Becoming Australia’s Premier Wi-Fi Company Justin Milne PieNetworks is making rapid progress as it transitions to become a company with multiple sources of revenue and a prime position in Australian Wi-Fi. The market for Wi-Fi networks and related products is exploding worldwide, driven by a number of factors which include the growing congestion of 3G networks and the fact that all smartphones and tablets "demand" the use of Wi-Fi. Virtually every one of these mobile Internet connections will be seeking Wi-Fi, and their owners will prefer the speed and inexpensiveness of a Wi-Fi connection compared to 3G or 4G. In Asia Pacific, smartphones now outnumber laptop connections to Wi-Fi hotspots. Indeed some applications such as iCloud from Apple only work over Wi-Fi. As tablets and smartphones proliferate traditional wired Internet is being overtaken. For example, hotels today offer Ethernet connectivity for laptops belonging to their travelling customers but increasingly those travellers carry iPads and smartphones instead of laptops. These devices do not have an Ethernet port and only work on 3G (at relatively slow speeds) or on Wi-Fi at speeds of up to 100 MBPS. PIE has identified a number of key market segments where our carrier grade, fast and reliable Wi-Fi offering will be extremely relevant. They include: Retail - Large retailers can provide Wi-Fi free to their in-store customers as a way of encouraging those customers to download their shopping apps, which of course remain with the customer once she has left the store, enabling the retailer to maintain an online relationship with the customer. This online relationship will allow the retailer to offer the customer special offers, loyalty points, money can't buy experiences etc. The retailer can use his “bricks and mortar” presence and brand to create the sought after and elusive online relationship. Enterprise - All of Australia's office workers sit at work stations which have an Ethernet connection. The company provides the employees with access to the Internet and surrounds that access with policies, filters and security which protect both the company and the employee. But things have changed very fast and many of those employees have smart phones and tablets which are also used throughout the day to connect to the Net. Unfortunately, not only is the company often paying for that additional expensive access but it is occurring without any protection for the company or the employee. pieWiFi can be installed quickly and inexpensively to provide high speed access for these devices, plus PIE can provide the company with a wide range of filters and real time reports to allow the company to regain control. Health - pieWiFi offers doctors and nurses the capacity to use mobile devices to record patient data and to retrieve patient information whilst on the move from bed to bed. It also offers patients the opportunity to access the Internet for communication with their friends and family and to access movies and entertainment whilst in bed during the day. PieNetworks Ltd. ABN: 27 078 661 444 ASX Code: PIE Suite 504, 32 York Street, Sydney NSW 2000, tel: (02) 9290 1422 www.pienetworks.com Large outdoor venues – Sport stadiums and venues are increasingly looking to Wi-Fi to provide their patrons with access to the Net because, as our recent experience at the Melbourne Cup demonstrated, when tens of thousands of people in the same place try to use 3G to access the Net at the same time, it just doesn't work but pieWiFi works brilliantly, streaming video and accessing apps at high speed. Education - How far away is the day when students will use a cheap and light tablet at their desk instead of lugging around kilos of books? Education apps on the iPad are not only fun to use, they provide a demonstrably superior educational outcome and superior monitoring for teachers. These tablets in the school room of the near future will need Wi-Fi to connect because they don't have Ethernet. Mining - pieWiFi can be teamed with satellite connectivity to the Net to provide a private high speed and reliable network around a mining camp quickly and inexpensively. All of the offices can be connected like any office in the city, and the men and women in the accommodation blocks can have high speed and cheap internet to Skype their loved ones at home, send mail, play games, and watch movies from service providers like Quickflix. At PIE we think there is an inevitability about the world moving rapidly to Wi-Fi for many applications. The service we have offers a number of advantages. It is cheap to install and maintain. It provides carrier grade, fast and reliable connectivity. It does that by utilizing modern technologies which allocate the available bandwidth instantly and "fairly" across the requesting users. Old-fashioned Wi-Fi statically allocates one channel per user per session. pieWiFi uses advanced technology which selects the least busy channel but then flips the user from channel to channel as the number of users in range of the access point change and the available bandwidth changes. pieWiFi also has an intelligent aerial system which focuses the "beam" just where the users are, instead of spraying the radio signal in 360 degrees. All this smart technology ensures the user experience is always optimized. PIE is in conversation with a number of possible keystone customers of our new service. These include: ? A national hotel chain which is interested in both our web phones and Wi-Fi offering. ? A national retail chain. ? A number of major law firms and investment banks. ? A mining camp operator ? A cinema chain ? A number of sporting organizations ? A large financial institution The PIE team is working extremely hard to add capability to our business and to rapidly become Australia's premier Wi-Fi company.
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