Simplifying M2M 5 Ways Decrease the Cost and Complexity of Deploying M2M Solutions

1. October 3, 2012 David Kalb AT&T Director of M2M Business Development Simplifying M2M5 Ways Decrease the Cost and Complexity of Deploying M2M Solutions

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

3. M2M: Unlimited Opportunity / Immense Complexity “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 - 2005 “Today we have an M2M Supply Chain Mess” Yankee Group

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

5. Evolution of Wireless M2M Solution Tomorrow • New revenue streams • Business Intelligence for automated self-healing’ processes • Fully integrated global solutions 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

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

7. Simplifying M2M5 ways decrease the Cost and complexityof deploying M2M solutions • Cloud Based M2M Services • M2M Service Delivery Platform • M2M Application Platforms • Global M2M Service Offerings • Vertical M2M Solutions

8. 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”

9. 2. M2M Service Delivery Platform Why Important? • Pre-built Service Delivery platform specialized for m2m • Features added based on customer demands in agile development • Turnkey Business Management, Operations, Support Capabilities • 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

10. 3. M2M Application Platform

11. 4. Global M2M Service Offerings • 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

12. 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

13. M2M Vertical Solutions Transportation, retail, asset management, and utilities/energy Axeda Forrester Research, Inc., “M2M Connectivity Helps Telcos Offset Declining Traditional Services”, November, 2011

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

15. AT&T M2M Capabilities10-year history with Over 13M connected devices under management • Architectural Design Services • Application Development • Deployment & Managed Services • Lifecycle Management Professional Services • Packaged M2M Solutions • Developer Kits • Reference Frameworks • Strategic Ecosystem Partners Applications • AT&T Control Center Powered by Jasper • AT&T M2M Application Platform Powered By Axeda Platform • Global SIM • 200+ Countries • Global SMS • Location Based Services Network Devices • 1000+ Certified Devices • Device Innovation Labs • 3G Modules