Confidential File

BEC Technologies, Inc.

LTE Product Solutions

and Roadmap

September 2015

December 2015Jeff Newman - VP Sales M2M/IoT Solutions – jnewman@bectechnologies.net

Executive Summary

“How to Insure You Select the Right Device Architecture

in the Transition to LTE from 2G.”

2 | BEC Technologies, Inc. | © 2015

The 2G sunset is well under way and for the many businesses that rely on 2G connectivity today, LTE is considered the preferred technology migration path. LTE is the latest generation cellular network technology, and the fastest growing standard in wireless communications history. With the mass-market expansion of high-speed wireless data connectivity, LTE is the key enabler of today's data revolution. LTE delivers significant advantages such as higher spectral efficiency, faster data rates, reduced latency, lower cost of data transmission and simpler network architecture.

3,745Number of LTE User Devices (UE) announced!

66+The number of operational LTE networks in

North America

450+GSA forecasts for the number of commercially launched

LTE networks by the end of 2015

692 Operators investing in LTE in

181 countries

442 Commercial LTE networks in

147 countries

LTE Market Update

Compiled from the GSA Evolution to LTE Report: http://www.gsacom.com

3 | BEC Technologies, Inc. | © 2015

Network Architecture Comparison

PCRF

S-GW P-GW

HSSeNodeB

eNodeB

MME

UE

Internet, IP Services

EVOLVED PACKET CORE (EPC)E-UTRAN

HLR / VLR

SGSN GGSN

BSC

BSC

SMSC

ME

Internet

BSS BASE STATION SUBSYSTEM

GMSC

BR / AuC

PSTN

NSS NETWORK SWITCHING SYSTEM

BTS

BTS

BTS

BTS

2G/GSM

4G/LTE

4 | BEC Technologies, Inc. | © 2015

LTE Application InterfacesSMS messaging is a mission critical application for 2G M2M devices. SMS messages are used for data collection , alerts, device control, event triggers and data transmission not just between devices but also from devices to human beings.

How are SMS messages handled in LTE?• SMS is fully supported over LTE, there are two method dependent on carrier choice.

• SMS over IP as defined by 3GPP Rel. 7 (for carriers utilizing IMS) • SMS of SGs, intended to be a transition solution for environments without IMS. This

hybrid approach transmit native SMS from CS infrastructure over the LTE radio network.

How is 2G network location (GPS) affected?• A-GPS is considered the primary positioning technique

In LTE. Enhanced Cell ID and OTDOA as fallback methods

Modes

Method

Speed

Accuracy

A-GPS

Network

GPS

Satellites

1m5 to 50m

Multi-path

Additional Application Interfaces• TCP/IP (v4/v6)• UDP/IP• DHCP• HTTP• NEMA• GPS•TAIP/TSPI• IMS5 | BEC Technologies, Inc. | © 2015

Antenna Considerations

Multiple input multiple output (MIMO) technology is an integral part of LTE. Multiple antennas achieve higher link gain leading to faster data rates, increased network capacity, and better reliability.

Description

Single Antenna

Transmit Diversity

Open Loop Spatial Multiplexing

Closed Loop Spatial Multiplexing

Multi User MIMO

Closed Loop Single Layer Precoding

Linear Array Beamforming

Enhances

None

Gain

Capacity

Capacity

Capacity

Gain

Gain

Modes

1

2

3

4

5

6

7

All LTE UEs are configured with a transmission mode to determine how downlink data transmissions are processed. TM modes are determined based on UE and eNodeB capabilities.

6 | BEC Technologies, Inc. | © 2015

Since single antenna operation in LTE are not defined in 3GPP for pre-release 12 devices , integrators are strongly advised to consider the use of two antenna solutions and only deploy single antenna devices where absolutely necessary.

Single antenna implementations are supported LTE. One receiver antenna is equivalent to a 4.5db sensitivity reduction and limits maximum effective throughput.

Device Security Considerations

• SPI (Stateful Packet Inspection) Firewall• NAT (Network Address Translation)• VLAN (Virtual LAN)• VPN (Virtual Private Networks: IPSec, GRE, PPTP, L2TP)• Filtering (IP, MAC, URL)• ACL (Access Control List)• HTTPS (local and remote)• SSH (local and remote)• Failover/Load Balance

LTE devices or UEs (user equipment) are considered the weakest element on the LTE architecture as the mobile network operator has the least control over its security parameters. Below are industry security standards and controls to enable of UEs

70%Vulnerable to Attack

70% of M2M Devices contain serious vulnerabilities. Issues such as: password security, lack of transport encryption, insecure web interface and general lack of user access permissions.

Compiled from HP IoT State of the Union Study7 | BEC Technologies, Inc. | © 2015

Device Certifications

Complex and costly process with carrier specific testing and requirements

Certification Time Frame Cost

FCC 10-12 weeks $3 - $6K

PTCRB

2-4 weeks (data only single band)

4-6 weeks (with voice or multi-band antenna)

$16-$20K

$40-$50K

Wi-Fi Certification (Converged Wi-Fi Devices)

1-2 weeks$15K for lowest level Wi-Fi Alliance membership $9K for Wi-Fi Certification test

RF Performance/OTA 1-2 weeks $5-$20K

AT&T 3-4 weeksNo Cost (using approved module)

100K+ (non-approved module)

Verizon 8-12 weeks Upwards of $80K, dependent on 3rd party lab

Sprint 4-6 weeks No Cost on first device

Cost Assumes: - Passing on 1st attempt - Does not include labor costs 8 | BEC Technologies, Inc. | © 2015

9 | BEC Technologies, Inc. | © 2015

Easing the Migration

SpecificationsRel-8/9/10

CAT 3-6

Rel-8

CAT -1

Rel-12

CAT-0

Rel-13

CAT-M

Downlink 100 to 300Mbps 10Mbps 1Mbps 300kbps

Uplink 50Mbps 5 Mbps 1Mbps 300kbps

Max # of downlink spatial layers 2 (4 CAT-6) 1 1 1

Number of US RF receiver chains 2 2 1 1

Duplex mode Full Full Half Half

UE receive bandwidth 20Mhz 20Mhz 20Mhz 20Mhz

Maximum UE transmit power 23dBm 23dBm 23dBm 23dBm

Mobility High High Mid Mid

Timeframe Today 2H 2016 EOY 2016 EOY 2017

Customers can continue to maximize investments of their existing legacy devices by migrating in a series of logical steps. With options such as multi-mode/multi-band, 2G/3G fallback, LTE can support services in use today. Starting migration with highly capable devices today in early deployments, will drive design decisions to the lower cost higher volume deployments.

Cloud Connectivity Services

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Regardless of size and complexity of M2M deployments, a remote management platform is essential to simplify device access, streamline and speed up deployment, lower support expenses and maximize the operational efficiency and profitability.

M2M Management Platforms should include:• Device provisioning and Control • Real-time signal quality measurements• Comprehensive firmware OTA capabilities• Device Backup, Reboot, Reset and Restore • Status and Performance Monitoring• Diagnostic Troubleshooting• Traffic Analyzer & Bandwidth Monitoring• Application Programming interfaces (APIs)to link other back-end tools or services

Transition with Confidence

11 | BEC Technologies, Inc. | © 2015

LTE will continue to be a catalyst for innovation and growth in M2M communications. Companies need to start their migration plans to LTE now. BEC Technologies is focused on driving M2M adoption globally and across vertical market segments. Our comprehensive product offering allows customers to deploy machine-to-machine (M2M) solutions quickly, cost effectively with a lower the total cost of ownership (TCO). BEC Platforms:

Ensure Service Availability• A platform with built-in redundancy and fault tolerance for reliable continuous operation

Scalability and Robustness• Accommodations for an increase in demand without impacting service delivery

Longevity• Long product/technology lifecycles, expect device field operation of 10 years or more

Security• Mechanisms to prevent and protect against the latest security threats,

unauthorized access and protect data

Open Platform • Platforms based on open standards, fully documented APIs allowing quick

reaction to market dynamics and integration of emerging opportunities/technologies

Robust Data Management• Real-time information and historical analysis to accurately measure performance

improvements, as well return on investment over time

75%Globally M2M devices still GSM-only

2G

4G/LTE

3G

Please contact BEC Sales representative

or email to us at sales@bectechnologies.net

for more information!

Thank You!

12 | BEC Technologies, Inc. | © 2015

Jeff Newman VP Sales M2M/IoT Solutions

BEC Technologies, Inc. jnewman@bectechnologies.net

Thank You!