International Wi-Fi Roaming

Tel Aviv, Israel - June 2013

How Wi-Fi has become a key component of connectivity worldwide

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Wi-Fi | The Consumer Choice for Mobile Data

2

Source: informa telecoms & mediaUnderstanding today’s smartphone user

August 2012

Wi-FiWi-Fi

Wi-FiWi-Fi

Monthly data traffic, global average

• Incredible preference for Wi-Fi on smartphones and tablets

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• Residents of these countries have a very high propensity for regularly accessing Wi-Fi via smartphones.

3

Global| Wi-Fi Adoption

Smartphone-originated Data

Source: Mobidia

65% (Android) and 66% (iOS) originated

on Wi-Fi

82% (Android) and 91% (iOS) originated

on Wi-Fi

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• Wi-Fi is critical to service provider growth strategies• Service differentiation is now viewed as the top driver

for Wi-Fi, ahead of data offloading• Wi-Fi roaming is a priority

› Ranked 8 out of 10 in terms of strategic importance

• New monetization models needed› Innovative models that go beyond directly charging

customers

• First-mover advantage is critical

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Wi-Fi Roaming | Service Provider Adoption

Source: Amdocs, January 2013

Amdocs Unveils Carrier Wi-Fi Survey Results

Based on quantitative research by Analysys Mason involving telephone interviews with decision-makers at more than 30 service providers globally, including North America, Caribbean and Latin America, Europe, the Middle East and Asia-Pacific. The research was conducted in October 2012.

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Wi-Fi Roaming | Market Announcements

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iPass Mobile Network- iPass Inflight

With iPass, you are now free to work online at 30,000 feet

United States Coverage• GoGo Inflight covers the continental

United States on US domestic flights• Easy login using the iPass Open Mobile

client• Select the inflight SSID (GoGo) and login• Enter the displayed security code when

prompted

• Available on select aircraft from:Air Canada, AirTran, Alaska, American, Delta, Frontier, Untied, US Airways, Virgin

International Coverage• International inflight is available on an

increasing number of transcontinental flights

• Easy login- Select the inflight SSID• Then open a Web browser and select

‘roaming’• Input your iPass credentials and you are

online!

• Available on select aircraft from:Aer Lingus, Cathay Pacific, Emirates, Etihad, EVA, Gulf Air, Japan Airlines, Lufthansa, Turkish

iPass offers easy, cost-effective inflight Wi-Fi on select US domestic and international flights allowing business travelers hours of productivity while in the air• No need to create a separate account or sign up with your credit card• Significant savings off of the inflight retail rates when using iPass• Works on your smartphone and laptop

iPass | Optimal Connection Speeds

Performance Suitable for:

Optimal Connection Speed

3G/4G Domestic

3G/4G Roaming

Wi-Fi

Email Up to 250 KBS Yes Marginal Yes

Web Up to 250 KBS Yes Marginal Yes

Voice (VoIP)

250 KBS – 500 KBS

Yes No* Yes

Video 250 KBS– 2 MBS Marginal No* Yes

1. Optimal download speed is the ideal throughput required for best performance, actual data consumption may vary. Example, Facetime on iOS will use 3MBs per minute as will Skype on an iPhone or Android device. However, Skype recommends a minimum of 400 KBS before attempting any type of video call (and states optimal download speed is 500 KBS or higher)

2. While you could use 3G/4G roaming for Voice and Video, the costs associated with roaming makes this not suitable

What are the optimal connection speeds required for common tasks on a smartphone or tablet?

iPass | Average Data Consumption

Performance

Average Data Consumption

Time to 1GB

Web Browsing 10 MB per 30 mins 50 hours

WebEx (Viewing slide presentation)

1.4 MB per minute (Phone)1.8 MB per minute (Tablet)

11.9 hours(Phone)9.3 hours (Tablet)

Skype/Facetime 3MB per minute 5.6 Hours

Video Streaming 3MB – 5MB per minute 3.3 to 5.6 Hours

How much data can a user expect to consume for common activities on a smartphone and tablet? How fast will that activity reach 1GB in total usage?

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Saving money on data roaming using iPass as an alternative

Smartphone Data Roaming

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3G/4G Smartphone Data Roaming Savings | European Traveler within Europe- Post July 2012

25MB 50MB 75MB 100MB 125MB 150MB 175MB 200MB$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200 Inter EMEA TraveliPass Monthly Rate LowiPass Monthly Rate High

1 hr 2hrs 3hrs 4hrs 5hrs 6hrs 7hrs 8hrs

• Assumes $.90 per MB for inter Europe Travel

• 25 MB per hour usage

European organization with international travelers within Europe can save $174 per smartphone user, per month (8 hours of usage)

Monthly Savings Potential Per User

This cost savings example produced with the iPass Cost Savings Tool.

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25MB 50MB 75MB 100MB 125MB 150MB 175MB 200MB$0

$100

$200

$300

$400

$500

$600

$700US to EMEA Avg RateiPass Monthly Rate LowiPass Monthly Rate High

1 hr 2hrs 3hrs 4hrs 5hrs 6hrs 7hrs 8hrs

Monthly Savings

Potential Per User

3G/4G Smartphone Data Roaming Savings | European Traveler to the US

European based organizations with international travelers to the US can save over $900 per user, per month (8 hours of usage)

This cost savings example produced with the iPass Cost Savings Tool. Contact iPass for your own cost savings estimate.

iPass | Strategy and Vision

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iPass Vision | We Simplify Connectivity

13iPass Proprietary and Confidential

Terms & Conditions

Captcha

Portal Login

Day Passes

User Credentials 802.1x

WEP Identity Verification

Ads

SMSSSIDs

VPN

Bad Networks

InflightFree Wi-Fi

Signal Strength

Hotspot FinderPaid Wi-Fi

We speak GIS, OpenAccess, Inflight, and

more

We rate all networks, tell you about the qualified ones

We learn about the conditions of every connection

We find bad networks and help you avoid

them…

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Continuously Validated Network• Starting from “no evidence proving or disproving service quality”• Validating service (locations, networks) via real-world data

Crowd-sourced• Every use of the service should benefit 10-100 other users• Passive data collection from iPass client usage• Active data input from user-generated ratings, content

Rated• Every service location automatically measured and scored• Both positive and negative proofs

iPass Vision | Our Design Goals

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iPass Vision | We Get People Connected

Connectivity is increasingly automatic

Beyond networks, Wi-Fi is about people and places

iPass should know everything about the world of Wi-Fi

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iPass Vision | We Get People Connected

TodayYesterday Tomorrow

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iPass Vision | We Get People Connected

User rates

Dist + index score + recentconnection data= recommend to user

Auth with iPass

Validated network + crowdsourced rating data =index score of 78

Open Mobile Client | - Roadmap for Smartphones & Tablets

Open Mobile Client | - Email Activation

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Open Mobile for Smartphones + Tablets | Email Activation Introduction

Discovery

• Email from IT• Search• Word of mouth

Installation

• Locate on App stores

Activation

• Profile & pin

Connection

• User credentials

Users download iOS, Android and Windows

Touch App

1User enters their email

address to find matching profile

2User validates credentials and uses app. Removes

activation complexity

3

• Requires too many steps and too much information from users • Challenging for IT to provision client and activation information to users• Not enough information passed back to users

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Previous Approach

Challenges With the Previous Approach

New Approach: Email Activation

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Open Mobile for Smartphones + Tablets | How it Works: Email Activation

Success Unsuccessful Match

Open Mobile Client | - Additional Smartphone & Tablet Features for Q2

www.ipass.com 23iPass Proprietary and Confidential

• Native hotspot finder - built into the Open Mobile client

› Online access › Hotspots filtered

by what is defined in the profile

Open Mobile for Smartphones + Tablets | Open Mobile client for iOS & Android (Q3 2013)

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• Speed Test › Wi-Fi up/download Speed Test – “Connection Quality”

• Session limit messaging› Notify users when approaching time based session limits (iOS,

Android)› Disconnect users based on session time (Android)

• False positive improvements› Improvements in handling SSIDs that appear to be iPass network

locations that in reality are not• Better authentication error messaging

› Handling situations where authentication fails

• Subscriber management› Manage profile access permissions based on groups users belong to

Open Mobile for Smartphones + Tablets | Open Mobile client for iOS & Android (Q3 2013)

iPASS PROPRIETARY AND CONFIDENTIAL 24

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• Windows Phone 8› Investigating support for 2H 2013

Open Mobile for Smartphones + Tablets | Additional Items (2H 2013)

iPASS PROPRIETARY AND CONFIDENTIAL 25

iPass Mobile Network | Update

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Middle East& Africa

North America AsiaEurope

Central / SouthAmerica

Over 3,400 Airport VenuesOver 90% coverage of the world’s Top-100 airports

Over 70,000 Hotel andConvention Center Venues

Over 61,000 Free Hotspots(Open Access)

Over 1,800 Airplanes with Premium In-Flight Wi-Fi

Over 150 Unique Wi-Fi Networks

35,404

3,297

366,412

8,768

786,902

61,303

Australia& Oceania

1,608

1,244,031 Hotspots + 12M Community spots123 Countries & Territories 1

Sample venues:

Open Access(free hotspots)

1 As per the ‘ISO 3166’ list of 249 country codes2 As measured by Airports Council International, 2010

2

3 Includes 19,663 hotspot also available in Open Access

3

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2008 2009 2010 2011 2012 -

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

iPass Mobile Network | Hotspot Growth (2008-Present)

iPASS PROPRIETARY AND CONFIDENTIAL

2nd WaveCarrier-deployedMass Market Use

1st WaveUser-deployedNiche Applications

1,244,031

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iPass Mobile Network | Inflight Roadmap

Provider Airlines OM Client Login Web Login

Current Coverage:

GoGo Inflight US and Canadian Domestic Flights Only: Air Canada, Air Tran, Alaska, American, Delta, Frontier, United, US Airways, Virgin America

Yes: iOS, Android, Windows, MacNo: Windows Touch

Yes

International Inflight (Panasonic)

Select Transcontinental Flights Only: Lufthansa, Japan Airlines (JAL), Emirates, Turkish Airlines, Cathay Pacific, Aer Lingus, Transaero, Etihad, Gulf Air, Garudo, Malinda, EVA

Lufthansa Yes

Future Coverage:

International Inflight (Panasonic)

(2H 2013) American Airlines Not initially Yes

Aircell (GoGo)

(2H 2013) Delta (International Flights) TBD TBD