wireless internet caucussan diego, oct 6, 20091 leadership council meeting room: 29a october 6, 2009

Wireless Internet Caucus San Diego, Oct 6, 2009 1

Leadership Council Meeting Leadership Council Meeting

Room: 29AOctober 6, 2009

Wireless Internet Caucus San Diego, Oct 6, 2009 2Wireless Internet Caucus San Diego, Oct 6, 2009 2

WIC Leadership Council - Meeting Agenda• 3:30 – 3:40 pm Welcome & Introductions – David Diggs

• 3:40 – 3:50 pm CTIA – Wireless Industry Metrics – Robert Roche

• 3:50 – 4:10 pm Current Initiatives » Camera Phone Code Scan - Athena Polydorou» Off Portal – Jeff Simmons» Mobile Content - Athena Polydorou» Mobile Advertising - Jeff Simmons

• 4:10 – 4:30 pm Future Initiatives

• 4:30 – 5:00 pm Wireless Internet Caucus Structure

Sponsored by:The WIC Leadership Council ReceptionImmediately following; Terrace at San Diego Convention Center


Introduction and WelcomeIntroduction and Welcome

Presented by:David Diggs, CTIA-The Wireless AssociationDavid Diggs, CTIA-The Wireless Association


“This is the time we were all dreaming about. It’s here now. Let’s not blow it.”

Steve Spencer


WIC Manifesto, Feb 2002

• Leadership: Key decision makers create a unified approach to solving problems

• Communication: Industry forum to develop common frameworks, common language, consensus on critical issues

• Coordinated problem-solving: Cross-industry action teams to tackle challenges and develop solutions

Wireless MetricsWireless MetricsDr. Robert F. RocheDr. Robert F. Roche

CTIA-The Wireless AssociationCTIA-The Wireless Association

October 6, 2009

Wireless InternetWireless Internet CaucusCaucus


Metrics Focus

• Key Initiative: – On-going Collection and – Publication of Cross-Carrier Metrics

• Step One – Review Survey Modifications• Step Two – Report on Latest Survey Results


Key Initiative One – Review Cross-Carrier MetricsSurvey includes metrics related to:• Revenues:

Maintained requests for total data revenues, as well as:– Total revenues from data-only plans using Aircards or laptop-embedded modems for the six

month period.– Total revenues for data services on wireless-enabled PDAs and Smartphones for the six-month

period ending. – not currently reportable– Total revenues from data service subscriptions for the six-month period. Eliminated requests for Game play / download revenues, Non-game download revenues, Ringtone

revenues, and Enterprise Applications revenues.

• Traffic: measures such asMaintained requests for SMS / Text messages (including IM) and MMS messages.Eliminated requests for Pictures and E-mail traffic.– Added requests for number of MB on the networks for the six month period – not currently

reportable

• Usage & Capability measures such as:Maintained requests for Number of data-capable devices; SMS-capable devices; web-capable devices;

PDAs / Smartphones; and wireless-enabled laptops, aircards, and wireless modems on networks.Eliminated requests for MMS-capable devices, Number of camera phones on networks– Added request for number of machine-to-machine units active on networks – not currently

reportable.


Six-Month Wireless Service Revenues

• Total six-month industry revenues = $75.8 billion, up from $72.7 billion in 1H2007.

• Total 12-month industry revenues = $151.2 billion for July 2008-June 2009, up from $143.7 billion for July 2007-June 2008.

• Total six-month wireless data revenues = $19.5 billion, up from $14.8 billion in 1H2007.

• Total 12-month wireless data revenues = $37 billion, up from $27.5 billion in July-June 2008.


$105,657

$105,559

$175,270

$315,532

$411,454

$493,250

$699,764

$1,158,300

$2,041,090

$2,559,441

$3,790,579

$4,791,204

$6,460,560

$8,756,174

$10,532,277

$12,696,252

$14,784,297

$17,536,852

$19,464,909

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

Jun-00

Dec-00

Jun-01

Dec-01

Jun-02

Dec-02

Jun-03

Dec-03

Jun-04

Dec-04

Jun-05

Dec-05

Jun-06

Dec-06

Jun-07

Dec-07

Jun-08

Dec-08

Jun-09

Th

ou

san

ds

Total Wireless Industry Revenues Data Service Revenues

Top-Line Measures – Six-Month Total Wireless Data Revenues

Source: CTIA Semi-Annual Wireless Survey


12-Month Wireless Data Revenues Are Up 34.6%


$726,986 $1,193,014

$3,199,390

$6,350,020

$11,251,764

$19,288,451

$27,480,549

$37,001,760

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09

Th

ou

san

ds


Wireless Data as a Percentage of Monthly Subscriber ARPU

99.9%

99.8%

99.6%

99.6%

99.4%

99.1%

98.9%

98.8%

98.3%

97.5%

95.9%

95.2%

93.2%

91.7%

89.3%

86.5%

84.5%

82.1%

79.7%

76.7%

74.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jun

-99

Dec-99

Jun

-00

Dec-00

Jun

-01

Dec-01

Jun

-02

Dec-02

Jun

-03

Dec-03

Jun

-04

Dec-04

Jun

-05

Dec-05

Jun

-06

Dec-06

Jun

-07

Dec-07

Jun

-08

Dec-08

Jun

-09

Non-Data ARPU Data ARPU

Wireless Data ARPU Trended



Traffic Measures increase year-over-year

– SMS / Text messaging:• Monthly volume of 135b up 79.8% year-over-year (from 75.1b)• Six-month volume 740.3b up 92% year-over-year (from 384.9b)

– MMS:• Monthly volume of 1.8b up 71% year-over-year (from 1.1b)• Six-month volume of 10.3b up 83% year-over-year (from 5.6b)

– SMS / Text messaging:• Monthly volume of 135b up 79.8% year-over-year (from 75.1b)• Six-month volume 740.3b up 92% year-over-year (from 384.9b)

– MMS:• Monthly volume of 1.8b up 71% year-over-year (from 1.1b)• Six-month volume of 10.3b up 83% year-over-year (from 5.6b)



Reported Six-Month Text Traffic Grows 92% Year-Over-Year

0

100,000,000,000

200,000,000,000

300,000,000,000

400,000,000,000

500,000,000,000

600,000,000,000

700,000,000,000

800,000,000,000

Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09

Traffic Measures – Six-Month SMS / Text Traffic



0

20,000,000,000

40,000,000,000

60,000,000,000

80,000,000,000

100,000,000,000

120,000,000,000

140,000,000,000

160,000,000,000

Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09

Traffic Measures – Monthly SMS / Text Traffic



Reported Six-Month MMS Traffic Up 83% Year-Over-Year

284,754,607

848,021,269

1,588,444,746

2,605,243,207

3,494,686,474

5,627,905,174

9,304,980,514

10,317,919,613

1,138,563,387

0

2,000,000,000

4,000,000,000

6,000,000,000

8,000,000,000

10,000,000,000

12,000,000,000

Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09

Traffic Measures – Six-Month MMS Traffic



Reported Monthly MMS Traffic Up 71.4% Year-over-Year

79,097,689

181,546,975 210,526,280

315,589,226

472,884,455

750,501,525

1,059,017,274

1,599,058,009

1,815,205,941

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

1,800,000,000

2,000,000,000

Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09

Traffic Measures – Monthly MMS Traffic



Minutes and Messages as a Measure of Wireless Usage

1,4951,798

2,119 2,203

81

159

363

1,005

15

1

3

6

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2005 2006 2007 2008

Bill

ion

s o

f M

OU

s /

Me

ss

ag

es

MOUs Text Messages MMS Messages

These measures don't even include the traffic generated by millions of wireless users browsing the web, downloading music and games, or accessing other content with their wireless devices.

Available Annual Traffic Measures – Voice and Data



Minutes and Messages as a Measure of Wireless Usage

1,260

1,6781,955

2,226 2,237

113

241

601

1,360

57

20

9

0

2

4

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Jun-05 Jun-06 Jun-07 Jun-08 Jun-09

Bill

ion

s o

f M

OU

s /

Me

ss

ag

es

MOUs Text Messages MMS Messages

These measures don't even include the traffic generated by millions of wireless users browsing the web, downloading music and games, or accessing other content with their wireless devices.

12-Month Traffic Measures – Voice and Data



585675

820 858941 1,014

1,104 1,122 1,081 1,156

4965

94

147

216

385620

740

3325

10

9

3

11

2

3

6

$49.43$49.87$49.51$50.14$50.01$49.39$53.78 $52.19 $50.70 $49.81

0

500

1,000

1,500

2,000

2,500

Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09

Bil

lio

ns

of

Mes

sag

es /

Min

ute

s

Semi-annual Voice Traffic Semi-annual Text Traffic Semi-annual MMS Traffic Total ARPU (including toll & roaming)

Semi-Annual Traffic Measures – Voice and Data



203,600

480,032

777,978

1,607,597

2,688,793

4,316,686

6,074,777

8,564,111

12,050,822

17,883,306

26,454,826

35,230,983

46,239,973

57,587,407

72,939,725

89,095,529

100,076,742

126,085,138

139,567,610

161,977,219

186,417,768

213,310,005

235,337,871

252,940,463

265,338,554

-

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

Jun

-85

Jun

-86

Jun

-87

Jun

-88

Jun

-89

Jun

-90

Jun

-91

Jun

-92

Jun

-93

Jun

-94

Jun

-95

Jun

-96

Jun

-97

Jun

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Jun

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Jun

-00

Jun

-01

Jun

-02

Jun

-03

Jun

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Jun

-05

Jun

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Jun

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Jun

-08

Jun

-09Consumer Metrics – Total Reported Subscribership



Consumer Metrics – devices and users

Based on sequential questions:

• 265.3 mm total reported subscribers (overall survey)

• 235.3 mm SMS-capable devices on data survey respondents’ networks

• 246.7 mm data-capable handsets on data survey respondents’ networks

• 237.1 mm web-capable handsets on data survey respondents’ networks


• 265.3 mm total reported subscribers (overall survey)

• 235.3 mm SMS-capable devices on data survey respondents’ networks

• 246.7 mm data-capable handsets on data survey respondents’ networks

• 237.1 mm web-capable handsets on data survey respondents’ networks



Consumer Metrics – devices and users


• 168 mm SMS customers on respondents’ networks

• 88.8 mm MMS customers on respondents’ networks

• 41 mm Smartphones & PDAs on respondents’ networks

• 10.8 mm wireless-enabled laptops, aircards, & wireless modems on respondents’ networks


• 168 mm SMS customers on respondents’ networks

• 88.8 mm MMS customers on respondents’ networks

• 41 mm Smartphones & PDAs on respondents’ networks

• 10.8 mm wireless-enabled laptops, aircards, & wireless modems on respondents’ networks



What Has Changed?

• We eliminated multiple revenue questions:

– Enterprise Applications Revenues – discontinued

– Messaging (MMS and SMS) Revenues - discontinued

– Downloadable Content Revenues (total, as well as selected break-

outs) - discontinued

– Mobile Video Content Revenues – discontinued

• We have added traffic questions (MB), and first machine-to-machine

question


How do the revenue questions currently read?

11. Total revenues from data-only plans using Aircards or laptop-embedded modems for the six month period.

12. Total revenues for data services on wireless-enabled PDAs and Smartphones for the six-month period.

13. Total revenues from data service subscriptions for the six-month period. (Internet access and web browsing.)

14. Sum total revenues for all wireless data services provided in the six-month period.

Wireless Internet Caucus San Diego, Oct 6, 2009 29WIRELESS 2009- Vegas

Leadership Council

• Current Action Teams Current Action Teams – Camera Phone Code Scan– Off Portal – Mobile Content– Mobile Advertising


Wireless Internet Caucus Wireless Internet Caucus Code Scan Action TeamCode Scan Action Team

Presented by:Athena Polydorou, CTIA-The Wireless AssociationAthena Polydorou, CTIA-The Wireless Association


Team Charter and ActivitiesTeam Charter and Activities

• Goal: develop standards and assist development of a camera-Goal: develop standards and assist development of a camera-phone barcode scanning market in the U.S.phone barcode scanning market in the U.S.

• Published white papers, available at Published white papers, available at www.ctia.org/codescan:• Code Scan White Paper (2008)Code Scan White Paper (2008)• Marketing Guide for Camera-Phone Based Barcode Marketing Guide for Camera-Phone Based Barcode

Scanning (2009)Scanning (2009)


Recent ActivitiesRecent Activities• Team identified need for:Team identified need for:

– Central Registry:Central Registry: Registration authority for the code scanning ecosystem primarily responsible for creating identifiers.

– Central Clearing House:Central Clearing House: RResponsible for directing traffic, routing codes and enforcing ecosystem policies. In addition, the Clearing House will manage metadata and accounting data.

• Separate RFPs developed for the Registry and Clearing Separate RFPs developed for the Registry and Clearing House with the intent to release Q3 2009House with the intent to release Q3 2009


Current StatusCurrent Status

• CTIA sought guidance on:CTIA sought guidance on:– Scheduling the release of the RFPsScheduling the release of the RFPs– Feedback on the legal landscape/patent IP litigationFeedback on the legal landscape/patent IP litigation

• Result: Insufficient carrier support to move forward with the Result: Insufficient carrier support to move forward with the release of the RFPs.release of the RFPs.


Wireless Internet Caucus Wireless Internet Caucus Off-Portal Action TeamOff-Portal Action Team

Presented by:Jeff Simmons, CTIA-The Wireless AssociationJeff Simmons, CTIA-The Wireless Association


ObjectivesObjectives

• Ongoing, rigorous assessment of 3Ongoing, rigorous assessment of 3rdrd Party content Party content providers compliance with Industry Best Practices for providers compliance with Industry Best Practices for CSC-based servicesCSC-based services

• Improvement of industry monitoring system to Improvement of industry monitoring system to enable better compliance with CSC Best Practicesenable better compliance with CSC Best Practices

35


Registry ImprovementsRegistry Improvements• Implement a Standard Campaign Application (SCA)Implement a Standard Campaign Application (SCA)• Includes All Fields required by all Mobile Carriers to Approve Includes All Fields required by all Mobile Carriers to Approve

and Provision Mobile Campaignsand Provision Mobile Campaigns• Required Information in Consistent Format is Essential to an Required Information in Consistent Format is Essential to an

Effective Monitoring Effort – Tie Monitoring to RegistryEffective Monitoring Effort – Tie Monitoring to Registry• Registry Application Data Must Be Maintained and Kept Registry Application Data Must Be Maintained and Kept

CurrentCurrent– Used to Monitor Compliance with Best PracticesUsed to Monitor Compliance with Best Practices– Missing or Incomplete Data May Prevent Lessee from Adding New or Missing or Incomplete Data May Prevent Lessee from Adding New or

Renewing Existing CSCsRenewing Existing CSCs

36


Campaign Brief Monitoring testing and Campaign Brief Monitoring testing and tool enhancementstool enhancements

• Updated testing criteria to match MMA 4.0 guidelines• New testing in place

– All front end carrier-specific tests now implemented– Back end subscription renewal and billing checks now implemented

• Engagement among industry to enhance usability, standardization– Improved interactive features for better communication– Improved data search, organization, links to facilitate aggregator

responsiveness– Harmonization of tests, severity levels across carrier requirements


Partner connectivity and carrier Partner connectivity and carrier comparison testing initiativescomparison testing initiatives• Ensured connectivity and successfully completed test drives

with leading aggregators– Aggregators able to access/evaluate their CSC data within tool– Aggregators getting email alerts on ‘Red’ CSC violations– Aggregators able to file protests and request re-tests – with

supporting comments/attachments within tool

• Implemented content provider ‘view only’ access to data

• Now confirming equivalence to carriers’ internal programs– Ensure all appropriate carrier monitoring criteria included in protocols– Ensure proper interpretation of carrier monitoring criteria


Data exchange and API development to Data exchange and API development to improve monitoring programimprove monitoring program

• Carrier approved CSC program data (via email) driving CSC testing queue

• New Registry data to also feed into CSC testing program; initially to provide accurate partner data, ultimately to speed up testing

• CSC monitoring data (identifying more serious ‘Red’ violations) to feed into Registry to provide enforcement mechanism

• Initial implementations email/FTP with API mechanisms to follow

• Aggregators now enabling CSC partner data updates via helpdesk/protest functionality (i.e., correct CP/agg)


In-Market Media MonitoringIn-Market Media Monitoring

• Selection and Implementation of Service Provider – Selection and Implementation of Service Provider – April 2009April 2009

• Refinement of Severity Levels for Violations of CBPRefinement of Severity Levels for Violations of CBP• Focus on Issues Significantly Impacting Consumers Focus on Issues Significantly Impacting Consumers

and Gaining Attention of Regulators and States’ and Gaining Attention of Regulators and States’ Attorneys GeneralAttorneys General

40


Next StepsNext Steps

• Refinement of monitoring tests until industry and Refinement of monitoring tests until industry and individual monitoring programs are indistinguishableindividual monitoring programs are indistinguishable

• Comparison testing by participating carriers and Comparison testing by participating carriers and assessment of industry monitoring programassessment of industry monitoring program

• Opportunity for individual carriers to begin Opportunity for individual carriers to begin decommissioning internal monitoring programsdecommissioning internal monitoring programs

41


Games Rating Initiative Games Rating Initiative

Mobile Content Action TeamMobile Content Action Team

Presented by:Athena Polydorou, CTIA-The Wireless AssociationAthena Polydorou, CTIA-The Wireless Association


Current InitiativeCurrent Initiative

• Implement industry’s November 2005 commitment to Implement industry’s November 2005 commitment to develop voluntary content classification standards and develop voluntary content classification standards and access controls for Carrier Content, as well as content access controls for Carrier Content, as well as content access controls for the Internetaccess controls for the Internet

• Mobile Games is the first content type to be addressedMobile Games is the first content type to be addressed• Industry reached agreements with the top mobile game Industry reached agreements with the top mobile game

publishers and the ESRB on a ratings process for mobile publishers and the ESRB on a ratings process for mobile gamesgames


Current InitiativeCurrent Initiative

• Planned announcement at CTIA Wireless 2009 that, beginning in Planned announcement at CTIA Wireless 2009 that, beginning in Q4 2009, only games rated by the ESRB would be available for Q4 2009, only games rated by the ESRB would be available for purchase on carrier deckspurchase on carrier decks

• Carriers committed to display the ESRB rating as part of the Carriers committed to display the ESRB rating as part of the merchandizing of the game on the carrier’s deck and Web sitemerchandizing of the game on the carrier’s deck and Web site

• Two issues arose to halt announcement:Two issues arose to halt announcement:– Off-deck/online app stores had not been consideredOff-deck/online app stores had not been considered– The depth and breadth of online app store catalogs made The depth and breadth of online app store catalogs made

extending the requirement to limit the mobile games they extending the requirement to limit the mobile games they offer to only those rated by ESRB unrealisticoffer to only those rated by ESRB unrealistic


Wireless Industry Outreach to App StoresWireless Industry Outreach to App Stores• On July 30th, Steve Largent invited CEOs of app stores to join the On July 30th, Steve Largent invited CEOs of app stores to join the

mobile games rating display initiative: mobile games rating display initiative:

• AppleApple• GoogleGoogle• HandangoHandango• HandmarkHandmark

• No specific deadline was set for implementation from app stores; No specific deadline was set for implementation from app stores; only the commitment to include games ratingsonly the commitment to include games ratings

•MicrosoftMicrosoft•NokiaNokia•Palm Palm •RIMRIM


Wireless Internet Caucus Wireless Internet Caucus Mobile Advertising Action TeamMobile Advertising Action Team

Presented by:Jeff Simmons, CTIA-The Wireless AssociationJeff Simmons, CTIA-The Wireless Association


Main Objectives of Team CharterMain Objectives of Team Charter• Advertising Potential - $24 billlion by 2013*Advertising Potential - $24 billlion by 2013*• Various Challenges Result in Advertisers Merely Experimenting Various Challenges Result in Advertisers Merely Experimenting

with Mobilewith Mobile– Lack of common metrics, reporting methodsLack of common metrics, reporting methods– Lack of common, consistent targeting dataLack of common, consistent targeting data– Lack of consistent inventoryLack of consistent inventory

• GSMA Success in Europe – Combined Carrier Working GroupGSMA Success in Europe – Combined Carrier Working Group• Strength in NumbersStrength in Numbers

– Unique value proposition in unified carrier groupUnique value proposition in unified carrier group– Efficient and effect growthEfficient and effect growth

• Key DeliverablesKey Deliverables– Measurement & reportingMeasurement & reporting– TargetingTargeting– Advertising InventoryAdvertising Inventory– Address privacy concernsAddress privacy concerns

* - ABI Research


Current DeliverablesCurrent Deliverables• Standardized Mobile Metrics and DefinitionsStandardized Mobile Metrics and Definitions

– Six metrics and definitions, measure effectiveness of mobile ads Six metrics and definitions, measure effectiveness of mobile ads – Common across advertising mediums, describe mobile audienceCommon across advertising mediums, describe mobile audience– CPNI / FTC Behavioral Marketing CompliantCPNI / FTC Behavioral Marketing Compliant

• 33rdrd Party Ad Serving Terms & Conditions Party Ad Serving Terms & Conditions– Rewrite of IAB 3Rewrite of IAB 3rdrd party ad serve T&Cs for Internet Ads party ad serve T&Cs for Internet Ads– Adapted to mobileAdapted to mobile

• Pilot Launch and Ongoing Aggregation of Carrier Log File DataPilot Launch and Ongoing Aggregation of Carrier Log File Data– All carriers agree to move forward; AT&T, VZW to provide initial dataAll carriers agree to move forward; AT&T, VZW to provide initial data– Sprint, TMO to begin adding their data shortlySprint, TMO to begin adding their data shortly


Mobile Advertising Metrics & DefinitionsMobile Advertising Metrics & DefinitionsTerm Definition

Unique Subscriber An identified and unduplicated individual mobile subscriber who accesses mobile content or advertising during a measurement period.

Ad Impression A response measurement from an ad delivery system to either (1) an explicit request from the subscriber or (2) an automated response from the system based on other user actions/inaction that is recorded at a point as late as possible in the process of delivery of the creative material to the device.

Click A response measurement from an explicit subscriber request to select/click the advertisement.

Click Through Rate (CTR) The calculation of Clicks/Ad Impressions during a measurement period.

Unique Clickers An identified and unduplicated individual mobile subscriber with a qualified “click” during a measurement period.

Unique Penetration Rate (UPR) The calculation of Unique Clickers/Unique Subscribers during a measurement period.


Ringback CopyRingback Copy

Advertising MetricsAdvertising Metrics

Common APIs Common APIs

LBS InteroperabilityLBS Interoperability

SpamSpam

Future InitiativesFuture Initiatives

Leadership Council


Who Belongs Here?Who Belongs Here?

Who’s Missing? Who’s Missing?

What Initiatives?What Initiatives?

Structure?Structure?

Going Forward . . .Going Forward . . .

Leadership Council

Wireless Internet Caucus San Diego, Oct 6, 2009 52Wireless Internet Caucus San Diego, Oct 6, 2009 5252

Sponsored by:

wireless internet caucussan diego, oct 6, 20091 leadership council meeting room: 29a october 6, 2009

Documents

total data revenues

wireless modems

wireless associationoctober

ringtone revenues

reportabletotal revenues

wirelessenabled pdas

number of data

wirelessenabled laptops