©2011 UK Broadband Limited. All rights reserved.

Wireless Cities16th May 2012, Manchester Town Hall

INCA Event: Ultra-Connected Smart Cities

Largest Quad Play provider in HK – Phone, Broadband, Mobile & TV

Turnover in excess of $3Billion (USD) with 18,200 employees

UK Broadband is a wholly owned subsidiary of PCCW in Hong Kong

World leader in seamless customer transition to (and from) Wi-Fi

Pioneer of IPTV - interactive & on-demand (over Fibre & DSL)

Developed market - 100Mb to >98% of homes, Fibre to >77% of buildings

>10,000 WiFi hotspots delivering 3G/HSPA+ data offload

Who we are

Metro WiFi>10,000 WiFi hotspots

~25

mile

s

Free access to Government

services

On train WiFi

Mobile TV

Seamless Mobile Broadband

Who we are - our experience in Hong KongHong Kong – a Super Connected Wireless City

Who we areThe largest spectrum holder in the UK

Band Channel Bandwidth Duplex Scheme Typical service

3.5 GHz 2 x 20 MHz (1) TDD 4G 3GPP LTE – Band 42

3.6 GHz 84 MHz TDD 4G 3GPP LTE – Band 43

3.9 GHz 84 MHz Wireless backhaul

28 GHz 2 x 112 MHz FDD Wireless backhaul

40 GHz 2 x 1GHz FDD Wireless backhaul

1800 MHz 2 x 3.5 MHz FDD In building GSM coverage

2439MHz = Total UKB Spectrum

124MHz = Total UKB

LTE Spectrum

(1) Includes 2 x 10MHz FDD 4G 3GPP LTE – Band 22

124Mhz of LTE is equivalent to owning 6 x Ofcom 4G licenses at 20Mhz

Who we are - working with Local Authorities in the UK

• Successful projects include:• Local Government CCTV & Automatic Number Plate Recognition• Business Park & Campus CCTV, Marinas and Ports• Wireless Connectivity & Voice over WiFi• Educational home connectivity support services• Swindon Wireless City Project

Extensive delivery of wireless networks for LAs and public sector

• High Speed Wireless Ethernet- Point to Point- Point to Multipoint

• Superfast LTE Broadband- Fixed Wireless- Nomadic

UKB has two distinct products sets

These are the Building Blocks of a Wireless City

The Building Blocks of a Wireless City: Point-to-Point & Multi-Point Wireless Ethernet

An inexpensive, guaranteed network serviceFor inter-building or hub connectivity

2Mbps to 1,000Mbps

Unique Licenced Spectrum3.9GHz, 28GHz, 40GHz

Distances50m to 15km

Wireless Ethernet is like “Fibre through the Air”

• High capacity licensed Wide Area Networks (WANs)• major costs savings over fixed line Ethernet services

• Bespoke Wireless Ethernet for urban & rural solutions• cheaper than existing fixed connectivity

• High speed internet access to the public sector and SMEs

• Wholesale networks that put local business into business

• Essential resilience for Cloud Computing

• Major costs savings over fixed line Ethernet servicesFully managed service with guaranteed SLAs and cheaper than today’s fixed line service

• Supports shared services for both public and private traffic• Develop revenue streams from spare capacity

• True diversity for resilient core network links• Intercity links through UKB secure network • Software licensing for increasing capacity on demand

• Future proof network investments

Applications enabled by Wireless Ethernet

UKB Wireless Ethernet Projects in the UK today

• A complete high speed wireless access network in Swindon to connect 250 Council facilities - Excess capacity will be sold to the private sector

meaning businesses anywhere in the town can have instant access to high speed broadband – up to 1GB

• The security network for the Olympics in Weymouth

• A number of wireless access and CCTV projects

The Building Blocks of a Wireless City: Fixed Wireless LTE Superfast Broadband

In building ADSL/FTTC replacement

Home and business broadband

Home hub with WiFiIndoor or outdoor antenna to suit location

Shared bandwidth with choice of data priorityInternet connection or Private Network

DistancesWithin coverage cell

Applications enabled by LTE Broadband

SME connectivity

• Prioritised superfast broadband up to 65Mbps supported by SLAs in strategic business enterprise zones

• Extremely competitive services compared to FTTC/EFM

Small Branch Office

• Branch office replacement of ADSL2/MAX services

• Enable multi agency locality working with built in WiFi

Portable 4G connection (MiFi)Super Fast Broadband for WiFi devices

Speeds up to 65Mbps (on the move)

Shared bandwidth with choice of data priorityInternet connection or Private Network

DistancesWithin coverage cell

The Building Blocks of a Wireless City: Portable LTE Superfast Broadband

In summary – what can we provide?

• Bespoke wireless networks for urban & rural solutions

• High capacity wireless Ethernet – “fibre through the air”

• Very high capacity secure 4G LTE networks- high speed home and business broadband- mobile broadband

• Secure, open access, ALA compliant networks, with SLAs

• Only UK operator with super fast home broadband by wireless- guaranteed 25Mbps downlink and 5 Mbps uplink

Applications enabled by Wireless ConnectivityHealth & Social Care

Digital Inclusion/Home broadband

13% adults have no landlineSome City areas get <2Mbps

Remote GP surgery videoconferencing

Public Space CCTV

Cameras turned off to saveRapid deployment cameras

Traffic Management

Analog ccts obsolete in 4 yrsUTMC needs real-time links

Emergency Services

Patient info from ambulances Building plans downloaded

Transport

Live on-board CCTVPassenger WiFi services

Education

Real-time learning

Mobile Workers

Fast connections wherever

Maximising Connectivity - the joined up approach • The key to a successful Wireless City is integration between networks

• Users should be able to freely roam from 3G to 4G (FDD/TDD) to Wi-Fi and back without interruption

• We will seek to work with all network operators to deliver the optimum customer experience

• PCCW is the world leader in seamless roaming between mobile and Wi-Fi networks

• UKB will bring this expertise to your Wireless City

Why UKB - our USPs

• We save you money on the provision of existing services

• You can introduce new innovative services at lower cost

• Our scalable solutions can be added to over time• you only pay for a service when you want it

• Bespoke networks or fully secure shared public networks

• We use your assets - you earn a share of the revenue

Wireless City Case Study

Swindon - 2 new networks, saving public money

• 250+ Council sites connected via high-speed wireless Ethernet network

• High Speed Wireless Ethernet for SMEs

• 4G LTE network across the town giving fixed & mobile home and business broadband

• UKB investing >£1 million to save Council 25-30% on current connectivity spend

• Working in partnership with Capita/Swindon Council

• Revenue share with Council for use of assets

Enabling innovation in Swindon

•High speed links to GP Surgeries and businesses• Traffic management•CCTV and Telemetrics on buses• Enabling mobile working for Council and SME employees• Lone worker safety location tracking• Tracking all Public Sector vehicles•Providing fast home broadband in ‘not spot’ areas•Combined Town Centre CCTV WiFi Coverage Project• Smart Citizen App

Thank you

Appendices

4G Today

UKB’s 4G LTE in the UK today

• 4G LTE equipment was only available in Jan 2012

• UKB has already built two 4G LTE networks• Southwark, commercial launch June 2012• Swindon, commercial launch July 2012

• Shortlisted for BDUK rural bids – super-fast broadband• We are the only UK operator able to deliver NGA

broadband by wireless (25Mbps down, 5Mbps up)

• Further 4G networks in the pipeline

4G NOW

Availability of 4G LTE devices in LTE Bands 42 and 43 - 2012Indoor Home Hub • Built in WiFi • 4 x 10/100 Ethernet ports• 2 x RJ11 VoIP connections• Available May 2012

Outdoor Antenna Unit• Designed for areas with lower coverage strength• 4 x 10/100 Ethernet ports and 2 xRJ11 VoIP connections on indoor unit• Expected by end of 2012

3G/4G Personal Mobile Wi-Fi• Up to 5 connected Wi-Fi devices• Slimline with large screen display• Long battery life• Expected by end of 2012

Delivering data requires a lot of capacity

Wireless cells behave like a garden hose:

Wide area coverage : the entire lawn getting a little water – a voice network

Concentrated - the same amount of water in a much smaller area to get high capacity – a data network

• You need many more cells over the same area to deliver data capacity

• UKB can deliver high capacity data services because of its spectrum

UKB already has 6 x 20MHz channels

• UKB can deliver NGA access by wireless today - utilising all 6 channels• The other mobile operators will not have enough spectrum to deliver NGA

UKB-owned LTE Spectrum (allows for optimal usage of large channels)

CH5 CH6 CH1 CH2 CH3 CH4

20MHz 80MHz

3.48GHz 3.5GHz 3.58GHz 3.6GHz 3.605GHz 3.625GHz 3.645GHz 3.665GHz 3.685GHz 3.689GHz

20MHz

LTE Advanced – the GOLD standard Delivers very high capacity mobile data, but needs a minimum of 20MHz channels

38MHz 38MHz

75MHz

20MHz

115MHz124MHz

0

20

40

6080

100

120

140

Vodafone O2 EverythingEverywhere

H3G Spectrum tobe

auctioned

UKB

38MHz 38MHz

90MHz

20MHz

124MHz

0

20

40

60

80

100

120

140

Vodafone O2 EverythingEverywhere

H3G UKB

Source: Ofcom, Third Party Research

Downlink-enabled spectrum before the auction

Downlink-enabled spectrum available at the auction

The forthcoming auctions – no one will get more than one 20Mhz channel

Key

UKB’s 4G spectrum

4G spectrum to be shared between 4 operators

2G + 3G spectrum

• No single operator will have enough spectrum to meet the future demand for data – growing >100% each year

- even combined they will run out of capacity by 2016

• They must prioritise their existing customers• They will struggle to offer any SLAs

Up to 50% of the future demand for data will come from people and uses that do not use mobile data today – public sector, transport, machine to machine, business applications

4G

There simply isn’t enough spectrum

• Overall global mobile data growth expected to be 18 fold increase over 2011

- CAGR of 78% 2011 to 2016

• Release by OFCOM of 4G LTE spectrum in 800MHz and 2.6GHz end of 2012 will not satisfy demand long term

• Constrained again in 2016 according to OFCOM

UKB can offer 4~6 times download data capacity in any given area than any single UK mobile operator is expected to be able to offer

We need wholesale open data networks to fill the gap