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Overview AirWalk Communications provides end-to-end wireless CDMA cellular network equipment. Our products include radio base stations with integrated base station controller and mobility softswitches and monitoring systems, all packaged in one “Total Solution”. The Company is an end-to-end supplier of 1xRTT and 1xEV-DO cellular infrastructure, the industry’s first integrated voice and data IP Radio Access Network (RAN) unit in a compact, all-in-one platform. Today’s wireless operators are faced with the challenge of installing more reliable and cost effective networks due to the growing number of subscribers on their licensed frequencies. These mobile service providers are aware that legacy networks fall short of addressing the critical issues associated with cost and coverage. They are looking for new ways to optimize their networks to deliver more revenue without compromising customer satisfaction. The $18 billion CDMA global wireless infrastructure market currently surpasses 212 million subscribers on 98 networks and is the fastest-growing wireless standard of leading cellular technologies. In order to meet this hyper-growth in infrastructure build-out CDMA operators are looking for alternative technologies that are less costly and time consuming to implement and operate. AirWalk’s AW-Series line of compact, cost effective CDMA all-in-one base station/controllers is uniquely positioned to be the alternative technology of choice for several reasons: The all-in-one design substantially reduces equipment acquisition cost in comparison to legacy equipment, particularly when acquired as a fully integrated cellular network with a softswitch solution. The IP-based technology offers the operator the opportunity to increase revenue by  increasing voice capacity and minutes-of-use (MoU), in addition to providing a forward migration path to 1xEV-DO and 1xEV-DV technologies. The single unit BTS/BSC design lowers the cost of installation, operations and monitoring, and the pole or wall mount configuration significantly reduces or eliminates real estate and tower costs. AirWalk’s products leverage current network investments through integration with legacy networks (T1/E1, ATM) and are backward compatible with IS-95 A/B. The AirWalk IP-RAN is much less sensitive to backhaul delays when compared to conventional networks utilizing a centrally located BSC because the integrated on-board BSC eliminates latency between the BTS and the BSC. This feature also facilitates a more efficient soft hand-off “RAN-to-RAN”. AirWalk is committed to delivering solutions to wireless telecom operators on a direct basis in certain markets, and in other markets through selected distribution channels such as system integrators and major infrastructure OEMs. AirWalk has entered into strategic product development and reseller alliances with manufacturers of complementary core wireless infrastructure products, which enables us to provide network solutions as part of a turn-key solution. AirWalk’s line of AW-Series IP base stations is currently available for the CDMA 1xRTT standard in 450 MHz, 800 MHz, 1.8 GHz, 1.9 GHz and 2.1 GHz frequency configurations. Additional frequency band variations, to cover other frequencies around the world, are in various stages of development. A comprehensive program is underway to develop 1xEV-DO network products for introduction in 2005.

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