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1. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1Cisco Confidential 1© 2013 Cisco and/or its affiliates. All rights reserved.
Jared Headley
Senior Director, Service Provider Mobility
October 2013
Cisco Public

2. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2
Wireless Services
Mobile Offload
Wi-Fi Hotspots
6 BillionMachine-to-Machine
Connections in 2017
50%Mobile Data Offload in
2013
94%Users who Turn on
and Find LBS Useful
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Growth in
mobile data
Lack of
Spectrum
Market Drivers
Offload
economies
Wi-Fi is
ubiquitous
Shift to indoor
consumption
46% 71% By 2017, 71% of
tablets traffic will
be offloaded
By 2017, 46% of
smartphones traffic
will be offloaded
Source: Cisco Visual Networking Index, 2013
50% of mobile data traffic will be offloaded to Wi-Fi and Small Cells in 2013,
equivalent to 10 billion movie downloads or 9000 petabytes per year
( Source: Juniper Research)
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Retention & Loyalty
Reduce churn by 50%with
free Wi-Fi
Save Money Make Money
Mobile Data Offload
Offload of 7%of data
traffic results in billions of
dollars saved
Managed Services and
Wholesale
Create new revenue streams of up to
$5M per venue with B2B
managed wireless services
Location Analytics
Offer analytic reports for
$50K/mo
Location-Based Advertising
Mobile advertising revenue grows
10xwith LBS
Cisco Public

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Retention & Loyalty
Save Money Make Money
Mobile Data Offload
Managed Services
and Wholesale
Location Analytics
Location-Based
Advertising
Cisco Public

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0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
ReductioninChurnRateforDataSubswith
Wi-FiService
Month of Deployment
Impact on Broadband Data Churn Following Introduction of Wi-Fi Offer
Among Subscribers Who Used Both
28–35%
Reduction
12–17%
Reduction
53–66%
Reduction
MSO #1
MSO #2
MSO #3
Trendline is an immediate benefit, normalizing to ~15% reduction in churn
Source: Cisco and RCBG, August 2012
Retention
& Loyalty
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$14.0M
Retention
Savings
OR$10.1M
Total Wi-Fi
costs
$6.0M
Foregone Revenue
(net loss)
OPTION A – Differentiate with Wi-Fi
$3.9M
Net
Gain
OPTION B – Match competitive pricing
for Triple-Play package
offered by competitor
$49 High subscriber
acquisition cost: $495
$115 avg. monthly
revenue per subscriber
Service Provider ended up ahead by $9.9M by differentiating with Wi-Fi
Retention
& Loyalty

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Retention & Loyalty
Save Money Make Money
Mobile Data Offload
Managed Services
and Wholesale
Location Analytics
Location-Based
Advertising
Cisco Public

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Wi-Fi works in tandem with our
global network to keep people
connected wherever they are. Wi-Fi is
a clear factor in mobile use, driving
purchase decisions to enriched
hospitality, fan & travel experiences
Josh Goodell, AVP
AT&T Wi-Fi Services
“
”_
Public Wi-Fi
hotspots
32,000
2011
2012
x3
+10% +200%
Wi-Fi
connections
2012
Venues
2012
Mobile
Offload
Public Wi-Fi
hotspots
3.8 million 50%
Smartphone offload
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MNOs offloading via to someone else’s Wi-Fi network are significantly less
productive than those moving traffic to their own Wi-Fi network
20%0% 40% 60% 80% 100%
MNO1
MNO2
MNO3
MNO4
MNO5
MNO6
MNO7
% of Mobile Data Traffic Offloaded to Secondary Network
Source: Cisco; as reported by sample of Tier 1 MNOs in US, Asia and Europe (Jul-Sep 2012)
Offload via owned Wi-Fi
Offload via 3rd party Wi-Fi
Mobile
Offload
Percentage of Mobile Data Traffic Offloaded to Secondary Network

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Representing
savings
Service provider subscription and traffic forecast through 2016:
of mobile data traffic
to be offloaded by 2020
7%
$3.6Bn
Mobile subscription to grow x5
3.5 M
17.5 M
2011
2016
Mobile broadband data usage to grow x3
550 MB/Mo
1.6 GB/Mo
2011
2016
1.6%
7%
• Cost savings based on less data
served over the cellular network
• Intelligent traffic routing and
network optimization
• Service improvements in
buildings and dense urban
topographies
• Coverage extension where
service provider has no spectrum
2013 2014 2015 2016 2017 2018 2019 2020
$1.1Bn
$830M
$615M
$425M
$290M
$185M
Cost Savings (US$) Traffic Offloaded (%)
Mobile
Offload
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Cisco outdoor AP 1552C
3 SSIDs
Mobile SSID is a closed
(secured) network with
EAP-SIM Authentication
MSO broadband clients
eligible for free public Wi-Fi
Passpoint
(Hotspot 2.0)
secure and
automated selection
Mobile
Offload
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Retention & Loyalty
Save Money Make Money
Mobile Data Offload
Managed Services
and Wholesale
Location Analytics
Location-Based
Advertising
Cisco Public

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Managed Private Network
for secure business operations
Managed Public Network
for guest Internet access
Venue and retail owners start using
Wi-Fi as a way to improve business
Generate more customer traffic
attracting more customers
Increase customer dwell time
more time spent = more money
Creates an opportunity for service
providers offering managed Wi-Fi
Managed
Services
Example:
* Source: AT&T, Hilton McDonald’s and Sam’s Club’s websites
Partners with:

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Transportation Centers
• Connecting frequent and occasional travelers
• Business models:
• 30 second video every 30-40 minutes of access
• Subscription model for higher speeds starting at
$4.95/hour
Hospitality
• Connecting hotel guests and visitors
• Business models:
• Subscription models: free access for value-hotels
and up to $5-30/day for luxury hotels
• Tiered pricing model and customized applications
available for VIP customers, such as conference
attendees
Stadiums
• Connecting fans to social media, check scores and
watch highlights
• Business Models:
• Paid subscription to users, as low as $7.95 24
hours
• Paid apps to access in-venue premium content
• Ad-supported connectivity
• Opportunity for SPs: $3-5 mill per stadium
deployment
Education
• Connecting students and faculty to high-bandwidth
information (videos, streaming information)
• Opportunity: 15% of school systems expected to
upgrade in 2014 for $300M in opportunity*
*Source: Cisco Systems
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• Wholesale using installed fiber bundled with VLAN and Wi-Fi
SSID

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Retention & Loyalty
Save Money Make Money
Mobile Data Offload
Managed Services
and Wholesale
Location Analytics
Location-Based
Advertising
Cisco Public

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Location
Analytics
Location analytics provide insights
into device’s journey inside a venue
Where people go? What are the
common paths? Most visited places?
How long people stay in each place?
Where is the first place they stop?
Analyze patterns of repeat vs. visitors
Trend analysis & history comparison
Quantify &
justify rental
pricing
Measure
signage
impact
Perform
predictive
analytics
Analyze
changes
impact
Analytics Benefits to Venues:
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• Cisco and Facebook provide an integrated
WiFi sign-on platform
• Allows customers to use their Facebook
page as the splash page during WiFi login
• Delivers better user experience,
encourages users to ‘check-in’ and ‘like’
Page
• Increase traffic on Facebook Page, share
offers and announcements
• Facebook provides Page Insights for
aggregate demographic data from check-ins
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• Internal optimization and performance benefits
• External monetization
Frequency
Customers
Data Volume
Analytic Intensity
Value
Manual Reports Automatic Reports
One-Time Subscription Custom Single Feed Multi-Feed Queryable
Static report
on network
usage
Recurring
report with
analyzed data
Project-based
analysis,
output
API from
database /
network
API from
database /
network
Exposed
database &
network
Retail, SMB
Goodwill
Retail, SMB
Large Retail,
Franchises
Larger B2B Larger B2B Multiple B2Bs
Location
Analytics
Cisco Public

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Dynamic Insights by Telefonica
Precision Marketing by Verizon
Pinsight by Sprint
GeoVision by SK Telecom
Location
Analytics
Cisco Public

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Retention & Loyalty
Save Money Make Money
Mobile Data Offload
Managed Services
and Wholesale
Location Analytics
Location-Based
Advertising
Cisco Public

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$20$0 $40 $60 $80
Cable (highly targeted)
Hulu (popular content)
Cable (local)
Broadcast TV primetime
Online video ad (prem.)
Broadcast TV
Want that
Average CPM $ by Advertising Type
Source:
RCBG analysis of
advertisement market
Mobile
Online Banner
Cable Network
Online video ad - UGC
Getting this
Mobile CPMs are below expectations, closer to desktop than television
Location-based
Advertising

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% of Wi-Fi venues enabled for advertising
Source: Cisco & RCBG SP Wi-Fi Monetization Research (2013)
20% 0%40%60%80%100%
Volume-Based Impressions
Venues
LBS
100%
No
eCPM $2-$5
Targeting-Based Mobile Ads
Venues
LBS
10%
Yes
eCPM $24
ARPU uplift
by year 5
$5.82
Volume-Based Impressions Hyper-Targeted
Location-based
Advertising
More mobile
advertising
revenues
in 5 years
x2.5
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4 Year Cumulative Revenues from Retail
Source: Cisco and RCBG Wi-Fi Monetization Research (2013)
Mall in Dubai
eCPM
4Y Rev.
$350
$430M
Public venues in Western Europe
eCPM
4Y Rev.
$85
$125M
Malls in Singapore
eCPM
4Y Rev.
$40
$52M
Malls in Canada
eCPM
4Y Rev.
$24
$40M$24$2 $40 $85 $350
Location-based
Advertising
Cisco Public

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Service
Provider
Business Models Services
Other
Service
Providers
Business
Consumers
B2B
B2C
B2SP
Managed
Service
Mobile
Advertising Analytics
Service
Bundling Subscription
Mobile
Advertising
Wholesale
Services Roaming
Cisco Public

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Thank you.