1. Cisco Visual Networking Index
and VNI Service Adoption
Gonzalo Valverde
June 2014
Argentina
2013–2018
Regional Sales Manager

2. Cisco Confidential 2© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Cisco Visual Networking Index (VNI)
Global Service Adoption & IP Traffic Growth
Cisco VNI Forecasts are complementary and statistically aligned.
VNI VNI VNI VNI VNI
Service Adoption
Forecast
Fixed & Mobile
IP Traffic Forecast
FIXED MOBILE RESIDENTIAL MOBILE BUSINESS

3. Cisco Confidential 3© 2013-2014 Cisco and/or its affiliates. All rights reserved.
More Video Viewing
79% of All IP Traffic
Faster Broadband Speeds
2.6-Fold Speed Increase
More Devices
21 Billion Connections
More Internet Users
4 Billion Internet Users
Traffic & Service Adoption Drivers, 2013–2018
Growth
Catalysts

4. Cisco Confidential 4© 2013-2014 Cisco and/or its affiliates. All rights reserved.
51 62
76
91
110
132
0
20
40
60
80
100
120
140
2013 2014 2015 2016 2017 2018
Global IP Traffic Growth / Top-Line
Global IP Traffic will Increase 3X from 2013 to 2018
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
21% CAGR
Exabytes
per Month

5. Cisco Confidential 5© 2013-2014 Cisco and/or its affiliates. All rights reserved.
3.5
4.4
5.3
6.4
7.6
8.9
0
1
2
3
4
5
6
7
8
9
10
2013 2014 2015 2016 2017 2018
Latin America IP Traffic Growth / Top-Line
LATAM IP Traffic will Increase More Than 2.5X from 2013 to 2018
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
21% CAGR
Exabytes
per Month

6. Cisco Confidential 6© 2013-2014 Cisco and/or its affiliates. All rights reserved.
0.33
0.41
0.49
0.58
0.67
0.78
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
2013 2014 2015 2016 2017 2018
Argentina IP Traffic Growth / Top-Line
Argentina IP Traffic will Increase More Than 2.4X from 2013 to 2018
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
19% CAGR
Exabytes
per Month

7. Cisco Confidential 7© 2013-2014 Cisco and/or its affiliates. All rights reserved.
0
1
2
3
4
5
6
7
8
9
10
2013 2014 2015 2016 2017 2018
Rest of LATAM (21% CAGR)
Chile (20% CAGR)
Argentina (19% CAGR)
Mexico (23% CAGR)
Brazil (20% CAGR)
LATAM IP Traffic Growth / Countries
Mexico has the Highest Growth Rate at 23% CAGR 2013–2018
Brazil will Generate 44% of all IP Traffic by 2018
20.4%
43.7%
8.8%
21.2%
5.9%
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
21% CAGR
Exabytes
per Month

8. Cisco Confidential 8© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global Internet Users Growth
By 2018, There Will Be Nearly 4 Billion Internet Users
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
North America
317 Million by 2018
CAGR 2%
Latin America
371 Million by 2018
CAGR 9.6%
Western Europe
346 Million by 2018
CAGR 1.4%
Middle East & Africa
431 Million by 2018
CAGR 15.1%
Central/Eastern Europe
339 Million by 2018
CAGR 8.6%
Asia Pacific
2.1 Billion by 2018
CAGR 11.2%
Cisco Confidential 8© 2013-2014 Cisco and/or its affiliates. All rights reserved.

9. Cisco Confidential 9© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global Device Growth
By 2018, There Will Be ~21 Billion Networked Devices/Connections
North America
3.4 Billion by 2018
CAGR 13%
Latin America
1.7 Billion by 2018
CAGR 9%
Western Europe
2.8 Billion by 2018
CAGR 11%
Middle East & Africa
2 Billion by 2018
CAGR 9%
Central/Eastern Europe
1.6 Billion by 2018
CAGR 10%
Asia Pacific
9.2 Billion by 2018
CAGR 11%
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
Cisco Confidential 9© 2013-2014 Cisco and/or its affiliates. All rights reserved.

10. Cisco Confidential 10© 2013-2014 Cisco and/or its affiliates. All rights reserved.
By 2018, over half of the
world’s population (52%) will
have Internet access.
By 2018, there will be 2.7
device/connections per capita.
By 2018, 50% of all
device/connections will be
mobile-connected.
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018

11. Cisco Confidential 11© 2013-2014 Cisco and/or its affiliates. All rights reserved.
By 2018, over two-third of the
population (67%) will have
Internet access.
By 2018, there will be 3.4
device/connections per capita.
By 2018, 55% of all
device/connections will be
mobile-connected.
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
Argentina

12. Cisco Confidential 12© 2013-2014 Cisco and/or its affiliates. All rights reserved.
North America
2.5-fold Growth
18–43 Mbps
Latin America
2.6-fold Growth
6–16 Mbps
Western Europe
2.5-fold Growth
19–49 Mbps
Middle East & Africa
2.6-fold Growth
6–15 Mbps
Central/Eastern Europe
2.6-fold Growth
18–45 Mbps
Asia Pacific
2.7-fold Growth
18–48 Mbps
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
Cisco Confidential 12© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global Fixed Broadband Speed Acceleration
2.6X Average Speed Increase from 2013 (16 Mbps) to 2018 (42 Mbps)

13. Cisco Confidential 13© 2013-2014 Cisco and/or its affiliates. All rights reserved.
In Argentina, fixed
broadband speeds will
grow 2.6-fold reaching
11 Mbps by 2018, up
from 4.1 Mbps in 2013.
Source: Cisco VNI Global IP Forecast, 2013–2018

14. Cisco Confidential 14© 2013-2014 Cisco and/or its affiliates. All rights reserved.
North America
40.5 EB/Month by 2018
Video Share = 84%
Latin America
8.9 EB/Month by 2018
Video Share = 81%
Western Europe
19.3 EB/Month by 2018
Video Share = 79%
Middle East & Africa
5.3 EB/Month by 2018
Video Share = 79%
Central/Eastern Europe
10.2 EB/Month by 2018
Video Share = 70%
Asia Pacific
47.3 EB/Month by 2018
Video Share = 77%
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
Cisco Confidential 14© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global IP Traffic - Increasing Video Viewing
By 2018, Video Represents 79% of Global IP Traffic

15. Cisco Confidential 15© 2013-2014 Cisco and/or its affiliates. All rights reserved.
In Argentina, monthly IP video
traffic will grow 4-fold
reaching 595 PB by 2018, up
from 168 PB in 2013.
By 2018, IP video will be 76%
of all IP traffic in Argentina.
Source: Cisco VNI Global IP Forecast, 2013–2018

16. Cisco Confidential 16© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Average Global Internet Bandwidth Usage
By 2018
30 GB per month
In 2013
15 GB per month 75 GB per month
Future
By 2018
73 GB per month
In 2013
36 GB per month 150 GB per month
Future
Average Traffic per Household
Average Traffic per User
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018

17. Cisco Confidential 17© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Average LATAM Internet Bandwidth Usage
By 2018
25 GB per month
In 2013
14 GB per month 75 GB per month
Future
By 2018
72 GB per month
In 2013
40 GB per month 150 GB per month
Future
Average Traffic per Household
Average Traffic per User
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018

18. Cisco Confidential 18© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Average Argentina Internet Bandwidth Usage
By 2018
27 GB per month
In 2013
15 GB per month 75 GB per month
Future
By 2018
72 GB per month
In 2013
40 GB per month 150 GB per month
Future
Average Traffic per Household
Average Traffic per User
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018

19. Cisco Confidential 19© 2013-2014 Cisco and/or its affiliates. All rights reserved.
VNI Forecast Update, 2013–2018
Top 10 Broadband Networking Trends
1
Device Transitions Alter
Network Demand/Use
2
M2M Growth Drives
the Reality of IoE
3
Broadband Speeds: Fixed
versus Wi-Fi
4
Wi-Fi Dominates Access
Technology
5
Content Delivery Networks
(CDNs) & Traffic Topology
6
IP Video Traffic Analysis
(SD, HD & UHD Trends)
7
Residential, Business & Consumer
Mobile Service Adoption
8
Peak versus Average
IP Traffic Growth
9
IPv6 Shows Continued
Global Adoption
10
Tiered Pricing: Comparing
Mobile & Fixed Data Caps

20. Cisco Confidential 20© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global Connected Devices Growth by Type
By 2018, M2M More than a Third of the Total Connections
* Figures (n) refer to 2013, 2018 device share
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
11% CAGR
Billions of
Devices
0
5
10
15
20
25
2013 2014 2015 2016 2017 2018
M2M (18.6%,35.2%)
Smartphones (14.1%,19.1%)
Non-Smartphones (37.6%,16.8%)
TV (10.0%,12.8%)
PCs (12.2%,7.0%)
Tablets (2.3%,5.0%)
Other Portable Devices (5.2%,4.1%)

21. Cisco Confidential 21© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Increasing Video Definition
By 2018, More than 20% of Global Connected Flat Panel TV Sets will be 4K
1 8
28
63
119
202
0
50
100
150
200
250
2013 2014 2015 2016 2017 2018
SD 2 Mbps
HD 7.2 Mbps
UHD 18 Mbps
Connected 4K
TV Sets (M)
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018

22. Cisco Confidential 22© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Latin America Connected Devices Growth by Type
By 2018, M2M and Smartphones Over Half of the Total Connections
* Figures (n) refer to 2013, 2018 device share
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
9% CAGR
Billions of
Devices
0
1
2
2013 2014 2015 2016 2017 2018
M2M (14.7%,26.7%)
Smartphones (14.1%,24.2%)
Non-Smartphones (47.3%,17.5%)
TV (4.4%,13.3%)
PCs (14.9%,9.1%)
Tablets (1.4%,4.8%)
Other Portable Devices (3.1%,4.4%)

23. Cisco Confidential 23© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Average Global Traffic per Device (2013)
=Tablet
Ultra High Definition TV
Laptop/PC
Internet Set-Top or Dongle
4.0 GB
= 22.9 GB*
22.7 GB
= 8.0 GB
* Includes IP VoD Traffic
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
=
=Smartphone 1.0 GB
=M2M Module 78 MB

24. Cisco Confidential 24© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global Internet Traffic by Device Type
By 2018, Non-PC Devices will Drive 50% of Global Internet Traffic
Exabytes
per Month
23% CAGR
* Figures (n) refer to 2013, 2018 device traffic share
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
0
20
40
60
80
100
120
2013 2014 2015 2016 2017 2018
Non-Smartphones (0.1%,0.2%)
Other Portable Devices (0.1%,0.5%)
M2M (0.5%,3.7%)
TV (4.7%,6.2%)
Tablets (3.1%,18.0%)
Smartphones (5.0%,21.0%)
PCs (86.4%,50.5%)

25. Cisco Confidential 25© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Latin America Internet Traffic by Device Type
By 2018, Non-PC Devices will Drive a Third of LATAM Internet Traffic
Exabytes
per Month
20% CAGR
* Figures (n) refer to 2013, 2018 device traffic share
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
0
1
2
3
4
5
6
7
8
9
2013 2014 2015 2016 2017 2018
Non-Smartphones (0.1%,0.1%)
Other Portable Devices (0.1%,0.6%)
M2M (0.2%,2.2%)
TV (0.9%,3.6%)
Tablets (1.1%,10.7%)
Smartphones (2.5%,15.9%)
PCs (95.1%,66.8%)

26. Cisco Confidential 26© 2013-2014 Cisco and/or its affiliates. All rights reserved.
VNI Forecast Update, 2013–2018
Top 10 Broadband Networking Trends
1
Device Transitions Alter
Network Demand/Use
2
M2M Growth Drives
the Reality of IoE
3
Broadband Speeds: Fixed
versus Wi-Fi
4
Wi-Fi Dominates Access
Technology
5
Content Delivery Networks
(CDNs) & Traffic Topology
6
IP Video Traffic Analysis
(SD, HD & UHD Trends)
7
Residential, Business & Consumer
Mobile Service Adoption
8
Peak versus Average
IP Traffic Growth
9
IPv6 Shows Continued
Global Adoption
10
Tiered Pricing: Comparing
Mobile & Fixed Data Caps

27. Cisco Confidential 27© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global M2M Connections / IoE Growth
By 2018, Nearly 1 M2M Connection per Capita
M2M
Connections
(M)
26% CAGR
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2013 2014 2015 2016 2017 2018
Asia Pacific (26.3% CAGR)
Central & Eastern Europe (25.7% CAGR)
Latin America (23% CAGR)
Middle East & Africa (25.2% CAGR)
North America (27% CAGR)
Western Europe (24.6% CAGR)
Source: Machina Researc, Cisco VNI Global IP Traffic Forecast, 2013–2018
2.3 B
2.9 B
3.7 B
4.7 B
5.9 B
7.3 B

28. Cisco Confidential 28© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global M2M Traffic Growth
M2M Traffic Will Grow 21-fold from 2013 to 2018
Petabytes
per
Month
84% CAGR
Source: Machina Research, Cisco VNI Global IP Traffic Forecast, 2013–2018
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2013 2014 2015 2016 2017 2018
Asia Pacific (77.4% CAGR)
Central & Eastern Europe (92.7% CAGR)
Latin America (87.5% CAGR)
Middle East & Africa (91.5% CAGR)
North America (91.1% CAGR)
Western Europe (85.5% CAGR)
0.2 EB
0.3 EB
0.6 EB
1.2 EB
2.1 EB
3.7 EB

29. Cisco Confidential 29© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Globally, M2M connections
will grow more than 3-fold
from 2013 (2.3B) to
2018 (7.3B)
Globally, M2M traffic will
account for 3% of total IP
traffic by 2018, up from
0.4% in 2013
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018

30. Cisco Confidential 30© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Internet of Everything
Smart Cars Will Have Nearly 4 M2M Modules Per Car by 2018
Smart Cars Will Drive 41 Petabytes (PB) of Monthly Traffic by 2018
Smart Cars
Traffic
(PB/Month)
Source: Machina Research, Cisco VNI Global IP Traffic Forecast, 2013–2018
Smart Cars
(M)
35
57
90
136
192
256
0
50
100
150
200
250
300
2013 2014 2015 2016 2017 2018
3
5
8
15
25
41
0
5
10
15
20
25
30
35
40
45
2013 2014 2015 2016 2017 2018

31. Cisco Confidential 31© 2013-2014 Cisco and/or its affiliates. All rights reserved.
VNI Forecast Update, 2013–2018
Top 10 Broadband Networking Trends
1
Device Transitions Alter
Network Demand/Use
2
M2M Growth Drives
the Reality of IoE
3
Broadband Speeds:
Fixed versus Wi-Fi
4
Wi-Fi Dominates Access
Technology
5
Content Delivery Networks
(CDNs) & Traffic Topology
6
IP Video Traffic Analysis
(SD, HD & UHD Trends)
7
Residential, Business & Consumer
Mobile Service Adoption
8
Peak versus Average
IP Traffic Growth
9
IPv6 Shows Continued
Global Adoption
10
Tiered Pricing: Comparing
Mobile & Fixed Data Caps

32. Cisco Confidential 32© 2013-2014 Cisco and/or its affiliates. All rights reserved.
North America
2.5-fold Growth
18–43 Mbps
Latin America
2.6-fold Growth
6–16 Mbps
Western Europe
2.5-fold Growth
19–49 Mbps
Middle East & Africa
2.6-fold Growth
6–15 Mbps
Central/Eastern Europe
2.6-fold Growth
18–45 Mbps
Asia Pacific
2.7-fold Growth
18–48 Mbps
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
Cisco Confidential 32© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global Fixed Broadband Speed Acceleration
2.6X Average Speed Increase from 2013 (16 Mbps) to 2018 (42 Mbps)

33. Cisco Confidential 33© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Higher Fixed Speeds Enable Greater Video Consumption
Video Behaviors are Consistent Across Multiple Countries
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
0 5000 10000 15000 20000 25000 30000 35000
Fixed Broadband Speeds (Kbps)
Video Minutes
per Viewer
Linear (Video
Minutes per
Viewer)
Video
Minutes
per Viewer
Source: Cisco VNI, 2014
Indonesia
India
Argentina
Italy
Mexico
Brazil
Australia
Chile
Russia
Canada
U.K.
Sweden
Japan
Germany
China
New Zealand
France
Spain
U.S.

34. Cisco Confidential 34© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Faster Networks Enable Better Experiences
Online Video
(HD movie download)
22 minutes
Online Video
(HD movie download)
4 minutes
Online Video
(HD movie download)
2 minutes
55% of all broadband
connections by 2018
10 Mbps
22% of all broadband
connections by 2018
50 Mbps 100 Mbps
3% of all broadband
connections by 2018
(UHD movie download)
2 hours
(UHD movie download)
23 minutes
(UHD movie download)
12 minutes

35. Cisco Confidential 35© 2013-2014 Cisco and/or its affiliates. All rights reserved.
North America
2-fold Growth
12–23 Mbps
Latin America
2-fold Growth
5–10 Mbps
Western Europe
2-fold Growth
11–21 Mbps
Middle East & Africa
2.1-fold Growth
4–8.4 Mbps
Central/Eastern Europe
2.4-fold Growth
9–21 Mbps
Asia Pacific
2.1-fold Growth
10–22 Mbps
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
Cisco Confidential 35© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global Wi-Fi Speed Acceleration
2.2X Average Speed Increase from 2013 (10 Mbps) to 2018 (21 Mbps)

36. Cisco Confidential 36© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Surge of Hotspots
Globally, there will be
53 million hotspots by 2018
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
Plans to have 8 million US
hotspots by end of 2014
Supports approx. 7 million
hotspots in UK today
Offers more than 620K
hotspots in Asia today
Offers more than 500K
hotspots in LATAM today

37. Cisco Confidential 37© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Future of Wi-Fi as Wired Complement
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
802.11
2 Mbps Max
Applications Enabled
Basic internet
802.11b
11 Mbps Max
Applications Enabled
Email
802.11b
11 Mbps Max
Applications Enabled
Rich Media Web
802.11ac
3.6 Gbps Max
Applications Enabled
High Resolution Video
Wired Complement
802.11n
600 Mbps Max
Applications Enabled
Medium Resolution Video
Number of 802.11ac Home CPE to Increase 13-fold from 2013 to 2018

38. Cisco Confidential 38© 2013-2014 Cisco and/or its affiliates. All rights reserved.
North America
2.6-fold Growth
1.7 to 4.5 Mbps
Latin America
1.5-fold Growth
0.7 to 1 Mbps
Western Europe
1.9-fold Growth
1.6 to 3.0 Mbps
Middle East & Africa
1.7-fold Growth
0.5 to 0.9 Mbps
Central/Eastern Europe
1.7-fold Growth
1.4 to 2.3 Mbps
Asia Pacific
1.5-fold Growth
1.3 to 2.0 Mbps
Source: Cisco VNI Global Mobile Data Traffic Forecast, 2013–2018
Cisco Confidential 38© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global Mobile Speed Growth
Nearly 2X Average Speed Increase from 2013 (1.4 Mbps) to 2018 (2.5 Mbps)

39. Cisco Confidential 39© 2013-2014 Cisco and/or its affiliates. All rights reserved.
VNI Forecast Update, 2013–2018
Top 10 Broadband Networking Trends
1
Device Transitions Alter
Network Demand/Use
2
M2M Growth Drives
the Reality of IoE
3
Broadband Speeds: Fixed
versus Wi-Fi
4
Wi-Fi Dominates
Access Technology
5
Content Delivery Networks
(CDNs) & Traffic Topology
6
IP Video Traffic Analysis
(SD, HD & UHD Trends)
7
Residential, Business & Consumer
Mobile Service Adoption
8
Peak versus Average
IP Traffic Growth
9
IPv6 Shows Continued
Global Adoption
10
Tiered Pricing: Comparing
Mobile & Fixed Data Caps

40. Cisco Confidential 40© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global Internet Traffic by Local Access Technology
Fixed/Wi-Fi Dominates With 61% of Internet Traffic Share by 2018
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
Petabytes
per Month
0
20,000
40,000
60,000
80,000
100,000
120,000
2013 2014 2015 2016 2017 2018
Mobile Data (61% CAGR)
Fixed/Wired (10% CAGR)
Fixed/Wi-Fi from Mobile Devices (71% CAGR)
Fixed/Wi-Fi from Wi-Fi Only Devices (19% CAGR)
24%
44%
15%
23% CAGR 2013–2018
17%

41. Cisco Confidential 41© 2013-2014 Cisco and/or its affiliates. All rights reserved.
LATAM Traffic by Local Access Technology
Fixed/Wi-Fi Dominates With 64% of Internet Traffic Share by 2018
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
Petabytes
per Month
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2013 2014 2015 2016 2017 2018
Mobile Data (66% CAGR)
Fixed/Wired (6% CAGR)
Fixed/Wi-Fi from Mobile Devices (84% CAGR)
Fixed/Wi-Fi from Wi-Fi Only Devices (18% CAGR)
21%
54%
15%
20% CAGR 2013–2018
10%

42. Cisco Confidential 42© 2013-2014 Cisco and/or its affiliates. All rights reserved.
VNI Forecast Update, 2013–2018
Top 10 Broadband Networking Trends
1
Device Transitions Alter
Network Demand/Use
2
M2M Growth Drives
the Reality of IoE
3
Broadband Speeds: Fixed
versus Wi-Fi
4
Wi-Fi Dominates Access
Technology
5
Content Delivery Networks
(CDNs) & Traffic Topology
6
IP Video Traffic Analysis
(SD, HD & UHD Trends)
7
Residential, Business & Consumer
Mobile Service Adoption
8
Peak versus Average
IP Traffic Growth
9
IPv6 Shows Continued
Global Adoption
10
Tiered Pricing: Comparing
Mobile & Fixed Data Caps

43. Cisco Confidential 43© 2013-2014 Cisco and/or its affiliates. All rights reserved.
VNI Forecast Update, 2013–2018
Top 10 Broadband Networking Trends
1
Device Transitions Alter
Network Demand/Use
2
M2M Growth Drives
the Reality of IoE
3
Broadband Speeds: Fixed
versus Wi-Fi
4
Wi-Fi Dominates Access
Technology
5
Content Delivery Networks
(CDNs) & Traffic Topology
6
IP Video Traffic Analysis
(SD, HD & UHD Trends)
7
Residential, Business & Consumer
Mobile Service Adoption
8
Peak versus Average
IP Traffic Growth
9
IPv6 Shows Continued
Global Adoption
10
Tiered Pricing: Comparing
Mobile & Fixed Data Caps

44. Cisco Confidential 44© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Higher Definition Content Impacts Global IP Video Growth
Ultra-HD IP Video Will Account for 11% of Global IP Video Traffic by 2018
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
Petabytes
per Month
0
20,000
40,000
60,000
80,000
100,000
120,000
2013 2014 2015 2016 2017 2018
Ultra-High Def (UHD) Video (0.1%, 11%)
High Def (HD) Video (36%, 52%)
Standard Def (SD) Video (64%, 37%)
25% CAGR 2013–2018
* Figures (n) refer to 2013, 2018 traffic share

45. Cisco Confidential 45© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Higher Definition Content Impacts LATAM IP Video Growth
Ultra-HD Will Account for 2.5% of LATAM IP Video Traffic by 2018
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
Petabytes
per Month
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2013 2014 2015 2016 2017 2018
Ultra-High Def (UHD) Video (0.1%, 2.5%)
High Def (HD) Video (12%, 36%)
Standard Def (SD) Video (88%, 61%)
28% CAGR 2013–2018
* Figures (n) refer to 2013, 2018 traffic share

46. Cisco Confidential 46© 2013-2014 Cisco and/or its affiliates. All rights reserved.
VNI Forecast Update, 2013–2018
Top 10 Broadband Networking Trends
1
Device Transitions Alter
Network Demand/Use
2
M2M Growth Drives
the Reality of IoE
3
Broadband Speeds: Fixed
versus Wi-Fi
4
Wi-Fi Dominates Access
Technology
5
Content Delivery Networks
(CDNs) & Traffic Topology
6
IP Video Traffic Analysis
(SD, HD & UHD Trends)
7
Residential, Business &
Consumer Mobile Service
Adoption
8
Peak versus Average
IP Traffic Growth
9
IPv6 Shows Continued
Global Adoption
10
Tiered Pricing: Comparing
Mobile & Fixed Data Caps

47. Cisco Confidential 47© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global Residential Market, by 2018:
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
63% (2.5 billion) of Internet users will have
fixed residential internet access.
86% (1.5 billion) TV households will be digital
TV households.
There will be 8 billion fixed residential devices
and connections (up from 3.8 billion in 2013).
Average household will have 3.7 fixed devices
and connections (up from 1.9 in 2013).

48. Cisco Confidential 48© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global Residential Services
By 2018, Online Video Will Grow the Fastest; Digital TV Will Have Highest Adoption
Online
Music
Social
Networking
Online Video
Online
Gaming
VoIP
Digital
TV
Video on
Demand
Time Delayed
TV
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0% 20% 40% 60% 80% 100%
2018 % Adoption
Note: By 2018, the global residential fixed internet population will be 2.5 billion; the number of global
TV households will be 1.8 billion.
CAGR
2013–2018

49. Cisco Confidential 49© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Latin America Residential Market, by 2018:
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
63% (235 million) of Internet users will have
fixed residential internet access.
71% (122 million) TV households will be
digital TV households.
There will be 562 million fixed residential
devices and connections (up from 245 million
in 2013).
Average household will have 3.1 fixed devices
and connections (up from 1.5 in 2013).

50. Cisco Confidential 50© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Latin America Residential Services
By 2018, Online Video Will Grow the Fastest; Social Networking Will Have Highest
Adoption
Note: By 2018, Latin America residential fixed internet population will be 235 million; the number of
Latin America TV households will be 171 million.
CAGR
2013–2018
Online
Music
Social
Networking
Online Video
Online
Gaming
VoIP
Digital TV
Video on
Demand
Time Delayed TV
0%
5%
10%
15%
20%
25%
30%
0% 20% 40% 60% 80% 100%
2018 % Adoption

51. Cisco Confidential 51© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global Consumer Mobile Market, by 2018:
Source: Cisco VNI Service Adoption Forecast, 2013–2018
There will be 4.8 billion consumer mobile
users (64% of population).
There will be 8.9 billion consumer mobile
devices and connections.
Average consumer mobile user will have
1.8 mobile devices and connections (up
from 1.5 in 2013).

52. Cisco Confidential 52© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global Consumer Mobile Services
By 2018, Consumer LBS Will Grow the Fastest;
Mobile Social Networking Will Have the Highest Adoption
CAGR
2013–2018
Note: By 2018, the global consumer mobile population will be 4.8 billion.
MMS
Mobile Social
Networking
Mobile
Email
Consumer
LBS
Mobile Gaming
Mobile Banking
& Commerce
Mobile
Video
Mobile Music
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
2018 % Adoption

53. Cisco Confidential 53© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Latin America Consumer Mobile Market, by 2018:
Source: Cisco VNI Service Adoption Forecast, 2013–2018
There will be 450 million consumer
mobile users (69% of population).
There will be 813 million consumer
mobile devices and connections.
Average consumer mobile user will have
1.8 mobile devices and connections (up
from 1.5 in 2013).

54. Cisco Confidential 54© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Latin America Consumer Mobile Services
By 2018, Consumer LBS Will Grow the Fastest;
Mobile Social Networking Will Have the Highest Adoption
CAGR
2013–2018
Note: By 2018, Latin America consumer mobile population will be 450 million.
MMS
Mobile Social
Networking
Mobile
Email
Consumer LBS
Mobile Gaming
Mobile Banking &
Commerce
Mobile
VideoMobile
Music
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
10% 20% 30% 40% 50% 60% 70% 80%
2018 % Adoption

55. Cisco Confidential 55© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global Business Market, by 2018:
Source: Cisco VNI Service Adoption Forecast, 2013–2018
There will be 2.1 billion business Internet users
(62% of global work force).
There will be 582 million business mobile users
(17% of global work force).
There will be 3.9 billion business devices and
connections (up from 2.5 billion in 2013).
Average business internet user will have
1.8 devices and connections
There will be 1.4 billion business mobile device
and connections (up from 878 million in 2013).
Average business mobile user will have
2.4 mobile devices and connections

56. Cisco Confidential 56© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global Business Services
By 2018 Personal Video Conferencing Will Grow the Fastest;
Mobile SMS Will Have the Highest Adoption
CAGR
2013–2018
Note: By 2018, the global business Internet population will be 2.1 billion; the number of business
mobile users will be 582 million.
SMS
Mobile Email
Room Based Video
Conferencing
IP Telephony
Business LBS
Audio
Conferencing
Desktop Video
Conferencing
Web Conferencing
w/o Video
-10%
0%
10%
20%
30%
40%
50%
60%
-10% 10% 30% 50% 70% 90%
2018 % Adoption

57. Cisco Confidential 57© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Latin America Business Market, by 2018:
Source: Cisco VNI Service Adoption Forecast, 2013–2018
There will be 205 million business Internet users
(68% of global work force).
There will be 59 million business mobile users
(19% of global work force).
There will be 296 million business devices and
connections (up from 205 million in 2013).
Average business internet user will have
1.4 devices and connections
There will be 134 million business mobile device
and connections (up from 90 million in 2013).
Average business mobile user will have
2.3 mobile devices and connections

58. Cisco Confidential 58© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Latin America Business Services
By 2018 Personal Video Conferencing Will Grow the Fastest;
Mobile SMS Will Have the Highest Adoption
CAGR
2013–2018
Note: By 2018, Latin America business Internet population will be 205 million; the number of business
mobile users will be 59 million.
SMS
Mobile
EmailRoom Based
Video Conferencing
IP
Telephony
Business
LBS
Audio
Conferencing
Desktop Video
Conferencing
Web Conferencing
w/o Video
-10%
0%
10%
20%
30%
40%
50%
60%
70%
-10% 10% 30% 50% 70% 90% 110%
2018 % Adoption

59. Cisco Confidential 59© 2013-2014 Cisco and/or its affiliates. All rights reserved.
VNI Forecast Update, 2013–2018
Top 10 Broadband Networking Trends
1
Device Transitions Alter
Network Demand/Use
2
M2M Growth Drives
the Reality of IoE
3
Broadband Speeds: Fixed
versus Wi-Fi
4
Wi-Fi Dominates Access
Technology
5
Content Delivery Networks
(CDNs) & Traffic Topology
6
IP Video Traffic Analysis
(SD, HD & UHD Trends)
7
Residential, Business & Consumer
Mobile Service Adoption
8
Peak versus Average
IP Traffic Growth
9
IPv6 Shows Continued
Global Adoption
10
Tiered Pricing: Comparing
Mobile & Fixed Data Caps

60. Cisco Confidential 60© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Busy Hour vs. Average Hour Internet Traffic
Driven by Video, Busy Hour Grows Faster Than Average Hour
Traffic
(Gbps)
0
200
400
600
800
1,000
1,200
2013 2014 2015 2016 2017 2018
Average Hour
Busy Hour
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
28% CAGR
23% CAGR

61. Cisco Confidential 61© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Busy Hour vs. Average Hour Internet Traffic (LATAM)
Driven by Video, Busy Hour Grows Faster Than Average Hour
Traffic
(Gbps)
0
10
20
30
40
50
60
70
2013 2014 2015 2016 2017 2018
Average Hour
Busy Hour
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
26% CAGR
20% CAGR

62. Cisco Confidential 62© 2013-2014 Cisco and/or its affiliates. All rights reserved.
VNI Forecast Update, 2013–2018
Top 10 Broadband Networking Trends
1
Device Transitions Alter
Network Demand/Use
2
M2M Growth Drives
the Reality of IoE
3
Broadband Speeds: Fixed
versus Wi-Fi
4
Wi-Fi Dominates Access
Technology
5
Content Delivery Networks
(CDNs) & Traffic Topology
6
IP Video Traffic Analysis
(SD, HD & UHD Trends)
7
Residential, Business & Consumer
Mobile Service Adoption
8
Peak versus Average
IP Traffic Growth
9
IPv6 Shows Continued
Global Adoption
10
Tiered Pricing: Comparing
Mobile & Fixed Data Caps

63. Cisco Confidential 63© 2013-2014 Cisco and/or its affiliates. All rights reserved.
1.3B
4.7B
0.7B
5B
0
1
2
3
4
5
6
7
8
9
10
2013 2014 2015 2016 2017 2018
IPv6-Capable Fixed Devices
IPv6-Capable Mobile Devices
Globally, By 2018, Nearly 50% (10B) of all fixed and
mobile devices/connections will be IPv6-capable,
up from 16% (2B) in 2013
37% CAGR
Number
of Devices
(B)
Source: Cisco VNI Global IPV6 Forecast, 2013–2018

64. Cisco Confidential 64© 2013-2014 Cisco and/or its affiliates. All rights reserved.
0.05B
0.3B
0.1B
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
2013 2014 2015 2016 2017 2018
IPv6-Capable Fixed Devices
IPv6-Capable Mobile Devices
0.5B
In LATAM: By 2018, Nearly 49% (0.8B) of all fixed and
mobile devices/connections will be IPv6-capable,
up from 15% (0.1B) in 2013
39% CAGR
Number
of Devices
(B)
Source: Cisco VNI Global IPV6 Forecast, 2013–2018

65. Cisco Confidential 65© 2013-2014 Cisco and/or its affiliates. All rights reserved.
VNI Forecast Update, 2013–2018
Top 10 Broadband Networking Trends
1
Device Transitions Alter
Network Demand/Use
2
M2M Growth Drives
the Reality of IoE
3
Broadband Speeds: Fixed
versus Wi-Fi
4
Wi-Fi Dominates Access
Technology
5
Content Delivery Networks
(CDNs) & Traffic Topology
6
IP Video Traffic Analysis
(SD, HD & UHD Trends)
7
Residential, Business & Consumer
Mobile Service Adoption
8
Peak versus Average
IP Traffic Growth
9
IPv6 Shows Continued
Global Adoption
10
Tiered Pricing: Comparing
Mobile & Fixed Data Caps

66. Cisco Confidential 66© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Usage Limits: Fixed vs. Mobile
Globally, More Mobile than Fixed Users Are Impacted by Usage Limits
Source: Cisco VNI Global IP Traffic Forecast, 2013–2018
Country
% Broadband HH
> 250 GB
% Mobile Users
> 2 GB
Global 2.1% 3.8%
North America 4.7% 21.6%
Western Europe 1.6% 9.5%
Asia Pacific 1.8% 2.3%
Central and Eastern Europe 1.3% 0.9%
Latin America 2.4% 1.0%
Middle East and Africa 0.1% 1.0%

67. Cisco Confidential 67© 2013-2014 Cisco and/or its affiliates. All rights reserved.
Cisco VNI Web Sites
• Press Release
• White Papers / FAQs
• Cisco VNI Web-based Tools / Free Apps
IP Traffic Forecast inquiries: traffic-inquiries@cisco.com
Service Adoption Forecast inquiries: ask-vnisa@cisco.com
IP Traffic Forecast: http://www.cisco.com/go/vni
Service Adoption Forecast: http://www.cisco.com/go/vnisa
Source: Cisco VNI Global IPV6 Forecast, 2013–2018

68. Thank you.