Scotia's Recent Update Bullish on SVC :) .Recent Update Text as of 2APR14 We believe that Sandvine's strong position in South America allows it to benefit
from the influx of 4G deployments and activations ahead of the World Cup and
. 2016 Olympics. We believe Sandvine counts the top mobile operators in Latin America as
customers. Telefonica has been a well-documented customer of Sandvine. We
believe Sandvine also claims TIM and America Movil as customers, setting up
Sandvine to be in a strong position in the region as LTE subscriptions and data
grow. . Sandvine is the LatAm market leader due to its strengths in prepaid markets. In
2013 Sandvine had Caribbean and Latin American (CALA) revenues of $12.6M vs.
Procera with Americas revenue (ex. US and Shaw) of $2.4M and Allot at $5.3M (ex.
US). We believe this highlights its technological advantage in prepaid
technologies, boding well for deployments in emerging markets. . LTE growth could be a catalyst. 95% of the U.S. population is covered by LTE
compared to 47% in Europe, 10% in Asia and 20% globally. Only 0.28% of LatAm
subs are 4G subscriptions implying a big growth opportunity for Sandvine as 4G
rolls out across the region. . Maintain Sector Outperform. With solid traction amongst LatAm's largest
carriers, we believe Sandvine is well position for growth in the region. We
maintain our Sector Outperform rating.
Target $4.50