Brian Higgins01/21/10

2

Wireless Growth

500%500%

~90%

100%100%

3

Connected Transition

Internet of PeopleInternet of Things

4

2007 2008 2009

700 MHz C-BlockPurchased

Technology Trials

Path to Innovation

Launch the Network

4G Venture ForumEstablished

LTE Innovation Center Opensfor Business

Verizon Developer Community Announced

Open Development Initiative Launched

5

Network

Radio HW Applications APIs

Open Development

verizonwireless-opendevelopment.com

6

developer.verizon.com

Tutorials

White papers

Device emulators

Usage monitoring tools

SDKs

Code samples

Device specs

On-Device testing

Blogs and forums

App certification

Verizon Developer Community

7

• $1.3B in available funds• Identify and enable wireless innovation

– Devices– Apps– Infrastructure– Services

• Focus is on differentiated start-ups• Better align start-up lifecycle with carrier adoption timelines

4G Funding Mechanisms

4gvf.com

8

LTE Innovation Center(Waltham, MA)

Concept Validation

Design

Development

Unlock New Categoriesof Devices

Portal

Lab

Experience Ctr

LTE Innovation Center

lte.vzw.com

9

4G Performance Gains

150 ms

30 ms

Open Standards, Economies of Scale

0

2

4

6

8

10

12

14 Uplink (Mbps)Downlink (Mbps)

EV-DOrA LTE

10

VZW 4G Deployment Plan

303 M POPs303 M POPs

The only carrier with contiguous 4G spectrum

100M2010100M2010

285M+2013285M+2013

11

LeadershipLeadership Early AdoptionEarly Adoption

PortugalPuerto Rico Saudi Arabia Senegal Singapore South Africa Sri Lanka Sweden Taiwan Thailand UAE UK Uruguay USA Uzbekistan Venezuela Vietnam

130+ Carriers in:130+ Carriers in:GermanyHong Kong India Indonesia Italy Japan South KoreaKuwait Malaysia MexicoNamibia NetherlandsNew ZealandNorway Pakistan Paraguay PeruPhilippines

Argentina Armenia Australia Austria Bahrain Belgium Brazil Brunei Cambodia Canada Chile ChinaColombia Ecuador Egypt Finland France

GlobalGlobal

LTE’s Universal Reach

12

Early LTE Demonstrations

• Digital Media Ecosystem– MID– Camera – Digital Content Frame

• Mobile Video Conferencing

• Portable Video Player

• Home Monitoring & Control– Security Camera– Home Control

Demonstrated at CESon a live LTE network

13

LTE Enabled Business Models

Always on

W/O LTE With LTE

Finished goods,service or both

Unconstrained

Dedicated insight -OTA possible

Unconstrained

Unconstrained

Maintenance

Market intelligence

Customer connection

Upsell options

Connectivity

Business Model

Applications

No connection

Finished goods

Limited

Unanticipated -Truck roll

Little to none

Limited

StaticDynamic – New platforms

14

LTE will drive…

• Significant increase in connected devices

• Acceleration of app and platform diversification

• Business model adaptation and reinvention