The Mobile Internet Report Key Themes*

HSPA + Backhaul Upgrades Should Reduce Peak Utilization to ~60-70%
by 2010E Despite Rising Smartphone Penetration + Data Usage
Network Utilization (Given Capacity From 3 Sector / 2 Carrier / HSPA 7.2 Mbps Cell Site)
vs. Smartphone Penetration (Given Smartphone Users Consume 300 MB / Month)
100%
Network Utilization
80%
60%
40%
20%
0%
Where We Will Be by Year-end 2010E
~40% Smartphone Penetration in USA
~60-70% Network Utilization in Major Market in Peak Times
0% 10% 20% 30% 40% 50% 60% 70%
Smartphone Penetration
Peak Mobile Traffic Demand (% of Capacity)
Warning Sign (75% Utilization Level)
Source: Ehud Gelblum, Morgan Stanley Research.
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