This webinar analyzes key trends for Latin American development and deployment of LTE networks from the regulatory and the 4G service providers standpoint. The webinar gives a detailed analysis of the status of 3G and 4G in the region, and the challenges from the standpoint of regulators and 4G service providers. Open Mobile will present its deployment and business strategy.

1. August
2012
4G Webinar
4G Latin America: Carrier Strategies
Cintia Garza
LATAM Analyst
Maravedis
Luis Omar Rivera
Director Network Engineering
Open Mobile
© Copyright All Rights Reserved 2012 Maravedis Inc.
Adlane Fellah
CEO
Maravedis

2. Agenda
- Introduction
- Maravedis Presentation
- Cintia Garza, Latin America Analyst
- Open Mobile Puerto Rico Presentation
- Luis Omar Rivera, Network Engineering
Director
- Q&A

3. August
2012
4G Latin America: Analysis and Forecasts 2012-2017
Copyright ® Maravedis-Rethink 2012

4. Key Findings
Spectrum Policy
AGENDA
Challenges
LTE Business Case
Copyright ® Maravedis-Rethink 2012

5. KEY FINDINGS
Market Drivers Challenges Forecasts
Smartphones Monetizing Subs, Devices &
Applications Increasing Demand
Smartphones Low ARPU CAPEX
Low cost of Devices High Prepaid 51 million subscribers by
Demand Low Postpaid 2017.
Broadband Penetration High Churn 4G CAPEX to reach an
Voice over LTE Availability of Spectrum(in accumulated $13 billion by
Spectrum some countries) 2017.
Copyright ® Maravedis-Rethink 2012

6. SPECTRUM POLICY
450 1.7/2.1GHz
MHz MHz
700
80%
MHz Telecom Revenues
72%
Mobile Subscribers
2.6GHz 3.5GHz
MHz
MHz
Copyright ® Maravedis-Rethink 2012

7. CHALLENGES
70%
ARPU $11.56
Postpaid 20%
Prepaid 80%
Churn 3.02%
Copyright ® Maravedis-Rethink 2012

8. LTE BUSINESS CASE
UNE - Colombia
What are they doing? Strengths Weaknesses
Fixed  Mobile Main ISP in Colombia.
Comprehensive service offering. UNE does not have 3G mobile
DSL, WiMAX  LTE Various technologies to serve the end-user. infrastructure in place.
LTE time to market advantage over mobile UNE does not have 3G spectrum.
3.5GHz (50MHz)  2.6GHz (50MHz) carriers. Unable to do 3G fallback for voice.
Serves all market segments: Residential, Initial LTE offer only includes a USB
Nationwide  Nationwide SOHO, business, large corporations. dongle.
Data  Data & VoLTE Access to both FDD and TDD spectrum
2.6GHz and 3.5GHz.
Convergent Offer (2 & 3 Play)
SWOT ANALYSIS
Opportunities Threats
UNE can become the main and sole LTE Market driven by prepaid services.
provider for Soho, SME and large LTE competition from 3 mobile operators.
corporations in Colombia.
Challenges to support Voice Over LTE to
Opportunity to add mobile TV on LTE. compete with mobile players.
It is the only WiMAX carrier in Colombia, Early introduction of LTE Smartphones by
opportunity for TD-LTE in 3.5GHz. competitors.
Copyright ® Maravedis-Rethink 2012

9. For information about this
report contact:
Adlane Fellah
Maravedis-Rethink
afellah@maravedis-bwa.com
Tel: +1-786-452-6522
Copyright ® Maravedis-Rethink 2012

10. Deploying 4G LTE in a highly
competitive Market

11. Welcome to Puerto Rico!
• Some Highlights…
– 100 x 35 mile Island
• Beautiful Beaches, Sunsets and Historical
Monuments
• Home of great Artists, Sports Players and five
Miss Universe winners
– Population of 3.9 Million
– LATAM High Rate of
• Teledensity
• Mobile Penetration (78%)
• Internet Usage
– US Commonwealth – FCC Ruled
– Competition of 5 Wireless Operators
• AT&T, Claro, T-Mobile, Sprint, Open Mobile

12. Who are we?
• Local Operator in Puerto Rico
• Launched in June 2007
– Formerly known as Movistar Telefónica
• CDMA 1xRTT/EVDO Network
– EVDO (7/10)
• 1900, AWS and 700 MHz Spectrum
• 4th Operator against Big Carriers in
• High Smartphone penetration and
the Island
Data Usage
– Which lead to our LTE Decision • Average User Voice Traffic
– 2,000 minutes a month
• FIRST INDEPENDENT CARRIER IN
THE LATAM REGION TO LAUNCH LTE • Average Data Usage per person
– 3 Gb a month

13. LTE Deployment Challenges
• Terminal Availability and Ecosystem
– (Band 13 is an advantage)
• Backhaul Bandwith (MW vs Fiber)
• Leased Lines MRC (OPEX)
• Internet Backbone Growth
• All IP Culture
• Vendor Selection
• Vendors Interoperability if an E2E
solution is not chosen
• Competition
– (All PR operators will be on LTE on 1Q12)
• RRU vs Macro Sites
– (Tower Providers MRC)
• Landlords/Tower providers approval
– (Bigger antennas and more equipment increase OPEX)
• Do customers really understand 4G vs 3G
(HSPA+ vs LTE)?

14. Speed Test

15. LTE Real Live Throughput

16. Driver Test Results (Throughput)

17. Reasons for LTE
• Please rise your hand how many of you compete with 3 Tier 1 USA based
operators and the major LATAM Mobile Operator?
• Lower cost per Mb Delivered
• 3G not able to handle highly dense traffic areas : Hot Spots
• Improve Customer Experience
• Retention and significantly reduce churn
• Competitive Situation: AT&T LTE launch in Puerto Rico plus Claro
announcement to launch soon.
• Soon will be one of the First market with 3 Commercial LTE Networks
competing for Mobile Broadband Market. Expected all 5 operators to launch
LTE by end of 2012.

18. Open Mobile Strategy
Phase 1
• 3G Clients to 4G LTE migration campaign
Improve 3G clients experience
• Telemarketing to all 3G clients in Metropolitan Area
Phase 2
• 4G LTE sales in stores within the Metropolitan Area
Alliances
•Give Open Mobile’s 4G LTE technology the necessary brand recognition to captivate
customers
•Branding Campaign :McDonald’s WiFi Internet via Open Mobile 4G LTE network

19. Migration Campaign
• Migration campaign was carried out
• The campaign involved clients owning 3G dongle devices or hotspot, and switching
them to 4G LTE while maintaining commercial characteristics similar to the product
on 3G technology
• A daily landing page was presented to 3G clients with the migration promotion

20. Migration Campaign
• Telemarketing group was prepared to receive calls from these clients and to inform
them correctly on the benefits of switching
• Geographical zone was identified and controlled for this migration campaign
Metropolitan Area
• Direct Marketing was sent to every 3G client within the Metropolitan Area,
presenting promotion to switch technology (migrate)
- On March 1, migration of 3G client to 4G
LTE through the established campaign
- The campaign achieved 1,400 migrations by
the end of the month

21. Migration Campaign Direct Mailing
Direct Marketing was sent to every 3G client within the Metropolitan Area, presenting
promotion to switch technology

22. Commercial Offers

24. 4G LTE USB Modem & Routers
Novatel MC551 Novatel MiFi 4510 Franklin Wireless R720

25. November 2012
Premier Event for the 4G Ecosystem
November 14-15, 2012
Bogotá, Colombia
www.4glatinamerica.com
info@4glatinamerica.com
Copyright ® Maravedis-Rethink 2012

26. 4G LTE Smartphones
Pantech Breakout HTC Cobalt

27. McDonald’s / McCafé WiFi 4G LTE