M2M EXPLOSION INCLUDES A RAPID PROLIFERATION OF DEVICES & APPLICATIONS At Sprint, our eyes have been wide open to the M2M opportunity for many years, Sprint’s M2M Emerging Solutions is at the forefront of this wireless industry revolution, supplying the means for partners and developers to create smarter wireless solutions Our M2M mantra has been to “think outside the phone”. And this has led to a rapid expansion of M2M solutions, and a large and diverse portfolio of partners, of which Intel is among the most powerful agents of M2M innovation. We have already brought to market a wide array of solutions that feature a host of devices running on our network – ranging from those that used widely by many businesses and consumers (such as aircards, tablets, e-readers and digital signage) to highly specialized devices and software (such as smart meters, UBI devices, medical apps). I want to take some time today to expand on some of the most innovative and interesting applications that have emerged in a relatively short period of time. This includes capabilities that are changing the way we work and live – including benefits to a variety of categories, such as healthcare, public safety, sustainability and transportation.
M2M EMERGING AS POWERFUL GREEN TOOL Environmental responsibility is a key benefit of many M2M capabilities. Positive green consequences involved in many of the applications, including: Reduced carbon footprint from more efficient management of fleets and mobile workers, especially from reduced fuel consumption Increased energy efficiency from SmartGrid applications Greater practicality and affordability in operating electric vehicles All these and more represent real ways to contribute to sustainability – and this will continue to grow as an important factor as company’s consider the advantages of M2M. PACCAR Background: The average over-the-road truck drives approximately 120,000 miles per year, with an average of 6% of those miles being “out-of-route”. These are miles driven when lost, looking for directions, detours etc. By using this newly announced integrated mobile computing, telematics, navigation and business system, fleet operators could reduce their out-of-route miles (among other benefits such as driver comfort, productivity etc.). Using the example of 100 trucks in a fleet, the numbers are as follows: Fuel Cost: The average vehicle gets approximately 6 miles per gallon of diesel, which costs approximately $3.00 per gallon today. Based on this stat, the average vehicle drives 7,200 miles “out of route” each year at cost of $3,600 in fuel. For a fleet of 100 vehicles, this is a cost of $360,000 per year for out-of-route miles Emissions: The EPA states that 22.2 pounds of carbon dioxide are generated for every gallon of diesel fuel consumed Reducing Out-of-Route Miles Reduces Emissions and Saves Money Due to more efficient navigation, directional, mobile internet and other connectivity, if a fleet’s current ratio of “out-of-route” miles can be reduced by 33% (to 4% of out of all route miles), the impact is as follows: This means 2,400 fewer miles would be driven per vehicle per year. Saved Fuel: 100 trucks “drive” 240,000 fewer miles per year (2,400 per vehicle). At 6 miles per gallon, they will now not be using 40,000 gallons of fuel at a cost of $3.00 per gallon. This results in an annual savings of $120,000 for a 100-truck fleet. Reduced Emissions : By not using 40,000 gallons of fuel, the company with a 100-truck fleet keeps 888,000 pounds of carbon dioxide out of the atmosphere on an annual basis. 880,000 pounds of carbon dioxide equals approximately 400 metric tonnes; which is the equivalent of the combined annual electricity for 58 average American homes or 18, 175 propone tanks for a home barbecue grill.
NETWORK INNOVATION A secure network built for data that is proven, reliable, and effective Network Agnostic: Broadest portfolio of wireless network solutions with 2G, 3G , and 4G – as well as PTT Secure integrated IP network & backbone transport for end-to-end solutions. NETWORK ADVANTAGE Announced July 2009 --- Innovative 7-year network services deal with Ericsson Ericsson assumed responsibility for day-to-day services, provisioning and maintenance of Sprint-owned CDMA, iDEN and wireline networks. Sprint retains full ownership and control of network assets, and solely owns network strategy and investment decisions, including vendor selections. Customers continue to work directly with Sprint employees as their primary contact. NETWORK VISION Network Vision is the Sprint blueprint to deploy a cost-effective, innovative network plan that will further enhance voice quality and data speeds for customers across the U.S. Sprint has awarded contracts to Alcatel-Lucent, Ericsson and Samsung. Includes purchases of hardware, software and services from these best-in-class vendors. The awarded suppliers will deploy state-of-the-art technology expected to bring Sprint customers an overall enhanced network experience and other financial value to Sprint. The implementation of multimode technology throughout the Sprint network is designed to: Enhance service – Improve quality and data speed; improve in-building coverage and coverage within the network footprint Create network flexibility – Ensure the most effective expansion of 4G Reduce operating costs by delivering capital efficiency, lease reductions, roaming savings and backhaul efficiencies (Total estimated incremental cost: Between $4 to 5 billion over the deployment period. Estimated total financial benefit: Between $10B and $11B. Improve environmental sustainability by reducing carbon footprint and energy consumption needs
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Everything I just talked about speaks directly to Sprint’s open approach to M2M --- which is critical to the success of our M2M customers: Leader in Open Architecture through the Sprint Open Device Initiative that has certified hundreds of non-Sprint-branded certified devices. Growing ecosystem of partners to deliver a robust portfolio of services and simplify the certification, testing and launch of a solution. Open to new business models and innovative B2B and B2C solutions. And absolutely critical to our approach --- we are committed to an open and close relationship with developers.
Lisa Barber Business Account Executive 678 778 8198 [email_address] Sprint is Your Partner for M2M
<ul><li>Definitions: </li></ul><ul><li>1: M2M is about connecting people, devices and systems in new and transforming ways. Simply put, M2M is the automatic communications between devices ; the internet of things. </li></ul><ul><li>2: M2M is an amazing growth opportunity; transforming the way people live and work. </li></ul>M2M: (noun), ma·chine -to- ma·chine Pronunciation: muh-sheen too muh-sheen SEE ALSO: embedded computing, connected devices, emerging solutions What is Machine-to-Machine (M2M)?
80 million M2M devices are expected to be connected in North America by 2015. ABI Research, 10/2010 Caution: Explosive Growth Potential! M2M Magazine, 04/2010 There will be 2.1 billion M2M connected devices by 2020 . Analysys Mason, 12/2010 Global M2M module market forecast to reach $3.4 billion in 2015. ABI Research, 08/2010 Yes, we suggest you sleep with one eye open, because the machines are taking over. Resistance is futile. Engadget, 10/2010 Explosive Growth Expected for M2M
Pay-As-You-Drive Insurance Asset Tracking Digital Signage Inventory & Control Work Flow Management Mobile Commerce Cost Reduction Market Growth Drivers of M2M Growth
<ul><li>There are more than 250 million vehicles, trains and busses in the U.S. (U.S. DOT, Bureau of Transportation Statistics) </li></ul><ul><li>Only 4% are connected. (Feeney Wireless) </li></ul>Connecting All Things Moving Fleet Management and Connected Vehicle Solutions
<ul><li>More than 6% of truck miles are “out of route” – and expanding the carbon footprint. (PACCAR) </li></ul><ul><li>22.2 pounds of carbon dioxide are generated for every gallon of diesel fuel consumed. (EPA) </li></ul>Connecting All Things Moving Catalyst for Change: Making the Planet Greener
<ul><li>Distracted driving killed 5,500 people in 2009. (U.S. DOT) </li></ul><ul><li>Usage-based insurance promotes safer driving behaviors, with lower premiums. </li></ul>Connecting All Things Moving Catalyst for Change: Making Travel Safer and More Affordable
<ul><li>There are projected to be more than 2.4 million ATMs in the U.S. by 2013. ( NextGen Research) </li></ul><ul><li>Currently, there are 1.2 million self-service kiosks in the U.S. ( Summit Research Associates) </li></ul>Fixed and Portable Solutions ATM/POS, Kiosk, Digital Signage, and Video Surveillance
<ul><li>Digital advertising spending grew 14.9% in 2010. (PQ Media) </li></ul><ul><li>Compared to traditional merchandising options, digital signage investment could lead up to 179% ROI. (IAdea Corp., Digital Signage ROI Calculator) </li></ul>Catalyst for Change: Sending Your Message Farther and Increasing Marketing ROI Fixed and Portable Solutions
<ul><li>170 billion Kilowatt-hours are wasted each year by consumers due to insufficient power usage information . (IBM) </li></ul><ul><li>If 50% of homes had smart meters installed, more than 18 million tons of CO 2 emissions would be reduced. (GE Ecomagination) </li></ul>SmartGrid Solutions Making the Utility Grid Smarter
<ul><li>It’s predicted that 885,000 electric cars will be on the road in North America by the year 2015. (IDC Energy Insights) </li></ul><ul><li>The number of electric vehicle charging stations in the U.S. could reach 20,000 by 2010. (U.S. DOE) </li></ul>SmartGrid Solutions Catalyst for Change: Charging Energy-Efficient Vehicles
<ul><li>Wireless technology could save $21 billion in hospital and nursing home costs. (Health Research Institute) </li></ul><ul><li>88% of physicians would like their patients to be able to monitor their own health. (Health Research Institute) </li></ul>Healthcare Solutions Empowering Patients and Caregivers
<ul><li>40% of in-office doctor visits can be replaced by e-visits. (Health Research Institute) </li></ul><ul><li>E-visits are enabled with devices that monitor chronic conditions and provide clinical tools in the home, helping people manage their own health </li></ul>Healthcare Solutions Catalyst for Change: Reducing Healthcare Costs and Promoting Individual Accountability
<ul><li>The market for mobile learning technologies in the United States was $632.2 million in 2009. </li></ul><ul><li>Furthermore, the demand is expected to grow until revenues reach $1.46 billion in 2014. (Campus Technology) </li></ul>Education Solutions Helping Students Learn Anywhere and Making Education Affordable
Sprint is Your Partner for M2M <ul><li>Open M2M Collaboration Center </li></ul><ul><li>Open Device Initiative </li></ul><ul><li>Open Business Models </li></ul><ul><li>4G Leadership and Network Choice </li></ul><ul><li>Network Vision: Multi-mode Platform </li></ul><ul><li>LBS Leadership & Network of Partners </li></ul><ul><li>Dedicated and Trusted M2M Team </li></ul><ul><li>Sprint Command Center </li></ul><ul><li>Proven Experience and Support </li></ul>
Sprint is Your Partner for M2M Network Open Execution
Sprint Provides Branding Customer Care Sales & Distribution End User Billing Network Services Sprint’s open platforms enable a variety of business models. Sprint Offers Flexible Business Models Device Certification Advanced Network Services Network Connectivity
Network: Strength, Vision and Partners 2G (1xRTT) Sprint is Your Partner for M2M Network Execution Open 4G 2.5GHz 3G 1.9GHz & 800MHz Multi-mode platform utilizes all frequencies for any technology and any purpose (voice/data)
<ul><li>Dedicated M2M team </li></ul><ul><li>Sprint Command Center </li></ul><ul><li>M2M development toolkits </li></ul><ul><li>Solution expertise and deployment </li></ul><ul><li>Proven experience and support </li></ul>Sprint is Your Partner for M2M Network Execution Open
Internal Use Only – Sprint Solutions Delivery Management <ul><li>“ White glove” project management support </li></ul><ul><li>Single point of contact </li></ul><ul><li>Coordination of project activities </li></ul><ul><li>Experience – 10 years of project managing complex wireless solutions </li></ul>Definition Project Review Monitoring & Control Detailed Planning Solution Delivery Management Best-in-Class Methodologies and Processes
Open Minds Open Platforms Open Possibilities Sprint M2M…
<ul><li>The Collaboration Center offers: </li></ul><ul><li>Public and private labs </li></ul><ul><li>Test equipment and RF chambers </li></ul><ul><li>Solution design and engineering resources </li></ul><ul><li>Innovation and collaboration rooms </li></ul><ul><li>Solutions showcase and demonstrations </li></ul><ul><li>Access to leading partners </li></ul>Sprint M2M Collaboration Center
<ul><li>M2M platform that delivers: </li></ul><ul><li>Enhanced provisioning </li></ul><ul><li>Advanced billing solutions </li></ul><ul><li>Device and service management tools </li></ul><ul><li>A robust self-service tool that gives you control in managing your M2M solutions </li></ul>Sprint Command Center