A Fresh Look at the Future of Long Term Evolution (LTE)

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  • 1. Telematics Detroit 2010 Maurice Thompson Director – Open Development June 2010
  • 2. “Safe Harbor” Statement Verizon Wireless NOTE: This presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, which may include or be preceded by such words as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We assume no obligation to update or revise any forward- looking statement. The following important factors, in addition to those discussed under “Risk Factors” in our Annual Report on Form 10-K (No. 333-160446), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: changes in economic conditions; our ability to complete transactions relating to acquisitions and dispositions, including the integration of the Alltel business; changes in the ratings of our debt securities or those of Verizon Communications; adverse conditions in the credit markets impacting cost or availability of financing sufficient to meet our capital requirements; our ability to acquire and retain customers; our continued provision of satisfactory service to our customers at an acceptable price; the effects of competition; our ability to adapt to changing conditions in the wireless industry; the ability of our key suppliers to meet their obligations to us; the effects of material changes in available technology, including technology substitution and the cost of deployment; the impact of continued unionization efforts with respect to our employees; adverse regulatory and taxation developments; the effects of litigation; the impact of equipment failures, natural disasters, terrorist acts or other breaches of network or information technology security; and the effects of any required future changes in accounting assumptions.
  • 3. Smartphone Applications
  • 4. Turbo-Charging 3G Demand
  • 5. Wireless Data Trends Terabytes 4,000 3G 3,000 2,000 2G 1,000 0 2004 2009
  • 6. LTE Expectations Terabytes Projections 4,000,000 3,000,000 LTE 2,000,000 3G 1,000,000 0 2010 2014
  • 7. More on the Way Advanced Applications Innovative Devices Wherever You Are
  • 8. Mobile Infotainment Multi-Media Experience Enhanced Vehicle Internet Radio OS Such As And Video Android Internet Access Mobile Commerce: Augmented Reality App & Content Store Connected Home Controls Vehicle To Vehicle Communications Built-in Wi-fi Off-board (Broadband Navigation, Traffic, Speed) Weather, POI
  • 9. Current Technology Still has More to Offer 3G Scalability • 1.25MHZ • EVDO (Data Only) • Very efficient Voice technology • Common Backhaul 9
  • 10. + An Unequalled Global Wireless Footprint
  • 11. LTE Drivers More Speed More Capacity More Performance Dominant Global Standard Global roaming Performance Throughput - Capacity - Low Latency Scale Economics Device Ubiquity New Service Opportunities
  • 12. Positioned Well to Meet the Demand Luxury High Rise Hotel Beachfront
  • 13. Verizon 4G License Map 700Mhz The Only Carrier With Contiguous 4G Spectrum
  • 14. Building Penetration Comparison Each frequency has a different rate of energy decay, with higher frequencies decaying faster Broadcast power same across frequencies 2500 2100 1900 800 MHZ 700 MHZ MHZ MHZ Cellular MHZ BRS AWS PCS LTE Relative distance 1x 1.18x 1.3x 2.9x 3.5x 700 MHz Delivers superior building penetration 15
  • 15. LTE Performance Throughput Latency 10 4 30 ms 6 2 0 0 ~5 - 12Mb ~2 - 5Mb EV-DOrA LTE 150 ms 8 160 6 120 Mbps 4 msec 80 2 40 0 0 Today LTE Today LTE
  • 16. LTE - Enhances Existing Offerings Existing Services Enhanced Benefit • Emergency & security • Lower latency emergency response • Vehicle diagnostics • Simultaneous voice/data • Navigation • Over-the-air software updates • Concierge • Improved garage penetration • Global compatibility Expanding Opportunities through Enhanced Customer Experience
  • 17. 4G – LTE Ecosystem 4G Venture Forum  Innovation Center  Hosted   applications  Service Delivery Platform  Wireless chip technology  LTE  Open Development  Ecosystem  App. Store & Delivery  Automotive   Handset Apps  VzW VCAST  Storefront  Joint Innovation Lab  Vehicle Apps  VCAST  for   Vehicles  Telematics Control Unit  VzW Hosted 
  • 18. Thank you. To learn more about Open Development, log on to verizonwireless-opendevelopment.com or call 1.800.858.5901