How Operator Capex Investment Increased Smartphone Penetration In North America

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TECHNOLOGY BUSINESS RESEARCH, INC.

TBR’s U.S. & Canada Mobile Operator BenchmarkResearch Highlights and Outlook

Technology Business Research (TBR) Quarterly Webinar Series

April 18, 2012

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2 TBR Quarterly Webinar Series | 4.18.13 | www.tbri.com | ©2013 Technology Business Research Inc.

U.S. & Canada Mobile Operator Benchmark 4Q12 Research Highlights and 2013 Outlook:

Webinar Presenter

Eric CostaNetworking & Mobility Analyst

Email: [email protected]: @ECostaTBR

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TBR’s Network Business Quarterly (NBQ) reports deliver unique insight and value through in-depth analysis in a concise, consumable format • TBR reports are unique for their deep holistic

analysis of leading operator businesses.

• Financial modeling and TBR insights help customers gain a better understanding of operator business models.

• TBR reports and webinars are responsive to client timelines, clear and concise, and provide insights across multiple layers of an operator’s organization and infrastructure.

• TBR’s strategic assessment provides an impartial check on an operator’s progress in its strategic objectives.

NBQ 3Q12 Research Highlights and 2013 Outlook: Webinar Overview

TBR Network Business Quarterly Portfolio

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Top Wireless Trends

Operators are focusing on improving network speeds and capacity by wrapping up initial LTE deployments and moving to small cells and LTE-Advanced upgrades.

Revenue will be driven by increased data consumption, adoption of shared data plans and the emergence of new data services.

Capex Investment

Connections

Key Themes in 4Q12

Revenue

SOURCE: PCMGT.COM

SOURCE: TECHVIBES.COM

U.S. & Canada Mobile Operator Benchmark 4Q12 Research Highlights and 2013 Outlook

Total connections will continue to grow at an accelerating rate over the next five years, driven by shared data plans, widespread LTE deployments and the proliferation of M2M.

SOURCE:en.titaninteractif.com

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The completion of LTE networks will force operators to differentiate their networks around speed and efficiency


$0.0

$1.0

$2.0

$3.0

$4.0

4Q11 1Q12 2Q12 3Q12 4Q12

Wire

less

Cap

ex (i

n bi

llion

s)

Total Wireless Capex

AT&T Verizon T-Mobile Sprint

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SOURCE: TBR AND COMPANY DATA

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Operators will continue to dedicate capex spend to LTE in 2013, led by increased spending from Sprint and T-Mobile


-40%-20%

0%20%40%60%80%

100%120%140%

4Q11 1Q12 2Q12 3Q12 4Q12

YTY

Cape

x G

row

th

Wireless Capex Growth Year-to-Year


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Operators will continue to dedicate capex spend to LTE in 2013, led by increased spending from Sprint and T-Mobile


AT&T

Leap Wireless

MetroPCS

Sprint Nextel

U.S. Cellular

Verizon Wireless

T-Mobile USA Cincinnati Bell-15%

-10%

-5%

0%

5%

10%

15%

5% 10% 15% 20% 25% 30% 35% 40%

Year

-to-

Year

Rev

enue

Gro

wth

OIBDA Margin

4Q12 REVENUE, OIBDA MARGIN & YTY REVENUE GROWTH TBR


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Emerging revenue streams in verticals such as automotive and home automation will influence data revenue growth



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Tier 1 operators will continue to drive smartphone penetration to grow data revenue contribution over the next two years


40%

50%

60%

70%

80%

4Q11 1Q12 2Q12 3Q12 4Q12

Pene

trati

on

Total Postpaid Smartphone Penetration


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Operators will leverage connections to drive growth in the wireless industry, led by the launch of new data services


02468

10121416

4Q11 1Q12 2Q12 3Q12 4Q12Conn

ecte

d De

vice

s (in

mill

ions

)

Connected Devices


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Top Wireless Trends

Operators are focusing on improving network speeds and capacity by wrapping up initial LTE deployments and moving to small cells and LTE-Advanced upgrades.

Revenue will be driven by increased data consumption, adoption of shared data plans and the emergence of new data services.

Capex Investment

Connections

Key Themes in 4Q12

Revenue

SOURCE: PCMGT.COM



Total connections will continue to grow at an accelerating rate over the next five years, driven by shared data plans, widespread LTE deployments and the proliferation of M2M.

SOURCE:en.titaninteractif.com

TBR


Quarterly Topics TBR Value Proposition Related Reports

LTE: Spectrum and Network Modernization

• Explore U.S. operators’ network expansion plans to increase capacity to combat rising data usage.

• Discover how operators are refarming and reusing 2G spectrum to combat network congestion.

• Identify which vendors are landing network upgrade deals.• Evaluate the latest spectrum deals throughout the industry to

determine which operators are well positioned for growth.

AT&T, Verizon, Sprint, T-Mobile, Clearwire

Connections • Analyze operators’ different strategies to market and promote

connected device growth.• Discuss the industry’s upcoming shift from subscribers to

connections.

AT&T, Verizon, Sprint, T-Mobile, Clearwire

New Data Services

• Identify revenue streams that will open up due to connected device growth.

• Examine which verticals operators are targeting including healthcare, automotive, security and utility.

AT&T, Verizon, Sprint, T-Mobile

Plan Pricing: Shared Data vs. Unlimited Data

• Explore LTE pricing.• Compare the success of shared data plans and unlimited data

plans to determine which will be more successful in the future.• Analyze the move to cut device subsidies and outline which

operators may go that route next.

AT&T, Verizon, Sprint, T-Mobile

LTE deployment, a shift toward connections and new data services will drive operator revenue growth over the next two years

TBR Networking & Mobility Practice Syndicated Topics 1Q13: Operators

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Questions?


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For further information, please contact:

Kate PriceDirector, Networking & Mobility Practice

[email protected]

James McIlroyVice President, Sales

[email protected]

@TBRincwww.slideshare.net/TBR_Market_Insightwww.youtube.com/user/TBRIChannel

Eric CostaNetworking & Mobility Analyst

Email: [email protected]: @ECostaTBR

mailto:[email protected]


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TECHNOLOGY BUSINESS RESEARCH, INC.

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