North American GSM Transition Guide

What You Need to Know & Key Dates Avoid Any Disruption to Your M2M Network Connectivity his document is intended to present the facts, frequency is the same for new network technology as we know them, of the impending North so to add bandwidth and capacity for new devices, TAmerican 2G GSM sunset, the options for those older network technology must be dismantled to impacted and how KORE can help. accommodate the new. The bottom line is that the spectrum currently utilized by operators to deliver What is Happening? GPRS can provide exponential bandwidth gains for LTE. AT&T has announced that it will shut-down the 2G GSM (GPRS/Edge) Network by January 1, 2017. Figure 1: Historical GSM North American Spectrum AT&T has also announced that as of April 1, 2014, no Allocation from 2G to 3 & Based on Industry new 2G activations will be allowed on their network. Milestones AT&T will allow reactivation of units activated prior to April 1, 2014.

There are very select areas where AT&T has already shut down 2G service. Also, the AT&T Network is comprised of 30 partners and there have been a few instances where their roaming partners no longer offer 2G service. We expect a certain level of degradation of 2G services leading up to the turn- down on January 1, 2017. The AT&T 2G Network, even with these changes, is the most reliable and extensive GPRS Network available and that is likely to continue through 2016. Why is this Happening? In the United States and North America, wireless spectrum is highly regulated by governing entities, is auctioned off for usage rights and is therefore a finite and valuable commodity. As rising consumer demands for smart phones and tablet devices continue to consume an increasingly large amount of bandwidth and as the number and usage of these devices proliferate, network operators are forced to upgrade their networks to meet these increasing demands for bandwidth. As a consequence, combined with the fact that fewer consumers use 2G technology, network operators such as AT&T have made a conscious business decision to decommission these legacy networks. The spectrum

Information contained in this document is based on factual Information researched through multiple sources, both public and private. KORE represents no warranty and assumes no responsibility nor liability for the consequences of use of such information, nor for any infringement of third party intellectual property rights which may result from its use. According to AT&T, “a generates 24 Transition Options times the mobile data traffic of a conventional wireless phone, and the explosively popular iPad and There are four transition options for M2M customers similar tablet devices can generate traffic comparable currently using AT&T’s 2G GSM services: to or even greater than a smartphone. AT&T’s mobile data volumes surged by a staggering 8,000% from 2007 to 2010, and as a result, AT&T faces network capacity constraints more severe than those of any other wireless provider.” Figure 2: Bandwidth Performance Comparisons

KORE helps you find the BEST path 1. Upgrade to the AT&T GSM Networks and continue utilizing AT&T

2. Switch to the T-Mobile 2G GSM Network, no change in device hardware

3. Switch to a 2G GSM provider who offers both AT&T and T-Mobile and benefit from both networks until 2017 and T-Mobile thereafter, no change in device hardware

4. Switch to Verizon 2G (1xRTT) CDMA

Which Option is Best for You? What Other North American 2G Service Coverage – Do you need coverage comparable to Providers are Saying: your current 2G deployment? Is your device mobile and does it allow for you to go without coverage for Rogers – says they will support 2G networks through short periods of time, i.e. store and forward? Do The End of 2G at AT&T, Connected 2018 (Source: you plan to deploy internationally? Does supporting World Magazine , August 8, 2012). CDMA and GSM make sense for your application for This does not mean Rogers will shut down their 2G coverage and future-proofing? Network after 2018, but that they are committing to keeping it available until at least the end of 2018.

“T-Mobile plans to sunset between two-thirds and three-quarters of its GSM channels in the PCS bands leaving only a modicum of 2G bandwidth left…to support basic data services for its machine- to-machine communications business.” (Source: T-Mobile pounds the first nail in 2G’s coffin, Kevin Fitchard, Gigacom, Feb 23, 2012) Figure 3: Coverage Varies – What Coverage Does • 2G CDMA (1xRTT) modules and device pricing has Your M2M Application Require? been coming down and is nearing parity with 2G GSM pricing. Prices range from $20 to $25 per AT&T 2G and 3G + T-Mobile 2G Roaming Partners device, subject to volume commitments.

• 3G GSM modules and devices are priced at a premium to 2G devices, but the costs are coming down considerably. Prices range from $25 to $35 per device, subject to volume commitments.

• 4G LTE price points continue to be significantly AT&T 2G + T-Mobile 2G Verizon 1xRTT higher compared to all other 2G and 3G alternatives. Prices range from $45 to $55 per device, subject to volume commitments.

Dual-mode CDMA & GSM modules are available Dual-mode offers superior coverage by being able to connect to the strongest network regardless of whether it is GSM or CDMA. This will also future proof your network choice against subsequent Certification Considerations network transitions. Companies seeking this flexibility to deploy multi-technology modules have Device life expectations – How long do you expect several leading manufacturers to choose from for this device to remain operational with connectivity to a combination GSM/HSPA+ and CDMA module, the M2M Network selected? including: Certification requirements – What are the • Gemalto’s PXS8 requirements needed to change devices or modules? • Sierra Wireless’s SL9090 Certification cost ranges and timelines vary so • Qualcomm’s Gobi 5000 you need to understand the processes, costs and expected lead times to determine what, if any, time • u-blox’s LISA-U2 to market implications. Other Considerations Certification timelines average 8 - 12 weeks for AT&T KORE has data pricing incentives for customers who and 6 - 8 weeks on Verizon when you partner with are facing this 2G transition. This pricing structure KORE to project manage your certification. can help to off-set some of the initial differences in Performance and Pricing Considerations hardware investments required over the lifetime of the device. Performance & speed – What are the requirements for the application or solution in terms of Selecting the Right Network Service Provider connectivity throughput, latency and speed? When shopping for alternatives or comparing to the Data plan pricing – How much data is expected to be status-quo, the following questions may serve as a consumed and what is the average price per KB, MB guide to making the right partnership decision for or GB needed to meet your business requirements? your company and assist you through this transition: Hardware Considerations What is the underlying network technology and what is the time horizon in terms of expectation for its • 2G GSM modules and devices are the most continued commercial availability? attractively priced. Prices range from $11 - $25 How much flexibility do they offer? per device, subject to volume commitments. • Are there multiple underlying networks available? How KORE can Help • Are they the “right” mix of operators to meet your geographic service needs KORE offers migration assistance, consulting, device certification services and financial incentives Are multiple technologies available? to assist in your efforts through the 2G transition What does the prospective partner provide in KORE has a proven track record with a 100% terms of M2M Network facilities and value-added success rate in helping customers successfully functionality? For example, geo-redundant data complete FCC, PTCRB and network carrier device centers with automatic error detection and self- certification, with over 1000 unique devices that healing capabilities? have been certified Do they offer a comprehensive device management KORE has pricing preference with test labs, platform including troubleshooting and cost controls? application development specialty companies and OEM device manufacturers and can consult with How flexible are their rating and tariff plans? Are you about your needs and put you in touch with they customized for M2M service delivery? To what one of our many eco-system partners who can degree can they customize rate plans based upon assist you. specific customer requirements? KORE at a Glance What go-to-market assistance can they provide? • Founded in 2003 • Network certification services? • Largest independent supplier of global • Hardware procurement programs? connectivity services with millions of devices • Marketing/promotion/PR/distribution assistance? activated on our network What partnerships and affiliations can they provide • Multi-technology and multi-operator to assist in your selection of hardware, systems partnerships include GSM, CDMA, LTE and integration, application development or lab testing? Satellite and relationships with Tier 1 Operators in North American and around the world What is their involvement in the standards-bodies in charge of selecting and enforcing industry standards • Longest standing M2M service provider on the around M2M technology standards? Board of the PTCRB

What resources are provided by the partner in terms • Dedicated, named account management and of post-sales support, account management and 24/7/365 live customer and technical support support? • Award winning business management platform, PRiSMPro offers both Web interface and Does the prospective partner have 24/7/365 live robust API for integration into your back office technical support for your business? If not, does business systems and logic their support profile meet with your business • More than 1000 customers spanning diverse requirements? industry verticals from Fleet and Asset Tracking Conclusion to mHealth to Security, Business Continuity and more. There is no argument that the impending North American 2G GSM sunset is a disruptive event for M2M companies who have mission critical applications running on this legacy network. There For more information visit are many variables that influence the path you www.koretelematics.com choose. KORE can help you to analyze your situation +1.866.710.5281 and provide the right solution for your future growth. [email protected]