The document discusses the growing market for machine-to-machine (M2M) and internet of things devices. It notes that while forecasts for the number of connected devices by 2020 range from 10 billion to over 100 billion, adoption has been limited by challenges such as device and network compatibility issues, complexity of the solutions, and a lack of understanding by customers of the ROI potential. Mobile network operators have aggressively entered the M2M space focusing on enterprise customer needs in verticals like utilities, healthcare, automotive and more. Larger players take a more active role in application development while others focus on connectivity.

1. www.cartesian.com
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Cartesian Perspectives
Accelerating Monetization of
M2M/Connected Devices
February 2013

2. 2Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
The M2M market is in a significant growth stage, with the opportunity concentrated in
select use cases in enterprise verticals
M2M Overview
Source: Infonetics Research, ABI, Cartesian
60
85
120
170
240
339
50
69
95
131
180
248
110
154
215
300
420
587
0
100
200
300
400
500
600
700
2009 2010 2011 2012 2013 2014
WWM2MConnectedDevices(inMil.)
Consumer Enterprise
Connected M2M Devices, 2009-2014
(Worldwide, in M)
CAGR
40%
38%
41%
“4.2 billion consumer connected devices by 2020”
— Machina, 2011
“10 or more mobile Internet devices will be used by each
household”
— Softbank Corp, 2010
“22 billion internet connected devices by 2020”
— IMS Research, 2010
“50 billion connected devices by 2020”
— Ericsson, 2010
“50 billion connected devices by 2025”
— GSMA, 2010
“100 billion cellular devices will be connected by 2020;
telecoms companies always underestimate the figure at
50 billion”
— Gerhard Fettweis, Vodafone Chair Professor, May 2010
“100 billion connected devices in the world”
— IBM, 2010
“One trillion Internet-connected devices”
— IDC, 2010
But some believe it could be higher…

3. 3Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Recent trends show innovation and growth drivers in M2M solutions, though cost,
network standards and customer knowledge are still issues
Recent Trends in M2M
Key
Drivers
in M2M
Source: Cartesian, ABI, GTB News
Key
Inhibitors
in M2M
Acceleration in operator
partnerships
• Increasing number of M2M operator alliances
• Seven global MNOs partnering to offer global M2M services for MNCs via Jasper Wireless
• MVNOs establishing partnerships with solution providers to address complex M2M niches
Global M2M opportunities still
in early stage
• Total market is forecasted to grow at 40% CAGR (# of connections) over the next 3-5 years
• Global adoption and solution scale is supported by improving global coverage, particularly in
key logistics centers such as China and India
ROI models being established
• Falling module costs and M2M product maturation delivering improved ROI on solutions,
accelerating adoption in many areas
Open development initiatives
• Verizon/Vodafone, AT&T, Orange, and Telefonica have all launched open development
initiatives to enable/accelerate M2M solution development
Regulation/investment
promoting M2M
• In-car emergency eCall in Europe (2014); Anti-theft vehicle tracking in Brazil (2011)
• Smart metering legislation in US and Europe
Module cost
remains a challenge
• With M2M modules ranging from $25 to $90, cost remains a major inhibitor to adoption,
although increased scale and convergence on LTE may help in the mid-term
Customer sophistication
is still developing
• Understanding of M2M and its ROI is still emerging among enterprise customers
• Complexity limits customer ability to rapidly identify ROI opportunities
Network and chipset
compatibility
• “Single SKU” difficult to achieve for M2M solution builders as difference between CDMA/GSM
and spectrum bands require increased cost and complexity
High-throughput
apps still limited
• Adoption of high-throughput use cases such as video surveillance is limited
• Dynamic displays are beginning to see significant traction, though in limited use cases
• Complex value chain – solutions require multiple players
• Fragmented market with few dominant players and much confusion regarding player roles
• Breadth complicates task of prioritizing and developing solutions
Ecosystem complexity and
solution/application breadth
1
2
3
1
2
3
4
5
4
5
M2M Drivers and Inhibitors

4. 4Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Many players are involved in assembling and delivering M2M solutions to the market,
making execution much more challenging than for basic mobile services
M2M Value Chain
Source: Cartesian
M2M Value Chain and Illustrative Vendors
•Consulting,
design
integration and
deployment
support services
•Security
solutions and
consulting
•Field testing
•Chip-sets and
modules that
power M2M
devices
–Sensors
–Actuators
–Comms
equipment
•Manufacture
and sell
hardware with
M2M
connectivity;
includes
modules with
chipsets,
memory, OS and
firmware
•Integration with
customer CRM,
ERP, etc.
•Account and
device
management
portals
•Business
customer or
individual
consumer
•Tower radios,
network
switches, etc.
that support
M2M services
•Core network
operations
•Monitor and
ping network to
ensure devices
are functioning
as required
•Back end
provisioning and
configuration
•Rating and billing
of M2M services
•Application of
business/ security
role
•Monitoring and
back end analytics
•Purchase M2M
connectivity
wholesale and
re-sell
•May provide
cross border or
hybrid cellular/
satellite service
M2M Applications
(Device + Software)
M2M Service
EnablementCore Network
End User
Software &
Services Front
End
Device/
Endpoint
M2M
Air Interfaces
M2M
Deployment
Support
M2M Service
Delivery
Platform
Network
Operations &
Connection
Network
Hardware
MVNOs

5. 5Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
MNOs have aggressively entered the M2M segment, mostly starting with their
enterprise customers’ needs
• Sprint has the smallest M2M customer base, likely a result of late global expansion
US MNO M2M Offerings
Sources: Berg Insight, Ovum, Carrier news rooms, Cartesian
xx xx
13.1M (4Q11) 8.6M (4Q11)2.5-3.5M (4Q11)
xx
100s of dedicated personnel
Vertical-oriented directors manage
top M2M accounts
• 2 M2M-focused groups (business &
consumer)
• Partnership with Jasper Wireless provides
allows for large-scale deployments & end-
to-end solutions
• Also works with VARs
• Organization within enterprise group
focused on M2M
• nPhase provides management console and
enables Verizon to offer end-to-end
solutions
• Streamlined, rapid device certification
• Cloud-based management platform
• Numerous partnerships for enablement &
customer acquisition
~50 in Integrated Solutions Group
# Connections
Operator
Key
Capabilities/
Strategy
Size of Org.
• Shipping and logistics
• Building automation
• Consumer devices (Kindle)
• Automotive (Nissan LEAF)
• Health care
• Digital signage
• Automotive (OnStar)
• Health care
• Utilities
• Asset tracking
• Industrial
• Government (Public safety)
• Financial services
• Entered resale agreement for M2M. cloud
application dev. platform with Axeda in
Jan. 2012
• Announced single-SIM offering for device
manufacturers supported by Jasper
Wireless in Feb. 2012
• Announced creation of three M2M
development centers in fall 2010
• Announced partnership with Jasper
Wireless in spring of 2009
• Purchased last 50% of nPhase (Jan. 2012)
• Entered strategic partnership with Encore
Networks to provide M2M solutions for
cellular transport in Jan. 2012
• Partnership with Axeda provides VZW with
important application development
capabilities (March 2011)
• Launched M2M Management Center based
on the nPhase Platform in 2010
• Announced partnership with Vodafone to
serve global customers in Feb. 2010
• Asset tracking
• Fleet management
• Security
• Digital signage
• Health care
• Utilities
• Announced partnerships with Chrysler in
Automotive and Uplink in home security
solutions
• Announced partnership with Orange
Business Services to extend M2M reach to
180 countries in Feb. 2012
• Sprint Command Center (Cloud-based
device management platform) launched in
2011
• Launched M2M development center in
Oct. 2010
Key
Developments
Vertical Focus

6. 6Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
xxxxxx
Each of the top 3 US operators has different approaches to end-to-end M2M delivery
M2M Solution Comparison
Consulting and technical sales
Integration of M2M solution
Device provisioning
and installation
Solution monitoring / reporting
Application support
Connectivity support
Applications development
Customer care
Hardware customization
and testing
Billing and reporting
Hardware manufacture
Connectivity
Carrier responsibility Mixed responsibility Partner responsibility
Key
*
Sources: Ovum, Cartesian
* The diagram represents Sprint’s retail M2M positioning
Integration
Connection
Applications
& HW
Operator
2
Sprint shares responsibilities in key
service areas like solution monitoring
and customer care with its partners
and hands off responsibilities for
application development completely
2
AT&T and Verizon are more involved in
application support and development
than Sprint
3
3
Sprint places emphasis on the quality
of its technical sales by leveraging
internal capabilities
1
Verizon is solely responsible for
provisioning and monitoring its M2M
deployments through nPhase
4
4
4
2
1

7. 7Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Globally, MNOs are partnering to offer end-to-end M2M capabilities that extend
services beyond local markets
Global MNO M2M Summary
MNO
Recent
M2M
Activity
Vertical
Focus
Key
Partners
xx
• In 2011, China Mobile
announced 10 target
verticals for its M2M
strategy and has
engaged customers in
all of target verticals
• Analysts expect China
Mobile to shift focus
from providing
customized M2M
solutions to a more
standardized solution
approach
• Telematics
• Energy/Utilities
• Security
• Partners with
“local vendors in
adjacent segments
and channels”
• Rated top global
M2M operator by
Analysis Mason for
scale, strategy, and
partnerships (Jan.
2012)
• Announced an
agreement with
Boston Scientific to
develop m-health
m2m monitoring
solutions (Mar. 2012)
• Selected by BMW to
supply M2M platform
and data services for
new cars (Mar. 2012)
xx
• Utilities
• Automotive
• Consumer
Electronics
• Digital Signage
• Health care
• Security
• Sold M2M platform
assets (Telenor
Connexion) to
Ericsson (Apr. 2012)
• Telenor maintains
M2M capabilities
through four vertical-
specific M2M units
xx
• Healthcare
• Transportation
• Energy/Utilities
• Security
• Agriculture
• Orange business
services partnered
with Sprint to provide
expanded end-to-end
international access
for Sprint business
customers (Feb. 2012)
• Qualcomm Life agreed
to use Orange’s M2M
connectivity in Europe
for its 2Net platform,
which enables remote
monitoring of medical
devices (Mar. 2012)
xx
• Manufacturing
• Retail
• Transport
• Asset
management
• Utilities
• Health care
xx
• Established a partner
portal to bring together
DT partners with
providers of hardware,
software and service,
system integration, and
end-to-end solutions
• Invested in M2M
centralized competence
center in Germany to
explore and develop
M2M solutions
• Industry analysts expect
DT to invest in a
standardized M2M
platform soon
• Transportation
• Energy/Utilities
• Security
• Retail
• Healthcare
• Partnering to extend
global M2M
capabilities
• Announced
partnership with China
Unicom to develop
end-to-end vertical
products and
commercialize M2M
Solutions (Oct. 2011)
• Partnered with Turkish
operator Avea for
development of M2M
business opportunities
(Apr. 2012)
xx
• Security
• Utilities
• Digital Signage
• Manufacturing
• Transport
Source: Ovum, company websites, Cartesian

8. 8Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
xxxxxx
Top global MNOs focus more on their area of expertise, the connectivity of M2M
solutions
Global M2M Solutions
Consulting and technical sales
Integration of M2M solution
Device provisioning
and installation
Solution monitoring/reporting
Application support
Connectivity support
Applications development
Customer care
Hardware customization
and testing
Billing and reporting
Hardware manufacture
Connectivity
Carrier responsibility Mixed responsibility Partner responsibility
Key
Sources: Ovum, Cartesian
* The diagram represents Sprint’s retail M2M positioning
Integration
Connection
Applications
& HW
Operator
Vodafone outsources application
development and support to its
partners while focusing more on
“value-add” in connectivity
2
Orange builds on the strong
consulting capabilities of its Orange
Business Services unit
3
Telefonica plays a broader “end-to-
end” role in the connectivity sub-
segment
1
1
2
3

9. 9Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
M2M enablers provide a broad range of services including data network access, M2M
platform services and deployment support
M2M Enablers
Role DescriptionCompany Recent Activity
Service Delivery
Platform
• M2M platform provider with a strong portfolio of MNO
partnerships globally
• Strategy is t partner with one major MNO in each global
market. AT&T is Jasper’s major US partner
• Recent MNO partnerships established with Etisalat and
NTT Docomo (Feb. 2012)
• One of many Telefonica technology partners for a
centralized TV everywhere ecosystem called BlueVia (Dec.
2011)
SD & Application
Development
Platform
• Verizon Wireless/Qualcomm JV providing M2M
platform services through Verizon Wireless in the US
and Vodafone in Europe
• Verizon bought out the remaining 50% of nPhase from
Qualcomm (Jan. 2012)
M2M Deployment
Support
• Feeney provides M2M transportation solutions, focusing
on public transportation, fleet management, and public
services (e.g. Law enforcement, EMS, Fire)
• Entered an agreement with Amerinet to provide
communications equipment (Feb. 2012)
Application
Development
Platform
• Axeda provides cloud-based platform services and
software for managing M2M connected devices and
implementing M2M applications
• Signed exclusive agreement to provide AT&T with M2M
application development platform (Jan. 2012)
• Working with GlobalSoft to integrate M2M data with SAP
CRM and ERP (Mar. 2012)
M2M MVNO,
Service Delivery &
App Development
Platforms
• Wyless combines M2M wireless connectivity solutions
(M2M MVNO) with M2M platform services
• Partners include Spring, Telefonica, and T-Mobile
• Partnered with DataLink Systems to provide M2M school
bus tracking systems (Dec. 2011)
• Launched Porthos 2.0, a new powerful M2M
management platform (Oct. 2011)
SD Platform &
Managed Services
• Kore primarily provides M2M network services through
a centrally managed platform
• Provides managed services and M2M solutions across a
variety of industry verticals
• Launched Quickstart Program for M2M application
developers to accelerate development, testing, and
deployment of M2M applications (Nov. 2011)
Source: IDC, company websites, Cartesian
M2M MVNO,
Service Delivery &
App Development
Platforms
• M2M MVNO with internal service delivery and
application development platforms (end-to-end
managed M2M services)
• US MNO partners include Sprint and AT&T
• Arkessa provides international cellular coverage while
Globalstar provides satellite service
• Announced a recent partnership with Transatel for
managed M2M connectivity in Europe (Jun. 2012)
• Recently partnered with MicroMed for remote
monitoring of a cardiovascular device (May 2012)

10. 10Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
M2M enablers fill key gaps working with emerging M2M players that larger platform
players do not serve
• In this rapidly evolving space, many significant opportunities come from new, smaller players
M2M Enablers
AT&T is acquiring customers through Jasper's global acquisition engine and GSM pitch to US players,
VZW through their strong enterprise/wholesale channel and Sprint through its solution providers
M2M Ecosystem Capabilities
    
    
    
    
    
    
    
    
    
Operator and Enterprise Platform
Device Provisioning and Management
Operator Billing/Reconciliation
International Device Support
Unified Platform and Reconciliation Across Borders
Cross Border Operator Alliance
IT Integration
Service Delivery Platform
Cloud Integration Services
Application/Vertical Specific Solutions & Platforms
Customer Acquisition Engine
Global Pipeline Development
US Pipeline Development
Systems Integration / M2M Device and Solution Development
End to End Solution Development Support
Hardware Integration
M2M Platform Integration     
    
    
    
Direct Support for New M2M Products     













Partners
  = Strong Capabilities = Some Capabilities = Limited or no capabilities
Source: Cartesian















11. 11Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Smart meters and M2M software application suites have been at the forefront of
hardware and chipset manufacturers’ minds in the past few years
Equipment Manufacturer Activities
Network Hardware Manufacturers Chipset Manufacturers
• Promoted software suite allowing for
efficient management of M2M signaling
traffic on GSM networks (Jul. 2011)
• Acquired M2M technology platform from
Telenor Connexion (Apr. 2011)
• Launched M2M device connection platform
(Feb. 2011)
• Exhibited smart meter M2M solutions
(deployed in the UK and an Android
powered rear-view mirror for the
automotive industry (Mar. 2012)
• Vodafone and Alcatel-Lucent teamed up to
develop smart metering in Germany (Dec.
2009)
• Deutsche Bahn selected Cinterion for
dynamic passenger information system (Apr.
2012)
• Announced application development
framework enabling application transitioning
from 2G to 3G networks (Feb. 2012)
• Exploring smart meter and micro-finance
M2M applications in India (Jul. 2011)
• Acquired global M2M division of Motorola
(Mar. 2011)
• Introduced single-stream Wi-Fi system for
M2M smart home applications (Mar. 2012)
• Launched Qualcomm Life to manage
development of mHealth platforms (Dec. 11)
Manufacturers partner to enhance the value of their M2M
ecosystem and offer solutions to their existing customer base

12. 12Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
While M&A activity in M2M has been sparse, M2M players continue to enter strategic
partnerships to expand geographic reach and innovate across verticals
M2M Acquisitions and Partnerships
Details
• Ericsson acquired Telenor Connexion, Telenor’s M2M platform (Aug. 2011)
• Telenor intends to continue providing M2M services but without in-house, end-to-end platform
capabilities
• Telenor believes the pace of innovation in M2M requires them to move up the value chain by
outsourcing platform services
• Telefonica entered an M2M agreement with Turkish MNO Avea, covering the provision of global
M2M solutions, international roaming agreements, and technology standards development
(Apr. 2012)
• The agreement includes joint development of novel M2M solutions in areas like transportation,
smart cities, home automation, energy efficiency and mHealth
• Sprint roaming agreement with Orange Business Services allows Sprint to provide global M2M
data services to multinational customers (Feb. 2012)
• Streamlines M2M customer experience by enabling global service through a single account
• Qualcomm Life will use France Telecom Orange M2M connectivity for its 2Net platform, which
enables remote monitoring of medical devices
• Qualcomm intends to leverage Orange business services M2M platform which is evolving to
connect devices and cloud-based monitoring systems for managing mHealth applications
Category
Platform
Acquisition
M2M
Roaming
Agreement
General M2M
Partnership
mHealth
M2M
Partnership
Source: Ovum, FierceWireless, Company websites, Press releases
• In July 2012, seven operators across several global markets entered a partnership to improve
global M2M capabilities and to standardize and streamline the M2M ecosystem in order to
provide cost-effective global M2M services
• Operators plan to cooperate to develop a global SIM and to offer a seamless global solution for
MNC customers
• A common, Jasper powered web interface will provide SIM management and performance
monitoring capabilities
• The partnership will also address roaming challenges, which have historically been a major
barrier to global M2M services
• Notably, the alliance excludes AT&T which will exclude M2M roaming capabilities in the U.S.
Global M2M
Alliance
(Seamless
Global M2M
Solution for
MNC
Customers)

13. 13Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
There are several enablers that will be required for M2M deployment, with some
requiring tweaking for M2M suitability
Network Enablers
 = Yes = Potentially / some applications

Source: eDevice, Cartesian
M2M Enabler Description
• Enhanced authentication and security based on
several protocols and encryption
• Strong base level standard expected, but higher
grades of security may be monetizable
Security /
Authentication 
Monetizable?
• Enables system to communicate with remote
module without module identifying itself
periodically

• Data centers that provide low cost storage
capacity fully managed by operator personnel
with security assurances
Hosting/ Shared
Storage 
• System-wide visibility into module status for
specific applications that are required to display
on/off status persistently
• Enables sensitive applications or higher priority
users to get higher service levels or preferred
access when congested
QoS 
• Enables capture of module’s locationLocation / LBS 
• Enables secure transfer of sensitive, financial
information
Payment /
Transaction 
• Use of Short Message Service to alert other
machines or humans of emergency situations
that may arise
SMS 
• Allows the module to operate on other networks
domestically and internationally
International /
Roaming 
• Enables efficient distribution of high bandwidth
content to multiple simultaneous users 
• End to end IP architecture provides enhanced
security and interoperability across wireline
services
All-IP, IMS Based
Core
• More intelligence at network edge (fast adapting
links & efficient retransmission) enhances the
ability to maintain a session
• Visibility into device’s details, remote kill,
password reset, etc.
Device
Management
• Continuous packet connectivity to efficiently
maintain sessions – avoids delays incurred for
session set-up
Always On
• Creates a tunnel between device and server for
secure communication and persistent connection
VPN 
M2M Enabler Description Monetizable?
Static IP
Addresses
Presence
Multicast
Session
Persistence
= Core = Secondary

14. 14Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Key Use Cases
M2M taxi technologies combine use cases for transaction processing, digital display
and location-based services
M2M Use Case
Illustrative M2M Use Case: Taxi Solutions
• Regulation requiring cabs to adopt credit card payments in
major cities such as New York City and Boston has driven
adoption
• Diversified offering could include tailored entertainment
solutions for limousines, buses, and other livery vehicles
• Existing network and solution providers could be
flipped/replaced over time as solutions age
• Requires hybrid pricing with always-on data connection
during the day, but off-peak offer for cost-efficient
download of display ads
• Router: Utilizes cellular routing device with integrated
cellular radio that could be installed across various classes
of livery vehicles (i.e. buses, limousines, etc.)
• Console: Uses mobile technology to streamline payment
process and provide passenger information
• Display: Provides advertising platform targeted to
consumers in specific urban areas. Currently largely static,
but could be used to collect information in the future
Solution
Description
Opportunity
Description
1. Transaction Processing:
• Streamlined payments
• Expanded payment
options
• Automatic receipt
generation
2. Digital Display:
• Passenger entertainment
• Location-specific
targeted advertising
• Interactive information
collection
3. Location-Based Services:
• Fleet management
• Passenger location
information
• Route tracking
Vendors Solutions Partners
• Credit/Debit Card Processing
• Media & Ad Content
• Interactive Passenger Maps
• Credit/Debit Card Processing
• Media & Ad Content
• Location and Dispatching
• Acquired Clear Channel Taxi
Media in 2010
Source: Cartesian, Company websites

15. 15Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Shipping is one of the more mature M2M use cases, and calls out the need for global
operator partnerships, as well as a satellite strategy
M2M Use Case
Illustrative M2M Use Case: Global Shipping
• Need for solutions that work across multiple markets
and technologies (e.g. satellite/cellular)
• Major challenges exist given CDMA vs. GPRS, spectrum
band differences, international coverage gaps, and cost
constraints
• Acquisition of a well-positioned solutions provider
could increase M2M capacity
• Leverage GPS or satellite-based endpoints to
communicate location or status of goods over a wide
geographic range
• Requires device provisioning and back-end
analytics/alerts
• Hardware components may require long battery life
and low power usage, depending on use case
Solution
Description
Operator
Opportunity
Key Use Cases
1. Global tracking capability:
• Enable companies to track
asset location and status
globally
• Permit build-once, work in all
markets (single SKU)
2. Satellite-based tracking:
• Remote area coverage (i.e.
mining application)
• For applications such as
transoceanic container or
mining asset tracking
3. North America cross-border:
• Network partnerships with
Canadian and Mexican
providers
• Offers both cellular and satellite
• Integrated devices with both
GSM and CDMA capabilities
• Satellite-only provider (GLS)
• Customized tracking solutions
• Multiple network options
• Versatile cellular-only provider
• Established partnerships with
international carriers
Vendors Solutions Partners
Source: Cartesian, Company websites

16. 16Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Consumers also have use cases, although needs are often covered by alternative
methods and technologies such as WiFi or Bluetooth combined with a smartphone
M2M Use Case
Illustrative M2M Use Case: Consumer Tracking Solutions
• Substantial consumer adoption for pets at a lower price
point (i.e. carrier subsidy could drive adoption)
• GPS offers the best solution with most locations where
tracking is required outdoors, but the satellite
communication channel has a weak value proposition
• Provide ability to send location, alerts, etc. in real time
instead of passively storing it; enables command issuing and
communication with vehicles
• Track route/activity without need to remove fitness device
• Pet: M2M could help easily locate and track pets when
necessary, adding the benefit of network coverage of MNOs
• Car/Driver: Geofencing allows users to draw zones around
places and can be linked to alerts, immobilization, etc.
Simple functions using location data also included
• Fitness: Device attached to shoes or clothing (for runners)
or bike (for cyclists) transmits data to server that tracks and
analyzes fitness progress
Solution
Description
Operator
Opportunity
Key Use Cases
1. Pet Tracking:
• Ability to track pet locations
• Help easily locate pets when
necessary
2. Car/Driver Tracking:
• Car location tracking
• Geofencing (alerts,
immobilization, etc.)
• Monitor driving behavior of
kids/other vehicle users
3. Fitness Tracking and Analytics:
• Device attached to shoes/
clothing/bike transmits data to
server for tracking/analysis
Source: Cartesian, Running USA/Sporting Good Manufacturers Association, Company websites
• Location Tracking
• Activity Tracking (well-being,
health, exercise)
• Safety & Security
• Family Monitoring
• Diagnostics & Emissions
• Market share via partnership
• Fitness data from device
• Online tracking tool
Vendors Solutions Partners
Acquired by Verizon, using
various MNO networks and
GPS systems

17. 17Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
As this exciting industry space evolves, Cartesian will be working to address these key
questions in serving our clients
Key Questions
M2M Market – Key Questions
• Where are the key segments of emerging demand, and what capabilities will be required
to meet these specific needs?
• What is the enterprise ROI on M2M? What are the key gaps not being addressed
effectively by current M2M providers?
• Where are vertical solution sets required, and what are the keys to success in addressing
specific vertical needs?
• What set of common/horizontal capabilities will be necessary to enable a broad range of
M2M solutions? What is the tradeoff between horizontal and vertical M2M strategies?
• How can M2M solutions scale more effectively? Where can standardization occur?
Where is it occurring right now?
• Where and how does M2M solution pricing evolve? How does this vary between
consumer and enterprise models?
• Will content players be able to commoditize access?
• What value-added capabilities can be monetized in enabling M2M?
• Who is best suited in the value chain to capture lasting value? What role wins? Why?
• What partnership models and/or ecosystems will prove most successful or best suited to
particular enterprise/consumer needs?

18. 18Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
Representative Cartesian M2M Experience
Cartesian has successfully conducted a variety of projects for vendors, enablers, and
service providers in M2M
• We have completed several dozen M2M engagements for clients serving the Americas, Europe and Asia
M2M Experience
Source: Cartesian
• Customer needs
analysis by vertical
for a major MNO
• Competitive and
ecosystem analysis
for a satellite
service provider
• Market research for
a telematics service
provider
• Growth strategy and
product roadmap for
a telematics system
vendor
• Business model
development and
partnership strategy
for a major MNO
• M2M business case
for a new division
within a major MNO
• Pricing strategy for a
major MNO across
multiple verticals
• US M2M market sizing
and forecasting for an
MNO
• Negotiation support
for a device vendor
seeking an M2M
contract
• M2M partner
screening and
selection for a new
market entrant
• Partner strategy for
the wholesale unit of
an MNO
• Action plan develop-
ment supporting new
M2M unit for an MNO
• Pricing, product and
partner recommen-
dations by target
vertical for an MNO
• International channel
optimization for an
M2M device vendor
Go-to-Market
Planning
Partnership
Development
Financial Analysis and
Business Modeling
Opportunity
Assessment and
Strategy Development
Market and
Customer Analysis

19. 19Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved.
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Contact Information
Susan M. Simmons
Chief Operating Officer
susan.simmons@cartesian.com
+1 617 999.1235
www.cartesian.com