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

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Oct 01, 2023 362 likes •626 views

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

SLIDE 1

Wi-Fi Program Status

April 11, 2012

SLIDE 2

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

SLIDE 3

Public Wi-Fi Operations – Venues and Business Models

Free Hybrid Paid

Confidential

SLIDE 4

What’s Happened to Paid Wi-Fi?

Confidential

SLIDE 5

Miami Paid Revenues

Confidential

SLIDE 6

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

Confidential

SLIDE 7

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

Typical Paid to Free Model Impact

SLIDE 8

Confidential

Bandwidth Demand Growth by Device Type 16X Bandwidth Demand Growth

ver Five Years

SLIDE 9

Device Usage Trends

Confidential

Demand Primarily Driven by Video

SLIDE 10

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

SLIDE 11

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

Confidential

Cellular to Wi-Fi Handoff

SLIDE 12

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

Confidential

SLIDE 13

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

Summary of Program Changes

Confidential

SLIDE 14

MIA’s Wi-Fi User Portal Old and New

Confidential

SLIDE 15

MIA Splash Page - Old

Confidential

SLIDE 16

MIA Splash Page - New

Confidential

SLIDE 17

Free Access Sample Sites

Confidential

SLIDE 18

Free Access Sample Sites

Confidential

SLIDE 19

MIA - Opt-In Page – Paid Only

Confidential

Placeholder for Free Sessions

SLIDE 20

MIA - Opt-In Page – Free Options

Confidential

SLIDE 21

MIA – Sponsored Session

Confidential

(30 second video or Sponsor’s Message here)

SLIDE 22

MIA – Post Authentication Page

Confidential

SLIDE 23

Mobile Portal

Splash Page Opt-In Page

Confidential

SLIDE 24

Mobile Portal

Sponsor’s Message Post-Authorization Page

Maximum 30 second video or Clickable Sponsor’s Message

Confidential

SLIDE 25

Q & A

Confidential