Location Based M2M Opportunities

1. Location Based M2M Opportunities Michael Grossi, Director Altman Vilandrie & Co.

2. Fixed (Wireline) Technologies Wireless Technologies M2M offers opportunities in many service sectors • Industrial Ethernet • Powerline • Broadband • Cellular • GSM/GPRS/EDGE • CDMA/1xEV-DO • 3G • Satellite • Wireless LAN • Bluetooth • ZigBee • Other 802.15.4 and related technologies M2M and “The Internet of Things” describe the connection of machines and sensors through any means to the Internet • Buildings/Facilities • Office Equipment • HVAC/EnvironmentalSystems • Access Controls • Consumer/Professional • White Goods/Appliances • Game Systems • Consumer Electronics • Energy • Meters • Distributed Generators • Electricity Grid • Pipelines • Industrial • Automation & ControlEquipment • Capital Equipment • Medical/Healthcare • Medical Devices • Retail • Scanners & Registers • Lighting & Refrigeration Systems • Security/Public Safety • Homeland Security • Transportation • Vehicles • Airplanes • Transport Systems • IT & Networks • Enterprise: IT/Data Center, Office • Public: Services, E-Commerce, etc.

3. The M2M market is highly fragmented in each component of the value chain – no single market leader has been established Hardware Enablement Network Services Managed Services M2M Modules/ Devices Aggregators/ Platform Software Comm Services Value-Added Services / Applications End Users Chip Vendors

4. Machine to Machine Market Opportunity • M2M devices are poised for rapid growth, exceeding 600 million devices by 2015 and accounting for $24B in service revenues Worldwide M2M Devices(Millions) CAGR% M2M – devices that communicate data wirelessly to other devices for the purpose of automating data collection and monitoring of large complex systems/networks 40% 40% 42% 38% 40% 40% UtilityMeters 34% Source: Strategy Analytics, AV&Co analysis

5. Mobile Internet Devices (MIDs) • Emerging MIDs and especially netbooks are gaining popularity worldwide, and will be a key driver of traffic growth within 3 to 5 years Worldwide Mobile Internet Devices(Millions) Worldwide Notebook/Netbook Shipments(Millions) MIDs cover a wide range of devices: • Smartphones • UMPCs • Netbooks • Portable navigation devices • E-book readers • Portable media/MP3 players • Handheld gaming devices MIDs have Internet access via WLAN (WiFi) or WWAN (3G or better) CAGR% CAGR% 18.1% 36% 25.8% 16.6% Sources: IDC, 2008, iSuppli, Display Search, 2009, AV&Co analysis

6. Consumer Electronic Devices • There are a wide range of device categories, across the mobile, in-home and in-car environments, that are wirelessly enabled or will be soon • Portability • Large Capacity - 320GB • All forms of media playback • DVR capability • Sold online, big box and boutiques • Portability & Wi-Fi • Thousands of game titles • Internet browsing and chat capability • Sold online, big box Networked Portable Gaming Widescreen Personal Media Player • Ultra portability • WWAN & WLAN connectivity • Superior form factor for text input • Integration of portable media • Extensible OS for 3rd party apps • Sold via service provider • Home media server for photos & movies with network WLAN & Internet connectivity • Storage expandable and robust • Sold 3rd party online and big box Home Network Storage Smart Phone • Small full-functional computers • Network WWAN capable • Communication-focused • Integrated web-cam • Sold direct, 3rd party online • Design specifically for in-car entertainment • Wi-Fi and Bluetooth connectivity • Available from car manufacturers and aftermarket vendors In-Vehicle Multimedia NetBook/ Tablets • Home monitoring & security • Energy and climate control • IP-based devices for remote viewing and recording • Sold direct from service providers or online for DIY kits • Niche device for reading • Network WWAN capable • Ancillary network-based features • Sold by 3rd party online and big box • Subscription model E-book Reader Smart Home Devices • High definition disc play • Internet integrates with home media center • Streaming media capable • Push/pull of information & user generated content • Digital cameras with geo-tagging capability and photo upload capability over the air • Photo location integrate with mapping software for creating and sharing stories Networked Blu-RayDVD Player, Roku & SlingCatcher DigitalCameras w/ GPS 6

7. All four U.S. carriers have made significant investments in strategic relationships or network improvements to capitalize on this emerging market • AT&T signed an exclusive deal with Jasper Wireless to facilitate connection of consumer and M2M devices to their network (May 2009) • KPN became Jasper’s preferred European network operator and exclusive operator in Belgium, Germany, and the Netherlands. KPN has also made an equity investment in Jasper (Q1 2010) • AT&T announced a developer connection kit to facilitate deployment of new M2M devices on their network (March 2010) • T-Mobile and Sierra Wireless agreed to work together on product development, marketing, sales, and deployment of M2M solutions, starting in Germany (September 2009) • Cadec Global, provider of fleet management solutions, began an M2M partnership initiative with Aeris in February 2010 • GE developed Wi-MAX-based smart meters that were available as of 2009 • GE Healthcare signed an agreement with Sprint for wireless networks, services, and software at six Texas hospitals (April 2009) • Vodafone, Verizon, and nPhase announced a strategic alliance to accelerate adoption of M2M technologies (February 2010) • Verizon reported in Q1 2010 that 7.3% of 101 million wireless connections are M2M • Sprint and M2M DataSmart have a multi-year agreement to facilitate the deployment of M2M devices on Sprint’s network (September 2009)

8. Supply Side Challenges Demand Side Challenges • Diverse rate plan needs of different M2M devices and services means increased complexity on the part of wireless carriers • Evolving network technologies (GSM vs. CDMA, LTE vs. WiMAX) create complex choices for device manufacturers • Operation/running cost was by far the highest concern of adopters surveyed • Data integration/ interoperability, initial/ installation cost, and development of new support structure followed in importance, but were still considered critical challenges Sources: Wireless Week Magazine “A Web of Challenges, Connections: M2M,” 2/1/2010; Beecham 2008 M2M Adopter Survey

9. GPS tracking and security are the most likely uses of M2M communication for SMBs based upon our survey • What are the most likely uses for M2M communications at your location? (select all that apply) • Do you have any ideas concerning M2M that you would like to see developed? Most likely uses for M2M communications Selected Comments from the interviewees • “The current M2M applications would provide the resources that we are looking into at this time such as tracking fleet vehicles” • “Implantable chip to allow tracking access to sales reps. Make sure they work a full day” • “Read tanks remotely” • “Not familiar with the applications. Am taking a seminar on this right now” • “Able to incorporate with in store computer systems. Such as Open Table or Hot Schedules” • “Up - to - the minute information regarding wine barrel system pressure after harvest transmitted from remote location (i.e. form California to France or vise versa)” • “Automation of commercial food production equipment, room temperature control” Source: AV&CO primary research survey, n=500

10. Location-based messaging and monitoring has many potential applications • Key features across all applications include two-way, location-specific communication and monitoring • Opt-in and Opt-out models are available and have significant impacts on specific applications

11. Mobile Resource Management (MRM) • MRM is a category of business solutions that enables companies to more effectively manage mobile workers, mobile tasks and mobile assets Key Purchase Criteria Types of MRM Solutions Industry Drivers Features and Functionality • GPS location, tracking, monitoring • GPS navigation and optimized routing • Timecard recording and reporting • Work order management • Alerts and geo-fencing • Data collection and reports Integration and Customization Options • Simple configurations: back-office integration not required • Configurations and integration: MRM software is configured with back-end systems • Complete customization: open developer tools and APIs for customized development Cost Components • Mobile devices • Monthly carrier data subscription • MRM application software • Systems integration work Field Force Management • Business need: to manage the field workforce in order to reduce business costs and maximize ROI Field Service Management • Business need: to manage the delivery of products and services to customers in order to maintain strong customer service while keeping business costs to a minimum Field Asset Management • Business need: to manage fixed and mobile assets in order to ensure utilization is maximized and therefore minimize costs Attractive, hard dollar ROI • Benefits include reduced overtime, fuel and labor costs due to increased dispatch and scheduling efficiencies, improved job completion rates, tighter control over spare parts inventory, and higher insurance policy discounts Affordable entry points • The ability to monitor and track employees and assets from IP-connected devices and the growth of low-cost GPS-enabled mobile devices has increased affordability and flexibility Competitive advantage with customers • MRM can positively impact a company’s customer satisfaction and customer retention metrics through more timely and prepared technicians and increased first call resolution rates

12. Strategic Implications in the M2M Ecosystem • Given the industry fragmentation – how will industry evolve? • Reliance on carriers and other third parties to provide network access – how can carriers play a larger role? • Who is positioned to win in the space?

13. Michael Grossi Direct 617.753.7209 Mobile 617.480.9389 mgrossi@altvil.com Altman Vilandrie & Co. 53 State Street 37th Floor Boston, MA 02109 Telephone 617 753 7200 Fax 617 439 4290 www.altvil.com Contact Details Michael Grossi, Director Michael is a Director with Altman Vilandrie and Company and focuses on wireless and digital media sectors. Prior to AV&Co, Michael was an SVP & GM with Helio, a highly innovative MVNO in the U.S. While at Helio, Michael led all Strategy, Business/Corporate Development and was GM of the Mobile Data Services team responsible for both the data P&L and product development. Prior to AV&Co, Michael was a Vice President with Adventis, a strategy consultancy, and a leader in the wireless practice and has 10 years consulting experience. Michael has led many strategy engagements for his clients spanning all facets of the wireless value chain including equipment manufacturers, service providers and content providers.