In-Building Wireless Infrastructure Solutions

Airwavz Product Update

D-RAN Rate Card and eRAN Concept Study

SEPTEMBER 19TH, 2017

June 2017 Private & Confidential

Table of Contents
10 10th St Concept Study

Product Roadmap Update Slide X

Update
Pricing Slide X

10 10th St eRAN Design Slide X

10 10th St eRAN Cost Analysis Slide X

MLA Update Slide X

Next Steps Slide X

2
Product Roadmap
Strategies in reducing in-building costs

Airwavz is significantly reducing in-building costs to the mobile network operator

through two key principals:

• Accelerate building owner participation in costs to develop in-building wireless

infrastructure. Wireless is rapidly being perceived by the building owner community as
an essential utility and critical to retaining and attracting tenants.

• Move towards less expensive, more efficient in-building architectures such as next
generation distributed and/or baseband technologies that allow for greater flexibility
and stronger network densification. These technologies also enable efficient
centralization of core elements of the network which in turn offer greater scale and
speed to market.

Airwavz’ objective is to identify commercial buildings that achieve lower cost

and greater densification when compared to outdoor macro or small cells,
resulting in optimal mobile performance.

3
Product Roadmap
Technology evolution

2016 2017 2018

DAS

Building Owner Participation “BOP”

Multi operator
Multi band D-RAN
Coverage 1/3, 1/3, 1/3 program
Fiber/coax centric Evolution to eRAN “Parallel Deployment”
standardized building Multi operator
Centralized radio owner pricing targeted Multi band
source at reducing carrier cost eRAN Mutli Operator
Coverage & Capacity Single Operator
Shared amplifier and time to entry
Fiber/coax centric Single/Dual Band
Fiber/category cable Multi operator
Distributed radio
source Integrated radio Mixed integrated and
distributed radio Next Gen SDN
Shared passive coax source
source DAS (Future)
C-RAN compatible MIMO out of the box
LTE advanced features Integrated LTE
advanced feature set
2017Q2PoC Ongoing Vendor collaboration
300 South Tryon Cost and 2017Q3PoC
Launched Performance PoC 10 10th St
Cost PoC
In Development
2017Q4PoC
Future 300 ST
Performance
4 PoC
Pricing Model
Value of building owner financial contributions

Incent Airwavz to structure deals with Building Owner - Operator

Building Owner Participation (“BOP”) Cost Sharing Model
• Airwavz’ risk exposure reduces with higher levels of
120%
BOP
• HIGH BOP results in 72% reduction in operator pricing;
highly likely to connect 100%

• MEDIUM BOP results in 40% reduction in operator 20%

pricing; increased likelihood of connect 80% reduction
• LOW BOP results in 20% reduction in operator pricing;

SHARE OF TOTAL COST

minimal likelihood of connect 40%
60%
• NO BOP does not incent the operator to connect due reduction
to large operator contribution
40%

72%
20% reduction

0%
None Low Medium High

-20%
BUILDING OWNER PARTICIPATION

Airwavz Share Operator Share Building Owner Share

5
Pricing Model
Airwavz Pricing Schedule

D-RAN Pricing Per Square Foot – 10 yr D-RAN Pricing Examples / Metrics

Product BOP Option MRC / SF Building BOP NRC MRC Sector MRC / Subs MRC /
Count Sector 45% Market Sub
over 10 years
500k SF High $0.00 5
High 20 Story
$958 $192 1,125 $0.85

Medium $0.00 5
Medium $2,083 $417 1,125 $1.85
DAS ICB Low $0.00 5
Low $2,750 $550 1,125 $2.44

None $0.00 5
None $3,458 $692 1,125 $3.07

High A $0.23* 750k SF High $0.00 $1,438 8 $180 1,688 $0.85

30 Story
Medium B $0.50* Medium $0.00 $3,125 8 $391 1,688 $1.85
D-RAN
Low C $0.66* Low $0.00 $4,125 8 $516 1,688 $2.44

None D $0.83* None $0.00 $5,188 8 $648 1,688 $3.07

High 1M SF High $0.00 $1,917 10 $192 2,250 $0.85

40 Story
Medium Medium $0.00 $4,167 10 $417 2,250 $1.85
eRAN ICB
Low Low $0.00 $5,500 10 $550 2,250 $2.44

None None $0.00 $6,917 10 $692 2,250 $3.07

*Up front payment provided upon request

6
 Pricing Model
Total Cost of Ownership Use Case

300 South Tryon Total Cost of Ownership Use Case

Building Details RAN Details RAN Costs D-RAN Pricing

BOP NRC MRC Term

Sq ft 638,500 Sectors 6 mRRU $6,000

Occupancy Bands High $0 $1,224 10

3,200 2 BBU $30,000
Med $0 $2,660 10
Subscribers mRRU Total
1,440 12 $102,000
45% Market CAPEX Low $0 $3,512 10
Floors 25 BBU 1 OPEX $510
(Monthly) None $0 $4,416 10

Financial Pro Forma (1000s) Key Metrics

BOP NPV Total Year Year Year Year Year Year Year Year Year Year Year BOP Subs / NPV / NPV / NPV /
7% CoC Cost 0 1 2 3 4 5 6 7 8 9 10 Sector SF Sector Sub
High $248 $310 $102 $21 $21 $21 $21 $21 $21 $21 $21 $21 $21 High 267 $0.39 $41,355 $172

Med $369 $482 $102 $38 $38 $38 $38 $38 $38 $38 $38 $38 $38 Med 267 $0.58 $61,535 $256

Low $441 $585 $102 $48 $48 $48 $48 $48 $48 $48 $48 $48 $48 Low 267 $0.69 $73,494 $306

None $517 $693 $102 $59 $59 $59 $59 $59 $59 $59 $59 $59 $59 None 267 $0.81 $86,200 $359

7
Pricing Model
Mobile Network Infrastructure Comparison

Mobile Network Infrastructure Cost Comparison

Macro Macro Macro Small Cell Small Cell Small Cell D-RAN D-RAN D-RAN D-RAN
(Low) (High) (Avg) (Low) (High) (Avg) 640k SF 640K SF 640K SF 640K SF
(No BOP) (Low BOP) (Med BOP) (High BOP)

CAPEX $200,000 $350,000 $275,000 $31,000 $46,000 $38,500 $102,000 $102,000 $102,000 $102,000
O&M $750 $1,313 $1,031 $116 $173 $144 $383 $383 $383 $383
(4.5% of CAPEX)
Ins and Taxes $250 $438 $344 $39 $58 $48 $127 $127 $127 $127
(1.5% of CAPEX)
FINANCIALS

3rd Party Lease $1,800 $3,500 $2,650 $350 $600 $475 $4,416 $3,512 $2,660 $1,224

Power $750 $1,250 $1,000 $16 $16 $16 $0 $0 $0 $0

Total Monthly
$3,550 $6,500 $5,025 $521 $846 $684 $4,926 $4,022 $3,170 $1,734
OPEX
Total Cost $626,000 $1,130,000 $878,000 $93,520 $147,520 $120,520
(over 10yr)
$693,120 $584,640 $482,400 $310,080
NPV $499,205 $897,839 $698,522 $74,911 $117,303 $96,107 $517,203 $440,965 $369,212 $248,129
(7% CoC 10yr)
NETWORK DETAILS

Radios 12 12 12 1 1 1 12 12 12 12

POPs 3,500 3,500 3,500 292 292 292 3,200 3,200 3,200 3,200
Subs
(45% market)
1,575 1,575 1,575 131 131 131 1,440 1,440 1,440 1,440
Spectral
.75 .75 .75 1 1 1 1.25 1.25 1.25 1.25
Weighting
NPV / Sub $317 $570 $444 $572 $895 $734 $359 $306 $256 $172
METRIC

NPV / Sub /
8 Spectral $423 $760 $591 $572 $895 $734 $287 $245 $205 $138
Weighting
Pricing Model
Transaction Conditions

Transaction Conditions – goal is to identify buildings that meet both the operator and building owner
network and financial needs and then move swiftly towards the delivery of a solution
Transaction Target Target BOP Building / Product Airwavz Probability of Service
Condition Market Sub Market Campus Size Pricing Operator Delivery
(SF) Commitment Expectation

1 High > 250K D-RAN A < 90 days

Factory
2 Med > 250K D-RAN B < 120 days

3 Low > 250K D-RAN C < 180 days

4 None > 250K D-RAN D ICB

5 Any < 250K D-RAN ICB ICB

DAS
6 Any Any
eRAN
ICB ICB

Any Any Any ICB ICB

Airwavz and Verizon would set expectation via MLA and develop a
program to execute and deliver quickly for conditions 1 and 2
9
Pricing Model
Target Markets

10
Proof of Concept
Concept Studies in reducing in-building costs

The objective of the “2017Q2PoC” concept study was to demonstrate the following
key principles within a commercial building located at 300 South Tryon St Charlotte,
NC:
• Reduce in-building cost per subscriber at or below typical outdoor macro or small cell cost
per subscriber by applying a D-RAN architecture and a building owner participation (“BOP”)
pricing model
• Achieve greater densification and performance by increasing the number of sectors per
building (decreasing the number of subscribers per sector) without increasing costs

The objective of the “2017Q3PoC” concept study was to demonstrate the following
key principle within a commercial building located at 10 10th St Atlanta, GA:
• Reduce in-building cost per subscriber at or below typical outdoor macro or small cell cost
per subscriber by applying an eRAN architecture and a revised building owner participation
(“BOP”) pricing model

11
Concept Study Objectives
The building – 10 10th St overview

10 10th St is a 13 story Class A Commercial

Building with approximately 421,000
rentable square feet with an occupancy of
approximately 2,100 people.

10 10th St

The building sits in the highly dense Midtown

submarket of Atlanta. Jacob’s engineering,
Google, Ebix Midtown, TEK Systems as well as
21 other tenants currently occupy the
building.
12
10 10th St eRAN Design
eRAN design summary

Neutral host D-RAN using RRUs and 15 port Capacity / C-RAN Hub
POI and RRUS (SISO) • 1,114 POPs – assumed 35% market share x 3,200
• Verizon: 1900 LTE and 2100 LTE Ericsson mRRUS 12 occupants

• T-Mobile: 1900 UMTS/1900 LTE, and 2100 LTE • 6 Zones / 6 sectors – equates to 186 POPs per sector
Ericsson 2203 – compared to single sector DAS design

• Custom 15 port point of interface between RRU and • BTS hotel converted to C-RAN hub – developed to
coax infrastructure (see next slide for details) support Airwavz fiber terminations, operator
baseband radio equipment (BBUs) and operator
• Amplifier power sharing: N/A backhaul equipment

RRU Layout Operator Design Targets

• DAS ROU locations were replaced with wireless • -85 RSRP for 95% for upper bands 1900/2100 LTE
distribution frame concept (“WDF”)/RRU
• 8 dB dominance over macro & SINR
• Floors 2 through 26 & basement/parking: Each
“WDF” covers 6 floors – compared to four with DAS • -48VDC with two hours of battery backup – this was
designed as an optional value add since typically
• Lobby and retail floors: Single “WDF” covering DAS remotes are not on backup DC power
those 2 floors
• Total of 6 ”WDF”s using 32 fibers per operator (two
fibers per RRU) – compared to 8 remotes using 8
fibers with DAS
13
300 South Tryon D-RAN Design
Wireless distribution frame (“WDF”) design

Custom Point of Interface

14
10 10th St eRAN Design
eRAN logical design

Commercial High Rise

eRAN Key Characteristics

“Parallel Deployment” RRU
Carrier 2 Carrier 1 Carrier 3
• Operator BBUs (DUs) are located in Carrier N
(Future)
centralized colocation facility and connect
to building via shared fiber infrastructure RF Access
• IDF closet terminates fiber and houses Unit
Indoor Radio Units (IRUs) per operator
• Operator unique DOTs are connected on
Primary Carrier 2
each floor via shared category cable IRU
IDF
Carrier 2 Carrier 1 Carrier 3
Centralized Carrier 1
IRU POI
Colocation Facility
Carrier 1 Carrier 2 Carrier 3 FPD IRU
Carrier 3

BBU BBU BBU

RRU BBU BBU

BBU BBU BBU Carrier 2 Carrier 1 Carrier 3

DC DC DC FPD

Battery Battery Battery

15
300 South Tryon D-RAN Design
Wireless distribution frame (“WDF”) design

IDF Closet equipped with Wireless Distribution Frame (“WDF”) functionality

16
300 South Tryon D-RAN Design
Wireless distribution frame (“WDF”) design

D-RAN Design Performance Comparison

DAS Coverage D-RAN Coverage

25th Floor 25th Floor

5W Remote Radio Heads deployed in the same location as SOLID 5W remotes easily met and in
some cases improved coverage results
Coverage gains achieved by implementing D-RAN allows for the reduction of “WDF” locations
(radio sets) when compared to DAS remotes by 25%, from 8 to 6

17
300 South Tryon D-RAN Design
Wireless distribution frame (“WDF”) design

Optional DC power configuration

Backup DC power plant is optional

value added service and not included
in cost estimates – very difficult to
achieve 1-2 hour backup battery
targets due to space limitations in IDF
closet for batteries
This design assumes 250W of -48VDC
power per remote radio unit or small
cell
Ideal power solution is to connect
remote radio units or small cells to
building AC power fed off a UPS,
however this solution is not always
feasible

18
300 South Tryon D-RAN Design
D-RAN design costs

Item Estimated D-RAN Total Cost of Ownership

Cost over 10 Years
Active Passive
Equipment Equipment
Active Equipment $0
0% 15%
Passive Equipment $114,770
O&M
Labor $316,546 35%

Data Center $36,000

Labor
Engineering $20,310 41%
Overhead
2% Engineering
Overhead $20,310 Data Center
2%
5%
Total CAPEX $507,936
CAPEX OPEX TCO
O&M (over 10 years) $269,855 Per Sq ft Per Sq ft Per Sq ft
Total Cost of
19 Ownership $777,795 $0.80 $0.04 per year $1.22
300 South Tryon D-RAN Design
D-RAN vs DAS design costs

Item D-RAN DAS D-RAN Comments

Cost Cost Savings

Active Equipment $0 $266,698 100.0% Active DAS equipment completely removed

Passive Equipment $114,770 $100,941
Labor $316,546 $270,860
Addition of hybrid combiners and fiber to support remote
-13.7% radio head connections
Additional labor required for development of WDF closet
and fiber splicing as well as effort needed to CW test each
-16.9% passive network segment with individual signal generators

Data Center $36,000 $60,000 40.0% Less equipment

Engineering $20,310 $33,850 40.0% Less engineering

Overhead $20,310 $33,850 40.0% Less project management and oversight

Total CAPEX $507,936 $766,200 33.7% Total CAPEX savings

Support costs are reduced due to no active equipment
O&M (over 10 years) $269,855 $344,790 21.7% and less data center space but 20x the fiber is required

20
Total Cost of Ownership $777,795 $1,110,990 30% Total cost of ownership reduction over 10 years
300 South Tryon D-RAN Design
D-RAN vs DAS design

Item D-RAN DAS Comments

Total Cost of
Ownership D-RAN is ~25% less expensive over 10 years

D-RAN achieved greater coverage utilizing same space as DAS – no amplifier power
Coverage sharing

Capacity D-RAN has increased sector density – 6 times the capacity

Remote Radios Due to increased number of zones D-RAN requires 6 times more RRUs

Technology Flexibility D-RAN eliminates active DAS components and modules

Upgrade to MIMO Conversion to MIMO requires upgrade to coax plant/antennas only

Hub space (Headend D-RAN eliminates DAS, POI, and radio equipment from hub leaving only BBUs and
or C-RAN) backhaul equipment

D-RAN uses 6 times more space and power than DAS – conversion from a single DAS
IDF space and power remote up to 6 RRUs

D-RAN uses 12 times more fiber – conversion from single DAS fiber up to 12 fibers (6
21
Fiber capacity RRUs x 2 fibers)
DAS vs D-RAN Pricing Comparisons
Operator cost of ownership models and key metrics

300 South Tryon Cost and Anchor Operator Pricing Models

DAS/D-RAN Total Costs DAS DAS D-RAN D-RAN

CAPEX Monthly CAPEX Monthly

Total Cost $766,200 $2,873 $507,936 $2,249

DAS/D-RAN Anchor Operator DAS DAS D-RAN D-RAN TOV % of
Pricing by “BOP” – 10 year term NRC MRC NRC MRC Total Cost

0% BOP $510,800 $1,916 $338,624 $1,499 67%

33% BOP $255,400 $958 $169,312 $750 33%

$.41 per
square foot
33% BOP coupled with D-RAN Over 10 years
represents a 65% reduction in operator
*TOV = Total Order Value (over 10 years)
cost when compared to DAS with 0%
BOP
22
DAS vs D-RAN Pricing Comparisons
Operator cost of ownership models and key metrics

300 South Tryon Cost and Anchor Operator Pricing Models

Cost Per Sector
DAS/D-RAN Anchor Operator NRC MRC Sector NRC / MRC /
Pricing by “BOP” – 10 year term Count Sector Sector

DAS 0% BOP $510,800 $1,916 1 $510,800 $1,916

DAS 33% BOP $255,400 $958 1 $255,400 $958

D-RAN 0% BOP $338,624 $1,499 6 $56,437 $250

D-RAN 33% BOP $169,312 $750 6 $28,219 $125

$232 per POP

33% BOP coupled with D-RAN Over 10 years
represents a 94% reduction in operator (1,114 POPs based on
cost per sector compared to DAS with 35% market share)
0% BOP

23 *TOV = Total Order Value (over 10 years)

DAS vs D-RAN Pricing Comparisons
Operator cost of ownership models and key metrics

DAS vs D-RAN Anchor Operator Total Order Value Per Sector by BOP
300 South Tryon (DAS – 1 sector, D-RAN – 6 sectors)
$800,000 1200

$700,000
1000

$600,000 300 South Tryon: 33% BOP coupled

with D-RAN represents a 94% 800
$500,000 reduction in operator cost per sector
COST PER SECTOR

compared to DAS with 0% BOP

$400,000 600
D-RAN increases
density of sectors
$300,000
400

$200,000

200
$100,000

$0 0
0% 33%
DAS TOV Per Sector $740,660 $370,330
DRAN TOV Per Sector $86,422 $43,211
Avg DAS POPs/Sector 1114 1114
Avg DRAN POPs/Sector 186 186
24
DAS vs D-RAN Pricing Comparisons
Operator cost of ownership models and key metrics

DAS vs D-RAN Total Order Value Per POP by BOP

300 South Tryon (1,114 POPs based on 35% market share)
$700 1200

$600
1000
$500 TOV/POP Target
$500
800
300 South Tryon: 33% BOP coupled with D-
COST PER POP

$400 RAN represents a 65% reduction in operator

cost per POP compared to DAS with 0% BOP 600
$300

400
$200

200
$100

$0 0
0% 33%
DAS TOV Per POP $665 $332
DRAN TOV Per POP $465 $233
Avg. POPs 1114 1114

25
Airwavz Building Portfolio
Extensive portfolio of mid to large size commercial buildings

Active Relationships with Major REITs and Commercial Property Owners

• Extensive Portfolio of Mid to Large Size Commercial Building in Top 20 Markets
• Focus on Dense Sub-Markets within Major Metro Markets
• Manage all Real Estate Acquisition and Agreements
• Master Agreements in Place Property Owner Partners
(partial list)

Airwavz Manages all Building Operations

• Contract Negotiations and Life Cycle Management
• On-Going Relationship with Building Management
• Manage Tenant Transitions (No Pass-Through Charges)
• Building Remodels and Up fits

Rapid Scalability  Quick Turn-Up

• Extensive Portfolio of Contracted Commercial Real Estate
• Pre-Designed Projects (“On-the-Shelf” Projects)
• BTS Hotel Scalable Capacity and Front Haul Networks

26
Airwavz Building Portfolio
Extensive portfolio of mid to large size commercial buildings

Minneapolis

Chicago

Nashville

Charlotte
Dallas
Atlanta

Houston Active

4Q 2017
Tampa Miami
Headquarters

27
Master Lease Agreement
Update

General • Product Definition

Agreement

Service Level • DAS

• D-RAN
Agreement • eRAN

• DAS and eRAN

Pricing • D-RAN

Other Items

28
Next Steps
Benefits and Advantages

Airwavz is accelerating building owner participation in costs to develop in-building

wireless infrastructure
• Growing portion of Airwavz portfolio includes building owners who have committed funds to
develop IBW systems

Airwavz is moving towards less expensive, more efficient in-building architectures such as
next generation distributed and/or baseband technologies that allow for greater flexibility
and stronger network densification
• D-RAN presents a unique opportunity to scale IBW systems more cost effectively and increase
density
• DAS continues to evolve and serve as a quality solution for buildings with space and power
limitations

Airwavz’ objective beyond this demonstration is to continue identifying large commercial

buildings that achieve lower cost and greater densification when compared to outdoor
macro or small cells, resulting in optimal mobile performance.
• Airwavz to provide building portfolio to operators on an ongoing basis, especially those that
achieve the results outlined in this presentation
29
 Thank you.
www.airwavz.com

David Herran, Vice President – Architecture and Technology

David.herran@airwavz.com
(704) 560-3848

Joe Perrigo, Vice President – Construction

joe.perrigo@airwavz.com
(704) 560-1209