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Why CDMA for the Security Industry?

Wayne Ward, Vice President

Emerging Solutions Group

September 8, 2011

Telecom Technology Shifts Impacting the Alarm Security Industry

• POTS, DSL, Cable shift to Wireless?

• GPRS End of Life?, Longevity of 3G?

• Consumer Wired Broadband Challenges?

• Unlimited Mobile Broadband Plans?

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Key CDMA Network Considerationsfor the Security Alarm Industry

• CDMA Longevity - will the network be there?

• CDMA Coverage - will the alarm panels and devices have the coverage required?

• CDMA Security - is CDMA secure?

• CDMA Costs – is CDMA affordable?

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CDMA Longevity

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How Much Longer Will CDMA Exist?June 27, 2011 At the CDMA Development Group’s CDMA World Forum, in Guangzhou, China, the ugly “how much longer will CDMA exist” question reared its head a time or two. I tend to agree with James Person, COO of the CDG, who said he expects to be at a world forum in 10 years answering the same question. Machine-to-machine is getting a strong push globally from operators, and those long-term contracts will force carriers to maintain the networks, especially if the predicted M2M explosion occurs.”

Tracy Ford, editor of RCR Wireless had the following to say on CDMA’s longevity:http://cdgblog.org/2011/06/27/how-much-longer-will-cdma-exist/

CDMA Longevity

What is it?•Innovative $4 Billion Network Upgrade underway

What are the benefits?•For Customers

> 10+ Year CDMA 2G and 3G Technology Guarantee> Enhanced 2G, 3G, and 4G Coverage > Customers with Spectrum holdings can save years and billions getting to market. Target

customers include Lightsquared, Dish Network, and even Public Safety•For Sprint

> Savings: $1.5 Billion per year in reduced infrastructure and roaming costs> Expand M2M Market: Provide coverage, quality and 10+ year network longevity assurances .> New Market: Multi-Billion Dollar Network Hosting opportunities

• Nation’s 1st Multi-Frequency and Multi-Protocol Software define Cellular Network

• No more 1 spectrum frequency = 1 Protocol

• 1 shared pool of spectrum frequencies for any many different protocols (2G, 3G, CDMA, WiMax, LTE, etc)

• Includes upgrade to 1x Advanced 2G platform

Sprint Network Vision

Baseline

Post NV Implementation

Increase in Coverage

Coverage Covered Pops

Covered Area

Dense Urban 174% 247%

Urban 96% 184%

Suburban 21% 87%

InVehicle 13% 48%

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Washington, DC Market

Coverage Improvements

CDMA Coverage

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Domestic Coverage – Pops

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2G 3GCDMA

Sprint Nextel 312,261,420 280,950,936

Verizon 311,049,972 300,223,767

GSM

ATT 309,884,921 260,109,815

T-Mobile 299,669,400 205,969,251      

Total US pops including PR and VI 313,331,355  

     

based on publicly available information as of 06/30/2011  

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CDMA Global Coverage

6 out of 8 US Wireless Carriers are Standardized on CDMA!

In some regions such as Europe, Carriers have no choice but to use GSM. Luckily In the USA, carriers have a choice. Why do almost all USA carriers choose to standardize on CDMA?

In some regions such as Europe, Carriers have no choice but to use GSM. Luckily In the USA, carriers have a choice. Why do almost all USA carriers choose to standardize on CDMA?

CDMA Security

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CDMA Security Protocols are Among the Best in the Industry

CDMA enhances security by using improved encryption algorithms and other means such as authentication, hashing, data protection and anonymity.

Ultra Secure Spread Spectrum CDMA•Originally developed for secure military applications requiring enhanced anti-jamming and eavesdropping protection such as guided missiles

•Spread Spectrum CDMA code has NEVER been compromised. •Unlike GSM, CDMA encrypts & spreads the Voice/data session across the ENTIRE Spectrum

•Spectrum CDMA is the gold standard for protection against eavesdropping and jamming over the air interface.

CDMA Security and Privacy

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CDMA Costs

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CDMA Module Cost & Product Development Considerations

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2G Module Costs – Competitive with 2G GSM/GPRS Modules (CDMA $3-6 more per module)

3G Module Costs - Parity with 3G GSM/WCDMA

Forced 3G Modules use for new low bandwidth solutions development – Advantage CDMA - certifying 2G Devices

Development Time/Resources Impact –Can use Gobi module OR a module manufacturer (Telit, Fusion, Centurion) who provides PIN for PIN compatible GSM and CDMA Modules.

Summary

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CDMA Longevity

CDMA Coverage

CDMA Security

CDMA Costs

Why Sprint for the Security Industry?

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#6 of America’s 500 Greenest Companies (only telecom in top 50) – Newsweek (Oct. 2010)

#6 of America’s 500 Greenest Companies (only telecom in top 50) – Newsweek (Oct. 2010)

Listed on the 2011 M2M100, a list of the most innovative technology providers of M2M and connected devices – Connected World Magazine

Listed on the 2011 M2M100, a list of the most innovative technology providers of M2M and connected devices – Connected World Magazine

In honor of Sprint’s leadership in M2M, the CDMA Development Group (CDG) awarded Sprint the 2011 CDG Industry Achievement Award for Operator Leadership

In honor of Sprint’s leadership in M2M, the CDMA Development Group (CDG) awarded Sprint the 2011 CDG Industry Achievement Award for Operator Leadership

Sprint/M2M AccoladesWe continuously receive recognition and awards from leading third party analysts

Sprint is unbeaten among major wireless carriers for customer satisfaction and is the #1 most improved company in customer satisfaction, across all industries, over the last three years – American Customer Satisfaction Index (May 2011)

Sprint is unbeaten among major wireless carriers for customer satisfaction and is the #1 most improved company in customer satisfaction, across all industries, over the last three years – American Customer Satisfaction Index (May 2011)

Sprint ranks #1 in overall satisfaction for wireless voice and data services among large business customers - Yankee Group U.S. Carrier Satisfaction Survey, 2010

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Thank You!!