Current R&D activities using spectrum—Australia was a world leader with Wi-Fi, where to next?

1. Current R&D activities using spectrum—Australia was a world leader with Wi-Fi, where to next? Taggle Systems

2. The Challenge: Develop a solution to track cattle cost effectively • A Real Radio Design Challenge • Ultra small device • Ear tag • <20g weight including battery • 3 year + in-field life • 2 – 4 tx per hour • Small data packet • Robust design • Low cost network • 5 – 10 km range • Low cost receivers • Receiver capacity >10,000 tags

3. The Approach: Assemble a leading team of radio and chip innovators Thomas Dejanovic Gordon Foyster Matthew Henderson Richard Keaney John O’Sullivan Neil Weste

4. The Technology Innovation: Build a technology to network large areas of farmland (‘000s km2) at ultra low cost RFID (No Battery) Taggle >3 Years One Slight Problem: • Cattle not currently commercial • Most cattle farmers don’t want to pay anything to track their cattle Battery life ^ (1/2 AA cell) WiFi Zigbee <1 Year 2G, 3G, LTE <5m >5km Network Coverage (Range per receiver/base station) ^ 15min transmissions

5. The Business Innovation: Recognising that the “Cattle Tracking” radio filled a major gap in the M2M market M2M DATA CAPTURE TECHNOLOGIES High (>10 Years) RFID Existing technologies struggled to deliver low cost wide area solutions viably • W’House Inventory mgt • Shop stock control • Basic supply chain choke points Wi-Fi and “Zigbee” In-field device life^ • Hospitals • Large plants (Car plants) • Office block automation • Home area automation • Mobile Data (3G/4G etc) • Transport monitoring • Precision Ag and Mining • People location Low (<1 Year) m2 < 5 Km2 Economic Network Range > 500 Km2 ^ Self powered, small form factor, robust design

6. The Business Innovation: Recognising that the “Cattle Tracking” radio filled a major gap in the M2M market M2M DATA CAPTURE TECHNOLOGIES High (>10 Years) RFID New Commercial Target: • Devices: • Price <<$100 • Battery life >10 years (AA cell) • Hourly transmissions, 15 Bytes of data • Network Charge: • Revenue per Unit <$10 pa • W’House Inventory mgt • Shop stock control • Basic supply chain choke points Wi-Fi and “Zigbee” In-field device life^ • Hospitals • Large plants (Car plants) • Office block automation • Home area automation • Mobile Data (3G/4G etc) • Transport monitoring • Precision Ag and Mining • People location Low (<1 Year) m2 < 5 Km2 Economic Network Range > 500 Km2 ^ Self powered, small form factor, robust design

7. The Business Innovation: LPWA Networks like Taggle will deliver the “missing link” in data collection for the Internet of Things M2M DATA CAPTURE TECHNOLOGIES • Low Power Wide Area (LPWA) Networks High (>10 Years) RFID • Utilities monitoring • Water and sewer network monitoring >>15m devices • Gas monitoring >>6 million devices • Other Utility– electricity network monitoring, street lights etc • Environmental Monitoring • W’House Inventory mgt • Shop stock control • Basic supply chain choke points Taggle is the first solution in this space in Australia Wi-Fi and “Zigbee” • Rural Monitoring/Agribusiness • Crop and pasture monitoring • Asset tracking • Farm security In-field device life^ • Hospitals • Large plants (Car plants) • Office block automation • Home area automation • Mobile Data (3G/4G etc) • Transport monitoring • Precision Ag and Mining • People location Low (<1 Year) m2 < 5 Km2 Economic Network Range > 500 Km2 ^ Self powered, small form factor, robust design

8. The Business Innovation: LPWA networks can unlock significant new markets/value M2M DATA CAPTURE TECHNOLOGIES High (>10 Years) RFID The LPWA market in Australia has the potential to be at least $400m pa within 5 years • W’House Inventory mgt • Shop stock control • Basic supply chain choke points Wi-Fi and “Zigbee” In-field device life^ • Hospitals • Large plants (Car plants) • Office block automation • Home area automation • Mobile Data (3G/4G etc) • Transport monitoring • Precision Ag and Mining • People location Low (<1 Year) m2 < 5 Km2 Economic Network Range > 500 Km2 ^ Self powered, small form factor, robust design

9. Roll out at Mackay Regional Council has highlighted the potential benefits of LPWA networks to the water industry MACKAY LPWA NETWORK Installation • >30,000 devices • 22 receivers, >1,000 km2 • >750,000 readings per day Business Case – NPV $20m and counting • $100m plant deferred by 8 – 10 years • >4,000 leaks detected in 12 months • 10 – 30% historical over-design of assets • And a range of additional benefits are emerging Unexpected Benefits: Staff member burgled, 5 minute tag amongst belongings, thief tracked by Taggle network….

10. In the last 18 months Taggle has installed 20 commercial LPWA networks, and over 50,000 devices across Australia TAGGLE NETWORK SITES • Water Utility Clients include: • Mackay Regional Council • Goldenfields County Council • Yarra Valley Water • Wide Bay Water • NT Power and Water • Barwon Water • Dept of Natural Resource Management (QLD) • Isaac Regional Council • Townsville City Council • Armidale and Dumaresq Council • Port Macquarie and Hastings Council • Monitoring: • Over 50,000 km2 of network coverage with 112 operational receivers • >1.2 million water meter readings per day • Now monitoring water, gas, and electricity meters, water pressure, sewer overflow, temperature, humidity, gate alerts, electric fences, water troughs and animal tracking

11. Internationally we are seeing other major players starting to follow suit

12. LPWA networks are much more spectrum efficient than traditional mesh solutions

13. LPWA networks are much more spectrum efficient than traditional mesh solutions LIPD Spectrum Power in LIPD Band 60.3dBm Power in LIPD Band 90.6dBm ^ Taggle duty cycle in all commercial networks Mesh duty cycle from AMI Meter Electromagnetic Field Survey, DPI, 30 October 2011.

14. “Free spectrum” can easily lead to the poor spectrum utilitsation – “The Tragedy of the Commons” This is truly “high cost” spectrum ^ Taggle duty cycle in all commercial networks Mesh duty cycle from AMI Meter Electromagnetic Field Survey, DPI, 30 October 2011.

15. Will LPWA networks emerge as the “Low Cost Carriers” of the M2M communications industry? MOBILE LPWA ECONOMIC COMPARISON

16. Will LPWA networks emerge as the “Low Cost Carriers” of the M2M communications industry? MOBILE LPWA ECONOMIC COMPARISON

17. Will LPWA networks emerge as the “Low Cost Carriers” of the M2M communications industry? ECONOMIC COMPARISON: MOBILE DATA VS LPWA What are the foundations of a successful LPWA business model?

18. Building an LPWA business requires two pillars need to be in place – Availability of suitable LPWA technologies Spectrum efficient LPWA Solutions • Global development is seeing competitive options emerge rapidly • Standards are likely to take several years

19. And cost effective network sites Spectrum Efficient LPWA Solutions Low Cost Physical Network Sites • Global development is seeing competitive options emerge rapidly • Standards are likely to take several years • Resolved by: • Utility site sharing • Partnerships with Telco’s • Further regulation

20. The keystone to a stable, profitable LPWA industry is access to robust and cost effective spectrum Robust, Cost Effective Spectrum Spectrum AllocationProvision of 5 – 10 MHz of dedicated LPWA spectrum Spectrum FrameworkSet the spectrum utilisation rules and license fees to allow a competitive LPWA industry to take off Radio Sites

21. The Challenge:LPWA networks will unlock a new multi billion dollar industry in Australia – if we get it right This Encourage Competition: • Provide shared spectrum that remains robust with increased competition – e.g. Message duty cycle and energy limits Encourage Innovation: • Specify the spectrum efficiency requirements for technologies to meet Recognise Value of Spectrum: • Develop a license fee structure that reflects the realities of LPWA economics Not This • Provide shared spectrum that can be hijacked by unforseen uses – The Tragedy of the Commons • Specify requirements according to existing technology types (modulation schemes etc) • Allow vendors to get use of spectrum for free – inefficient spectrum utilisation

22. Summary: ACMA is well positioned to influence the development of the LPWA industry in Australia • Situation: LPWA networks have the potential to deliver significant new value to the economy • Commercial – e.g. Utility capital optimisation • Public good – e.g. Scarce resource management • Complication: New business and operating models need to develop to support the growth of the industry • New models (e.g. “Low Cost Carrier”) need to be explored • Steps need to be take to avoid a repeat of the “Tragedy of the Commons” • Resolution: The keystone to success is robust, cost effective spectrum that: • Creates an environment that encourages competition • Minimises the risk of the “Tragedy of the Commons” • Recognises the value of the spectrum utilised

23. Thank You