North America Forecast Highlights

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1 North America Internet Users: % of Population Devices and Connections per Capita 89% 93% Average Speeds Average Traffic per Capita per Month 25.4 Mbps 51.4 Mbps 69.2 GB GB North America Forecast Highlights IP Traffic In North America, IP traffic will grow 2-fold from 2015 to 2020, a compound annual growth rate of 19%. In North America, IP traffic will reach 59.1 Exabytes per month in 2020, up from 24.8 Exabytes per month in North America's IP networks will carry 1.9 Exabytes per day in 2020, up from 814 Petabytes per day In North America, IP traffic will reach an annual run rate of Exabytes in 2020, up from an annual run rate of Exabytes In North America, IP traffic will reach 159 Gigabytes per capita in 2020, up from 69 Gigabytes per capita in In North America, average IP traffic will reach 180 Tbps in 2020, and busy hour traffic will reach 1.1 Pbps. In 2020, the gigabyte equivalent of all movies ever made will cross North America's IP networks every 6 minutes. Internet Traffic In North America, Internet traffic will grow 2.8-fold from 2015 to 2020, a compound annual growth rate of 23%. In North America, busy hour Internet traffic will grow 4.2-fold from 2015 to 2020, a compound annual growth rate of 33%. In North America, Internet traffic will reach 44.7 Exabytes per month in 2020, up from 15.8 Exabytes per month North America's Internet traffic will be 1.5 Exabytes per day in 2020, up from 520 Petabytes per day North America's Internet traffic in 2020 will be equivalent to 134 billion DVDs per year, 11 billion DVDs per 2016 Cisco and/or its affiliates. All rights reserved. 1

2 month, or 15 million DVDs per hour. In 2020, the gigabyte equivalent of all movies ever made will cross the Internet every 8 minutes. North American Internet traffic in 2020 will be equivalent to 107x the volume of the entire North American Internet in In North America, Internet traffic will reach 120 Gigabytes per capita in 2020, up from 44 Gigabytes per capita In North America, average Internet traffic will increase 2.8-fold by 2020 and will reach 136 Tbps. In North America, busy hour Internet traffic will increase 4.2-fold by 2020 and will reach 833 Tbps. Wired Wi-Fi and Mobile Growth North America's Fixed/Wi-Fi was 37% of total IP traffic in 2015, and will be 49% of total IP traffic in North America's Fixed/Wired was 61% of total IP traffic in 2015, and will be 45% of total IP traffic in North America's Mobile was 2% of total IP traffic in 2015, and will be 5% of total IP traffic in North America's Fixed/Wi-Fi was 55.1% of total Internet traffic in 2015, and will be 63.6% of total Internet traffic in North America's Fixed/Wired was 41% of total Internet traffic in 2015, and will be 29% of total Internet traffic in North America's Mobile was 3.5% of total Internet traffic in 2015, and will be 7.2% of total Internet traffic in IP Video In North America, IP video traffic will grow 3-fold from 2015 to 2020, a compound annual growth rate of 21%. In North America, IP video traffic will reach 50.2 Exabytes per month in 2020, up from 19.7 Exabytes per month In North America, IP video will be 85% of all IP traffic in 2020, up from 79% In North America, Ultra HD will be 24.4% of IP Video traffic in 2020, up from 2.4% in 2015 (91.2% CAGR). In North America, HD will be 65.7% of IP Video traffic in 2020, up from 62.2% in 2015 (21.9% CAGR). In North America, SD will be 9.9% of IP Video traffic in 2020, compared to 35.4% in 2015 (-6.5% CAGR). In North America, consumer IP video traffic will be 89% of consumer IP traffic in 2020, up from 85% In North America, business IP video traffic will be 65% of business IP traffic in 2020, up from 45% Internet Video In North America, Internet video traffic will grow 3-fold from 2015 to 2020, a compound annual growth rate of 26%. In North America, Internet video traffic will reach 36.4 Exabytes per month in 2020, up from 11.2 Exabytes per month 2016 Cisco and/or its affiliates. All rights reserved. 2

3 In North America, total Internet video traffic (business and consumer, combined) will be 81% of all Internet traffic in 2020, up from 71% In North America, Ultra HD will be 25.9% of Internet video traffic in 2020, up from 3.2% in 2015 (92.6% CAGR). In North America, HD will be 68.0% of Internet video traffic in 2020, up from 59.8% in 2015 (29.8% CAGR). In North America, SD will be 6.1% of Internet video traffic in 2020, compared to 37.0% in 2015 (-11.9% CAGR). In North America, consumer Internet video traffic will be 85% of consumer Internet traffic in 2020, up from 76% In North America, business Internet video traffic will be 66% of business Internet traffic in 2020, up from 47% in In North America, Internet-Video-to-TV traffic will be 38% of fixed consumer Internet video traffic in 2020, up from 35% In North America, Internet-Video-to-TV traffic will increase 3-fold between 2015 and 2020 (27.0% CAGR). In North America, 436 billion minutes (830,048 years) of video content will cross the Internet each month in That's 166,010 minutes of video streamed or downloaded every second. In North America, 99% of all Internet video traffic will cross content delivery networks in 2020, up from 81% in In North America, 92% of all Internet traffic will cross content delivery networks in 2020, up from 70% IP VOD In North America, Ultra HD will be 21.5% of IP VOD traffic in 2020, up from 1.5% in 2015 (87.0% CAGR). In North America, HD will be 62.2% of IP VOD traffic in 2020, up from 67.7% in 2015 (8.3% CAGR). In North America, SD will be 16.3% of IP VOD traffic in 2020, compared to 30.8% in 2015 (-2.9% CAGR). Gaming In North America, Internet gaming traffic will grow 8-fold from 2015 to 2020, a compound annual growth rate of 51%. In North America, Internet gaming traffic will reach 36.4 Exabytes per month in 2020, up from 11.2 Exabytes per month In North America, Internet gaming traffic will be 5% of consumer Internet traffic in 2020, up from 2% Mobile In North America, mobile data traffic will grow 6-fold from 2015 to 2020, a compound annual growth rate of 42%. In North America, mobile data traffic will reach 3.2 Exabytes per month in 2020, up from 557 Petabytes per month North American mobile data traffic will grow 2 times faster than North American fixed IP traffic from 2015 to North America's Mobile was 2% of total IP traffic in 2015, and will be 5% of total IP traffic in In North America, mobile data traffic in 2020 will be equivalent to 6x the volume of the entire North American Internet in Cisco and/or its affiliates. All rights reserved. 3

4 Devices In North America, there will be 4.5 billion networked devices in 2020, up from 2.6 billion In North America, there will be 12.2 networked devices per capita in 2020, up from 7.1 per capita In North America, 23% of all networked devices will be mobile-connected in In North America, M2M modules will account for 60% (2.7 billion) of all networked devices in 2020, compared to 40% (1.0 billion) in 2015, (21.3% CAGR). In North America, PCs will account for 7% (304.3 million) of all networked devices in 2020, compared to 12% (312.7 million) in 2015, (-0.5% CAGR). In North America, Tablets will account for 3% (151.9 million) of all networked devices in 2020, compared to 5% (125.7 million) in 2015, (3.8% CAGR). In North America, Smartphones will account for 9% (393.3 million) of all networked devices in 2020, compared to 10% (256.1 million) in 2015, (9% CAGR). In North America, Connected TVs will account for 16% (737.0 million) of all networked devices in 2020, compared to 21% (543.2 million) in 2015, (6.3% CAGR). In North America, Non-Smartphones will account for 0.0% (1.4 million) of all networked devices in 2020, compared to 4% (91.0 million) in 2015, (-56.5% CAGR). In North America, Other Portables will account for 5% (222.7 million) of all networked devices in 2020, compared to 8% (195.3 million) in 2015, (2.7% CAGR). In North America, 4K TVs will account for 47% (109.5 million) of all flat panel TVs in 2020, compared to 7.7% (7.8 million) in 2015, (69.7% CAGR). North America's IP traffic from non-pc devices was 59% of total IP traffic in 2015, and will be 71% of total IP traffic in In North America, PCs accounted for 41% of IP traffic in 2015, and will be 29% of IP traffic in In North America, TVs accounted for 45% of IP traffic in 2015, and will be 38% of IP traffic in In North America, Smartphones accounted for 4% of IP traffic in 2015, and will be 15% of IP traffic in In North America, Tablets accounted for 8% of IP traffic in 2015, and will be 15% of IP traffic in In North America, M2M modules accounted for 1.1% of IP traffic in 2015, and will be 2.4% of IP traffic in In North America, PCs accounted for 56% of consumer Internet traffic in 2015, and will be 35% of consumer Internet traffic in In North America, TVs accounted for 24% of consumer Internet traffic in 2015, and will be 25% of consumer Internet traffic in In North America, TVs accounted for 20% of total Internet traffic in 2015, and will be 21% of total Internet traffic in Speed Evolution In North America, the average fixed broadband speed will grow 2.0-fold from 2015 to 2020, from 25.4 Mbps to 51.4 Mbps. In North America, 97% of fixed broadband connections will be faster than 5 Mbps in 2020, up from 77% In North America, 88% of fixed broadband connections will be faster than 10 Mbps in 2020, up from 64% 2016 Cisco and/or its affiliates. All rights reserved. 4

5 In North America, 52.4% of fixed broadband connections will be faster than 25 Mbps in 2020, up from 37.8% In North America, 40.2% of fixed broadband connections will be faster than 50 Mbps in 2020, up from 20.8% In North America, the average Wi-Fi speeds from mobile devices will grow 2.0-fold from 2015 to 2020, from 17.4 Mbps to 35 Mbps. In North America, the average mobile connection speed will grow 3-fold from 2015 to 2020, reaching 15 Mbps in Traffic per User and Household In North America, the average Internet user will generate gigabytes of Internet traffic per month in 2020, up 140%from 47.7 gigabytes per month in 2015, a CAGR of 19%. In North America, the average Internet household will generate gigabytes of Internet traffic per month in 2020, up 141%from gigabytes per month in 2015, a CAGR of 19%. In North America, the average FTTx Internet household will generate gigabytes of Internet traffic per month in 2020, 117.5% more than other broadband households. In North America, the average FTTx Internet household generated gigabytes of Internet traffic per month in 2015, 136.2% more than other broadband households. In North America, there will be 36 million Internet households (30.0% of all Internet households) generating more than 250 gigabytes per month in In North America, there will be 25 million households (20.6% of all Internet households) generating more than 500 gigabytes per month in In North America, there will be 8 million households (6.5% of all Internet households) generating more than a terabyte per month in In North America, the average mobile connection will generate 6,041 megabytes of mobile data traffic per month in 2020, up from 1,342 megabytes 2016 Cisco and/or its affiliates. All rights reserved. 5

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