SIMPLIFYING M2M 5 Ways Decrease the Cost and Complexity of Deploying M2M Solutions October 3, 2012 David Kalb AT&T Director of M2M Business Development

Worldwide M2M Module Shipments 2 ABI Research, 09/2011, “Cellular Machine-to-Machine (M2M) Markets”

“There are more machines than there are people in the world. Someday they’ll all be connected to the internet.” International Telecommunications Union “Internet of Things” Report “Today we have an M2M Supply Chain Mess” Yankee Group M2M: Unlimited Opportunity / Immense Complexity

M2M Success faces numerous challenges What’s the best way to configure & activate devices? What’s the best way to configure & activate devices? How can I maximize battery life? How can we optimize the payload? How can we optimize the payload? What regulatory certifications do I need? Can I have a rugged device that is also lightweight? Can I finance the hardware? How do I manage support? Can I get an affordable wireless plan? How do I protect my data? How will we ship / track hardware? What about international coverage? How will I handle billing? What if something isn’t working? Can I integrate into our legacy and ERP systems? How do I manage my devices over the air?

5 Evolution of Wireless M2M Solution Today Revenue growth; customer satisfaction Increased functionality & data, proactive processes Multi-country Today Revenue growth; customer satisfaction Increased functionality & data, proactive processes Multi-country Yesterday Cost reduction; reactive Low data usage, limited functions Local or national focus Yesterday Cost reduction; reactive Low data usage, limited functions Local or national focus Tomorrow New revenue streams Business Intelligence for automated self- healing’ processes Fully integrated global solutions Tomorrow New revenue streams Business Intelligence for automated self- healing’ processes Fully integrated global solutions

M2M Solution Stack Applications Hardware Platforms Connectivity Infrastructure Prof Svcs Managed Svcs SIM provisioning, Billing, Troubleshooting Application / Device Management Packaged M2M Application Solutions Custom Applications, ERP/CRM Applications Cloud Infrastructure Data Centers, Back-end Systems, Cloud Computing Wireless, Wireline,Satellite, WiFi, Zigbee, etc. Chipsets, Modules, Sensors, Environmental Specs, Certifications: FCC, PTCRB, carrier, industry (i.e. HIPPA) Consulting, App Development, Integration, Deployment Lifecycle and deployment services, help desk

1.Cloud Based M2M Services 2.M2M Service Delivery Platform 3.M2M Application Platforms 4.Global M2M Service Offerings 5.Vertical M2M Solutions 7 Simplifying M2M 5 ways decrease the Cost and complexity of deploying M2M solutions

1. Cloud Based M2M Solutions Improve Productivity Real time collaboration across employees, partners, customers Requirements for applications to work across devices Reduce Cost Low storage and server utilization in non-peak periods Desire to pivot from Capex to Opex Remove Complexity Simplification due to limited IT staff down market End-to-end ownership vs. multi-vendor service integrations Demand to mobilize and virtualize assets, applications and activities Off-premise On-demand Easy to Use Device Agnostic Tiered Support Manage “Big Data”

Capabilities Why Important? Pre-built Service Delivery platform specialized for m2m Features added based on customer demands in agile development Turnkey Business Management, Operations, Support Service Provisioning Subscription Mgmt Billing Service Geography Business Models SIM Management Channel Management Customer Support Cost Management Diagnostics Fraud Management Analytics Order Management Inventory Management 2. M2M Service Delivery Platform

3. M2M Application Platform

Challenges of a global M2M deployment: Assembling and managing the best solution partners (hardware, software, systems) Integrating a global product, including hardware, software, network Deploying and managing solution in multiple regions Real-time management of network performance globally Cost controls and alarms for data usage by roaming devices Provisioning in real time Tracking and managing multi-protocol or multi-frequency SIMs Technical support 4. Global M2M Service Offerings

One SIM With Global Roaming Coverage Single global encrypted GSM SIM Unified billing and a single rate plan for digital data services Global diagnostics and device monitoring Lowest-cost data routing with roaming permissions controls Usage alarms Powerful reporting tools

Axeda Forrester Research, Inc., “M2M Connectivity Helps Telcos Offset Declining Traditional Services”, November, )M2M Vertical Solutions Transportation, retail, asset management, and utilities/energy

Emerging market opportunities include healthcare, security/surveillance, and consumer products Forrester Research, Inc., “M2M Connectivity Helps Telcos Offset Declining Traditional Services”, November, 2011

AT&T M2M Capabilities 10-year history with Over 13M connected devices under management Architectural Design Services Application Development Deployment & Managed Services Lifecycle Management Packaged M2M Solutions Developer Kits Reference Frameworks Strategic Ecosystem Partners AT&T Control Center Powered by Jasper AT&T M2M Application Platform Powered By Axeda Global SIM 200+ Countries Global SMS Location Based Services Certified Devices Device Innovation Labs 3G Modules Professional Services Devices Applications Platform Network