1. Value-added Wi-Fi services Be well connected Steve Livingston Senior Vice President iPass

2. Presentation | Overview Who is iPass Wi-Fi - no longer the fringe network Wi-Fis role in todays mobile network landscape Offload hype or happening? Picking the low hanging fruit Monetizing Wi-Fi as a value added service for consumersBe well connected 2 3. iPass | About Us Founded in 1996 (NASDAQ: IPAS) Operates the worlds largest commercial Wi-Fi network with: 1.8 million unique users 8.7 million hours of traffic 70 million Wi-Fi sessions 140 Wi-Fi network operators connected globally with 780Khotspots Over 3,500 enterprise customers A rapidly growing list of carrier strategic partnersBe well connected 3 4. Wi-Fi | No Longer the Fringe Network Wi-Fi has firmly established itself as a critical part of todays mobile network fabric HetNets (Heterogeneous Networks) are now the clear industry direction to enhance network capacity, coverage and user connectivity Complementary combination of large cell (LTE, HSPA+)and small cell (Wi-Fi) technologiesBe well connected4 5. Wi-Fi | No Longer the Fringe Network On a global basis, 70% of smartphone data is originated on Wi-FiSource: MobidiaBe well connected5 6. Wi-Fi | No Longer the Fringe Network Additionally, 65% of tablet users are connecting to mobile networks via Wi-Fi exclusivelyWi-Fi vs. Cellular Adoption >90%Current Use0%20%40%60% 80% 100% Wi-Fi Only Wi-Fi & CellularCellular OnlyNone Reasons for High cost of cellular data plansgreater Wi-Fi Wi-Fi available where tablets are usedreliance Tablet users already own a cellular smartphone,which fulfills the must have connectivity need Source: Connected Intelligence, December 2011Be well connected 6 7. Wi-Fi | WLAN Shipment Forecast2,000,000,000 Wi-Fi chipsets shipped by 2014 200 percent year-over-year growth since 2009Global Shipment Forecast >2 billion Wireless Local AreaNetworking (WLAN) Chipsets(Millions of Units) 200% growthSource:200% growth IHS iSuppli ResearchFebruary, 2011Be well connected7 8. Wi-Fi | Number of Public HotspotsPublic Hotspots (millions) 5.84.5 3.3 2.11.3 0.50.8 Source: Informa Telecoms & Media Report for the Wireless Broadband Alliance November 2011Be well connected 8 9. Wi-Fi | Carrier Announcements1,000,000By end of 20121,000,000By end of 2014100,000By end of 2012Building largest Wi-Finetwork in BrazilBe well connected 9 10. Wi-Fi | iPass Network Growth 2008 Present (actual) 900,000 779,288 800,000 2nd Wave 700,000 Carrier Wi-Fi 600,000 500,000 400,000 300,0001st Wave 200,000User-deployed 100,000- 2008 2009 20102011 2012Be well connected10 11. Offload | A Closer Look Domestic data offload has received the majority of industry attention and media coverage While important, it is not the low hanging fruit Offloading to consumers home and work network makes economic sense Offloading to commercial networks is difficult economically unless Carriers own the Wi-Fi network Offload to commercial networks can be complex. NGH addresses many of these complexities. Offload is largely cost savings justifiedBe well connected 11 12. Wi-Fi Devices | Market Growth Wi-Fi now saturated in Tablets and Smartphones Worldwide Smartphone Shipments1,2002007 26.4%Global Wi-Fi penetration insmartphones nearly quadrupled 2012 95.2%over past 5 years1,000 800 (Millions) Tablet 600 Wi-Fi embedded in 100% of tablets and growing to 98% in Smartphones Smartphone (Wi-Fi) 400 Smartphone (No Wi-Fi) 200No Wi-Fi 02011 201220132014 2015Source: IDC, December 2011Strategy Analytics, December 2011Be well connected 12 13. Wi-Fi | International Roaming International Wi-Fi roaming is the low hanging fruit It offers carriers the opportunity to act now (not after infrastructure build-outs) to enhance their value proposition, increase ARPU and reduce Churn Rate without consuming CAPEX, and differentiate!Increase addressableBroaden market size and geographicSecure vital relationshipsrevenue potentialreach with subscribers on a global scale Grow the number ofCapitalize on the devices connected to rapid growth ofyour networkWi-Fi devicesBe well connected 13 14. Churn Rate | Now, Highest Ever Mobile customers now switch providers every 27 months, more than twice as frequently as a decade ago In 2011, 44 per cent of global mobile subscribers churned the highest level ever27 monthsSource: Strategy AnalyticsWireless Operator StrategiesBe well connected14 15. Summary | Opportunities Lost roaming revenues1 (up to 70% turn off data roaming) Lost market growth opportunities (Wi-Fi devices) Lost customer mind share = increased churn rate Lost opportunity to lock-in subscriber retention via sticky services (bundle cellular and Wi-Fi devices on single plan) 1 Syniverse TechnologiesBe well connected15 16. Wi-Fi International | Value Proposition Leverage lower-cost Wi-Fi networks for international dataroaming, especially for data hungry applications Allow the consumer to live and behave as they do whenthey are home Access to certain applications require Wi-Fi Capitalize on rapid growth of Wi-Fi devices; increaseaddressable market size and share-of-wallet SPs enable their subscribers to roam onto Family plans expand into multi device plans Wi-Fi networks to foreign increase their service International Wi-Fi Roaming is justified by revenue, churn valuereduction, and competitive differentiationBe well connected 16 17. Wi-Fi Opportunities | Risk/Reward Study Source: Informa Telecoms & MediaPOSITIVE RISK-REWARDBALANCE Enhanced FBBproposition Enhanced multiscreenEnhancedproposition RISK SEEKINGMBB proposition M2M(revenue uplift, cost savings,Wi-Fichurn reduction, etc) REWARDroamingAdvertising & Wi-Fi accesstransactions Traffic revenuesoffloadingWholesalecapacity RISK ADVERSE NEGATIVE RISK- REWARD BALANCERISK(investment levels, value chain complexity, customeracceptance, competitive landscape, internal conflict, substitution, etc)Be well connected 17 18. Closing | Remarks Adopt International Wi-Fi roaming solutions now while continuing to plan and prepare for Offload Capture the opportunity to enhance roaming value proposition; grow customer base and reduce churn strengthening future position to succeed in Offload Seek a Roam-in and/or Wi-Fi Exchange partner as part of your Offload strategy to help monetize Wi-Fi assets and recover investment more quicklyBe well connected18 19. Value-added Wi-Fi services Be well connected Steve Livingston Senior Vice President iPass