Seamlessly Fusing Mobile w/ Retail€¢ Latest mobile trends + 4G/LTE 101 primer ... Alcatel Lucent and Ericsson, ... “Blank Slate”-Enterprise PCI tablet

Seamlessly Fusing Mobile w/ Retail

Humphrey Chen Executive Director- New Technologies Development Verizon Wireless Marketing June 29, 2011

• Latest mobile trends + 4G/LTE 101 primer • Store of the future vision • Fully vision-eered example • Some New Technologies to look forward to

Agenda

3

Mobile OS rapidly landscape is rapidly evolving

Oct. ‘09 March ‘10 August ‘10 Dec. ‘10

Apple iPhone

Android

RIM

27%

Mobile Operating System Share U.S. Q4 ’09 –Q4 ‘10

39%

35% 36% 37%

36% 35% 34% 32% 31%

29%

27% 26% 27%

26% 27%

29% 27% 27% 28% 29% 28% 27% 28%

28% 28% 29% 28%

2% 4%

7% 8% 8% 10%

12% 13%

15% 16%

19% 22% 23% 26%

27%

Android has taken the lead

4

Mobile devices now have PC processing power 8X increase in processing power over the past 4 years

Placeholder for footnote/references

2005 2009 2011 2012 2007 2010

300MHz

500MHz

1GHz

2GHz

4GHz

4Mb 250 MHz

16Mb 225 MHz

256Mb 550 MHz

512Mb 1 GHz

512Mb Dual 1 GHz Processor

BlackBerry 7250 BlackBerry 8830

Motorola Droid

Motorola Droid X2

Samsung Fascinate

5

4G-LTE delivers a 10X performance improvement

Placeholder for footnote/references

1995 2004 2007 2010 2000

500k

1Meg

10Meg

20Meg

30Meg

1XRT

EVDO

EVDO REV A

LTE

114k 2G

3G

3G

4G

1Meg

2Megs

25Megs

Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Influencing and Shaping the 4G Future

When the 2G/2.5G world started we only spoke on our devices - then we texted, and did simple emailing…."

2G Now in the 3G world social and cloud based services abound, such as tweeting/face booking. The line between communication /mobile entertainment have begun to blur….."

3G 4G The future is there to be shaped and imagined….the sky is the limit…be your own broadcaster….individually targeted ads…and beyond…????"

4G

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


7

4G Performance Drivers

Any App, Any Device, Any Where – Connected Anyway

~2-5Mbps

0

2

4

6

~5-12Mbps

0

6 10

14

Throughput

EV-DOrA LTE

30-40 ms

Latency

50-70 ms


8

Comparison of Spectrum usage in US

Each frequency has a different rate of energy decay, with higher frequencies decaying faster

Equal Broadcast

Power

Relative distance 2.9x

CDMA 800 MHz

1

WiMax 2500 MHz

1.3x

CDMA & WCDMA 1900 MHz

3.5x

LTE 700 MHz

700 MHz Delivers Superior Building Penetration 8


9

4G License Map Comparison

Nearest Competitor 700 MHz Verizon Wireless 700 MHz

9


10

4G – LTE Strategy •  facilitating proactive 4g related investment •  5 VC’s, Alcatel Lucent and Ericsson, http://4gvf.com •  representing $1.3B in available monies

•  going from 98% to 500% •  driving long tail device support •  shorter cycle times for cert. •  adjusting business models

•  1st in new 4g device categories •  direct support in making it happen •  Waltham, MA, -debuts this Summer •  App Innov Ctr – coming soon

4G

Innovation Center

Open Development

VDC JIL/WAC

4GVF


Strategic identification, assessment and funding of high potential start-ups focused on wireless applications, services and infrastructure

11

4G Venture Forum (4GVF) A membership of select VC firms, partners and Verizon Wireless

+  Iden:fy and share investment opportuni:es

•  Par:cipa:ng firms have $1.3 billion available in aggregate to fund investments generated by the 4GVF

+  Support the development and growth of individual solu:ons

+  Assist in facilita:on of adjacent partnerships and mergers

+  Equip members with deeper understanding of VZW strategic needs

+  Enables VZW and members to have first-‐mover advantage

+  Quarterly review mee:ngs

•  Iden:fy industry trends and opportuni:es •  Highlight exis:ng porQolio companies and prospects

•  Collaborate as peers / partners

+  Viewed as an influen:al group with common interests which new technology start-‐ups will seek out to pitch differen:ated concepts

12

13

14

Verizon

Hunter Scenario:

Verizon Verizon Verizon

Jennifer needs a Prom Dress so she opens up the Store’s app and searches for ”Strapless Prom Dress" on her Verizon 4G Mobile Hand Set.

App gives her the option of picking up from different locations in her area that have it in stock. Jen "Reserves" dress at the location most convenient for her.

Finds one she likes, hits "Reserve” And she can pick it up at her convenience. VZ Nav

Associate gets text: Jen is on her way ETA of 40 Minutes.

“Take Me There” w/Indoor CRM Radar Blank Slate

VZ Nav app integrated into the Store’s app offers to:

“Take Me There”

Bridging mobile intention with informed in-person presence


Hunter Scenario: When Jen enters the mall GPS directions granulate into greater detail to show mall map and footpath to the store.

The footpath updates to guide Jen to the Prom dress section but also offers an augmented reality like view of cross-sell items nearby on the map that will compliment her outfit and "Complete the look", that she can "View" or "Add to cart" in real-time on her way to the dress section. She can circle back for these later.

Jen enters the store and GPS directions again granulate into greater detail to refresh the map and show the store’s floor plan - This time Jen looses Cell reception but is still covered because the store is equipped by Verizon Femto Technology.

N

With Femto Interference

Indoor GPS (proposed) Up-sell/Cross-sell layers (proposed)

N

Improved indoor wireless signal strength -> Mobile/WiFi

Verizon

Store Associate Scenario:

Verizon Verizon

Meanwhile, the Sales Associate receives a text or push notification that Jen is close, This notification had Jennifer's name and picture pulled from her Facebook account.

During the checkout process Jen gets a coupon pushed to her for 10% off the shoes she dynamically added to her cart. The associate shows Jen to the shoes. Jen likes them and wants to add them to her purchase. The associate uses her mobile POS tablet to adjust her purchase on the spot.

The associate gives her VIP treatment by greeting her by name and offering her a beverage/snack as well as helping her find the dress, provide a fitting room, and ringing her up with a Mobile POS tablet.

As an up-sell the associate pushes a coupon for make up to Jen’s Mobile. Jen heads over to the make-up counter where a beauty consultant helps her find the right makeup to go with her prom outfit by taking a pic of her on a tablet and virtually applying looks to her picture.

Ass

ocia

tes

Mob

ile H

ands

et

Jen’

s M

obile

Han

dset

(Hunter Continued)

Fem

to

Rou

ter

Indoor CRM Radar (in-progress) “Blank Slate”-Enterprise PCI tablet

(In-progress)

New proactive & informed in-person customer svc

Verizon

Earn Double Rewards Points! when you use all your social media channels to share your shopping experience

X2 Verizon

Store Associate Scenario:

Jen buys the makeup kit and again the purchase can simply be made right there.

Jen has gathered everything she needs in a short period of time and leaves happy. In the mall outside the store, Jen receives a push notification to share her experience through social media channels such as Facebook and Twitter (all tied in to the Store's app). Jen "Likes" the experience and Tweets – ”Just got the cutest prom dress and coolest makeup at “Your Store””. In doing so Jen earns loyalty points to put toward her next purchase!

Dual Persona phones allow for separation of work and personal.

=

BYOD

Rewarding solid social behavior

Verizon

Gatherer Scenario:


Karen is wandering around the mall and gets a group coupon pushed to her as she walks into the store’s Geo-Fence. She needs a prom dress so she decides to take advantage of the deal

Your store’s app opens up, Karen navigates to the Prom Dress shop, notices there is a Spend Smart Coupon available and taps through to browse.

In addition to Group-Buy offers, the V-Cast app store can give your store’s app an uplift in downloads. Customers can also use the SpendSmart website to find your app.

Browsing the collection on her Mobile she finds a dress she likes.

Groupon / Living Social / VZ Spendsmart

Verizon

Gatherer Scenario:

Verizon Verizon

Karen arrives in the department and finds the dress but they don't have it in her size so she scans the tag with her phone's camera and the store's app finds the exact style and opens a product detail page.

Karen checks inventory in her size to find they have it in stock in a near-by store, puts a deposit on it to reserve the dress and designates a pick up time through the mobile app. Once Karen is within range of the Geo-Fence, an associate is notified and gets the dress ready for her.

App offers a detail view to check inventory in all nearby locations. Karen can pay using Payfone.

Karen’s Mom is traveling and loves to shop too. While waiting for her flight she can shop / reserve stuff and seamlessly save it into her mobile shopping cart and queue it up to try on when she gets back home

Veriz

on

Femto and LTE make instant rich media a reality. Payfone integration (proposed)

Your store LTE “Window Shop” Airport Kiosks

QR/NFC triggered videos to improve sales conversion

Gatherer Scenario: Inside the store Karen sees the virtual mannequin digital signage display and it peaks her curiosity so she decides to use it to browse other dresses in the collection.

Karen pays for the dress she reserved and shops for accessories.

Using the Virtual Mannequin DS Karen finds a dress that would be perfect for her friend Adriana. From the DS she sends Adriana a Facebook post with a picture of the dress, all it's fit info, and a link to the dress on-line.

Verizon

Extending “window shopping” socially

Verizon Verizon

Analytic Sharing Over Devices: Person surfing the store’s website can push search history to the cloud with “AccessIDtm” button on store’s website.

Verizon

Customer gets a text message that asks them to “Opt in”. They are also presented with a coupon as an incentive to agree to use their info for analytics.

The history and other relevant information is sent to the AccessID cloud. Where it will be available in the AccessID app and to store associates.

The store’s associate can look at a detailed view of your information including search history, home departure and store arrival times, as well as items searched, giving the associate the ability to provide a concierge level of service to the customer.

Geo-Fencing Detects the

customers arrival. The associate is notified that you are on your way and is given information such as your phone #, and store’s loyalty ID. Bridging PC/tablet browsing to in-person

Verizon will create a comprehensive suite of

services using the personal information stored in the phone to interact with the

environment

Identify the most valuable use cases and Partners to feed into our NFC secure

element requirements

Payment ID

Loyalty cards Keys

Transportation ticket

What do we want Verizon Wireless phones to uniquely “unlock” and “gain access” to?

Launch fully orchestrated marketing campaign for max impact/value

Building out the Verizon ecosystem…

24

Q 20XX QX 20XX QX 20XX Q 20XX QX 201X QX 201X Strategy and

Planning Complete strategy,

use cases, Partners &

business case

B2C Integrate X mobile apps

Pre-load/feature freemium version comprised of VZB’s UIS app and a few leading start-ups

B2B Define and implement “key” reqmts and develop VZW NFC ecosystem

Integrate, Test, App create white Label framework Recruit NFC

ecosystem (start) Identify, recruit,

evangelize, pilot w/ relevant partners

Device arrives in our

devices

NFC secure element

requirements Lock down &

Share w/OEM’s

on-line feature

VZW NFC partners ready their infrastructure

Receive first VZW NFC test devices

Test, evaluate, trial, pilot w/ partners

VZW Universal

Identity Services

launch With partners,

TV, bill boards, In-store, on-line

new Integrated Biometric

Support (proposed)

Solves for ‘more

secure” and ‘more

convenient”

QX 201X

Feature lock down, testing & certification OEM feature lock & device certification

1

2

3 pre-load

converged app

Consumer Edition

Enterprise Edition

Enterprise Edition

This is what will make the NFC ecosystem build out different in the U.S. w/Verizon’s scale and reach backing it

The I.C.E.S. framework: to build out NFC ecosystem for non direct payments

Indoor CRM Radar

Today, Verizon Wireless knows very little about the customer who walks in the door.

Paying a bill?

Smart Phone User?

The Problem… [to assist w/internalizing better]

Indoor CRM Radar

As soon as customer enters store, customer service rep gets popup with basic customer information and can respond appropriately.

The Solution…

• Designed for the Enterprise • Integrated card swipe reader

• a SOLUTION designed to assist enterprises with “whatever they want” from tablets via apps

•  a suite of tablets including a new VZ prescribed lower cost DEVICE option with or without credit card integrated mobile POS

•  an enterprise tablet SERVICE

• NFC Capable

• Ties to brand customizable enterprise app store

WHAT IT IS

• Lower cost = Higher adoption rate

WHAT IT OFFERS $

• multi-OS support targeted via virtualization

reducing cost

Blank Slate Strategy: High Level Architecture

PAID

Blank Slate Strategy: Enterprise Tablet Service

• Designed for the Enterprise

• Integrated card swipe reader

• A SOLUTION designed to assist enterprises with “whatever they want” from tablets via apps

•  A suite of tablets including a new VZ prescribed lower cost DEVICE option with or without credit card integrated mobile POS

•  An enterprise tablet SERVICE

• NFC Capable

• Ties to brand customizable enterprise app store

WHAT IT IS

WHAT IT OFFERS

• multi-OS support targeted via virtualization

Mid-price point Eco-ruggedized

3g smartcase sleeve

~$400 ~$700

Hybrid-Win-Android MRC MB eApp store

$5.00 <250 no

$8.66 <250 yes

<$50 <5gigs yes

marketplace

Service on Demand: Jennifer needs help so she “Requests Assistance” from the store associates

Fem

to R

oute

r

Verizon

414141

Customer in need of assistance!

“I’m free, I’ll take care

of her!”

A free associate “Reserves” her on her tablet so other associates know not to duplicate efforts.

Jens location is shown on the associate tablet.

The associate can ring up Jen’s purchase quickly using the integrated card swipe on the Mobile POS Tablet.

Requests Assist integration w/Indoor CRM (proposed)

Mobile Wallet Service

Unified Customer View unifies mobile markeMng, wallet and permissions/policies

Enterprise Solutions

Open APIs

MOBILE PAYMENTS

PoS/Business

MOBILE LOYALTY

3rd Party Development Platform (workflows,

business rules)

Software-as-a-Service (SaaS) Model for Fast Time-to-Market and Low Cost Delivery

Interfaces •  CRM, Customer Care •  Back Office Systems •  Closed Loop Locations

Branded Stored Value Accounts (SVAs) •  Loyalty points •  Coupons •  Receipts •  Ads/offers •  Miles/minutes •  Vouchers •  On-site specials

Integrations •  Marketing Content •  Existing Loyalty Programs •  CRM, Customer Care •  Mobile Ads and LBS •  Call Centers

“Pre-‐NFC Contactless” SMS

WEB Portal Mobile Applica:ons

Femtos Ac:ve RFID

Digital Signs NFC

Multiple Access

Technologies PARTNERS

32

Docked droid in the car Docked droid at home

Docked droid becomes desk phone

All Access Points of Droid Converged Device One device in multiple modes: Home, Mobile, GPS

33

  Multiple Mobile Handset Compatibility   Compact Appearance   Clear User Interface   Unified Visual Appearance   Robust Hardware and Software Platform

Mobile UC Cradle

2. There's a communication back from NFC receiver to server delivering punch in.

34

1.  VZW worker comes into store, holds phone up next to NFC reader

3. Info is compiled into data base

4. VZW Employee uses NFC reader to punch out as well.

Time Recording and Monitoring Service (In Progress)

Enterprise Resource Authentication Physical Entry Control

PC Authentication

Reduce IT password resets

Secure authentication

Employee Convenience

Password resets $25-$100 /employee

Simpler provisioning

Enterprise Identity Access (In Progress)

35

36

•  NFC mobile device in conjunction with biometrics could be used as a form of offline authentication to reduce the online merchant fraud risk, by verifying a persons identity

Online Fraud Mitigation

Online Fraud Mitigation

Native integrated mobile support for Microsoft, Cisco, Google & Lotus UCC platforms across:

•  E-Mail •  IM •  Portals • Web-Conferencing •  Video •  Office Voicemail •  Office PBX’s

Verizon UC Mashup Enterprise email, voicemails, SMS’s, meetings & video in one place

38 38

YIN & YANG THE PERFECT BALANCE OF WORK AND FUN

Mobile Personas Via Latest in Virtualization

Theme skinned dash environment

40

Directional Realizing an increasingly PC Optional Work Force

Questions?

41

@humphreyc

[email protected]

Documents

Seamlessly Fusing Mobile w/ Retail€¢ Latest mobile trends + 4G/LTE 101 primer ... Alcatel Lucent and Ericsson, ... “Blank Slate”-Enterprise PCI tablet