1. Covering Entertainment in the Digital Age
Western Knight Center
Verizon Wireless
Gregg Yacovone Director of Marketing
June 2005

2. Wireless Trends
Market penetration – growth from youth and credit challenged
Wireless Product usage is becoming more widespread
B2B
High speed data access
Consumer
Text/Picture/video messaging
Gaming
Video Content
Mobile Music
Location Based Services
Content differentiation will become more significant
MVNO’s entering wireless market
New distribution model for entertainment industry

3. Youth and Wireless Growth
8 million new wireless customers from the youth segment expected over the next three years

4. The Wireless Industry is (Still) Changing
Insert pic
Voice Only
“Painful” Data
Horizontal & Vertical Productivity Applications
Convergence and Multi-media 1G 2G
2.5G 3G
1980’s
2000
2004
2005+
Wireless Broadband services will do for the mobile device what landline broadband did for the desktop

5. Voice Still Dominates Revenues, But Industry ARPU Expected to Decline
Data ARPU expected to offset the decline in voice – but not completely…
U.S. Wireless Monthly ARPU Forecast
Voice
Data
Data as % of Revs
1.4% 2.6% 4.4% 6.3% 8.4% 10.4% 12.5% 15.0% 16.6%
…Are the U.S. analysts correct?
Source: Analyst Composites.

6. Korea Has Shown What is Possible in Just 4 Years…
Data as a Percent of Total Service Revenues (SKT Telecom)

7. … And We Are Tracking Well with Their Results
Cumulative Active BREW Users (Time-adjusted)
KTF (Nov ’01 launch) VZW (Sept ’02 launch)
Active Subscribers
Subscribers by Quarter After Initial Launch of BREW Services

8. Our 3G Network Open the Floodgates for Richer Services and Content
2004+
EV-DO
400kbps – 700kbps
xRTT
40kbps – 60kbps data
Best-in-Class Voice
Business
Speed
Ubiquity
Consumer
Rich Data
Multi-media Experience

9. Transforming the Wireless Experience
VIDEO
Play video-on-demand at TV-like quality.
MUSIC (Future)
Store and play hundreds of MP3-quality songs.
GAMING
Play 3D and multiplayer games.
IMAGING
Take & store multi-mega-pixel digital photos & video.
MESSAGING
Send multi-media messages, IM and on the go.
GPS LOCATION SERVICES (Future)
Find what’s nearby and get turn-by-turn directions.

10. Entertainment TV Time & Movie Trailers Sesame Street & Nickelodeon
Music Videos & VCast Encore
E! Entertainment
TV Time & Movie Trailers
Desperate Housewives 24
Soap 411
Simple Life 3
Sesame Street & Nickelodeon
Comedy Central & Just for Laughs
Daily Show with Jon Stewart

11. Sports Nascar ToGo NBA TV Fox Sportswire ESPN News
ESPN Original Entertainment
Sportscenter
NFL Sunday Countdown
Nascar ToGo
NBA TV

12. News & Information NBC Mobile CNNtoGo CBS MarketWatch AccuWeather
News updates
Today Show Interviews
CNNtoGo
Updated Hourly
CBS MarketWatch
Market Updates
Interviews
AccuWeather
National Weather
City Forecasts

13. 3D Gaming Urban Asphalt GT Kingdom Hearts Tom Clancy’s Splinter Cell
Tony Hawk Pro Skater
Spiderman 2
SWAT the movie
Evil Knievel
The Incredibles
Grizzly Hunting
Etc.

14. Mobile Music – Ring Back Tones
Callers hear music or voice instead of traditional ring
Allows personalization
Customization options
All music types

15. Mobile Music – Multimedia Player
MP3 market is hot!
Singles being released over wireless
Mobile phones provide music service capability
Capable of storing hundreds of songs
Removable memory

16. The Landscape is changing
Mobile Virtual Network Operators (MVNO’s)
Boost Mobile
Virgin Mobile
ESPN
Disney
Amp’d
Movida
Etc.

17. Closing Growth in wireless is driven by:
Youth segment
Content and products
Content and MVNO’s will drive greater segmentation
Entertainment industry and wireless will integrate:
New distribution vehicle for the entertainment industry
Alternate revenue source for the industry
Things to watch:
Location Based Services
Music Services