1 © 2009 Redline Communications Inc. Use of WiMAX To Enable Intelligent Grid Networks Kevin F. R. Suitor VP, Corporate Marketing

1© 2009 Redline Communications Inc.

www.redlinecommunications.com

Use of WiMAX To Enable Intelligent Grid Networks

Kevin F. R. SuitorVP, Corporate Marketing

Redline Communications Inc.

Telephone: (905) 948-2299

[email protected]



Legal Disclaimer

This documentation is a presentation of general background information about Redline Communications Group Inc.’s (“Redline”) business and activities current as of the date of this presentation, unless otherwise indicated. It is information in a summary form and does not purport to be complete.

Certain statements in this presentation may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language which may constitute forward-looking statements or information under applicable securities legislation. These statements are based on Redline’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Redline operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different.

Further, actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following (i) risks and uncertainties relating to Redline’s business including: significant competition, competitive pricing practice, cautious capital spending by customers, industry consolidation, rapidly changing technologies, evolving industry standards, frequent new product introductions and short product life cycles, and other trends and industry characteristics affecting the telecommunications industry; any material adverse affects on Redline’s performance if its expectations regarding market demand for particular products prove to be wrong; any negative developments associated with Redline’s suppliers and contract manufacturing agreements including our reliance on certain suppliers for key components; potential penalties, damages or cancelled customer contracts from failure to meet delivery and installation deadlines and any defects or errors in Redline’s current or planned products; fluctuations in foreign currency exchange rates; potential higher operational and financial risks associated with Redline’s efforts to expand internationally; a failure to protect Redline’s intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the wireless industry or other aspects of the industry; any failure to successfully operate or integrate strategic acquisitions, or failure to consummate or succeed with strategic alliances; Redline’s potential inability to attract or retain the personnel necessary to achieve its business objectives or to maintain an effective risk management strategy; (ii) risks and uncertainties relating to Redline’s liquidity, financing arrangements and capital including: any inability of Redline to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; or any negative impact on Redline’s ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and any declines in the market price of Redline’s publicly traded securities. Unless otherwise required by applicable securities laws, Redline disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

© 2009 Redline Communications Inc.






Redline’s Vision, Mission and Strategy

Drive Smart Grid Revolution through Broadband Wireless Access Technologies – WiMAX & Proprietary

Become the BWA vendor of choice for Smart Grid

Build partnerships to provide end-to-end solution Develop application specific technology solutions

leveraging COTS for ‘best-in-class’ BWA solutions for Smart Grid

Deliver ‘best-in-class’ end-to-end solutions with our integration partners

Vision

Mission

Strategy









“The nicest thing about standards is that there are so many of them to choose from.”

Ken Olsen, founder of Digital Equipment Corporation, 1977

US computer engineer & industrialist



The Power Grid (The Simplistic View)

Generation

Transmission Sub-Station

Distribution(Step Down) Sub-Station

Residential

High Voltage Lines

Medium & Low Voltage Lines



A Reference Architecture for Smart Grids



Last Mile Options for Smart Grid

Meter Collection

Point

Meter Collection

Point

Commercial Services

Wi-Fi Mesh

WiMAX

PTP Backhaul

Utility Control Center

Carrier Central Office

Broadband Connection

Commercial Wireless

Smart Meters and Aggregation Backhaul & Transport Control & Management



Network Options for Smart Grid Last Mile

Wireless Option Application Pro ConRF Mesh: Bit rate up to 1 Mbps, variable range, variable frequency

Smart meters, distribution automation

Able to be customized for specific deployments, self-organizing, self-healing

Proprietary, lack economies of scale, equipment can be expensive

Cellular: Bit rate at 20-800 kbps, 1-2 mile typical range, frequency 700 MHz to 2.1 GHz

Smart meters (AMI), mobile work force management

Able to leverage existing networks, low upfront capital investment, short time-to-market, low module cost

Recurring cost per megabyte, lack of direct utility control over network

Broadband Over Power Lines (BPL): Bit rate at 256 kbps to 10 Mbps, variable range, frequency at 1.6 to 80 MHz electric carrier

Substations, smart meters, monitoring/ control at customer premise, distribution automation

Robust capabilities, integrated communications throughout grid and home area network environments, low recurring costs

High capital costs, expensive chips and equipment, not widely adopted

WiMAX: Bit rate up to 3 Mbps per MHz, range of 1-2 miles, frequency 1.8 GHz, 2.3-3.5 GHz

Smart meters, mobile work force management, distribution automation

High bandwidth capabilities, low latency

Not widely deployed, not yet proven for smart grid deployments, high equipment cost

Metro Wi-Fi: Bit rate 1-5 Mbps, typical range up to ½ mile, frequency between 2.4 GHz and 5.8 GHz

Smart meters, mobile work force management, distribution automation

Low-cost equipment, mesh topology is well-suited for smart grid needs, low latency

Not widely deployed, not yet proven for smart grid deployments

Source: Pike Research analyst Clint Wheelock

Customer NeedCustomer Weighting

WiMAXWi-FiMesh

ProprietaryRF Mesh

BPLCommercial

Services

Performance

Supplier Choice

Reliability

Reusability

Compatibility

Features

System Options

Usability

Security

Price

Total Weighted Score















Using WiMAX to Connect the Smart Grid

Residential CustomersAMR/AMI, home displays, solar panels, home appliances

EmergenciesLaptops, handheld devices, emergency vehicles,

ad-hoc links to business customers

SU

OperationsCenterSU

Mobile devices for emergency workers

Cell on wheels (COW)

Disaster recoveryvehicles

SU

Business CustomersMeters, remote sensors, cameras

SUAMI

Aggregator(PLC)

Transmission and distribution infrastructureSurveillance, monitoring and remote control devices

Remote workforceLaptops, handheld devices, vehicles

Installation, maintenance vehicles

SU

Mobile workforceindividual devices

Transmissionsubstation SU

Solar powergeneration SU

Windturbines SU

Distributionsubstation SU

Business site

SU

Business site

SU

Business site

SU

PLC

Wireless link (e.g. 900MHz)

Microwave wireless

backhaul, fiber

In-home network

Zigbee, Wi-Fi

AMI aggregator

Residential customers

AMR (Automatic Meter ) / AMI (Automatic Meter Infrastructure)

Real-time time-of-day pricing using Demand-Side Management (DSM)

Home displays

In-home energy conservation management

Smart appliances

Fault and outage detection and management

Solar panels management

Optional add-ons:

Home security

Broadband services

Business customers

AMR/AMI, industrial metering

Remote surveillance and monitoring

Remote load shifting

Real-time time-of-day pricing using DSM


Generation and distribution

Supervisory Control And Data Acquisition (SCADA)

Distributed Control Systems (DCS)


Remote surveillance and monitoring

Asset tracking

Remote control

Energy Management Systems (EMSs) with grid optimization applications (self-healing, self-restoration)

Mobile assets andremote workforce

Fleet telematics and Automatic Vehicle Location (AVL), with Location-Based Services (LBS) supported by Global Positioning System (GPS)

Broadband connectivity to in-vehicle modules, laptops, and handheld devices to support and monitor the remote workforce. Applications include mobile dispatching, reporting, remote video or VoIP consultations, data sharing within the utility’s Virtual Private Network (VPN), and Geographic Information System (GIS) applications

Emergencies

Broadband connectivity to affected area during disaster recovery or in response to faults. Cell On Wheels (COW) connects staff, vehicles, and, in some cases, selected customers

Coordination of emergency response, data sharing, remote consultation with off-site staff, and communication and coordination with safety agencies





What Has Redline Changed In COTS To Meet The Utility Market Needs?

1. A Smart Grid network is fundamentally different than a Service Provider access network in that the bulk of traffic flows primarily from the edge of the network to the core of the network.

Service provider networks are built with a “downlink bias” where the majority of traffic flows from the core to the edge. In a Smart Grid, the traffic is ‘uplink biased’ with a large number of distributed Smart Meters, IEDs, Video Cameras etc

delivering information from the sensors and machines at the edge of the network up to data centers in the core of the network.

Redline’s design engineers have modified the core signal processing in both the base station and CPE to allow the uplink / downlink ratio bias desired by each utility’s network design architect.

2. Power Engineers have a requirement for sub-cycle latency in the two-way communications network. Typical multipoint wireless broadband systems whether RF/WiFi mesh or cellular based have one way latency in the 35 –

150 millisecond range. Redline’s engineers have modified the core signal processing within the base station and CPE terminals to reduce the

one-way latency to under 20 milliseconds as required by the utility.

3. Long range connections are required for both smart meter collection and Teleprotection. RedMAX 4C can be used effectively for backhauling rural smart meter and sub-station connections, enabling a more

cost-effective deployment. Redline’s products have the ability to support a longer range of up to 25 km versus the 9 – 10 km supported by the

WiMAX Forum profile enabled by modifications to the 802.16e-2005 MAC in the BTS & CPE.

4. Smart Grid networks use IEC based protocols that are not necessarily IP based, layer 2 Ethernet transport is required.

Capability of forwarding the traffic at layer 2 rather than sending information to a centralized ASN-GW may also contribute to the reduction in end-to-end latency.

5. RedMAX 4C Remote Radio Head (RRH) implements Digital Pre-Distortion (DPD). Advanced RF capability allows higher output power with reduced power consumption with the added benefit of reducing

both adjacent and alternate channel interference enabling better spectrum utilization and tighter frequency reuse.



What Are The Unique Attributes Of A Redline Solution?

Redline provides highly differentiated product families for the utility market: RedMAX and RedCONNEX/RedACCESS AN-80i with RMS Element Management. Each product set is optimized for a particular band class and the application set and

use cases that characterize this band class.

RedMAX EX-200 is Redline’s 802.16e-2005 based product selected by Hydro One for use in its Smart Zone living lab.

Redline’s product set has been optimized for use by utility customers based upon the market requirements for both transmission and distribution applications.

• 1.8 GHz• 2.5 GHz• 3.3 – 3.8 GHz• 3.65 GHz• 4.9 GHz• 5.4 GHz• 5.8 GHz

• OFDM / OFDMA• MIMO• Both IP & Ethernet

Architecture• Wide Channel Bandwidth• Spectrum Options



Sample Utility Market Customers using Redline’s Broadband Wireless Platforms

Yunnan Provincial Power Group Corporation

http://www.hydroone.com/en/



The Ideal Broadband Wireless Platform For Utilities

Redline has core technology DNA and proven platform implementations of this DNA – AN-80i, RedMAX, RedMAX 4C

Engineering team capable of development versus integration

Proven expertise in Broadband Wireless with utility reference customers in both emerging and developed markets


www.redlinecommunications.comUse of WiMAX To Enable Intelligent Grid Networks

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1 © 2009 Redline Communications Inc. Use of WiMAX To Enable Intelligent Grid Networks Kevin F. R. Suitor VP, Corporate Marketing