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Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

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Page 1: Confidential and proprietary material for authorized ......• Construction • Utilities • Federal Government • Military • Maritime ... Pricing • Nationwide Plans ... SMS

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Page 2: Confidential and proprietary material for authorized ......• Construction • Utilities • Federal Government • Military • Maritime ... Pricing • Nationwide Plans ... SMS

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Open Development – What is it?

Platform for innovationPlatform for innovation An opportunity for you!………………………..

A means to stimulate innovation in wireless devices – with focus on new and non-traditional devices

A platform for innovative and far-ranging services – services originating from outside of Verizon to support new devices – on the nation’s most reliable wireless network

An opportunity for you!………………………..

A means to stimulate innovation in wireless devices – with focus on new and non-traditional devices

A platform for innovative and far-ranging services – services originating from outside of Verizon to support new devices – on the nation’s most reliable wireless network

A new way for partners to go-to-market on the nation’s most

reliable network

A new way for partners to go-to-market on the nation’s most

reliable network

Enhanced customer choiceEnhanced customer choice

A new business model for Verizon Wireless

A new business model for Verizon Wireless

Page 3: Confidential and proprietary material for authorized ......• Construction • Utilities • Federal Government • Military • Maritime ... Pricing • Nationwide Plans ... SMS

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Verizon Wireless’ Contribution

Voice and Data Network• CDMA 2000, EV-DO

– Core Network• IP Based

• Supports 3G Radio Access (EV-DO)

• Seamless transition to 4G

• History of Technology Leadership– 4G Radio Access Network

• LTE

• Global standards

• Engineered for Reliability and Performance• History of Continuous Expansion• Roaming Relationships

Page 4: Confidential and proprietary material for authorized ......• Construction • Utilities • Federal Government • Military • Maritime ... Pricing • Nationwide Plans ... SMS

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Tenets of Open Development

Streamlined Device Certification ProcessAny Device

Any Application

Any Distribution

Channel

Allow any Third Party application on Open Development certified devices

Partner owns sales, marketing, technical support and distribution of new devices

Page 5: Confidential and proprietary material for authorized ......• Construction • Utilities • Federal Government • Military • Maritime ... Pricing • Nationwide Plans ... SMS

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Target Partners for Open DevelopmentMachine to MachineMachine to Machine

• Healthcare• Transportation• Manufacturing• Financial Services• Construction• Utilities• Federal

Government• Military• Maritime• University

Consumer ElectronicsConsumer Electronics

• Traditional DevicesPortable media playersNavigation deviceCamera/ CamcorderGaming console/ systemsLaptops/ Ultra-mobile PC

• Specialty Devices requiring ConnectivityeBook devicesSocial networking devicesHealth MonitoringLocation tracking devices

Voice/ Data HandsetsVoice/ Data Handsets

• Low-end traditional handsets

• Specialty handsets for niche segmentsBanking, HealthcareSMB/ Enterprise

Page 6: Confidential and proprietary material for authorized ......• Construction • Utilities • Federal Government • Military • Maritime ... Pricing • Nationwide Plans ... SMS

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Benefits of Open Development

• No contract term nor ETF• Expanded selection of

devices• Dedicated self-serve portal• Paperless billing• Electronic payments• Online activation process

Consumers• Reliability of Verizon Wireless

Network• Streamlined device

certification• Reduced time to market

Partners

Page 7: Confidential and proprietary material for authorized ......• Construction • Utilities • Federal Government • Military • Maritime ... Pricing • Nationwide Plans ... SMS

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Open Development streamlines processes to optimize partner flexibility, faster time to market, and simple

customer experience

Open Development streamlines processes to optimize partner flexibility, faster time to market, and simple

customer experience

Device CertificationDevice Certification

Minimum technical specifications only

Marketing/DistributionMarketing/Distribution

Partner owns device sales and distribution

ActivationActivation

Consumers visit Open Development portal for service, pricing and activation

BillingBillingOD manages end-user billing or partner may choose to own all pricing, activations and billing

Page 8: Confidential and proprietary material for authorized ......• Construction • Utilities • Federal Government • Military • Maritime ... Pricing • Nationwide Plans ... SMS

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

11 22 331 Week 2 Weeks 1 Week

RFParametric

Testing

SignalingConformance

& FeatureValidation

Certified

Device Certification Process

Page 9: Confidential and proprietary material for authorized ......• Construction • Utilities • Federal Government • Military • Maritime ... Pricing • Nationwide Plans ... SMS

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Best Practices

Stage2

Stage2

Stage3

Stage3

4 Weeks 2 Weeks 2 Weeks

ODICertification

CDG-57Stage 2

InfrastructureInteropTesting

CDG-64Stage 3

FieldInteropTesting

Page 10: Confidential and proprietary material for authorized ......• Construction • Utilities • Federal Government • Military • Maritime ... Pricing • Nationwide Plans ... SMS

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Direct Model

Distribution • Direct Channels• Indirect Partner

Activation • All Channels• Online

Pricing • Nationwide Plans• Data Add-ons

Billing • Mail• Online “Green Bill”

Payment • Electronic• Manual

Support• Online• Customer Service• Direct Channels

• Partner

• Online

• Nationwide Plans• Data Bundles

• Online “Green Bill”

• Electronic

• Online• Limited 800#

Marketing • TV/Radio• Print

• Partner

Traditional VZW ODI

Page 11: Confidential and proprietary material for authorized ......• Construction • Utilities • Federal Government • Military • Maritime ... Pricing • Nationwide Plans ... SMS

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

OD Direct-to-Customer Lifecycle

LearnLearn AcquireAcquire PayPayUseUse ServiceService

Acquisition ServiceActivation

PartnerPartnerMarketing Partner ownsmarketing and device branding

Distribution Partner owns all Distribution

Equipment SalesPartner sells Device - accessories/ provides subsidy

Content/ App. SalesPartner providesApps./ content

In BoxDirects user to VZW OD website for service activation

Co-Branding VZW tag on box: Powered by VZW

In-Store Customers referred to OD website

Activation • Online via OD self-activation website• No ETF/ Contracts• OD pricing

Co-brandingBill face co-branded with partner

BillElectronic Bill

Payment Electronic payment with Auto Payment Option

Partner Care Partner owns all device, application and post activation issues

VZW Open DevelopmentVZW Open DevelopmentLimited VZW Care VZW owns billing, activation/ network issues

Self-Service OD portal directs customer to vendor for device, app help

Limited VZW promosNo NE2/ WFG IN Calling for OD only

Page 12: Confidential and proprietary material for authorized ......• Construction • Utilities • Federal Government • Military • Maritime ... Pricing • Nationwide Plans ... SMS

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Direct Model Examples

Digital Camera Gaming DeviceRuggedized PDA

• Construction

• Government

• Journalists

• Insurance Companies

• Young Adults

• Parents

Page 13: Confidential and proprietary material for authorized ......• Construction • Utilities • Federal Government • Military • Maritime ... Pricing • Nationwide Plans ... SMS

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

User Experience: Activations & Plan Selection

1Customer purchases device directly: • Consumer electronics retailer• Cash and Carry• No subsidy

2Inbox materials describes OD:• VZW network advantage• Pricing options• ODI web address• 800# for Partner available

Powered by

Customer inserts ESN and price plans pre-

selected for that device will appear.

Customer inserts ESN and price plans pre-

selected for that device will appear.

3Monthly Plan:

Selects MRC & MOU allowance

Monthly Plan: Selects MRC & MOU

allowance

4a

Daily Plan: Funds ODI account and selects denomination for ongoing replenishment

Daily Plan: Funds ODI account and selects denomination for ongoing replenishment

4b

Customer inserts contact information:

Name, Address, email, mobile #, home #Selects contact

preferences: mobile or email or both

Customer inserts contact information:

Name, Address, email, mobile #, home #Selects contact

preferences: mobile or email or both

5

Customer inserts payment information: Credit card or bank account information,

Drivers License # (and potentially SS#) for

credit check

Customer inserts payment information: Credit card or bank account information,

Drivers License # (and potentially SS#) for

credit check

6

Customer enrolls in auto-pay

Customer enrolls in auto-pay

7

Device is activated via over the air.

Device is activated via over the air.

8Transaction completed: Self Serve information provided to customer

Offers link-aways to: My OD AccountPartner website

Transaction completed: Self Serve information provided to customer

Offers link-aways to: My OD AccountPartner website

9

Select bolt-ons:

SMS pack, MB pack

Select bolt-ons:

SMS pack, MB pack

4ab

Page 14: Confidential and proprietary material for authorized ......• Construction • Utilities • Federal Government • Military • Maritime ... Pricing • Nationwide Plans ... SMS

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Wholesale Model

Marketing • Wholesale Agent • Partner

Distribution • Wholesale Agent • Partner

Support • Technical Support Team • Partner

Billing/Payment • Electronic • Electronic

Pricing • Volume Based Plans • Volume Based Plans

Activation • Provisioning Support • Provisioning Support

VZW Wholesale ODI

Page 15: Confidential and proprietary material for authorized ......• Construction • Utilities • Federal Government • Military • Maritime ... Pricing • Nationwide Plans ... SMS

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Wholesale Model Examples

Home Security MeteringFleet Management

• Transportation

• Construction

• Homes

• Businesses

• Public Utilities

• Vending

Page 16: Confidential and proprietary material for authorized ......• Construction • Utilities • Federal Government • Military • Maritime ... Pricing • Nationwide Plans ... SMS

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Additional Device Examples

Vehicle TrackingHealth Monitoring

• Seniors

• Patients

• Consumers

• Manufacturers

Digital Music

• Mobile

• Fixed

Page 17: Confidential and proprietary material for authorized ......• Construction • Utilities • Federal Government • Military • Maritime ... Pricing • Nationwide Plans ... SMS

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Open Development Models

Direct – B2BDirect – B2B

Wholesale

Direct

Wholesale

Direct WholesaleWholesale

OtherOther

Direct - ConsumerDirect - Consumer

Page 18: Confidential and proprietary material for authorized ......• Construction • Utilities • Federal Government • Military • Maritime ... Pricing • Nationwide Plans ... SMS

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.