August 2012 Turnkey Mobile Broadband on Demand - Retail © 2012 Sprint. This information is subject to Sprint policies regarding use and is the property

August 2012

Turnkey Mobile Broadband on Demand - Retail

© 2012 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or it's relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.


2Customers Want to Stay Connected Everywhere

Social networking, online gaming

Mobile e-commerce

Real-time reference and research

News, audio, and video

Americans' love for mobile products and services continues to grow.


3

3

Data Consumption and Enabled Devices are Growing at Impressive Rates

Sources: Cisco, Chetan Sharma Consulting

Higher adoption of mobile applications among consumers

Mobile Data Traffic Growth (US, in terabytes)

5 mil

20 mil

40 mil

10 mil

30 mil

2007 20142008 2009 2010 2011 2012 2013

Growing Smartphone adoption

Building mobility into every product, service, and process by businesses

Deployment of high speed 4G networks

Greater use of embedded laptops and data cards

Wireless network traffic grew by 123% in 2011 while number of wireless enabled-tablets, laptops and modems grew by 49% (CTIA).


4Sprint Turnkey Data Solution

Turnkey Solution

Mobile Broadband on Demand

Self-Service Portal

Real-Time Metering &

Billing

Data Meter

Policy Mgmt

Customer Care

Reporting

Partner Admin Portal

All the components needed to get to market quickly with a branded Broadband offering

• Promotion code generation• Device history• Subscriber management

• Tier 2 Provided by Sprint

• Partner can whitelist their Retail site

• Optional graphical user interface can be downloaded for usage monitoring & low usage alerts

• Manages, authorizes, and monitors services

• Redirects to the self-service portal when time/usage-based services reach their thresholds

• Manages payment services

• Partner-branded website for end-users to select pricing plans

• Weekly and monthly reports based on devices, plans, usage and revenue


5Self-Service Portal for Retail Segment

Purchase Plan Price Data Exp.

Day Pass

$12.95 200MB 24hrs

Weekend Pass

$24.95 350MB 3 days

Week Pass

$49.95 700MB 7 days

Select

Select

Select

PlansPlease select from the plans below or input your promotional code below

Enter your promotional code for a free plan and select Redeem button. Redeem

LoginPlease enter your user name and password to log in now.

User Name (email address)

Password (6-10 characters)

Forgot Password

PaymentAmount due excluding taxes: $<Amountdue>

You have a balance on your account of $<Balance>

Please select a payment method.

Card on file xxxx-xxxx-1111

New credit/debit card

PIN Code

Plan Price Data Exp.

Day Pass

$12.95 200MB 24hrs

ConfirmationCongratulations! You have successfully set up your mobile broadband service. <Your card <last4> was successfully charged $<total> including taxes, authorization <code>.<You will receive <xxxx> points toward our rewards program.>

Expires: <Date><Time>

Partner Branded Solution – Logo, text, color themes, font are configurable

Plans – Ability to offer 3 different data plans

Promotional Code –Supports promotional code(s) for free plan

Login– Supports establishing new account (name, email, security Q&A, create password, loyalty number) or login for existing users (for top up)

Partner Loyalty Program Tie-In - Displays and earns Partner program loyalty points for data plan purchases

Payment – Allows diverse payment methods including credit/debit, balance, PIN code and more

Confirmation – Provides subscriber with data plan purchase, expiration date and final charges

Submit

1. Purchase Plan

2. Login as New or Existing User

3. Pay (or Bypass with Promo Code)

4. Receive Confirmation

Submit New Customer Finish


6Partner Administration Portal for Retail Segment

Device History – See detailed information by Device ID, i.e. plan purchased, credit card successfully charged, promo code generated or used

Device ID (MEID or ESN)

Change Device Status

Notes

Promotion Management

Promotion Code Management

Select plan to associate for promotion code Create Code

Plan Price Data

Day Pass

$12.95 200MB

Weekend Pass

$24.95 350MB

Week Pass

$49.95 700MB

Select

Select

Select

Enter customer email address to send promotion code (optional) Submit

Device ID (MEID or ESN)

Change Device Status

Notes

Device History

Device History

Channel: <Partner> Device: <MiFi 2200>

Date & Time

Event Code

Event Details

12/05/07 18:28:56

11-15-0134

App launch called successfully

12/05/07 18:29:32

30-11-0022

Device service purchased product ID (1)

12/05/07 18:31:32

30-10-0055

Billing service successfully charged credit card (visa ********1111) in amount (43)

Device ID Device Status: IN USE

AZETVR

Promo Code

Promotion Code Management – Provides Partner the ability to generate a promotional code associated with any plan offering; and provides mechanism to send to customer – print, email


7Product Roadmap

Loyalty Program Integration

Capture and deliver loyalty information to Partner’s Loyalty Program System

End users can earn loyalty points and/or redeem loyalty points for services

System Integration

Provide standards-based API with which Partner can directly integrate its CRM system, if desired

Advanced Policy Controls

Partner can offer free traffic to designated sites regardless of data plan, data usage or expiration

Partner can offer sponsored browsing which allows access content/sites without impacting data usage (e.g. 1 GB of USA Today with plan purchase)

Partner can offer a limited content set plan (purchase a “social networking” plan which only permits access to Face Book, Twitter, Yahoo Messenger)

Value Added Services

Subscriber portal can aggregate and display content dynamically from the Partner Content Portal including product offers, couponing, promotions. The data meter can also display this information subject to size limitations.


8Device Fulfillment and Management

Partner can work directly through their Sprint Preferred Fulfillment Vendor (FV) to obtain the devices

WSA AeroVoice

FVs will manage the following (pricing will be decided between Partner and Fulfillment Vendor)

Bar code the device Permanently display the device name and password on the device Custom packaging (hard case, car charger, instructions, etc.) Ensure accessories have been lab tested and meet industry/OEM/Sprint specifications Ability to pad print logos Ability to ship devices to multiple locations Ability to easily order replacement devices, accessories, packaging, user guides by location Device activation and deactivation Quality check / testing prior to shipping Manage returns and warranty


9Pricing

1. Sprint per MB Charge - $0.025 - $0.031 (MB Charge varies based on Care Option Selected)1. Sprint per MB Charge with Sprint Care - $0.031 per MB 2. Sprint per MB Charge with Partner Care - $0.027 per MB3. Sprint per MB Charge with Partner Only – $0.025 per MB

2. Monthly Recurring Charge per device - $2.00

3. Per Rental Period Fee ** - $.40 (per purchased session, per device, and not to exceed 7 days). 4. In-language portal - $4,000 per language (one time fee)

5. Initial Set-Up Costs for Mobile Hotspot Rental - $25,000• Includes account set-up, realm configuration, billing setup, subscriber database, business

rules and pricing plans, website portal branding, development and testing. • Partner can be commercially deployed in 4-6 weeks

6. Other customizable options can be quoted

** Rental period is a purchased session which can be either a time period such as a day, or exceeding the usage cap in a day. Another way to think about this is a fee “per billable event”.


10Care Pricing Options

•Sprint Care - Offers Partners relief by being the front line care representative. Sprint would support rental customers by: handling care calls, validating device within Sprint systems, checking coverage, researching and confirming outage reports, providing technical assistance, and validating device status thru Telespree. Any monetary issues, disputes, or lost/damaged device calls would be transferred to the Partner for resolution.

•Partner Care - Places the Partner in the position to receive calls for care. The Partner would support rental customers by: handling care calls, checking coverage maps, providing basic technical assistance, validating device status thru Telespree and monetary issues, disputes, or lost/damaged devices. Advanced technical issues would be transferred to Sprint care team.

•Partner Only - Places all aspects of care with the Partner. Any technical issues are referred to Sprint by creating a CTMS ticket and following up with the assigned ASM.


11Pricing Tool

The Pricing Tool can be used by the Partner to determine monthly revenue by location and payback on the device costs by inputting different assumptions and estimating their retail price.

40010 0.14

200 1.00 0.029$

0.40$ 2.00$ 0.33$

1 6 20% Utilization Factor

150$

Retail Price* Maximum Network Cost**

Session Management

CostTotal Session

CostTotal Monthly

Revenue

Session Margin per

deviceMonthly Margin per Device***

Monthly Margin per

Location

Total Monthly Margin

Payback Months

Payback Sessions

10.00$ 5.80$ 0.40$ 6.53$ 240,000$ 3.47$ 20.80$ 208.00$ 83,200.00$ 7.2 43.3 11.00$ 5.80$ 0.40$ 6.53$ 264,000$ 4.47$ 26.80$ 268.00$ 107,200.00$ 5.6 33.6 12.00$ 5.80$ 0.40$ 6.53$ 288,000$ 5.47$ 32.80$ 328.00$ 131,200.00$ 4.6 27.4 13.00$ 5.80$ 0.40$ 6.53$ 312,000$ 6.47$ 38.80$ 388.00$ 155,200.00$ 3.9 23.2 14.00$ 5.80$ 0.40$ 6.53$ 336,000$ 7.47$ 44.80$ 448.00$ 179,200.00$ 3.3 20.1 15.00$ 5.80$ 0.40$ 6.53$ 360,000$ 8.47$ 50.80$ 508.00$ 203,200.00$ 3.0 17.7 16.00$ 5.80$ 0.40$ 6.53$ 384,000$ 9.47$ 56.80$ 568.00$ 227,200.00$ 2.6 15.8 17.00$ 5.80$ 0.40$ 6.53$ 408,000$ 10.47$ 62.80$ 628.00$ 251,200.00$ 2.4 14.3 18.00$ 5.80$ 0.40$ 6.53$ 432,000$ 11.47$ 68.80$ 688.00$ 275,200.00$ 2.2 13.1 19.00$ 5.80$ 0.40$ 6.53$ 456,000$ 12.47$ 74.80$ 748.00$ 299,200.00$ 2.0 12.0 20.00$ 5.80$ 0.40$ 6.53$ 480,000$ 13.47$ 80.80$ 808.00$ 323,200.00$ 1.9 11.1

*Price is determined by Sprint's MVNO Partner.** Assumes full utilization of allocated Megs. (Worst Case as financial will be better for MVNO Parner as breakage isn't accounted for in this analysis)

Mobile Hotspot Assumptions

Session Duration (days)

Session Costs (Maximum 1 Week)MRC per Device

Cost of DeviceAssumed Sessions Sold per Device per Month:

Megs Included:Total Number of Devices per location:

Cost per Meg

Number of Locations

Assumed MRC Charge per Session


12Getting Started

• Master services agreement between Sprint and Wireless Partner

• Agreement with Sprint-approved device Fulfillment Vendor

• Partner portal configuration and deployment

• Partner purchase devices and accessories

• End to end testing

• Partner employee training

• Service merchandising collateral


13Roles / Responsibilities

Sprint Provides Partner Provides

• Network usage and prepaid rating

• Branded portal setup

• Administration portal

• Customer Care• Determined by Care option

• Telecom tax calculation

• Markets to end users

• Trains sales force

• Customer Care• Determined by Care Option

• Telecom tax remittance

Partner works with Sprint-approved Fulfillment Vendor to source devices


14Tax Remittance

Sprint’s vendor will provide Partner monthly reports stating Partner’s telecom tax obligations

Partner will be responsible for remitting telecom taxes

Helpful vendors to assist in this task include Atlantax, Thomson Reuters KPMG The Compliance Group

http://www.atlantax.com/

http://thomsonreuters.com/products_services/taxacct/

http://www.kpmg.com/US/en/WhatWeDo/Tax/tax-transformation-outsourcing/Pages/Default.aspx

http://commpliancegroup.com/

http://commpliancegroup.com/


15Timeline

Week 1 2 3 4 5 6 7 8 9 10

Systems

Processes

Phase II Enhance-ments

• Admin Portal• End User Portal• Pricing Plan Types

• Sprint Contract• Fulfillment Vendor Arrangements• Stock New Devices• Implement New Procedures• Print Marketing Collateral

• Train store personnel on new product• Distribute Marketing

Collateral

Phase 1 Launch 3Q12

Phase 2 Launch 4Q12

• Loyalty Program Integration• System Integration• Advanced Policy Controls• Value Added Services


16

Thank You!

Documents

August 2012 Turnkey Mobile Broadband on Demand - Retail © 2012 Sprint. This information is subject to Sprint policies regarding use and is the property