Presentation delivered by Steve Livingston, Senior Vice President, iPass at the Mobile Data Offloading conference in London. iPass service will lower Wi-Fi roaming costs. Visit http://www3.ipass.com/solutions/open-mobile-exchange/ for more information regarding data offloading.

1. Value-added Wi-Fi services
Be well connected
Steve Livingston
Senior Vice President
iPass

2. Presentation | Overview
 Who is iPass
 Wi-Fi - no longer the fringe network
 Wi-Fi’s role in today’s mobile network landscape
 Offload – hype or happening?
 Picking the low hanging fruit
 Monetizing Wi-Fi as a value added
service for consumers
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3. iPass | About Us
 Founded in 1996 (NASDAQ: IPAS)
 Operates the world’s largest commercial Wi-Fi network with:
 1.8 million unique users
 8.7 million hours of traffic
 70 million Wi-Fi sessions
 140 Wi-Fi network operators connected globally with 780K
hotspots
 Over 3,500 enterprise customers
 A rapidly growing list of carrier strategic partners
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4. Wi-Fi | No Longer the Fringe Network
 Wi-Fi has firmly established itself as a critical part of
today’s mobile network fabric
 HetNets (Heterogeneous Networks) are now the
clear industry direction to enhance network
capacity, coverage and user connectivity
› Complementary combination of large cell (LTE, HSPA+)
and small cell (Wi-Fi) technologies
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5. Wi-Fi | No Longer the Fringe Network
 On a global basis, 70% of smartphone data is
originated on Wi-Fi
Source: Mobidia
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6. Wi-Fi | No Longer the Fringe Network
 Additionally, 65% of tablet users are connecting to
mobile networks via Wi-Fi exclusively
Wi-Fi vs. Cellular Adoption
>90%
Current Use
0% 20% 40% 60% 80% 100%
Wi-Fi Only Wi-Fi & Cellular Cellular Only None
Reasons for
› High cost of cellular data plans
greater Wi-Fi › Wi-Fi available where tablets are used
reliance › Tablet users already own a cellular smartphone,
which fulfills the ‘must have’ connectivity need
Source: Connected Intelligence, December 2011
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7. Wi-Fi | WLAN Shipment Forecast
2,000,000,000 Wi-Fi chipsets shipped by 2014
200 percent year-over-year growth since 2009
Global Shipment Forecast
>2 billion Wireless Local Area
Networking (WLAN) Chipsets
(Millions of Units)
200% growth Source:
200% growth IHS iSuppli Research
February, 2011
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8. Wi-Fi | Number of Public Hotspots
Public Hotspots (millions)
5.8
4.5
3.3
2.1
1.3
0.5 0.8
Source: Informa Telecoms & Media
Report for the Wireless Broadband Alliance
November 2011
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9. Wi-Fi | Carrier Announcements
1,000,000 By end of 2012
1,000,000 By end of 2014
100,000 By end of 2012
Building largest Wi-Fi
network in Brazil
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10. Wi-Fi | iPass Network Growth
2008 – Present (actual)
900,000
779,288
800,000
2nd Wave
700,000
Carrier Wi-Fi
600,000
500,000
400,000
300,000
1st Wave
200,000 User-deployed
100,000
-
2008 2009 2010 2011 2012
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11. Offload | A Closer Look
 Domestic data offload has received the majority of
industry attention and media coverage
 While important, it is not the ‘low hanging fruit’
 Offloading to consumer’s home and work network
makes economic sense
 Offloading to commercial networks is difficult
economically unless Carriers own the Wi-Fi network
 Offload to commercial networks can be complex.
NGH addresses many of these complexities.
 Offload is largely cost savings justified
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12. Wi-Fi Devices | Market Growth
• Wi-Fi now saturated in Tablets and Smartphones
Worldwide Smartphone Shipments
1,200 2007 – 26.4%
Global Wi-Fi penetration in
smartphones nearly quadrupled
2012 – 95.2%
over past 5 years
1,000
800
(Millions)
Tablet
600 Wi-Fi embedded in 100% of tablets
and growing to 98% in Smartphones
Smartphone (Wi-Fi)
400 Smartphone (No Wi-Fi)
200
No Wi-Fi
0
2011 2012 2013 2014 2015 Source: IDC, December 2011
Strategy Analytics, December 2011
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13. Wi-Fi | International Roaming
 International Wi-Fi roaming is the low hanging fruit
 It offers carriers the opportunity to act now (not
after infrastructure build-outs) to enhance their
value proposition, increase ARPU and reduce Churn
Rate without consuming CAPEX, and differentiate!
Increase addressable Broaden
market size and geographic Secure vital relationships
revenue potential reach with subscribers on a
global scale
Grow the number of
Capitalize on the
devices connected to
rapid growth of
your network
Wi-Fi devices
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14. Churn Rate | Now, Highest Ever
• “Mobile customers now switch providers every 27
months, more than twice as frequently as a decade ago”
In 2011, 44 per cent of global mobile subscribers churned
– the highest level ever
27 months
Source: Strategy Analytics
Wireless Operator Strategies
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15. Summary | Opportunities
 Lost roaming revenues
1
(up to 70% turn off data roaming)
 Lost market growth opportunities (Wi-Fi devices)
 Lost customer mind share = increased churn rate
 Lost opportunity to lock-in subscriber retention
via ‘sticky’ services (bundle cellular and Wi-Fi
devices on single plan)
1 Syniverse Technologies
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16. Wi-Fi International | Value Proposition
 Leverage lower-cost Wi-Fi networks for international data
roaming, especially for data hungry applications
 Allow the consumer to live and behave as they do when
they are home
 Access to certain applications require Wi-Fi
 Capitalize on rapid growth of Wi-Fi devices; increase
addressable market size and share-of-wallet SPs enable their
subscribers to roam onto
• Family plans expand into multi device plans Wi-Fi networks to
foreign
increase their service
 International Wi-Fi Roaming is justified by revenue, churn
value
reduction, and competitive differentiation
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17. Wi-Fi Opportunities | Risk/Reward Study
Source: Informa Telecoms & Media
POSITIVE RISK-
REWARD
BALANCE Enhanced FBB
proposition Enhanced multiscreen
Enhanced proposition RISK SEEKING
MBB proposition M2M
(revenue uplift, cost savings,
Wi-Fi
churn reduction, etc)
REWARD
roaming Advertising &
Wi-Fi access transactions
Traffic
revenues offloading
Wholesale
capacity
RISK ADVERSE
NEGATIVE RISK-
REWARD
BALANCE
RISK
(investment levels, value chain complexity, customer
acceptance, competitive landscape, internal conflict, substitution, etc)
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18. Closing | Remarks
 Adopt International Wi-Fi roaming solutions now
while continuing to plan and prepare for Offload
 Capture the opportunity to enhance roaming value
proposition; grow customer base and reduce churn –
strengthening future position to succeed in Offload
 Seek a ‘Roam-in’ and/or ‘Wi-Fi Exchange’ partner as
part of your Offload strategy to help monetize Wi-Fi
assets and recover investment more quickly
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19. Value-added Wi-Fi services
Be well connected
Steve Livingston
Senior Vice President
iPass