The document discusses how mobile data traffic has grown exponentially since 1998 and will continue to do so in the future. While network investments like LTE and offloading to WiFi can help increase capacity and reduce costs, traffic is expected to grow far more quickly than technology can address. Network optimization can immediately increase effective capacity by 30-40% without requiring customer upgrades. Policy enforcement then allows operators to introduce differentiated services to monetize demand. Taking a strategic approach using all these solutions together—optimization, policy enforcement, LTE, offloading—operators can both meet growing demand and remain profitable in the mobile internet era.

1. Meeting Demand and Growing Profitably August 2010

2. Mobile Data’s First Decade (1998-2008):Industry Focus Was on Driving Adoption Data networks were built on top of voice – initially with large unused capacity Excess capacity meant service had little or no associated cost Traffic Built Capacity Used Capacity 2000 2010 2020 2005 2015

3. Operators Are Building Network Capacity toAddress Exponential Traffic Growth Even so, congestion is already occurring in dense urban areas At a minimum, investment in new cell sites, spectrum, backhaul, and upgrade to new technologies (LTE, femtocells) is required Demand Traffic Built Capacity Used Capacity 2000 2010 2020 2005 2015

4. Technology to Increase Capacity Will Not Keep Up with Traffic Growth LTE and offload (Wi-Fi & femtocells) are projected to reduce the cost per bit by about 50% by 2014* However, traffic is estimated to grow between 2000% and 4000% Demand Traffic LTE & Offload Built Capacity Used Capacity 2000 2010 2020 2005 2015 *Chetan Sharma: LTE 30-40%, Offload 25-30%

5. Optimization Produces a Network Multiplier Effect – Immediately Increases effective capacity by 30-40% No customer adoption required – immediate benefit Cumulative multiplier effect on all other network investments Optimization LTE & Offload Effective Capacity Built Capacity Used Capacity 2000 2010 2020 2005 2015

6. Policy Enforcement Enables Differentiated Services to Monetize Demand Differentiated services deliver service based on value and willingness to pay Optimization Policy Enforcement LTE & Offload Effective Capacity Built Capacity Used Capacity 2000 2010 2020 2005 2015

7. Taking a Strategic Approach, Operators Can Meet Demand and Grow Profitably in the Mobile Internet Era No single solution – all are necessary Bytemobile's Unison Mobile Internet Gateway provides optimization and policy enforcement Optimization Policy Enforcement LTE & Offload 2000 2010 2020 2005 2015