Wi-LAN Signs Joint Venture with Tele2 U.K. to Develop National Public Wireless Data Network

Business Wire, June 17, 1998

CALGARY, ALBERTA--(BUSINESS WIRE)--June 17, 1998-- Wi-LAN Inc.(Alberta Stock Exchange:WIN.)

Canadian Wireless communications innovator moves into licensed spectrum market with plan to provide high-speed wireless Internet and intranet services throughout the United Kingdom

Wi-LAN Inc. (ASE:WIN), a leading provider of wireless data communications products and solutions, has signed a contract with Tele2 U.K. Ltd. to supply a Wireless Local Loop system for a nation-wide wireless data network in the United Kingdom. This release includes the name of the European partner following the project announcement. Tele2 U.K., a subsidiary of Millicom International Cellular S.A., a leading developer and operator of cellular telephone services worldwide, will use the network to offer high-speed Internet access and intranet services to small and medium sized businesses and small office/home office workers, initially in England's Thames Valley region. The wireless network provides faster and cheaper connections than ISDN, at up to 2 Megabits per second (Mbps). This equates to over 15 times the speed of current wire-based ISDN systems u or the equivalent capacity to transmit Tolstoy's War and Peace in 15 seconds. National roll out of the Tele2 U.K. service is planned for 1999, and will reach 60 per cent of the U.K. population by 2003.

Higher power and longer range than conventional systems

Instead of traditional landlines, the system uses a series of base stations, antennas and Wi-LAN's wireless radio technology to transmit data using Internet protocols. The project was spurred with the award to Tele2 U.K. of licensed radio spectrum in the 3.6 to 4.2 GHz band, with a mandate to extend broadband telecommunications services to a broader range of the U.K. population. A licensed band means radio frequencies can be transmitted at a higher power and longer range than in conventional licence-exempt bands, with little risk of interference.

"Supplying our technology to a national-scale licensed spectrum project opens a lot of doors for Wi-LAN," says Hatim Zaghloul, Wi-LAN President and CEO. "We have a very successful track record in license-exempt point-to-multipoint networks throughout the world, but working with a licensed operator like Tele2 U.K. provides us with an excellent opportunity to extend our products and expertise into new markets."

Two phase approach

In the first phase, Wi-LAN's wireless Ethernet bridges will be used to provide a wireless digital data network to businesses and homes across England's storied Thames Valley region. The region was chosen as the test site because approximately 15 per cent of households in the region contain at least one home-based worker u double the number in the rest of the U.K. The value to Wi-LAN for the initial phase of the contract is $1.6 million in revenue in 1998 through product deliveries and development fees.

National roll out of the second phase of the service is planned for 1999. Wi-LAN expects to provide Wireless Local Loop equipment requirements as part of the second phase, and based on the terms and conditions of the contract, the value of the second phase to Wi-LAN is expected to range from $75 to $150 million. A new way of working

The Tele2 U.K. system provides users with high speed wireless Internet access, and Intranet connections as well as Virtual Private Networks (VPN).

The system is terrestrial, as data sent from an end user's connection point transfers digitally to a wireless radio system designed by Wi-LAN that converts and transmits the information by radio signals to central wireless data sites located along the Thames Valley. These data sites, called Tele2 Access Nodes (TANs), use three antennas each covering a 120-degree sector to send and receive information. Data is then exchanged from these data sites via microwave signals to a central location, which has multiple connections to the Internet.

"We're essentially building a public telecommunications system from scratch, but it made no sense to use yesterday's technology," says Peter Scrope, Managing Director, Tele2 U.K.. "A digital packet-based wireless network allows us to offer information workers high-speed Internet and Intranet connections regardless of where they choose to work, and Wi-LAN's cutting-edge wireless technology is an excellent fit for this innovative new system."

The Benefits of the Tele2 U.K. system

Today's information-age "teleworkers", either a consultant or someone working for a larger corporation away from the office, increasingly require the ability to rapidly transmit high volumes of data wherever they choose to work. Current cellular technology is an extremely slow and expensive mode of transmitting information, making it a poor choice for remote use of the Internet or for corporate networking.

As well, the Internet is by nature "bursty", meaning that information "packets" are sent in spurts. Traditionally, customers leasing standard telephone wires pay heavily for their full-time connection, even though information typically flows only 10 per cent of the time. Faster and less expensive than competitive ISDN lines, the Tele2 U.K. system offers the benefits of a leased line, such as constant connectivity, but its packet based technology means customers only pay for the transmission time they actually use.