Turnkey Mobile Broadband on Demand - Retail
August 2012
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Customers Want to Stay Connected Everywhere
Americans' love for mobile products and services continues to grow.
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confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.
2
Data Consumption and Enabled Devices are Growing at Impressive
Rates
3
Wireless network traffic grew by 123% in 2011 while number of wireless enabled-tablets,
laptops and modems grew by 49% (CTIA).
Mobile Data Traffic Growth (US, in terabytes)
40 mil
30 mil
20 mil
10 mil
5 mil
2007
2008
2009
Growing
Smartphone
adoption
Sources: Cisco, Chetan Sharma Consulting
2010
2011
2012
2013
Deployment of high
speed 4G networks
Greater use of embedded
laptops
and data cards
Building mobility into every product,
service, and process by businesses
Higher adoption of mobile
applications among consumers
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2014
confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.
Sprint Turnkey Data Solution
4
All the components needed to get to market quickly with a branded Broadband offering
• Partner-branded website for
end-users to select pricing
plans
SelfService
Portal
• Promotion code generation
• Device history
• Subscriber management
• Weekly and monthly
reports based on devices,
plans, usage and revenue
Partner
Admin
Portal
Reporting
Real-Time
Metering
& Billing
Turnkey
Solution
Mobile
Broadband
on Demand
Customer
Care
• Tier 2 Provided by
Sprint
Data
Meter
• Manages, authorizes, and
monitors services
• Redirects to the self-service portal
when time/usage-based services
reach their thresholds
• Manages payment services
• Optional graphical user
interface can be downloaded
for usage monitoring & low
usage alerts
Policy
Mgmt
• Partner can whitelist their
Retail site
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confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.
Self-Service Portal for Retail Segment
1. Purchase Plan
5
3. Pay (or Bypass with Promo Code)

Plans
Payment
Please select from the plans below or input your
promotional code below
Amount due excluding taxes: $<Amountdue>
Purchase
Plan
Price
Data
Exp.
You have a balance on your account of $<Balance>
Day
Pass
$12.95
200MB
24hrs
Please select a payment method.
Select
Select
Weekend
Pass
$24.95
350MB
3 days
Select
Week
Pass
$49.95


Card on file xxxx-xxxx-1111

New credit/debit card
700MB
7 days
PIN Code
Enter your promotional code for a free plan and select
Redeem button.
Redeem
Submit

2. Login as New or Existing User
4. Receive Confirmation

Confirmation
Login
Please enter your user name and password to log in
now.
User Name (email address)
Congratulations! You have successfully set up your
mobile broadband service. <Your card <last4> was
successfully charged $<total> including taxes,
authorization <code>.<You will receive <xxxx> points
toward our rewards program.>
Password (6-10 characters)
Plan
Price
Data
Exp.
Forgot Password
Day
Pass
$12.95
200MB
24hrs
Submit
New Customer
Expires: <Date><Time>

Partner Branded Solution – Logo,
text, color themes, font are
configurable
Plans – Ability to offer 3 different
data plans
Promotional Code –Supports
promotional code(s) for free plan
Login– Supports establishing new
account (name, email, security
Q&A, create password, loyalty
number) or login for existing
users (for top up)
Partner Loyalty Program Tie-In Displays and earns Partner
program loyalty points for data
plan purchases
Payment – Allows diverse
payment methods including
credit/debit, balance, PIN code
and more
Confirmation – Provides
subscriber with data plan
purchase, expiration date and
final charges
Finish
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confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.
Partner Administration Portal for Retail Segment
Device History
Device History
Device ID
Device History – See detailed
information by Device ID, i.e.
plan purchased, credit card
successfully charged, promo
code generated or used
Device Status: IN USE
Device
ID (MEIDDevice:
or ESN)<MiFi 2200>
Channel:
<Partner>
Date &
Event
Event Details
TimeChangeCode
Device Status
12/05/07
18:28:56
11-150134
App launch called successfully
12/05/07
18:29:32
30-110022
Device service purchased product ID
(1)
30-100055
Billing service successfully charged
credit card (visa ********1111) in
amount (43)
Notes
12/05/07
18:31:32
Promotion Code Management
Promotion Management
Select plan to associate for promotion code
Create
Plan
Price
Code Device ID (MEID or ESN)
Select
Day
$12.95
Data
Promo Code
200MB
Pass
Change
Device Status
Select
Weekend
Pass
$24.95
350MB
Select
Week
Pass
$49.95
700MB
AZETVR
Promotion Code Management –
Provides Partner the ability to
generate a promotional code
associated with any plan
offering; and provides
mechanism to send to customer
– print, email
Notes
Enter customer email address to send promotion
code (optional)
Submit
© 2012 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or it's relevant affiliates and may contain restricted,
confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.
6
Product Roadmap
Loyalty Program Integration
 Capture and deliver loyalty information to Partner’s Loyalty Program System
 End users can earn loyalty points and/or redeem loyalty points for services
System Integration
 Provide standards-based API with which Partner can directly integrate its CRM system, if desired
Advanced Policy Controls
 Partner can offer free traffic to designated sites regardless of data plan, data usage or expiration
 Partner can offer sponsored browsing which allows access content/sites without impacting data
usage (e.g. 1 GB of USA Today with plan purchase)
 Partner can offer a limited content set plan (purchase a “social networking” plan which only
permits access to Face Book, Twitter, Yahoo Messenger)
Value Added Services
 Subscriber portal can aggregate and display content dynamically from the Partner Content Portal
including product offers, couponing, promotions. The data meter can also display this information
subject to size limitations.
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confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.
7
Device Fulfillment and Management

8
Partner can work directly through their Sprint Preferred Fulfillment Vendor (FV) to obtain
the devices
 WSA
 AeroVoice
 FVs will manage the following (pricing will be decided between Partner and Fulfillment
Vendor)










Bar code the device
Permanently display the device name and password on the device
Custom packaging (hard case, car charger, instructions, etc.)
Ensure accessories have been lab tested and meet industry/OEM/Sprint specifications
Ability to pad print logos
Ability to ship devices to multiple locations
Ability to easily order replacement devices, accessories, packaging, user guides by location
Device activation and deactivation
Quality check / testing prior to shipping
Manage returns and warranty
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confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.
Pricing
1.
Sprint per MB Charge - $0.025 - $0.031 (MB Charge varies based on Care Option Selected)
1. Sprint per MB Charge with Sprint Care - $0.031 per MB
2. Sprint per MB Charge with Partner Care - $0.027 per MB
3. Sprint per MB Charge with Partner Only – $0.025 per MB
2.
Monthly Recurring Charge per device - $2.00
3.
Per Rental Period Fee ** - $.40 (per purchased session, per device, and not to exceed 7 days).
4.
In-language portal - $4,000 per language (one time fee)
5.
Initial Set-Up Costs for Mobile Hotspot Rental - $25,000
•
Includes account set-up, realm configuration, billing setup, subscriber database, business
rules and pricing plans, website portal branding, development and testing.
•
Partner can be commercially deployed in 4-6 weeks
6.
Other customizable options can be quoted
** Rental period is a purchased session which can be either a time period such as a day, or exceeding the
usage cap in a day. Another way to think about this is a fee “per billable event”.
© 2012 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or it's relevant affiliates and may contain restricted,
confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.
9
Care Pricing Options
•Sprint Care - Offers Partners relief by being the front line care
representative. Sprint would support rental customers by: handling care calls,
validating device within Sprint systems, checking coverage, researching and
confirming outage reports, providing technical assistance, and validating device
status thru Telespree. Any monetary issues, disputes, or lost/damaged device calls
would be transferred to the Partner for resolution.
•Partner Care - Places the Partner in the position to receive calls for care. The
Partner would support rental customers by: handling care calls, checking coverage
maps, providing basic technical assistance, validating device status thru Telespree
and monetary issues, disputes, or lost/damaged devices. Advanced technical issues
would be transferred to Sprint care team.
•Partner Only - Places all aspects of care with the Partner. Any technical issues are
referred to Sprint by creating a CTMS ticket and following up with the assigned
ASM.
© 2012 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or it's relevant affiliates and may contain restricted,
confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.
10
Pricing Tool
11
The Pricing Tool can be used by the Partner to determine monthly revenue by location and
payback on the device costs by inputting different assumptions and estimating their retail price.
Mobile Hotspot Assumptions
Number of Locations
Total Number of Devices per location:
Megs Included:
Cost per Meg
Session Costs (Maximum 1 Week)
MRC per Device
Assumed MRC Charge per Session
Session Duration (days)
Assumed Sessions Sold per Device per Month:
Cost of Device
Retail Price*
10.00
$
11.00
$
12.00
$
13.00
$
14.00
$
15.00
$
16.00
$
17.00
$
18.00
$
19.00
$
20.00
$
Maximum Network Cost**
5.80
$
5.80
$
5.80
$
5.80
$
5.80
$
5.80
$
5.80
$
5.80
$
5.80
$
5.80
$
5.80
$
$
$
$
$
$
400
10
200
0.029
0.40
2.00
0.33
1
6
150
Session
Management
Cost
0.40
$
0.40
$
0.40
$
0.40
$
0.40
$
0.40
$
0.40
$
0.40
$
0.40
$
0.40
$
0.40
$
0.14
1.00
20% Utilization Factor
Total Session
Cost
6.53
$
6.53
$
6.53
$
6.53
$
6.53
$
6.53
$
6.53
$
6.53
$
6.53
$
6.53
$
6.53
$
Total Monthly
Revenue
240,000
$
264,000
$
288,000
$
312,000
$
336,000
$
360,000
$
384,000
$
408,000
$
432,000
$
456,000
$
480,000
$
Total
Monthly
Session
Monthly
Margin per Monthly Margin Margin per
Margin
Location
per Device***
device
208.00 $ 83,200.00
20.80 $
3.47 $
$
268.00 $107,200.00
26.80 $
4.47 $
$
328.00 $131,200.00
32.80 $
5.47 $
$
388.00 $155,200.00
38.80 $
6.47 $
$
448.00 $179,200.00
44.80 $
7.47 $
$
508.00 $203,200.00
50.80 $
8.47 $
$
568.00 $227,200.00
56.80 $
9.47 $
$
628.00 $251,200.00
62.80 $
10.47 $
$
688.00 $275,200.00
68.80 $
11.47 $
$
748.00 $299,200.00
74.80 $
12.47 $
$
808.00 $323,200.00
80.80 $
13.47 $
$
*Price is determined by Sprint's MVNO Partner.
** Assumes full utilization of allocated Megs. (Worst Case as financial will be better for MVNO Parner as breakage isn't accounted for in this analysis)
© 2012 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or it's relevant affiliates and may contain restricted,
confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.
Payback
Months
7.2
5.6
4.6
3.9
3.3
3.0
2.6
2.4
2.2
2.0
1.9
Payback
Sessions
43.3
33.6
27.4
23.2
20.1
17.7
15.8
14.3
13.1
12.0
11.1
Getting Started
• Master services agreement between Sprint and Wireless Partner
• Agreement with Sprint-approved device Fulfillment Vendor
• Partner portal configuration and deployment
• Partner purchase devices and accessories
• End to end testing
• Partner employee training
• Service merchandising collateral
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confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.
12
Roles / Responsibilities
13
Sprint Provides
• Network usage and prepaid
rating
Partner Provides
• Markets to end users
• Trains sales force
• Branded portal setup
• Customer Care
• Administration portal
• Customer Care
•
•
Determined by Care Option
• Telecom tax remittance
Determined by Care option
• Telecom tax calculation
Partner works with Sprint-approved Fulfillment Vendor to source devices
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confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.
Tax Remittance
 Sprint’s vendor will provide Partner monthly reports stating Partner’s telecom tax
obligations
 Partner will be responsible for remitting telecom taxes
 Helpful vendors to assist in this task include
 Atlantax,
 Thomson Reuters
 KPMG
 The Compliance Group
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confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.
14
Timeline
Week
15
1
Systems
2
•
•
•
3
4
5
6
7
8
9 10
Admin Portal
End User Portal
Pricing Plan Types
Phase 1 Launch 3Q12
Processes
•
•
•
•
•
Phase II
Enhancements
Sprint Contract
Fulfillment Vendor Arrangements
Stock New Devices
Implement New Procedures
Print Marketing Collateral
• Train store personnel
on new product
• Distribute Marketing
Collateral
Phase 2 Launch 4Q12
•
•
•
•
Loyalty Program Integration
System Integration
Advanced Policy Controls
Value Added Services
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confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.
16
Thank You!
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confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.