Smart Devices & Services

HarborResearch

White Paper

Smart Devices & Services How CDMA Technology Is Driving The Connected Age

CDMA-based wireless networks are at the forefront of the transition from ‘simple’ devices to intelligent networks and smart products. This technology has enabled a host of ‘smart services’ opportunities and higher value creation for the vast community of players that makes up the CDMA2000® M2M (machine-to-machine) ecosystem, including M2M solution providers, device suppliers, network operators, system integrators, investors, and thought leaders in various vertical markets.

This paper explores the application opportunities, technology requirements and business benefits arising from M2M communication.

White Paper sponsored by the CDMA Development Group Smart Devices and Services CDMA2000 1X

Table of Contents Introduction 4

Advantages of CDMA 5 Security 7 Reliability 7 Coverage 8 Capacity & Speed 8 Efficiency 9 Obsolescence 9

CDMA Case Studies 10 Connected Homes & Energy: SmartLabs & Sprint 11 Remote Asset Monitoring: ASC & Digi 12 Consumer Telematics: CalAmp & Sprint 13 Retail Banking: Ventus & Sierra Wireless 14 Transportation: San Jose PD & Feeney Wireless 15 Consumer Electronics: messageQube & Sprint 15 Industrial Manufacturing: Gerber Tech & Axeda 16 E-Health: Sensuss & Eurotech 18

CDMA Ecosystem 19 Modules & Components 19 Other Hardware 19 MNOs 19 MVNOs 20 Application Providers 20 Solution Providers 21 Impact of LTE 22 CDMA2000 1X Revision F 22 Recommendations 23

Conclusion 24 Appendix A - Module Pricing Forecast 26 Appendix B - CDMA2000 Advantages 27 Appendix C - CDMA2000 Case Studies 28 Appendix D - CDMA2000 Ecosystem Information 31

This paper was sponsored by the CDMA Development Group and created in collaboration with Harbor Research.

For more information contact us: [email protected]

Executive Summary Billions of devices are currently being connected to the Internet and these devices extend far beyond the tablets, PCs and smartphones we have become so accustomed to. Virtually all products that use electricity— from coffee makers and refrigerators to ATMs and medical diagnostic machines—possess inherent data processing capabilities. Today, almost any manufactured object has the potential to become M2M enabled, thus confirming the enormity of the M2M opportunity. Like the Internet The large potential opportunity enabled by M2M technology has caused revolution that a number of competing wired and wireless technology standards to preceded it, the attempt to address the market. Despite this fragmentation, one particular standard has risen above the rest when it comes to meeting the needs of emergence of cellular the M2M marketplace: Code Division Multiple Access (CDMA). Since its M2M is making initial development in 1985, CDMA technology has continually evolved to solutions that were meet the ever-changing needs of revenue generating data services. With multiple backwards-compatible revisions, including CDMA2000 (deployed previously unthinkable in 2000), the CDMA ecosystem has matured and its constituents are now attainable recognizing significant economies of scale.

Determining which technology to leverage is a critical and far-reaching decision for product OEMs, end-users, and service providers. Sound decisions require market participants to understand the trade-offs and benefits associated with each technology. Our research indicates that reliability, low total cost of ownership, and secure communications are CDMA2000 major benefits to end-users and solution providers that choose CDMA will maintain a networks to manage their M2M applications. significant market The global ecosystem that has emerged around CDMA M2M products share as the M2M includes module and component providers, network operators, mobile market continues to virtual network operators, software platform providers, and service providers. These players operate across a variety of verticals including, expand but not limited to, the Energy, Healthcare, Consumer, Transportation, Retail, Resource, Home, Building, IT, Security, and Industrial markets.

Within these verticals, players that have chosen CDMA2000 networks are recognizing a host of benefits that are well-suited for M2M applications. These benefits include high security levels, network longevity, ubiquitous coverage, high bandwidth, spectral efficiency, low latency, energy efficiency, and “always-on” connectivity. Given these benefits, it is easy to see why many industry leaders consider CDMA to be optimal for M2M services.

CDMA has established a market-leading position and given the comprehensive coverage and continuing investments in CDMA technology and infrastructure to ensure longevity for the technology, CDMA2000 will maintain a significant market share as the M2M market advances and expands.

Introduction We are currently entering a new era in societies and governments alike will connectivity, one that is unlike any we respond in real-time to the needs of have ever seen, and the technology both its citizens and assets. universe is preparing to take full M2M technologies The M2M opportunity is truly global advantage of this opportunity. and tremendous in scale. We connect things, people, The 90s brought about the Web estimate that nearly 300 million M2M processes, and and e-mail, while the past decade enabled devices shipped worldwide revolutionized e-commerce and knowledge to enable in 2012 and this number is expected business-to-customer relationships, collective awareness, to increase to almost 900 million and today, a ubiquitous Internet is efficiencies and better devices in 2016. evolving to create a truly connected decision making world. Given the size of the M2M opportunity it’s hardly unexpected In this next technological wave, that several competing technology manufactured objects, everyday standards are vying for a piece of devices, general infrastructure, the M2M pie. Despite the many and businesses will increasingly options however, one technology has become Internet-enabled (‘smart’), carved a leading position in the M2M thus allowing for constant marketplace: CDMA2000. communications and interactions between and amongst these once Around the world, CDMA networks disparate groups. This phenomenon, have become a top choice for where everyday objects and connectivity with over 625 million devices are brought online and subscribers using CDMA2000 1X and able to interact directly, is known an additional 210 million using EV-DO as Machine-To-Machine (M2M) connected devices. CDMA2000 also communication. As M2M takes hold, has a presence in 121 countries and

Exhibit 1: Total Cellular M2M Connections - Worldwide

1,000 900 800 700 600 N. America 500 Europe 400 AsiaPac Millions of Units 300 ROW 200 100 0 2011 2012 2013 2014 2015 2016

territories. With its global reach and We highlight several successful reliable reputation, it is no surprise and unique CDMA2000 M2M Market leaders agree that that CDMA2000 technologies and applications, and detail the vast the following criteria are networks have become the go-to ecosystem that has developed highest-priority: choice for companies offering M2M around CDMA M2M applications, products and services. products, and services. We conclude with a discussion of suggested • Security: Will the For example, Verizon Wireless has actions and recommendations for information I send established a market-leading position those entering, operating, or studying be secure from with over 7 million M2M connected the CDMA M2M marketplace. cyber attacks or devices running on its CDMA2000 ‘eavesdroppers’? network in the United States alone. Internationally, CDMA networks are • Reliability: How often being used for M2M applications Advantages of CDMA is the network down? across virtually every continent. In Since the beginning of computing How dependable will Europe, KPN chose to deploy a there have been three major my connection be? CDMA450 network exclusively for use generations of technology and with M2M devices and applications. architecture: mainframe computing, • Coverage: Where Additionally, Tata Teleservices distributed computing, and mobile does the network in India, China Telecom, Iusacell computing. Each generation built extend? Does it (Mexico), and Starcomms (Nigeria), upon the one preceding, culminating offer connectivity in have all deployed a wide variety of in the connected world we have rural areas? Within M2M applications on their respective today. The impact of cellular and buildings? CDMA2000 networks. sensor technology on business and CDMA M2M applications can be society is far more pervasive than any • Capacity & Speed: found across many market verticals of those preceding. How quickly can I transmit data? What as well. In the transportation arena Like the Internet revolution that file sizes can the we estimate that over 7 million preceded it, the emergence of network handle? telematics-enabled vehicles are using cellular M2M is making solutions CDMA2000 network connections. that were previously unthinkable • Efficiency: How much Smart grid programs utilizing CDMA seem obvious and attainable. Simply energy does this have been announced and deployed put, the recent advances in cellular network require to in the U.S., Europe, and Asia. Home technology have freed devices from operate? and remote healthcare services the bonds of wired connections have also flourished with the help of and opened up new possibilities of • Obsolescence: Will CDMA connections. Regardless of networking even in the most mobile the technology be geography or market segment, it’s and remote assets and, in doing so, useful in the future? not difficult to find M2M applications enabled a host of innovative and employing CDMA technology. valuable services. In our opinion, the This paper explores the benefits of most disruptive and revolutionary CDMA technology as they relate aspect of this technology is not the to M2M applications and systems. ability to simply connect people, but the ability to connect devices

— automobiles, wind turbines, light from the application rather than the switches, industrial equipment, intricacies of network infrastructure. medical devices and ATM machines Some key issues come with this — regardless of their location. This tremendous opportunity that cellular capability is driving the current M2M applications must address. expansion in the M2M market. The challenges and issues facing Cellular networks are prime M2M applications are far different candidates to enable connected from those facing voice applications devices because they provide secure, or smartphones. As we increase our low-cost, ubiquitous connectivity. dependence on M2M technology Enabling a given device becomes and connect critical assets over as simple as outfitting it with a the network, network performance, CDMA2000 module. For example, reliability, and security become a fleet management company can paramount. The repercussions outfit all of its trucks with CDMA2000 of a dropped phone call pale in modules and enable a location significance when compared with services application to know and the impact that network failure can report on any truck’s location, have on a heart monitor or smart grid speed and direction. With cellular system. connectivity, the infrastructure required to inform such a solution is the sole purview of the cellular provider so the end-user is free to focus on the data and value derived

Exhibit 2: Total M2M Vertical Market Forecast

$16,000 $14,000 CDMA-enabled $12,000 networks provide $10,000 secure, low- $8,000

Millions cost, ubiquitous $6,000 $4,000 connectivity across $2,000 a range of verticals $0 2011 2012 2013 2014 2015 2016

Consumer IT Residen9al Resources Homeland Security Healthcare Professional IT Transporta9on Retail Buildings Industrial

Security encoding the data and spreading it out over a range of channels When delivering M2M services, (hence “Code Division”), CDMA is especially new or innovative secure and makes it very difficult applications, end-users will need to for unauthorized parties to steal or have confidence in the security of interfere with data. Instead, would- their devices and data. be “eavesdroppers” experience the In modern healthcare, many new transmission as “white noise” and are advances in medical treatment and therefore unable to easily interpret care require cellular connectivity. data sent over the network. CDMA While these technological advances supports the IPv4/IPv6 and IPSEC are a boon to patients and doctors, suite of security protocols. CDMA many are nervous about the wireless users also have the option to choose CDMA is one of the transmission of highly confidential static or dynamic IP addressing most secure wireless medical information. A sufficiently to ensure continuous network technologies available secure connection is essential to connectivity and secure firewall today allay patients’ fears about new access. technologies that could improve and Furthermore, users have the save lives. opportunity to leverage virtual private Additionally, other applications — like networks (VPNs) to isolate M2M data a smart grid — can be a matter of traffic from general subscribers. national security and require secure connections to ensure safety and Reliability functionality. An Internet-enabled The value proposition of M2M electricity grid is vulnerable to the requires robust networks and same types of cyber attacks that constant connectivity. Fleet the national security community and management solutions lose their web architects worry about on the effectiveness when the network is web today; only the consequences down or data is lost during a period of such security breaches become of low connectivity, and a patient more profound. As utilities like San wearing a heart monitor cannot afford Diego Gas and Electric roll out to have his coverage dropped. programs to optimize efficiency of To ensure reliable connections, the grid, customer safety, service and CDMA2000 is designed to protect profitability must also be maintained. against “crowding out” that can CDMA is well-suited to meet the happen on cellular networks. If a security challenges posed by large number of devices are suddenly the movement of critical data “awake” on the network, an end-user over cellular networks. CDMA’s can be confident that the network will original intent was the delivery of not drop his device(s). CDMA2000 highly secure communications. By is optimized to provide the most

capacity per Hertz of spectrum, applications. M2M applications allowing a significant number of are often highly mobile or, if fixed, subscribers and devices to connect are in remote locations or buried to the network at a given time and deep within buildings. A solution for location. Given the constraints of monitoring remote assets is only finite spectral resources, CDMA is valuable if the coverage provides more efficient at placing more people, adequate “visibility.” For example, devices and data on a given portion many utilities are saving on operating of spectrum. This enhanced capacity expenditures by remotely monitoring results in increased reliability and grid assets that are in remote, better performance that ensures rural locations. An employee in a devices will not lose coverage at network operations center can now Companies crucial times or be crowded out in continuously monitor and diagnose busy areas. CDMA2000 1X Rev. F the same assets that once took a implementing M2M further increases the reliability of service technician half a day to reach. solutions cite coverage a network by increasing channel as a critical decision CDMA signals can “bounce” off dimensions, which reduces the risk of of walls and allow reasonable making factor channel collisions. penetration into buildings, providing For M2M applications, reliability enhanced connectivity and making it is especially important in mobile, well-suited for a variety of equipment portable and roaming scenarios. connectivity applications within Since adjacent cell towers use the buildings. For example, an MRI same frequencies, CDMA systems machine connected by CDMA that can perform “soft handoffs.” When operates within a hospital, or an traveling between two cell towers, asset in a factory, will be visible to soft handoffs allow both towers to those monitoring it remotely. be engaged until the signal strength Five of the top seven carriers in from the new tower exceeds that the U.S. use CDMA2000, making of the first tower, resulting in fewer it the largest network in the United dropped signals for both voice and States with over 170 million CDMA data. subscribers. The knowledge that the CDMA2000 is also optimized to allow solutions will be part of the country’s for the location of a device to be most pervasive and prodigious made available to call dispatchers network is one of the most critical for faster emergency response factors in determining which network requirements. to join.

Coverage Capacity & Speed Closely related to reliability and The ability to create immediate performance is the importance of connections is very important in coverage and capacity for M2M M2M applications. When nodes are

at rest, moving between and across bandwidth to handle more active regions, or in time-critical situations, requirements. CDMA2000 can also they must be able to quickly establish segregate and prioritize based on a network connection. CDMA2000 packet size and send small data 1X Rev. F advances CDMA2000’s packets over faster channels, which already fast connection speed is ideal for typically small M2M and allows the node to quickly packet-sizes. establish network connections by circumventing the channel access Efficiency procedure, thereby setting up a M2M applications are often remote connection in single step. or at a scale that requires energy efficiency to be a top priority. Ideally, Though some M2M applications M2M modules and connected CDMA is fully currently require the transfer of only devices can run as long as possible backward small amounts of data, as solutions without needing to have their power trend toward greater complexity, compatible, allowing source replaced. By allowing for bandwidth will be an increasingly all applications lower latency and more efficient important commodity. Applications connections, CDMA modules contain to communicate for video transfer, such as security lower power requirements than many - regardless of or asset monitoring, already send alternative cellular standards, which deployment date and copious amounts of data over the helps increase battery life and makes air – potentially resulting in significant revision type smaller devices possible. network costs. Similarly, home healthcare and consumer telematics CDMA also allows for paging can require fairly data-intensive techniques and related modes to solutions. CDMA’s low latency, high consume less power and minimize bandwidth, and low cost per byte airlink usage, which further increases make it especially attractive for high- the efficiency of the technology. bandwidth applications. Obsolescence At a lower price per byte, CDMA can End-users are concerned with simultaneously lead to lower total longevity and ensuring their cost of ownership for M2M solutions. technology will continue to perform CDMA’s always on, low latency allows well into the future. M2M solutions these large bits of data to transfer are often designed to last as seamlessly over the air, facilitating many as fifteen years and must be real-time interaction with data. compatible with changing technology CDMA is also effective at making standards. To this end, CDMA is fully efficient use of available networks. backward compatible, ensuring that Technical features, like allowing applications will not be abandoned modules to store overhead when technologies advance. When messages, decrease the reliance on CDMA advanced to its more recent the network, which frees up critical 3G formats, CDMA2000 1X, EV-DO Rel. 0, EV-DO Rev. A, EV-DO Rev.

Exhibit 3: M2M Business Benefits

Benefit Description Cost & Connected devices can automatically send out alerts, Service Time maintenance requests and be fixed remotely, reducing Reduction downtime and the number of service trips required. New or Better Smart products offer solution providers Services enhanced data about their products, leading to the development of new revenue streams. Customer Building relationships provides OEMs and solution Relationship providers the opportunity to create repeat customers. Building Increased Connected products can cater to customer Sales preferences, increasing the likelihood that a solution will be available to meet the needs of the user and providing more sales opportunities. Differentiated Selling services and end-to-end solutions is far more Product powerful than merely selling products; connected Offerings devices can generate service businesses that can become indispensable to the customer. Better Connected devices enhance the user experience Customer by providing real‐time information and seamless Experiences access through familiar portals like smartphones. Improved A product development function can generate Information feedback on how a given product is used (e.g., which features are popular, which features cause problems, etc.) which can lead to improved and updated products that are tailored to customers’ needs.

B, and CDMA2000 1X Rev. F, newer CDMA Case Studies chip sets were compatible with CDMA products and services are older ones. EV-DO, which stands being incorporated into a wide variety for “evolution data optimized,” is of M2M applications. Looking at specifically designed to lower latency the overall market, it is hard to find a and increase bandwidth capacities, vertical that has not benefited from resulting in improved service for the use of CDMA networks. CDMA data transmission. The evolution M2M solutions can commonly to a data optimized solution makes be found today in the Energy, the CDMA2000 EV-DO series of Transportation, Retail, Healthcare, standards uniquely suited to meet Finance, Consumer, and Industrial these new challenges. markets. In truth however, this list represents only a fraction of the areas that are deploying CDMA2000 M2M solutions.

In this next section of the paper we will highlight eight separate With a connected home, property case studies where CDMA2000 owners can schedule electrical products and services are used for devices to be turned on or off, and CDMA Case Studies successful M2M applications. These connect their devices to the grid case studies help illustrate some to allow utilities to turn devices off • Connected Homes & Energy of the markets where CDMA2000 when the local demand for electricity SmartLabs & Sprint M2M is used and provide insight exceeds the power supply, if they so into the economic returns available choose. • Remote Asset Monitoring to adopters of CDMA2000 M2M Atmospheric Systems & To pilot the technology, a Sprint solutions. Digi retail store has installed INSTEON- Connected Homes & enabled devices and has begun • Consumer Telematics CalAmp & Sprint Energy leveraging the portal. A few months after installation, the store has • Retail Banking The smart grid is arguably the most been recognizing energy savings Ventus & Sierra Wireless talked about M2M application today. exceeding 28 percent. As energy demand outpaces supply • Transportation SmartLabs, Inc. managing and environmental concerns grow, SJPD & Feeney Wireless director, Robert Holz, explains, business leaders, homeowners and “Our solutions allow utilities and utilities across the globe are looking • Consumer Electronics electricity providers to enable more for solutions to help save energy messageQube & Sprint customers in their geographic and increase customer satisfaction. footprint with affordable home and • Industrial Manufacturing Initiatives from SmartLabs and Gerber Technology & business energy management. In Sprint now allow home and business Axeda addition, residential, multi-family, owners to access and control energy small- and medium-sized business consumption from a simple Web • E-Health consumers will increasingly be able portal or a Sprint smartphone. Technology & Axeda to remotely manage their properties’ Driven by SmartLabs INSTEON home energy consumption, water usage, area network (HAN) technology, gas safety and security, with Sprint homeowners can immediately and providing the backbone for the easily monitor and control their messaging.” In short, with INSTEON energy consumption and recognize technology connected over Sprint’s an immediate return on investment. reliable and robust CDMA2000 INSTEON technology uses existing network, homeowners and utility wires (power line) in the home and companies can both benefit through radio-frequency communication to better information, increased help extend the functionality of the transparency and automated controls technology, lower installment costs, and messaging. and increase ease of use. Once a In addition to saving energy, user has installed INSTEON-enabled INSTEON products can be used to devices, they can link them to their control indoor and outdoor lighting, online, Sprint-enabled portal.

security systems, heating and cooling WAN VPNs router to enable cost- (HVAC), appliances, and door locks. efficient data transfers of this critical These applications can be configured information in real-time. and automated based on time of day, occupancy, weather conditions or Looking at the market, it ambient light levels, helping to make is hard to find a vertical the home or business truly smart. that has not benefited Remote Asset Monitoring from the use of CDMA Keeping track of people and assets networks can vastly simplify a complex world. As more and more companies have widely distributed assets, it becomes Deployed SoDAR Unit imperative to know where they are In addition to completing mission- and what they are doing at all times. critical functions like sending daily Atmospheric Systems Corporation emails with wind energy data, (ASC) manufactures surface-based ASC systems can proactively send atmospheric remote sensing maintenance messages, such as instruments and systems, commonly routine service updates or system known as Sonic Detection And status messages when something Ranging (SoDAR) units, that measure goes wrong. This means that most and profile atmospheric conditions on-site maintenance tasks can be using sonic waves. This data is better planned prior to any on-site vital to wind energy land owners, visit, reducing the amount of time developers and wind plant operators required per visit and ASC customers who need to have an accurate can better manage and maintain understanding of the local area wind their SoDAR units, further reducing energy production capacity of a operational and maintenance costs. specific site. Given their remote location, when Wind turbines and potential locations these units do have to be visited, for wind power production are often the costs can be significant. Before found in limited access regions remote monitoring, certain systems such as mountainous areas, ridge had to be visited as frequently as lines, deserts or sparsely inhabited every two weeks, which cost ASC open areas. In many cases, there and their clients up to $1,400 per is no access to local power or trip. Minimized site visits alone have communications networks – which saved them $5,000 to $15,000 per means that these systems must project, per year. transmit their data wirelessly. ASC has leveraged CDMA2000 “Our customers need to be able technology and Digi’s ConnectPort to monitor, modify the operating configuration and diagnose their

equipment remotely,” said Ken to provide enhanced security for Underwood, CEO, ASC. “Now we their children. Insurers are meeting can look at systems any day, from this shift in demand by leveraging anywhere,” Underwood added. “We new mobile data technologies to can review operations in Europe, fuel innovations and develop new China and the U.S. When customers products based on individual vehicle or representatives call up with usage and driver behavior. questions, we can get into the system Sprint and CalAmp have developed immediately and answer them. a location monitoring and messaging Data in wind energy is like gold. device designed specifically for Monitoring daily is important to many commercial and consumer auto customers.” insurance applications, a market that CDMA2000 technology enables represents more than 250 million seamless access to a local network registered vehicles in the United consisting of the SoDAR computer States alone. On-board modules, and the customer computer without connected over Sprint’s CDMA2000 For M2M players like the requirement of using fixed IP network, collect and aggregate GPS CalAmp, commercial connections with crossover cables. and motion events. Understanding and consumer auto By leveraging CDMA2000 technology, the use of a vehicle and its location ASC can easily add other IP devices, in real-time elevates insurance, insurance applications such as data loggers and cameras, maintenance, and commercial fleet represent a market to the local field network – further management capabilities to an opportunity of over extending the value ASC can provide entirely new level. 250 million vehicles to their clients. By being able to track driving Consumer Telematics behavior, insurance providers can develop new business models, As the smartphone has brought including accurate usage-based M2M technologies to the forefront of insurance (UBI), and create consumers’ lives, the connected car benchmarks and metrics to optimize may be next. Like the cell phone, the their capacity. Insurance carriers can car’s ubiquitous nature and ability use this to add direct value to their to serve as a platform for hosting customers, increase pricing accuracy a diverse array of services makes and attract and retain high-quality it a prime candidate to host new drivers. applications. Drivers are expecting more and more out of their cars These applications would not be including roadside assistance, possible without the CDMA2000 infotainment and safety. Likewise, network. When designing these parents are increasingly concerned solutions, CalAmp needed a about the safety of their teenage network with superior location drivers and are looking for ways capacity to enable more accurate

fleet management capabilities, ATMs and kiosks at off-premise including tracking and monitoring. events must be mobile, flexible, CDMA2000’s enhanced security also scalable, and above all, secure. In helps to alleviate privacy concerns of the past, these requirements forced their customers. vendors, merchants and event organizers to plan 60 to 90 days in “CalAmp’s ability to reliably and advance to acquire, install and test cost-effectively deliver the vehicle for dial-up or wireline networks. operating analytics to enable Installation fees, line costs and the these insurance products firmly manual labor for set-up and take- establishes us as a leading supplier down were significant. Now, ATMs of critical-path technology for the and kiosks enabled with CDMA auto insurance market,” said Greg technology are deployed within days, Gower, Senior Vice President and relocated easily and reconfigured General Manager of CalAmp’s Mobile remotely. CDMA technology reduces Resource Management business. the installation costs by 50-70%, Also, the same information can be compared with landline deployments, beneficial to mechanics and auto and helps reduce management and CDMA technology dealers as they assess a car’s history, overhead costs. These terminals can reduced installation and commercial fleet managers also be preemptively replenished, process by 50- can use these devices to track which significantly increases 70% for Ventus and monitor their fleets to ensure customer satisfaction. commercial drivers are driving safely, Leveraging CDMA2000 technology, running on time, and taking adequate Ventus’ routers and networks are care of company assets. constantly monitored by live, in- house help desk and engineering Retail Banking teams. This allows Ventus to provide maintenance and upkeep services More secure networks and shifting to their customers that deploy their demand have increased online and ATMs and kiosks. Ventus is also wireless banking activity. Mobile able to provide valuable statistics ATMs and kiosks are becoming of device availability, reports, and popular at “off-premise” events on-line status through a secure including seasonal venues and web-based portal that allows for temporary events like outdoor music monitoring, automated real-time concerts. Ventus — a provider of alerts, and web-based access to turnkey and custom solutions for help alleviate and resolve potential M2M —partnered with banks, credit network issues quickly. unions, ATM, kiosk and security providers, manufacturers, and Transportation processors to design solutions to In California’s third largest city, over meet the unique needs presented by 1,300 officers protect and serve a mobile ATMs and kiosks.

population of nearly 1 million people, reductions sought by the San Jose resulting in over 100,000 reports Police Department in its mission to generated annually. At this scale, eliminate centralized, paper-based efficiency, security and quality of record keeping, while providing an service are top concerns for local environment in which officers can officials. Recently, the San Jose more effectively perform the job of Police Department teamed up keeping San Jose communities safe. with Feeney Wireless to design a When designing a system, local communications platform to enable officials chose to leverage a better ticketing processes, efficient CDMA2000 network because of reporting workflows and centralized its advanced security, ubiquitous and digitized access to substations. coverage and high bandwidth, which Previously, an in-vehicle laptop was allows them to perform a range of The City of San Jose connected to a mobile data terminal critical functions in the field. As the selected CDMA due to by a Radio Data Link Access Protocol SJPD continues to modernize its its advanced security, (RD-LAP). Officers found that the operations and looks to implement ubiquitous coverage RD-LAP could not provide a reliable wireless solutions to include and high bandwidth connection and negatively impacted automated field reports, e-citations, the performance of the department. mobile fingerprinting and a By enabling 3G connectivity and comprehensive records management introducing new devices, including a system, CDMA will continue to play a 3G WWAN router, officers can now key role in the safety and security of download data from the field in real- the San Jose community. time. Consumer Electronics With a CDMA2000-enabled mobile In a connected world rife with office, officers can submit citations smartphones and tablets, we and gain immediate access to critical often take for granted the ability law enforcement data, including to easily interact with our devices fingerprints and mug shots, directly or to connect with loved ones. from their vehicles. The onboard Instantaneous video conferencing, systems also track and report emails, and text messages are GPS information for more efficient becoming a preferred means of dispatches. The department is able communication for some – which can to configure, update, and manage the leave others out. Those who don’t devices remotely over a CDMA2000 email or text message, including network, while reducing downtime for the aging population, rely on the maintenance, and because they’re telephone and mail, in addition to spending less time at the department, personal visits, to communicate. A officers can spend more time in simple device has been created to the field. All of these capabilities help bridge this gap: messageQube. provide the efficiencies and cost

messageQube allows users to send react immediately. When such short notes and pictures directly public services content is printed on to a recipient with a messageQube the messageQube, it includes the device. Recipients immediately message from the sender, a picture receive a printout of the text message and a map with a pin drop indicating or picture sent from a cellphone or the incident location. Also printed is the time and date when the picture was taken along with when the message was sent.

In healthcare, messageQube is being used to help monitor and report on the condition of Congestive Heart Failure (CHF) patients. Within the hospital, the messageQube acts as a messageQube Device communication hub by coordinating Superior location- readings from Bluetooth-enabled tablet. A wide range of messages, awareness, secure weight scales and blood pressure from loving notes, to pictures of monitors – which, in turn, allows channels and coverage family, to simple reminders and patients to communicate daily made CDMA ideal birthday/anniversary greetings, can measurements to physicians. be easily received by those who for messageQube otherwise would have not been able CDMA2000 technology, with its to. superior location-awareness, secure channels and coverage In addition to technically-challenged area, makes an ideal network for and aging populations, other users messageQube. From this simple include Parkinson’s, Alzheimer’s device and the robust network it and ALS patients who have reached operates on, communicating with a stage in their disease when they loved ones, public safety, education are not able to use other forms of and healthcare has been enhanced, communication without assistance. allowing patients and citizens to messageQube is also finding more easily communicate with those applications in public safety, around them. education and healthcare. A growing number of police departments and Industrial Manufacturing schools around America are using With large, complex, costly and messageQube to give a “voice” to the mission-critical devices, industrial deaf and hard of hearing population. manufacturing is an ideal market for It also enables other citizens and a smart services solution to remotely whistleblowers to easily communicate connect to their products. This public safety and public works allows them to identify, diagnose, infrastructure information, including and resolve issues — ideally, incidents, to leadership who can before their customers become

aware of problems — without GERBERconnect enables Gerber’s dispatching technicians on-site cutters to “call home” when and improving first-time fix rates potential errors are sensed. Gerber when on-site visits are required. technicians then remotely and Preventative maintenance such securely access a customer’s system as this enables lower total cost of for further proactive fault detection ownership by requiring less labor and troubleshooting. The system content, reducing waste, improving indicates the health of the cutting the quality and repeatability of their machines and generates warnings if output, and increasing throughput. the machine slips from its prescribed Preventative maintenance also data ranges. The system log file helps automate and significantly also generates errors in real-time for improve the efficiency of information accurate record-keeping and quick Gerber Technology management, product design and response rates. has increased development, pre-production and “We often know about problems customer satisfaction, production processes. before our customers do,” says decreased downtime, Gerber Technology, a business unit Mark Hessinger, Executive Director and prepared for the of Gerber Scientific, Inc., develops of Worldwide Service. “In other succession of a highly and manufactures integrated instances, as we notice customers skilled workforce software and hardware automation struggling with the system, we call systems for the sewn products the operators and help them through approaching retirement and flexible materials industries. resolving the issue remotely.” Gerber age These complex systems are critical Technology is reducing truck rolls by in the manufacturing of a range of resolving issues remotely, ensuring consumer products, including auto first-time fixes when an on-site visit upholstery, aerospace, transportation is required, and regionalizing and interiors, furniture, composites, and reducing overall inventory levels— industrial fabrics. while still ensuring next-day part delivery. By leveraging an Axeda platform, Gerber has created GERBERconnect “By reviewing our customer — a solution that allows them to satisfaction surveys, we have address three primary pieces of become more proactive and have the aftermarket service puzzle: focused on improving our first-time increase customer satisfaction fix rate,” explains Hessinger. “That through proactive support, optimize will improve customer satisfaction by spare parts inventory across global getting them higher uptime and, in distribution centers, and prepare for return, reduce our service costs with the succession of a highly skilled fewer repeat visits.” workforce approaching retirement As Gerber collects data from their age. products deployed across the globe,

they can easily track consumables With SENSUSS, a body area network and parts to automate consumable with multiple sensors performing resupply, optimize spare parts multiple functions, and a Eurotech inventory, and enable Gerber to cloud platform, family members, provide truly preventive maintenance. coaches and sports medicine practitioners can have real-time GERBERconnect also helps the information on an athlete’s condition, company begin addressing the ultimately leading to safer and longer aging workforce issue by capturing careers for amateur and professional SENSUSS enables and retaining knowledge. By athletes. better organizing information about real-time monitoring of diagnosing and fixing the machines, Using the Eurotech cloud platform, critical bodily functions Gerber has increased their ability to SENSUSS designed a solution that effectively train distributors and newly only highlights hits that might require hired technicians. As the existing additional triage. If an athlete does maintenance workforce retires, it is incur a potentially concussive hit, the very important that Gerber retain SENSUSS application will show the the knowledge and expertise these location and symptom chart for the individuals have. specific athlete. The application will also recommend next steps based E-Health on the severity of the impact, such In the healthcare market, patients as a visit to the doctor or emergency and doctors are looking for ways to room. Because SENSUSS leverages improve care and monitoring while a CDMA2000 network, alerts can be maintaining quality of life. This means seamlessly delivered via email, text, a search for less intrusive and more or phone, and the product itself turns accurate ways to monitor individuals, red when activated. while allowing them to continue Users can even remotely customize participating in the activities they the alert levels for individual athletes. enjoy. SENSUSS is achieving impressive Through a CDMA2000 Head injuries and concussions can accuracy with the new system, network, critical alerts damage the brain and, if mistreated reporting a near perfect positive or ignored, these injuries can notification rate. “If an athlete has can be delivered compound, causing complications sustained a forceful hit, we are seamlessly via email, that can impair basic brain functions. 99 percent effective in reporting text, or phone In contact sports, mild concussions a problem,” said SENSUSS Chief are an everyday occurrence, but Engineer, Jeff Lawson. coaches, athletes and trainers are SENSUSS has launched the often left to highly subjective tests to SENSUSS Impact device (the “S3”) diagnose the extent of damage that to a worldwide market, selling directly occurs. to consumers and also working on deals with sports leagues that will require athletes to use the sensors.

CDMA Ecosystem and $21, respectively, followed by CDMA2000 1X and WiMax, which Within the incredibly rich and diverse are both at $22. WCDMA and EV-DO ecosystem of M2M suppliers and will also drop in price and, given their service providers, a wide array of functionality and scale, will be some companies has congregated around of the most cost-efficient cellular CDMA technology as a means modules on the market, especially for of providing always-on, real-time M2M applications. connectivity to machines, devices and people. These players perform a Other Hardware broad range of functions necessary Not all smart device hardware is for M2M solution implementation, embedded the way modules are. For from basic enablement and network devices that have already been built connectivity to device management or are already in service, many end- and other value-added services. users enable their M2M systems/ devices with external hardware such Modules & Components as modems and routers. This type A wide array of Modules are the fundamental of hardware enablement has seen companies has building block of most M2M strong uptake in fleet management congregated around applications, providing the basic solutions, public infrastructure CDMA technology layer of connectivity for any device projects, and retail/point-of-sale or machine that requires networking. applications. In the past few years, the market for CDMA modules has been MNOs characterized by falling prices. Mobile Network Operators (MNOs), Increased commoditization and or carriers, provide backbone new competition from players in connectivity to many M2M solutions. the Asia-Pacific region are driving In the past several years, carriers prices lower and lower. This has have taken to M2M in a major way. As been a boon to end-users of CDMA cell phone markets across the globe in M2M applications, and low cost- reach saturation, MNOs are looking per-byte data rates further decrease for new revenue streams. Verizon total cost of ownership for a given purchasing nPhase (after a joint solution. As module pricing is a venture with Qualcomm), and Sprint critical decision-making factor, we reorganizing its legacy M2M business have outlined expected prices in into its Emerging Solutions Group, Appendix A: Module Pricing Forecast. are strong signals that network In the next few years, we expect operators are increasingly serious advancements in technology and about the opportunity. This shift in manufacturing to drive costs down focus is coupled with a lowering of overall, with GSM and EDGE being monthly fees for cellular devices as the most cost competitive at $9 carriers look to increase the volume of devices on their networks.

Globally, MNOs are actively providing sor/device data into a language that M2M services as well. In Europe, is meaningful for people. KPN launched a CDMA450 network As solution providers seek to make with the sole purpose of serving the M2M applications more functional M2M market. In Asia, China Telecom and feature-rich, platform providers is promoting several services aimed are expanding the scope and capa- at addressing Internet of Things bilities of their software. Platform initiatives supported by the Chinese providers are transitioning from offer- government. In Latin America, ing simple device management and Iusacell has been directly offering connectivity services to more robust M2M-based home security services offerings. Service delivery features, to its customers. CDMA is enabling such as monitoring, diagnostics, re- a host of innovative MVNOs mote control, security management, application delivery, and performance services that increase Mobile Virtual Network Operators optimization, are increasingly being (MVNOs) are value-added resellers capabilities across offered by platform providers. of network space. Many M2M the value chain applications do not require much Some providers are taking it one step bandwidth, holding down the amount further by offering solution delivery MNOs and MVNOs can charge for features such as managed services, data rates. Accordingly, in order to workflow modeling, systems integra- raise revenues, MVNOs are moving tion, data orchestration, and location- away from a model of strictly reselling based services. network space towards offering device management platforms. These Solution Providers platforms provide much needed Whereas the ecosystem described device management and connection thus far has been highly horizontal, services for end-users including solution providers tend to focus configuration services, provisioning, on tailored applications for vertical SIM management, reporting, markets. This focus creates a diverse billing, and trouble shooting. Many environment across diverse verticals. MVNOs are either creating their own Players like SENSUSS provide re- platforms or partnering with existing mote solutions that save and improve platform players to bring these lives, while messageQube allows us- services under their umbrella. ers to communicate more effectively. The market for the services offered Application Platforms by these solution providers is grow- Platform providers build software that ing significantly and, as enablement collects, aggregates and presents costs fall, more and more end-users data in a useful way. Platforms are are realizing the benefits of M2M the operating systems for M2M that solutions. provide back-end translation of sen-

Blue Tree Wireless Crossbridge FourFaith Trilliant AnyDATA Solutions Ctek Asia Wyless Cinterion Chealcomm Telco Airbiquity RF Top nPhase Avnet Monolithics Global USA Mobility KORE M2M Datasmart Orbcomm Gemalto Telematics Bell Mobility Laird Precidia Janus Remote Technologies Aeris Numerex Sprint DataRemote China Telecom ST Cisco Digi Microelectronics NexAira Iusacell Multi-Tech MVNOs Telit DataOnline Sixnet Tata Teleservices ZTE Verizon Huawei Augusta Avid Wireless WinSystems Systems MNOs Eurotech KPN Reliance Lantronix KDDI E-Lins CDMA Giesecke & Novatel Qualcomm FreightWatch Eco Devrient Insignia Connectivity System OnTerra Quatech Korea Smart CalAmp SENA GoldenTee LifeWatch Sierra Card Corp. Wireless Instantel Helicomm MicroLogica Advantech Platforms M3 Mobile MedPA Fusion Motorola Huawei Motorola Solutions Microspace Wireless CardioNet Fortel Communications Forwell Ambiant Corp. Nimble Qualcomm Wireless Wireless MobileStack Navman nPhase DriveCam Esprida Wireless Digital Payment Mobile Electron Technologies Ford Ericsson Taoglas Atos Origin American Trash Airbiquity Management Ventus WirelessCar Networks Airvana Echelon Walsh Wireless SensorLogic OmniLink Microsoft Redbox GE Asset Safefreight Consert Red Bend Reinauer Apprize Axeda Intelligence Xata Software Maritime Sony Cadec Global RACO Alcatel-Lucent Industries C&K Trucking OnStar ZTE Bug Labs Astral Communications Novotech Tattletale DR DAS M2M ;Trimble MedApps Communications

Impact of LTE use-cases, there is ample room LTE (Long Term Evolution), also for collaboration and a cohesive known as “4G”, is a new standard existence. for WWAN communication. 4G is Most M2M applications require low- an augmentation to the 3G network bit rate connectivity and CDMA2000 technologies, increasing the capacity 1X is optimized for low-bandwidth and speed using a different radio communications — ideal for voice interface together with core network 4G/LTE and and data. For applications that improvements. 4G, and its upcoming require streaming data, and therefore EV-DO will specialize revision, 4G Advanced, support higher bandwidth, 4G and EV-DO in high-bandwidth, seamless handovers for both voice are better suited. 4G and EV-DO are non-mission critical and data to cell towers with network optimized for smartphones, tablets technologies including GSM, UMTS applications, while and niche M2M services — as these and CDMA2000. CDMA2000 will enable opportunities evolve, so too will With higher peak bandwidth and the technology. 4G and EV-DO will an ever-expanding increased spectrum flexibility, it could continue to specialize in infotainment, list of M2M services be easy to incorrectly portray ideal location-awareness and other high- applications for this technology. 4G data applications. CDMA2000 will will soon be a great technology for continue to focus on M2M, remote high-bandwidth applications and and mission-critical applications use-cases, for example, infotainment where a secure connection is systems that require streaming video. mandatory. However, high bandwidth scenarios often force a host of supplementary CDMA2000 1X requirements, including increased Revision F energy consumption and, especially The CDMA Development Group when deployed at scale, increased (CDG) is responsible for the edge and centralized processing success of CDMA technology and capacity. For these applications understands the importance of and use-cases, Wi-Fi technology optimizing the technology for the has been deployed in a wide range most viable applications. To this of scenarios, from the home router end, CDMA2000 1X Rev. F was to the Wi-Fi-enabled charter bus, developed. and 4G can certainly help extend This new revision to the standards this reach by enabling Wi-Fi routers is a software upgrade to existing through a gateway. We believe that CDMA2000 networks and, like as Wi-Fi modules become cheaper, all CDMA revisions, is backward energy efficiency increases and die- compatible. This allows the size decreases, 4G will be competing technology to seamlessly leverage with Wi-Fi and CDMA2000 at both the existing CDMA infrastructure ends of the spectrum, but in all

and coverage (i.e., cell towers) and Consumers are beginning to communicate with all of the installed demand real-time interactions and modules currently in market. information, and more companies are considering cellular M2M solutions CDMA2000 1X Rev. F was designed as they attempt to meet these needs. to reduce network signaling load Businesses looking to provide and the amount of data transferred, services and solutions for smart increase M2M module battery life devices, M2M, and the connected and network connection capacity, world in general are advised to and improve M2M module position consider the following aspects: location accuracy — all of which are critical components for M2M service Uptime & Reliability Are Necessary delivery. Nothing frustrates end-users more than service outages. Societies The benefits of CDMA2000 1X Rev. F today function in real-time and want extend the functionality of CDMA2000 on-demand, immediate access to 1X and CDMA2000 1X Advanced by data, goods, and services. Outages increasing the bit rate to 317 kbps, and loss of information go beyond decreasing connection times and frustration for the end-user though; decreasing power consumption. in today’s world it is very likely these Given that the majority of M2M types of events will cost the user modules are battery-dependent, time, money and even their health. power consumption is a primary The end result is a double-whammy concern and with the comprehensive of lost revenue both for the business coverage CDMA has, CDMA2000 1X and the customer. CDMA networks, Rev. F makes applications in rural or however, eliminate this problem by hard-to-reach areas more realistic providing “always-on” connectivity, because administrators and engineers thus ensuring reliability and uptime will not have to access the modules for M2M applications. as often to change a battery. Take Security Seriously All of these enhancements are Computer security firm McAfee ideal for M2M service delivery and estimated that data theft cost the with continued investments and world over $1 trillion last year. Worse CDMA2000 1X Rev. F is improvements, we believe CDMA can yet, typical cleanup costs after data optimized to deliver M2M truly be the leading technology for the breaches ranged from a few million services Internet of Things. dollars to several hundred million dollars per company. Taking the Recommendations steps to secure M2M applications up front will be critical for solution Businesses and individuals alike are providers. Luckily, CDMA networks becoming increasingly dependent offer one of the highest levels of on technology in their daily lives. security of any cellular technology.

Alliances, Partnerships, and ongoing management, network Ecosystems Help Foster Success connectivity, and certification costs. The dynamics surrounding connected When calculating the ROI and products and services are complex. economic benefits of M2M solutions, Oftentimes enablement services, businesses must take these factors engineering functions, systems into account. The low cost to run integration, network connectivity, CDMA M2M applications ensures device/solution management, and a low total cost of ownership for application delivery features are solution providers. all required to effectively develop Plan for Mobility and implement the end product Businesses and users expect their CDMA technology or service. More often than not, devices, assets, and services to work these factors vary by vertical continues to thrive wherever they go. With coverage in market as well. Rather than trying because of its over 121 countries and territories, to address all of these functions robust ecosystem CDMA2000 networks provide the individually, companies should service needed to address today’s with hundreds of consider alliances with partners that mobile culture. specialists and potential have specialized expertise in the markets chosen. Ultimately, this will partners available reduce the burden on the solution provider and raise the chances of Conclusion success. Companies developing Machine-To-Machine communication M2M applications will likely require represents a market opportunity some form of support down the road of enormous scale. M2M is the and would be wise to consider the phenomena where the world as “richness” of the ecosystem. The a whole becomes increasingly CDMA ecosystem consists of several connected and functions in a manner hundred companies that can help where machines, people, businesses, any business achieve their goals (See sensors, devices, and infrastructure Appendix D). all interact and respond to each other in real-time. Although there Don’t Forget Total Cost of are several connectivity standards Ownership capable of enabling M2M solutions, Companies often get caught in the not all of them are truly able to trap of only thinking about the up- meet the needs of the previously front costs associated with building named groups. That said, cellular M2M solutions. Unfortunately, technologies and their robust this leaves out any ongoing costs features have certainly shown their necessary to run the solution. adeptness at addressing the M2M Sometimes, these costs are a big market. CDMA2000 in particular, surprise for the solution provider. has proven that its capabilities CDMA technologies offer low are extremely well-suited for M2M applications. Harbor Research © 2013 Harbor Research, Inc. 24 All rights reserved Smart Devices and Services CDMA2000 1X

CDMA technologies offer proven security and privacy, high bandwidth, low latency, spectral efficiency, ubiquitous coverage, energy efficiency, network reliability, and a low total cost of ownership. Additionally, the ecosystem that supports CDMA is large and diverse, meaning that alliances and partnerships are virtually always available to help solution providers accomplish their goals. Given these qualities, it is hardly a surprise that CDMA2000 has become a leading network choice for M2M service providers. Today, CDMA2000 M2M applications can be found in North and South America, Europe, and Asia/Pacific; as well as in industries such as Energy, Transportation, Healthcare, Retail, Finance, Industrial, and Security/Military.

The future prospects for CDMA technology use in M2M applications are very bright and as the M2M and Smart Services opportunity continues to expand, so too will the CDMA ecosystem.

About Harbor Research:

Founded in 1984, Harbor Research Inc. has more than twenty five years experience in providing strategic consulting and research services that enable our clients to understand and capitalize on emergent and disruptive opportunities driven by information and communications technology. The firm has established a unique competence in developing business models and strategy for the convergence of pervasive computing, global networking and smart systems.

Contact Harbor at

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Cellular Network Module Pricing CAGR 2013 2014 2015 2016

CDMA2000 1X $32 $30 $25 $20 -15% CDMA EV-DO $44 $39 $37 $35 -7%

EDGE $21 $20 $18 $17 -7%

GSM/GPRS $13 $12 $11 $10 -8%

LTE $85 $75 $62 $51 -16% WCDMA $40 $35 $30 $27 -12% WiMAX $31 $26 $22 $19 -15%

$90 $80 $70 CDMA2000 1X $60 CDMA EV-DO $50 EDGE $40 GSM/GPRS $30 LTE $20 WCDMA $10 WiMAX $0 2013 2014 2015 2016

Harbor Research © 2013 Harbor Research, Inc. 26 All rights reserved Appendix B - CDMA2000 Advantages Business Benefit Description Enhanced Data sent over CDMA2000 networks is encrypted in random digital sequence, Security reducing the risk of interception, jamming and fraud. CDMA2000 supports the IPV4/6 IPSec suite of security protocols. Network CDMA2000’s wide coverage range and use of “soft handoffs” result in uninterrupted Reliability connectivity for voice, data and video. 1X Rev. F also increases access channel dimensions, which reduces the risk of “channel collisions.” Ubiquitous In addition to being the largest network standard in North America, CDMA2000 offers Coverage excellent coverage in rural and hard to reach places like deep within buildings. Network CDMA2000 is optimized to provide the most capacity per Hertz of spectrum, allowing Capacity more subscribers and devices to connect to the network. 1X Rev. F also allows M2M applications to store overhead messages and register less frequently than voice and data, which decreases the network load.

Network Network identifies and segregates small data packets to transfer them over the sig- Speed naling channel (DoS) and it uses modem transmit chain only when needed - which frees up the channels. Fast Setup With 1X Rev. F, nodes can circumvent the channel access procedure, allowing them to quickly establish connections for faster connections and module access. Better Separate access control of modules enables end-users and network providers to Network treat M2M devices differently, and allocate resources more effectively based on con- Control nection type - making effective use of network capacity and energy. Energy CDMA2000 radios implement several paging techniques and sleep modes to con- Efficiency sume less power, making the modules smaller and extending their battery life. Low Total CDMA2000 networks offer a low cost-per-byte, making it a less expensive option for Cost of Owner- many applications - particularly those that require significant bandwidth. ship Low CDMA2000’s low latency, high bandwidth solution makes it ideally suited to enable Latency more complex applications that require real-time updates. Future CDMA2000 technology is “backward-compatible” so any new standards released are Proof compatible with legacy protocols, avoiding obsolescence and ensuring the longevity of applications. Accurate Posi- CDMA2000 M2M devices can be accurately located (geo-tagged), tracked and plot- tion Location ted using assisted GPS (A-GPS). IP-based CDMA2000 M2M devices have built-in TCP/IP and PPP protocols. Users can select Packet static or dynamic IP addressing to ensure continuous network connectivity and secure firewall access. Global CDMA2000 networks are available in 121 countries and territories enabling mobile Roaming M2M applications to roam across the world. Private Network Robust, secure virtual private networking (VPN) solutions are available to enhance Options security and isolate M2M data traffic from general voice subscribers.

Harbor Research © 2013 Harbor Research, Inc. 27 All rights reserved Appendix C - CDMA2000 Case Studies Case Study Vertical Market(s) Application Companies Involved E-Reader, Mobile E-Readers Consumer Electronics nPhase, iRex Content Delivery CardioNet Healthcare Cardiac Monitoring CardioNet, nPhase, Sprint Fleet Management, American Trash Management, Trash Management Transportation Trash Collection Kore Telematics, Aeris Smart Grid Energy Smart Grid ABB, nPhase, Verizon Monitoring

DriveCam Automotive Telematics Telematics, Monitoring DriveCam, Sprint

Facility/Asset/ Omnilink Asset Monitoring Omnilink, Sprint Resource Monitoring

Home Security IusaCam Security & Monitoring Iusacell & Monitoring

OnStar Automotive Telematics Telematics, Infotainment OnStar, Verizon

Lifewatch Healthcare Cardiac Monitoring Lifewatch, Verizon

Sempra Energy Energy Smart Grid Sempra Energy, Verizon, nPhase Smart Grid

GoldenTee Live Retail Interactive Video Games GoldenTee, Sprint

Wind Farm Facility / Asset Energy Asset Monitoring Digi, Atmospheric Systems Corp. Monitoring Monitoring

Vending Machine Redbox Retail Redbox, Verizon Monitoring & Mgmt.

Digital Signage Retail Digital Signage Aeris, Microspace CC Management

Facility/Asset/ Norse Pipeline Pipeline Monitoring Sierra Wireless, Mobile Electron Resource Monitoring

Intelligent Traffic Interactive Traffic Sign Transportation Fortel Traffic, Sierra Wireless Systems Management

Water Smart Facility/Asset/ Smart Metering Numerex, ET Water Metering Resource Monitoring

Construction Site Facility/Asset/ Building/Structure Sierra Wireless, Instatel Monitoring Resource Monitoring Monitoring

Facility/Asset/ Wind Monitoring Wind/Weather Monitoring Sierra Wireless, RES, Mobile Electron Resource Monitoring

Harbor Research © 2013 Harbor Research, Inc. 28 All rights reserved Appendix C - CDMA2000 Case Studies Case Study Vertical Market(s) Application Companies Involved Facility/Asset/ Animal Tracking Animal Monitoring Digi, Detect Resource Monitoring

Parking Meter Digital Payment Technologies, UC Santa Retail POS Monitoring Management Barbara, Sierra Wireless

Environmental Facility/Asset/ Building/Structure Digi, DR DAS Monitoring Resource Monitoring Monitoring

Facility/Asset/ Agriculture Monitoring Agriculture Monitoring Sierra Wireless, Grape Networks Resource Monitoring

Onboard Computers Transportation Fleet Management Aeris, Cadec Global

Route Tracking Transportation Fleet Management Sprint, Xata

King Solutions Transportation Fleet Management GE Equipment Services, King Solutions Trailer Tracking

TMS Logistics Transportation Fleet Management GE Equipment Services, TMS Logistics Truck Tracking

New Hampshire Kore Telematics, Navman Transportation Fleet Management School Fleet Wireless, NH School Districts

Fire Department Computer Aided Ventura County Fire Department, Sierra Security Dispatching Dispatching Wireless

Structural Integrity Buildings Vibration Monitoring Instantel, Sierra Wireless

Medical Equipment Philips, Astral Communications, Sierra Mobile Healthcare Healthcare Monitoring Wireless

Sierra Wireless, Center for Severe Storm Tracking Transportation GPS Tracking Weather Tracking

Forklift Dealer Fleet OnTerra, Microsoft, Malin, Sierra Transportation Fleet Management Management Wireless

Maritime Fleet Reinauer Maritime Group, Dell, Verizon, Transportation Fleet Management Management Sierra Wireless

Phillips County Real-Time Crime Sprint, Phillips County Sherrif’s Dept., Security Sheriff’s Department Reporting Sierra Wireless

Chick-fil-A Registers Retail Wireless POS Chick-fil-A, Sprint, Sierra Wireless

Interactive Digital Jukebox Monitoring Retail Ecast, Sierra Wireless Displays

Intelligent ATMs Retail ATM Monitoring Ventus Networks, Sierra Wireless

Smart Vending ZoomSystems, Sierra Wireless, Sony, Wireless Vending Retail Machines Motorola

Taxi Payment Retail Wireless POS Korea Smart Card Corp., Telit

Consumer/ Industrial PDAs Mobile Computing Mobilecompia, Telit Professional

3Soft Vehicle Transportation Fleet Management 3Soft, Telit Management

Connected Homes/ SmartLabs Monitor Energy Use SmartLabs, Sprint Energy

Usage-Based Consumer Telematics Asset Monitoring CalAmp, Sprint Insurance

San Jose Police San Jose Police Department, Feeney Transportation Remote Offices Department Wireless, Sprint

Consumer Communica- messageQube Consumer Electronics tion Technology, Health messageQube, Sprint Monitoring

Industrial Remote Monitoring, GERBERconnect Gerber Technology, Axeda Manufacturing Predictive Maintenance

Remote Patient Body Area Network E-Health Sensuss, Eurotech Monitoring

Harbor Research © 2013 Harbor Research, Inc. 30 All rights reserved Appendix D - CDMA2000 Ecosystem Information Company Segment Website Phone Advantech Connectivity www.advantech.com 888.576.9668 Airbiquity Connectivity www.airbiquity.com 206.219.2700 AnyDATA Connectivity www.anydata.com 949.900.6040 Asia Telco Connectivity www.asiatelco.com +86.21.51688806 Augusta Systems (Intergraph) Connectivity www.intergraph.com/augusta/ 256.730.2000 Avid Wireless Connectivity www.avidwireless.com 817.510.5440 Avnet Connectivity www.avnet.com 800.409.1483 Blue Tree Wireless (SixNet) Connectivity www.sixnet.com 518.877.5173 CalAmp Connectivity www.calamp.com 805.987.9000 Cinterion (Gemalto) Connectivity www.cinterion.com +49.89.21029.9000 Cisco Connectivity www.cisco.com 800.553.6387 Ctek Connectivity www.ctekproducts.com 310.241.2973 DataOnline Connectivity www.dataonline.com 908.464.2646 DataRemote Connectivity www.dataremote.com 805.339.9739 Digi International Connectivity www.digi.com 952.912.3444 E-Lins Connectivity www.szelins.com +86.755.33231620 Eurotech Connectivity www.eurotech-inc.com 301.490.4007 Forwell Wireless Connectivity www.forwellwireless.com +86.755.88839200 FourFaith Connectivity www.four-faith.com +86.592.6300326 Fusion Wireless (uBlox) Connectivity www.fusionwirelesscorp.com 858.847.9611 Gemalto Connectivity www.gemalto.com 877.39 0.7972 Helicomm Connectivity www.helicomm.com 858.638.0850 Huawei Connectivity www.huawei.com +86.755.28780808 Janus Remote Connectivity www.janus-rc.com 630.499.2121 Laird Technologies Connectivity www.lairdtech.com 800.492.2320 Lantronix Connectivity www.lantronix.com 800.526.8766 Motorola Connectivity www.motorola.com 847.576.5000 Multi-Tech Connectivity www.multitech.com 800.328.9717 Nimble Wireless Connectivity www.nimblewireless.com 858.935.7381 Novatel Wireless Connectivity www.novatelwireless.com 858.812.3400 Precidia Connectivity www.precidia.com 613.592.7557

Harbor Research © 2013 Harbor Research, Inc. 31 All rights reserved AppendixAppendix D D - -CDMA2000 CDMA2000 Ecosystem Ecosystem Information Information Company Segment Website Phone Qualcomm Connectivity www.qualcomm.com 858.587.1121 Quatech (B&B Electronics) Connectivity www.quatech.com 330.655.9000 RF Monolithics Connectivity www.rfm.com 972.233.2903 SENA Technologies Connectivity www.sena.com 408.448.1997 Sierra Wireless Connectivity www.sierrawireless.com 604.231.1100 SIMCom Wireless Solutions Connectivity www.sim.com +86.21.3252.3300 Sixnet Connectivity www.sixnet.com 518.877.5173 ST Microelectronics Connectivity www.st.com +44.22.929.29.29 Taoglas Connectivity www.taoglas.com 353.53.916.9500 Telit Connectivity www.telit.com 888.846.9773 Top Global Connectivity www.topglobalusa.com 949.528.3898 Trilliant Connectivity www.trilliantinc.com 650.204.5050 uBlox Connectivity www.u-blox.com +41.44.7227444 WinSystems Connectivity www.winsystems.com 817. 274.7553 ZTE Connectivity www.zte.com.cn +86.755.26770000 Bell Mobility MNO www.bell.ca 905.282.4202 China Telecom MNO www.chinatelecom-h.com 852.288 Iusacell MNO www.iusacell.com.mx +52.55.51094400 KDDI MNO www.au.kddi.com +81.3.66780712 KPN MNO www.kpn.com +31.70.3434343 Reliance Communications MNO www.rcom.co.in +91.22.30373333 www.sprint.com/wholesale/ Sprint MNO 888.211.4727 m2m.shtml Tata Teleservices MNO www.tataindicom.com +91.22.66671414 Verizon MNO www.verizon.com 212.395.1000 Aeris MVNO www.aeris.net 888.462.3747 Chealcomm MVNO www.chealcomm.jp +03.6272.6790 Crossbridge Solutions MVNO www.crossbridgesolutions.com 847.478.4000 KORE Telematics MVNO www.koretelematics.com 877.710.4028 M2M Datasmart MVNO www.m2mdatasmart.com 858.350.5855 Numerex MVNO www.numerex.com 770.693.5950 Orbcomm MVNO www.orbcomm.com 703.433.6300 USA Mobility MVNO www.usamobility.com 888.576.1348

Harbor Research © 2013 Harbor Research, Inc. 32 All rights reserved Appendix D - CDMA2000 Ecosystem Information Company Segment Website Phone Wyless MVNO www.wyless.com 617.949.8900 Airvana Platform www.airvana.com 866.344.7437 Alcatel-Lucent Platform www.alcatel-lucent.com 800.252.2835 Apprize (Inilex) Platform www.apprizem2m.com 480.889.5676 Atos Origin Platform www.atosorigin.com +44.20.7830.4233 Axeda Platform www.axeda.com 508.337.9200 Bug Labs Platform www.buglabs.net 866.928.4522 Ericsson Platform www.ericsson.com +46.10.719.00.00 Esprida Platform www.esprida.com 877. 267.4968 Huawei Platform www.huawei.com +86.755.28780808 I.D. Systems Platform www.id-systems.com 201.996.9000 Microsoft Platform www.microsoft.com 800.321.8552 MobileStack Platform www.mobilestack.com 925.463.4800 Motorola Platform www.motorola.com 847.576.5000 nPhase (Verizon) Platform www.nphasem2m.com 312.577.1650 Red Bend Software Platform www.redbend.com 781.890.2090 SensorLogic (Gemalto) Platform www.sensorlogic.com 617.910. 2185 ZTE Platform www.zte.com.cn +86.755.26770000 ABB Solution Provider www.abb.com +41.0.43.317.7111 Ambient Corporation Solution Provider www.ambientcorp.com 617.332.0004 American Trash Management Solution Provider www.trashmanage.com 800.488.7274 Astral Communications Solution Provider www.astralcomm.com 303.449.7820 C&K Trucking Solution Provider www.cktrucking.com 773.229.2200 Cadec Global Solution Provider www.cadec.com 603.688.1010 CardioNet Solution Provider www.cardionet.com 888.312.2328 Consert Solution Provider www.consert.com 919.855.1060 DeTect Solution Provider www.detect-inc.com 850.763.7200 Digital Payment Technologies Solution Provider www.digitalpaytech.com 888.687.6822 DR DAS Solution Provider www.dr-das.com 740.281.5820 DriveCam Solution Provider www.drivecam.com 858.430.4000 Echelon Solution Provider www.echelon.com 408.938.5200 Ericsson Solution Provider www.ericsson.com +446.10.719.00.00

Harbor Research © 2013 Harbor Research, Inc. 33 All rights reserved Appendix D - CDMA2000 Ecosystem Information Company Segment Website Phone Ford Solution Provider www.fordvehicles.com/sync 800.232.5952 Fortel Solution Provider www.forteltraffic.com 714.701.9800 FreightWatch Solution Provider www.freightsecurity.net 512.329.0292 Giesecke & Devrient Solution Provider www.gdai.com 703.480.2000 GoldenTee (LiveWire) Solution Provider www.goldentee.com 847.840.7027 Industrial Networking Solutions Solution Provider www.industrialnetworking.com 800.889.1461 Insignia (Best Buy) Solution Provider www.insigniaproducts.com 877.467.4289 Intstantel Solution Provider www.instantel.com 800.267.9111 Korea Smart Card Corp. Solution Provider www.tmoney.co.kr 1588.012 Lifewatch Solution Provider www.lifewatch.com 877.774.9846 M3 Mobile Solution Provider www.m3mobil.com.kr +82.2.2033.8170.80 EnerNOC Solution Provider www.enernoc.com 208.947.9500 MedApps (Alere) Solution Provider www.alere.com 877.441.7440 MedPA Solution Provider www.medpa.or.jp +81.3.6809.6708 MicroLogica Solution Provider www.micrologica.com +56.2.7350041 Mobile Electron Solution Provider www.mobileelectron.com 813.649.8221 Navman Wireless Solution Provider www.navmanwireless.com 866.527.9896 Novotech Solution Provider www.novotech.com 800.268.8628 OmniLink Solution Provider www.omnilink.com 678.624.5900 OnStar Solution Provider www.onstar.com 248.588.6050 OnTerra Solution Provider www.onterrasys.com 720.836.7201 Qualcomm Solution Provider www.qualcomm.com 858.587.1121 RACO Industries Solution Provider www.racoindustries.com 800.446.1991 Redbox Solution Provider www.redbox.com 866.733.2693 Reinauer Maritime Solution Provider www.reinauer.com 718.816.8167 Safefreight Solution Provider www.safefreight.com 780.421.9055 TattleTale Solution Provider www.tattletalealarm.com 888.835.5668 Trimble Solution Provider www.trimble.com 408.481.8000 Ventus Networks Solution Provider www.ventusnetworks.com 866.576.0457 Walsh Wireless (Modus) Solution Provider www.walshwireless.com 925.328.1143 Xata Solution Provider www.xata.com 800.745.9282