M2M: Catalyst for Change and Growth Wayne Ward Vice President, Emerging Solutions Group Sprint Nextel February 2, 2012 2 The M2M World is Expanding Fast • 100 million M2M connections in U.S. by 2016 • 412 million embedded/M2M devices globally by 2014 • 2.1 billion M2M connections worldwide by 2020 (Analysys Mason) (ABI Research) (Juniper Research) “M2M represents the single biggest opportunity for the wireless industry in the next decade.” - Yankee Group, April 2011 3 Machine-to-Machine Benefits Sustainability • • • Reduced carbon footprint Increased energy efficiency Enabling electric vehicles Productivity • • • Fleet management/asset tracking Remote patient monitoring Mobile learning Safety • • • Protecting our communities Reducing distracted driving Making travel safer 4 Where the growth is… CONNECTED TRANSPORTATION 2011-16 CAGR: 36% Source: Sprint estimate 5 Where the growth is… CONNECTED MACHINES, SCREENS & THINGS 2011-16 CAGR: 32% Source: Sprint estimate 6 Where the growth is… CONNECTED METERS, SENSORS & ALARMS 2011-16 CAGR: 28% Source: Sprint estimate 7 Where the growth is… CONNECTED PERSONAL DEVICES 2011-16 CAGR: 20% Source: Sprint estimate 8 Key M2M Segment Categories Segments Sub - Segments Connected Transportation Fleet Mgmt. / Telematics In-Vehicle Communications Usage-Based Insurance (UBI) Public Safety / Emergency Connected Meters, Sensors & Alarms Energy/Utilities Water / Oil / Gas Security and Surveillance Automation and Control ATM / POS / Access / Vending Digital Signage & Kiosk Asset Tracking Telemedicine Connected Machines, Screens & Things Connected Personal Devices 9 Personal Gaming & Tracking Personal Health Management Copiers, Printers, Scanners Connected Transportation Solutions Track and Trace Vehicle Diagnostics Key features: • Real-time monitoring of vehicle location, speed, idle time and stop time • Monitoring of vehicle condition and engine diagnostics • Route optimization • Computer aided dispatch • In-vehicle access to critical information, reporting • Instant alerts of speeding, location violations Driver Behavior 10 In-cab Wi-Fi Real M2M Success: Fleet Management Next generation vehicle connectivity can improve operating costs by 13% or more. Enterprise Fleet’s Mobile Resource Manager was rolled out in 2010 and already serves 400+ customers. 11 Real M2M Success: Emergency Services According to the American Heart Association, early access to advanced care is a crucial link in Cardiac Chain of Survival. ProTransport-1, Sprint and Feeney Wireless are outfitting ambulances with location-based connections to enable faster response times. 12 Real M2M Success: Retail The typical household averages $90 in coins, adding up to about $10 billion dollars. Consumers are turning coins into cash at 20,000 Coinstar kiosk locations nationwide. 13 Real M2M Success: Energy Mgmt. Smart Grid technologies are expected to save more than $20 billion by 2030 through reduced electricity consumption. Sprint’s retail store pilot is yielding energy savings of better than 28% with SmartLabs INSTEON solution. 14 Real M2M Success: Digital Signage Sprint and partners collaborating on interactive digital media and anonymous video analytics trials. 15 Real M2M Success: Security • When video cameras used, property crime is reduced by twothirds. (OJO Technologies) • Cameras in Montreal Metro reduced crime 20%. (OJO Technologies) • Real-time surveillance keeps investigators a step ahead. • Improves enterprise facility security. 16 Enabling the M2M Ecosystem Solutions Developers M2M Resources M2M Collaboration Center Partners & Customers Integrators OEMs Sprint sprint.com/m2m 17 M2M Command Center Recognition for Sprint M2M #1 Carrier in North America (#2 out of 12 globally) for M2M Overall Excellence, Global M2M Scorecard - 11/2011 2011 North American Customer Value Enhancement of the Year Award for Machine to Machine - 11/2011 18 Sprint is Your Partner for M2M Open M2M Collaboration Center Open Device Initiative Open Business Models 2G, 3G, 4G Commitment Network Vision: Multi-mode Platform Dominant LBS Position & Partnerships Dedicated and Trusted M2M Team Sprint Command Center & MCC Proven Experience and Support 19 Thank You To learn more, go to www.sprint.com/m2m 20