How Wi-Fi is DisruptingThe Carrier MarketSteve ChungPrincipal ConsultantRuckus Wireless, APAC

Protecting

v

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Aussie Carrier Market Today

oCost CuttingoPrice WarsoSubscriber GraboAnd ALL Promoting…

#bendgate

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While In US…

T-Mobile Disrupting Market…

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So What Was The Disruption…Again?So No More Roaming Charges

When Oversea (eg. Australia)…?

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What Exactly is WiFi Calling?

WiFi Calling Operation

iPhone 6 99 other handset models+

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What Can Aussie Carriers Do To Disrupt the Market Using Wi-Fi?

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Own the Venue Traffic2

Wi-Fi ServiceInnovations3

Grow the Footprint1

Top 5 Carrier Wi-Fi Strategies

5UX based Wi-Fi

(User Experience)

4Hotspot 2.0 & Wi-Fi Roaming

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1. Grow Wi-Fi Footprint

• Carrier WLAN Controller• Integration with Mobile Core• Cloud Based Controller

Residential Wi-Fi

CarrierWi-Fi

EnterpriseWi-Fi

PublicWi-Fi

Wi-Fi Controlled By Carrier

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2. Own The Venue Traffic

Residential Wi-Fi

CarrierWi-Fi

EnterpriseWi-Fi

PublicWi-Fi

Wi-Fi Controller @ Venue

Stadium

AirportTerminal

ShoppingMall

Hotel

Council

My Traffic.

• Convert to Cloud based Wi-Fi Controller

• Upgrade to Carrier AP• Advertise 2nd SSID

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3. Wi-Fi Service Innovations

Operator Types Content Players WiFi First & MVNONOFacebook Google Scratch Wireless

Republic Wireless

Capex Savings

Quad-Play Strategy

ARPU Protection, Growth

Churn Reduction

Hotspot Revenues

Wholesale Revenues

Managed Services

Service Innovation(e.g. WiFi First)

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3. WiFi-First Operators

• Both operators fallback to Mobile Network• Both operators are Sprint’s MVNO

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3. LBS Subway Solution: (HeatMap of People Waiting)

How many Commuters last week? 443,794

Which day is the busiest?

Friday - 126,696 (busiest)Sunday - 82.810 (Least Busiest)

Busiest Time of the day on Friday ?

8pm with 14,976 commuters6pm with 19,696 commuters

How long do I need to wait for the train ? Avg: 5.01 min

How Long do I need wait for train on.. say Wed ?

Avg: 6.58 min

How many came back from previous week ?

44.18 %

Regular vs. New Commuters per day?

~ 70 :30

More commuters vs. previous week ?

Yes. By 29,658

Weekday vs. Weekend commuters

Daily Avg (weekday) 111,159Daily Avg (Weekend) : 93.435

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San Jose & San Francisco SmartCity Connection via Hotspot2.0

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Guest Access WLANOpen Auth, No EncryptionSSID: _SanFrancisco_Free_WifiRedirect: Splash Page URL

Internet

Splash Pagewith HS 2.0

‘Token’

AAAServer

Guest with Supported Device*

Connect and redirect to splash page

User will stay on Open WLAN, and access works just as it does now.

User will be sent an anonymous token that allows them to access the Hotspot 2.0 WLAN automatically.

Options only appear if splash page detects that the device supports the Hotspot 2.0 Token

4. Hotspot 2.0 & Wi-Fi Roaming

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5. UX Based Wi-Fi

Common Wi-Fi Complaints

1. Unstable connectivity

2. Inconsistent performance

3. Dead spots

4. Poor throughput

5. Low client density

performance differential

up to 5x

Interference Device Issues

Poor Wi-Fi Impacts Brand!

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5. Wi-Fi Innovations By Ruckus

BEAMFLEX (Adaptive Antenna)

CHANNELFLY

o Antennas can form 100s-1000s unique antenna pattern combinationso Antenna software learns from traffic real time throughput of each antenna

combinationo Antenna software selects best performing combination per-packet, per-client

POLARIZATION DIVERSITY

Software learns and predicts throughput of all channels continuously

Channel selection algorithm ensures use of best performing channel in real time

Adaptive polarization matching per client device

Horizonal Polarization

Vertical Polarization

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5. Competitive Advantage with BeamFlex™

+BEAMFLEX

SMART ANTENNA ARRAYBEAMFLEX

SOFTWARE

=Competitor AP Ruckus AP Competitor AP Ruckus AP

8.78.3

0.3

5.5

iPhone® Throughput Test** Source: Ruckus internal testing

With Interference Without Interference191 Neighbor APs

Time in Seconds

Mbps

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Ruckus Wireless - The Big Picture

ACCESS POINTS

CONTROLLERS

MANAGEMENT AND REPORTING

Smart Wi-Fi

Infrastructure

APPLICATION PROGRAMMING INTERFACES

RUCKUS & THIRD PARTY APPLICATIONS

Smart WirelessServices

RUCKUS MOBILE APPS

XaaSPrivateCloud

PublicCloud

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o Carrier-class Smart Wi-Fi innovatoro Publicly held since Nov 2012 (NYSE: RKUS)

o 33,000+ enterprise-customers worldwide o 170+ carrier customers globallyo 800+ employees in nearly 40 countrieso 80+ patents granted, many more pending

Ruckus Factoids

CAGR

56%$44

$75

$120

$215

$263

12111009 13

AnnualRevenue

(in $ millions)

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140

170

09 10 11 12 135

11

23

71

Service Provider Installed Base Count

Our Service Provider Customers

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0

50

100

150

200

250

300Annual

CAGR

56%$44

$75

$120

$215 $69

2Q14

(in $ millions)

12111009

(in $ millions)

Rapid Revenue Growth

$64$57

$263

13

Quarterly

$73

1Q,13

$75$81

CQGR

7.3%

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5. UX Based Wi-Fi

✘ Integrated spectrum analysis

✘ SNR / RSSI based mitigation

✘ Background channel scanning

✘ Remote channel adjustment

Today’s Wi-Fi Ineffective:

Fig-1: Neighbor network interference

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Innovative Cloud Services

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Handset RF Improving

1x1Not MIMO

(Single Antennae)

2x2MIMO

(Two Antennae)