Smart Telemetry:

Automating Services & Supply Chain

Welcome to the Smart Telemetry:

Automating Services & Supply
Chain Seminar!

Sponsored by: Guest Panelist: Moderated by: Organized by:

 Smart Telemetry:
Automating Services & Supply Chain

Reminders

•Please turn off ringers

•Please ask questions and participate!
•Please tell us what you think on the session eval form
•I’m new! Contact me at bnicholson@telecomengine.com

Sponsored by: Guest Panelist: Moderated by: Organized by:

 Smart Telemetry:
Automating Services & Supply Chain

Panelists
Frank Bernhard (Moderator)
Managing Principal and Technology Economist, OMNI Consulting

Mark Thompson
Associate Director, Open Development, Verizon Wireless
Stan Cwalinski
VP Sales, North America, Kore Telematics

Joe Mendoza
Director of Business Development, Telecom North America, Gemalto
Roger D. Dewey
CEO & Managing Member, M2MV, LLC

Sponsored by: Guest Panelist: Moderated by: Organized by:

 Smart Telemetry:
Automating Services & Supply Chain

Agenda
• Research Perspective and Trends
• Introduction to Today’s Panel
• Threaded Discussion Topics
• Market Functions
• Issues and Challenges
• Technology Directions
• Solutions and Futures
• Interactive Insights—Audience Q&A

Sponsored by: Guest Panelist: Moderated by: Organized by:

 Smart Telemetry:
Automating Services & Supply Chain

Research Perspective and Resources

• Macroeconomic Forces at Work
within M2M
• Return on Assets (ROA) for Operators
• New Mobility Devices and LBS
Applications
• Competing Network Platforms
• Future Steps Ahead in Telematics
• Operational Efficiency Cases
• Supply Chain Execution

For these resources, please email

mobilebroadband@ocg-us.com
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 Smart Telemetry:
Automating Services & Supply Chain

Research Perspective and Resources

• Operator Strategy
• Location Based Services and Collaboration
• Convergence with WiMAX, LTE, and FMC
• Value Translation to Subscribers and
TEMs
• Interoperability Creates New
Challenges
• Security and Privacy
• Service Delivery Experience

For these resources, please email

mobilebroadband@ocg-us.com
Sponsored by: Guest Panelist: Moderated by: Organized by:
 Smart Telemetry:
Automating Services & Supply Chain

Research Perspective and Resources

• Investments in M2M Platforms
• Technical Advantage
• Operational Efficiency
• Economic Improvement
• Market Enhancement and Utility
• Changing Technology Pathways
• RFID and SIM-based technologies
• Short-range and Long-range
• Mesh Opportunities for Operators
• Tradeoffs and Future Choices
• WiMAX, LTE, and 4G Solutions
• Maturity Models of M2M Automation
• Substitution and Existing Network Assets
Sponsored by: Guest Panelist: Moderated by: Organized by:
Verizon Wireless
Open Development
Mark Thompson
Associate Director- Business Solutions
Penetration to Connections

>400%
• “Conventional” population-
based penetration will
Auto &
Telemetry
continue to grow
+
Security
+ • The opportunity for
Utility
+ “Connections” will
Healthcare considerably out-number
~90% +
??? human beings

Conventional
Conventional
Penetration
Penetration • Making “conventional”
population-based penetration
Future
less meaningful
Today

Wireless Connections will explode

9
M2M Market Growth Potential
North American cellular M2M module revenue by application

Source: ABI Research, M2M Market Forecasts, 2Q 2009

10
 Next-Generation Hurdles

Service Wireless
providers operators

Chipsets/components,
Technology
infrastructure
providers
equipment, and devices

Technology LTE
standards

The next dominant 4G standard needs to create an ecosystem of technology

and service providers to generate sufficient scale to compete.
11
The Verizon Wireless 4G License Map

The only carrier with contiguous 4G spectrum

12
 Verizon Wireless Spectrum Bands

Lower frequencies = increased performance

• Increased coverage
• Better in-building penetration
• More efficient use of capital

AWS

700 Cellular PCS BRS

0 1,000 2,000 3,000

Frequency (MHz)
Active 3G Verizon Wireless holding Active 4G Verizon Wireless holding 13
 Planned LTE Coverage

Equal to today’s
EV-DO footprint
300
LTE
devices
available
200
Population
(in millions)
100

0
2010 2011 2012 2013 2014

14
 More WAN Applications

3D
3D TV
TV On-Demand
On-Demand
Robust
Robust “Anything”
“Anything”
Gaming HDTV
HDTV
Gaming
Video P2P
P2P Visual
Mbps+ Video
Conferencing
Visual
Networking
Networking
Conferencing Virtualization
Virtualization

Mobile TV
Internet Collaboration
Connectivity

Mbps Music
MMS Gaming
V CAST

Email
Mobile Web Social
Networking
Telemetry GPS
Kbps VoIP
EMS
SMS IM
15
 Open Development Enables Innovation

Verizon Wireless Networks

Strengthen Voice GPS Web Number Authenti- Billing IP Enable

our lead mail pool cation innovation

Service and Administrative Platforms

Verizon • Verizon Wireless devices • Your device Verizon

Wireless • Verizon Wireless applications Coexistence • Your application
Wireless
• Verizon Wireless content • Your content
Retail • Verizon Wireless distribution • Your distribution OD

Customer
16
Target Segments

Machine-to-machine Consumer electronics Traditional handsets

• Transportation • Navigation devices • Specialty handsets

• Utilities • eReaders • Low-cost handsets
• Security • Netbooks
• Industrial control • Gaming devices
• Vending • Digital cameras
• Health care

17
nPhase
Verizon Wireless & Qualcomm Joint Venture

Single source, fully

integrated M2M
• Advanced device communication • Wireless network
connectivity provider with global leadership
technology • Vertical industry
connectivity
• Proven M2M expertise
solutions track record • Simplified device
• State-of-the-art certification process
chipset capabilities

18
Realizing the Data Opportunity

Verizon Wireless is uniquely

positioned to take advantage of the
data opportunity:
• LTE is the right technology to VZ & VF 700/LTE
realize the ever-increasing potential
of data.
• 700 MHz is the right spectrum to
exploit LTE’s capabilities.
• Open Development brings the
right partners to bring innovation
and expertise. OD nPhase
And now nPhase.

Verizon is uniquely positioned to take

advantage of the data opportunity.
19
Gemalto’s Role in M2M

Joe Mendoza
Director – Business Development
joe.mendoza@gemalto.com
 Gemalto’s secure personal devices are in the
hands of billions of individuals

Produced and securely personalized over 1.4 billion devices in 2008

Supplying e-passports to countries with some 600 million citizens

800 million people use our banking cards

Serving some 450 mobile operators worldwide that connect 700 million
subscribers

30 years experience in designing and producing secure personal devices

October, 2009
Wireless M2M market is promising!
Global Cellular M2M Market
Trends


IDATE
IDATEandandABIABIresearch
researchpredict
predictthat
thatby
by2010
2010
there
therewill
willbe
bemore
morethan
than100
100billion
billioncommunicating
communicating
objects,
objects,with
withclose
closetoto22billion
billion“intelligent
“intelligentmachines”
machines” CAGR (’07 – ’10) = 22%


Berg
BergInsight
Insightsees
seesEurope
Europewith
withaapotential
potentialofof600
600
million
millionwireless
wirelessconnections
connections


M2M
M2Mhas haspassed
passeditsitsinitial
initialhype
hypephase,
phase,and
andisis
evolving
evolvinginto
intoaamore
moreestablished
establishedspacespace

Business Drivers

Proliferation ofofwireless data access – large

Proliferation wireless data access – large
untapped
untappedpotential
potentialforforwireless
wirelessM2M
M2M


Key
Keypartnerships
partnershipsbeing
beingestablished
established


MNO
MNO looking to grow B2Bsegment
looking to grow B2B segmentand
andtotomove
move
upstream
upstreamininthe
theM2M
M2Mvalue
valuechain
chain


New
Newcost-efficient
cost-efficientsolutions
solutionsremoving
removingbarriers
barrierstoto
wireless
wirelessM2M
M2Madoption
adoption

October, 2009
Typical Network Ecosystem

SIM

October, 2009
MARKET ANALYSIS
M2M Customer Needs / Requirements

SIM card
Gemalto M2M SIM is
should…

Have a longer operational life span
Extended Lifespan Mechanism on board

Not be removable: avoid theft
Can be solderable

Operate in increased temperatures ranges
M2M qualified chip

Resistant to increased vibrations, shocks,
Different Form Factors like SIM plug-in,
humidity VQFN8, and others

Be fully integrated within M2M
Easier logistics with Remote

communicating boxes Personalization Service

Allow far more easier, transparent logistics
Extended Warranty Duration

Compliant with industry standards
Meets Industry standards

October, 2009 24
 M2M
Current Personalization Process Limitations

The subscription to a particular Mobile Operator is usually

known after the hardware is integrated

To attempt to integrate an embedded SIM with a Telecom

identity inside is too complex to manage for the Hardware
integrator.

The inventory stock by Mobile operator is not easily

manageable for an integrator

Conclusion: The personalization of an M2M SIM needs to be done

after its integration into the M2M box or Wireless Module

October, 2009 25
Gemalto’s Value Proposition

Solutions Key Features Associated Technology

• Field Proven Solution • Java OS

• Designed for Industry • Advanced EEPROM
Applications endurance
• Extended Life Span
• Highly Secure
Operator Benefits M2M Actor’s Value

• Simpler Logistics and • Easy to integrate

reduced costs • M2M industrial quality
• Quicker entry to • Avoid SIM manipulation
marketplace • Optimizes logistics
• Warranty Extension

October, 2009
Thank you
An Introduction to:

KORE Telematics
The M2M Specialists
CTIA – Smart Telemetry: Automating Services & Supply Chain

October 8, 2009
Proprietary Information

© 2009 KORE Telematics. This document contains information that is proprietary. It is being provided for the sole purpose of evaluating KORE Telematics proposed Trial
Program and/or services. All other uses or distribution to third parties without written advance consent is prohibited. KORE logo and PRISMTM are trademarks of KORE
Telematics. All other trademarks are the property of their respective owners.
Who is KORE Telematics?

KORE Telematics is the largest specialized wireless

network provider focused exclusively on M2M

Tier 1 M2M network & value

added services
Best choice of mobile & fixed
wireless IP technologies
Broadest North American &
worldwide coverage
Expert M2M & partner support
Fastest time-to-deploy
Lowest total cost-to-operate

The M2M Specialists

© 2009 KORE Telematics 29
KORE – a Proven Growth Partner

Incorporated in 2003
– Consistent operating profit,
positive cash, financial growth
and cumulative net adds
– Private equity: No debt; No VC’s

Operations
– Headquartered – Toronto, Canada
– National Sales Office – Atlanta,
GA
– Network Operations Centers -
Winnipeg, MB Atlanta, GA and
Las Vegas, NV
– Commercial Center – Reston, VA

The M2M Specialists

© 2009 KORE Telematics 30
KORE Enables Solutions

Hundreds of Thousands of M2M

Devices Shipped
Supporting 600+ Partners
Delivering Solutions Today
Supporting Applications:
 Asset Management, Supply Chain
 AVL, Fleet Management
 Environmental, Green, Public Safety
 Healthcare, Medical
 Industrial, RMAC & SCADA
 Lighting, Signage
 POS, Vending
 Energy, Smart Grid, AMI,
Demand/Response
 Security, Video & Surveillance

The M2M Specialists

© 2009 KORE Telematics 31
KORE has the Broadest Portfolio

Standards-based Wireless Network Services for all

Mobile & Fixed Applications
 GSM: SMS, GPRS, EDGE/EDGE+, HSPA
 CDMA: SMS, 1xRTT, EV-DO
 Tier 1 GSM & CDMA operator partners
 Worldwide via the m2mGlobal® Alliance

Value-Added Capabilities & Services

 Real-time self-management platform
• Industry-leading PRiSMPro Gateway
• Secure web portal & scalable API
• Management, reporting & integration tools
 Streamlined tier 1 certification & field deployment services

The M2M Specialists

© 2009 KORE Telematics 32
Commercial Approaches

The Network is a Smart Utility

– Expect it to work but only pay for what you use
Work with Our Partners to Optimize Cost
– Understand Sensitivity: Usage per device, seasonality, recurring cost,
unpredictable peaks/troughs, updates, life cycle
Comprehensive & Flexible Wireless Services Portfolio
– Infrequent Use - $1+ monthly – to high capacity applications using 3G
delivery
Optimize Fixed Network Access and Variable Use Costs to
Allow for Flexible Business Modeling
No-Cost Network Access for Build and Verification Test

Our Business is about Making Your Business Successful!

The M2M Specialists

© 2009 KORE Telematics 33
PRiSMPro
Pro Gateway to Real-
Time Solution Management

Secure, Self-Management Via

Web Portal or High Capacity
API
 Real-time activation & control
 Management of all service
features & options
 Usage management with
threshold alarming
 Integrated Multi- Carrier
device/service management
 Device inventory support
 Coverage maps & tools
 Comprehensive usage
reporting
 ‘One bill’ integrated invoice

The M2M Specialists

© 2009 KORE TelematicsTM 34
34
KORE is Recognized

‘Master Partner of the Year’

 AT&T Business Channel

‘M2M Enabler’ Award Winner

 M2M Magazine Value Chain Awards

Chosen as a Top 100 M2M Company’

 M2M Magazine M2M100 Awards

Named to Red Herring Top 100 2008

 Most Innovative, Pioneering Companies

Named to the Deloitte Fast50

 Fastest Growing Companies

PCS Type Certification Review Board

 Only non-spectrum owning network
provider with full voting membership

CTIA M2M Industry Forum

CTIA Associate Member
The M2M Specialists
© 2009 KORE Telematics 35
Why Choose KORE

Lowest Total Cost of Ownership

– Time to market – streamlined on-boarding process including necessary
supplementary services
– Tools - innovative, self-management tool kit
– Support - focused, world-class M2M support & rapid trouble ticket resolution
– Standards-based – lowering long-term support costs
Lowest Risk
– Financial strength – sustained profitability
– Direct interconnect and contractual backing with leading GSM network
providers
M2M Leadership
– Focused on M2M – it is our primary business
– M2M pioneers & innovators
– Hundreds of thousands of M2M devices shipped & over 550 customers

Innovative & Comprehensive Pricing Approaches

The M2M Specialists

© 2009 KORE Telematics 36
Thank You
Stan Cwalinski
Vice President Sales
678.389.3146 X1390
scwalinski@koretelematics.com

North American Toll Free: 1.866.710.4028

International: +44 (0)203.004.8131
sales@koretelematics.com
www.koretelematics.com
© 2009 KORE Telematics. This document contains information that is proprietary. It is being provided for the sole purpose of evaluating KORE Telematics proposed Trial
Program and/or services. All other uses or distribution to third parties without written advance consent is prohibited. KORE logo and PRISMTM are trademarks of KORE
Telematics. All other trademarks are the property of their respective owners.
 M2MV, LLC Company Overview
M2MV is a consulting firm fostering business success
through the application of M2M -- the internet of things.

10/20/2009 M2MV Company Overview - Copyright © 2009 M2MV, LLC www.m2mv.com Email: info@m2mv.com 38
 What is M2MV?
A consulting firm conceived to assist its clients in taking advantage of the
rapidly growing business opportunities presented by the Machine-to-
Machine (M2M) space.
● M2MV specializes in business success rather than technology.
● Bridging the understanding gap between the M2M community and general
industry.
● Helping to foster a broader understanding of concepts and strategies related
to M2M through contributions to trade publications, blog postings, and
participation in industry events.

10/20/2009 M2MV Company Overview - Copyright © 2009 M2MV, LLC www.m2mv.com Email: info@m2mv.com 39
 Vision
Wide scale integration of the nearly unbound benefits of M2M into
existing business models will be the next great leap forward in global
business productivity and efficiency. M2MV believes that by the middle
of the next decade, M2M applications will be the key driver in the world’s
next economic growth surge as was the PC at the end of the last century.

10/20/2009 M2MV Company Overview - Copyright © 2009 M2MV, LLC www.m2mv.com Email: info@m2mv.com 40
 Core Offerings
M2MVisionSM: Developing and executing strategic and operational
business plans for the implementation of M2M applications by
enterprises.
M2MVoyageSM: Assisting foreign and domestic based M2M companies
in expanding into new regional and vertical markets.
M2MVentureSM: Supporting merger and acquisition activity of companies
in the M2M space.

10/20/2009 M2MV Company Overview - Copyright © 2009 M2MV, LLC www.m2mv.com Email: info@m2mv.com 41
 Thank you.
We appreciate your interest in
M2MV.

For more information please visit our website at

www.m2mv.com

M2MV ~ Developing strategic and operational business plans focused on the client's success in
implementing M2M applications, expanding into new markets, and supporting mergers and acquisitions.

10/20/2009 M2MV Company Overview - Copyright © 2009 M2MV, LLC www.m2mv.com Email: info@m2mv.com 42
 Smart Telemetry:
Automating Services & Supply Chain

Market Functions

Sponsored by: Guest Panelist: Moderated by: Organized by:

 Smart Telemetry:
Automating Services & Supply Chain

Why do you need to understand the

sub-segment’s business models?
For example: Automotive -- the business drivers for
sub-prime automotive finance, pay-as-you-drive
insurance and automatic vehicle locators (AVL) are
completely different.

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 Smart Telemetry:
Automating Services & Supply Chain

Issues and Challenges

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 Smart Telemetry:
Automating Services & Supply Chain

What are the major obstacles holding

M2M back from really taking off?

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 Smart Telemetry:
Automating Services & Supply Chain

What can the “smart efforts” learn

from M2M regarding the struggle to
achieve mass deployment?

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 Smart Telemetry:
Automating Services & Supply Chain

With lowered ARPU, how can

wireless operators make a profit?

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 Smart Telemetry:
Automating Services & Supply Chain

What are the challenges now that

M2M is shifting from retrofit of
existing and deployed machines to a
line fitted OEM integration at time of
manufacture?

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 Smart Telemetry:
Automating Services & Supply Chain

Technology Directions

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 Smart Telemetry:
Automating Services & Supply Chain

Will performance increases in the

cellular network leave M2M behind?
Example: M2M applications work just fine sending
SMS message over a GPRS network, forcing them to
upgrade to 3G adds cost with no added value.

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 Smart Telemetry:
Automating Services & Supply Chain

Commoditization of the early drivers of the

M2M industry – the module companies and
M2M MVNOs.
Will there be consolidation? Profitability?

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 Smart Telemetry:
Automating Services & Supply Chain

Will middleware platforms develop to

become something like Windows for
M2M, accelerating time to market and
reduced costs for new applications?

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 Smart Telemetry:
Automating Services & Supply Chain

Solutions and Futures

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 Smart Telemetry:
Automating Services & Supply Chain

How can the deployment of M2M

services be made more efficient to
meet the market needs?

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 Smart Telemetry:
Automating Services & Supply Chain

Thank you!

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