Our Company
We provide next generation wireless broadband services that enable fast, simple and reliable communications, anytime and anywhere within our coverage area. Our unique, advanced wireless network not only creates a new communications path into the home or office, but also facilitates access to information, interactive media content, applications and communications services away from the home or office.
Our NextNet network combines some of the best features of cellular, cable modem, digital subscriber line (DSL), and wireless fidelity (WiFi) networks, without some of the inherent limitations associated with these legacy systems. While cellular, cable and telephony networks were originally built to facilitate voice or video services, ours is the first widely deployed network that was designed and built, from inception, to deliver a full range of broadband content and applications. We have designed our services to be:

• Portable. We offer the ability to access our network or other NextNet networks from anywhere within their coverage areas, without being restricted to a specific location.
• Simple. Our services are easy to install. After connecting our modem to a computer and a power source, our wireless broadband service is immediately available and requires no software installation.
• Fast. We offer speeds that typically exceed legacy cellular networks and are competitive with fixed broadband offerings.
• A Good Value. We price our services competitively because our costs to build and operate our network are significantly lower than the networks operated by many of our competitors.

With the advent of entertainment and content delivery over the Internet, Voice over Internet Protocol (VoIP), and applications such as online social networking, the Internet is changing social behavior. People are demanding fast broadband connectivity on an increasingly mobile basis. Our services meet this demand, which accounts for our rapid subscriber growth rates. We estimate that our subscriber penetration rate for our U.S. markets for covered households, will reach at least 5 % in the first six months of operation in each market.

We were founded by cable and telecommunications pioneer Bruce Merrill in January of 2000 and we currently serve over 10,000 customers. We deploy our broadband network using licensed radio frequencies, or spectrum. We are licensed to use this spectrum in six states where we can offer our services to approximately two million potential users. Using licensed spectrum enables us to minimize interference that frequently occurs on other wireless networks.

Our advanced next-generation wireless broadband network relies on non-line-of-sight (NLOS) technologies, which provide a level of performance comparable to that expected from the evolving Worldwide Interoperability of Microwave Access (WiMAX) standards. NextNet designs, develops and sells modems, base stations and other equipment that enable deployment of NLOS wireless broadband connectivity. NextNet is the most widely deployed provider of NLOS, plug-and-play broadband access systems, with equipment in use in at least thirty different countries across Africa, Asia, Europe and the Americas. In March 2006, BCE Inc., the parent company of Bell Canada, and Rogers Communications, two of the largest wireline, cable and wireless operators in Canada, launched a nationwide next generation wireless broadband network using NextNet technology.

As compared to cellular, cable and DSL networks that generally rely on infrastructure originally designed for non-broadband purposes, our network was designed specifically to support portable and mobile wireless broadband services. NextNet has designed an Internet Protocol (IP)-based, Ethernet architecture for our network that has significant economic and technical advantages, since it simplifies deployment, operation, maintenance and use of our network in addition to supporting a broad range of potential premium services.

We believe our success is in part a result of the substantial operating experience of our senior management team, led by our Chairman and Chief Executive Officer, Mr. Merrill. The members of this team have extensive experience in the communications industry.

Competitive Strengths
The following competitive strengths enable us to meet the demand for simple, reliable and portable wireless broadband connectivity:

• Differentiated Services. We believe our service is unique because of our combination of portability, simplicity and speed at competitive prices. This combination of factors differentiates our subscribers’ experience when compared to broadband services provided by DSL, cable modem or cellular third-generation (3G) networks.
• Strong Spectrum Position. We use licensed spectrum, which eliminates radio frequency interference that hinders competitors using non-licensed spectrum, such as WiFi network operators.
• Advanced, Scalable Technology. We use NextNet technology because we believe they can refine their product development roadmap to meet our and our subscribers’ needs. Their NLOS, IP-based Ethernet architecture simplifies both network deployment and customer use, while supporting a broad range of potential premium services.
• Efficient Economic Model. Our individual market economic model is characterized by low fixed capital and operating expenditures, relative to other wireless and wireline broadband service providers. Therefore, our individual market model is highly scalable and replicable across our markets. As our technological capabilities and customer demand evolve, we will be uniquely positioned to offer premium products and services.