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Time to Swap from Wire line to Wireless:

Exploring Total Cost of Ownership in Replacing Wire line with Wireless

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Market Trends

•  The future is in replacing or “capping” wire line deployments with wireless technology: – 3G outperforms DSL for Total Cost of Ownership – 4G will replace fracNonal T1 and T1 services – 4G is enterprise-‐grade and reflects the speed, quality, and reliability to replace wire line

•  Wireless is outpacing wire line in terms of technological advances


Market Trends: Business Class Wireless Criteria

•  Demand for higher data rates •  ExpectaNons of lower 3G costs •  ConNnued cost reducNon with 4G •  Back Office and Business Class Protocol Support

•  Growing experience with the take-‐up of 3G is showing an even greater demand for 4G


EvaluaNng Total Cost of Ownership (TCO)

•  For Wire line InstallaNons and 3G and 4G Wireless InstallaNons, evaluate all TCO Criteria: – Fault Management

– ConfiguraNon – AccounNng – Provisioning – Security


Wireline InstallaNons

•  Failures occur in the last 100 feet:

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3G and 4G InstallaNons

•  CapEx is less expensive for wireless. •  The use of wireless end points is more secure and leaves less exposure for interference from human error or other factors.

•  If a failure occurs, the isolaNon of the trouble is simpler and is o^en solved by a simple swap of equipment.

•  3G and 4G modems can connect to mulNple base staNons, providing route redundancy.

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Closing the Performance Gap


Closing the Price Gap

Strictly ConfidenNal 8

$5.71

$2.85

$0.48 $0.24

$1.39 $1.13 $1.09 $1.03

$-‐

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

2008 2009 2010 2011

Theore2cal Downlink Bandwidth versus cost per Mbps

3G/4G DSL/Wired

Source: Broadband Forum, AT&T Wireless, Qwest, Cingular, Samsung, Nokia, NTT DoCoMo and QUALCOMM


Closing the Reliability Gap

•  3G/4G High Availability Network Adapter addresses signal quality, speed and Reliability: – High Gain Beam forming Antenna with Router and 3G or 4G Card

– Wireless Extends Serviceable LocaNons


Cost-‐effecNve Deployments for Ongoing OperaNons

•  OMA DM for Back-‐Office Support: –  DM Client integrated into Router via porNng layer hook-‐up.

–  Once a connecNon is established, the industry standard OMA DM protocol is leveraged to exchange instrucNons with the Router.

–  Plug-‐In enables the customer to manage the device from DM Portal.

–  The customer can set and manage preferred network providers according to their profile.


Building a TCO Model

Leased T-1s 3G/4G Wireless Monthly $300 $60 Quantity 2 2 Annual $7200 $1440 One Time Charges $1,000 $250 Maintenance (3 years) $250 $0 Total Cost (First Year only)

$8200 $1690

Capacity 3 by 3 MBs 4 by 2 MBs


Conclusion and RecommendaNons

•  3G and 4G provide beier service at a lower Total Cost of Ownership for businesses and managed service providers

•  3G and 4G bonding will create even higher speeds at more flexible price points than wire line

•  Final Analysis: Return on Investment
