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M2M SUMMARY FOR ALL

Though M2M exist since many years, as many new technologies entered into market takes time to be

accepted, adapt and matured, it is becoming more popular day by day.

One of the reasons why it took so much time to be accepted is that the GSM operator were happy

with their voice ARPU’s. However after the liberation of telecom services and the entrance of new GSM

players into market beside the incumbents, ARPU’s have gone down. GSM operators had to find new

sources of income. Value added services were one of many. At this point M2M services started to take off.

However now wee are at the turning point for M2M users with the new MVNO players.

As can be guessed GSM operators are not willing to share voice and SMS incomes with MNVO’s.

Therefore, MVNO’s are bound by basically with M2M solutions. We think that this is where MVNO’s may

pass operators.

Some of the possible M2M applications MVNO’s will provide beside the GSM operators are as

follows:

Fleet Management

Using automated GPS technology, companies can remotely locate, navigate and track their fleet

vehicles, to improve management and customer service. Mobile assets can be tracked not only for location,

but also for vehicle performance and driver safety.

Security:

The Security market is arguably the largest M2M segment to date, primarily with the adoption of

wireless technology based on antiquated analog cellular and proprietary data networks. Most of these security

applications have been designed to eliminate fixed line services to transmit alarm information to an alarm

company. But, the shutdown of the analog networks in 2008, coupled with customer demand for higher

value services including video monitoring is driving rapid migration to flexible digital network approaches.

According to ABI Research, the North American market for home security systems will reach almost 10

million devices by 2010. However, the real growth in Security will shift to digital wireless as the preferred

network technology as the legacy networks are retired and new security applications drive the bandwidth

requirement far beyond that supported on those older networks.

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Beyond basic alarm, monitoring, new capabilities are being added to enhance and improve security

solutions. The use of video and still picture transmission allows alarm and security companies to view a

location, in real-time, prior to taking action. This allows false alarms to be disregarded without incurring the

cost of going to the location as well as avoiding false law enforcement dispatch. In addition, user interaction

with home or business security systems, via any mobile device, will allow for notifications to a mobile phone

as well as remote user control.

Healthcare and Telemedicine

Patients can be remotely monitored from their homes, with medical professionals able to monitor

diabetes, cardiac issues, prescription usage, and many other conditions and concerns

Vending

Inventory management, remote monitoring, alarm status, security, cash shortages and fleet

management are some of the important aspects of vending machine management. M2M applications can

improve that management, enhance customer service, assure consistent inventories, and enable companies to

pay the greatest attention to their high-revenue brands.

Digital Signage

This is the delivery of strategic information when and where it is needed. These solutions are popular

in markets such as retail, leisure, sports, security, traffic management and others, with innovations such as

video messaging, communication of important or entertaining real-time information, and mobile advertising.

Public transport

Organizations can better manage their vehicles through M2M solutions that leverage GPS technology

for location, navigation, and vehicle movement. The status of the vehicles can be gauged remotely to

minimize out-of-service time and improve driver safety.

Remote Monitoring and Control

M2M takes traditional applications such as SCADA, building automation, and remote diagnostics to

the next level. Today’s embedded routers and modems help assure reliable connectivity for critical

applications. Time and cost limited the actual amount of monitoring that could be accomplished, with

systems largely limited to occasional inspections by humans, with those sites that absolutely required

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monitoring paying a high price. The use of M2M wireless technology, able to be delivered in often hostile

locations, yet with low power devices, both facilitates reduced monitoring costs while increasing the amount

of data that can be captured and transmitted. As Environmental Protection Agency (EPA) initiatives increase

the pressure on industry to report and file detailed and regular – not simply exception – reports on critical

facilities, wireless M2M is the obvious answer. One of the ‘original’ M2M markets, SCADA (Supervisory,

Control and Data Acquisition) control systems have been widely used in oil, gas and other process

management industries for more than 15 years. However, Industrial Monitoring and Control is a rapidly

growing M2M segment that is predicted to grow annually by almost 35% through 2010 to an estimated 5.76

million devices (ABI Research). Through SCADA standards, M2M technology is being used to extract data

from non-IT devices such as electrical, gas and oil meters as well as a myriad of other devices and deliver the

data to critical business and monitoring systems.

The ability to monitor and control electrical power systems, water, oil and gas networks provides

utility industries with a more cost-effective way to measure utilization (in real time), the ability to manage

supply and demand and to more effectively anticipate, identify and fix problems. The cost savings associated

with measuring utilization and providing maintenance functions is greatly enhanced when meters and other

network elements are in remote or hard-to-reach locations.

Harbor Research has called this “Pervasive Intelligence”; allowing businesses to make immediate decisions

based on accurate, real-time, data.

Nevertheless, this market is broadening to also include the use of a wireless networks to connect

specialized devices in a variety of new businesses, from retail outlets and fast-food restaurants to major

production and business facilities. For example, Burger King has implemented wireless M2M solutions where

devices capture alarms, send notifications, receive and process remote energy and security information and

then uploads this to centralized business systems. The implementation of these solutions drives cost savings

associated with energy efficiency, reduced peak demands and protection of perishable inventory or any other

asset that may negatively impacted by loss of electricity, refrigeration or light.

The use of M2M technology in Environmental monitoring has started expanding significantly, as wireless

technology is being applied to more and more monitoring applications. There are many already in early

adoption phases, using M2M technology:

• Measurement of air quality

• Irrigation, temperature and chemical monitoring

• Collection of water samples in rivers, lakes and even coral reefs

• Monitoring of gas and pollutant levels in landfills

• Measuring of water levels in wastewater treatment

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• Flood management of bacterial and water levels

In the case of air quality and many other environmental conditions, the monitoring is required and

regulated by the EPA and other government agencies. Compliance to regulations at the lowest possible cost

will continue to drive the adoption of M2M technology as will the ability to more quickly identify and

respond to events where out-of-control conditions could be dangerous to people or property.

Automatic Teller Machines/Point of Sale

Wireless M2M communication can increase transaction speeds and enable new products such as

wireless card transactions, tableside payment, and more.

Public safety

M2M solutions help assure that the wireless equipment used by first responders and others is

operational at all times, as well as manage medical equipment, vehicles, and more.

Utilities

M2M enables a vast range of utility, SmartGrid, and automated metering applications. Customers

can use these applications to remotely monitor critical utility applications and track, monitor, and manage

assets.

Asset tracking

Asset tracking permits a user to determine the locations of virtually any type of asset 7x24 anywhere

in the world. Businesses can track delivery and repair vehicles, cargo containers, construction equipment and

even its own personnel, especially those living or working in areas where there is threat of crime or

kidnapping.

For businesses and consumers, the asset tracking provides the functionality known as “geo-fencing”.

This allows the user to set a “logical fence” as a boundary. If the asset goes outside of the boundary, the user is

immediately notified via a message (call, email, text). This is useful in terms of theft protection. One

application of particular focus for SkyTrace is tracking laptops. This application is material due to the theft in

the market. Some statistics to support this effort are:

• Safeware The Insurance Agency claims that over 600,000 laptops are stolen annually, resulting in

an estimated $5.4 billion loss of proprietary information.

• According to the FBI, 97% of stolen computers are never recovered.

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• Laptop theft accounted for 50% of reported security attacks. CSI, The 12th Annual Computer

Crime and Security Survey, 2007

• Lost or stolen laptops and mobile devices are the most frequent cause of a data breach, accounting

for 49% of data breaches in 2007. Ponemon Institute, U.S. Costs of a Data Breach, November 2007

• 12,000 laptops are lost in U.S. airports each week, and two-thirds are never returned. (Dell &

Ponemon Institute, Airport Insecurity: the case of lost laptops, June 30, 2008)

Cargo / Asset Protection

• Web or PDA Web locate capabilities – immediate results

• Can also locate from cell phone for immediate results

• Geo-Fence – pre-set border control by the user

• Connect with expensive shipping materials that require security measures

Telematics

Public Transportation Management, Intelligent Transportation Systems (ITS), workflow, mobile job

planning, M2M Applications – Pay As You Drive.

Here is a true M2M Application that is being rolled out commercially that will impact you. The

application allows users to pay for car insurance based on usage. You pay for as much as you consume – you

drive 100 miles you pay insurance for 100 miles – you drive 100,000 miles you pay insurance for 100,000

miles. This is could change the face of the car insurance industry and if widely adopted / deployed on a

standardized platform will allow other ancillary products and services to be offered to car drivers – Internet,

Yellow Pages, Drive By/Localized Ad’s (won’t we love that), Streaming Music (everyone one wants a radio

on the car) and more.

The application (PAYD) as you go is being used by insures in UK/Europe to offer drivers a means to

pay for insurance based on actual miles driven. The cars have a built in GPS system that track the movement

of the vehicle in real time – where you drive, when you drive and how often you drive (AKA Big Brother).

Cool technology concept – but to make it a commercial success it needs to assuage consumer fears about Big

Brother is watching.

SmartGrid initiative

The Smart Grid refers to the introduction of new information and control technologies to the

electricity system that allow the system to be planned and operated in a dynamically-optimized manner. An

example of such technology is the smart meter, which provides new information and communication ability

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for utilities to use to better manage and reduce the cost of their business operations. Another example is new

technology that automates and increases the operational efficiency of substations and other parts of the utility

infrastructure.

The smart grid is not limited, however, to infrastructure or the smart meter. It goes into the home

or business by way of new pricing, control, and information options that help users reduce their usage and

their bill. It will also connect to smart appliances that will automatically accept price and control signals that

allow them to be used in a way that better supports grid optimization and attainment of climate change

goals.

Demand Response, for example, is the practice of incentivizing customers to modify their electricity

usage in ways that help make the electric grid more efficient and reliable, particularly during periods of peak

demand. Because demand response reduces peak demand, it complements resources that tend to be available

during off-peak periods, such as wind energy. Demand response, in this way, supports the use of greater

amounts of renewable energy.

The smart grid also includes important new technologies such as energy storage and plug-in hybrid

electric vehicles (PHEVs). Energy storage is a form of demand response that allows renewable energy to be

used not only when it is produced but also when it is needed. With storage options, peak demand can be met

by renewable energy generated during off-peak periods. PHEVs, meanwhile, have the potential to be mobile

energy storage units. They charge from the grid, store electricity they don’t use, and have the ability to

return excess electricity to the grid during peak demand periods.