www.TAHO.com.br
WIMAX Opportunities in Brasil

WireLess BroadBand Access For Underserved Areas in Brazil
Sergio Cabral – IdeaValley & TAHO Founder
& WCA Board Member
Washington
June, 2004

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WIMAX Opportunities in Brazil
Deep Digital Immersion
UnderServed Communities
SuperServed Communities

Agenda
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 About Brazil and WireLess
 An Impossible Mission?
IMPLEMENTING DEEP
DIGITAL IMMERSION
 Why it is a good time now
 Conclusion

About Brazil
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BRAZIL:
175 MM population
25 MM Internet Users
1.4 MM BB Users (Q1 2004)
100 k WireLess Users Free Spectrum
A sophisticated user: Brazilians spend more
time online that Americans (13 hours and 43
mn in Brazil, 13 hours and 21 mn in the US)

About TAHO
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TAHO
 Top 3 WireLess Operator in Brazil
 20k 2.4 FHSS Internet Users
 Focus on Underserved and Emergent Markets
( Communities < 300k populations )
 Supporting Complete Supply Chain Strategy for Partners and
Customers
 Supporting Brazil Govs initiative to reduce Digital Divide
 Promoting Competition, acting as Carrier of Carrier
 Working from Slums ( Favelas ) to Large Companies

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The Challenges of
BroadBand WireLess in
Brazil

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Challenges for BroadBand
 Zero Infrastructure
 Old Infrastructure
 New Infrastructure
 High Cost of Backbone
 High Cost of CPE
 Time to Market
 Law of Demand / Offers / Capital
 Content Transition Phase
 Intellectual Property
 Technology Transition Phase
 Habit Convergence Consolidation

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TAHO experience with
these Challenges and
Opportunities

TAHO Mission www.TAHO.com.br
 TAHO First Mission is to bring Access to
Underserved People in Brasil
 TAHO started by selecting a strong technology and applied it
to Slums ( Favelas ) like Rocinha ( largest in Latin America )
and others.
 In the second phase, TAHO brought this technology to
Underserved Communities, like Petropolis , the Imperial City
of Americas (near Rio de Janeiro) , and to large Companies.
 Today, TAHO is scaling a new model with complementary
technology and business model with the vision to provide
DEEP DIGITAL IMMERSSION to the Society in Brazil

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This experience in TAHO
showed that there are 4
types of Human usage
of Internet Access

Humans Skill of Internet
Access Usage www.TAHO.com.br
 ALFA  BETA  THETA  DELTA
POP Access Bubles Access Petals Micro POP - PAN
MicroBackBone RF-SS PicoBackBone NanoBackBone Self BackBone
Actual Fixed WireLess Net WiFi-WiMax WiFi-WiMax-Others WiFi-WiMax-PLC
Total Redundance Roamming HandOff Roamming
Predicction Alfa Expansion Beta Expansion A-B-T Convergence
Customers Happy
FixedMESH
Next Increase BandWidth Increase of Avaiabilitie
Increase of Integration DO IT YOURSELF
MicroBackBone Laser Increase of Coverage
Acesso Rede Elétrica Increase of Productivitie
Step Solucoes S/ L/ Visada

Techno-Human Structure
Alfa-Beta-Theta People www.TAHO.com.br
WPOP MicroPop
Regional HeadQuarter MicroCelula
Apoio
Bolha1 Bolha2

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TAHO
Strategy for
Deep Digital Immersion

TAHO
Strategy for www.TAHO.com.br
Deep Digital Immersion
 Select Robust Technology
 Focus on UnderServed Market
 Develop a Start-Up Plan
 Do Fund Raising to Implement the Vision
 Implement the Vision
 Select Complementary Technology
 Focus on SuperServed Market
 Develop a Operational Plan
 Open Opportunities to Social-Investor and Capitalist-
Investors
 Implement the Vision

TAHO
Strategy for
Deep Digital Immersion www.TAHO.com.br
 Proximity of two
communities
 Social gap
 Urban violence

TAHO
Strategy for
Deep Digital Immersion www.TAHO.com.br

How to Scale ???
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Tunneling the
Social Gap www.TAHO.com.br
 Thechallenge for emerging countries is to
accelerate the economy in a sustainable way;
 Acondition for that is to minimize the gap
between social structures;
 Providing
internet services will reduce the
gap between communities.

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TUNELING THE SOCIAL GAP
A CASE STUDY
TAHO Cyber Cafés
in the favelas
(with support of the ONG VivaRio)

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The convergence of habits or social
convergence is faster than
technological convergence

Rocinha Favela Result: since 2001,
27,000 DIGITAL RE-INCLUSIONS
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Favela Result: since 2001,
27,000 DIGITAL RE-INCLUSIONS
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Results
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 Direct results - community of Rocinha – From the World Economic Forum (2003)
 > 100.000 Home pages visited / month;
 27.000 Clients from 2001;
 2/5 of clients are less than 18 years;
 Of these, 1/3 less than 11 years;
 Service 24 x 7;
 Service cost: 1 Real / hour;
 Management and maintenance assumed by the favela;
 ZERO depredation;
 Technology Validation.
 Indirect results
 Re-use of the technology in others projects (CVRD, Petrobras, Banks);
 Worldwide recognition;
 Good press acceptance;
 Social acceptance;
 Technology model is scalable and robust;
 Social Convergence;
 Discovery of new Opportunities.

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TUNELING THE SOCIAL GAP
Scalability, Sustainability
Principles of the Business
Model

Business Models
The Principle www.TAHO.com.br
 Two key words: Sustainability and Scalability
 SuperServed communities:
Full fledge commercial operations.
Project will pay for 100% of the infrastructure.
 UnderServed communities will benefit for a ‘free’ infrastructure, and will
use a ‘marginal cost’ model, with positive operating cash flows;
Nike strategy ‘Just do it’. Self-sustainable.
TAHO experience is that the deployment is best done when the
community is in charge of it.
 Clear advantage of wireless NLOS: permit a re-use of
infrastructure (towers, backbone, etc.).

Two Business Models
 PPP – Public Private PartnerShips www.TAHO.com.br
 Large scales to reduce costs
 Example 1: WISPs as Carriers of Carriers
 Example 2: Wireless Network for the city of Pirai in Rio de Janeiro
 All public buildings (hospitals, offices, schools) are connected using
wireless technology
 TAHO donated the equipments and used government-owned
infrastructure
 TAHO has the right to re-use the signal for for-profit commercial
operations
 This project received an award at the World-Wide information
society convention in Geneva ( December 2003)
 SPP – Social, Profitable Partnerships
 Profitable Markets with Value Added Service
 Example
 IMOBIA Laws imply that the trend is in the growing Delta Behavior
 IBANK

Example: IBank,
A Strong Opportunity in www.TAHO.com.br
Brazil for WIMAX

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All Employees and Partners
from TAHO are committed to
dedicate 5% of their time to
DIGITAL RE-INCLUSION

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Conclusion
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The social approach will accelerate the development of
technologies and markets.
WIMAX can be a strong tool in this Impossible Mission
- The Deep Digital Immersion
Sergio Cabral, Laurent Gil, LC Abad - WCA 2004
Sergio @ TAHO.COM.BR
Laurent @ TAHO.COM.BR
Abad @ TAHO.COM.BR
Please visit and Join TAHO initiative:
www.ideavalley.com.br
www.ideacapital.com.br
www.TAHO.com.br
www.vivafavela.com.br
www.endeavor.org
www.wcai.com

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Thank you
www.IdeaValley.com.br