1. Confidential and Proprietary. Do not distribute without written permission from Clearwire. The M2M Puzzle …putting the pieces together. Michael Murphy Clearwire Mike.murphy@clearwire.com

2. 2 The question of the connected device puzzle: Computers Handheld devices Machinery Automobiles Home appliances Pallets and cases 10 7 11 10 8 9 12 Individual items Billions of endpoints await connection Computers: 10s millions CE/Handheld devices: 100s millions Machinery: 1 billion Automobiles: 100s millions Home CE and appliances: 10 billion Pallets and cases: 100 billion 10 7 11 10 11 10 8 9 12 10 12 Individual items: 1 trillion 8 17 billion connected devices by 2012. (IDC) An often quoted forecast: … but … Why aren’t there 17 billion connected devices today? - or - What needs to change in the next 3 years to bring this forecast to reality?

3. 3 Is growth in human or machine attended devices? Human oriented machine oriented

4. 4 M2M, by segments: Automation & Control Emergency Security Telemedicine Vending/Kiosks ATM/POS Muni Transport Other Metering Dynamic Digital Signage SCADA, Industrial based M2M, Field Equipment M&C, Elevator Monitoring Broadcasting, Advertising and Information Display, Retail, Leisure, Hotel, Transport, Finance, Traffic Info, Parking Directions, Bus Info, Billboards Automated Meter Reading; Electric, Gas, Water, Security and Alarm, Imaging, Remote Surveillance, CCTV, Motion Detectors, Gates etc, Home Security Patient Monitoring, Diagnostic Metrics, Medical Records, Remote Diagnosis Inventory Management, Remote Monitoring, Alarm Status, Security and Accounting POS Deployments, Credit Card Transactions, Tableside Payment EMS Agencies, In- Vehicle Computing, Messaging, Remote Diagnostics, Sensor Integration, Real Time Tracking, Real Time Traffic Information, Database Management Emerging opportunities Predictive Maintenance, Diagnostics, Remote Electronic Toll Collection, RFID Applications; Local Government M2M Telematics Telemetry It doesn’t move It moves “Civilian” fleets “Civilian” fleets Patient Monitoring, Diagnostic Metrics, Medical Records, Remote Diagnosis

5. 5 Segment Sizing: Analog => Digital Wireline => Wireless Manual => Automated Mechanical => Electronic

6. 6 Why aren’t they connected today? Primary pieces of the puzzle: M2M 1.Cost per bit (Network economics) 2.Ease of Integration, management 3.Monthly cost per device (Billing mechanisms) 4.Network available where a device is used 5.Device cost (eg: radio cost, NRE, certification, etc) 6.Network features (Mobility, Broadband, security, other) Other: network lifecycle, channel issues, regulatory

7. 7 M2M: Network perspectives Wireline/fixedWPANWLANWMANWWANSatellite Cost per bit Low MedMed-high Ease of integration EasyModerate Moderate-high Monthly costs Low Low-mod ModerateModerate-high Network availability Moderate moderateModerate very goodVery good Device costs LowLow-moderate Low-high Network Features LowlowmoderateVery highHighModerate-very Bottom line, before WiMAX, M2M network decisions were limited to: Fixed, short range, proprietary, cellular or satellite. WiMAX adds to the mix some key aspects: Lower cost per bit without infrastructure capex Large coverage areas Low CPE costs Network characteristics that unlock new value – mobility and broadband.

8. 8 Thank you! Questions?