1 Why CDMA for the Security Industry? Wayne Ward, Vice President Emerging Solutions Group September 8, 2011

Telecom Technology Shifts Impacting the Alarm Security Industry POTS, DSL, Cable shift to Wireless? GPRS End of Life?, Longevity of 3G? Consumer Wired Broadband Challenges? Unlimited Mobile Broadband Plans? 2

Key CDMA Network Considerations for the Security Alarm Industry CDMA Longevity - will the network be there? CDMA Coverage - will the alarm panels and devices have the coverage required? CDMA Security - is CDMA secure? CDMA Costs – is CDMA affordable? 3

CDMA Longevity 4

5 How Much Longer Will CDMA Exist? June 27, 2011 At the CDMA Development Group’s CDMA World Forum, in Guangzhou, China, the ugly “how much longer will CDMA exist” question reared its head a time or two. I tend to agree with James Person, COO of the CDG, who said he expects to be at a world forum in 10 years answering the same question. Machine-to-machine is getting a strong push globally from operators, and those long-term contracts will force carriers to maintain the networks, especially if the predicted M2M explosion occurs.” Tracy Ford, editor of RCR Wireless had the following to say on CDMA’s longevity: CDMA Longevity

What is it? Innovative $4 Billion Network Upgrade underway What are the benefits? For Customers >10+ Year CDMA 2G and 3G Technology Guarantee >Enhanced 2G, 3G, and 4G Coverage >Customers with Spectrum holdings can save years and billions getting to market. Target customers include Lightsquared, Dish Network, and even Public Safety For Sprint >Savings: $1.5 Billion per year in reduced infrastructure and roaming costs >Expand M2M Market: Provide coverage, quality and 10+ year network longevity assurances. >New Market: Multi-Billion Dollar Network Hosting opportunities Nation’s 1 st Multi-Frequency and Multi-Protocol Software define Cellular Network No more 1 spectrum frequency = 1 Protocol 1 shared pool of spectrum frequencies for any many different protocols (2G, 3G, CDMA, WiMax, LTE, etc) Includes upgrade to 1x Advanced 2G platform Sprint Network Vision

Baseline Post NV Implementation Increase in Coverage Coverage Covered Pops Covered Area Dense Urban 174%247% Urban 96%184% Suburban 21%87% InVehicle 13%48% 7 Washington, DC Market Coverage Improvements

CDMA Coverage 8

Domestic Coverage – Pops 9 2G3G CDMA Sprint Nextel 312,261, ,950,936 Verizon 311,049, ,223,767 GSM ATT 309,884, ,109,815 T-Mobile 299,669, ,969,251 Total US pops including PR and VI 313,331,355 based on publicly available information as of 06/30/2011

10 CDMA Global Coverage

6 out of 8 US Wireless Carriers are Standardized on CDMA! In some regions such as Europe, Carriers have no choice but to use GSM. Luckily In the USA, carriers have a choice. Why do almost all USA carriers choose to standardize on CDMA?

CDMA Security 12

CDMA Security Protocols are Among the Best in the Industry CDMA enhances security by using improved encryption algorithms and other means such as authentication, hashing, data protection and anonymity. Ultra Secure Spread Spectrum CDMA Originally developed for secure military applications requiring enhanced anti-jamming and eavesdropping protection such as guided missiles Spread Spectrum CDMA code has NEVER been compromised. Unlike GSM, CDMA encrypts & spreads the Voice/data session across the ENTIRE Spectrum Spectrum CDMA is the gold standard for protection against eavesdropping and jamming over the air interface. CDMA Security and Privacy 13

CDMA Costs 14

CDMA Module Cost & Product Development Considerations 15 2G Module Costs – Competitive with 2G GSM/GPRS Modules (CDMA $3-6 more per module) 3G Module Costs - Parity with 3G GSM/WCDMA Forced 3G Modules use for new low bandwidth solutions development – Advantage CDMA - certifying 2G Devices Development Time/Resources Impact –Can use Gobi module OR a module manufacturer (Telit, Fusion, Centurion) who provides PIN for PIN compatible GSM and CDMA Modules.

Summary 16 CDMA Longevity CDMA Coverage CDMA Security CDMA Costs

Why Sprint for the Security Industry? 17

#6 of America’s 500Greenest Companies (only telecom in top 50)– Newsweek (Oct. 2010) Listed on the 2011 M2M100, a list of the most innovative technology providers of M2M and connected devices – Connected World Magazine In honor of Sprint’s leadership in M2M, the CDMA Development Group (CDG) awarded Sprint the 2011 CDG Industry Achievement Award for Operator Leadership Sprint/M2M Accolades We continuously receive recognition and awards from leading third party analysts Sprint received the Global Telecoms Business Innovation Award in the category of Business Service Innovation Unified Services Enablement recognizing how Sprint enables Unified Communications 6/19/2009: Recgonized at London gala event Sprint is unbeaten among major wireless carriers for customer satisfaction and is the #1 most improved company in customer satisfaction, across all industries, over the last three years – American Customer Satisfaction Index (May 2011) Sprint ranks #1 in overall satisfaction for wireless voice and data services among large business customers - Yankee Group U.S. Carrier Satisfaction Survey, 2010

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Thank You!!