We have one topic scheduled for BC review Thursday: a proposed update to the Revenue Share Agreement (RSA) structure for carriers.

Asks for BC: Approve updated US carrier RSA structure that includes fewer configuration requirements (shift from full search integration to Default Home Screen, or DHS); reduced US carrier revenue share on new devices (no change to installed base); allows exception for Verizon only to allow Yahoo Home mobile app with Bing-powered Yahoo Search bar preloaded on +1 screen (not DHS); and delegation of authority to Platforms & Ecosystems Cross-Functional Deal Review (PEX) to determine how to utilize savings from reduced revenue share. Current plans include volume incentives for premium devices and longer term initiatives to drive Android share.

Rationale in support of deal: Incentive realignment appropriate given current trends whereby US carrier revenue share spend is growing YoY while Android is losing share. Savings from the new RSA structure can self-fund bounties in years 1-2 to drive targeted devices, and be redeployed in year 3+ to help grow the Android ecosystem. Search usage not expected to be materially impacted as long as Google retains placement on DHS. Relaxing configuration requirements to allow preloads of alternative Search apps helps ease regulatory risk and reinforces Google's principle to provide options to users. Carveout for Verizon allows partner to advance their current post-acquisition strategy for distribution of first-party applications across their user base.