Wi-Fi Program Status April 11, 2012 Contract Overview - PowerPoint PPT Presentation

Wi-Fi Program Status April 11, 2012

Contract Overview • Commencement: July 9, 2008 • Current End Date: July 9, 2015 • MDAD Revenue: 65% of Connection Revenues (highest in the industry) 50% of Sponsorship/Advertising Revenues • Revenues: Year Gross MDAD Share 1 $995K $620K 2 $1.38M $825K 3 $1.54M $972K 4* $1.75M $1.2M 5* $2.0M $1.4M Actual $$ Thru 2/28/12 $5.1M $3.2M * Forecast – Prior to Free Offerings Not inclusive of MIA Hotel which generates ~10% additional revenues Confidential

Public Wi-Fi Operations – Venues and Business Models Paid Hybrid Free Confidential

What’s Happened to Paid Wi-Fi? Confidential

Miami Paid Revenues Confidential

The Challenge of Free Wi-Fi….. Bandwidth Demand Confidential

Typical Paid to Free Model Impact Paid Model: • Sessions ~= 2% enplaning passengers • ~= 65% of total sessions paid via roaming partners Hybrid and Free Models: • Sessions ~= 17-20% enplaning passengers (~10x paid) • Bandwidth ~= 20x to 30x paid (and increasing exponentially) • ~= 95% of sessions are free/sponsored Current Session Counts (monthly example): • Paid Model MIA 30,000 sessions vs. 1.5M enplanements • Free Model SFO 300,000 sessions vs. 1.65M enplanements Projected Cost Impact to MDAD for Continuous Free Access: • ~ $1M Capital Costs for Network Infrastructure Upgrades • ~ $250K Annual Operating Cost Increase • ~ $500K Lost Revenues Annually • Total Negative Impact ~$1.75M Year 1, ~$750K Subsequent Years

Bandwidth Demand Growth by Device Type 16X Bandwidth Demand Growth over Five Years Confidential

Driven by Video Primarily Demand Device Usage Trends Confidential

Cellular to Wi-Fi Handoff 3G and 4G Networks Can Not Keep Up! The Carriers are already throttling usage and look to Wi-Fi to offload data traffic Confidential

Cellular to Wi-Fi Handoff Impact to Wi-Fi will be exponentially greater than 16X Demand Growth! Confidential

Changes to MDAD Wi-Fi Program Implemented 11/1/11 Confidential

Summary of Program Changes 1. New Portal implemented 11/1/11 2. Free Access is now provided to Airlines, MDAD and select Car Rental, Hotel and Local Tourism websites 3. Free Premium Sponsored Sessions are provided on a value basis • 50,000 Free Sessions delivered during 2011 Holiday period • 13,500 Free Sessions delivered 2012 YTD • Sponsors include American Express, Lowes, Hewlett Packard 4. EMS shares the negative revenue impact along with MDAD under the existing revenue share terms 5. Both parties will continue to monitor revenue impact over the next three to six months to determine future direction Confidential

MIA’s Wi-Fi User Portal Old and New Confidential

MIA Splash Page - Old Confidential

MIA Splash Page - New Confidential

Free Access Sample Sites Confidential

Free Access Sample Sites Confidential

Placeholder for Free Sessions MIA - Opt-In Page – Paid Only Confidential

MIA - Opt-In Page – Free Options Confidential

MIA – Sponsored Session (30 second video or Sponsor’s Message here) Confidential

MIA – Post Authentication Page Confidential

Opt-In Page Splash Page Mobile Portal Confidential

Mobile Portal Sponsor’s Message Post-Authorization Page Maximum 30 second video or Clickable Sponsor’s Message Confidential

Q & A Confidential