Compelling Mobile Business Models January 12, 2008 present Keynote: Jeff Glass - Bain Capital Ventures Ajay Agarwal - Bain Capital Ventures Speakers: Bryan Barletta, Director of Marketing - AppVee Mihael Mikek, President and CEO – Celtra Casey Jones, VP of Business Development – MocoSpace Jorey Ramer, Founder and VP Corporate Development – Jumptap David Nowicki, VP Marketing and Product Management – Airvana Mark Lowenstein, Mobile Ecosystem

Boston Mobile Cluster Map

Boston Mobile Investment 2002 – 2008 in millions

Boston Mobile Investment by 2008 Quarter

Total Boston Mobile Companies Receiving Venture Funding in 2008

Mobile Startup Landscape Ajay Agarwal & Jeff Glass, Managing Directors Mobile Monday, Langham Hotel, Boston January 12, 2009 Bain Capital Ventures

Mobile Monday Deck Mobile Startup Landscape Introduction Source: Rutberg & Co. Wireless Industry Newsletter, Dec ‘08 Global Venture Capital Mobile Financing

Mobile Monday Deck

Mobile Monday Deck Mobile Startup Landscape Introduction Lemming University

Mobile Monday Deck

Mobile Monday Deck Global Venture Capital Mobile Financing Mobile Startup Landscape Introduction Source: Rutberg & Co. Wireless Industry Newsletter, Dec ‘08 ?

Mobile Monday Deck

About Bain Capital Ventures Mobile Monday Deck Mobile Startup Landscape Introduction Since our founding in 1984, Bain Capital has been an extremely active early stage investor and has a deep track record in the mobile space Our Mobile Portfolio (acquired by VeriSign) First investment was a $600,000 seed investment in Staples Seed investors in Aspect Development, which was ultimately sold to I2 in 2000 for $9B Other early stage venture successes include DoubleClick, Shopping.com, eCredit, and Taleo (TLEO) and Staples Over the years, Bain Capital has made more than 60 early stage investments Today, we has over 25 active early stage companies in our portfolio Our Early-Stage Focus Unparalleled Access to the Fortune 2000 and 350+ portfolio companies across Bain Capital, yielding valuable customers and partnerships People – our 30-person Venture team allows us to take an active, engaged role in partnering with entrepreneurs Analytical Approach – we offer deep strategic and operational experience Our Value to the Entrepreneur

Mobile Monday Deck

First investment was a $600,000 seed investment in Staples

Seed investors in Aspect Development, which was ultimately sold to I2 in 2000 for $9B

Other early stage venture successes include DoubleClick, Shopping.com, eCredit, and Taleo (TLEO) and Staples

Over the years, Bain Capital has made more than 60 early stage investments

Today, we has over 25 active early stage companies in our portfolio

Unparalleled Access to the Fortune 2000 and 350+ portfolio companies across Bain Capital, yielding valuable customers and partnerships

People – our 30-person Venture team allows us to take an active, engaged role in partnering with entrepreneurs

Analytical Approach – we offer deep strategic and operational experience

Mobile Monday Deck Mobile Startup Landscape Market Overview The mobile ecosystem is undergoing systemic change The network is becoming commoditized, and voice ARPU is dropping rapidly. In fact, it has dropped 19% since Q1 2005. Smartphone penetration is increasing and operating systems are becoming more open, lead by OS X, Android, Symbian and Blackberry. This is leading to the proliferation of mobile application development. The balance of power is shifting from carriers to operating system providers as they become the gatekeeper to the phone and the consumer. Apple, Google, and RIM have now all launched app stores where they decide which applications can participate, not the carrier. The market is expanding as Smartphones become a viable laptop replacement New form factors such as Mobile Internet Devices, navigation devices, digital cameras, and e-readers are starting to include Wi-Fi capability. Mobile phones are continuing to replace landlines, and new technology such as femtocells and Wi-Fi enabled mobile phones will only heighten this trend. 1 2 3 4 5 The net result will be an expanded market for mobile data services, and an opportunity for new startups. Although the market for these services is projected to be large, it’s not clear how revenue will be shared amongst participants, which leaves room open for new and innovative business models.

Mobile Monday Deck

The mobile ecosystem is undergoing systemic change

The network is becoming commoditized, and voice ARPU is dropping rapidly. In fact, it has dropped 19% since Q1 2005.

Smartphone penetration is increasing and operating systems are becoming more open, lead by OS X, Android, Symbian and Blackberry. This is leading to the proliferation of mobile application development.

The balance of power is shifting from carriers to operating system providers as they become the gatekeeper to the phone and the consumer. Apple, Google, and RIM have now all launched app stores where they decide which applications can participate, not the carrier.

The market is expanding as

Smartphones become a viable laptop replacement

New form factors such as Mobile Internet Devices, navigation devices, digital cameras, and e-readers are starting to include Wi-Fi capability.

Mobile phones are continuing to replace landlines, and new technology such as femtocells and Wi-Fi enabled mobile phones will only heighten this trend.

The net result will be an expanded market for mobile data services, and an opportunity for new startups.

Although the market for these services is projected to be large, it’s not clear how revenue will be shared amongst participants, which leaves room open for new and innovative business models.

Historical Acquisition Activity Mobile Monday Deck Mobile Startup Landscape Business Models Source: CapitalIQ, Bernstein Research – Nokia, July ‘08 Note: 1. Exits are for Wireless / Mobile / Cellular companies in US / Canada or Developed Europe backed by a financial sponsor acquired for > $100mm btwn. 1/1/00 and 1/1/07 as of 1/1/09. 2. Consumer Indirect Applications are applications purchased by Carriers / Handset manufacturers and preinstalled on phone while Consumer Direct applications are sold directly to the consumer. Historically, the bulk of acquisition dollars have gone to service providers, infrastructure software developers and hardware designers… Voice-C entric Ecosystem Historically, carriers controlled the mobile ecosystem because they: Owned the relationship with the consumer Determined handset subsidies Controlled application availability Carriers competed with each other based on: Network Coverage ( Early to late ‘90’s ) Network Quality (Late ’90’s to mid ’00’s) Price (Mid ’00’s to current) Therefore, companies that enabled increased coverage, increased quality, or lower pricing thrived… This meant that their priorities were those that were rewarded…

Mobile Monday Deck

Historically, carriers controlled the mobile ecosystem because they:

Owned the relationship with the consumer

Determined handset subsidies

Controlled application availability

Carriers competed with each other based on:

Network Coverage ( Early to late ‘90’s )

Network Quality (Late ’90’s to mid ’00’s)

Price (Mid ’00’s to current)

Recent Acquisition Activity Mobile Monday Deck Wireless/Mobile Exits (2007 – 2008) Data-Centric Ecosystem Mobile Startup Landscape Business Models Source: CapitalIQ Note: 1. Exits are for Wireless / Mobile / Cellular companies in US / Canada or Developed Europe backed by a financial sponsor acquired for > $100mm btwn. 1/1/07 and 1/1/09 as of 1/1/09. 2. Consumer Indirect Applications are applications purchased by Carriers / Handset manufacturers and preinstalled on phone while Consumer Direct applications are sold directly to the consumer. However, as the landscape changes, priorities are shifting towards data services, and over the past two years companies that enabled such services have seen success… Mobile penetration in developing countries is reaching saturation Voice ARPU is declining -> Carriers must increase Data ARPU to grow Concurrently, as handset manufacturers try to maintain pricing, they are changing their focus from handset design to improving handset feature sets. -> Therefore, the emphasis is shifting to data-centric offerings including navigation, music, video, internet, and games. Over the past two years, service providers represented only 43% of total acquisitions, with data oriented assets making up the bulk of the rest

Mobile Monday Deck

Mobile penetration in developing countries is reaching saturation

Voice ARPU is declining

-> Carriers must increase Data ARPU to

grow

Concurrently, as handset manufacturers try to maintain pricing, they are changing their focus from handset design to improving handset feature sets.

-> Therefore, the emphasis is shifting to

data-centric offerings including

navigation, music, video, internet,

and games.

Recent Acquisitions Mobile Monday Deck Mobile Startup Landscape Business Models Source: CapitalIQ Over the past two years, successful exits in the mobile data space have included mobile platforms, data assets, enabling technologies, and access points… Mobile Platforms Data Assets Enabling Technologies Access Points Navigation Semiconductors Audio / Video Codecs

Mobile Monday Deck

Financing Activity Mobile Monday Deck The groundwork for mobile data services and applications is still being laid, and therefore the business models that have already been successful are those that: Provide the underlying technology for building mobile data services Help the mobile data market to inflect rather than depending on the underlying infrastructure being in place However, Venture Capital inflows into mobile application companies have increased over the past year Although overall investment in mobile was down, the percent being allocated to applications increased significantly. Investors are ready to help build the next layer of mobile businesses Mobile Startup Landscape Business Models Sources: Rutberg & Co. Wireless Industry Newsletter, Dec ‘08 Notes: Carrier Applications are those sold through carrier decks, while Consumer Applications are those sold directly to consumers. During 2008, investment in mobile applications has increased… Global Venture Capital Mobile Financing Future Opportunities 1 2 Application as % of Total Consumer Application as % of Total Government Application Enterprise Application Carrier Application Consumer Application Carrier Semiconductor Enterprise Infrastructure Device Carrier infrastructure

Mobile Monday Deck

The groundwork for mobile data services and applications is still being laid, and therefore the business models that have already been successful are those that:

Provide the underlying technology for building mobile data services

Help the mobile data market to inflect rather than depending on the underlying infrastructure being in place

However, Venture Capital inflows into mobile application companies have increased over the past year

Although overall investment in mobile was down, the percent being allocated to applications increased significantly.

Investors are ready to help build the next layer of mobile businesses

Mobile Monday Deck Mobile Startup Landscape Conclusion We believe that the opportunity to build a business in mobile is as strong as ever, and that there are a multitude of new opportunities for startups trying to be innovative…

Mobile Monday Deck

What is AppVee? iPhone and Android application reviews Exclusive focus on video Filter gems from garbage for iPhone and Android users Based on merit, not price or downloads Professionally reviewed and researched We find what you should know about

iPhone and Android application reviews

Exclusive focus on video

Filter gems from garbage for iPhone and Android users

Based on merit, not price or downloads

Professionally reviewed and researched

We find what you should know about

Business Model 1) Advertising On website AppVee.com 700,000 pageviews/mo 100,000 uniques AndroidApps.com 250,000 pageviews/mo 30,000 uniques Above the fold (5, rotating) Featured App On App iPhone Over 150,000 downloads 1M+ Ad Impressions ~10,000 Daily uniques Android Coming Soon Top, sticky, rotating High CTR (up to 1.8%)

1) Advertising

On website

AppVee.com

700,000 pageviews/mo

100,000 uniques

AndroidApps.com

250,000 pageviews/mo

30,000 uniques

Above the fold (5, rotating)

Featured App

On App

iPhone

Over 150,000 downloads

1M+ Ad Impressions

~10,000 Daily uniques

Android

Coming Soon

Top, sticky, rotating

High CTR (up to 1.8%)

Business Model 2) Affiliate Sales 5% affiliate fee via LinkShare Sold tens of thousands of dollars of applications Much higher on the iPhone app than website

2) Affiliate Sales

5% affiliate fee via LinkShare

Sold tens of thousands of dollars of applications

Much higher on the iPhone app than website

Business Model 3) Video Ad Share YouTube YouTube Partner within 3 months 5min 5min Partner from start

3) Video Ad Share

YouTube

YouTube Partner within 3 months

5min

5min Partner from start

Mobile Challenges Exposure, exposure, exposure Rising number of applications = lost in the crowd AppVee is one solution focused strictly on solving this problem Gatekeeper restrictions Where does Apple draw the line? Does Google’s lack of gatekeeping hurt it? Rising development costs More developers, more apps, higher consumer expectation Economic environment Is technology affected? Yes and No Market saturation When will consumers say enough is enough? Circle back to exposure

Exposure, exposure, exposure

Rising number of applications = lost in the crowd

AppVee is one solution focused strictly on solving this problem

Gatekeeper restrictions

Where does Apple draw the line?

Does Google’s lack of gatekeeping hurt it?

Rising development costs

More developers, more apps, higher consumer expectation

Economic environment

Is technology affected? Yes and No

Market saturation

When will consumers say enough is enough?

Circle back to exposure

Where is mobile headed? Games that rival the Nintendo DS and Sony PSP Social gaming Multi-user applications Mobile ports of desktop apps Deeper integration with other devices around us More cloud support and desktop syncing

Games that rival the Nintendo DS and Sony PSP

Social gaming

Multi-user applications

Mobile ports of desktop apps

Deeper integration with other devices around us

More cloud support and desktop syncing

Thanks! www.AppVee.com Thanks!

Miha Mikek MoMo Boston, January 2009

1.1. – Intro Celtra is a mobile marketing enabler and a value-added aggregator Started operations in 07, team of 5, self-funded We offer Software-as-a-Service mobile marketing platform (engagement marketing) Development platform for marketers (ad-agencies, brands, service providers) SMS, MMS & IVR based campaigns (pers. calls, SMS alerts, coupons, content, comments, trivia, voting, games) Modular, customizable mobile features and content mgmt. offer creative freedom It enables integrated marketing campaigns (online and mobile convergence) Beachhead: Movie industry Our clients: 20 th Century Fox, Warner Bros, New Line Cinema, Paramount Pictures

Started operations in 07, team of 5, self-funded

We offer Software-as-a-Service mobile marketing platform (engagement marketing)

Development platform for marketers (ad-agencies, brands, service providers)

SMS, MMS & IVR based campaigns (pers. calls, SMS alerts, coupons, content, comments, trivia, voting, games)

Modular, customizable mobile features and content mgmt. offer creative freedom

It enables integrated marketing campaigns (online and mobile convergence)

Beachhead: Movie industry

Our clients: 20 th Century Fox, Warner Bros, New Line Cinema, Paramount Pictures

2.1. – Solution Celtra enables integrated marketing campaigns that utilize mobile channel “ there's quite a bit of research out there that's shown existence of mobile in a campaign ... has improved both the response and the interaction rates of the online media.” Eric Bader, Brand in Hand

2.2. – Solution Multi-channel campaign distribution provides cost-efficiency and audience reach

2.3. – Solution Development of campaigns without knowledge in technical aspect of mobile marketing Turn-key solution for agencies and brands Reduced costs and “time to market” for deployment of marketing campaigns New, innovative mobile solutions for integrated marketing campaigns Significantly better performance (conversion, click-through) compared to traditional promotional channels Celtra enables fast and efficient campaign creation, deployment and distribution

Development of campaigns without knowledge in technical aspect of mobile marketing

Turn-key solution for agencies and brands

Reduced costs and “time to market” for deployment of marketing campaigns

New, innovative mobile solutions for integrated marketing campaigns

Significantly better performance (conversion, click-through) compared to traditional promotional channels

3.1. – Case Case: Notorious movie promotion Online widget / Facebook app Showtimes widget / WHERE™ iPhone app

One out of three “Sex and The City” widget impressions generated a subscription to SMS tips from Carrie Bradshaw 3.2. – Case "Text and The City” campaign offered daily SMS tips form Carrie Bradshaw. Widget was promoted from the official movie web site www.sexandthecitymovie.com Campaign results (conversion rate) Opt-in for SMS alerts: 33% Widget installs to personal profiles: 25%

Campaign results (conversion rate)

Opt-in for SMS alerts: 33%

Widget installs to personal profiles: 25%

5.2. – Inside the platform / Feature module

4.2. – Inside the platform / Feature module

MoMo January 12 Casey Jones

Company Snapshot www.mocospace.com The largest mobile social network in the US, with over 5.2 million registered users and over 2 billion pages per month #1 Mobile Entertainment site (Hitwise) - # 4 mobile search on AOL - Top 3 mobile site in US (Opera) founded in 2005 by mobile industry veterans and long-time best friends, Jamie Hall and Justin Siegel 24 Employees in Boston and Israel +$7 million raised from General Catalyst, Comerica, Pilot Group, retired eBay exec Michael Dearing -

These are the “Year of Mobile” www.mocospace.com Mobile Web has the momentum. . . growing 8X faster than Wired web – Nielsen (UK) . . . With Mobile Social driving the mobile web In U.S., 100 million mobile web users and 40 million mobile social users by 2012 - eMarketer

The First Screen for Trendsetters www.mocospace.com Highly Engaged Average sessions per day: 1.48 Average pages per session: 108 Average session time: 45 minutes Average # of friends per user: 60 Average pages per user per month: 1529 Average Age: 21 52% Male 48 % Female 33% African American 33% Hispanic 33% Caucasian 92% US & Canada Young and Diverse

What’s Working? Ad Supported Model – mobile and web JumpTap, Quattro, Third Screen, Nokia Direct Deals – Kmart, Verizon Wireless, LionsGate Viral, WOM Growth – 5 million e-cards over Holidays Entertainment partnerships Island Def Jam SonyBMG EMI SRC www.mocospace.com

Ad Supported Model – mobile and web

JumpTap, Quattro, Third Screen, Nokia

Direct Deals – Kmart, Verizon Wireless, LionsGate

Viral, WOM Growth – 5 million e-cards over Holidays

Entertainment partnerships

Island Def Jam

SonyBMG

EMI

SRC

Diversifying Revenue Streams Display Advertising Banners Sponsorships CPM/CPC/CPA Messaging SMS Commerce Ringtones Games Classifieds Premium Services Virtual Goods “ Bonus” features

Keys to Growth Great Product / Member Experience – authenticity Flat Rate Data Plans – keep activity affordable MetroPCS, Cricket, Virgin Mobile Smartphones driving mobile web browsing Lower barriers for publishers help mobile web flourish $100 for mobile web page vs. short code $$$$ Driving usage and mainstream appeal www.mocospace.com

Great Product / Member Experience – authenticity

Flat Rate Data Plans – keep activity affordable

MetroPCS, Cricket, Virgin Mobile

Smartphones driving mobile web browsing

Lower barriers for publishers help mobile web flourish

$100 for mobile web page vs. short code $$$$

Driving usage and mainstream appeal

www.mocospace.com

Compelling Mobile Business Models Jorey Ramer Founder & VP Corporate Development Mobile Monday January 12, 2009

Who We Are The global leader in mobile search and advertising solutions Enable search and advertising for 16 operators in 9 countries and hundreds of mobile websites and applications

The global leader in mobile search and advertising solutions

Enable search and advertising for 16 operators in 9 countries and hundreds of mobile websites and applications

Evolution since inception

Impact of economic environment Percentage Of Ad Budgets Expected To Change Over Next Six Months Increase Maintain Decrease Online 68% 25% 7% Mobile 51% 37% 12% Cable TV 27% 49% 24% Magazines 18% 47% 35% Outdoor 17% 54% 30% Broadcast TV 16% 51% 33% Radio 16% 49% 35% Local Newspapers 11% 47% 42% National Newspapers 9% 43% 48% Source: Advertiser Perceptions Inc. Fall 2008 report. Advertising executives surveyed in October and November 2008.

Where mobile advertising is headed (or why mobile will be the Internet on steroids) Personal nature of medium Location based Interactive Exchange real value with user Take phone everywhere Targetable

Personal nature of medium

Location based

Interactive

Exchange real value with user

Take phone everywhere

Targetable

Thank you For more information, contact: Jorey Ramer Vice President, Corporate Development +1 617-817-1334 [email_address] JumpTap: Ten Emerging Mobile Players to Watch in 2007 JumpTap: 2007 Mobility Award for Entrepreneurial Company JumpTap: AO Media Top 100 Companies 2007 JumpTap: Best Advertising & Marketing Search Engine 2008 JumpTap: Top 15 Innovator 2007

Airvana Mobile Monday Event Compelling Mobile Business Models David Nowicki Vice President, Marketing and Product Management January 12 th 2009 Stay informed: www.femtohub.com

Airvana At a Glance Company Facts Founded 2000: NASDAQ-AIRV HQ in Chelmsford, MA, USA with offices in EMEA, Asia Pacific and the Americas Over 500 employees 2007 Billings: $142M Market Focus IP Wireless Networks (RAN) Fixed Mobile Convergence (FMC) pioneer HubBub™ Femtocell Universal Access Gateway Products deployed in 70 operators on six continents Internet Protocol Mobile Broadband

Company Facts

Founded 2000: NASDAQ-AIRV

HQ in Chelmsford, MA, USA with offices in EMEA, Asia Pacific and the Americas

Over 500 employees

2007 Billings: $142M

Market Focus

IP Wireless Networks (RAN)

Fixed Mobile Convergence (FMC) pioneer

HubBub™ Femtocell

Universal Access Gateway

Products deployed in 70 operators on six continents

Partnerships for the Transformed Mobile Ecosystem CORE INFRASTRUCTURE RADIO ACCESS INFRASTRUCTURE CONSUMER DEVICES STANDARDS

First Business: CDMA 1xEV-DO IP-RAN IP-RAN SOLUTION IP-RN EV-DO Base Station IP-RNC Radio Network Controller AirVista Element Management System AIRVANA ADVANTAGES IP-RAN architecture optimized for mobile broadband Consistent fast delivery of EV-DO roadmap Rev A VoIP with QoS Non-disruptive upgrade path to EV-DO Rev B and beyond IP-RAN SOLUTION IP-RN EV-DO Base Station IP-RNC Radio Network Controller AirVista Element Management System AIRVANA ADVANTAGES IP-RAN architecture optimized for mobile broadband Consistent fast delivery of EV-DO roadmap Rev A VoIP with QoS Non-disruptive upgrade path to EV-DO Rev B and beyond

IP-RAN SOLUTION

IP-RN EV-DO Base Station

IP-RNC Radio Network Controller

AirVista Element Management System

AIRVANA ADVANTAGES

IP-RAN architecture optimized for mobile broadband

Consistent fast delivery of EV-DO roadmap

Rev A VoIP with QoS

Non-disruptive upgrade path to EV-DO Rev B and beyond

IP-RAN SOLUTION

IP-RN EV-DO Base Station

IP-RNC Radio Network Controller

AirVista Element Management System

AIRVANA ADVANTAGES

IP-RAN architecture optimized for mobile broadband

Consistent fast delivery of EV-DO roadmap

Rev A VoIP with QoS

Non-disruptive upgrade path to EV-DO Rev B and beyond

Today: Drivers and Barriers of Mobile Services 3G Services Device Innovation Spotty Coverage Poor Data Performance High Costs & ARPU Challenges Unrealized In-Home Market

Emerging Business: Enter The Femtocell “ Enter the femtocell: a little box with a whole lot of promise.” Fox News, November 2007 Issue Femtocell Impact Coverage Base station for the home Data Performance Dedicated capacity; all the bandwidth you need CAPEX/OPEX Delivery of mobile services far less expensive via femtocells than over macrocell infrastructure ARPU Potential for increased usage, reduction in churn & uplift from femtozone services

Femtocells Transform The Mobile Network Mobile Core Network MACRO ACCESS Femtocell and Dual-Mode Access HubBub™ Femtocell Wi-Fi Universal Access Gateway (UAG) HubBub™ Femtocell Internet

Femtocells Drive The Digital Home Era PERSONALIZED APPLICATIONS Home Zone Plan 3G phone Home Zone menu HOME CONTROL Video Surveillance Alarms FAMILY COMMUNICATION Presence-enabled applications Intercom Virtual home number DIGITAL HOME & ENTERTAINMENT Music and video Gaming Home Menu

Summary How Infrastructure Software licensing Femtocell Devices and App Enablers When Existing: Mobile Broadband Infrastructure Emerging: Femtocells (FMC) Who Mobile OEM Channels & Operators Consumers Why Mobile Broadband. Everywhere. Transforming the User Experience Where Realizing the full potential of the mobile device Femtocell at the center of the digital home

Infrastructure Software licensing

Femtocell Devices and App Enablers

Existing: Mobile Broadband Infrastructure

Emerging: Femtocells (FMC)

Mobile OEM Channels & Operators

Consumers

Mobile Broadband. Everywhere.

Transforming the User Experience

Realizing the full potential of the mobile device

Femtocell at the center of the digital home

Thank You Stay informed: www.femtohub.com