THE RACE IS ON: NETWORK INNOVATION

& THE NEXT WAVE OF MOBILE GROWTH

SP Profitability = Voice Services SP Profitability = IP Data Services

Hard-Wired Internet Mobile Internet

“Cloud…What?” Cloud Hype Giving Way to Reality

Smartphones for a Select Few Smartphones & Tablets Go Mainstream

“IT-Approved” Apps App Explosion

Broadcast to Dedicated Devices Content On Any Device

Passive Online Experience Online Interaction Reshaping Society

(Source: Yankee Group, 2012)

0-2% CAGR Corporate Data (e.g.: VPNs)

Fixed Broadband

New

Services:

~20% CAGR

$2.5 T

$2 T

$1.5 T

$1 T

$.5 T

$0

• Video Streaming

and Video Download

• Digital TV

• CDN Services

• Cloud Services (SaaS, Paas, IaaS)

• Mobile Advertising

• Location-Based Services

• Mobile Broadband

• Mobile Data Services

• Managed Telepresence

• Voice Over IP Traditional Wireline Voice

Mobile Voice

─ 0-2% CAGR

$1.4 T

$1 T

$800 B

$600 B

$200 B

$400 B

$1.2 T

$0

(Source: Stratecast & Juniper Networks, 2012)

Historical

Investment

Mobile

Revenue

Projected

Investment

Smartphones

Tablets

Video

3 INDUSTRY IMPERATIVES TO U N L E A S H M O B I L E G R O W T H I N T H E N E X T D E C A D E

1

INDUSTRY

IMPERATIVE

VIDEO: “CRASH” SCENARIO

2

INDUSTRY

IMPERATIVE

VIDEO: “TRUSTED MOBILITY /

ALWAYS PROTECTED”

3

INDUSTRY

IMPERATIVE

VIDEO: “CROWD CASTING”

VIDEO CLIP: ONLIVE EXPERIENCE

• Massive opportunity for growth

• Enabled by network innovation

• Programmability, Trusted Mobility, Symmetrical Internet