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2. The Changing Face of Communications
Prepared for:
Presented by: Rich Nespola, Chairman of the Board & CEO, TMNG Global
www.tmng.com TMNG Global Confidential and Proprietary — © 2011 The Management Network Group.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or
June 27, 2011
means (electronic, mechanical, photocopy, recording or otherwise) without the permission of TMNG Global.

3. A Brief History of Communications
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4. TMNG Global Overview
TMNG Global offers a comprehensive portfolio of professional services and solutions.
From business model evolution to software solutions, our services and products are
organized around three primary disciplines…
Strategy Business & Operations Technology Solutions
• Growth & Business Transformation • Operational Excellence • Technology Services and
Strategy • Business Requirements Analysis Consulting
• Go‐to‐Market Strategy • Business Transformation • OSS/BSS Transformation
• Customer & Revenue Management • Product Lifecycle Management • Networks
• Ecosystem & Business Model Evolution • Business Assurance • Cloud Computing
• Improving Effectiveness & Optimization • Customer Experience Management • Managed Services
• Corporate Strategy Planning • Operational Due Diligence • Ascertain® Business Assurance
• Deal Development Software Solutions
• Outsourcing
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5. Client Roster
Our clients are the global leaders in the communications, digital media, technology and
financial services sectors
Service Providers Technology Players
Infrastructure • Intermediaries/Enablers • Devices •
Mobile Network Operators • MVNOs • Fixed Operators • Cable/MSO • Satellite • Internet
Consumer Electronics • Enterprise Solutions • Software • Components
Market Influencers
Industry Groups • Regulators
Media
Content Players • Network/Broadcast • Advertisers
Investment Sector
Private Equity & Venture • Investment Funds • Commercial Lenders
Verticals
Automotive • Energy • Hospitality • Health Care • Foundations
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6. The nature of communications is changing, with
smartphones at the center of interaction
Traditional Communications Mobile Convergence
Tools Traits
• Voice • One‐to‐one
• Voicemail • Private
Voice,
• Text messages • Real‐time
SMS
Traditional Social
Today & Future Comms. Interaction
Tools Traits
Business
• Voice, voicemail, • One‐to‐many Productivity
Purchasing
SMS • Public, with
• Social networking customizable privacy
• Microblogging • Asynchronous
• Instant messaging • Location‐based (LBS) Video Digital
Comms. Content Library
• Email • Social network identity
• LBS used across services
• Video chat • Business and mass
• Location and status market consumer
sharing communities and
identities
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7. The infrastructure of 3G/4G networks and smartphone
proliferation is enabling rich communications apps
Global 3G/4G Subscribers & Penetration Global Mobile App Downloads & Revenue
4,000 43% 50%
38%
3G/4G Penetration (%)
33% 2,776 40%
3G/4G Users (M)
3,000
27% 2,348 120B $40B
1,928 30% $37.5B
2,000 21%
1,503 Free
1,055 20% $35B
1,000 100B Paid
10% $30.2B
$30B
Revenue
0 0% ($M) 77B
80B
2010 2011 2012 2013 2014 $25B
$21.1B
62B
Global Smartphone Subscribers & Penetration 60B $20B
$12.3B 44B
64B $15B
4,000 50% Smartphone Penetration (%) 40B
51B
Smartphone Users (M)
40% 25B $10B
3,000 36B
$4.9B
30% 20B
20% 22% 11B 20B $5B
2,000 17% $1.5B
14% 1,152 20% 9B 13B
11% 972 8B 11B
1,000 588 782 0B 3B 4B 2B
1B 5B $0B
416 10%
2009 2010 2011 2012 2013 2014
0 0%
2010 2011 2012 2013 2014
Source: Oppenheimer, Morgan Stanley, IDC, CSMG Analysis
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8. OTT Apps and mobile network operator initiatives are
enabling converged services
Video Calling for Fixed and Mobile Payments
Social Networks Creating New
Mobile Encroaching on Partnerships and
Communications Methods
Traditional Voice Experimentation
Multiple standards being pursued:
• Mobile app based: Payfone
– Verizon Wireless to enable retail
• ~8 hours/ month spent on social • Skype reports that 42% of all Skype‐to‐ purchases over smartphone browser to
networking sites (6 on Facebook) Skype minutes are video calls (81B be billed to monthly wireless statement
• 37% or 250M of Facebook users are on minutes in 2010 – American Express purchases with
Facebook mobile • Tango reports that its 3G/WiFi video mobile number
• 13% of Americans use twitter, up from 8% calling app has been downloaded 8M • NFC‐based: Google Wallet
six months ago times – Enabled by NFC chips in phones and
• ~85M Apple devices capable of FaceTime Android OS
video calling have been sold worldwide – The service will work with MasterCard
PayPass Systems
Source: Company websites and filings, Barclays, Wall Street Journal, CSMG Analysis
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9. Voice is reinventing itself as an application available over
multiple platforms and networks
Voice Services Evolution
Over the Top Cloud VoIP Providers Divergent OTT Voice Business Models
Have Proliferated
Ad‐
“Freemium”
supported
Companies are Paid and free Free features with
offering cloud‐ features ad‐integration
based services
targeting business
verticals
Expansion of HD Voice Voice Delivered as an App
France • Mobile HD voice
UK launched in 20 mobile
Egypt (Mobinil) Mobile operators
networks in 18
will carry voice over
countries Powered by LTE data bandwidth
Enabled through:
Turkey
• HD codecs
• Compatible hardware
Source: Global Mobile Suppliers Association, CSMG Analysis
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10. Large ecosystem players have started to participate and
create captive user experiences
+ • FaceTime video chat
was created to be an
• The acquisition of Skype interoperable
gives Microsoft an instant platform; however,
social network of 145M Apple has not pursued
users integration with other
• Skype can be integrated video chat services
into all Microsoft products • iMessage is closed to
• Microsoft could pursue non‐iOS users
multiple paths with Skype: Direct customer
– Aggressive monetization vs. relationships and
user base growth • Facebook does not
partnerships with
– Windows Mobile Skype have an official VoIP
exclusivity vs. continuation network carriers
product, but it allows
of broad app reach VoIP applications to
run on its site
• “Voice” and “Talk” • T‐Mobile recently
services augment launched its Bobsled
Google’s core desktop application, in
and mobile search partnership with VoIP
services provider Vivox; T‐
• Google could continue Mobile plans to
to expand the model of expand the service to
its Sprint partnership to mobile phones next
other carriers
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11. Smaller startups are also participating in innovative ways
Messaging and Calling Apps that
are Building Communities
• Twilio provides a cloud‐based
platform to developers for • Cross‐platform
voice and SMS messaging for iOS,
communications Android, BlackBerry, and
• “Amazon of voice” cloud‐ Symbian
based service with a broad • Instant integration with
array of target customer phone contacts
types
• Embedded in collaboration Innovation and • Voice and messaging for
and sales sites partnerships iPhone users only
• Seamless integration
with iPhone user
Enterprise Social interface
Networking and
Collaboration
• Yammer’s platform allows for
development of applications that add
additional functionality to an • Intelligent voice services that add a
enterprise’s Yammer network – e.g., new layer of business intelligence to
polls, events, etc. existing data management systems
• Open API facilitates custom integration
with enterprise apps
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