Mike Ueland Telit Wireless Solutions High Speed Air Interfaces

M2M is Hot! Berg Insight reports that M2M modules and other devices grew by 48% to 37M in Berg expects a 25% CAGR through 2015 Growth drivers: – Lower cost modules/devices – Tier One carriers engaged – Lower cost service plans Source: The Global Wireless M2M Market, Dec 2010, Berg Insight

Historically M2M=2G Coverage and service level consistency has been more important than bandwidth 2G modules 1/3 the cost of 3G modules AT&T in particular is encouraging many of their customers to use 3G for new M2M projects

What Happened to EDGE? The recent rapid move towards 3G has potentially dealt EDGE a fatal blow Performance/value ratio never served any application well

3G Networks Gaining Popularity Source: Qualcomm

3G Benefit to Carriers Better spectral efficiency Support high bandwidth applications Longer voice talk time Mapping of all services onto HSPA Faster call set up time/lower latency Smooth migration to LTE Source: Nokia Siemens

Smart Phones Driving 3G Rollout Source: Qualcomm & Informa Telecoms & Media (Q1 2010)

Mobile Data Traffic Increases According to Allot Communications' Mobile Trends report, global mobile data traffic increased by 72% in 2009; YouTube accounted for 10% and VOIP 4%. Cisco reports Global mobile data traffic will grow 26 times between 2010 and 2015, to 6.3 exabytes--a billion gigabytes--per month! According to CTIA, SMS traffic increased from 7B text messages/month in 2005 to 173B text messages/month in 2010.

AT&T Mobile Data Growth Source: AT&T

Connected Devices

Migration from 2G to 3G Source: Qualcomm

3G/4G Data Rates 21 hrs 2 hrs WCDMA (384kbps) HSPA (14Mbps) LTE (100Mbps) 4.8 min Source: GSMA The potential impact of increasing bandwidth is revolutionary

Effective Rates Source: ITU, Verizon, T-Mobile and Sprint

North America Taking 3G/4G Lead US has 6% of global subs, 21% of all 3G subs Verizon is aggressively marketing LTE AT&T recently announced plans to speed up LTE deployment

Carrier 3G/4G Strategies AT&T – Continue with HSPA+ deployments; begin LTE deployment 2H Verizon – Available in 38 markets and over 60 major airports, and will cover nationwide 3G footprint with 4G LTE by the end of T-Mobile – 200M POPs of HSPA+ 21; moving to HSPA+ 42 Sprint – Using Clearwire’s WiMax network

Which Applications Will Benefit Security Mobile computing Automotive Remote monitoring Digital signage

Source: ABI Research, M2M Market Forecasts, 2Q 2009 NA Cellular M2M Module Revenue

What is the Impact on M2M Developers? Developers will need to make trade-offs in the short term on connectivity choices 3G devices require more power 3G modules are bigger in size

What’s the status of the 2G network? T-Mobile: Have indicated it will be available beyond 2020 Verizon: 1xRTT being used to support voice in 3G AT&T: Have not formally announced plans but for certain applications, requiring 3G

M2M Total Cost of Ownership

3G/4G Forecast Second generation 3G modules will drive down costs in G modules for M2M will become feasible in G device costs won’t achieve parity with 2G devices for a number of years There will be carriers that support 2G for a long time to come

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