Experience and Perspective of Security Installation Opportunities Edward J. Donelan, RCDD/NTS, TLT President, Telecom

1. Experience and Perspective of Security Installation OpportunitiesEdward J. Donelan, RCDD/NTS, TLTPresident, Telecom Infrastructure Corp

2. BICSI Publications • NDRM (Network Design Reference) 6th Edition • November 2005 • ESS (Electronic Safety and Security Design) 1st Edition • January 2006 • CO-OSP (Customer Owned Outside Plant) 4th Edition • January 2007 • PAVDRM (Principles of AV Design) 1st Edition • June 2006 (ICIA Partnership)

3. BICSI UPDATE • ESS (Electronic Safety and Security) Designer Designation Direction The ESS designer is the person who understands vulnerability, risk, and threat, designs a complete and functional security system, oversees the implementation and verifies / validates system performance. • SIA – Javits Center, NYC • August 24 – 25, 2005 • Security Industry Association • www.isceast.com

4. BICSI UPDATE • ESS Outline • Threat – Legal, liability, ethic • Asset Protection • Intercom / Annunciators • Biometrics / Intrusion Detection • CCTV – Access Control • Monitoring - training • Fire Detection & Alarm • Sensors / Integrated System • Mobile Security / Wireless / Data Security • Doors, locks, safes and seals

5. Source: SecuritySales.com Business Opportunity In 2004 47% said their company is listed on a GSA Schedule, compared to just 12% in 2003. The convergence of IT and computer networking with electronic security is becoming reality. A true indicator that separates an alarm dealer from a serious systems integrator is if the company has its own CAD/CAM plotter equipment.

6. Business Opportunity CCTV and Access Control making strides toward topping burglar alarms as the electronic security industry’s No 1 source of revenue Source: SecuritySales.com

7. Source: SecuritySales.com Security Business Opportunity

8. Business Opportunity Homeland security efforts appear to be substantially impacting the electronic security industry as large industrial (gov’t, utilities, airports, stadiums, etc.) swiped 6 percentage points from both commercial and residential installations in 2004. Source: SecuritySales.com

9. Business Opportunity Electronic security contractors continue the recent trend of making more at the front end as paid-in-full installations remained at 58%. Source: SecuritySales.com

10. Security Installation Statistics • Average number of installed accounts in 2004 is 550 • Average number of monitored accounts in 2004 is 300 • 76% use a third-party contract central monitoring station • 47% of integrators have access to the internet from the field.

11. Security Business Opportunities The “sweet spot” for the typical security contractor is $1 million to $4.9 million in annual gross revenues. Source: SecuritySales.com

12. Source: SecuritySales.com Security Remote video is one of the most in-demand features with networked video on the rise. Average gross profit margins 40.3% and 27.4% net profit on CCTV installations

13. QUESTIONS TO ASK • What is the application? • Retail store, office, parking lot, all • How many cameras in the system? • How many indoors & outdoors • What are the cameras viewing? • Area, distance • This may determine if P/T/Z is needed

14. QUESTIONS TO ASK • What is camera environment? • Freezer, office, hot warehouse, etc. • Where or how are cameras mounted? • Ceiling dome, outdoor pole, etc. • How will the system be used? • Manned system, monitored • Passive system just recorded

15. QUESTIONS TO ASK • How many monitor locations? • View only or control • Is remote access needed? • Remote network connection • Internet

16. QUESTIONS TO ASK • What does user want to achieve? • Stop internal theft • Security from outside influences • Shoplifting • Vandalism issues

17. GUIDELINES • Be aware of lighting • Observe the sun • Know why customer wants cameras • 1 camera will not cover a 300’ fence

18. INTRODUCTION TO ACCESS CONTROL

19. Access Control

20. Access Control • Average profit margins for Access Control installations are 37% gross and 22% net. • Integrators say more than 48% of their access control installations include some sort of integration with CCTV or other security system. • Commercial office environment accounts for more than 36% of all access control system installations.

21. AC Worksheet Access Control System Door Planning Worksheet • In order to install the proper locking hardware, answers to the following questions are essential.

22. Reasons For Access Control • Reduce Key Control Problems • Allows Managed Access • Provide 24/7 Security • Management Tool • Reduce Cost

23. Key Control Problems • Affects all business and government • No control of distributed keys • Huge security risk • Stolen/missing keys = new locks & keys • Very labor intensive and expensive

24. Key Control Solutions • Provide card access to all employees • Each card is unique, assigned to user • Absolute control • Immediate information • Easier to manage • Reduced costs

25. Allow Access…Problems • Providing security to the building • Day vs. night • Various levels of security • Authorized personnel • Time, day,entry & exit • Doors must be locked and unlocked • Key holder control

26. Allow Access…Solutions • All employees are issued a card • Demonstrates confidence to employees • Maintains control over usage • Time, day, schedule. Etc. • By employee, dept., visitor • Cards are difficult to duplicate • Provides flexibility with security • Secure when and where needed

27. 24/7 Security Problems • Key systems are not secure • Employees must feel safe • High cost for keys, locks, guards, etc. • Risk of internal theft and fraud

28. 24/7 Security Solutions • Provide perimeter security • Permit free movement of employees • Authorized access w/o supervisor key • Increase mobility of workers • Reduce or eliminate guards • Reduce opportunity for theft of fraud

29. Application for Access Control • Need to improve or upgrade security • Companies with key control problems • Real or potential security risks • Need to provide greater security • Shift schedules • High employee turnover • Temp. workers

30. Application for Access Control • Multiple levels of security • Execs., factory, R&D, TR’s, MTER’s, etc. • Need to record or control usage • Charge for use, common conf. Room • Companies offering flexible schedules • Improve after hours security • Need to automate security functions

31. Why Sell Access Control • Leads to add-on sales • CCTV • Expansion • Motion detectors • Small recurring revenue in cards • Also keeps you in touch • Less competition than traditional alarms

32. Why Sell Access Control • Potential for higher margins • Leads to other sales • Word of mouth • Envy

33. Access Control Basics • Who, When, Where, What • Who uses the system • When they use the system • Where they use the system • What happened

34. Access Control Components • Controller • Multi-reader control in a can • Single door keypad • All wire goes to this point • Cards • Each user assigned a unique card • Usage parameters programmed in system • Bit formats

35. Access Control Components • Reader Technologies • Proximity (prox) • Magnetic Stripe • Bar Code • Weigand • Radio (RF) • Multi-Technology

36. Access Control Components • Reader Technologies • Biometric • Hand • Finger • Face • Voice • Retina • With Keypad

37. Access Control Components • Controlled Door • Lock • Electric strike or magnetic lock • One or two readers • Door contact • Request to exit detector (REX) • Automatic door closer • Optional annunciater

38. Access Control Components • Magnetic Lock • Must release with fire alarm, power failure • Building not secure in power failure • “Push To Exit” button w/ separate timer • Automatic release (15 sec. delay max.) • Electric Strike • Free exit device • Typically locked without power • Use a locksmith

39. Access Functions & Features • Schedules & Holidays • Access Levels • Monitored Inputs • Alarm Events • Elevator Control • Antipassback • Mantrap • Time & Attendance

40. AC Worksheet Access Control Quick Quote Fax Form • In order to spec the right equipment for the job, fill out this handy quick quote sheet.

41. Burglary Alarms • Average profit margins installing companies realize on burglary jobs are 42.2% gross and 25.5% net. • 26% of burglary installations include wireless equipment

42. Opportunity Average Profit Margins Gross Net Access Control 37% 22% CCTV 40.3% 27.4% Security Contractor typical Sales is $1 million to $4.9 million in annual gross revenues.

43. Thank You Edward J. Donelan, RCDD, NTS, TLT President, Telecom Infrastructure Corp Treasurer, BICSI edonelan@BICSI.org