Communications Review - 3G-4G - What it means, What you Must Know and How to Maximize your Opportunity

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Communications Review - 3G-4G - What it means, What you Must Know and How to Maximize your Opportunity
Communications Review

3G-4G – What it means, What you Must
   Know and How to Maximize your
            Opportunity
Communications Review - 3G-4G - What it means, What you Must Know and How to Maximize your Opportunity
Agenda

    • 3G/4G and Combination Technologies
      - Longevity
      - Carrier Drivers
      - Internet and Wi-Fi
    • Total Connect
      - What drives its success
      - What are the opportunities for you
    • Incentives to Upgrade 2G Base
      - Radio upgrade program
      - Consist-of-kits
    • Additional Services
      - GPS
      - Future opportunities for growth

    Multiple Plans to Address All Segment Needs

2                                            Honeywell Confidential   File Number- 2
Communications Review - 3G-4G - What it means, What you Must Know and How to Maximize your Opportunity
Wireless Network Evolution (AT&T)
              AT&T has continuously improved network speeds to provide you with
                            the best mobile broadband experience

                        Honeywell chose 4G (HSPA+) as it is
                                                                                                                         Theoretical Peak
                        more efficient for the carriers while                                          LTE               73 Mbps
                        providing 3X the speed of 3G. This may
4                                                                                                                                        Can Deliver 4G
                        result in greater longevity due to                                                   Theoretical Peak
                                                                                           HSPA+             21.6 Mbps
                                                                                                                                         Speeds with
G                       prioritization of this network by carriers!                                                                      Enhanced Backhaul*

                        Competition stops                                               Theoretical Peak
                                                                    HSPA
      Faster Speeds

                                                                                        7.2 Mbps
                        short of HSPA+ and
                        therefore is NOT
3                                                                    Theoretical Peak                              Consistent with worldwide
                        offering 4G                    HSDPA         3.6 Mbps                                       global standards for GSM
G                       technology!!
                                                                                                                    device
                                                       Theoretical Peak
                                         UMTS          384 Kbps                                                    Lets you use your device
                                                                                                                    globally

                                         Theoretical Peak
                             EDGE        237 Kbps
2
G                     GPRS          Theoretical Peak
                                    48 Kbps
                                                                                                Time --

                             Past                                                                Present                    Future

    All future activity depicted in this presentation for informational purposes only and is subject to change by AT&T without further notice.
    Based on theoretical peak speeds. Actual speed experienced will be less.
    •Limited 4G LTE availability in select markets. 4G speeds are delivered by HSPA+ (with enhanced backhaul) or LTE, where available.
    •Compatible device and data plan required. LTE is a trademark of ETSI. Learn more at att.com/network.
Communications Review - 3G-4G - What it means, What you Must Know and How to Maximize your Opportunity
ITU says LTE, WiMax and HSPA+ are now officially 4G

             The International Telecommunications Union has expanded its definition of 4G service to include
             WiMax, LTE and HSPA+.

             This decision comes a couple of months after T-Mobile and Sprint had started calling their
             respective HSPA+ and WiMax offerings 4G in advertisements. Verizon has started promoting its
             LTE service as a 4G connection. While AT&T is the only one of the four major U.S. operators not to
             promote a 4G pipeline, the carrier did dispute T-Mobile's claim of owning the largest 4G network in
             America, as we reported. And sprint even said that it had the only real 4G network in the U.S.

             Under the old definition, only WiMax2 and LTE-Advanced were qualified to be called 4G networks.
             It is possible that the ITU took notice of the bickering amongst the top U.S. carriers and decided to
             make the change. The press release from its December meeting reads, "Following a detailed
             evaluation against stringent technical and operational criteria, ITU has determined that “LTE-
             Advanced” and “WirelessMAN-Advanced” should be accorded the official designation of IMT-
             Advanced. As the most advanced technologies currently defined for global wireless mobile
             broadband communications, IMT-Advanced is considered as “4G”, although it is recognized that
             this term, while undefined, may also be applied to the forerunners of these technologies, LTE and
             WiMax, and to other evolved 3G technologies providing a substantial level of improvement in
             performance and capabilities with respect to the initial third generation systems now deployed. The
             detailed specifications of the IMT-Advanced technologies will be provided in a new ITU-R
             Recommendation expected in early 2012."

             Now that we have the official word from the ITU, this should bring to an end the question of which
             carrier has a real 4G offering for its customers. According to the new definition, Verizon, AT&T,
             Sprint and T-Mobile all have a 4G network.

                  Honeywell Provided the First 4G Solution

4                                            Honeywell Confidential                                               File Number- 4
Communications Review - 3G-4G - What it means, What you Must Know and How to Maximize your Opportunity
T-Mobile to Sunset MetroPCS's CDMA Network by 2015

               Yesterday, October 3, 2011 11:04 AM by Eric M. Zeman
               T-Mobile USA and MetroPCS today outlined their plans to
               transition their disparate GSM/HSPA+ and CDMA/LTE networks
               into a single HSPA+/LTE network within several years. Speaking
               to investors, the companies explained that MetroPCS's 1X CDMA
               network will be turned off by 2015. Thanks in part to the high
               rate of device turnover within MetroPCS, they believe it won't be
               difficult to transition customers from MetroPCS's CDMA-based
               handsets to ones using the same GSM-based technology offered
               by T-Mobile. T-Mobile is already in the process of re-farming its
               1900MHz spectrum for use with GSM/HSPA+ rather than
               GSM/EDGE. With MetroPCS's 1900MHz CDMA network turned
               off, it could then be used to supplement T-Mobile's HSPA+
               coverage. The combined T-Mobile/MetroPCS will eventually offer
               GSM/HSPA+ entirely in the 1900MHz band, and LTE 4G in the
               1700MHz AWS band.

               Honeywell Provided the First 4G Solution

5                                    Honeywell Confidential                        File Number- 5
Communications Review - 3G-4G - What it means, What you Must Know and How to Maximize your Opportunity
Why LTE is Not Yet Ready
    Have: 700 MHz band 17 (in some of the country)
          (700 MHz Lower A, B and C blocks)
    Plan: 1700/2100 MHz band 4 (in much of the country)
          Currently running UMTS and HSPA in this spectrum
          Likely need more spectrum to deploy LTE in some markets

                                             LTE deployment started
                                                   4G LTE and enhanced 3G service launched in Atlanta, Dallas,
                                                   Houston, Kansas City and San Antonio
                                                   Includes surrounding markets
                                             Expansion by end of 2013
                                                   No definitive schedule announced yet

    Have: 700 MHz band 13 (“in the entire US” – large footprint)
          This is all of the 700MHz Upper C, 10 MHz up & down = 20 MHz
          700 MHz band 17 (“in many Eastern US markets”)
    Plan: But has offered up their Lower A, B and E spectrum to get AWS
          1700/2100 from SpectrumCO (particularly in Western US)

       Different Frequencies, Different Bands, High Price!

6                                                 Honeywell Confidential                                         File Number- 6
Communications Review - 3G-4G - What it means, What you Must Know and How to Maximize your Opportunity
US Spectrum Overview (Fall 2012)
     Freq.        Verizon              AT&T              Sprint             T-Mobile           US Cellular        Clearwire      MetroPCS         Satellite
                Today    Future   Today   Future   Today     Future       Today    Future      Today   Future   Today   Future   Today   Future     Future

    700 MHz
                 LTE     LTE       —          —      —            —        —        —           —       —        —       —        —       —          —
    Upper C

    700 MHz
                Owns     Up for                                                                Owns                              Owns
     Lower                        LTE     LTE        —            —        —        —                  LTE       —       —               LTE         —
                 A,B      sale                                                                 A,B,C                              A
     A,B,C

     700 MHz    Owns     Up for   Owns
                                           ???       —            —        —        —           —       —        —       —        —       —          —
    Lower D,E    E        sale     D,E

                                                              LTE-
    800 MHz                                         iDEN
                 —        —        —          —               Adv          —        —           —       —        —       —        —       —          —
     iDEN                                          cleared
                                                             1X-Adv

    850 MHz               LTE              LTE                          Owns 3                 CDM      LTE
                CDMA              GSM                —            —                 —                            —       —        —       —          —
    Cellular             CDMA             HSPA                          counties                A      CDMA

     1.6 GHz                                                                                                                                        Light2
                 —        —        —          —      —            —        —        —           —       —        —       —        —       —
       MSS                                                                                                                                         LTE-Adv

     1.7/2.1    Owns                                                               LTE-                                          LTE
                         Wants             LTE
      GHz       A,B,C,            HSPA               —            —      HSPA       Adv        LTE     LTE       —       —       CDM     LTE         —
                          LTE             HSPA
      AWS         F                                                                HSPA                                           A

                                                              LTE-                 LTE-        LTE
     1.9 GHz              LTE     UMTS     LTE                           GSM                            LTE                      CDM
                CDMA                               CDMA       Adv                   Adv        CDM               —       —                ???        —
       PCS               CDMA     HSPA    HSPA                           HSPA                          CDMA                       A
                                                             CDMA                  HSPA         A

                                                              LTE
     1.9 GHz
                 —        —        —          —     LTE       LTE-         —        —           —       —        —       —        —       —          —
     Block G
                                                              Adv

     2.0 GHz                                                                                                                                         Dish
                 —        —        —          —      —            —        —        —           —       —        —       —        —       —
       MSS                                                                                                                                         LTE-Adv

     2.3 GHz
                 —        —        —       ???       —            —        —        —           —       —        —       —        —       —          —
      WCS

     2.5 GHz                      Owns                        TDD                                                       TDD
                 —        —                ???     WiMAX                   —        —           —       —       WiMAX             —       —          —
    BRS/EBS                       in PR                       LTE                                                       LTE

    NOTE – Prior to announcement of merger of T-Mobile and Metro-PCS

7                                                                     Honeywell Confidential                                                       File Number- 7
Communications Review - 3G-4G - What it means, What you Must Know and How to Maximize your Opportunity
Why LTE is Not Yet Ready

    • Limited Module availability
      - Single band LTE (single carrier)
      - Module fallback to 3G/2G are different
    • Costs are high
      - 2X-3X what alternatives are right now
      - Volume will be driving it down soon however
    • LTE Roaming Agreements
      - Not in place yet
      - Technical and business barriers
      - Coverage good, but not yet ready for prime time
    • Diversity of Frequency Bands
      -   36 approved by ITU for use with LTE
      -   Approx 6 required in North America
      -   Approx 4 required for EU
      -   Approx 4 required for Asia
      -   Approx 12 would be needed for unified SKU

           Things Must Settle Down Before Moving to LTE

8                                           Honeywell Confidential   File Number- 8
Communications Review - 3G-4G - What it means, What you Must Know and How to Maximize your Opportunity
AlarmNet Dual Technology Advantage
                  Blend Internet (wired or wireless) and Radio for Alarms and
     Internet                            Total Connect                          Radio
                • Two technologies working as one
                • Provides best in class experience for Total Connect
                • Assures peace of mind as there are 2 technologies
                • Makes upgrading and swapping a normal service call
                • Helps minimize emergency type truck rolls on radio
                technology migrations

                  Honeywell Combination Internet and Radio Solutions
                              Single device to the network
                  Provides Seamless & Automatic use of all Technologies

    Commitment to Best Communication Solutions

9                                       Honeywell Confidential                          File Number- 9
Communications Review - 3G-4G - What it means, What you Must Know and How to Maximize your Opportunity
Best Connectivity Model

     Real-time End-to-end Connection                   Facilitates Honeywell Exclusive

           • Enhanced operability/customer experience
                    • True status automatically
                    • No refresh required…no guessing
           • Virtual keypad delivers full functionality
                      • Reduced training time/post sales support
                      • Increased serviceability:
                      • Installer programming access

           Best in Class Solution for Consumers

10                                Honeywell Confidential                           File Number- 10
Superior User Interface

      Green for Disarmed                              Red for Armed

         Enhanced Customer Experience-Loyalty-Referrals
         • Intuitive Dashboard Design
         • Customizable modules
         • Strong use of icons, colors, and graphics
         • Flat interface with simple navigation
         • Future expansion without re-training

     Best in Class Experience for Consumers

11                           Honeywell Confidential                   File Number- 11
Consistent Look and Feel

     Uniformity
         • Consistent look across all devices
          • Supports Portables, Keypad & Web
     Lower operational costs
          • Increased customer comfort level-stickier accounts
          • Less training and support

           Honeywell Exclusive – Least Amount of Training

12                                       Honeywell Confidential   File Number- 12
Honeywell – Only End-to-End Solution
     5800 Wireless Sensors                                     Total Connect Video

                                    Alarm Transport

     Control Panels                                                 Remote Control

                      Unmatched Total Offering
                      • Single source advantage – added stability
                      • System approach - greater consistency
                      • Ultimate Operational efficiency

       Prepared For Consumer Needs of Tomorrow

13                                    Honeywell Confidential                   File Number- 13
Central Station/Dealer Incentives
                                                                                                More than
                                                                                                a Simple
• Upgrade Your Base and Receive Total Connect Incentives!                                        Rebate!
   - Provides incentive for radio and hardware upgrade of other related items
   - Incents early upgrade of 2G radios – good for all parties concerned to smooth transition

                                            Incentives for 2013

                                 2G-4G Upgrade Acct Credit            $25.00

                                 Total Connect Acct Credit            $10.00

                                                                      $35.00

• Give Reason for Customer to Want to Upgrade – Increase your Revenue!
   - Position the dealer in Positive light to the end customer
   - Consist-of-Kits to drive additional revenue and RMR opportunity!
   - Dealer saves additional monies when upgrading customer to new opportunities
         Sensors – GSMV4G & 5821 Temp/Flood, GSMV4G & 5816OD, GSMV4G & 5800PIR-OD
         Video – IPCAM-W12 Indoor camera, WAP-PLUS
         User Interface – GSMV4G & 6150RF, GSMV4G & Tuxedo, GSMV4G & 5802wxt-2
Consist-of-Kit Configurations

     Item                Description                                   1 Lot      Kit Price   Kit Savings
     Radios

     GSMV4G              Standalone 4G radio                          $194.00
     GSMX4G              VISTA 4G radio                               $180.00
     Sensors
     5821                wireless temp and flood                      $42.99       195.00       $41.99
     5816OD              outdoor transmitter                          $58.99       209.00       $43.99
     5800PIR-OD          Outdoor PIR                                  $214.99      329.00       $79.99
     5800CO              wireless CO detector                         $89.15       229.00       $54.15
     Video
     IPCAM-WI2           TC camera (white)                            $131.95      295.00      $109.70
     IPCAM-WI2B          TC camera (black)                            $131.95      289.00      $115.70
     WAP-PLUS            Wireless access point                        $78.75
     User Interfaces
     6150RF              Fixed English Keyapd/Receiver                $114.99     $249.00       $59.99
     5834-4              Key Fob                                      $39.99      $195.00       $38.99
     5802wxt-2           Panic Button                                 $43.99      $199.00       $38.99
     6150rf/5834-4/GSMV Wireless Control Kit                                      $279.00       $69.98
     Tuxw                Graphic Touchscreen                          $353.99     $449.00       $98.99
     Tuxwifiw            Tux Wi-fi                                    $403.99     $489.00      $108.99

15                                                       Honeywell Confidential                             File Number- 15
Total Connect Location Services

     Teen Drivers/Elderly                                       Fleet Lite- Service Vehicles

                            Vehicle Tracking
                            • Residential/Commercial vehicles
                            • Simple add-on
                            • Stand-alone service

                             Driving More RMR
16                                     Honeywell Confidential                                  File Number- 16
Total Connect Location Services

        TCVT

        Vehicle Tracking
        • Easy installation with plug-in OBD (on-board diagnostics) device
        • Compatible with most vehicles built since 1996

                   Plug and Play Installation

17                                     Honeywell Confidential                File Number- 17
Vehicle Tracking

              New Location Services Module

     Service Differentiator vs. competition

18                  Honeywell Confidential    File Number- 18
Vehicle Tracking

                 Tracking Features
                 • On demand locating
                 • Location history
                 • Speed alerts

     Delivering More in Same TC Interface

19                 Honeywell Confidential   File Number- 19
Vehicle Tracking

     Geo-fence Notifications
     • Track entry/exit of designated areas
     • Ex. School /home/service area

       Easy to See, Easy to Locate

20                     Honeywell Confidential   File Number- 20
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