WEBINAR
DON’T WAIT FOR THE SUNSET
TO PROTECT YOUR RMR
Join us for this important webinar on the rapidly changing world of
communications in the security industry. Learn how to protect your RMR
by converting your alarm communications technology to private wireless
mesh radio before feeling the impact of obsoleting technologies.
Wednesday | February 4, 2015
AES Proprietary
PANELISTS
Bill Kieckhafer
Cliff Thompson
President & COO
Regional Sales Manager
North Central US/Canada
bkieckhafer@aes-intellinet.com
cthompson@aes-intellinet.com
AES Proprietary
AGENDA
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Introductions
AES Corporation at a Glance
Alarm Communication Technologies Overview
Value Proposition vs. Sole Path Cellular
AES Technology vs. Other Fire Alarm Communications
How Mesh Radio Technology Works
AES Product Offerings
Industry Standards
The AES-IntelliNet® Competitive Advantage
Summary
Q&A
AES Proprietary
AES CORPORATION AT A GLANCE
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Established in 1974
Privately Held
Corporate Headquarters located in Peabody, MA
Leading manufacturer of private wireless alarm
communications equipment
• AES holds the seminal patents on AES-IntelliNet®
wireless mesh radio technology
• AES-IntelliNet systems are deployed in over a half
million locations worldwide
AES Proprietary
ALARM COMMUNICATIONS TECHNOLOGIES OVERVIEW
• Plain Old Telephone System (POTS) failing
Who knows what’s digital or analog anymore?
• AlarmNet-A discontinued
• Advanced Mobile Phone System (AMPS)
In 2008, the FCC established sunset clause for
AMPS Cellular Networks having a significant impact
on the alarm monitoring industry
• 2G Cellular will sunset…and sunset
Will sunset in December 2016 at the latest
• 3G/4G Cellular
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THE RAPIDLY CHANGING WORLD OF COMMUNICATIONS
Plain Old Telephone System (POTS)
• According to the Wall Street Journal
report dated 3/19/2014, 2 out of 5
residences relied on wireless
communications not POTS
• NFPA-72 Code Compliance for Fire
• Toll Free Service Connectivity Issues
Copper to fiber conversions are
currently an ongoing issue for signal
transmission and call completion
AES Proprietary
“Not picking an alternative
communication technology to
POTS isn’t an option because
dealers are going to lose and
have been losing them for
some time now. You need to
change. You need to move off
of this one. This isn’t
something you just let the
younger kids do. You either
need to move and do
something different or sell
your company to somebody
that will.”
~Bob McVeigh
Security Solutions
SD&I, October 2013
THE RAPIDLY CHANGING WORLD OF COMMUNICATIONS
Advanced Mobile Phone System (AMPS)
• How long ago does 2008 seem?
• How painful was that transition for your company?
• What was the cost for those upgrades (appointment
setting, truck rolls, unit cost, etc.)?
• Who paid?
• Who stayed?
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THE RAPIDLY CHANGING WORLD OF COMMUNICATIONS
2G/3G/4G…(5G slated for release in 2020)
• What did we all learn from the 2008 AMPS
conversion debacle?
• Did your company have a strategy and have one now?
• Are you ready to go through it again?
Technicians
Operators
Insanity: doing the same thing
over and over again and
Equipment Availability
expecting different results.
~Albert Einstein
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WHO’S REALLY IN CHARGE?
What is your company doing? When is it too late?
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Public or Private
Make a Decision to Go Private vs. Facing the
Risks of Public Communications for Alarms
Can your company afford to keep giving away RMR or
continue spending time allocating resources to replace
sunsetting technologies?
• Phone companies enable communications, but
compete for the same RMR
• Recurring monthly charges from communication
transport providers consume profits
• Inability to directly control communications
AES Proprietary
VALUE PROPOSITION
Fire Alarm Communications vs. Sole Path Cellular
Individual Account
YEAR 1
YEAR 2
Impact
7788F with 7795 3G/4G Sole Path 7788F with 7795 3G/4G Sole Path
Primary
UL Communicator
Primary
UL Communicator
Equipment
$569.00
$289.00
$0.00
$0.00
Service Activation
$0.00
$20.00
$0.00
$0.00
Monthly Service Cost
$0.00
$204.00
$0.00
$204.00
TOTAL
$569.00
Advantage
3G/4G
$513.00
$
$0.00
(56)
per account
AES
Impact on Dealer's Bottom Line
Annual cost of service
50
500
1000
2000
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accounts
accounts
accounts
accounts
$
$
$
$
10,200
102,000
204,000
408,000
24 Month Totals
7788F with 7795 3G/4G Sole Path
Primary
UL Communicator
$569.00
$289.00
$0.00
$20.00
$0.00
$408.00
$204.00
$
204
per account
$569.00
AES
$717.00
$
148
per account
Competitive Pricing - Sole Path
reduced profit to dealer
reduced profit to dealer
reduced profit to dealer
reduced profit to dealer
TelGuard
$
DSC
$
Honeywell iPGSM 4G $
Honeywell iGSMCFP 4G
$
289.00
262.50
457.00
294.00
AES-IntelliNet ADVANTAGES vs. GSM - COMMERCIAL FIRE ALARM COMMUNICATIONS
Zero risk of technology sunset vs. certain risk of technology sunset
Highest RMR profit potential – no third party fees
Do the math – over $500K bottom line impact ANNUALLY @ 2,500 accounts
AES Proprietary
COMPARING FIRE ALARM COMMUNICATION OPTIONS
AES-IntelliNet®
Digital
Dialer
Sole Path
Cellular
Developed strictly for use as
alarm communications
Yes
No
No
Shares technology with texting, video
viewing, music
No
Yes
Yes
Requires two means of transmission
No
Yes
No
Requires third party service fees – User
No
Yes
No
Requires third party service fees – Dealer
No
No
Yes
Certainty of network
technology sunset
0%
100%
100%
Certainty of increased cost
for service
0%
100%
100%
Requires use of non-industry owned
network
No
Yes
Yes
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HOW MESH RADIO TECHNOLOGY WORKS
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TIPS FOR BUILDING A LONG-RANGE WIRELESS PRIVATE
MESH COMMUNICATIONS NETWORK
Improve Deployment with Proper Planning
AES Corporation’s AES-IntelliStart program provides
comprehensive installation and operational training for
network deployment onsite with support every step of
the way.
AES Proprietary
TIPS FOR BUILDING A LONG-RANGE WIRELESS PRIVATE
MESH COMMUNICATIONS NETWORK
Go With Company Branded Network &
Bundled Service
• Brand the communications network that the
company RMR depends on
• Bundle services to compete in your market to
provide broader service offerings and create
stickier relationships
AES Proprietary
TIPS FOR BUILDING A LONG-RANGE WIRELESS PRIVATE
MESH COMMUNICATIONS NETWORK
Generate Communications Revenue
• Become the communications service provider
• Calculate local communication costs
• Determine a strategy to entice conversions
• Your company-owned AES-IntelliNet® private
one-way radio network is the first option for critical
event communications
AES Proprietary
TIPS FOR BUILDING A LONG-RANGE WIRELESS PRIVATE
MESH COMMUNICATIONS NETWORK
Take Advantage of Cross-Selling Opportunities
With AES-IntelliNet®
• Leverage relationships throughout your marketplace
• Use your company brand to convert new
monitoring and technology opportunities with your
AES-IntelliNet network:
Get your sticker on the door
Capture test and inspection revenue
Sprinkler service
AES Proprietary
TIPS FOR BUILDING A LONG-RANGE WIRELESS PRIVATE
MESH COMMUNICATIONS NETWORK
Stay the Course
• Be committed and understand the value in “not
having to go back”
• All commercial locations are a target for your
company monitoring service
• Eliminate phone lines and offer a guarantee of service
to stay within the customer operating budget
AES Proprietary
TOOLS FOR BUILDING A LONG-RANGE WIRELESS
PRIVATE MESH COMMUNICATIONS NETWORK
Use Tools Available for Success
• 7245 AES-Network Connectivity Tool (NCT)
• 7275 AES-Network Management System (NMS)
• 7041 AES Handheld Programmer
AES Proprietary
AES PRODUCT OFFERINGS
• Subscribers / CPE
Burglary 7058
Fire 7788/7744 (UL/ULC listed and NFPA compliant)
• Accessories
Burglary 7094 AES-IntelliPro
Fire 7794 AES-IntelliPro
Interactive 7659
• Central Station Receivers
AES-MultiNet 7705i (UL/ULC listed)
IP Link 7170 (UL/ULC listed)
• New AES-Network Management System (NMS)
7275
AES Proprietary
INDUSTRY STANDARDS
• AES-IntelliNet® meets the following
compliance standards:
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NFPA 72 Compliant (in code since 1985)
UL Standard 864, Edition 9
UL Standard 1610
UL Standard 2017
UL Standard 609
UL Standard 827
UL Standard 681
UL Standard 365
• For more detailed information, please visit our
Fire Marshal Resources page on the company website:
http://www.aes-intellinet.com/products/fire/fire-marshal-resources/
AES Proprietary
THE AES-INTELLINET® ADVANTAGE
High RMR
and Low
Total Cost of Ownership (TCO)
Scalability and Reach
Owner-operated
and controlled
private wireless
mesh networks
Non-sunsetting
Technology
Highly Reliable,
Fast Communications
AES Proprietary
TURN AES-INTELLINET® INTO YOUR COMPETITIVE EDGE
AES is the industry’s only provider of long-range private
mesh radio alarm communications technology that is
completely controlled by AES-IntelliNet network owners
and operators. By partnering with AES and leveraging
our 40 years of security expertise, you can successfully
expand your business with world-class life safety,
property and asset protection communication services.
AES Proprietary
PROVEN MESH TECHNOLOGY
Case Studies
AES-IntelliNet® networks stood the test of time and
held up against the elements through hurricanes and
wildfires when traditional emergency communication
networks failed:
• 2012 Hurricane Sandy
• 2008 New England and upstate NY ice storms
• 2007 California Wildfires
• 2005 Hurricane Katrina
AES Proprietary
PROVEN MESH TECHNOLOGY
Customer Testimonials
“We were able to sustain our
connection during and after
Hurricane Sandy with 99% of
our customer base and our
system never went down. We
only lost one radio due to an
excessive amount of days
without AC power at the
location from the storm.”
~Eliot Barry
B&H Security
“We don’t depend on anyone
else or pay anyone fees for the use
of the AES network. It’s ours and
we, alone, are accountable for it.
AES-IntelliNet® enables better RMR
than anything on the market.”
~Jeff Kahn
Wayne Alarm Systems
AES Proprietary
DON’T WAIT FOR THE SUNSET TO PROTECT YOUR RMR
Summary
• Please contact your AES Specialist to get started with
your customized conversion plan today:
sales@aes-corp.com or (800) 237-6387
• Follow us on
:
@CorpAES
• Like us on
:
facebook.com/CorpAES
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Q&A
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THANK YOU!
AES Proprietary 2014