About Nera Networks

Introduction to Nera Networks

Bridging Societies
Content

• About Nera Networks

• Appendix
• References and cases
Nera Group reporting is divided into four main
business areas

Transmission Satellite Satellite Broad- Others/

Networks Communications band Access Eliminations

• Microwave radio solutions • Inmarsat terminals • DVB-RCS systems* • Nera Holding Company
• PtP and PtMP systems • Inmarsat gateways • iPSTAR gateways • Contract manufacturing
• Turn-key solutions & IT divisions in NeraTel
(Singapore)
Source: Unit sold in March. Transaction to be completed in Q2, 2006
Nera has, for more than 50 years, provided wireless
solutions to the telecommunications market

Nera Group in brief

• Established in 1947
• Sales 2005: 2 597 MNOK Norway
• Market cap: ~1 800 MNOK Russia
UK Poland
• Market shares: Germany Czech Kyrgyzstan
– Wireless transmission: 5% Italy Pakistan China
– High capacity (SDH): 18-20 % USA Morocco Thailand
Libya UAE India Vietnam
– Mob. Satcom: 40 %
Mexico Malaysia Philippines
• 1 411 employees end 2005 Venezuela Nigeria Singapore
• ~300 employees within R&D Indonesia
Colombia
• 30 sales- and marketing offices worldwide
• 90% export Brazil
Australia
• Nera Networks Argentina
– ~60% of Nera’s revenues
– ~700 employees,~150 within R&D

Source: Financial reports

The financial performance is improving for Nera

Operating revenue per business area Operating profit/loss per business area
3000
(MNOK) 100
(MNOK)
2597 80
74
2420
2500
60
485
383 42
40
102 33
2000 80
20 20
502 523 9
0
1500
2004 2005
-20 -20

1000 -40

1455 1487 -60

500 -72
-80

-100 -103
0
2004 2005 -120

Transm ission Netw orks Satellite Com m unications

Transm ission Netw orks Satellite Com m unications
Wireless Broadband Access Others/elim inations
Wireless Broadband Access Others/elim inations

Headlines, 2005
• Strong improvement from 2004 in Transmission
• Satcom and WBA effected by provisions and restructuring costs but demonstrated
improvement during the latter part of 2005 on the back of cost cutting efforts

Source: Financial reports

From an operational point of view, there are three main
business areas in Nera
100% owned
Nera Networks AS
CEO: Øyvind Isaksen
• Offers transmission networks
solutions for market segments
such as Mobile, Fixed Line
Carriers, Broadcast, ISP &
Enterprise, Governments,
Defence, Offshore/Utilities etc.
• Covers Europe, Middle East,
Africa and Americas
• Headquarters in Bergen,
Norway
Nera ASA
CEO: Bjørn Olafsson
51% owned
Nera Telecommunications Ltd.
CEO: Samuel Ang
• Offers products and services incl.
satellite communications,
microwave radio transmission,
networking infrastructure and
high-end electronics (Nera
Electronics) contract
manufacturing
• Has served clients and services
in Southeast Asia since 1978
• Headquarters in Singapore
100% owned
Nera SatCom AS
CEO: Stig Are Mogstad
• World-leading manufacturer of
satellite phones and systems
for mobile and fixed satellite
communications at sea and on
land
• Provides broadband via
satellite access systems
• South and North America,
Asia, Middle East and Europe
• Headquarters in Billingstad,
Norway
The Nera Networks organization has a set of core values
that builds around our mission, ”Bridging Societies

Mission
• Bridging societies

Business Idea
• We are a world class
wireless communications
provider linking societies
and businesses

Position
• Understanding networks
better!

Source: Nera Networks

Nera Networks offers transmission solutions to most
large operators world-wide
Nera Networks offers transmission solutions...

...to telecom segments world-wide...

Nera Network’s segments and

sample customers

Mobile

...that enable operators to build networks that

transfers voice, data and broadcast to businesses ISP/ Enterprise
and consumers in a flexible and cost efficient way...
Carrier/
Broadcast
R&D/Prod. Mngt./Finance/IT/Quality/Human
Resources Government/
Defense
Turn Key Solutions
Manufact/ Installation, After sales
Design & 3rd party
Assembly handover, support &
Planning Supply
& Logistics training services
Some of the solutions we have provided represent
milestones in the microwave communications industry
Europe Kyrgysiztan
• Wireless • Longest hop,
triple play 160 km
solution,
(Internet,
voice and
TV operator)

Columbia
Saudi Arabia
• National backbone
• Large (>2,000 Tx/Rx) multiple
implemented in 6 months
channel SDH backbone
• Turn key solution including
providing rural interconnection
design and installation
for PTT

Africa
Australia
• 20000 km of
• One of the
transmission
largest
networks
digital
delivered on
broadcast
turn key
network
basis
world-wide
Recently we launched the new Evolution Series, a market
leading, common microwave platform radio system

• Evolution Series represents a breakthrough in

microwave radio technology. It is based on one
hardware platform that provides numerous
benefits to both our customers and Nera
– Effortless scalability according to the user’s
needs
• … in terms of increased capacity needs
• … in terms of protocols such as
migrating between PDH, SDH and IP
– Lower investment and operational costs
• One common hardware platform
• Increased reliability
• Fully integrated X-connect
– Easy to use and monitor
• A new network management system
that allows for automatic network
discovery and configuration, fault
management trouble ticketing and
performance management
Nera Networks provides a complete portfolio of
network services and products

Competence and services Products in addition to Evolution

• InterLink offers a versatile SDH radio

• Design and
Interlink solution for Long Haul network
planning
environments.

• The CityLink series of SDH/SONET and

• Manufacturing and
Citylink Ethernet microwave radio products for
assembly

+
Access networks

Wilink • The Nera WiLink family provides point-to-

• Installation and
multipoint wireless access solutions for
handover (Wimax) metropolitan area networks.

Compactlink/ • Cost-effective deployment of low and

• Training medium capacity transmission networking
Flexlink (PDH).

• After sales service • Examples are mux, power, tower,

3rd party products
and maintenance shelters, IT systems etc.
Based on some of the key market trends, Nera Networks
seeks to further improve its market segment orientation
Current market trends
• Mobile usage is increasing and moving from
voice only to multimedia and mobile TV
• TV is becoming digital
• Triple play services are emerging (internet,
voice and TV)
• Networks are migrating to IP
• Communications, media and consumer
services are converging
• As a result, market growth areas are:
– Mobile internet (2.5 - 3G)
– Broadband access
– License-exempt hot-spots
– Convergence and wireless IP
Nera Networks therefore seeks to:
• Continuously improve our solution offerings for the
various market segments
– Mobile, Fixed Line Carriers, Broadcast,
ISP & Enterprise, Governments, Defence,
Offshore/Utilities
• Ensure that we have a strong market &
commercial understanding within these major
segments
• Invest in a strong local sales & support presence
within our key markets and by maintaining high
levels of expertise & technological innovation
within Nera’s “core” R&D, System Design and
Product Management.
• Provide the best after sales customer service in
the business
High level organizational chart for Nera Networks

Nera Networks AS
Dr. Øyvind Isaksen

Staff Finance
Gro Hatleskog Erik Børsheim

Business Development Technology and Products Sales Americas Operations

John Knudsen George Hijpieris Billy Cain Marianne Sandal

Sales Europe
Jo Egil F. Sandnes

Sales Middle East

Les Humphreys

Sales Africa
Odd Kåre Fossmo
For more information, please visit our web site:
www.neraworld.com
Content

• About Nera Networks

• Appendix
• References and cases
Colombia and Morocco
Colombia
• Interconnection of 11 major cities, 15 operators in more than 40 stations
• SDH & PDH Radio Equipment
– Backbone SDH (STM-1) 5+1, 4+1, 2+1 and 1+1 radio hops configurations
– Access SDH & PDH 16x2 Mb/s
• Fiber Optic Equipment
– Backbone STM-16
– Access STM-1 & PDH 16x2 Mb/s
• Synchronization & TMN Systems
• 20 sites acquired and developed (civil works, equipment and watchman shelters, towers, fences)

Morocco
• Network: GSM Trunk
• MSC Interconnect
• Contract: Meditel/Ericsson
• Scope
– Turn key
– 100 hops SDH Radio
– 3+1/6+1 CCDP
Broadcast and Turn key solutions
to Cairns

ntl - Australia
• Network: Broadcast
• Distribution & Carrier services
• Contract: NTLA/ECI
• Value : 18 MUSD
• Scope (Phase I)
• Design/Survey
• 1100 Tx/Rx SDH Radio Network
Phase I
Phase II
Phase III

Turn key solutions

• Scope of work
• Site Survey, Design, Engineering and Manufacturing
• Importation, Custom Clearance and Transport
• Installation & Commissioning
• Land Acquisition and Civil Infrastructure
• Licenses & Permits (construction, environmental, frequencies)
• Operation & Maintenance for 1 year