Proprietary & Confidential 1

Cellular Services over WiFi

June 2014

Proprietary & Confidential 2

Mobile Usage Tsunami Continues

Business Case for WiFi

WiFi vs Small Cell

Sample Mobile Operators utilizing WiFi

Cellular Services over WiFi – Seamless Experience

Agenda

Proprietary & Confidential 3

Mobile Usage: Continues to Rise

Source: StatCounter 5/2014

Proprietary & Confidential 4

Mobile Data Challenge

1000x Mobile Data Growth vs. 37x Gain

Source: Qualcomm

Proprietary & Confidential 5

Mobile Data Traffic Behavior

Source: Aptilo

Proprietary & Confidential 6

Business Case of WiFi

Source: Aptilo

Proprietary & Confidential 7

Small Cell vs Wi-Fi

A smartphone application that turns existing Wi-Fi access points into small cells (Femtocells)

MNO Core Network

Internet Smart Wi-Fi Femtocell

Cost/User $Xs $X00s

Installed Base >50% of homes 0%

Usage Locations Home, Office, Hotspot, Global

Home Only

Access Point Upgrades

Not Required Mirrors RAN evolution

All the benefits of a femtocell deployment at a fraction of the cost

Wi-Fi Access Point

Telephony and SMS/MMS services over Wi-Fi

Proprietary & Confidential 8

The Need for VoWiFi

Coverage Capacity Cost-Effective

Over 80% of all mobile

data traffic is streamed

indoors1

39%-61% of offices

have noticeably poor in-

building coverage2

Serving in-building

traffic from outdoors

places a heavy load on

operator spectrum3

The introduction of

LTE in the macro network

will provide only limited

and short-lived relief, as

traffic is growing at a

faster rate than the

capacity increment it will

yield.4

By 2017, only 40% of

data will go over cellular

networks5

Residential WiFi

networks require no

additional expenditure for

the operator, and virtually

all devices support it.6

Capitalize on existing

WiFi network—nearly a

quarter billion homes and

more than 4 million public

spaces offer WiFi.7

Existing WiFi vs. Small Cells

Proprietary & Confidential 9

In a recent survey of US mobile

users, almost all had a home

broadband WiFi service, and a

majority automatically connect to

WiFi when they enter the home

The figure below depicts results

from a 2013 Informa/Mobidia study

about the percentage of Android

phone users who use WiFi by

country

WiFi & VoWiFi: Solving Coverage Issues

VoWiFi is the only coverage solution that follows the user wherever they go and can

be used anywhere in the world where WiFi is available.

100

90

80

70

60

50

40

30

20

10

0

% o

f to

tal sam

ple

Proprietary & Confidential 10

Operators Utilizing VoWiFi

“T-Mobile is excited to expand our Wi-Fi Calling feature, a unique and

valuable service T-Mobile has been offering customers for over three

years. Starting today, T-Mobile customers can add Free Wi-Fi Calling

to their rate plan – at no additional charge – to place calls over Wi-Fi

without deducting from their allotment of minutes.”

“Sprint has boasted the benefits of Wi-Fi calling, including enhanced

coverage, easy setup and unlimited voice calling and messaging over

Wi-Fi. Sprint said its customers "will experience improved voice, data

and messaging services in locations that previously had limited or no

mobile network coverage."

“Our customers expect high quality, low cost mobile service… we can now

extend beyond local French cellular coverage, allowing subscribers to

enjoy international communication as if they were calling from within

France…We eliminate cellular network roaming charges and deliver our

commitment to quality-cost competitive advantage even when our

customers are travelling worldwide.”

Proprietary & Confidential 11

Sprint Launches VoWiFi with Taqua

− Feb. 2014: Sprint announces they’ve selected

Taqua’s Virtual Mobile Core to deliver VoWiFi

service1

−“Sprint plans to introduce support for Wi-Fi

calling in more devices throughout the year.”2

Commercial Deployment

− Samsung Galaxy S4

− Samsung Galaxy Note 3

− Samsung Galaxy Mega

− Samsung Galaxy S4 Mini

Sprint VoWiFi Enabled Phones

− Superior approach vs. OTT applications

− Complete macro network parity experience

− Leverages in-place IMS Core & IT integration

− Easily extendable to support VoLTE

VoWiFi Transition to VoLTE

Proprietary & Confidential 12

VoWiFi Experience

Voice/Messaging/Data

Via Roaming Relationship

Wireless Roaming

Partner

Wireless Service:

Complete WiFi/3G parity –

LTE extensible

Office/Home

Voice/Messaging/Data

over WiFi

<<< Taqua:

Virtual Mobile

Core

Service Provider

A seamless user experience for all services on a single wireless handset.

Proprietary & Confidential 13

How does it work?

An integrated client on the phone monitors the WiFi and

cellular signals and uses the strongest for the incoming or

outgoing call

Or a downloadable client that uses network IN triggers to

ensure consistency and avoid conflicts

Using subscriber same credentials for authentication

Better in-building coverage

Utilize WiFi in home or at work

Cellular often has coverage issues

User experience

Superior to OTT, which has is a separate / non integrated

service e.g. Skype, Viber

Integrated calling, messaging, notification – single user

interface

The Integrated VoWiFi Application

VoWiFi Wi-Fi Calling-

Status Bar

Notification (Optional)

Taqua’s VoWiFi solution provides an integrated, seamless

Voice and SMS user experience over WiFi “and” 3G networks

Not “over the top”, each call is handled by 3G network – all

UMTS supplementary, enhanced, and regulatory features,

single number, etc. available to the subscriber

Allows for introduction of new services (i.e. inexpensive

international roaming.

Proprietary & Confidential 14

VoWiFi Value & Use Cases

Coverage Improvement Subscriber Churn Reduction

− WiFi can often provide the best quality RF access at home, in the office or in public

Wi-Fi coverage

− Single number, seamless user experience for voice and messaging

− Calls can still be charged – CDRs generated

− Tall building coverage challenges - VoWiFi

Combat OTTs

− Voice and messaging at a lower cost when the subscriber is in WiFi coverage

− Reduces the OTT’s price advantage and provide more integrated and an open user

group experience

Voice & Messaging Offload from Macro Network

− Decrease 2G/3G radio network usage for voice and messaging

Lower Subscriber’s Calling Cost when Travelling Abroad (But in WiFi)

− Fee charged for integrated VoWiFi use when travelling – combats OTT

Proprietary & Confidential 15

Complete service parity with existing wireless operators’ 3G network features

and services

GSMA IR.92/94 Compliant Architecture for Voice and Video Services

Pre-IMS and IMS architecture support

Carrier grade and high capacity

Ease of integration into existing wireless network - appears as a MSC/VLR

towards CS networks

Taqua Virtual Mobile Core Solution

MSC

HLR IMS/SIP Core

Taqua VMC –

VoWiFi

HSS

Mobile Circuit

Switched Core

SMS-C

SCP

Proprietary & Confidential 16

Taqua: Overview

Founded in 1998 to develop next generation, core network

communications systems and applications. Founded

The company has evolved into a leading supplier of products

and services enabling a seamless transition into VoIP over

Ethernet, WiFi or 4G-LTE. Evolution

Today, hundreds of carriers utilize Taqua to cost effectively

provide a full array of revenue generating, broadband and

mobile applications to all types of communication devices. Experience

Proprietary & Confidential 17

Contact

Thank you for your Interest.

Matthias Leisurs

VP Sales, EMEA

M: +49.160.9566.1360

matthias.leisurs@taqua.com

Office:

Holzhofallee 21

D-64295 Darmstadt

Germany