SYT General, page-2967

Hi all,

Here is a extract question and answer from the Q&A -

Q: Is there no money in Freeway sponsored data and Freeway data rewards? Is this why the focus has switched to Overpass?

A: Gary Greenbaum - Overpass is not a switch, there has been no pivot by this company. From day one our vision has been clear, it’s been to replace the archaic data plan model with a content centric usage and business models – PERIOD.
And under that there are several business models that emerged - data rewards, sponsored data, ad supported and content subscription plans. They are all consistent with this vision so I don’t see this as a re-focus or focus has shifted at all. You know, not all these business models are going to be successful in every country, it will vary from country to country. Some of the factors that come into play are – the related cost of data, the ubiquity of 4G networks, the long-term value of sponsored products so I don’t think there has been any shift and I absolutely believe there is real revenue to be had. It’s not just me, the carriers are believers in this too. They are the ones that are very interested in our technologies and building out these content services.
Frankly, those tough carrier conversations Rahul and I had 3-4 years ago, trying to convince them to consider alternative business models is not there anymore. They recognise content models are what they need to grow ARPU’s today.
Specifically, in regards to the Freeway question, the business is growing, as we mentioned in our June quarterly report -  - we have had 9 straight months since we released the product internationally. Increasing ratings, increasing downloads and use and we had declined our customer acquisition costs so everything is moving in the right direction.
(All that with very minimal marketing and priority)
With regards to Freeway, we have dialled back our acquisition efforts this quarter and we will address this later, we believe we have some enhancements in place that will improve the product which is basically the reason we have dampened down some of the acquisition.

Business prioritisation has gone to OTT/ Verizon deepening engagement (higher ROI) as per the CR and subsequent investor presentations, quarterlies and multiple IR replies whilst Freeway ticks along in the background with upcoming -

• Broadening deployment in Southeast Asia and Latin America
• Exploratory expansion into Africa, Middle East and CIS

Does Freeway Sponsored Data sound dead to you?  It hasn’t even started to crawl.

CC