© 2003 Inspired Broadcast Networks, Ltd.

• Europe’s largest, most sophisticated Wi-Fi network

– Nationwide coverage

– 2,700+ sites deployed since April

– Currently rolling out 150 a week

• World class infrastructure

– Carrier-grade Ericsson access points

– Private DSL network for backhaul

– Fully redundant network core

– Verified by Intel to support all major applications

• Neutral, multi-service provider platform

– Branded service providers (BT, mobile operators, large ISPs, cable companies) sell their own branded Wi-fi service directly to their customers using our network

© 2003 Inspired Broadcast Networks, Ltd.

The Cloud’s unique approach

• Deploy massive coverage, so that a Wi-fi hotspot is conveniently available anywhere in the UK.

– The network integrates sites deployed directly by The Cloud with third party sites managed by The Cloud.

– The goal is to manage as many network locations as possible, regardless of who actually owns the sites.

– On track for 20,000 sites by end of 2004

• Operate a carrier class network, support all VPN, security and authentication solutions, over a private leased backbone, with full SNMP-management of all network elements.

• Offer the network on a wholesale basis to various branded Service Providers (BT, the cellular carriers, ISPs, etc) so that they can offer Wi-fi services to their customers using their own brand

– Give the SPs full control over the user experience, so that their users see only their SP’s brand, use the services integrated by their provider, and are billed for usage on their normal SP’s bill.

• Facilitate the growth of Wi-fi by working actively with the rest of the wi-fi eco-system.

© 2003 Inspired Broadcast Networks, Ltd.

Why bother?

• Public Access Wi-fi has been around for several years in the US and has not been a success. What’s changed?– Intel. It’s hard to underestimate the effect of $300 million worth of marketing, a

significant investment budget, and 14 million Centrino-based laptops sold this year with Wi-fi. Intel continues to play a pro-active role in areas such as seamless roaming, operator standards, etc.

– Deep penetration of access points in the enterprise and at home. An access point is deployed every 4 seconds, and home and office use will drive a desire for out of home connectivity.

– More mobility and the need for connectivity: people who want access during their working day (70% of laptop users work at home, 50% in hotels, 40% at customers, and 30% during travel). The key is to get people used to frequent, short access sessions.

– More Applications. Broadband penetration is finally at a tipping point, with more creative devices, more bandwidth hungry applications, and more specialized devices like music players.

– 3G. Realization in Europe that 3G is unlikely to provide a viable service anytime soon is bringing the major operators into the space.

© 2003 Inspired Broadcast Networks, Ltd.

So why hasn’t it happened yet?

• We need to address the weaknesses in most public Wifi operating models:– Inadequate coverage

– Poor marketing

– Hard to use services

– Prohibitive pricing regimes

– Cumbersome payment arrangements

• By pushing a more accessible model:– Massive nationwide coverage

– Sold through a recognized and trusted service provider

– Accessed using a client on the laptop or PDA (with automatic SSID recognition, stored username and password, easy login and logout)

– Priced by the minute at similar to cellular rates

– Billed using an existing service provider billing relationship

• And by redefining success– Analysts keep looking for Wi-fi penetration to reach cellular levels, ie tens of millions of users.

But Wi-fi is cost effective and profitable in a country with a order of magnitude fewer customers.

© 2003 Inspired Broadcast Networks, Ltd.

The key in Europe is to align with the Service Providers

• European customers expect a high quality, universal service from their provider, including seamless roaming and easy billing.

• The best way to drive Wi-fi penetration is to bundle it with existing service offerings– Most service providers don’t want to build their own network

– Yet as their brand is paramount to them, they resist selling a third party’s branded coverage.

• By building a large, high quality network while letting branded Service Providers specify and sell services under their brand to their existing customers, Service Providers have the opportunity to fill a weakness in their product portfolio

– Each service provider can determine the authentication methodology, the security protocols, the billing options, the branding and the service look and feel.

– The Cloud is immediately available to its wholesale partners, allowing new SPs to easily enter the market for integrated broadband wireless data.

• Each type of service provider has a different motivation:– Mobile operators like integrating Wi-fi with GPRS on the client so that carriers can more effectively

become “mobile data” operators, regardless of the bearer technology.

– Fixed line and cable operators see Wi-fi as a way to expand back into mobility and protect their main markets

Our place in the wi-fi world

© 2003 Inspired Broadcast Networks, Ltd.

The Cloud:Shared, Neutral Infrastructure

Service Provider

A

Service Provider

B

Service Provider A User Service Provider B User

© 2003 Inspired Broadcast Networks, Ltd.

More Coverage and Applications

• The Cloud is leveraging the systems used to support its own massive coverage to facilitate the deployment of third party coverage, the management of those sites, and the interconnection of traffic to SPs

– The Cloud integrates 3rd party sites into its network and manages all traffic (for example 7,000 sites for NWP Payphones)

– The Cloud manages networks on behalf of a wireless ISP so they can focus on deploying coverage (for example, Square Mile in yacht marinas)

– The Cloud is integrating enterprise deployments into the public networks by working with major technology vendors to deploy public roaming channels on private infrastructure.

– The Cloud will host and integrate third party applications into the network so that new services can be easily deployed

– The Cloud hosts service management platforms in its data center so that Sun, Service Factory, etc can sell a turn key solution to vWISPs and carriers anywhere in Europe

© 2003 Inspired Broadcast Networks, Ltd.

IP Interconnect Services

Service Selection Interface

Prepaid Service

Management

Service Management

Platform

Roaming Service

Management

Wi-Fi + Terminal

Packaged Hotspot

Third Party Hotspot & Peered

Networks

Enterprise Hotspot

IBN Managed Private Network Infrastructure

Site Network

The Cloud’s Wi-fi hub

Remote Service

Management Platform

Service

Provider

Application Platform

Private

Network

Hub

Internet Site N

etwo

rksB

ackhau

lM

anag

ed

Interco

nn

ectN

etwo

rk S

ervices

Internet

© 2003 Inspired Broadcast Networks, Ltd.

SiteLAN

DSL Tail

Data Centre(Manchester)

InternetGateway

BT Central

155Mbps centralconnect

Data Centre(London)

LAN bridge ServiceProvider

Interconnects

InternetGateway

EuroDSLSiteLAN

Co-Lo Platform forApplication & Services

European Site Backhaul Infrastructure

UK Site Backhaul InfrastructureCo-Lo Platform for

Application & Services

Expanding Infrastructure

© 2003 Inspired Broadcast Networks, Ltd.

Wi-fi Ecosystem

Wi-fi Ecosystem

Equipment companies &

suppliers

(HP, Proxim, Cisco)

Device Suppliers

(Sony, HP, Palm)

Application Suppliers

(IBM, Cap Gemini)

Service Providers

(BT, Boingo, WeRoam)

Interested Parties

(Government, Promoters, Retailers)

Technology Companies

(Intel, Ericsson)

Site Owners

(Retailers, Property Owners, Systems

Integrators, WISPs and vWISPs)

Occupying the Center of the Wi-fi ecosystem

The Cloud acts as a neutral enabler, working with a broad range of partners to achieve their agendas and push Wi-fi adoption – and ultimately traffic on our network and penetration into site estates.

Driving usage on all networks

© 2003 Inspired Broadcast Networks, Ltd.

How to separate the hype from reality

• Is Wi-fi the next dot.com bubble?

– Unlikely…

– Investment to date in the UK is closely tied to rational revenue models. By charging service providers upfront fees, we align the risk with our customer.

– Market projections are closely tied to the trends of increasing data use, more mobility, more devices and more applications.

– Even the pessimistic numbers are impressive: 1.6 million enterprise wireless LAN users in the UK by 2008 implies a market with annual revenues of 400 million

• So what does the future hold?

– Wi-fi is addictive, so in the enterprise, slow initial growth will be followed by more rapid penetration by end 2004.

– Biggest opportunity is integrating roaming public access Wi-fi into the enterprise, allowing guest users to behave in someone else’s office as if they were in their own.

– Future growth can also come from consumer use of connected devices, voice applications, telemetry, M2M communications, and many other segments

WiFi Adoption curve:The changing face of the Customer

Beginning with Enterprise users and migrating towards the consumer

Usage

2004 2005 2006

Business usersEnterprise access

Road warriorsTelematics andWorkflow apps

Consumer appsMusic/Video

VoWIP

Conclusions

© 2003 Inspired Broadcast Networks, Ltd.

The Cloud

Making public Wi-fi real

– Financially stable

– Technically sophisticated

– Operationally resourced

– Aggregator of the largest number of sites and services

– Neutral

– Pursing a creative and responsive vision

– And you can use it today…