Leadership Council Meeting

San Diego, Oct 6, 2009 Room: 29A October 6, 2009 1 Wireless Internet Caucus

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WIC Leadership Council - Meeting Agenda

3:30 – 3:40 pm Welcome & Introductions – David Diggs

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3:40 – 3:50 pm CTIA – Wireless Industry Metrics – Robert Roche

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3:50 – 4:10 pm Current Initiatives

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Camera Phone Code Scan - Athena Polydorou

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Off Portal – Jeff Simmons

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Mobile Content - Athena Polydorou

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Mobile Advertising - Jeff Simmons

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4:10 – 4:30 pm

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4:30 – 5:00 pm Future Initiatives Wireless Internet Caucus Structure The WIC Leadership Council Reception Immediately following; Terrace at San Diego Convention Center

Sponsored by:

Introduction and Welcome

Presented by: David Diggs, CTIA-The Wireless Association

 Wireless Internet Caucus San Diego, Oct 6, 2009 3

Wireless Internet Caucus San Diego, Oct 6, 2009 4

Introduction and Welcome

Presented by: David Diggs, CTIA-The Wireless Association

 Wireless Internet Caucus San Diego, Oct 6, 2009 5

Wireless Internet Caucus San Diego, Oct 6, 2009 6

“This is the time we were all dreaming about. It’s here now. Let’s not blow it.”

Steve Spencer

Wireless Internet Caucus San Diego, Oct 6, 2009 7

WIC Manifesto, Feb 2002

• Leadership: Key decision makers create a unified approach to solving problems • Communication: Industry forum to develop common frameworks, common language, consensus on critical issues • Coordinated problem-solving: Cross-industry action teams to tackle challenges and develop solutions Wireless Internet Caucus San Diego, Oct 6, 2009 8

Wireless Internet Caucus

Wireless Metrics

Dr. Robert F. Roche CTIA-The Wireless Association

 October 6, 2009

Metrics Focus

• • •

Key Initiative:

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On-going Collection and

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Publication of Cross-Carrier Metrics Step One – Review Survey Modifications Step Two – Report on Latest Survey Results

Wireless Internet Caucus San Diego, Oct 6, 2009 10

Key Initiative One

– Review Cross-Carrier Metrics • Survey includes metrics related to:

Revenues

Maintained requests for total data revenues, as well as: – –

:

Total revenues from data-only plans using Aircards or laptop-embedded modems for the six month period.

Total revenues for data services on wireless-enabled PDAs and Smartphones for the six-month period ending. – not currently reportable – Total revenues from data service subscriptions for the six-month period. Eliminated requests for Game play / download revenues, Non-game download revenues, Ringtone revenues, and Enterprise Applications revenues.

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Traffic:

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measures such as

Maintained requests for SMS / Text messages (including IM) and MMS messages.

Eliminated requests for Pictures and E-mail traffic.

Added requests for number of MB on the networks for the six month period – not currently reportable •

Usage & Capability measures such as:

Maintained requests for Number of data-capable devices; SMS-capable devices; web-capable devices; PDAs / Smartphones; and wireless-enabled laptops, aircards, and wireless modems on networks.

Eliminated requests for MMS-capable devices, Number of camera phones on networks – Added request for number of machine-to-machine units active on networks – not currently reportable.

Wireless Internet Caucus San Diego, Oct 6, 2009 11

Six-Month Wireless Service Revenues

• Total six-month industry revenues = $75.8 billion, up from $72.7 billion in 1H2007.

• Total 12-month industry revenues = $151.2 billion for July 2008-June 2009, up from $143.7 billion for July 2007-June 2008.

• Total six-month wireless data revenues = $19.5 billion, up from $14.8 billion in 1H2007.

• Total 12-month wireless data revenues = $37 billion, up from $27.5 billion in July-June 2008.

Wireless Internet Caucus San Diego, Oct 6, 2009 12

Top-Line Measures – Six-Month Total Wireless Data Revenues

$80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $2 4,6 45 ,3 65 $2 7,8 20 ,6 55 $3 0,9 05 ,7 $3 4,4 10 ,5 14 21 $3 6,7 07 ,0 $3 86 9,8 01 ,1 01 $4 1,3 84 ,1 $4 6,2 39 ,9 22 71 $4 9,2 75 ,6 $5 2,8 45 ,5 39 71 $5 5,6 89 ,2 $5 08 7,8 49 ,0 13 $6 0,4 50 ,6 69 $6 5,0 06 ,1 56 $6 7,8 87 ,6 68 $7 0,9 81 ,6 36 $7 2,7 28 ,7 $7 64 5,3 55 ,4 $7 06 5,8 48 ,3 19 $20,000,000 $10,000,000 $0 Jun 00 Dec 00 Jun 01 Dec 01 Jun 02 Dec 02 Jun 03 Dec 03 Jun 04 Dec 04 Jun 05 Dec 05 Jun 06 Dec 06 Jun 07 Dec 07 Jun 08 Dec 08 Jun 09

Wireless Internet Caucus Source: CTIA Semi-Annual Wireless Survey

Data Service Revenues

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12-Month Wireless Data Revenues Are Up 34.6%

$40,000,000 $37,001,760 $35,000,000 $30,000,000 $27,480,549 $25,000,000 $20,000,000 $19,288,451 $15,000,000 $11,251,764 $10,000,000 $6,350,020 $5,000,000 $726,986 $0 Jun-02

Wireless Internet Caucus Source: CTIA Semi-Annual Wireless Survey

$1,193,014 Jun-03 $3,199,390 Jun-04 Jun-05 Jun-06

San Diego, Oct 6, 2009

Jun-07 Jun-08 Jun-09

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80% 70% 60% 50% 40% 30% 20% 10% 0%

Wireless Data ARPU Trended

Wireless Data as a Percentage of Monthly Subscriber ARPU 100% 0.1

% 0.2

% 0.4

% 0.4

% 0.6

% 0.9

% 1.1

% 1.2

% 1.7

% 2.5

% 4.1

% 4.8

% 6.8

% 8.3

% 10 .7

% 13 .5

% 15 .5

% 17 .9

% 20 .3

% 23 .3

% 25 .7

% 90%

Wireless Internet Caucus Source: CTIA Semi-Annual Wireless Survey 15

Traffic Measures increase year-over-year

– SMS / Text messaging: • Monthly volume of 135b up 79.8% year-over-year (from 75.1b) • Six-month volume 740.3b up 92% year-over-year (from 384.9b) – MMS: • Monthly volume of 1.8b up 71% year-over-year (from 1.1b) • Six-month volume of 10.3b up 83% year-over-year (from 5.6b) Wireless Internet Caucus Source: CTIA Semi-Annual Wireless Survey San Diego, Oct 6, 2009 16

Traffic Measures –

800,000,000,000 700,000,000,000

Six-Month SMS / Text Traffic

Reported Six-Month Text Traffic Grows 92% Year-Over-Year 62 0,1 77 ,6 49 ,3 58 74 0,2 99 ,5 72 ,2 44 600,000,000,000 500,000,000,000 38 4,9 66 ,4 93 ,7 78 400,000,000,000 300,000,000,000 200,000,000,000 100,000,000,000 24 ,7 14 ,9 52 ,9 24 32 ,5 44 ,0 05 ,6 69 48 ,6 64 ,2 20 ,0 98 64 ,8 21 ,4 73 ,8 55 93 ,8 27 ,0 72 ,9 43 14 6,9 90 ,0 32 ,3 34 21 5,5 59 ,4 98 ,8 38 0 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08

Wireless Internet Caucus Source: CTIA Semi-Annual Wireless Survey San Diego, Oct 6, 2009

Dec-08 Jun-09

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160,000,000,000 140,000,000,000

Traffic Measures – Monthly SMS / Text Traffic

13 5,1 72 ,0 65 ,35 2 120,000,000,000 100,000,000,000 80,000,000,000 75 ,08 8,4 75 ,2 65 60,000,000,000 40,000,000,000 20,000,000,000 12 ,21 2,9 38 33 ,52 2,0 10 0 Jun-00 Jun-01

Wireless Internet Caucus Source: CTIA Semi-Annual Wireless Survey

93 0,7 10 ,5 40 Jun-02 1,2 21 ,0 37 ,5 24 2,8 61 ,5 61 ,7 57 7,2 52 ,7 25 ,9 60 12 ,53 1,5 67 ,4 17 28 ,88 1,8 47 ,5 70 Jun-03 Jun-04

San Diego, Oct 6, 2009

Jun-05 Jun-06 Jun-07 Jun-08 Jun-09

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12,000,000,000

Traffic Measures – Six-Month MMS Traffic

Reported Six-Month MMS Traffic Up 83% Year-Over-Year 10,000,000,000 9,304,980,514 10,317,919,613 8,000,000,000 6,000,000,000 5,627,905,174 4,000,000,000 3,494,686,474 2,605,243,207 2,000,000,000 848,021,269 1,138,563,387 1,588,444,746 284,754,607 0 Jun-05 Dec-05

Wireless Internet Caucus Source: CTIA Semi-Annual Wireless Survey

Jun-06 Dec-06 Jun-07

San Diego, Oct 6, 2009

Dec-07 Jun-08 Dec-08 Jun-09

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Traffic Measures – Monthly MMS Traffic

Reported Monthly MMS Traffic Up 71.4% Year-over-Year 2,000,000,000 1,800,000,000 1,600,000,000 1,400,000,000 1,200,000,000 1,000,000,000 800,000,000 750,501,525 600,000,000 472,884,455 400,000,000 181,546,975 210,526,280 200,000,000 79,097,689 0 Jun-05 Dec-05

Wireless Internet Caucus Source: CTIA Semi-Annual Wireless Survey

Jun-06 315,589,226 Dec-06 Jun-07

San Diego, Oct 6, 2009

Dec-07 1,059,017,274 Jun-08 1,599,058,009 Dec-08 1,815,205,941 Jun-09

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3,500

Available Annual Traffic Measures – Voice and Data

Minutes and Messages as a Measure of Wireless Usage These measures don't even include the traffic generated by millions of wireless users browsing the web, downloading music and games, or accessing other content with their wireless devices.

15 3,000 1,005 2,500 6 363 2,000 3 159 1 81 1,500 2,203 1,000 2,119 1,798 1,495 500 0 2005

Wireless Internet Caucus Source: CTIA Semi-Annual Wireless Survey

2006 2007 MMS Messages 2008

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4,000 3,500

12-Month Traffic Measures – Voice and Data

Minutes and Messages as a Measure of Wireless Usage These measures don't even include the traffic generated by millions of wireless users browsing the web, downloading music and games, or accessing other content with their wireless devices.

20 3,000 2,500 2,000 1,500 1,000 0 57 1,260 500 0 Jun-05

Wireless Internet Caucus Source: CTIA Semi-Annual Wireless Survey

2 113 1,678 Jun-06 4 241 1,955 Jun-07 9 601 2,226 Jun-08 MMS Messages 1,360 2,237 Jun-09

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2,500

Semi-Annual Traffic Measures – Voice and Data

2,000 10 9 1,500 1,000 1 49 1 65 2 94 3 147 3 216 33 25 1,104 500 1,014 941 820 858 585 $53.78

675 $52.19

$50.70

$49.39

$50.01

$49.81

$50.14

0 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Semi-annual Voice Traffic

Wireless Internet Caucus Source: CTIA Semi-Annual Wireless Survey

Semi-annual Text Traffic Semi-annual MMS Traffic

San Diego, Oct 6, 2009

6 385 1,122 $49.51

Jun-08 620 1,081 $49.87

Dec-08 740 1,156 $49.43

Jun-09 Total ARPU (including toll & roaming)

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Consumer Metrics – Total Reported Subscribership

300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 -

Wireless Internet Caucus Source: CTIA Semi-Annual Wireless Survey San Diego, Oct 6, 2009 24

Consumer Metrics – devices and users

Based on sequential questions: • 265.3 mm total reported subscribers (overall survey) • 235.3 mm SMS-capable devices on data survey respondents’ networks • 246.7 mm data-capable handsets on data survey respondents’ networks • 237.1 mm web-capable handsets on data survey respondents’ networks Wireless Internet Caucus Source: CTIA Semi-Annual Wireless Survey San Diego, Oct 6, 2009 25

Consumer Metrics – devices and users

Based on sequential questions: • 168 mm SMS customers on respondents’ networks • 88.8 mm MMS customers on respondents’ networks • 41 mm Smartphones & PDAs on respondents’ networks • 10.8 mm wireless-enabled laptops, aircards, & wireless modems on respondents’ networks Wireless Internet Caucus Source: CTIA Semi-Annual Wireless Survey San Diego, Oct 6, 2009 26

What Has Changed?

• We eliminated multiple revenue questions: – Enterprise Applications Revenues – discontinued – Messaging (MMS and SMS) Revenues - discontinued – Downloadable Content Revenues (total, as well as selected break outs) - discontinued – Mobile Video Content Revenues – discontinued • We have added traffic questions (MB), and first machine-to-machine question Wireless Internet Caucus San Diego, Oct 6, 2009 27

How do the revenue questions currently read?

11. Total revenues from data-only plans using Aircards or laptop embedded modems for the six month period.

12. Total revenues for data services on wireless-enabled PDAs and Smartphones for the six-month period.

13. Total revenues from data service subscriptions for the six-month period. (Internet access and web browsing.) 14. Sum total revenues for all wireless data services provided in the six-month period.

Wireless Internet Caucus San Diego, Oct 6, 2009 28

Leadership Council

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Current Action Teams

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Camera Phone Code Scan Off Portal Mobile Content Mobile Advertising

Wireless Internet Caucus 29

Code Scan Action Team

Wireless Internet Caucus

Presented by: Athena Polydorou, CTIA-The Wireless Association

 Wireless Internet Caucus San Diego, Oct 6, 2009

Team Charter and Activities

• Goal: develop standards and assist development of a camera phone barcode scanning market in the U.S.

• Published white papers, available at www.ctia.org/codescan : • Code Scan White Paper (2008) • Marketing Guide for Camera-Phone Based Barcode Scanning (2009) Wireless Internet Caucus San Diego, Oct 6, 2009

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Recent Activities

Team identified need for: –

Central Registry:

Registration authority for the code scanning ecosystem primarily responsible for creating identifiers.

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Central Clearing House:

Responsible for directing traffic, routing codes and enforcing ecosystem policies. In addition, the Clearing House will manage metadata and accounting data.

• Separate RFPs developed for the Registry and Clearing House with the intent to release Q3 2009 Wireless Internet Caucus San Diego, Oct 6, 2009

Current Status

• CTIA sought guidance on: – Scheduling the release of the RFPs – Feedback on the legal landscape/patent IP litigation • Result: Insufficient carrier support to move forward with the release of the RFPs.

Wireless Internet Caucus San Diego, Oct 6, 2009

Off-Portal Action Team

Wireless Internet Caucus

Presented by: Jeff Simmons, CTIA-The Wireless Association

 Wireless Internet Caucus San Diego, Oct 6, 2009

Objectives

• Ongoing, rigorous assessment of 3 rd Party content providers compliance with Industry Best Practices for CSC-based services • Improvement of industry monitoring system to enable better compliance with CSC Best Practices 35 Wireless Internet Caucus San Diego, Oct 6, 2009

Registry Improvements

• • • • Implement a Standard Campaign Application (SCA) Includes All Fields required by all Mobile Carriers to Approve and Provision Mobile Campaigns Required Information in Consistent Format is Essential to an Effective Monitoring Effort – Tie Monitoring to Registry Registry Application Data Must Be Maintained and Kept Current – Used to Monitor Compliance with Best Practices – Missing or Incomplete Data May Prevent Lessee from Adding New or Renewing Existing CSCs Wireless Internet Caucus San Diego, Oct 6, 2009 36

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Campaign Brief Monitoring testing and tool enhancements

Updated testing criteria to match MMA 4.0 guidelines New testing in place

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All front end carrier-specific tests now implemented Back end subscription renewal and billing checks now implemented Engagement among industry to enhance usability, standardization

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Improved interactive features for better communication

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Improved data search, organization, links to facilitate aggregator responsiveness

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Harmonization of tests, severity levels across carrier requirements

37 37 Wireless Internet Caucus San Diego, Oct 6, 2009

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Partner connectivity and carrier comparison testing initiatives

Ensured connectivity and successfully completed test drives with leading aggregators

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Aggregators able to access/evaluate their CSC data within tool Aggregators getting email alerts on ‘Red’ CSC violations Aggregators able to file protests and request re-tests – with supporting comments/attachments within tool Implemented content provider ‘view only’ access to data

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Now confirming equivalence to carriers’ internal programs

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Ensure all appropriate carrier monitoring criteria included in protocols Ensure proper interpretation of carrier monitoring criteria

38 Wireless Internet Caucus San Diego, Oct 6, 2009 38

Data exchange and API development to improve monitoring program

• • • • • Carrier approved CSC program data (via email) driving CSC testing queue New Registry data to also feed into CSC testing program; initially to provide accurate partner data, ultimately to speed up testing CSC monitoring data (identifying more serious ‘Red’ violations) to feed into Registry to provide enforcement mechanism Initial implementations email/FTP with API mechanisms to follow Aggregators now enabling CSC partner data updates via helpdesk/protest functionality (i.e., correct CP/agg) 39 39 Wireless Internet Caucus San Diego, Oct 6, 2009

In-Market Media Monitoring

• Selection and Implementation of Service Provider – April 2009 • • Refinement of Severity Levels for Violations of CBP Focus on Issues Significantly Impacting Consumers and Gaining Attention of Regulators and States’ Attorneys General Wireless Internet Caucus San Diego, Oct 6, 2009 40

Next Steps

• Refinement of monitoring tests until industry and individual monitoring programs are indistinguishable • Comparison testing by participating carriers and assessment of industry monitoring program • Opportunity for individual carriers to begin decommissioning internal monitoring programs Wireless Internet Caucus San Diego, Oct 6, 2009 41

Mobile Content Action Team

Games Rating Initiative

Presented by: Athena Polydorou, CTIA-The Wireless Association

 Wireless Internet Caucus San Diego, Oct 6, 2009

Current Initiative

• • • Implement industry’s November 2005 commitment to develop voluntary content classification standards and access controls for Carrier Content, as well as content access controls for the Internet Mobile Games is the first content type to be addressed Industry reached agreements with the top mobile game publishers and the ESRB on a ratings process for mobile games Wireless Internet Caucus San Diego, Oct 6, 2009

Current Initiative

• • • Planned announcement at CTIA Wireless 2009 that, beginning in Q4 2009, only games rated by the ESRB would be available for purchase on carrier decks Carriers committed to display the ESRB rating as part of the merchandizing of the game on the carrier’s deck and Web site Two issues arose to halt announcement: – Off-deck/online app stores had not been considered – The depth and breadth of online app store catalogs made extending the requirement to limit the mobile games they offer to only those rated by ESRB unrealistic Wireless Internet Caucus San Diego, Oct 6, 2009

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Wireless Industry Outreach to App Stores

On July 30th, Steve Largent invited CEOs of app stores to join the mobile games rating display initiative: • • • • Apple Google Handango Handmark •Microsoft •Nokia •Palm •RIM • No specific deadline was set for implementation from app stores; only the commitment to include games ratings Wireless Internet Caucus San Diego, Oct 6, 2009

Mobile Advertising Action Team

Wireless Internet Caucus

Presented by: Jeff Simmons, CTIA-The Wireless Association

 Wireless Internet Caucus San Diego, Oct 6, 2009

Main Objectives of Team Charter

• • • • • Advertising Potential - $24 billlion by 2013* Various Challenges Result in Advertisers Merely Experimenting with Mobile – Lack of common metrics, reporting methods – – Lack of common, consistent targeting data Lack of consistent inventory GSMA Success in Europe – Combined Carrier Working Group Strength in Numbers – Unique value proposition in unified carrier group – Efficient and effect growth Key Deliverables – Measurement & reporting – – – Targeting Advertising Inventory Address privacy concerns * - ABI Research Wireless Internet Caucus San Diego, Oct 6, 2009

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Current Deliverables

Standardized Mobile Metrics and Definitions – Six metrics and definitions, measure effectiveness of mobile ads – – Common across advertising mediums, describe mobile audience CPNI / FTC Behavioral Marketing Compliant • 3 rd – – Party Ad Serving Terms & Conditions Rewrite of IAB 3 rd party ad serve T&Cs for Internet Ads Adapted to mobile • Pilot Launch and Ongoing Aggregation of Carrier Log File Data – All carriers agree to move forward; AT&T, VZW to provide initial data – Sprint, TMO to begin adding their data shortly Wireless Internet Caucus San Diego, Oct 6, 2009

Mobile Advertising Metrics & Definitions

Term Unique Subscriber Ad Impression Click Click Through Rate (CTR) Unique Clickers Unique Penetration Rate (UPR)

Wireless Internet Caucus

Definition An identified and unduplicated individual mobile subscriber who accesses mobile content or advertising during a measurement period.

A response measurement from an ad delivery system to either (1) an explicit request from the subscriber or (2) an automated response from the system based on other user actions/inaction that is recorded at a point as late as possible in the process of delivery of the creative material to the device.

A response measurement from an explicit subscriber request to select/click the advertisement.

The calculation of Clicks/Ad Impressions during a measurement period.

An identified and unduplicated individual mobile subscriber with a qualified “click” during a measurement period.

The calculation of Unique Clickers/Unique Subscribers during a measurement period.

San Diego, Oct 6, 2009

Leadership Council Future Initiatives

Ringback Copy Advertising Metrics Common APIs LBS Interoperability Spam

Wireless Internet Caucus San Diego, Oct 6, 2009

Leadership Council Going Forward . . .

Who Belongs Here?

Who’s Missing? What Initiatives?

Structure?

Wireless Internet Caucus San Diego, Oct 6, 2009

Sponsored by: