The State of Telecom – 2012 Over the Top: New Business Models with New International Telecom Rules? Jacquelynn Ruff Vice President, International Public Policy & Regulatory Affairs September 24, 2012 Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. Broadband for Economic and Societal Growth The enduring source of Verizon’s value is the central role we play in an industry vital to the global economy and deeply embedded in the lives of our customers. Figure 2. Global Mobile Data Traffic Forecast by Region Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. In the sections that follow, we identify 10 major trends behind the growth of mobile data traffic. 2 A Complex Competitive Landscape Consumer Electronics Broadband Broadband Providers Providers Consumer Consumer Content Content CONSUMER IN CHARGE Applica2ons/ Opera2ng Systems Government Services Commercial Content Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 3 Business Transformation Advanced global assets, basis for innovative business models Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 4 Cloud Solutions for a Connected World Data Center Cloud Enabled Data Center Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 5 Collaboration and Partnering Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 6 Innovation and Socio-Economic Benefits Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 7 New International Telecom Rules Enable or impede global Internet growth and usage? Investment Adoption Innovation Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 8