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Tropos Competitive Analysis Maria Sumnicht May 2008 NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 1 Disclaimer All information in this presentation is NextWave Highly Confidential and should not be shared unless expressly authorized by NextWave. Under no circumstances is this information to be given to customers, partners or resellers. This information is current to the best of our knowledge at the time of publication NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 2 Outline Executive Summary Tropos Products Tropos Architecture 555 Del Rey Ave. Sunnyvale, CA 94085 Tropos Business Model 2007 Wins SWOT Analysis Conclusion www.tropos.com NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 3 Executive Summary • • • • • • • • Executive Summary Company Key Executives Board of Directors Investors Strategic Partners Application Partners Company Growth Revenue and Market Share NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 4 Executive Summary Tropos Networks (formerly FHP Wireless) with headquarters in San Mateo, California. Doesn’t have any other presence. Founded In 2000 The company has received backing from investors including Benchmark Capital, Boston Millennia Partners, and Intel Capital. Tropos provides both indoor and outdoor WLAN solutions, but competes with NextWave mainly in the outdoor/metro market Its metro-scale Wi-Fi networks are based on a cellular mesh architecture. The core Tropos intelligence is Tropos Sphere, a network operating system (NOS), which contains the key communications, path selection and security functions Strategic partnership with Pronto networks Target markets include municipalities, public safety agencies, service providers NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 5 Tropos Company Key Executives www.tropos.com/company/management.html Mike Bailey Vice President of Operations Previous Companies: Nishan Systems, Tom Ayers President and Chief Executive Officer Previous Companies: Blue Coat Systems, McAfee, Amdahl Devabhaktuni "Sri" Srikrishna Founder and Chief Technology Officer Previous Companies: Sycamore Networks. Bill Slakey Chief Financial Officer Previous Companies: Extreme Networks, WJ Communications, SnapTrack, Handspring, 3Comm, Apple Steve Lowe Vice President of Territory and Channel Sales Previous Companies: Printrak, a Motorola Company Narasimha Chari Founder and Chief Architect Previous Companies: Research scientist at Harvard University Cyrus Behroozi Chief Scientist Previous Companies: Havard University, Tropos NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 6 Board of Directors David Hanna - Chairman – Background: IBM, Grid Systems, Altos, State of the Art, Versatec, NetFRAME, Emulex Systems, Ventura Software, and Blue Coat Systems (formerly CacheFlow) – Chairman of the Board of Directors of Blue Coat Systems, Chairman of Hanna Ventures, a venture capital firm. Reed Hundt - Advisor on Information Industries – Mr. Hundt is currently an advisor on information industries to McKinsey and Company – Background: Board of Intel Corporation Curtis Feeny – Voyager Capital Bill Gurley – Benchmark Capital Keith Krach – GM, Ariba, 3Points NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 7 Investors Benchmark Capital: focused on the mission of helping talented entrepreneurs build great technology companies. Founded in 1995, the venture capital firm has funded several leading networking, technology and Internet companies including Juniper Networks, Ariba and e-Bay. Boston Millennia Partners Duff Ackerman & Goodrich Hanna Ventures Intel Communications Fund Voyager Capital WK Technology Fund Integral Capital Partners NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 8 Strategic Partners ACS Lucent CSG Data Networks Motorola Earthlink Northrup Grumman HP Siemens IBM NEC Intel WFI Johnson Controls NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 9 Application Partners BadgerMeter Inc – Automated Meter Reading Ruckus Wireless – Residential Wireless MobiTV – Digital TV and Radio Service SONY – WiFi enabled PDA UT Starcom – Dual mode cellular / WiFi phone Pepwave D-Link NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 10 Company Growth Tropos began shipping products in September 2003, and by December 2005 the company had over 300 customers and 60 resellers in 29 countries. Accordingly, the company's head count grew from 65 in 2004 to 103 in 2005 and was expected to reach 150 by the end of 2006. NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 11 Revenues and Market Share Q1 2006 Q2 2006 Q3 2006 Q4 2006 Total 2006 Q1 2007 Q2 2007 Revenue $4.0 $5.6 $6.0 $8.2M $23.8 X X Service Provider Market Share 24% 26% 23% 26% 25% X X Fiscal Year End: December NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 12 Tropos Architecture • MetroMesh Architecture Diagram NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 13 Tropos MetroMesh Architecture PWRP determines the path (a+b) providing higher throughput to the wired gateway and routes around any interference NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 14 Tropos Products • • • Products and Specifications – MetroMesh OS – MetroMesh Optimization Tools – MetroMesh Routers • Tropos 5320 Outdoor MetroMesh router • Tropos 5210 Outdoor MetroMesh router • Tropos 3210 Indoor MetroMesh router • Tropos 4210 Mobile MetroMesh router • Tropos 9532 Outdoor Public Safety router – Tropos Control Element Manager Product Features Security Management and Platform NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 15 MetroMesh OS MetroMesh OS allows each of the Tropos mesh router to dynamically route traffic along the highest throughput path to the internet. It includes the following two key features: 1. Predictive Wireless Routing Protocol (PWRP) – optimize client to server throughput in real time. 2. Adaptive Mesh Connectivity Engine (AMCE) – provides adaptive connectivity to accommodate a wide variety of WiFi clients to access the network. NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 16 MetroMesh Optimization Tools Tropos MetroMesh Optimization tools minimize network planning, deployment and management costs. These tools include: 1. Tropos Control – a purpose built element management system for MetroMesh networks 2. Tropos Insight – an advanced MetroMesh analyzer and optimizer tool 3. Tropos Drive – a drive test appliance to determine coverage and throughput in MetroMesh networks 4. SignalMX – a site coverage planning tool from EDX Wireless NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 17 Router Specifications Outdoor: 5320 and 5210 • Tropos 5320 – Dual Radio (5 & 2.4 GHz) • Tropos 5210 – Single Radio (2.4GHz) • High Tx power with Antenna 21dBm to 36 dBm (EIRP) • Attached Omni Antenna (5 ~ 9 dBi) with Diversity • Rx Sensitivity @ 54 Mbps -77 dBm • Rx Sensitivity @ 6 Mbps -95 dBm • NEMA Certified 5320 Outdoor 5210 Outdoor Indoor: 3210 • Tropos 3210 – Single Radio (2.4 GHz) • Tx Power =20 dBm • Omni antennas with Diversity (2.5 dBi) • Patch Antennas with Diversity (4.0 dBi) • Rx Sensitivity @ 54 Mbps -74 dBm • Rx Sensitivity @ 6 Mbps -92 dBm NextWave Wireless Proprietary and Confidential 3210 Indoor Indoor/Outdoor Mesh © 2008 NextWave Wireless. All rights reserved. 18 Router Specifications 4210 Mobile MetroMesh Router 2.4GHz 11b/g single radio device Mobile In-Vehicle environment – Tx power with Antenna 26dBm to 36 dBm (EIRP) 4210 Mobile MetroMesh Router – Optional: Omni Antenna (7.4 dBi) or Omni Antenna (5.0dBi) – Rx Sensitivity @ 54 Mbps -76 dBm – Rx Sensitivity @ 6 Mbps -94 dBm – GPS receiver (optional) NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 19 Router Specifications 9532 Outdoor Public Safety Router 2.4-2.483 GHz TX Power: 36dBm (EIRP) 7.4dBi Omnidirectional antennas Optional 6.0dBi omni-directional or 12dBi sector antenna(s) Media Access Protocol: CSMA/CA with ACK Tx power with Antenna 26dBm to 36 dBm (EIRP) Configurable support for 20MHz, 10 MHz or 5 MHz channels 9532 Outdoor Public Safety Router Sensitivity: – -100dBm @ 1 Mbps -89dBm @ 18 Mbps – -95dBm @ 5.5 Mbps -86dBm @ 24 Mbps – -91dBm @ 11 Mbps -83dBm @ 36 Mbps – -94dBm @ 6 Mbps -78dBm @ 48 Mbps – -92dBm @ 12 Mbps -76dBm @ 54 Mbps NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 20 Router Specifications Tropos 9422 Mobile Public Safety MetroMesh Router 4.9GHz radio for meshing and client access Optimized for vehicle mounted with 12V power supply, external antennas and optional GPS Tropos 9422 Mobile Public Safety MetroMesh Router Layer 3 mesh routing intelligence NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 21 Tropos Control Network Management System Management Platform simplifies deployment and provides a GUI interface to the server data Is a client/server architecture Uses SNMP to communicate with Mesh Nodes One can perform – ESSID, Channel assignment – WEP Key assignment – DHCP configuration – Data rate settings Tropos Control Network Management System – Software upgrades – Automatic discovery when the nodes are added or removed NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 22 General Features 5210 Outdoor MetroMesh Router Layer 3 mesh routing intelligence PWRP dynamically employs links across multiple frequency bands for high throughput Supports multiple virtual networks on a single wireless infrastructure High-speed, session-persistent roaming Dynamic channel assignment, automatic power control and data rate selection provide efficient use of RF spectrum 5210 Outdoor MetroMesh Router AMCE compensates for WiFi client variation SABRE policy-based routing carries traffic for different applications on different spectrum while supporting dynamic fault tolerance MESM exercises control, detects threats and enforces policies at the edge of the mesh network NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 23 Security Management and Platform Features 5210 Outdoor MetroMesh Router User-defined traffic filters, including filters that allow access only to authorized VPN servers MAC address access control lists AES encryption of wireless routing protocols 128bit WEP with TKIP Full VPN compatibility L3 routing protocol between nodes – self configuring/healing 5210 Outdoor MetroMesh Router – medium independent MAC address access control lists AES encryption of mesh data and control traffic Best-in-class link budget for superior RF propagation Ruggedized and weatherized for extreme outdoor conditions NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 24 General Features 3210 Indoor MetroMesh Router Patented, purpose-built layer 3 mesh routing intelligence Predictive Wireless Routing Protocol dynamically employs links across multiple frequency bands to form the highest throughput, lowest latency end-to-end path Dynamic channel assignment, automatic power control and automated data rate selection provide the most efficient use of RF spectrum 3210 Indoor MetroMesh Router Redundant, self-configuring and selfhealing network architecture Adaptive Mesh Connectivity Engine compensates for Wi-Fi client variations, improving connection reliability Ability to configure and operate multiple virtual networks on a single wireless infrastructure High-speed, session-persistent roaming NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 25 Security Management and Platform Features 3210 Indoor MetroMesh Router 802.11b/g clients of 54 Mbps speed Session-persistent roaming Redundant, self-healing network architecture SNMP-based element management system Power over Ethernet 802.3af Runs the Tropos Sphere embedded NOS with Predicted Wireless Routing Protocol (PWRP) 3210 Indoor MetroMesh Router MAC address access control lists AES encryption of mesh data and control traffic Secure local and remote configuration via HTTPS SNMP-based element management system Best-in-class link budget for superior RF propagation Extends outdoor MetroMesh networks to indoor areas NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 26 General Features 5320 Outdoor MetroMesh Router Layer 3 mesh routing intelligence PWRP dynamically employs links across multiple frequency bands for high throughput Supports multiple virtual networks on a single wireless infrastructure High-speed, session-persistent roaming Dynamic channel assignment, automatic power control and data rate selection provide efficient use of RF spectrum AMCE compensates for WiFi client variation SABRE policy-based routing carries traffic for different applications on different spectrum while supporting dynamic fault tolerance 5320 Outdoor MetroMesh Router MESM exercises control, detects threats and enforces policies at the edge of the mesh network NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 27 Security Management and Platform Features 5320 Outdoor MetroMesh Router 802.1x/802.11i User-defined traffic filters, including filters that allow access only to authorized VPN servers MAC address access control lists AES encryption of wireless routing protocols 128bit WEP with TKIP Full VPN compatibility L3 routing protocol between nodes self configuring/healing medium independent • Best-in-class link budget for superior RF 5320 Outdoor MetroMesh Router propagation • Ruggedized and weatherized for extreme outdoor conditions NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 28 General Features 4210 Mobile MetroMesh Router Patented, purpose-built layer 3 mesh routing intelligence Predictive Wireless Routing Protocol dynamically employs links across Multiple frequency bands to form the highest throughput, lowest latency end-to-end path Dynamic channel assignment, automatic power control and automated data rate selection provide the most efficient use of RF spectrum 4210 Mobile MetroMesh Router Redundant, self-configuring and self healing network architecture Adaptive Mesh Connectivity Engine compensates for Wi-Fi client variations, improving connection reliability Ability to configure and operate multiple virtual networks on a single wireless infrastructure High-speed, session-persistent roaming NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 29 Security Management and Platform Features 4210 Mobile MetroMesh Router User-defined traffic filters 802.1x/802.11i MAC address access control lists AES encryption of mesh data and control traffic Secure local and remote configuration via HTTPS SNMP-based element management system High-performance 54 Mbps Wi-Fi Best-in-class link budget for superior RF propagation Vehicle mounted with integrated high power radio NextWave Wireless Proprietary and Confidential 4210 Mobile MetroMesh Router © 2008 NextWave Wireless. All rights reserved. 30 General Features 9532 Outdoor Public Safety Router Patented, purpose-built layer 3 mesh routing intelligence Predictive Wireless Routing Protocol dynamically employs links across multiple frequency bands to form the highest throughput, lowest latency end-toend path Spectrum and Application Based Routing Engine (SABRE) provides rule-based traffic segmentation, preserving 4.9GHz for public safety while delivering dynamic fault tolerance and increased capacity with the second band Dynamic channel assignment, automatic power control and automated data rate selection provide the most efficient use of RF spectrum 9532 Outdoor Public Safety Router Redundant, self-configuring and self healing network architecture Adaptive Mesh Connectivity Engine (AMCE) compensates for Wi-Fi client variations, improving connection reliability High-speed, session-persistent roaming for 4.9GHz and 802.11g clients NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 31 Security Management and Platform Features 9532 Outdoor Public Safety Router User-defined traffic filters 802.1x/802.11i/WPA2 MAC address access control lists AES encryption of mesh data and control traffic Secure local and remote configuration via HTTPS SNMP-based element management system Dual 4.9GHz/802.11g radios for meshing and client access Best-in-class link budget for superior RF propagation Ruggedized and weatherized NextWave Wireless Proprietary and Confidential 9532 Outdoor Public Safety Router © 2008 NextWave Wireless. All rights reserved. 32 General Features Tropos 9422 Mobile Public Safety MetroMesh Router Spectrum and Application-Based Routing Engine provides rule-based traffic segmentation, preserving 4.9GHz for public safety while delivering dynamic fault tolerance on the second band Dynamic channel assignment, automatic power control and automated data rate selection provide the most efficient use of RF spectrum Tropos 9422 Mobile Public Safety MetroMesh Router Redundant, self-configuring and self healing network architecture Adaptive Mesh Connectivity Engine compensates for Wi-Fi client variations, improving connection reliability High-speed, session-persistent roaming NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 33 Security Management and Platform Features Tropos 9422 Mobile Public Safety MetroMesh Router User-defined traffic filters 802.1x/802.11i/WPA2 MAC address access control lists AES encryption of mesh data and control traffic Tropos 9422 Mobile Public Safety MetroMesh Router Secure local and remote configuration via HTTPS SNMP-based element management system NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 34 Tropos Business Model • • • • Philosophy Perspective Sales Strategy Where They Are Today NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 35 Tropos Philosophy Focus on incremental deployment – lowers the bar to entering the market/business – pay for capacity expansion with initial income Concentrate on range rather than data rate – assures lowest initial deployment cost – assures good scalability to high deployment densities Keep the mesh ratio low – mesh capacity drops exponentially – keeps things simple Separate backhaul from mesh – takes advantage of WiMAX, cable, etc as available NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 36 Tropos Persepctive Tropos gambles on its ability to enter accounts based on low initial cost for a fairly wide coverage – the use of 11b/g for access is key to this gamble – up-sell to dual radio platform when appropriate Tropos gambles on its ability to leverage new backhaul technologies to keep overall cost in check – they often mention Motorola’s Canopy as a potential wireless backhaul which is also a low rate, low SIR system – they have announced WiMAX backhaul radios for the future MIMO technology will allow them to upgrade to the 5GHz band and keep the same business model – they can add 5GHz mesh links to their systems now NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 37 Tropos Sales Strategy Focus on incremental deployment – lowers the bar to entering the market/business – pay for capacity expansion with initial income Concentrate on range rather than data rate – assures lowest initial deployment cost – assures good scalability to high deployment densities Keep the mesh ratio low – mesh capacity drops exponentially – keeps things simple Separate backhaul from mesh – takes advantage of WiMAX, cable, etc as available NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 38 Where They Are Today – U.S.A. NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 39 Where They Are Today – The World Tropos has presence in more the 30 countries around the world NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 40 Recent Wins • Recent Deployments NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 41 Recent Deployments 2008 March - Anderson, Indiana’s Wireless AMR Network for Water and Power Using Tropos Solution March - Tropos Networks Donates Wireless Broadband Network for Houston's Digital Inclusion Initiative February – Chicago Transit Authority deploys WI-FI Mesh Network for Mobile Maintenance Management of train yards January - Lake Tahoe Homeowners’ WI-FI Network up and running through Martin Luther King holiday storm and worst snowstorm in decades NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 42 Recent Deployments 2007 December – Aptilo Deploys Metro Wi-Fi Network in the City of Mecca for Pilgrims to Islamic Hajj November - Antigua & Barbuda Go Live with Island Wi-Fi from A.C.T. and Tropos Networks November - Derry Ireland's Historic Walled City & Commercial Centre Now Live with Wi-Fi Coverage Using Evolution Systems and Tropos Networks' Solution November - Athens Suburb Argyroupolis Live with First Muni Wi-Fi Network in Greece from Tropos Networks November - Laguna Beach Video Surveillance "Fire Watch" System Now Live from Laguna Broadcasting and Tropos Networks NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 43 Recent Deployments 2007 November - Obregon, Mexico Deploys First City-wide Wi-Fi Network in Mexico Using Tropos Networks’ Solution August - Tropos Provides First Public Demo of the Groundbreaking 4.9 GHz/Wi-Fi Public Safety Router at APCO Tradeshow June 11 – Pacifica Net goes live with city wide Wi-Fi network featuring High-Speed Fixed Mobile Public Access May 24 – City of Philadelphia approves municipal Wi-Fi proof of concept May 9 – Lafayette Utilities Systems selects Tropos and CSG Data Networks for its Wireless Broadband Network May 9 – Amory, Mississippi, goes digital with first metro scale WiFi Network funded entirely by a private foundation NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 44 Recent Deployments 2007 April 16 – Historic Little Tokyo in Downtown Los Angeles goes live with community Wi-Fi Mesh Network from PRO 911 Systems and Tropos March 15 – Savannah, Georgia, deploying Public Safety and Municipal Wi-Fi Networks city wide with NetMethods and Tropos Systems March 7 – EarthLink Municipal Networks inks deal with the City of Corpus Christi February 27 – Redwood City partners with Digital Payment Technologies and Tropos to deploy parking meters in downtown core (partner release) February 21 – PePWave Launches Wi-Fi Modems into European Market NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 45 Strengths “Established” Mesh Vendor (First one to enter the market) , Solid Mesh Routing Story – “Predicted Wireless Routing protocol” –Routing Mesh Protocol (Software) Open ended architecture “allows any type of backhaul” –Actively marketing against 5GHz backhaul and at the same time using Alvarion units for backhaul, thinking of adding 4.9 Ghz to the product line –Announcing intention to use WiMax as backhaul Self Healing & Self Organizing Network High quality and power radio 4W EIRP at 2.4 GHz Power over Ethernet Quick deployment time (Reference Longmont, CO) NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 46 Strengths Better mesh story –Tropos has L3 routing which is vastly better than simple bridging –L3 Seamless Roaming is not fully supported –Allows them to start off with higher mesh ratios and therefore lower cost - Low entry cost Very simple easy to use Management interface Management interface (Based on AdventNet Frameworks) AP Configuration Utility for talking to the APs. Reset the APs using Infrared. Battery Back up (Integrated Battery Backup) GPS solution NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 47 Strengths Management Platform simplifies deployment and provides a interface to the server data Is a client/server architecture Uses SNMP to communicate with Mesh Nodes One can perform – ESSID, Channel assignment – WEP Key assignment – DHCP configuration – Data rate settings – Software upgrades – Automatic discovery when the nodes are added or removed NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 48 Strength Routing Mesh Protocol on 2.4 and 5Ghz radios Dynamic mesh optimization -100dBm receiver sensitivity Utilizes maximum allowed FCC EIRP (Omni) NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 49 Weakness No integrated 4.9 GHz No independent dedicated radio for the mesh in the 5210 –Co-channel interference –Throughput decreases exponentially for every hop –QoS is an issue –High Magnitude of Hidden Node issue –High Latency (~150 msec per hop) Rapid growth of backhaul cost as traffic loads increase – Tropos speak of the WiMAX backhaul story – Large number of Gateways needed NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 50 Weakness Limited Antenna Support: Not much flexibility in designing the links. –Cannot Mount upside down Upgrading Radios is an issue Limited Security- No strong X.509 based mutual authentication –No Simultaneous Open & WEP/WPA Networks –No Real NAC Roadmap –No Wireless IDS, No Rouge AP Detection Tropos’ PWRP is a primitive, distance-vector routing protocol NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 51 Weakness If traffic is pushed more than the available pipe, network performance is impacted significantly Need another management system to manage backhaul links Tropos had scalability issues in Chaska, MN and St.Cloud, FL L3 mesh implementation not optimized for fast roaming. –Non-flat mesh due to Layer 3 routing No proven advantage of routing mesh protocol Simple radios, no RF or other H/W market advantages NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 52 NextWave Opportunity Enter in to markets where Tropos has a limited presence: – Tropos key focus has been US, Canada and European markets they have a small presence in Emerging markets, specifically Latin America and former Eastern European countries. Set new agenda for VoIP/Multimedia Service Control – Limited QoS (traffic shaping, policing, prioritization) and admission control capabilities in Tropos product line. Leverage broader NextWave portfolio to provide: – more complete broadband wireless solutions (unlicensed/licensed networking solutions, spectrum, handsets, etc…) Capitalize on 5210 to 5320 upgrades – Propose NextWave alternative, trade in program NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 53 Threats They leverage their success to lock out the competition in new markets. Potential alliances and partnerships can further lock out competition. NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 54 Tactics - How To Compete • Key Sales Positioning NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 55 Tactics - How to Compete Key Sales Positioning No smart antenna technology Tropos is primarily a conventional outdoor Wi-Fi company –Additional technologies will incur a higher cost vs. a more integrated solution. Limited Throughput, Capacity and QoS –Reduces exponentially and is unpredictable as more access points are added to the network –No mechanisms for controlling high priority traffic –Limited total system capacity: only three channels and nondirectional antennas. NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 56 Tactics - How to Compete Key Sales Positioning Limited security - only Wi-Fi Protected Access. –There is no HW-based AES encrypted Backhaul Links. No bridging support No Test Link option available Tropos uses proprietary protocol not the Standardsbased LWAPP Higher Total Cost of Ownership –Limited of integration with other technologies (WiMax) and other networking components (Backhaul) drive costs higher (CAPEX and OPEX). NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 57 Conclusion • Summary NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 58 Summary In the Americas, Tropos is a formidable competitor because they focus on the $$, not on the Mb/s – Their 2.4GHz solution can be applied at 5GHz to when MIMO technology becomes available – with a huge increase in capacity – They have a clear story that offsets them from others, notably BelAir Lead with NextWave xRf technology – Highlight the technological and economic limitations of conventional outdoor access points Highlight the limitation of Tropos one size fits all approach. – High light NextWave micro, pico, femto, cellular-mesh solutions as more scalable and cost effective. Establish broader agenda for broadband wireless, de-position Tropos as Wi-Fi only niche player (vs. NextWave) NextWave anywhere they are not! NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 59 Thank You! NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 60 Back Up Slides • Side by Side Key Feature Comparison (Optional) NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 61 Side by Side Key Feature Comparison Attributes Per Shelf Competitor NextWave XXX Intelligence Yes Comparison Ease of Configuration Yes Self Configuring & Self Healing Yes Number of Channels for access Only 2 usable Max. No. of Radios Management Platform L2/L3 Antenna Options Output Power 2 Radios per node Proprietary, Web and SNMP Restricted Roaming Omni, Sector or Patch 36dBm EIRP Security on 802.11a Yes Security 802.11b/g Yes Proprietary Protocol Yes Proprietary Clients Supports normal clients Scalability and Capacity Yes Bridging No Reliable Dynamic Intelligent Path Selection Predicted Wireless Protocol Dynamic intelligent Path Selection NextWave Wireless Proprietary and Confidential © 2008 NextWave Wireless. All rights reserved. 62