Presentation from iPass CTO, Barbara Nelson at the RCR Wireless conference in San Francisco on December 6, 2011

1. The Evolving Mobile Network
Is 4G Enough?
Is Wi‐Fi Here to Stay?
Be well connected
Name: Barbara Nelson
Title: Chief Technology Officer
iPass
December 2011

2. iPass | Innovation & Market Leadership
11‐year history of Wi‐Fi services innovation
Member of Wireless Broadband Alliance since 2008
Co‐authored Wi‐Fi Alliance WISPr 1.0 protocol, a standard for
connection management software to access Wi‐Fi networks
A driving force in the enablement of in‐flight Wi‐Fi services,
defining technical integrations to meet FAA requirements
21 US patents, 6 international patents and
7 US patents pending
Only company integrating Roam‐in, Roam‐out, Offload and
Exchange services simultaneously on a carrier‐grade platform
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3. iPass | Global Network
Over 650,000 Wi‐Fi hotspots
Over 60,000 Open Access (free) hotspots
1
117 countries and territories served
Over 140 Wi‐Fi network operators
connected
Globally distributed data centers to reduce
authentication latency
Hub and spoke authentication architecture,
redundantly engineered to provide carrier‐
grade 99.999% availability
Certified interoperability with standards‐
based connection manager applications
Continuous rapid expansion with 4x
hotspot growth over the past 12 months
1 As per the ‘ISO 3166’ list of 249 country codes
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4. Forecast | Smartphones and Tablets
Rapid Device Growth Explosive Data Growth Data Offload Critical
92% CAGR OFFLOADED
Not Offloaded
Global Mobile Data Traffic Global Smartphone & Tablet Traffic
(Terabytes / Month) Offloaded (Petabytes / Month)
• 39% of Smartphone
User (CAGR) Traffic (CAGR) and Tablet traffic
offloaded by 2015
Smartphone 24% 116%
Tablet 105% 190% Source:
Cisco Visual Networking Index
Global Mobile Data Traffic Forecast Update
Compound Annual Growth Rate (2010‐2015)
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5. LTE | A big opportunity for Carriers
Lower cost/GB than 3G
Efficient spectrum usage
Simplified network architecture; easier to deploy and operate
2G
3G
Cost/GB (dashed)
OPEX Cost (solid)
Projected Network Costs
Bit/¢
Profit 4G (LTE)
Time
Rollout Phase
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5

6. 4G LTE | Coverage is growing
GSA confirms almost 200 operators investing in LTE:
commitments up 118%
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7. 4G | So, is LTE enough?
Not today
• Initial coverage limitations
• Limited spectrum, and spectrum is expensive
• Mobile data demand continues to exceed supply
Not in the future
• Build‐out can’t keep up with projected data demands
• Cost per MB is lower on Wi‐Fi
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8. 4G | What role will Wi‐Fi play?
Wi‐Fi is becoming an increasingly important and
integrated component of today’s mobile network fabric
Mobile broadband is not a replacement for Wi‐Fi; rather,
the two technologies are complementary 1
Wi‐Fi will be more relevant in the 4G era than it was in 3G
Heterogeneous Networks (HetNets) is the clear industry
direction to increasing cellular capacity and coverage
1 ‘Rationalizing Wi‐Fi Services, Current and Future Opportunities’ – IDC, August 2011
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9. Wi‐Fi | Investment Drivers
Business drivers for Carrier Wi‐Fi investments – it’s not
just about Offload
Source: ‘Global Developments in Public Wi‐Fi’, WBA Industry Report 2011
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10. Wi‐Fi | Global Shipment Forecast
The number of WLAN chipsets shipments continues to
grow rapidly, reaching more than 2 billion units by 2014
Expected to double in 2011 alone
Global Shipment Forecast
+2 billion Wireless Local Area
Networking (WLAN) Chipsets
(Millions of Units)
2x growth
Source: IHS iSuppli Research, February 14, 2011
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11. Wi‐Fi | Number of Global Public Hotspots
2009 – 2015 (Forecast)
2nd Wave
Carrier‐deployed Wi‐Fi
Source: ‘Global Developments in Public Wi‐Fi’, WBA Industry Report 2011
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12. iPass | Global Wi‐Fi Network Growth
2007 – Present
700,000
650,000
400% growth
600,000
500,000
400,000
300,000
200,000
1st Wave 2nd Wave
User‐deployed Wi‐Fi Carrier‐deployed Wi‐Fi
100,000
‐
Wi‐Fi Hotspots
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13. Wi‐Fi | Integrated Connectivity
Without Integration
Manual
Login
Locate Request Credentials Write Down Input
Landing Page Connected
Hotspot by SMS Credentials Credentials
ONE CLICK
Login
Click Connect Connected
With Integration
ZERO CLICK
Login
Connected
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14. Wi‐Fi | Carriers Driving Growth
1. “Wi‐Fi deployments are predicted to rise 350%
by 2015”
2. “58% of operators, including 47% of mobile
operators, believe Wi‐Fi hotspots are either very
important or crucial to enhance their customers
experience; offload busy mobile broadband
networks; and provide a value‐added services
platform.”
Source: ‘Global Developments in Public Wi‐Fi’, WBA Industry Report 2011
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15. Wi‐Fi | Carrier Announcements
China Telecom: 1,000,000 hotspots
China Mobile: 1,000,000 hotspots
Oi (Brazil): 1,000,000 hotspots
KT (South Korea): 100,000 hotspots
KDDI (Japan): 100,000 hotspots
SK Telecom (South Korea): 51,000 hotspots
Deutsche Telekom announced Wi‐Fi Mobilize,
based on iPass Open Mobile Exchange
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16. Carrier | Wi‐Fi Initiatives
China Mobile to deliver Wi‐Fi Exchange services
“Building out our Wi‐Fi network is the fastest way for us to meet the
increasing Web demand by our smartphone and tablet users...”
Wang Jianzhou, CEO of China Mobile
Source: Marketwire, October 25, 2011
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17. Carrier | Wi‐Fi Initiatives
AT&T Wi‐Fi access triples in Q3
Users made 301.9 million Wi‐Fi connections in Q3 2011, a
282% increase over connections made in Q3 2010
AT&T signs agreement to acquire Wi‐Fi management
services provider Superclick to expand premium services
in the high‐end hospitality sector, domestically and
internationally
AT&T launches ‘Call International’ a free mobile app
allowing customers to make international long‐distance
calls over Wi‐Fi
Sources: Wireless Week, October 24, 2011
Engadget, November 8, 2011
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18. Summary |
Is 4G Enough? Never!
Is Wi‐Fi Here to Stay? Absolutely!
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19. TM
OMX | Open Mobile Exchange
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