The Mobile Internet Report Key Themes*

Next-Gen Networks / Spectrum Optimization / Network Management Should
Keep Utilization in ~50% Range as Data Usage Approaches = 1GB per Month
Network Utilization (Given Capacity from 3 Sector / 2 Carrier / HSPA+ 21.1 Mbps Cell
Site) vs. Smartphone Penetration (Given Smartphone Users Consume 1GB / Month)
100%
Network Utilization
80%
60%
40%
20%
0%
Where We Will Be by Year-end 2012E
~50% Smartphone Penetration in USA
~50% Network Utilization in Major Market in Peak Times
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Smartphone Penetration
Peak Mobile Traffic Demand (% of Capacity)
Warning Sign (75% Capacity Utilization)
Note: 1GB Smartphone data use is per user per month. Source: Morgan Stanley Research.
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