless world forum 2001

  12. Multimedia VPN Wireless LAN E-Commerce Intranet Wireless Internet Video Requirements of Network Infrastructure Unified Messaging Software- Defined Services Internet Backbone VOIP Internet Access Fax Voice Complexity Explosive Growth in Internet & IP Services Source Chase H&Q Broadband Wireless world forum 2001

  13. Businesses Need QoS Mission critical, real time applications: • B2B e-Commerce • hosted business apps • stock trades • streaming audio/video • collaborative computing Failed/Delayed Connection • Loss of revenue • Loss of productivity When transaction delays mean losses of real dollars Broadband Wireless world forum 2001

  14. ISP A IP Backbone ISP B RITAWireless Routing Algorithms • Data Packet Scheduling • Bandwidth allocation • QoS support • Priority differentiation • Fairness • Data Packet Routing • Path diversity • Load balancing • Link and node failure redundancy Broadband Wireless world forum 2001

  15. 10 Gbps - 1 Gbps T3---- 10 Mbps T1---- 1 Mbps 0.1 Mbps Residential Vioice and Data Multipoint To Multipoint “Sweet Spot” • TCP/IP • Ethernet • Fast Ethernet • Giga Ethernet • Wireless Access and Metropolitan Networks • MTU/MDU and Business Users 100 Gbps Fiber Optic MPtMP 100 Mbps E3---- Free-Space-Optical Transmission Rate E1---- LMDS PMP DSL DSL WLL Satellite Copper Cable , Long Dense Industrial Residential Rural Urban Remote Haul Urban SubUrban SubUrban Geographic and Population Topology Broadband Wireless world forum 2001

  16. Business Case • Financial model compares broadband wireless access networks • PMP Wireless Local Loop (LMDS, BWA) • Point-to-Point • CALY Hybrid Fiber Radio • Analysis includes: • Network coverage • Cash flow and profit & loss • Financial measures: NPV, IRR, funding requirements Broadband Wireless world forum 2001

  17. Business Case Methodology • Models entire city: Manchester, UK • All businesses with more than 10 employees • Market demand driven • Network coverage grows organically • Demand peaks at 15% after 4 years • Models growth on quarter by quarter basis • User-chosen node locations Broadband Wireless world forum 2001

  18. Network Coverage - CALY Broadband Wireless world forum 2001

  19. Network Coverage - PMP Broadband Wireless world forum 2001

  20. 25 20 15 Cumulative Cashflow 10 ($M) 5 0 1 2 3 4 5 6 7 8 9 10 -5 -10 Year Cumulative Cash Flow UK Business Case CALY PtP PMP Broadband Wireless world forum 2001

  21. End User Benefits: Broadband bandwidth access to Internet backbone IP QoS Resilient network Cost-effective connection LDMS Operator Benefits: Limited initial capital requirements, yielding high IRR Grow network with new customers No RF planning, site acquisition issues Fast, easy installation Self-healing network Automatic load balancing QoS offers new services potential CALY Hybrid Fiber RadioIntelligent Wireless Choice Broadband Wireless world forum 2001

  22. Summary • Broadband IP wireless solution that finally solves the “last mile” bandwidth bottleneck • Elimination of wireless implementation obstacles and lower costs enable broader deployment • Enables delivery of new high-margin IP QoS services High-Performance Wireless Networking made Feasible Broadband Wireless world forum 2001

  23. Conclusion Commercial Broadband IP Wireless Solution @ Breakthrough Economics Converting Spectrum to Profit Broadband Wireless world forum 2001

  24. Wireless Networking Redefined Broadband Wireless world forum 2001

  25. Back-up Broadband Wireless world forum 2001

  26. Corporate: CALY Networks 295 Santa Ana Court Sunnyvale, CA 94085 USA Tel: 408.730.8800 Fax: 408.739.7453 info@calynet.com www.calynet.com CALY Networks Europe: World Trade Center 1300, route des Cretes, BP255 06905 Sophia Antipolis, CEDEX France Tel: +33(0)4 92 94 00 27 Fax: +33(0)4 92 94 03 40 emea@calynet.com Broadband Wireless world forum 2001

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