Wireless Technology TrendsU.C. Berkeley Opportunity Recognition 2007

for Sevin Rosen

Manu AnandYoungmin KimJason Lacombe

Kurt MillerDavid Pinn

Srinivasan Ramaswamy

MESH NETWORKS EXCEED TRADITIONAL WIRELESS NETWORKS IN RESLIANCY AND SCALABILITY

• Mesh networks deliver data including voice, video and sensor readings through a series of hops (or nodes) rather than direct to the intended target.

• Primary advantages:– Self-healing: if one node fails, the network simply

delivers via an alternate path.– Load-balancing: traffic can be distributed across

multiple nodes to avoid bottlenecks– Dynamic: a mesh network can be exapanded simply

by adding more nodes that are then automatically incorporated; no need for fixed layout or extensive forecasting of demand

– Ease of Deployment: equipment, buildings and other infrastructure can be networked without new wiring and, frequently, without local power.

WIRELESS MESH NETWORKS (WMN) ARE ESTIMATED TO BE A $1B MARKET BY 2010

• Trends:– Industries recognize the value of adopting tracking technologies like RFID to

monitor and respond to their business environment– Sensor costs are dropping– Form factor sizes are shrinking

• Results:– The Wireless Mesh Network (WMN) market witnessed 2.5x growth in 2006

and reached nearly $400M in revenue1

– This same market is expected to grow to nearly $1B by 20101 with 100K+ access points shipping per year.

– By other estimates, municipal mesh networks are expected to cover 325,000 sq.km by 2010 and alone generate revenues of $1.2B for mesh network providers2

– The wireless sensor market for monitoring infrastructure is expected to grow from $160M in 2004 to over $1.8B in 20123

1. In-Stat: "Mesh Networks: Moving From Ad Hoc to Fixed Infrastructure“2. ABI Research, “Wireless Mesh Networking: Technologies and Deployment Strategies for Metropolitan and Campus Network”3. Frost & Sullivan’s World Wireless Sensors and Transmitters Markets

ISSUES REMAIN WITH STANDARDS, POWER MANAGEMENT AND ESTABLISHED MARKET LEADERS

• No clear standard– current generation comprised of generally incompatable, monolithic

deployments based on 802.11b/g– 802.11s is the emerging standard for wireless mesh but has not yet

been ratified• Many small players in the market; ripe for consolidation

– muni Wi-Fi market leader (Strix systems) had 22% of market share (by revenue) in 2006

• Large players now entering– Cisco entered mesh in 2005 with well established brand and sales

channels

FUTURE OF MESH NETWORK TECHNOLOGY AT U.C. BERKELEY

• Smart Dust– prototype packs sensor, processor and radio

communication into 2.5mm x 2.5mm form factor– issue: shrinking power supply to match

• Advanced Power Management– issue: 80%+ of power is consumed

while access point is not transmitting– solution: advanced rendezvous

schemes to power-off AP unless communicating and extending life of battery-powered APs

JUNK PAST THIS POINT

CURRENT MESH NETWORK MARKET IS COMPRISED OF NUMEROUS, VENTURE-BACKED PLAYERS

• Market-Share Leaders in Q3 20061:1. Strix Systems (www.strixsystems.com)

• 22% share2 of market (by revenue)2. Tropos Networks (www.tropos.com)3. BelAir Networks (www.belairnetworks.com)

1. Infonetics2. Wireless Mesh Equipment Market Tracker