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Webinar Regarding AIR.U's Efforts to Bring
 Super Wi-Fi Networks to Underserved
      Campuses and Communities

                                        D ar at i o
                                         ecl
                                        n
                                        N w ks
                                         et or
                                        G oup, LLC
                                         r




                                Aug 16, 2012
                                                      1
Broadband is the common platform for
knowledge exchange

                   Networks
                                              In a knowledge-based
                                              economy, we should
                                              seek to eliminate
                 Broadband                    bandwidth as a
  Users                          Devices
                 Ecosystem                    constraint to
                                              innovation, productivity
                                              and leadership

                  Applications




          Improvements in each element of the ecosystem
          drive improvements in others in a Virtuous Cycle
                                                                    2
But we are unlikely to get the upgrade necessary
 For the first time since the beginning of the commercial internet, there are no plans
 for a national wired provider to build a faster network than the leading network.




                                                       DOCSIS 3.0

                                        FIOS, UVerse

                                                                    Basic Math for
                                                                             Telco Plans

Speed               Telco DSL                                       an Upgrade
        Dial-Up
                                                              2G Cable BB


                                     Cable BB


                                                Time
                                Instead of upgrades, incumbents are talking about
                                data caps and other ways to restrict use                   3
The returns do not justify the investment

For the investor in the network, the equation currently looks like this:



        C + O > (1-r)R + SB + (-CL)
          Costs                       Benefits



  C:     Capital Expenditures
  O:     Operating Expenditures
  r:     Risk
  R:     Revenues
  SB:    System Benefits (Benefits that drive increased revenues outside the
         communities where the new or incremental investments are made)
  CL:    Losses due to competition

                                                                               4
The path forward: change the math




    C + O < (1-r)R + SB + (-CL)




   But how do we do that?



                                    5
AIR.U
  Consortium of Higher Education Groups, Microsoft and Google Launch
     Program to Deploy Big Bandwidth to Underserved College
     Communities , April 26th, 2012

   Develop near term opportunities to broadly deploy White Space
    technologies within rural Colleges, Universities and their communities
   Establish a roadmap for the rapid deployment of sustainable, next                                 D ar at i o
                                                                                                       ecl
                                                                                                      n
    generation wireless networks – beginning now with Pilot planning phase                            N w ks
                                                                                                       et or
                                                                                                      G oup, LLC
                                                                                                       r
   Create partnerships that provide access to available resources that enable
    adequate funding and sustainable commercial business models

“I find last month’s announcement of the AIR U initiative very exciting, because we all recognize the fact that
      universities that are located in certain rural areas, are struggling to find access to affordable broadband
      networks. By employing unlicensed TV White Space services, the AIR U initiative can offer a low-cost means to
      provide these universities with increased coverage and capacity”- FCC Commissioner Clyburn , July 2012 FCC
      Open Meeting




                                                                                                                6
New Beachfront Spectrum is Available
    Unassigned TV Channels freed as a result of the FCC transition to Digital TV
    Channels vary by market, with large amounts of spectrum in small/mid-size cities and rural communities.
    Now available on an unlicensed basis (like WiFi) & intended for broadband applications
    “Super WiFi”: Much lower frequency (than current WiFi) provides for:
                Signal coverage over far larger areas (up to 5 km vs. 100 meters for WiFi)
                Signals penetrate or bend around obstacles (trees, buildings, hills) far better than higher frequencies
                 (like broadcast TV)
    An ideal, inexpensive, ‘last mile’ solution – adding coverage and capacity where fiber is not close by.



         Lower VHF            Upper VHF                                             UHF

                                                  TV ch 14-20




                                                                                               RA
         TV ch                                                              TV ch 21-36
                 5-6          TV ch 7-13                                                             TV ch 38-51
          2-4                                    Public Safety                                 37
    54


             72
             76

                   88




                                           216
                                           470




                                                                 512




                                                                                               608




                                                                                                                   698
                        174




                                                                                               614
                                                           Wireless Mics

                                          Fixed TVWS Devices
                                                                           Portable/Personal
                                                                            TVWS Devices


                                                                                                                         7
Relative Bandwidth Allocation
                                                                    Wi-Fi – its impact after 10
                                                                    years
                       Bandwidth Allocation by Service
                                                                    2002
              140                                                   •Wi-Fi alliance founded
                                                                    2012
              120                                                   •439 million homes using a Wi-Fi
              100                                                   router
MHZ per POP




                                                                    2016
               80                                                   •800 million homes projected to
               60                                                   deploy Wi-Fi
                                                                    •Currently 25% of all households
               40                                                   worldwide use Wi-Fi
               20                                                   •85% penetration in homes with fixed
                                                                    broadband
                0
                                                                    By making fixed broadband more
                    White 2.4 GHz 900   700   PCS   Cellular AWS    valuable, Wi-Fi:
                                                                    •generates $46 to $87 billion of
                    Space ISM     MHz   MHz                         consumer surplus each year.
                    Total         ISM         Sour ce: Spect r um   •maintains 49 to 101 million fixed
                                                                    broadband subscriptions around the
                                              Br i dge
                                                                    world.

                                                                    Source: Strategy Analytics

                                                                                                   8
TV White Space Trial
                     Deployments                                        Currently operational TVWS trial
                                                                        deployments supported by
Rural Broadband: Nation’s first TVWS network –
                                                                        Spectrum
Claudville, VA                                                          Bridge, Microsoft, Google and
                                                                        other companies.
“Smart Grid” Network Deployment –
Plumas-Sierra Rural Electric Co-Op, CA

 “Smart City” Network
 Deployment–
 Wilmington, NC
 Partnership with city and
 Public Safety entities


 Telemedicine Applications –
 hospital campus – Logan, OH


 Tribal and Public Safety Remote Area
 Deployment – Yurok Reservation, Arcata, CA

Super WiFi Network Deployment – Cambridge, England – In UK, 1-year trial: variety of uses
cases by consortium 14 companies (Microsoft, BT, BBC), Adaptrum, Neul, Nokia, etc)
and 2 networks in Finland by Spectrum Bridge
                                                                                                    9
Applications & Services
Wireless Broadband
         Mobile & Fixed (Last                                   Residential
          Mile)
                                   Community-Wide
                                                                     Broadband
         Wireless Residential         Super Wi-Fi
          Multi-Media Networking   Smart City
         Wireless Backhaul            Applications
         Video ‘Broadcasting’


Machine-to-Machine
         Remote Sensing and
          Monitoring
         Asset Tracking
         Mobile Video
          Surveillance




                                                      ~5 Miles


                                                                                 10
Super Wi-Fi Eco-System is Now Forming
                                                                                             Sept 2010: FCC Final
                                                                                                 Rulemaking approved
           Fully                                                                                 unlicensed use of white
           Mobile
                                                                                                 space frequencies
                                                                                             Feb 2012- Congress passes bill
Addressable                                                                                      securing TV Bands for
    Markets &                                                                                    Unlicensed use
    Applications

                                                                                             US Market Stage Is Set
                                                                                              Legislation is in place
                                                                                              Standards Based
           Nomadic/
           Fixed                                                                                Equipment Vendors Are
           Applications
                                                                                                Announcing Production
                          Today             Dec ‘12                                Dec ‘13      Schedules
                                                                                              DB Administrators have
                          Pre-Production/
                                                                                                been FCC Certified
                          Limited Qtys            Begin Production Unit Availability
     Equipment
   Configurations


                                                                                                                     11
AIR.U Objective
Higher Ed Communities represent an environment well suited for Super Wi-Fi innovation

√ Higher than average Bandwidth Requirements (Increasing)

√ Lower than average Bandwidth Alternatives (Static)

√ Fewer than average Broadcasters resulting in Higher than average White Space



AIR.U (Advanced Internet Regions)

•   Establish a path to self-sustaining, commercial operations that will offer Super Wi-
    Fi services broadly to college and university communities




                                                                                        12
Community Opportunity
Case Study: Middlebury College
Available TVWS Spectrum
                                                  Organizing Available Resources to:
•   Fixed Channels = 23
•   23/3 = 7.6 Channels/ cell (round down to 7)
Cell Capacity                                             Reduce Capex
•   Avg Capacity/ Cell: 70Mbps

•
    (7x10Mgbps/Channel)
    Monthly Average Cell Capacity =
                                                          Reduce Opex
    70e6*3600*24*30/8 = 22,680 GB
Example Network Capacity                                  Reduce Risk
•   Capacity Plan
     – 100% Population Coverage @                         Increase Revenues
        10GB/month
•   Population Coverage:
     – Campus: 2,500*10 GB / 22,680 GB = 2
        cells
                                                  is the key to Unlocking Benefits
     – Surrounding Town: 8,500*10 GB /
        22,680 GB = 4 cells

                                                                                     13
Organizing Resources
Identify Available Resources and Coordinated Support
•   Reduce Capex
     –   Access to Antenna Sites (i.e. ROWs, Tower and Rooftops)

•   Reduce Opex
     –   Access to Telecom Facilities (i.e. Middle Mile Fiber, Backhaul, Internet)

•   Reduce Risk
     –   Organize Demand (i.e. Students, Faculty, Municipality, Affiliated Enterprises)

     –   Standardized Network, Deployment and Customer Support functions

•   Increase Revenues
     –   Introduce new low cost broadband services

     –   Coordinated Marketing to Accelerate Adoption




                                                                                          14
Expressions of Interest
  To submit interest for pilot consideration:

           http://bit.ly/AIRUInterest


        Powerpoint and link to this form will also be emailed




                                                                15

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Airu nebhe webinar 8 16-2012 final

  • 1. Webinar Regarding AIR.U's Efforts to Bring Super Wi-Fi Networks to Underserved Campuses and Communities D ar at i o ecl n N w ks et or G oup, LLC r Aug 16, 2012 1
  • 2. Broadband is the common platform for knowledge exchange Networks In a knowledge-based economy, we should seek to eliminate Broadband bandwidth as a Users Devices Ecosystem constraint to innovation, productivity and leadership Applications Improvements in each element of the ecosystem drive improvements in others in a Virtuous Cycle 2
  • 3. But we are unlikely to get the upgrade necessary For the first time since the beginning of the commercial internet, there are no plans for a national wired provider to build a faster network than the leading network. DOCSIS 3.0 FIOS, UVerse Basic Math for Telco Plans Speed Telco DSL an Upgrade Dial-Up 2G Cable BB Cable BB Time Instead of upgrades, incumbents are talking about data caps and other ways to restrict use 3
  • 4. The returns do not justify the investment For the investor in the network, the equation currently looks like this: C + O > (1-r)R + SB + (-CL) Costs Benefits C: Capital Expenditures O: Operating Expenditures r: Risk R: Revenues SB: System Benefits (Benefits that drive increased revenues outside the communities where the new or incremental investments are made) CL: Losses due to competition 4
  • 5. The path forward: change the math C + O < (1-r)R + SB + (-CL) But how do we do that? 5
  • 6. AIR.U Consortium of Higher Education Groups, Microsoft and Google Launch Program to Deploy Big Bandwidth to Underserved College Communities , April 26th, 2012  Develop near term opportunities to broadly deploy White Space technologies within rural Colleges, Universities and their communities  Establish a roadmap for the rapid deployment of sustainable, next D ar at i o ecl n generation wireless networks – beginning now with Pilot planning phase N w ks et or G oup, LLC r  Create partnerships that provide access to available resources that enable adequate funding and sustainable commercial business models “I find last month’s announcement of the AIR U initiative very exciting, because we all recognize the fact that universities that are located in certain rural areas, are struggling to find access to affordable broadband networks. By employing unlicensed TV White Space services, the AIR U initiative can offer a low-cost means to provide these universities with increased coverage and capacity”- FCC Commissioner Clyburn , July 2012 FCC Open Meeting 6
  • 7. New Beachfront Spectrum is Available  Unassigned TV Channels freed as a result of the FCC transition to Digital TV  Channels vary by market, with large amounts of spectrum in small/mid-size cities and rural communities.  Now available on an unlicensed basis (like WiFi) & intended for broadband applications  “Super WiFi”: Much lower frequency (than current WiFi) provides for:  Signal coverage over far larger areas (up to 5 km vs. 100 meters for WiFi)  Signals penetrate or bend around obstacles (trees, buildings, hills) far better than higher frequencies (like broadcast TV)  An ideal, inexpensive, ‘last mile’ solution – adding coverage and capacity where fiber is not close by. Lower VHF Upper VHF UHF TV ch 14-20 RA TV ch TV ch 21-36 5-6 TV ch 7-13 TV ch 38-51 2-4 Public Safety 37 54 72 76 88 216 470 512 608 698 174 614 Wireless Mics Fixed TVWS Devices Portable/Personal TVWS Devices 7
  • 8. Relative Bandwidth Allocation Wi-Fi – its impact after 10 years Bandwidth Allocation by Service 2002 140 •Wi-Fi alliance founded 2012 120 •439 million homes using a Wi-Fi 100 router MHZ per POP 2016 80 •800 million homes projected to 60 deploy Wi-Fi •Currently 25% of all households 40 worldwide use Wi-Fi 20 •85% penetration in homes with fixed broadband 0 By making fixed broadband more White 2.4 GHz 900 700 PCS Cellular AWS valuable, Wi-Fi: •generates $46 to $87 billion of Space ISM MHz MHz consumer surplus each year. Total ISM Sour ce: Spect r um •maintains 49 to 101 million fixed broadband subscriptions around the Br i dge world. Source: Strategy Analytics 8
  • 9. TV White Space Trial Deployments Currently operational TVWS trial deployments supported by Rural Broadband: Nation’s first TVWS network – Spectrum Claudville, VA Bridge, Microsoft, Google and other companies. “Smart Grid” Network Deployment – Plumas-Sierra Rural Electric Co-Op, CA “Smart City” Network Deployment– Wilmington, NC Partnership with city and Public Safety entities Telemedicine Applications – hospital campus – Logan, OH Tribal and Public Safety Remote Area Deployment – Yurok Reservation, Arcata, CA Super WiFi Network Deployment – Cambridge, England – In UK, 1-year trial: variety of uses cases by consortium 14 companies (Microsoft, BT, BBC), Adaptrum, Neul, Nokia, etc) and 2 networks in Finland by Spectrum Bridge 9
  • 10. Applications & Services Wireless Broadband  Mobile & Fixed (Last Residential Mile) Community-Wide Broadband  Wireless Residential Super Wi-Fi Multi-Media Networking Smart City  Wireless Backhaul Applications  Video ‘Broadcasting’ Machine-to-Machine  Remote Sensing and Monitoring  Asset Tracking  Mobile Video Surveillance ~5 Miles 10
  • 11. Super Wi-Fi Eco-System is Now Forming Sept 2010: FCC Final Rulemaking approved Fully unlicensed use of white Mobile space frequencies Feb 2012- Congress passes bill Addressable securing TV Bands for Markets & Unlicensed use Applications US Market Stage Is Set  Legislation is in place  Standards Based Nomadic/ Fixed Equipment Vendors Are Applications Announcing Production Today Dec ‘12 Dec ‘13 Schedules  DB Administrators have Pre-Production/ been FCC Certified Limited Qtys Begin Production Unit Availability Equipment Configurations 11
  • 12. AIR.U Objective Higher Ed Communities represent an environment well suited for Super Wi-Fi innovation √ Higher than average Bandwidth Requirements (Increasing) √ Lower than average Bandwidth Alternatives (Static) √ Fewer than average Broadcasters resulting in Higher than average White Space AIR.U (Advanced Internet Regions) • Establish a path to self-sustaining, commercial operations that will offer Super Wi- Fi services broadly to college and university communities 12
  • 13. Community Opportunity Case Study: Middlebury College Available TVWS Spectrum Organizing Available Resources to: • Fixed Channels = 23 • 23/3 = 7.6 Channels/ cell (round down to 7) Cell Capacity  Reduce Capex • Avg Capacity/ Cell: 70Mbps • (7x10Mgbps/Channel) Monthly Average Cell Capacity =  Reduce Opex 70e6*3600*24*30/8 = 22,680 GB Example Network Capacity  Reduce Risk • Capacity Plan – 100% Population Coverage @  Increase Revenues 10GB/month • Population Coverage: – Campus: 2,500*10 GB / 22,680 GB = 2 cells is the key to Unlocking Benefits – Surrounding Town: 8,500*10 GB / 22,680 GB = 4 cells 13
  • 14. Organizing Resources Identify Available Resources and Coordinated Support • Reduce Capex – Access to Antenna Sites (i.e. ROWs, Tower and Rooftops) • Reduce Opex – Access to Telecom Facilities (i.e. Middle Mile Fiber, Backhaul, Internet) • Reduce Risk – Organize Demand (i.e. Students, Faculty, Municipality, Affiliated Enterprises) – Standardized Network, Deployment and Customer Support functions • Increase Revenues – Introduce new low cost broadband services – Coordinated Marketing to Accelerate Adoption 14
  • 15. Expressions of Interest To submit interest for pilot consideration: http://bit.ly/AIRUInterest Powerpoint and link to this form will also be emailed 15