1. Restricted - Confidential Information © GSMA 2008 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy What to do When TAC Run out John Talbot BABT Paul Gosden, GSMA Document NumberDG_20_014 Meeting Date29 th to 30 th September 2009 Meeting VenueGSMA London For Approval For InformationX Version1.0 Security RestrictionsFull & Associate Members

2. Confidential 2 TAC Allocated Since 2004 YearBABT TACsTotal TACsTotal % Increase % BABT 20042596285590.93 20053080332116.3292.74 20064492485046.0492.05 20076162648333.6795.05 20088091858532.4294.25

3. Confidential 3 Old IMEI Format TAC - Type Allocation Code (6 Digits) FAC - Final Assembly Code Serial NoCheck Digit NNXXXXYYZZZZZZA

4. Confidential 4 Current IMEI Format TAC - Type Allocation CodeSerial NumberCheck Digit NNXXXXYYZZZZZZA Reporting Body Identifier Type IdentifierNumber range allocated by Reporting Body but assigned to individual mobile stations by the manufacturer. Defined as a function of all other digits (calculated by the manufacturer). Note: For NN = 35, initially YY was fixed at 00 and is subsequently incremented when XXXX reaches 9999

5. Confidential 5 Calculations to determine the lifetime of the remaining TAC numbers beginning 35 For each TAC extension ( From 00 to 99) there are 8500 TAC numbers available since the first 1500 are reserved. That gives a total of 850000 TAC numbers available. There are approximately 31695 TAC numbers beginning 35 already allocated and currently in the system. The number of TAC numbers allocated last year was approximately 8000 TAC numbers. Based on these figures, the estimated lifetime of the pool of 35 TAC numbers has been calculated at differing % increases:

6. Confidential 6 Calculations to determine the lifetime of the remaining TAC numbers beginning 35 % Increase Per YearNo of Years Left 2016 3013 4011 509 609 708 808 Since the 2008’s increase was approximately 30% up on the year previously and assuming that rate remains constant, that would give a lifetime of 13 years of 35 TAC

7. Confidential 7 Future requirements for TAC The current demand for TAC in Mobile phones is increasing which is where we are seeing the current steady requirement from. There is a added demand from Notebook vendors this will increase over the coming years but will never meet the current Mobile Phone requirements. The huge demand will come from the requirements of the Machine to Machine market in modems. – Cars & Lorries – Vending Machines – Utility Meters

8. Confidential 8 Future requirements for TAC If the predicted increase is 50% not 30% then the current 35 range of TAC will only last 9 Years There are 75 reporting body numbers not started these would give a total of 75,800,000 TAC At an annual increase of 50% the current TAC range would run out in approx 21 years. We have a few TAC in reserve, these are Reporting Body numbers that were not fully used.

9. Confidential 9 So what do we need to do? 21 Years is not long in the fast moving device manufacturing industry, and if the 50% increase is bigger, than we could only have 10 years before the TAC numbers are all gone? If new hardware & software tools will be required we need to plan what is needed so that everyone concerned is given plenty of notice. Should we allocate TAC in a different format of TAC for the M2M devices (e.g. 10 digit TAC numbers)? So how can we increase the TAC range? – The old & the new TAC will need to be recognisable on the networks. – Who else do we need to engage in this discussion? – Is this nothing to do with DG and we should just send an LS to 3GPP?