Selling the Broadband Wireless Advantage A Nortel Networks / Star21 Networks Case Study

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Selling the Broadband Wireless Selling the Broadband Wireless Advantage Advantage A Nortel Networks / Star21 Networks Case Study A Nortel Networks / Star21 Networks Case Study Craig Clary, Director Account Marketing Broadband Wireless Access, Nortel Networks Broadband Wireless World Forum February 19, 2001 San Francisco, California

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Selling the Broadband Wireless Advantage A Nortel Networks / Star21 Networks Case Study. Craig Clary, Director Account Marketing Broadband Wireless Access, Nortel Networks Broadband Wireless World Forum February 19, 2001 San Francisco, California. The Broadband Access Technology Landscape. - PowerPoint PPT Presentation

Transcript of Selling the Broadband Wireless Advantage A Nortel Networks / Star21 Networks Case Study

Page 1: Selling the Broadband Wireless Advantage A Nortel Networks / Star21 Networks Case Study

Selling the Broadband Wireless Selling the Broadband Wireless AdvantageAdvantageA Nortel Networks / Star21 Networks Case StudyA Nortel Networks / Star21 Networks Case Study

Craig Clary, Director Account MarketingBroadband Wireless Access, Nortel NetworksBroadband Wireless World ForumFebruary 19, 2001San Francisco, California

Page 2: Selling the Broadband Wireless Advantage A Nortel Networks / Star21 Networks Case Study

The Broadband Access The Broadband Access Technology LandscapeTechnology Landscape

FS Optics

P-P Radio

PMP Radio

wDSL

Optics

fT1/T1/DS3

xDSLCable Modem

Dial AccessISDN

Multiple Technologies Competing For a Wide Variety of Users – All Open Up The First Mile In

Their Own Way

Page 3: Selling the Broadband Wireless Advantage A Nortel Networks / Star21 Networks Case Study

Selecting a TechnologySelecting a TechnologyW

irel

ess FS Optics

P-P RadioBWA (LMDS)

wDSL

Generally, Solutions Are Hybrids Because No One Technology Breaks Through All Constraints

OpticsxDSLCopperCable Modem

Wir

ed

High

Sus

tain

ed

Rate

Acc

ess

User

Dist

ance

from

POP

Line

of S

ight

Acce

ss C

ost /

Use

r

Busin

ess C

lass

QoS Legend

N/A or very low barriers Some barriers exist

Issue may block implementation

Tim

e to

Depl

oy

Page 4: Selling the Broadband Wireless Advantage A Nortel Networks / Star21 Networks Case Study

Broadband Wireless Value Broadband Wireless Value PropositionProposition

Speeds deployment time

Provides high-speed connectivity to the optical core

Delivers scalability

Extends the reach of fiber loop

Reduces recurring operational expenditures

Increases service provider control

Page 5: Selling the Broadband Wireless Advantage A Nortel Networks / Star21 Networks Case Study

Service Growth ProjectionsService Growth Projections

Service Offering CAGR2000-2003*

0% 50% 100% 150% 200%

IP VPN - Network BasedADSL/SDSL

VoIPASP

Web HostingIP VPN - CPE Based

E-Commerce Web hostingFront & Back Office Applications

ATMNetwork Based Business Firewall

IP VPN - Hidden Frame RelayEthernet - Transparent LAN Service

Dedicated Internet Access LBDedicated Internet Access MBDedicated Internet Access SB

Dial-Up Internet Access SB MarketFrame Relay

LAN Dial-Up Internet Access BRI-ISDNLAN Dial-Up Internet Access 56K

Leased Private Line DS0 to T3Dial-Up Internet Access MB Market

Value Added IPServices Lead The Way

* Various sources

Page 6: Selling the Broadband Wireless Advantage A Nortel Networks / Star21 Networks Case Study

Business Class ServicesBusiness Class Services

Legacy Services/ Leased Line Replacement• N*T1/E1 (fractional T1/E1)• Frame Relay/T1(E1) and X.21• High Speed Internet (from T1(E1) to OC-3 & 10- and 100-BaseT)

Must support traditional services with business class QoS

Advanced IP Services

• IP-VPN (RAS and Site-Site)• Dedicated Web Hosting • Application/E-mail Hosting

Allows the Service Provider become the Ethernet Service Provider

Page 7: Selling the Broadband Wireless Advantage A Nortel Networks / Star21 Networks Case Study

Business Class ServicesBusiness Class Services

The BWA Challenge Is To Ensure Seamless Supportand Speedy Delivery Of High Value Services

Managed Services• End-End with Differentiated

SLA• Network Based Security (e.g.

Firewalling) • Single Point Billing for Bundled

Service

Once an Ethernet Service Provider – Managed Services become the up-sell

In-Building Distribution Solutions• BWA/xDSL bundling• Switched Etherent/VLANs on CAT5• Wireless LAN

Access is not the end-game – need integrated solutions to solve the last 500 ft

Page 8: Selling the Broadband Wireless Advantage A Nortel Networks / Star21 Networks Case Study

Broadband Wireless Access Broadband Wireless Access A Global Market? -AbsolutelyA Global Market? -Absolutely

0%

20%

40%

60%

80%

100%

2000 2001 2002 2003 2004

NA

CALA

Asia

Europe

Source – Strategis Group Interpreted by Nortel Networks

The Globe is Equally Divided in 4 Years Despite The Head Start in North America

Page 9: Selling the Broadband Wireless Advantage A Nortel Networks / Star21 Networks Case Study

BWA Year 2000 Market BWA Year 2000 Market ExpansionExpansion

North AmericaCountries Spectrum Pop

1 1300 MHz 273M

EuropeCountries Spectrum Pop

15 336-1064 MHz 380M

CALACountries Spectrum Pop

4 100-1900 MHz 49M

AsiaCountries Spectrum Pop

4 120-400 MHz 229M

Additional 24 Countries Covering 931M Pops

Page 10: Selling the Broadband Wireless Advantage A Nortel Networks / Star21 Networks Case Study

As the Core Expands As the Core Expands So Must the First MileSo Must the First Mile

We Haven’t Seen Anything Yet

1

10

100

1,000

10,000

100,000

1,000,000

10,000,000

2000 2001 2002 2003 2004

Capacity in kilo TeraBytes / Month

Source – Ryan, Hankin, Kent Nov-2000

Page 11: Selling the Broadband Wireless Advantage A Nortel Networks / Star21 Networks Case Study

BWA Flexibility Rides BWA Flexibility Rides Global See-SawGlobal See-Saw

Wireless Culture

Services

Auction

Spectrum Acquisition

Grant

IP Based Legacy

HighLow

Rapid

Spectrum Use Covenants

Over Time

Channelized Block

Spectrum Channelization Operators

CAP ILEC

Europe Asia N. America CALA

Page 12: Selling the Broadband Wireless Advantage A Nortel Networks / Star21 Networks Case Study

Star 21 TimelineStar 21 Timeline

March 1999 – STAR 21 (formerly Star One)founded

August 1999 – STAR 21 gains 3.5 and 26 GHZ licenses in Germany

April 2000 – STAR 21 Networks and Nortel Networks partnerto build end-to-end data network

January 2001 – STAR 21 doubles bandwidth efficiency of base stations with dual carrier solution

February 2001 – STAR 21 wins national license in Austria

November 2000 – RaisedUS$500 million in tightfinancial market

January 2001 – Commercial launch150 base stations

December 2000 – WinsNational Romanian 26 GHzlicense

April 2000 – Acquisition ofnational 26 GHz Swiss licenses

March 2000 – Acquisition ofnational 26 GHz licenses in Spain

September 2000 – Acquisition ofnational 26 GHz licenses in Czech Republic

Page 13: Selling the Broadband Wireless Advantage A Nortel Networks / Star21 Networks Case Study