2. Data trapped in billions of devices Devices often in hard-to-reach locations - basements. below ground, pad mounts Interference is increasing and poses major reliability concern Many devices require long battery life Result - network infrastructure is complex and costly AMI and Distribution Automation projects ROI already under scrutiny Achieving The Smart Grid is Challenging 2

3. Utility Network Must Effectively Cover – All Customers

5. Lower data rate per node Highly distributed High reliability Battery operation Lower data rate per node Highly distributed High reliability Battery operation Electric AMI Home and commercial energy management Transmission line monitoring Latency Intolerant Distribution Automation Higher data rate Latency intolerant High reliability Powered Higher data rate Latency intolerant High reliability Powered Higher data rate Latency intolerant High reliability Powered Higher data rate Latency intolerant High reliability Powered 1 billion monitoring points in the U.S.. Hundreds of thousands of endpoints in U.S. The majority of endpoints require a secure, highly reliable robust wireless network for lower data rate applications Overview of Smart Grid Endpoints A multi-radio solution is needed to address both classes of devices and applications Distribution Grid Sensing Smart Transformers Sub-station monitoring Distributed generation monitoring Streetlights

6. Electric AMI 5Kb +Alarms 5Kb +Alarms Sample Utility Network Requirements Network acknowledgement, shut off, rate tables Daily Uplink Payload Data Daily Downlink Payload Data Seconds for alarms; Minutes for payload Seconds for alarms; Minutes for payload Latency Tolerance Gas/Water Meter Thermostat Control Distribution Grid Sensor 700kb Firmware Upgrade n/a for meter; months to years for HAN devices n/a for meter; months to years for HAN devices Battery Requirements 200bytes + Alarms 200bytes + Alarms Network acknowledgment, shut off Seconds for alarms; Hours for payload Seconds for alarms; Hours for payload 200kb 15-20 years 1Kb Rate tables, control messages Seconds for control messages 200kb N/A 200 bytes +Alarms 200 bytes +Alarms Network acknowledgment, reset Seconds for alarms; Minutes for payload Seconds for alarms; Minutes for payload 100Kb 10 -15 years

7. The Physical Layer - Foundation for Application Performance

8. Suggestions to Avoid Surprises & Obsolescence Conduct system field trials across all geographies Test the full application if that is a key part of the ROI model Interference, reliability and spectral efficiency need to be elevated to the level of interoperability at utilities & NIST Standards are important to create industry coalitions and investment however can cause false hope that the problem is solved and slow innovation

9. Summary Many challenges remain at the communications & application layer to enable a cost effective high performance Smart Grid A layered multi-radio communications solution is needed to address varying applications and coverage requirements We are in the first inning of a 20 year new technology cycle Technology is moving quickly to address challenges but financing, policy and ROI need to be aligned