Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

IoT – Connected DevicesPresented by:

Jeff Kissinger

Channel Manager – Connected Device Partnersh, M2M

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 2

What’s the “Internet of Things”

26 Billion Thingswill be connected on the web by 2020, changing the way we live and do business.Forbes, “Gartner Top 10 Strategic Technology Trends,” December 12, 2013

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 3

“Internet of Things” Revenue

Connected Devices Market will be a $1.2 Trillion Revenue

Opportunity by 2020;M2M in Intelligent Building and Smart City Sectors to Bring in Billions .PR Newswire, October 18, 2012

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 4

THE CONNECTED WORLD IS HERE

HEALTHCARE

MEDIA / ENTERTAINMENT

EMBEDDED PRODUCTS & SMART ACCESSORIES

ENERGY & UTILITIES

TRANSPORTATION

RETAIL

EDUCATION

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 5

M2M OverviewToday’s machine-to-machine (M2M) technologies can automate the way

you work by using sensors and devices to consistently exchange information.

The impact of these new sources of data – Quickly act on the intelligence to create efficiencies Improve internal and external business processesGenerate new revenueControl costsDrive better business decisionsProvide enhanced customer service

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 6

INCREASING YOUR CUSTOMERS EFFICIENCIES• Provide near real-time insight to help improve their operations

• Turn your data into actionable intelligence to

improve decision making and eliminate inefficiencies

SIMPLIFYING A COMPLEX MARKETPLACE

• Create solutions that make use of the cost-efficiency and security of cloud services.

• Maintain secure, reliable application performance.

DRIVING NEW REVENUE STREAMS• Streamline processes by utilizing automated devices and custom apps.

• Quickly and securely deliver existing products and services to market.

ENHANCING YOUR CUSTOMER EXPERIENCES

• Offer timely and effective customer service solutions

• Increase loyalty with personalized interactions and access to products and services

M2M Business Drivers

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 7

Key Elements of an M2M Solution

Business Expertise

Value to CustomerDelivery of goods and services

Change Delivery of Perceived Value

Increase Revenue, Decrease Costs

Majority of Value to Customer

Focus on Core Business

Device Network Platform Application

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 8

M2M Solution Development: The Bad

Time to Market Cost to Entry Change Management

Barriers to Entry Network Complexities Cloud Services

Cost of Error Security Risks Global Considerations

9Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Innovation Program

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 10

PEOPLE • TECHNOLOGY • TOOLS

Innovation Center – West

San Francisco, CA

Innovation Center – EastWaltham, MA

OpenAccess to Expertise

EcosystemPartnerships

“Go to Market”

Innovation

Labs

Frictionless Engagement

Ushering in the “Connected Everything” Age

Innovation Driven: No fees, No IP, No exclusivity

VERIZON INNOVATION PROGRAM

OVERVIEWVerizon Innovation Program

NATIONAL PROGRAM – TWO CENTERS

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 11

Hardware, Software & RF Engineering

CommercialNetwork Sandbox

Analytics &Tools

Non-Traditional Commercialization Paths

Cloud & Solution Enablement

ABPM 2012 WorldClass Center Award

LEEDGold Certified

RF PERFORMANCE VALIDATION

WIRELESS INTEGRATION

CERTIFICATIONSUPPORT

PRODUCT DEVELOPMENT & OPTIMIZATION

INCUBATION & RAPID PROTOTYPING

TURNKEY SOLUTION ENABLEMENT

VERIZON INNOVATION PROGRAM

PRODUCT DEVELOPMENT SERVICESVerizon Innovation Program

PRODUCT DEVELOPMENT SERVICES

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 12

70+ Commercialized Solutions • 85+ Active Projects • 300+ Innovation Ecosystem Participants

Video Broadcast

Verizon Innovation Program

SOLUTION DIVERSITY

Point-of-SaleSystechQ1 2013

Personal Asset TrackRPhone Halo

Q2 2013

Collaborating for Meaningful SolutionsOur collaborative approach to innovation helps address multi-vertical market needs.

The Verizon Innovation Program enables an accelerated path to market.

Mobile News CameraJVC

Q4 2012

Verizon 4G LTE RouterNetgearQ2 2012

Heartstart Defibrillator Philips Healthcare

Q1 2013

Smart Trash & RecyclingBig Belly Solar

Q2 2013

Smart AccessoriesRetail Network AccessTelemetry Utilities Healthcare

Tank MonitorInvensys

Q1 2013

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 13

VERIZON INNOVATION PROGRAM

SOLUTION DIVERSITY CON’T

4G LTE Interface CardsCisco

Enterprise / M2M RouterCradlepoint

Ruggedized RouterSierra Wireless

Virtuo SmartjukeTouchTunes

Robotic TelepresenceVGo

Audio Broadcast Comrex

Gaming LaptopsDELL-Alienware

4G LTE Home RouterNetgear

Mobile GatewayInMotion Technology

Video Broadcast LiveU

Office-in-a-BoxEricsson

Remote Healthcare BL Healthcare

4G LTE RouterJuniper

Smart Grid NodeAmbient

Electric MeterItron, Inc.

Industrial Pro RouterSixnet

General ElectricWiYZ Gateway

Smart Grid Broadcast - Audio

Healthcare

Entertainment EducationEntertainment

Network Access Healthcare Network Access Broadcast - Video Network Access Smart Grid

Utlities Smart Grid Broadcast - Video Utilities Network Access Retail Telematics

Outage Advisor Sensor

Cooper Power Systems

LiveShot BroadcastComrex

Retail POSSystech

Usage Based InsuranceXirgo

Network Access Network Access

14Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Verizon Partner Program

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 15

Verizon Partner Program

A simple, straightforward and flexible program to connect your business to our world-class portfolio of technology solutions.

• Engage new customers

• Generate new revenue streams

• Increase your competitive advantage

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 16

Partner Program Benefits

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 17

Verizon Ventures

Verizon Ventures - Support for entrepreneurs driven to make a difference. Together, we can solve today's biggest challenges.

We seed the future of technology by backing big ideas, with funding, strategic connections, and expertise.

Investing in the right ideas at the right time. Our success depends on helping entrepreneurs find individual success—developing new technologies that complement and leverage our global networks, platforms, and distribution channels. We're particularly excited by solutions that empower our retail and enterprise customers. And we're always on the lookout for disruptive technologies and business models with the potential to capture a significant share of a large market.

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 18

Verizon Ventures

. Areas we invest include:

• Smart devices—M2M and more: • All things coming out of development that can connect to

our networks. • Social machines that reinvent consumer products through

connectivity.

• Content—video, web, and mobile applications: • Players that can disrupt the current linear model, allowing

for viewer interaction. • Mobile First apps and services that challenge incumbent

web video services. • Technologies to unlock apps from devices, easing

developer burden for cross-device functionality. • Cross-platform/modality advertising that can maintain

relevant messaging between different types of media.• Enterprise video that connects employees and integrates

into daily work life.

• Digital marketing and commerce: • Mobile advertising that goes beyond the major entrants

and fills gaps in the ecosystem.

• Cloud, enterprise IT, and networking: • Public and private cloud services to converge

infrastructure and share resources. • Anything security—network, web, messaging, identity and

access management, mobile/endpoints, and firewalls.• Virtualization as it moves into network services and

storage. .