Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

The State of Telecom – 2012

Over the Top: New Business Models with New International Telecom Rules?

Jacquelynn Ruff Vice President, International Public Policy & Regulatory Affairs September 24, 2012

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 2

Broadband for Economic and Societal Growth

The enduring source of Verizon’s value is the central role we play in an industry vital to the global economy and deeply embedded in the

lives of our customers.

© 2012 Cisco and/or its affiliates. All rights reserved. This document is Cisco Public. Page 6 of 29

Figure 2. Global Mobile Data Traffic Forecast by Region

In the sections that follow, we identify 10 major trends behind the growth of mobile data traffic.

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 3

A Complex Competitive Landscape

Consumer  Content  

Government  Services  

Consumer  Electronics  

Applica2ons/  Opera2ng  Systems  

Broadband  Providers  

Consumer  Electronics  

Consumer  Content  

CONSUMER  IN    

CHARGE  

Broadband  Providers  

Commercial  Content  

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 4

Business Transformation

Advanced global assets, basis for innovative business models

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 5

Cloud Enabled Data Center

Cloud Solutions for a Connected World

Data Center

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 6

Collaboration and Partnering

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 7

Innovation and Socio-Economic Benefits

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 8

New International Telecom Rules

Enable or impede global Internet growth and usage?

Innovation

Investment

Adoption