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Manufacturers and suppliers ofInformation and CommunicationsTechnology present…TIA2013PLAYBOOKAn overview of the ICT market, technologies,and policies that drive innovation and investmenttiaonline.orgTIA POLIcY PrIOrITIesIndusTrY OuTLOOK TIA BenefITs

TelecommunicaTions indusTry associaTionKey ContactsFor more information on TIA’s public policy positions and activities, please contactone of the TIA government affairs staff members below:GRANT SEIFFERTPresident+1.703.907.7701gseiffert@tiaonline.orgDANIELLE COFFEYVice President &General Counsel,Government Affairs+1.703.907.7734dcoffey@tiaonline.orgJ O S E p h ANDERSENEnergy & Environment+1.703.966.0685jandersen@tiaonline.orgDAVID GRAYAssociate,Government Affairs+1.703.907.7710dgray@tiaonline.orgERIC hOLLOWAYDirector, International &Government Affairs+1.703.907.7712eholloway@tiaonline.orgBRIAN SCARpELLISr. Manager,Government Affairs+1.703.907.7714bscarpelli@tiaonline.orgDILEEp SRIhARIDirector, Legislative &Government Affairs+1.703.907.7715dsrihari@tiaonline.orgMARK UNCAphERDirector, Regulatory &Government Affairs+1.703.907.7733muncapher@tiaonline.orgOther departments:C h E R Y L BLUMVice President,Technology & Standards+1.703.907.7436cblum@tiaonline.orgh E R B CONGDON, pEAssociate Vice President,Technology & Standards+1.703.907.7703hcongdon@tiaonline.orgJOhN JACOBSSr. Vice President, Membership,Marketing & Business Development+1.703.907.7747jjacobs@tiaonline.orgANDREW KURTZMANVice President &Corporate Counsel+1.703.907.7413akurtzman@tiaonline.orgTALY WALShVice President,Networking & Intelligence+1.703.907.7744twalsh@tiaonline.org2 TIA 2013 PLAYBOOK

TelecommunicaTions indusTry associaTionTelecommunications Industry AssociationCONNECTIVITY, INNOVATION, LEADERShIp, ANDRESpONSIBILITY are Core Values of TIA. Our mission isto turn those values into initiatives that benefit ourmembership and the manu facturers and suppliersof global networks.Companies that join TIA share a common vision for thefuture of the Information and Communications Industry —a vision that informs their strategic planning and satisfiestheir business goals. TIA members gain exclusiveaccess to the latest intelligence on information andcommunications technologies and participateas industry leaders to create standardsand advise on government andindustry policy.If YOu THOuGHTTHe WOrLd WAs sHrInKInG,YOu HAVen’T seen AnYTHInG YeT.TIA 2013 PLAYBOOK 3

TIA PolIcy PrIorITIesTIA Innovation AgendaADVANCE GLOBALCOMpETITIVENESSThROUGh:j Market Accessand Tradej Research andDevelopmentj Education and Talentj Tax ReformDRIVE INVESTMENTThROUGh:j BroadbandDeploymentj Market-BasedRegulationsENABLE FORWARD-LOOKINGTEChNOLOGIES WITh:j Spectrum Availabilityj Global Cybersecurityj Green ICT and Smart Gridj Accessibilityj Public Safety4 TIA 2013 PLAYBOOK

Innovation Reaps BenefitsTIA POLICY PRIORITIESThe TIA RoAdmAp will drive investment in broadband networks andapplications, accelerating social and economic development by:j ConneCTIng communitiesand enterprise customerswith the essential 21st centuryinfrastructure.j SuSTAInIng, redefining,creating, and multiplying jobs.j enhAnCIng productivity,enabling teleworking.j InCReASIng eco-sustainabilityand smart grid deploymentsthrough intelligent technologies.j o f f e R I n g new tools for publicsafety and homeland security.j ImpRovIng public healthfacilities through telemedicine,digital hospitals, and e-records.j fACIlITATIng e-government.j f o S T e R I n g powerfuleducational tools in theclassroom and boostingdistance-learning capabilities.j m A k I n g the power ofcommunications accessibleto all.TIA PolIcy PrIorITIesTIA 2013 PLAYBOOK 5

TIA POLIcY PrIOrITIesTIA POLICY PRIORITIESInnovation Drives Jobs & Economic Growthj ICT COMpANIES ACCOUNTED for 3.5 millionjobs, with average compensation for ICTworkers more than 80 percent higher than forthe workforce overall.j ICT FIRMS CONTRIBUTE about $1 trillion tothe U.S. GDP through both direct and indirectcontributions — about 7 percent of the U.S.economy.j ICT’S DIRECT CONTRIBUTIONS to GDPhave increased nearly 25 percent since the1990s, growing from 3.4 percent per year in1991–1993 to an average of 4.2 percent peryear in 2005–2009 — gains unmatched byany other industry.j EFFECTIVE IMpLEMENTATION OF ThEMIDDLE CLASS TAX RELIEF AND JOBCREATION ACT OF 2012 will fund thedevelopment and initial deployment of anationwide wireless broadband data andcommunications network for public safetyagencies and would lead to the creation of anestimated 100,000 new jobs in ICT industriesand, over time, produce indirect or spilloverbenefits of an estimated $4 billion to$8 billion per year.6 TIA 2013 PLAYBOOK

TIA PolIcy PrIorITIesRecapture Global CompetitivenessLAWMAKERS CAN RECApTURE GLOBAL COMpETITIVENESS ThROUGh:j MARKET ACCESS & TRADE — Securingaccess to international markets bypromoting trade liberalization anda market-based, technology-neutralapproach to regulation in internationalmarkets.j RESEARCh & DEVELOpMENT —Strategic and robust U.S. investmentin telecommunications research,including permanent tax incentives forinnovation, multi-year federal researchplans, and a commitment to long-termresearch will enable the United Statesto remain a technology industry leader.j EDUCATION & TALENT — The future of theICT industry in the United States depends onproviding the necessary support for educationin science, technology, engineering, andmathematics (STEM) for our students, whileenacting immigration reforms to allowcompanies to attract and retain the best andbrightest minds from around the world.j TAX REFORM — U.S. firms are disadvantagedby virtue of the fact that the U.S. corporatetax rate is now the highest in the world. TIAwill press for comprehensive reform that willcut the U.S. corporate tax rate to a level thatwill enhance the international competitivenessof U.S. firms, while moving towards acompetitive territorial system for taxation offoreign earnings.TIA 2013 PLAYBOOK 7

TIA PolIcy PrIorITIesThe United States Must Achieve Leadership in BroadbandBroadband Penetration 2012 (Percent)Source: TIA’s 2013 ICT Market Review and ForecastSwitzerlandDenmarkNorwayNetherlandsHong KongSouth KoreaFranceBelgiumIcelandUnited KingdomSwedenLuxembourgGermanyCanadaBahrainMaltaFinlandEstoniaUnITeD STaTeSJapan0 10 20 30 40j ThE UNITED STATES LAGSBEhIND OThER DEVELOpEDNATIONS in broadbanddeployment.j ThE UNITED STATESRANKED 19Th in broadbanddeployment in 2012, fallingfrom its 17th place rankingin 2011.j ThE UNITED STATES MUSTNOT BE OUTpACED bymajor trading partners indeployment of cutting-edgetechnologies and networks.j LACK OF BROADBANDCONNECTIVITY INhIBITSJOB CREATION in theUnited States.8 TIA 2013 PLAYBOOK

TIA PolIcy PrIorITIesMarket Access and TradeTIA pOLICIES SECURE ACCESS TO INTERNATIONAL MARKETS by promoting trade liberalizationand a market-based and technology-neutral approach to regulation in international markets:j BUSINESS DEVELOpMENT OppORTUNITIESfor U.S. suppliers should be facilitated bypromoting full, fair, and open competition ininternational markets.j TRADE AGREEMENTS that eliminate orreduce traditional market access barriersand technical barriers to trade should bepromoted.j EXISTING COMMITMENTS by signatories tothe World Trade Organization (WTO) BorderTax Adjustment (BTA), Information TechnologyAgreement (ITA), Government ProcurementAgreement (GPA), and Agreement onTechnical Barriers to Trade (TBT) should beenforced.j COMMUNICATIONS SERVICES must beliberalized on a technology-neutral basis.j BILATERAL AND MULTILATERAL TELECOMagreements should provide transparency,independent regulatory authority, nondiscriminationagainst foreign suppliers, andtechnology neutrality.j ThE DEVELOpMENT AND IMpLEMENTATIONof export control mechanisms that enhancethe abilities of companies to export theirproducts overseas should be supported.j ThE U.S. EXpORT CONTROL REGIME shouldbe modernized to increase transparency andclearly delineate jurisdiction between theCommerce and State Departments.TIA 2013 PLAYBOOK 9

TIA PolIcy PrIorITIesTop Trade Destinations for U.S. EquipmentU.S. exports of Telecommunicationsequipment by Region2011Source: TIA’s 2013 ICT MarketReview and ForecastCanada11.2%Middle east/africa7.4%europe32.2%j IN 2011, EUROpE WAS ThELARGEST MARKET for U.S.equipment exports, followed byLatin America and Asia Pacific.j IN 2011, ThE TOp 10 EXpORTDESTINATIONS together, whichcomprised 59 percent of all U.S.telecommunications equipmentexports, accounted for $9.97 billionin telecommunications equipmentpurchases from the United States.asia Pacific22.4%Latin america26.8%j MEXICO WAS ThE LEADINGDESTINATION for the export ofAmerican telecommunicationsequipment in 2011, accounting for$2.4 billion, down slightly from2010.10 TIA 2013 PLAYBOOK

TIA PolIcy PrIorITIesChina: SECToR SnApShoTTelecommunicationsSubscribers in China(Millions)547461Source:TIA’s 2013ICT MarketReview andForecast641747859368 366 340 314 294 285 275 265 260 2559861,1001,2001,2751,350WirelessLandline1,4252502006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016j ChINA hAD ThE LARGESTTELECOMMUNICATIONS MARKET in AsiaPacific at $487 billion in 2012.j ChINA IS ThE LARGEST FIXEDBROADBAND MARKET in the world, with185 million subscribers in 2012.j BY 2016, ChINA WILL hAVE 305 MILLIONBROADBAND SUBSCRIBERS, representing66 percent of the Asia Pacific region’s totalsubscriber growth.j ChINA hAS ThE LARGEST WIRELESSMARKET in the world, with 1,100 millionwireless subscribers in 2012. By 2016, it isexpected to grow by another 325 millionsubscribers to 1.42 billion subscribers.j ALThOUGh ChINA’S BROADBANDMARKET IS LARGE IN ABSOLUTE TERMS,penetration in China was only 13.4 percentin 2012. This is expected to grow to21.74 percent by 2016.TIA 2013 PLAYBOOK 11

TIA PolIcy PrIorITIesIndia: SECToR SnApShoTTelecommunications Subscribersin India (Millions)Source: TIA’s 2013 ICT Market Reviewand Forecast16623441 393475257528949501,0501,150WirelessLandline1,25038 37 35 33 31 30 29 281,325272006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016j IN 2012, INDIA hAD ThESECOND LARGEST wirelessmarket in Asia Pacific with950 million subscribers,projected to reach 1.33 billionby 2016.j INDIA ADDED AN AVERAGEof more than 4.5 millionwireless subscribers permonth in 2012.j FIXED BROADBANDREMAINS LIMITED in India —penetration was 1.16 percentin 2012 — because of poorinfrastructure in rural areas,where 70 percent of thepopulation lives.12 TIA 2013 PLAYBOOK

TIA PolIcy PrIorITIesResearch & DevelopmentSTRATEGIC AND ROBUST U.S. INVESTMENT INTELECOMMUNICATIONS RESEARCh includingpermanent tax incentives for innovation, multi-yearfederal research plans, and a commitment to long-termresearch will enable the United States to remain atechnology industry leader.j INCREASED FEDERAL RESEARCh FUNDING MUSTBE ALLOCATED for network- and communicationsspecific,precompetitive basic research.j ThE U.S. GOVERNMENT MUST MAKE LONG-TERMCOMMUNICATIONS RESEARCh A pRIORITY, andfunds need to be directed to key areas: universalbroadband; interoperable mobility; and homelandsecurity-related fields including interoperability,security, survivability, and encryption.TIA 2013 PLAYBOOK 13

TIA PolIcy PrIorITIesEducation & TalentThE FUTURE OF ThE ICT INDUSTRY IN ThEUNITED STATES depends on providing thenecessary support for education in science,technology, engineering, and mathematics (STEM)for our students while enacting immigration reformsto allow companies to attract and retain the bestand brightest minds from around the world.j ENACTMENT OF IMMIGRATION REFORMSshould increase the number of H1-B visas,eliminate per-country caps, and facilitate theretention of STEM graduates from U.S. universitiesto improve and strengthen our domesticworkforce.j CONGRESS MUST REAUThORIZE AND FUNDThE AMERICA COMPETES ACT (pL 111-358)and maintain a commitment to invest in STEMeducation to help ensure that America iseducating the workforce of the future.14 TIA 2013 PLAYBOOK

TIA PolIcy PrIorITIesTax ReformCOMpREhENSIVE TAX REFORM will affect thecompetitiveness of U.S. firms, which are alreadydisadvantaged by virtue of the fact that the U.S.corporate tax rate is now the highest in the world.j ThE CORpORATE TAX RATE MUST BE REDUCEDto a level that will enhance the internationalcompetitiveness of U.S. firms.j ThE UNITED STATES ShOULD MOVE TOWARDSA COMpETITIVE TERRITORIAL TAX SYSTEM forforeign earnings, which will encourage domesticinvestment and boost our nation’s economy.j A ROBUST TAX INCENTIVE FOR INNOVATIONthat is permanent, simpler to claim, and supportsinvestments by both large and small businessesmust be included in any comprehensive reform.TIA 2013 PLAYBOOK 15

TIA PolIcy PrIorITIesDrive InvestmentLAWMAKERS ShOULD DRIVE INVESTMENT inbroadband networks and services through:j BROADBAND DEpLOYMENT — Through incrementaltax credits, expensing, and bonds, the U.S.government can increase investment in our nation’sfuture and domestic prosperity.j MARKET-BASED REGULATIONS — A continuedlight-touch approach to regulation, as well ascertainty in the marketplace, will ensure continuedinvestment in a technology-neutral manner.16 TIA 2013 PLAYBOOK

TIA PolIcy PrIorITIesBroadband DeploymentTIA ENCOURAGES the U.S. government to increaseinvestment in our nation’s future and domesticprosperity through the enactment of incrementaltax credits, expensing, and bonds.j ThE UNITED STATES MUST ENACT pERMANENTTAX INCENTIVES FOR INNOVATION, which willallow companies to make long-term researchplans while being assured that the incentives willcontinue for the life of the project.j TAX pOLICIES ShOULD BE IMpLEMENTED ThATWILL DRIVE INVESTMENT IN BROADBANDthrough tiered tax incentives that accelerate asthe speed offered by such service increases,recognizing differing tiers and floors depending onthe technology deployed.TIA 2013 PLAYBOOK 17

TIA PolIcy PrIorITIesBroadband GoalsTIA CALLS ON ThE ADMINISTRATION, CONGRESS, and other government bodiesto adopt a framework that supports the following goals:j UNIVERSALLY AVAILABLE, high-quality, andaffordable broadband connectivity.j CONSUMERS’ ABILITY TO CONNECT to andaccess content over the Internet.j NETWORK OpERATORS’ ABILITY to engagein reasonable, pro-competitive networkmanagement.j TEChNOLOGY-NEUTRAL COMpETITIONamong existing and emerging platforms andproviders.j INCREASED AVAILABILITY of unencumberedspectrum in large and contiguousblocks for commercial services, locatedadjacent to like uses.j UTILIZATION OF MARKET-BASEDMEChANISMS to drive spectrum to itshighest and best uses.j UNIFORMITY IN REGULATION, whereappropriate, including federal ruleswherever possible.j ELIMINATION OF REGULATORY BARRIERSto investment and innovation.18 TIA 2013 PLAYBOOK

TIA PolIcy PrIorITIesMarket-Based RegulationsA CONTINUED LIGhT-TOUCh AppROACh TO REGULATION, as well as certainty in themarketplace, will ensure continued investment in a technology-neutral manner.j GOVERNMENT MUST ENhANCE EFFORTS tostimulate investment and innovation in nextgenerationbroadband.j NETWORK OpERATORS should have theability to engage in reasonable, pro-competitivenetwork management.j TEChNOLOGY AND SERVICE NEUTRALITYARE CRITICAL, and when regulation isnecessary, it should be structured to promotecompetition among existing and emergingplatforms and providers.j GOVERNMENT ShOULD ENSUREUNIFORMITY in regulation for IP-enabledservices through exclusive federal jurisdictionof these services by the FederalCommunications Commission, which willlead to increased certainty and investmentin the marketplace.j TEChNOLOGY MANDATES by thegovernment hamstring innovation andincrease consumer costs.TIA 2013 PLAYBOOK 19

TIA PolIcy PrIorITIesEnable Forward-Looking TechnologiesTIA CALLS ON pOLICY MAKERS to enable forward-looking technologies through:j SpECTRUM AVAILABILITY — Innovative,next-generation wireless devices, applications,and services require spectrum availabilityand mobile broadband use. TheFCC and the Administration should movequickly to reallocate spectrum and conductvoluntary incentive auctions, while avoidingburdensome regulations.j GLOBAL CYBERSECURITY — Globalapproaches to cybersecurity and criticalinfrastructure protection are necessary toavoid policies that could negatively impactinvestment in innovation, market access,interoperability, and global security.j SUSTAINABLE ICT — Appropriate federallevelpolicies are critical to driving ICT’spotential to reduce energy consumption in20 TIA 2013 PLAYBOOKother more energy-intensive sectors. Smartgrid, smart buildings, and travel substitutionare key to energy efficiency and sustainablepractices.j ACCESSIBILITY — By encouraging collaborationamong stakeholders and the use ofvoluntary, consensus-based standards, theU.S. government can increase the accessibilityof technology to those with disabilitiesand encourage innovation, and in doing sowill open up new employment opportunitiesfor this vulnerable community.j pUBLIC SAFETY — Improved access toadvanced, interoperable communicationstools for first responders and other publicofficials is essential to the public safetymission.

TIA PolIcy PrIorITIesConsumers Quickly Adaptj CONSUMERS EXpECTCONNECTIVITY and access tovoice, video, and data services anytime, any place, with any device,over any network.j NEXT-GENERATION NETWORKSare revolutionizing the way weshare information and communicate,for example, through broadbandvideo and Voice over InternetProtocol (VoIP). A timely transitionfrom the legacy Public SwitchedTelephone Network “PSTN” to anall-IP network will increase theavailability of advanced services.j AppROXIMATELY ONE-ThIRD ofAmerican households subscribe toVoIP services.IPTV Subscribersin the U.S. (Millions)Source: TIA’s 2013 ICT MarketReview and Forecast0.30.92.04.4VoIP Subscribersin the U.S. (Millions)Source: TIA’s 2013 ICT MarketReview and Forecast6.28.811.42006 2007 2008 2009 2010 2011 2012 2013 2014 2015 201630.313.632.015.333.817.0 18.535.637.425.2 28.614.0 17.1 19.9 Residential SubscribersBusiness Subscribers8.62.1 3.0 3.6 3.7 5.0 5.5 6.0 6.5 7.0 7.51.82006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016TIA 2013 PLAYBOOK 21

TIA PolIcy PrIorITIesSpectrum AvailabilityTIA’S SpECTRUM pOLICIES ARE FOCUSED ON UNIFYING Congress, the Administration,and the FCC in making more spectrum available for wireless broadband, allowing innovatorsto speed products to the market while ensuring maximum efficiency in use and globalspectrum harmonization in order to prevent digital gridlock for mobile users.j ThE FCC AND ThE ADMINISTRATIONshould promptly reallocate spectrum andexpedite voluntary incentive auctionsusing their new authority from Congress.These auctions will facilitate increasedefficiency in frequency use, encouragesharing arrangements where necessary,and allow current licensees and thefederal government to reap financialbenefits from making spectrum availablefor wireless broadband.j GLOBAL hARMONIZATION ANDCOORDINATION of spectrum allocationsshould be a priority.j GOVERNMENT ShOULD ADOpTFORWARD-LOOKING, market-orientedspectrum management policies, seekadditional spectrum allocations for mobilebroadband services, and finalize anyremaining issues regarding deployment ofan interoperable public safety communicationsnetwork as soon as possible.j TEChNOLOGY AND SERVICENEUTRALITY ARE KEY — serviceproviders must be given the flexibilityto choose technologies and platformsindependently based on commercial andcompetitive considerations.22 TIA 2013 PLAYBOOK

TIA PolIcy PrIorITIesSpectrum Availability, ConTInUEDj GOVERNMENT pOLICIES ShOULDENCOURAGE A STABLE regulatoryenvironment that relies primarily onmarket forces and avoids governmentintrusion into new and evolvingservices.j GOVERNMENT ShOULD MAXIMIZEThE pUBLIC BENEFITS of spectrumuse by controlling harmful interference,fostering competition, and quicklyimplementing the recommendationsof the National Broadband Plan callingfor the availability of 300 MHz ofspectrum by 2015 and a total of 500MHz available by 2020, as well as thePresidential Memorandum ordering500 MHz of federal and nonfederalspectrum suitable for both mobile andfixed wireless broadband use to bemade available over the next 10 years.j RESpONSIBLE GOVERNMENTALAGENCIES ShOULD COORDINATE toensure that additional spectrum foradvanced wireless services is madeavailable in a timely manner.j SpECTRUM ALLOCATION ANDASSIGNMENT should be made byopen and transparent processes thatare market-driven and provide forgovernment/industry consultation.Forward-looking management of radiospectrum is essential to the goals ofmaking telecommunications servicesaccessible and of ensuring that thepublic derives maximum benefit fromspectrum use.TIA 2013 PLAYBOOK 23

TIA PolIcy PrIorITIesConsumer Demand Will Require SpectrumTraffic Growth (Percent)Source: FCC Report – Mobile Broadband: The Benefits of Additional Spectrum4000350030002500200015001000500Average Data GrowthTraffic Growth per Site*Tech-Adjusted Trafficper Site**j EACh OF ThE MAJOR CARRIERSis introducing 4G services ona retail basis, and they will beexpanding their networks significantlyin the next few years.j DATA WILL ACCOUNT FORNEARLY 75 pERCENT of overallwireless services spending in 2016.The growth of the data segmentis being driven by the explosionin the number of smartphones,whose owners generate more than10 times the data traffic of standardcellphone owners.02009 2010 2011 2012 2013 2014* Data demand adjusted for additional cell sites.** Data demand adjusted for spectral efficiency improvements.24 TIA 2013 PLAYBOOK

TIA PolIcy PrIorITIesConsumer Demand Will Require Spectrum, ConTInUEDj ACCORDING TO ESTIMATES FROM ThEFCC, the average demand for mobile datawill exceed capacity by nearly 300 MHz by2014 — an increase of 3,506 percent relativeto 2009.j CLEARED, EXCLUSIVELY-LICENSEDSpECTRUM BANDS allow the most efficientand dependable use of spectrum suitablefor mobile broadband deployment andmaximize network investment, marketability,availability, and consumer use. TIA supportsclearing of re-purposed federal spectrumbands to the maximum extent feasible.j ThE MOST pROMISING FORMS OFShARING in spectrum bands that cannot becleared for exclusive licensed use by mobilebroadband networks, including those basedon LTE technology, are licensed sharing withgeographic, frequency, or time-based coordination,including exclusion zones.j SpECTRUM ShARING pRESENTSTEChNICAL ChALLENGES when required ofcertain technologies, including LTE, whetherbased on sensing technology or the FCC’sPart 15 unlicensed rules.TIA 2013 PLAYBOOK 25

TIA PolIcy PrIorITIesGlobal CybersecurityTIA WILL CONTINUE TO ENCOURAGE GOVERNMENT TO WORK SEAMLESSLY WITh INDUSTRYto secure our nation’s networks, businesses, and consumers, calling for policies that enhancetrade and promote communications security as a driver of innovation.j GOVERNMENT AND INDUSTRYMUST LEVERAGE A pARTNERShIpFRAMEWORK to increase the effectivenessof dialogue between industry andgovernment (domestic and foreign)experts to discuss internationalstandards and best practices. Nationsshould use internationally acceptedbest practices relevant to the productsat issue (IT or telecom) when developingcybersecurity and critical infrastructureprotection policies.j CYBERSECURITY pOLICIES that keepmarkets open and minimize barriers totrade must be supported.26 TIA 2013 PLAYBOOKj ThE U.S. CONGRESS ShOULD pASS cybersecuritylegislation that facilitates situational awarenessduring both steady states and times of escalationthrough improved bi-directional informationsharing, enhanced cyber R&D, Federal InformationSecurity Management Act (FISMA) reform, betterpublic awareness through education, and greaterpublic-private collaboration without addingregulations, mandates, or increased bureaucracythat will impede investment in innovation and fail toimprove the nation’s cyber risk profile.j ThE UNITED STATES MUST SERVE AS A LEADERin developing national cybersecurity priorities, riskassessments, and security recommendations foruse by both the private sector and governmententities.

TIA PolIcy PrIorITIesSustainable ICT and Smarter powerTIA ENCOURAGES AppROpRIATE FEDERAL-LEVEL pOLICIES DRIVING ICT’S pOTENTIAL toreduce energy consumption in other more energy-intensive sectors through smart grid, smartbuildings, and travel substitution. Substitution of ICT for outdated technologies is key to improvingenergy efficiency, creating jobs, and helping U.S. industry compete successfully in global markets.j pROMOTE ThE ROLE OF ICT in sustainabletechnologies that reduce energy consumptionand carbon emissions for new buildings andexisting buildings.j STOp “SMART GRIDLOCK” to unlock thefull potential of the smart grid through privateand secure access to energy supply andusage data.j pROMOTE TEChNOLOGY NEUTRALITY insmart grid policy to encourage competitionand innovation.j SUppORT VOLUNTARY ENERGY EFFICIENCYSTANDARDS that facilitate greater efficiencygains without sacrificing innovation.j EMpOWER COMpLEMENTARY pROGRAMS,like the Sustainable TechnologyEnvironments Program (STEP) that go beyondconstruction into the lifetime operation ofnew and existing buildings.j SUppORT FUNDING for both R&D anddeployment of green ICTs such as smart grid,telepresence, guiding automations, andmore.j ENCOURAGE GREATER ADOpTION oftelework and videoconferencing to reduceurban sprawl, ease traffic congestion, andfacilitate travel substitution.TIA 2013 PLAYBOOK 27

TIA PolIcy PrIorITIesAccessibilityTIA ENCOURAGES COLLABORATION AMONG STAKEhOLDERS and the use of voluntary,consensus-based standards to increase the accessibility of technology for those withdisabilities and to encourage innovation, and in doing so harness technology to open upnew communications opportunities to this community.j GOVERNMENT MUST ADOpTpRO-COMpETITIVE pOLICIES thatencourage marketplace solutions andrapid deployment of accessible technologieswhile incorporating technicalfeasibility, such as the allowance ofvoluntary, consensus-based standardsas safe harbors for compliance withregulations, and the use of blanketwaivers for classes of nascent products.j pROACTIVE CONSULTATIONS WITh ThEDISABILITY COMMUNITY and other stakeholderswill lead to the incorporation ofaccessible solutions into member companies’product development process.j ThE GOVERNMENT ShOULD pROMOTEThE DEVELOpMENT OF VOLUNTARY,CONSENSUS-BASED INDUSTRY standardsto address accessibility needs, repeatingsuccesses such as TIA-1083, which reducesmagnetic interference on digital cordlessphones for users with hearing aids.28 TIA 2013 PLAYBOOK

TIA PolIcy PrIorITIespublic SafetyA NATIONWIDE INTEROpERABLE BROADBANDpUBLIC SAFETY NETWORK will give emergencyresponders access to new realtime video and dataapplications that are not currently available.j TOp DOWN COMMAND AND CONTROL METhODSshould be rejected because they will impede thepublic safety users’ access to the most appropriatetechnologies for their specific needs.j A ROBUST FIRSTNET NETWORK should bedeveloped utilizing a competitive vendor ecosystemthat encourages all qualified parties to engage.j NECESSARY MANAGEMENT AND OVERSIGhTMEChANISMS AND STRUCTURES should ensureappropriate services and deliverability are definedas quickly as possible to provide certainty tostakeholders.TIA 2013 PLAYBOOK 29

industry outlookTIA’s ICT Market Review and Forecastnew U.S. Trends, Growth DriversFOCUS IS ON cloud computing, machine to machine (M2M), cybersecurity, and sustainability.j CLOUD COMpUTING allows a more efficientuse of infrastructure and lowers operatingcosts for many companies.j M2M provides opportunities to lowerenergy costs and to substitute expensivephysical manufacturing and distribution withlower-cost digital distribution.j CYBERSECURITY prevents the cost of databreaches that can have catastrophic effectson businesses and on national security.j SUSTAINABILITY leads to reducedspending on energy.Statistics in this publication can be found inTIA’s 2013 ICT Market Review and Forecast.30 TIA 2013 PLAYBOOKj STANDARDS ARE CRITICAL in thedevelopment of these markets. In cloudcomputing, the development of industrystandards would help alleviate securityconcerns. In M2M, standards are neededso that any M2M device can connect toany network. With respect to sustainability,standards are being developed to assist ineconomizing on energy use in buildings andto lower power usage in general.For more information contact:F LO R E N C E SUMARAYDirector, Marketing+1.703.907.7471fsumaray@tiaonline.org

industry outlookTelecommunicationsj ThE GLOBAL TELECOMMUNICATIONS INDUSTRY ROSE 7.0 pERCENT IN 2012, down fromthe 10.0 percent increase in 2011. International spending rose 7.2 percent in 2012, downfrom the 11.3 percent increase in 2011. In the United States, by contrast, growth improved to6.2 percent from 5.9 percent in 2011, the largest gain since 2007. International regions stillposted a larger increase than the United States, continuing the long-term trend. In 2012,spending in the United States exceeded the level reached in 2008.Telecommunications Spending in the United States($ Billions) Source: TIA’s 2013 ICT Market Review and Forecast9511,0431,1051,023 1,0431,1041,1731,2561,3411,4281,511IndusTrY OuTLOOK2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016TIA 2013 PLAYBOOK 31

industry outlooknetwork EquipmentIndusTrY OuTLOOKj ThE INFRASTRUCTURE MARKETgrew 5.3 percent in 2012, a muchslower rate than the 25.5 percentadvance recorded in 2011.Spending will increase at a 3.2percent compound annual rate,reaching $44.2 billion in 2016.network Infrastructure equipment Spendingin the United States ($ Billions)Source: TIA’s 2013 ICT Market Review and Forecast29.334.3 32.529.4 29.6j CUMULATIVE BACKBONESpENDING DURINGThE NEXT FOUR YEARSwill total an estimated$89.6 billion comparedwith $62.8 billion duringthe past four years, a43 percent increase.37.139.1j ALThOUGh MOST OF ThESTIMULUS FUNDING hADRUN OUT BY 2012, ongoingfiber deployments to improvebroadband service in bothspeed and coverage and toenhance wireless backhaulwill continue to drive infrastructurespending.41.7 42.745.244.22006 2007 2008 2009 2010 2011 2012 2013 2014 2015 201632 TIA 2013 PLAYBOOK

industry outlookWireless Equipmentj WIRELESS EQUIpMENTSpENDING ROSE to$66 billion in 2012 and willbe more than $70 billionannually through 2016.j WIRELESS INFRASTRUCTURE EQUIpMENT SpENDINGWILL GROW at a 9.2 percent compound annual rate;and wireless handset spending will grow 3.7 percentcompounded annually between 2013 and 2016, totalinga combined $83.5 billion in 2016.Wireless equipment Spendingin the United States ($ Billions)Source: TIA’s 2013 ICT Market Reviewand Forecast17.4 16.921.017.822.720.224.020.425.2 24.934.425.338.927.042.830.544.533.644.9 45.138.436.2HandsetsInfrastructure2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016TIA 2013 PLAYBOOK 33

industry outlookCablej CABLE OpERATORS ARE INCREASINGBANDWIDTh TO OFFER BI-DIRECTIONALSERVICES, including high-speedInternet, which has been augmented byinstalling DOCSIS 3.0 to deliver Internetspeeds of up to 50 Mbps.j ThE COMBINATION OF NEW SERVICEOFFERINGS BY MULTISERVICE OpERATORS,including cable, stimulated fiber deployments in2012 to 18.7 million fiber miles. Fiber deploymentsare forecast to decline at a 3.6 percent compoundannual rate to 16.2 million fiber-miles in 2016.Fiber Miles Deployed in theUnited States (Millions)Source: TIA’s 2013 ICT Market Review and Forecast15.919.318.7 18.717.518.016.213.814.214.214.62006 2007 2008 2009 2010 2011 2012 2013 2014 2015 201634 TIA 2013 PLAYBOOK

MARKET OVERVIEWTelecommunications Servicesj OVERALL LANDLINE SERVICESSpENDING FELL 4.1 pERCENTIN 2012. Wireless services grew10.3 percent. SMS, photos, music,games, and wireless Internetaccess are growing rapidly.j INTERNET ACCESSAND IpTV WILL OFFSETthe decline in thelandline voice servicesmarket somewhat.j DEVICE MANUFACTURERSWILL OFFER CONTENT-BASED SERVICES and applications,which are fueling thedemand for wireless service.Transport Services SpendingLandline Servicesin the United States ($ Billions)Wireless ServicesSource: TIA’s 2013 ICT Market Review and Forecast254.1238.6222.1205.0185.8184.1 180.7187.2169.8159.1148.1 152.6 150.1159.9138.9144.8 138.9 135.8125.5133.0130.9 129.02006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016TIA 2013 PLAYBOOK 35

MARKET OVERVIEWEmerging network ServicesEMERGING NETWORK SERVICES — unified communications, videoconferencing, public roomservices, audioconferencing service bureau spending, and Web conferencing — are the fastestgrowingcomponents of the telecommunications market. Spending rose 18 percent to $8.7 billionin 2012, led by an 18.1 percent increase in Web conferencing.j UNIFIED COMMUNICATIONSROSE 8.1 percent to$1.7 billion.j VIDEOCONFERENCINGpUBLIC ROOM SERVICESINCREASED 3.2 percent to$1.3 billion.j AUDIOCONFERENCINGSERVICE SpENDING GREW4.7 percent to $3.3 billion.j WEB CONFERENCING ROSE18.1 percent to $2.4 billion.36 TIA 2013 PLAYBOOK

MARKET OVERVIEWSpecialized ServicesSpending on Specialized Services in the United States($ Billions) Source: TIA’s 2013 ICT Market Review and Forecast9080706050403020100Unified CommunicationsVideoconferencing Public Room ServicesAudioconferencing Service Bureau SpendingWeb ConferencingCloud ComputingM2MCybersecurity2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Percent compound annualgrowth rate (CaGR)expected from 2012 to 2016for specialized services:Unified communications6.8 percent CAGRVideoconferencing0.6 percent CAGRaudioconferencing3.3 percent CAGRWeb conferencing13.1 percent CAGRCloud computing16.3 percent CAGRCloud computing servicesfirst became available in2008.M2M57.2 percent CAGRCybersecurity13.6 percent CAGRTIA 2013 PLAYBOOK 37

MARKET OVERVIEWInternational MarketThE INTERNATIONAL MARKET CONTINUED TOREBOUND in 2012, reflecting stabilizing economicconditions following the global recession in 2009.j NATIONAL BROADBAND pLANS throughout the worldare generating investment in broadband infrastructuresand extending the broadband reach to rural and otherunserved areas through fixed and mobile technologies.j LARGE GAINS in broadband and wireless penetrationwill fuel growth in the Asia Pacific, with most of thegrowth generated by China and India.j MIDDLE EAST/AFRICA will again be the fastestgrowingregion during the next four years, averaging10.7 percent growth compounded annually through2016, fueled by double-digit gains in fixed broadband,wireless services, and equipment.38 TIA 2013 PLAYBOOK

MARKET OVERVIEWInternational MarketInternational Telecommunications Revenueby Region ($ Billions)2,000Source: TIA’s 2013 ICT Market Review and Forecast1,500CanadaEuropeMiddle East/AfricaLatin AmericaAsia Pacific1,00050002006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016TIA 2013 PLAYBOOK 39

Technology & STandardSTIA Standards ProgramTIA IS ACCREDITED BY THE AMERICAN NATIONAL STANDARDS INSTITUTE (ANSI) to developvoluntary, consensus, industry standards for a wide variety of telecommunications productsand systems. TIA creates specifications for public safety radio equipment, cellular towers, dataterminals, satellites, telephone terminal equipment, accessibility, VoIP equipment, structuredcabling, data centers, mobile device communications, multimedia multicast, vehicular telematics,machine-to-machine communications, and smart utility mesh networks, among others.j SUPPORTS 12 PRODUCT-ORIENTEDENGINEERING COMMITTEES, consisting of:• 85+ subcommittees and working groups;• Representatives from manufacturers, serviceproviders, consultants, and end users,including federal, state and local government.j PROVIDES SECRETARIAT SERVICES togroups that develop international standards,such as Third Generation Partnership Project 2(3GPP2) and Technical Advisory Groups (TAGs)for forums such as IEC, ISO, and JTC-1.ENGINEERING COMMITTEESTR-8: Mobile and Personal Private Radio StandardsTR-14: Point-to-Point Communications SystemsTR-30: Multi-Media Access, Protocols and InterfacesTR-34: Satellite Equipment and SystemsTR-41: User Premises Telecommunications RequirementsTR-42: User Premises Telecommunications CablingInfrastructureTR-45: Mobile and Personal Communications SystemsTR-47: Terrestrial Mobile Multimedia Multicast (TM3)TR-48: Vehicular TelematicsTR-49: eHealthcare ICTTR-50: M2M-Smart Device Communications (SDC)TR-51: Smart Utility Networks40 TIA 2013 PLAYBOOK

TEChnOLOgY & STAndARdSTIA Standards MissionSUppORT STANDARDS DEVELOpMENTpROCESSES that are timely, cost effective, open,transparent, fair, and nondiscriminatory and drivenby commercial interests to find technical solutionsto communications needs.pROMOTE pRIVATE SECTOR SOLUTIONS andcommercially-oriented decisions for technologydeployment.WORK WITh TIA pOLICY TO:j Identify opportunities for the standards processto address technology issues with legislators andgovernment entities.j Promote government participation in the standardsprocess as end-users.j Work with Congress and executive agencies to ensurea level playing field for all standards worldwide.j Provide assistance to trade officials to resolvestandards-related and other technical barriers to trade.In cooperation with BICSI, CompTIa,InfoComm, and the Communications Cable& Connectivity association, TIa launchedthe standards development process of theSustainable Technology Environmentsprogram (STeP). This effort will bring sustainabilityto the process of planning, designing,integrating and operating technologysystems. Technology is part of the solutionto the future’s economy and STeP will play animportant role in coordinating and enhancingthe benefits that technological innovationbrings to the built environment.For more information contact:ChERYL BLUMVice President,Technology & Standards+1.703.907.7436cblum@tiaonline.orgh E R B CONGDON, pEAssociate Vice President,Technology & Standards+1.703.907.7703hcongdon@tiaonline.orgLearn more about TIa’s standardsactivities at tiaonline.org/standards.TIA 2013 PLAYBOOK 41TIA BenefITs

Decisions are maDe byThose who show upHOsT sPOnsOr:SAVE THE DATE!If you have A rolE in theFuture of the NetworkTIA BenefITsf e A T u r I n G :Mobility | Broadband Capacity | Customer ExperienceManagement | Software Defined Networks | SmallCells | Spectrum Management | M2M & The Internet ofThings | Cloud Computing | Data Center Optimization| Sustainability in ICT | Big Data | Cyber Security | NewBusiness Models | BYOD | Virtualization | MonetizingNetwork Investments | LTE Advanced | Carrier EthernetTHIs OcTOBer, Be A PArT OfseTTInG THe “GLOBAL IcT AGendA”www.tia2013.orgInTeresTed In sPOnsOrInG TIA 2013? cOnTAcT TIA2013@TIAOnLIne.OrG

TelecommunicaTions indusTry associaTionTo To register for for this this year’s year’sSpring Policy Policy Summit,go go to tiaonline.org.to ApRIL ApRIL 19–21, 2013 2013 • CAMBRIDGE, • MARYLANDA virtuous A circle circle of ofinnovation and and investmentdrives drives the the information and andcommunications technology(ICT) (ICT) industry forward,influenced by by governmentpolicy policy and and vice vice versa. versa.The The TIA TIA Spring Policy Policy Summit brings brings together top top industryplayers with with decision makers from from Capitol Hill, Hill, the the White White House,and and federal agencies, including the the Federal CommunicationsCommission (FCC), (FCC), National Telecommunications and andInformation Administration (NTIA), the the Department of Commerce of (DoC), (DoC), and and other other agencies to develop to policies that that drive driveinnovation and and open open markets. The The 2013 2013 Spring Policy Policy Summitbrings decision makers from from all all these these forums, together with withindustry and and other other key key influencers to discuss to and and debate the the top toppolicy policy priorities of the of the ICT ICT industry.TIA TIA 2013 2013 PLAYBOOK 43 43

TelecommunicaTions indusTry associaTionOffering the LatestICT Insights and Trends• Hottest Issues • Influential Guests• Leading ProgramsFeatured programming includes:• All The Angles• DC Beat• From the Top• Innovating Standards• The List• Markets in Motion• Member Spotlights• TIA NOW Webinar Series• TIA NOW Documentary SeriesTIA’s online video network is the industry authority analyzingthe ICT World:j Delivering engaging content to an audience of 60,000 ICTexecutives and decision makers.j Offering a unique position within the industry on all ICT issues.j Providing compelling programming that spans policy, news,emerging technologies, and evolving business strategies.j Ensuring strategic lead generation and branding opportunities.If you are interested in sponsoring anyof our featured programs or would likeus to create a custom-produced videoin the TIA Studio, please contact:44 TIA 2013 PLAYBOOKAbe NejAdICT Journalist/Anchor+1.703.907.7004anejad@tiaonline.orgClAire johNsoNProducer/Digital Production Manager+1.703.907.7742cjohnson@tiaonline.org

TelecommunicaTions indusTry associaTionTIa continues to lead the way forManufacturers and Suppliers of Global networks —and remains the clear choice for your company!Currently in its 89th year, the Telecommunications Industry Association (TIA) represents the globalinformation and communications technology (ICT) industry through:j TEChNOLOGY AND STANDARDSDEVELOpMENTj pOLICY AND ADVOCACYj BUSINESS OppORTUNITIESj NETWORKINGj MARKET ANALYSISj WORLDWIDE ENVIRONMENTALREGULATORY ANALYSISHundreds of companies like yours work through TIA to enhance the business environmentfor telecom, broadband, mobile wireless, information technology, network, cable, satellite,emergency communications, and sustainable technologies.Learn more at tiaonline.orgJOh N JACOBSSr. Vice President, Membership,Marketing & Business Development+1.703.907.7747jjacobs@tiaonline.orgANCILLA BRADYDirector, Member Relations+1.703.907.7713abrady@tiaonline.orgTIA 2013 PLAYBOOK 45

TelecommunicaTions indusTry associaTionTIA MembersThE TELECOMMUNICATIONS INDUSTRY ASSOCIATION’S MEMBER COMpANIES INCLUDEThOUSANDS of information and communications technology (ICT) professionals participating instandards, government affairs, market intelligence, and product-oriented environmental compliance.Discover how you can gain a competitive advantage in the broadband economy by leveragingTIA’s full range of services by contacting TIA’s Membership Department at +1.703.907.7713 ormembership@tiaonline.org.2M Companies, Inc.3M Communication MarketsDivisionAccedian NetworksAccess PartnershipACSAdax, Inc.ADTRANAECOMAegis Mobility, Inc.Aeris Communications, Inc.AeroflexAFL TelecommunicationsAirvana Network SolutionsAlcatel LucentAllen Tel ProductsAllied Telephone and Data Corp.Alpha TechnologiesAlteryx LLCAmplicom USA, LLCAnagran, Inc.Anritsu MTBUAnue SystemsAOptix TechnologiesAppleApplied CommunicationSciencesAscomAST Technology Labs, Inc.Astrolab, Inc.ATDI, Inc.AttivaCorpAvtec, Inc.Baxter EnterprisesBechtel Power Corp.Beecher CommunicationsConsultantsBeiJing Giant ElectronicTechnology, LTDBel Stewart ConnectorsBerk-Tek, A Nexans CompanyBeta LaserMike, Inc.BlackBerryBlind Creek AssociatesBridgewater Systems, Inc.BTECH, Inc.C Faulkner EngineeringC LinkCALTROP Construction ServiceCanoga Perkins Corp.Capitol Technology Affairs, LLCCarrier Digit Computer Software46 TIA 2013 PLAYBOOK* As of February 2013

TelecommunicaTions indusTry associaTionSandvine, IncorporatedSatra-Peru SAESchweitzer EngineeringLaboratoriesSDT - Southern DiversifiedTechnologies, Inc.Sector Supply LPSecure Access Technologies, Inc.Sencore, Inc.Sensata TechnologiesServicePower, Inc.SEVEN NetworksSGS Wireless US, Inc.Shapiro Consulting ServicesShenzhen Sanmy TechnologyCo.Siemon CompanySierra Wireless America, Inc.Sigma Delta Communications,Inc.Signamax Connectivity Systems,Inc.Silver Spring Networks, Inc.Sisvel US, Inc.Solaris Technologies, Inc.Sony Wireless Tech DivisionSPATIALinfoSpinnaker Wireless, Inc.SS8 Networks, Inc.SSCSSOE GroupStreakwave Wireless, Inc.Sumitomo Electric LightwaveCorp.SUNA LLCSuncall America, Inc.Surtec AmericaSynaptykTait Radio CommunicationsTANGOTECTaquaTarana Wireless, Inc.TE ConnectivityTechnisonic Industries Ltd.Technology Grid (Pvt) Ltd.TechOne Progressive SolutionsTectonicTelcordia TechnologiesTeleCommunication Systems,Inc.Tellabs, Inc.Telmar Network TechnologyTelnet Consulting, Inc.Thales Communications, Inc.The Cable Clinic LimitedThe Dow Chemical CompanyThe MNM GroupThe Prysmian GroupTMC Radio Pty LtdTotus Solutions, Inc.Tridium, Inc.Tseng InfoServ, LLCTWI Group, Inc.Twisted Pair SolutionsTX RX Systems, Inc.U.S. Conec LTDUbee-AirWalkUL Underwriters Laboratories,Inc.Unicom Electric, Inc.Uniden America CorporationValid8Vector ResourcesVector Structural EngineersVertekVIA TelecomVital Communications, Inc.VMware, Inc.VPISystemsVTech CommunicationsWalker and AssociatesWhitesell ConsultingWiltec TechnologiesWireFreeCom, Inc.WirelessCraftWISP-Router, Inc.WK3C Wireless LLCWonderful Hi-TechW-T Communication DesignGroup, LLCWyless, Inc.Ygomi LLCZetron, Inc.ZTE CorporationTIA 2013 PLAYBOOK 49

TeLecOmmunIcATIOns IndusTrY A s s O c I A T I O nHeAdquArTers1320 n. Courthouse Road, Suite 200arlington, Va 22201-3834USaPhone: + 1.703.907.7700Fax: + 1.703.907.7727tiaonline.orgAffILIATe OffIceUnited States InformationTechnology Office (USITO)Suite 1104, 11th Floor, Sun Palace Buildingno. 12 Taiyanggong Middle RoadChaoyang District, Beijing 100028 PRCinfo@usito.orgtiaonline.org