Redshift Strategy 2013

1

The mobile landscape is being shaped by new services and products built on emerging technologies

The battle for mobile revenue

Potential impact on MNOs

£

Emerging technologies

HetNets

TV White Space

New products and services

MB

Declining voice revenues

Increasing data usage

Increasing mobile connections

2 31

Guidelines:

Graphical/visual presentations take a number of forms, including conceptual, informational and numerical. Applicants are encouraged to consider the most suitable style of presentation for their chosen discussion topic.

Source: Redshift analysis

Redshift Strategy 2013

2

Emerging technologies are driving global connectivity and data consumption

Emerging technologies

Emerging technologies

TV White Space

1

• Wi-Fi is a global standard for wireless communications

• Refined standards will further improve the range and connection speeds of wireless networks

• Smartphones and tablets are driving global connectivity

• Connected devices are leading to an increase in media and data consumption

• “Heterogenous Networks” combine large and small cells to provide seamless coverage

• HetNets may increase connectivity and improve network capacity in order to support increased data consumption

• TV White Space is unused frequencies in terrestrial television bands

• TV White Space may provide cheap internet connectivity in rural areas and developing countries

HetNets

Guidelines:

An example informational slide

Source: Redshift analysis

Redshift Strategy 2013

3

Skype, Viber and WhatsApp are examples of disruptive services which could undermine traditional MNO revenues

New products and services: Skype, Viber and WhatsApp

• Skype is a cross platform communications service specialising in video and voice calls over IP

• 280 million monthly users

• 200 billion daily minutes

• 120 million downloads on iPhones and iPads and over 100 million downloads from the Google Play Store

• Viber is a cross platform communications service specialising in voice calls to mobile devices over IP

• Viber is available on iOS and Android and has recently been launched for web browsers

• Viber reported 200 million registered users in May 2013, up from 140 million in December 2012

• WhatsApp is a cross platform instant messenging application

• WhatsApp is available on iOS, Android, Blackberry, Windows phone and Symbian

• WhatsApp reported more than 200 million monthly active users in April 2013

• WhatsApp reportedly handles 8 billion inbound and 12 billion outbound messages per day

2

Source: Skype, Viber, WhatsApp, press articles, Redshift analysis

Guidelines:

An example case study slide

Redshift Strategy 2013

4

MNOs will be challenged by an increase in mobile traffic and plateauing revenues

Potential impacts on MNOs

Global mobile revenue Global mobile trafficGlobal mobile connections

2010 2011 2012 2013 2014 2015 2016 2017 -

300,000

600,000

900,000

1,200,000

Global non-voice revenue, $mSeries3

2010 2011 2012 2013 2014 2015 2016 20170

2,500

5,000

7,500

10,000

Connections (m)Mobile Broadband connections (m)

2009 2010 2011 2012 2013 2014E

-10%

0%

10%

20%

30%

Global Mobile Traffic as % of Total Internet Traffic

Note: Machine-to-machine connections assumed negligible Source: Informa, Ovum, Redshift analysis

3

• Number of mobile connections driven by reducing equipment costs and demand for mobile broadband

• MNOs have an incentive to create pricing structures based on data services

• MNOs are supporting high cellular data usage without gaining proportional data revenues

Guidelines:

An example numerical slide