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Milan, October 27, 2005

WiMAX. a reality in Spain. Milan, October 27, 2005. INDEX Iberbanda’s Evolution: LMDS to WIMAX Rural Iberbanda pre-WiMAX Kick Off – 2004 Rural Deployment Status and Next Future Plans Urban Deployment Status and Next Future Plans I berbanda in urban areas – 2006

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Milan, October 27, 2005

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  1. WiMAX. a reality in Spain Milan, October 27, 2005

  2. INDEX Iberbanda’s Evolution: LMDS to WIMAX Rural Iberbanda pre-WiMAX Kick Off – 2004 Rural Deployment Status and Next Future Plans Urban Deployment Status and Next Future Plans Iberbanda in urban areas – 2006 WiMax Deployment forecast - 2006

  3. 43 M people 500.000 sqkm 600 B$ GDP Average annual GDP growth since 1992: 3,2 % Overview of Spain

  4. Startup in 2000. 3.5 GHz, 20+20MHz paired, spectrum nationwide license 3.440-3.460 and 3.540-3.560 Phase I (2,000 - 2,003) – LMDS 3.5 GHz Targeting SME and corporations Data services (E1, Internet, VPN) and Voice services (ISDN PRI, BRI) Networks deployed in areas where competitors have been present for 10 yrs High customer acquisition cost  Service for larger customers Broadband in Spain = ADSL Increasing bandwith Reducing incoming per user Difficult to success in that market... Iberbanda’s Evolution

  5. Phase II (2004 – Now) Targeting Rural Areas due to... Universalization of Broadband Services pushed by local Govs Broadband where ADSL is not present Cover the GAP between Urban and Peripheral/Rural Lower installation and CPE cost Deployment of a preWiMAX network in 25% territory of Spain (Andalucía, Murcia, Cataluña). Begin to think about extending the technology Wimax to Urban areas Achieve lower costs Take advantage of preWimax Deployment First tests of Intel’s WiMAX chip in Q3. Iberbanda will deploy WiMAX technology in Q4. Iberbanda’s Evolution

  6. Deployment in Andalucia and Cataluña during 2004 Data service 256/512/1024/2048/4096kbps with 1:10;1:5;1:2;1:1 CIR VoIP with up to four POTS lines – September 2004 Over 200 pre-WiMAX BS’s planned with 4 sectors (90º) each in 2004 20.000 services planned Avg/Max number of CPEs/sector = 40/250CPEs CPEs equipped with 18° directional antenna Just Ethernet at CPEs, external MTA (RJ-11) when VoIP required Installations performed mostly in rural areas with near-LOS environment Cell radius 31km – best recorded (in LOS conditions) 10km – average (in near LOS, with high variance) Rural Iberbanda pre-WiMAX Kick Off - 2004

  7. Services to Residential, SMEs and Corporations Targeted 54% of Spain’s population in 2004 Andalucia + Cataluña + Murcia Pushed by regional Governments VoIP service started in Sept ’04 Customer satisfied with installation time & reliability Targeting 68% of Spain’s population in 2005-2006 Navarra and Castilla y Leon already scheduled 300 pre WiMAX BS already deployed in Jun’05 – 500 expected Dic’05 25000 services up and running Up to 1,000 BS during 2006 – Iberbanda leads Wimax deployments... Rural - Deployment Status and Next Future Plans

  8. 275 LMDS BS on air in urban areas on the roof – 72 towns in Spain Installing Wimax sectors in 30 BS – Since Q3 2004 After several tests... Expensive CPE installation – License / Neighbours / LoS Complicated migration process CPEs outdoor with directional antennas Bad CPE modulation decreasing BS capacity Frequency availability Interoperability not yet ready ¿CPE Auto installation? Technology & Marketing & Sales discussion To be a complement of ADSL, target specific urban areas To be a competitor of ADSL, target the whole town FDD or TDD – Different capacity for downstream or upstream TDD / 802.16e / mobility Urban Deployment Status and Next Future Plans

  9. Installing Wimax sectors in 50 additional BS Targeting specific areas with high customer density Until 2006 Q2 - Going on with tests... FDD / TDD CPEs indoor BS not only on the roofs (micro-pico cell) Cell radius in urban areas ( 1 – 3 km ??) TDM over IP (E1, ISDN Primary,...) 2006 Q2 – NOMADICITY as new service - PILOT Smart antennas / OFDM A (better uplink) Indoor installation – Be careful with bad modulation!!!!!! Interoperability – Low cost CPE Better QoS – Link with several BS Easier migration process when introducing Capacity BS Iberbanda in urban areas – 2006

  10. WiMax Deployment forecast. 2006 Areas with Iberbanda’s network

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