Presentation on xMax Cognitive Radio for rural telco providers given at NTCA Wireless Symposium, San Antonio, TX January 2013

1. xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2012, All Rights Reserved.
www.xgtechnology.com

2. About xG Technology
• Leading provider of cognitive wireless technology –
(enabling more efficient use of scarce
expensive wireless spectrum )
• $14.5mm in orders for xMax systems and services
• Extensive patent portfolio: (over 60 US and 140
international patents and patent filings, covering
a wide range of IP-enabled communications)
• Publicly traded company, listed on the AIM exchange
• Draft Jobs Act S1 Filed
•MBTH is a major shareholder
xG® is a registered trademark of xG Technology, Inc. Copyright 2012, All Rights Reserved.
www.xgtechnology.com 2

3. Today’s Challenges
Smartphones
Growth
Increasing Growing
competition Broadband
Demand
Independent
Cord-cutting
+ need for
Local Regulatory/
USF /2016
local mobility Exchange reqs.
Carriers
Circuit Cost of/ Lack
switched to of spectrum
all-IP
Cost
Recovery
xG® is a registered trademark of xG Technology, Inc. Copyright 2012, All Rights Reserved.
www.xgtechnology.com 3

4. xG Technology: The Key to
Staying Competitive
“Perfect Storm” of Events Creates Opportunities for Operators
► Market Demand and Conditions
– Mobile data traffic to increase 18-fold in next 5 years*
– Demand will outstrip network capacity as soon as 2013 *
► Technical Developments
– Advanced computer processing and chip designs
– Revolutionary wireless system design
* SOURCE: CISCO FORECAST
xG® is a registered trademark of xG Technology, Inc. Copyright 2012, All Rights Reserved.
www.xgtechnology.com 4

5. xG Technology: The Key to
Staying Competitive
“Perfect Storm” of Events Creates Opportunities for Operators (cont.)
► Political/Regulatory Events
– 2010: National Broadband Plan
– 2011: White Spaces Ruling
– 2012: PCAST Spectrum Sharing Report
– 2012: Emergency Communications Executive Order
– 2012 FCC/USF 6/1 mbps minimum in 2015 for cost recovery
* SOURCE: CISCO FORECAST
xG® is a registered trademark of xG Technology, Inc. Copyright 2012, All Rights Reserved.
www.xgtechnology.com 5

6. Key Features of Leading Wireless
Broadband Solutions
► Carrier-grade fixed/mobile VoIP, SMS and Broadband on one network
► All-Internet Protocol (IP) system – supports any IP service (e.g., Skype)
► Frequency agnostic operation (900MHz, 700MHz, White Spaces)
► Compact access points
► Support for any Wi-Fi-equipped device
xG® is a registered trademark of xG Technology, Inc. Copyright 2012, All Rights Reserved.
www.xgtechnology.com 6

7. Leading Wireless Broadband Solutions
Offer:
► No spectrum license fees, low network engineering and management
costs
► No RF engineering (meets Part 15 requirements)
► Self-organizing networks
► Rapidly deployable – leverages existing telco, Internet and community
infrastructure
► Utilize any SIP-standard soft switch
xG® is a registered trademark of xG Technology, Inc. Copyright 2012, All Rights Reserved.
www.xgtechnology.com 7

8. Cognitive Radio Benefits
► Designed to meet all FCC Part 15 rules
► Able to identify “clean” frequencies, and to quickly tune to those
frequencies
► Interference-free operation
► Can adapt dynamically to maximize throughput (and/or range)
► Compact access points (14 simultaneous calls, 6 Mbps raw data rate)
► Easy to engineer and install
Delivers more bandwidth, to more people, for a lower cost than traditional
wireless or wireline approaches
xG® is a registered trademark of xG Technology, Inc. Copyright 2012, All Rights Reserved.
www.xgtechnology.com 8

9. Example Cognitive Radio Network Diagram
VoIP
“POTS” CORE
calling
SMS service
xMax Cognitive E MSC Any/All
t
Radio Network h Public or
e Private
Wi-Fi r
Networks
n
Network e SMS
t server
Ethernet
xMod is a Small, 4 lb. Access Points xMSC has off the shelf
mobile hotspot provide wireless voice, data, equipment for network
Smartphones, laptops that bridges SMS and video connectivity to management, firewall ,
or any device with WiFi between WiFi mobile and fixed users. They SIP Proxy, and SMS
or Ethernet can connect and the xMax perform wired network to servers. Supports SIP-
to the xMod mobile cognitive radio cognitive network conversion. standard soft switches.
hot spot network APs are Ethernet IP connected.
WiFi Network Cognitive Radio Network (C-RAN) Core Network Internet/Private
tether Networks
xG® is a registered trademark of xG Technology, Inc. Copyright 2012, All Rights Reserved.
www.xgtechnology.com 9

10. Example xMax Deployment
xMax deployed as DSL
loop extension:
Mobility Services not
supported (no xMax in center
of territory)
xG® is a registered trademark of xG Technology, Inc. Copyright 2012, All Rights Reserved.
www.xgtechnology.com 10

11. Example xMax Deployment
xMax deployed for
Mobility Services:
xG® is a registered trademark of xG Technology, Inc. Copyright 2012, All Rights Reserved.
www.xgtechnology.com 11

12. Example xMax Deployment
Competitor’s Territory
xMax services
extended in to
competitor’s territory:
xG® is a registered trademark of xG Technology, Inc. Copyright 2012, All Rights Reserved.
www.xgtechnology.com 12

13. Summary: Benefits to Rural Operators
► Eliminates spectrum cost barriers
► Positions operators to take advantage of the shift of USF from POTS to
broadband
► Cognitive networks are ideal for wireline operators:
– Self-planning, self-organizing, self-optimizing
– 100% wireless - no right of ways, no franchise agreement, high value
– Provides full local mobility option
– Supports regulated and unregulated operations
Proven in Rural, Urban and Military Networks
xG® is a registered trademark of xG Technology, Inc. Copyright 2012, All Rights Reserved.
www.xgtechnology.com 13

14. Thank You
xG Technology
www.xgtechnology.com
xG® is a registered trademark of xG Technology, Inc. Copyright 2012, All Rights Reserved.
www.xgtechnology.com 14