NII Portfolio

Update

July 2012
Objectives
• Provide an updated review of the 2013 device proposals received from
several OEM’s

• Determine which handsets would be the most effective to launch based

on competitiveness, need within the portfolio, and available volume
commitment

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 iDEN Handsets
2012 NII Roadmap Review (please confirm) 3GPTT Handsets

Q112 Q212 Q312 Q412

AR,BR,MX,CH,PE
Iron Rock
$397 Dual SIM

GB
Best

Qchat 4.3
8655

$291
$273 Primus $349
Apollo $248
$255 Jorian Patagonia

$225 Willow Springs

Destino $233
AR,BR,MX
Malibu $167
Better

GB GB
GB Qchat 4.3 Qchat 4.3
BB
Qchat 4.3 8255 8655
BR,MX,CH Qchat 4.3
8655 MX,CH,PE 8655
Froyo BR,MX,CH,PE
GB BR,MX,CH,PE
AR,BR,MX
Froyo Qchat 4.3
Froyo AR,BR,MX Ares 8255
BR,MX,CH,PE
$118.50
Yosemite Atlas $119.60/
$122.60
Road $96 Peak Fair Hall
BR,MX,CH,PE
Good

$87
U2900 U6020

Qchat 4.3 AR,BR,MX AR,BR,MX

6295 AR,BR,MX
$97.30
MX,CH,PE 3
proprietary and confidential Qchat 4.3
* Depending on origin of manufacturing 6295
 iDEN Handsets
EOY 2012 Device Portfolio 3GPTT Handsets

• By the end of 2012, we will have refreshed most of the key iDEN segments and built a
substantial 3GPTT portfolio
UHT

HT

Iron Rock
MT

Jorian
Primus
Fawnridge
Apollo

Patagonia
Titan
Titanium
LT

Ares
Willow Springs
Destino

Malibu
ULT
Athena

Melody
Cutaway

Melody F.
Yosemite Rd

Fairhall

Fairhall
Atlas Peak
ULT Qwerty
ULT Mono

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Volume Commitment by Handset
Total NII Commitment v.
Total MLC
Technology Vendor Device Price Contractual MLC - Over /
Input/Output
Commitment (Under)
iDEN Motorola Destino/Malibu $225.00 / $233.00 500,000 495,295 (4,705)
iDEN Motorola Willow Springs $ 225.00 200,000 230,000 -
SUBTOTAL IDEN * 700,000 725,295 (4,705)

3G WCDMA Motorola Jorian $ 273.00 450,000 450,000 -

3G WCDMA Motorola Iron Rock $ 397.00 400,000 400,000 -
3G WCDMA Motorola Primus $ 291.00 205,000 219,487 14,487
3G WCDMA RIM Patagonia $ 349.00 400,000 405,201 5,201
3G WCDMA Huawei Titan/Titan White $ 293.30 100,000 93,653 (6,347)
3G WCDMA Huawei Melody / White $147.00 / $149.70 200,000 143,787 (56,213)
3G WCDMA Huawei Cutaway $ 114.00 300,000 171,733 (128,267)
3G WCDMA Huawei Athena $ 113.00 300,000 191,183 (108,817)
3G WCDMA Huawei Apollo $ 248.00 200,000 60,557 (139,443)
3G WCDMA Huawei Ares $ 167.70 300,000 327,605 27,605
3G WCDMA Huawei ULC Bar $ 87.00 300,000 255,265 (44,735)
3G WCDMA Huawei ULC QWERTY $ 96.00 300,000 342,507 42,507
SUBTOTAL 3G WCDMA 3,455,000 3,060,978 (394,022)
TOTALS 4,155,000 3,786,273 (398,727)

*No volume commitment required for the Motorola Triplets (Yosemite Road, Atlas
Peak, & Fair Hall)

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2013 Roadmap Objectives
• Refresh the mid and low tier 3GPTT handsets with more competitive
price points and address issues with Brazil banding

• Offer an ultra high tier device that provides a more competitive feature
set

• Continue to target an additional OEM within the portfolio

• Consider opportunities to extend the Ferrari co-brand within the

portfolio

• Following the strategy set on iDEN, continue to “platform” chipsets to fill

out the device portfolio

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2013 NII 3GPTT Roadmap Request
Q1’13 Q2’13 Q3’13 Q4’13

Ultra High
•Jelly Bean
Tier
• 3GPTT
Smartphone
Best

Received two proposals

ranging from $400-$425

High Tier •Jelly Bean

Smartphone • 3GPTT
Better

Received four proposals

•Gingerbread ranging from $250-$299
Ares 2nd •Qchat 4.3 Received three proposals
Color ranging from ~$130 to $185

Alternate color option of •Gingerbread Entry Entry •Gingerbread

existing Ares handset •Qchat 4.3 Smartphone Smart CMF •Qchat 4.3
Good

Low Tier Low Tier

Qchat 4.3 Qchat 4.3
Mono Clam

Handsets based off our

current low tier handsets

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Summary of Device Proposals
• Received proposals from Motorola, Huawei, and Kyocera

• While Motorola and Huawei provided proposals with products ranging

from the high to low tiers, Kyocera only concentrated on the mid to high
tier

• These proposals introduce two new viable chipsets for our

consideration: 8960 (HT), 8930 (MT to HT), and 8227 (MT to HT)

• With the significant volume we have committed to from the 2011-2012

portfolio, our 2013 roadmap will need to be more deliberate –
concentrating on only the most important segment and carrier
strategies

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Summary of Motorola Proposal
Overall
- Introduction of Omega devices
- Updated dual model devices to “help bridge the 3G build out”
- Refresh of existing Qchat handsets

Devices
- Ultra high tier 8960 device: Dinara – either Omega or Qchat based
- Expanded dual mode offering: Jessup (Qwerty) & Preston (Tablet)
- Updated Ferrari device: Primus Ferrari
- Mid to low tier Omega devices: Bulldog (tablet) & Bulldog Bar (mono)
- All Bulldog devices are grouped as a “one proposal family”
- Refresh of existing Qchat devices: Jorian 2 (Qwerty) & Primus 2 (entry
smartphone)

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 Summary of Motorola Proposal
Specs Motorola Jorian Motorola Motorola Motorola Motorola Bulldog Bulldog
Dinara 2 Jessup Primus Preston Bulldog Entry Bar
Ferrari MT
UHT Enterprise MT Entry LT

Timing 2Q’13 3Q’13 2Q’13 10/10/12 2Q’13 3Q’13 3Q’13 4Q’13

Android ICS Gingerbread ICS Gingerbread ICS Gingerbread Gingerbread N/A

(upgradable
to Jelly Bean)

Memory ? ? ? 4GB/1GB ? ? ? TBD

Chipset 8655 8655 8655 8655 8655 8225 7227 TBD

Processor 1.5 GHz 1.2 GHz 1.2 GHz 1.2 GHz 1.0 GHz 1.0 GHz 800MHz TBD
Dual Core

Display 4.5” HD 3.5” HVGA 3.5” HVGA 4.0” WVGA 3.5” HVGA 4.0” WVGA 3.2” HVGA 2.2” QVGA
Size

Camera 8.0MP 5.0MP 5.0MP 5.0MP 3.0 MP 5.0 MP 2.0MP 2.0MP

1.3MP FFC VGA FFC

PTT Omega  (Q-Chat)   (Q-Chat)   (Omega)  (Omega)  (Omega)

(OmegaDM) (Omega DM)

Qwerty 

Volume 200K 300K 300K 200K 400K 300K 400K 500K

Req.

Cost $425 $270 $325 $355 $299 $250 $180 $99

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Summary of Huawei Proposal
Overall
• Proposed five smartphones ranging from entry level to the Ultra High Tier
• Finally able to come to an agreement on the “8255L” chipset
• Only vendor to propose Jellybean version of Android
• Feature phones in the low tier would be re-banded updates to Athena and/or
Cutaway

Devices
• Total potential business of 1.35M units
- Totaling $321M of revenue
• Slight change in strategy for Huawei shifting towards higher tier devices
- This is the first ~$400 device offered from them

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Summary of Huawei Proposal (Prelim.)
Specs 8255 Lite 8227 LT 8227 MT 8930 MT 8960
Tier Entry MT Smartphone UHT
Smartphone NII to select one of these two Smartphone
Launch Date 6’13 10’13 10’13 10’13 10’13

Chip 8255 Lite 8227 8227 8930 8960 Pro

(1.7GHz)

Display 3.5” HVGA (TN) 4.0” WVGA (TFT) 4.5” QHD (IPS) 4.5” QHD (IPS) 4.7” FHD

QChat 4.3 5.0 5.0 5.0 5.0

Android OS 2.3 4.1 4.1 4.1 4.1

Memory 4GB + 512 MB 4GB + 512MB 4GB + 1GB 4GB + 1GB 8GB + 1GB
(ROM+RAM)

Camera 3M FF 5M AF 8M AF 8M AF 8M AF BSI

Target Battery 1650mAh 1900mAh 1900mAh 2600mAh 2600mAh

Volume Comm 300K 300K 300K 300K 150K

Cost Sub $140 $185 $260 $285 $400

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Kyocera Proposal
Background of Negotiations
• Began Talks with Kyocera in December 2011 with follow-ups at CES and MWC
• Both Parties have expressed a great deal of interest in establishing a partnership
• Received MOU draft on 6/17 with the following content
- 2 Devices based on new dual core 8227 chipset
- First to be introduced in Q4/13 with a follow on derivative in 2014
- Initial volume proposal was 1.2M units for the 2 products
• We expect that this will come down to 800k
- Target pricing for the two devices are NTE $250 and $350 respectively

Kyocera Background
• Kyocera provides its customers a premium, differentiated wireless experience, highlighted by industry-
leading push-to-talk and 3G data services.
• Kyocera Communications , Inc. was formed by Kyocera’s acquisition in 2000 of the mobile handset
division of industry pioneer Qualcomm, Inc. Additionally, in 2008 Kyocera purchased Sanyo's Mobile
Phone Division. As such, the company’s rich history in providing mobile phones to the North and Latin
American regions dates back to the launches of the first digital wireless networks.
• In CDMA-based push-to-talk, Kyocera’s leadership began with the 2004 development of the Kyocera
KX440 and continues today. The KX440 was the world’s first handset to be developed with
“BrewChat,” a predecessor to the QChat PTT technology currently being used by NII and other global
CDMA service providers.
• With Kyocera’s current line of Dura Series phones, Kyocera is without rival as the leading device
manufacturer supporting the rapid evolution of QChat-based push-to-talk service in the United States
and the company is eager to extend that leadership to NII’s markets in Latin America.
• Beyond QChat, Kyocera’s innovative product designs incorporate industry-leading features and
technologies including shock resistance, water resistance and ergonomic design, along with
enhancements to audio and battery life.

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Ultra High Tier
Specs Motorola Iron Motorola Huawei
Rock Dinara AWS UHT

Timing 4Q’12 2Q’13 4Q’13

Android Gingerbread ICS (upgradable to Jelly Bean

Jelly Bean)

Memory 4GB/1GB ? 8GB + 1GB

Chipset 8655 8960 8960

Processor 1.2 GHz 1.5 GHz Dual Core 1.7GHz

Display Size 4.3” qHD 4.5” HD 4.7” HD

Camera 8.0MP 8.0MP 8.0MP

1.3MP FFC 1.3MP FFC

PTT  (Dual Mode Omega or Qchat Qchat

IDEN/3G)

Qwerty

Volume Req. 400K 200K 150K

Cost $415 $425 $400

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Enterprise Qwerty Replacement*
Specs Jorian Jorian 1a Jorian 2 Jessup

Timing 8/15/12 TBD 3Q’13 2Q’13

Android Gingerbread ICS Gingerbread ICS

Memory 4GB/512MB Improved memory ? ?

Chipset 8655 8655 8655 8655

Processor 1.2 GHz 1.2 GHz 1.2 GHz 1.2 GHz

Display Size 3.1” VGA 3.1” VGA 3.5” HVGA 3.5” HVGA

Camera 5.0MP 5.0MP 5.0MP 5.0MP

PTT  (Q-Chat)  (Q-Chat)  (Q-Chat)  (Dual Mode

Omega)

WIFI    

Battery 1800mAh 1800mAh 1800mAh 1800mAh

Qwerty  (portrait)  (portrait)  (portrait)  (portrait)

Volume Req. 450K No increment. Vol 300K 300K

Cost $273 NTE $273 $270 $325

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Mid Tier Smartphone Space
Specs Motorola Motorola Motorola Huawei Huawei
Primus Preston Bulldog MT 8227 MT 8930 MT

Timing 10/10/12 2Q’13 3Q’13 4Q’13 4Q’13

Android Gingerbread ICS Gingerbread Jelly Bean Jelly Bean

Memory 4GB/1GB ? ? 4GB + 1GB 4GB + 1GB

Chipset 8655 8655 8225 8227 8930

Processor 1.2 GHz 1.0 GHz 1.0 GHz TBD TBD

Display Size 4.0” WVGA 3.5” HVGA 4.0” WVGA 4.5” QHD 4.5” QHD

Camera 5.0MP 3.0 MP 5.0 MP 8MP 8MP

VGA FFC

PTT  (Q-Chat)  (Dual Mode  (Omega) Q-Chat Q-Chat

Omega)

Battery 1800mAh 1800mAh 1700mAh 1900mAh 2600mAh

Qwerty

Volume Req. 205K 400K 300K 200K 200K

Cost $292 $299 $250 $260 $285

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Entry Smartphone Update
Specs Ares Bulldog LT Huawei Huawei
8255 Lite 8227 LT

Timing 10/18/12 3Q’13 2Q’13 4Q’13

Android Gingerbread Gingerbread Gingerbread Jelly Bean

Memory 4GB/512MB ? 4GB + 512MB 4GB + 512MB

Chipset 8255 7227 8255 “Lite” 8227

Processor 1.0GHz 800MHz TBD TBD

Display Size 3.5” HVGA 3.2” HVGA 3.5” HVGA 4.0” WVGA

Camera 3.2MP 2.0MP 3.0MP 5.0MP

PTT  (Q-Chat)  (Omega)  (Q-Chat)  (Q-Chat)

Battery 1700mAh 1700mAh 1650mAh 1900mAh

Qwerty
Required Vol. 300K 400K 300K 300K

Cost $167 $180 Sub $140 $185

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Entry Monolith Update

Specs Huawei Motorola Huawei

Athena Bulldog Bar TBD

The Huawei device

Timing Launched 4Q’13
in this tier would be
Display Size 2.4” 2.2” QVGA a re-banded update
Network AWS/ 1900MHz AWS/ 1900 / of Athena
2100MHz

Chipset 6295 TBD

PTT Q-Chat Omega

Camera 2.0MP 2.0 MP

Bluetooth  

MP3 Player  

Memory card  ?
slot

Speakerphone  ?

Required Vol. 300K 500K

Cost $113 $99

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2013 Recommended Portfolio
Q1’13 Q2’13 Q3’13 Q4’13

Dinara
•Jelly Bean
• OMEGA or Qchat
Based
Best

• 4.5” HD

Primus
Ferrari
•Jelly Bean
Jorian Refresh •Qchat 5.0
• Gingerbread Huawei on 8227
• Qchat 4.3 • ICS 8227MT
• 8655 • Qchat 4.3
Better

• 8655
• More memory •Jelly Bean Kyocera
•Qchat 5.0 Smartphone
on 8227

•Gingerbread Huawei Huawei •Gingerbread

•Qchat 4.3 8255 Lite 8255 Lite •Qchat 4.3
• 8255 • 8255
Good

Low Tier Low Tier •Qchat 4.3

•Qchat 4.3
Mono Clam •6295
•6295
Refresh Refresh

Pending Brazil Need for Re-banded Devices

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 LT
HT

MT

ULT
UHT
ULT Mono

ULT Qwerty

Yosemite Rd

Atlas Peak

Fairhall

Fairhall

LT Mono Refresh

LT Clam Refresh

LT Smartphone

LTS 2nd CMF

proprietary and confidential

Ares

Kyocera 8227

Jorian Refresh

Apollo
Projected EOY 2013 Device Portfolio

Primus

Primus Ferrari

Patagonia

Huawei 8227
OMEGA

Iron Rock
iDEN Handsets
3GPTT Handsets

20

Dinara
Recommendation Summary
• Work with Motorola on an ultra high tier 8960 device and decide later on
whether it is Omega or Qchat based

• Refresh the Ferrari co-brand with the update to Primus

• Launch our new entry smartphone (w/ CMF) on the 8255 chipset

• Refresh the Jorian product and our two low tier feature phones (pending
determination of need from Brazil)

• Develop the 8227 chipset with both Huawei and Kyocera with MT
products at the end of the year

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 Projected Volume by Market for Recommended 2013
Products
Projected Volume by Market
Total
OEM Device Price Mexico Brazil Chile Peru Commit Duration 2013 Total 2014 Total
Motorola Dinara $425.00 30,000 30,000 20,000 10,000 100,000 12 50,000 50,000

Motorola Primus Ferrari $355.00 100,000 60,000 30,000 10,000 200,000 12 116,667 83,333
Huawei Entry Smart $135.00 90,000 90,000 45,000 45,000 300,000 12 150,000 150,000
Huawei LT Mono* $100.00 90,000 90,000 45,000 45,000 300,000 18 116,667 183,333
Huawei LT Clam* $105.00 90,000 90,000 45,000 45,000 300,000 18 100,000 200,000
Huawei MT Smart $260.00 90,000 90,000 45,000 45,000 300,000 12 50,000 250,000
Kyocera Kyocera $225.00 180,000 180,000 90,000 90,000 600,000 15 80,000 480,000
total 670,000 630,000 320,000 290,000 2,100,000 663,334 1,396,666
*LT Mono and LT Clam dependent on Brazil interest

Assumptions/Highlights
• Huawei LT pricing and volumes are estimated
• Did not include adjustments for Brazil
manufacturing/importation
• Start dates are estimated based on risk
• Mexico & Brazil ~30% total commitment
• Chile & Peru ~15% total commitment

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 2012 Mobile Broadband Roadmap
Existing Q2’12 Q3’12 Q4’12
EOL EOL TBD

E1786 E192 Huawei

2100/1900/850 TBD
Peru 2100/1900/850 Mediapad 7”
2100/1900/AWS
E303
E173 2100/1900/850
2100/1900
Motorola 5/18
Xoom
WIFI Huawei
Mediapad 7”
Chile 2100/1900/AWS 6/25

E583C E586
E352
AWS/2100 2100/1900/AWS
2100/1900/AWS/850
4/17
TBD
Motorola
Xoom
Huawei E352
WIFI
Mexico EOL Mediapad 7” 2100/1900/AWS/850
2100/1900/AWS 6/11

E1691 E586
2100/1900/850 2100/1900/AWS

TBD

Brazil
E303
2100/1900/850

Argentina Motorola BB
Xoom Playbook
WIFI WiFi

Data
S/A Date MIFI
Cards
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 2013 Recommended Mobile Broadband Roadmap
Q1’13 Q2’13 Q3’13 Q4’13

TBD

Peru TBD
10” Tri-band
3G
Tablet E303 Refresh

TBD TBD

Chile E352 Replacement? TBD TBD

10” Tri-band
3G
Tablet
E586 Refresh Low Tier Card

TBD
TBD TBD
Mexico
10” Tri-band
3G
E586 Refresh Data Card
Tablet

TBD
TBD
Brazil
10” Tri-band
3G E303 Refresh
Tablet

TBD

Argentina WiFi
Tablet
Refresh

Data
Hotspot
Cards
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Data Card Portfolio
E303 E352 E369 E586

HSUPA/HSDPA/UMTS 2100/1900/850
HSPA+/HSPA/UMTS
MHz HSPA+/HSPA/UMTS
2100/1900/900/850/AWS MHz HSPA+/HSPA/UMTS
2100/1900/850/AWS MHz
2100/1900/AWS
Network EDGE*/GPRS/GSM
EDGE*/GPRS/GSM
1900/1800/900/850 MHz EDGE*/GPRS/GSM
1900/1800/900/850 MHz
*only support DL EDGE 1900/1800/900/850 MHz

Network
7.2Mbps HSUPA 21.6Mbps HSPA+ 21.6Mbps HSPA+ 21.6Mbps HSPA+
Speed
USB Yes (2.0) Yes Yes (MicroUSB)
External
Yes (MicroSD) up to 32GB Yes (MicroSD) up to 32GB Yes (MicroSD) up to 32GB Yes (MicroSD) up to 32GB
Memory
• Hotspot Device
Quad-band 3G support including Penta-band 3G support
Comments AWS not supported
AWS including AWS • Connects up to 5 users
simultaneously

Market Selection / Pricing

Brazil $42.50 (CIF Sau Paulo)
Peru $24.50 (FOB HK)
Chile $48.80 (DDP-Santiago) $92.50 (DDP- Santiago)
Proposed to Mexico
$48 (DDP – Mexico City) $79.30 (DDP-Customized) $91.50 (DDP – Mexico City)
Mexico $75 (DDP – no custom)

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Next Steps
• In order to keep on track with the schedule, we would like to have your
feedback by August 17th including whether or not you feel your team
can commit to indicated volume commitments as needed.

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Questions???

proprietary and confidential