The Opportunity for LTE-M/Cat-M1

Gus Vos | Chief Engineer, CTO office

IoT Developer Day platinum Cat-M1 is a LPWA Technology

WWAN 10km LPWA WWAN LPWA 1km Cat-M1

WLAN 100m Cellular Coverage

WHAN 10m

WPAN PAN 1m WLAN Speed 100 kbps 1 Mbps 10 Mbps 100 Mbps

platinum LPWA motivation

Cellular The “3 C’s” LPWA’s PAN/WLAN Current (zigbee, BT, Wifi) Cost deliver the Mostly PAN/WLAN +20B 2022LPWA Current “3 C’s” Coverage

Upside

World Wide IoT Connections

platinum Where is the LPWA Magic?

The Magic The “3 C’s” Low data rates Cost Low data usage Current Coverage

platinum LPWA complimentary to short-range and cellular

Market Needs Wi-Fi Bluetooth Legacy LPWA Zigbee Cellular Data Rates High Low High Low (messaging, IP data) Cost Medium/Low V. Low High/Medium Low (and complexity) Current Med Low High Low (power consumption) Coverage Short Short Long V. Long (range, penetration) Good OK V. Good OK

User Setup/Reliability (pairing, connection) Hard Hard Easy Easy

platinum LPWA: Ideal Applications

Battery High Addressable Applications Life Coverage Connections Energy - Gas and water meters MUST MUST 1.5 Billion Irrigation, Soil and Pollution sensors MUST MUST 100s Millions Tank & tote Monitoring MUST MUST 100s Millions

Public Lighting BETTER MUST 300 Millions Smart City - Waste containers MUST MUST 10s Millions Enterprise - Logistics, asset tracking MUST MUST 100s Millions

Residential - Alarm, Smoke/CO Detectors MUST MUST 100s Millions

Patient Monitoring MUST MUST 10s Millions

Wearables MUST BETTER 100s Millions NEW CREATIVE IDEA!! MUST MUST Billions!!

platinum LPWA – Technology Timeline

Proprietary RPMA – Ingenu Unlicensed Bands UNB – Sigfox LoRa – Semtech

Std. Release 13 LTE-M NB-IoT Standardized Trials Cellular 375 kbps 65 kbps 1st 3GPP Cat-M1 Cat-NB1 Release 14 LTE-M LTE-M NB-IoT Contribution 2.5Mbps 150kbps by Sierra * Cat-M2 Cat-NB2

2010 2015 2016 2017 2018 2019

* http://www.3gpp.org/ftp/tsg_sa/WG1_Serv/TSGS1_51_Seoul/Docs/S1-102151.zip platinum Cat-M1 – The 3’C by the numbers!

Low Cost Low Current Deep Coverage

$5-10 >10 years +20dB

platinum Cat-M1 Cost Reduction

Reduce Complexity: RAM 4,30 • Half Duplex RF • Single receiver 20 Bandwidth • Lower Memory 0,25 0,21 • Lower bandwidth 1,08 0,18 • Simpler processing CAT-3 CAT-M1 CAT-NB1 • Lower PA CAT-3 CAT-M1 CAT-NB1

Flash Baseband PA Legacy XTAL RAM Cellular Power Management

Integration

Flash BB/RF Cat-M1 XTAL

platinum Cat-M1 Coverage Enhancement

Cat-M1 Coverage 100000 • More than +20dB gain • At least 164 dB MCL (with 23 dBm PA) 10000

Techniques 1000 Downlink Data Uplink Data • Additional coding Data Rate (bps) • Frequency Hopping 100 (LTE-M only) • Robust control Loops – Channel estimation 10 142 146 150 154 158 162 166 170 – Frequency offset MCL (dB) Normal ~Out of Coverage – Timing Coverage Extended Coverage Region Region

platinum CAT-M1 Low Current Enhancements

Flexible Sleep (eDRX) Power Saving Mode (PSM)

• Idle current from 1-2ma to 15uA • 50% signaling savings (80 sec sleep cycle)

Small Data Optimization Dense Base stations • Control Plane Good Coverage 50% saving • Suspend/Resume 75% saving • +10dB yields to >5X battery life

platinum Cat-M1 – Additional Benefits

Ease of Use Trusted Immediate Service

Working out of the box Built-in Security Global Coverage Reliable Connection Solid supply chain 447 LTE Networks In 143 Countries

platinum Cat-M1 – Additional Benefits

Broad CAT-M1 Operator Support

AT&T * KPN * Telenor KT Corporation TeliaSonera NTT Docomo Telstra * China Telecom Orange * T-Mobile China Unicom SoftBank * Austria Immediate Service Telecom Italia * KDDI Telefónica * Global Coverage 447 LTE Networks GSMA LTE-M Task force Members * Publicly announced commercialization plan In 143 Countries

platinum Technology comparison: The details! Part 1

LTE-M NB-IOT Attribute CAT-1 Rel 13 Rel 14 Rel 13 Rel 14 LTE bands LTE Bands Spectrum LTE bands Stand Alone (1.4MHz) Stand Alone (200KHz) Typical MNO LTE Coverage Good LTE Coverage Mix LTE and 1.08MHz 5 MHz Bandwidth 20 MHz 180kHz (CAT-M1) (CAT-M2)

Number of DL Antennas 2 1 1

Duplex Modes FD-FDD/TDD HD-FDD, FD-FDD,TDD HD-FDD UL QPSK, 16QAM QPSK, 16QAM Pi/2 BPSK, Pi/4 QPSK DL Modulation QPSK, 16QAM QPSK, 16QAM QPSK Spectral Efficiency V.Good Good OK Class 3 (23 dBm) Power Class Class 3 (23dBm) Class 3 and 5 * 14 dBm Class 5 (20 dBm) LTE SC-FDMA + LTE SC-FDMA LTE SC-FDMA Single tone transmission with N UL Multple Access B1 3.75kHz and 15kHz bandwidths

platinum Technology comparison: The details! Part 2

LTE-M NB-IOT Attribute CAT-1 Rel 13 Rel 14 Rel 13 Rel 14 Coverage Extension 144 MCL 164 dB MCL 164 dB MCL

Current (Idle Mode) 1-2ma (DRX) <15 uA (80s eDRX) <15 uA (80s eDRX)

~590/1100kbps 300/375kbps (HD CAT-M1) 27/65kbps ~85/150kbps Data Rate 10/5 Mbps (HD CAT-M1) 2.35/1.5Mbps (CAT-NB1) (CAT-NB2) (HD CAT-M2) Less Resource Allocation Dyanmic Dynamic Pre-allocated Pre-allocated QoS Yes Yes No Mobility Yes Yes No Real Time Yes Yes No Voice Yes Yes ~2018 Enhanced No Network Positioning Yes (OTDOA) Yes Enhanced No Yes Simple S/W Network Roll Out S/W Upgrade Mostly S/W Upgrade Upgrade N B1 Network Availability Many Networks Q1-Q2'2017 ~ Q3 2018 Q1-Q2'2017 ~ Q3 2018

platinum Sierra Cat-M1 solutions

Common Flexible Form Factor

essential connectivity integrated application processing

Cat-M1/LTE-M 1H’2017 2G 4G LPWA Cat-NB1/NB-IoT Start development using Cat-1 today!

platinum Summary

ü Cat-M1 is a LPWA and meets the needs of IoT Cost Current Coverage ü Cat-M1 delivers on the 3’C $5-10 >10 years +20 dB ü Cat-M1 includes additional benefits ü Cat-M1 will be here H1’2017 ü Start development today with Cat-1! ü Cat-M1 is a revolutionary cellular technology

platinum Thank You

IoT Developer Day platinum gold platinum silver