WIXLIB

November 2014LTE MTC: Optimizing LTEAdvanced for Machine-TypeCommunications@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.1

LTE Advanced is evolving and expanding into new frontiersUsing all spectrum typesExtending LTE Advancedto unlicensed spectrumMaking Wi-Fi avirtual extensionof LTEEmpowering new servicesLTE Direct always-onproximity awarenessEvolving LTEBroadcast, goingbeyond mobileConnecting more industriesOptimizing LTE Advanced formachine-type communicationsConnecting moreverticals like carsFurther enhancing HetNetsFaster and bettermobile broadbandAdvanced antenna featuresEvolving carrier aggregationAdvanced receivers@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.2

Optimizing LTE Advanced for Machine-Type CommunicationLTE MTC is part of the upcoming Release 13 of the global 3GPP standard1Benefits from the reliability,pervasiveness, efficiency, andlongevity of 4G LTE2Significantly increases battery life,while reducing cost/complexityand enhancing coverage@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.3Co-exists with mobile broadbandservices enabling continued M2Mbusiness model innovations4Plays a key role among the multiplesolutions required to connect theInternet of Everything3

The IoE is bringing a massive surge of smart, connected things 25 BillionInterconnected devicesforecast in 20201Transforming industrieswith innovative servicesand useful informationSmart CitiesIndustrialTransportationConnected HomeHealthcareRetailEducation1 Source: Machina Research, February, 2014@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.4

Connecting the IoE requires heterogeneous wireless connectivityPowered by global standards with seamless interoperability across multiple vendorsPersonal Area (WPAN)Local Area (WLAN)Wide Area (WWAN)BluetoothWi-Fi 802.113G and 4G LTEReplaces cables for connectingmobile/PC accessories, evolvingfor the IoE with Bluetooth SmartThe center of the connectedhome/enterprise, evolving forthe IoE with 802.11ahFor applications that demandubiquitous coverage and highreliability, evolving for the IoEwith LTE MTCSupporting the wide range of IoE use cases with varying performance, cost, and energy requirements@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.5

Valuable M2M services are enabled by the pervasiveness,reliability, security, and performance of 3G and 4G LTERemote monitoringand managementserving 2.7 Billion 3G/4G connections worldwide1High reliability that provides redundantnetwork design with 99%availability2Robust security features built-in; trusted ingovernment and finance sectorsHigh performance with broadband data rates,real-time responsiveness, and managed QoSMature ecosystem backed by global standardswith seamless interoperability3G and 4G LTEMachine-to-Machine (M2M) ServicesUbiquitous coverage with established networksReal-time controland automationFinancial servicesOTT managedcloud servicesBroadbandservices1 Source: GSMA Intelligence, Jul. ’14; 2 Source: NIST, “Consolidated NIST Wireless Characteristics Matrix V5”, 10/25/2010@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.6

M2M services are transforming the way we live and do businessConnected TransportationAutomotive, Asset Tracking, UBIConnected IndustrialConnected HomeHVAC, POS, Smart GridSmart Energy, Home SecurityConnected CitiesLighting, Parking, Water Management@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.Connected Health Care3G and 4G LTEGateways, Wearables, Devices7

4G LTE provides a solid foundation for future M2M growthNetwork longevityLTE has become one of the fastest growing wireless technologiesproviding a solid foundation for many years to comeNetwork efficiencyIncreased spectral efficiency, simplified network infrastructure,and more efficient signalingCommon global standardwith a vibrant global ecosystem310 Networks1,500 Devicesin 110 countriesfrom 100 vendorsSuperior performanceLTE and LTE Advanced provides the fastest and best broadbandexperiences for applicable M2M servicesSource: GSA (www.gsacom.com) – July 2014 for networks and June 2014 for devices@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.8

M2M requirements often differ from mobile broadbandRequires optimizations to make technology scalable to a wide range use casesYears of battery lifeOften battery-powered and deployed in field for many yearsLow ThroughputSmart MachinesLow cost/complexity devicesUsually do not require the wideband operation of LTEDeep coverageMay be deployed in challenging locations (e.g., underground)@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.9

LTE MTC optimizes LTE Advanced for M2MPart of the upcoming Release 13 of the global 3GPP standardSignificantly increases battery lifeNew enhanced power save modes and efficient signalingReduces device cost/complexityCo-existenceNew device category with narrowband operationEfficiently integrates with existingLTE Advanced servicesEnhances coverageAdvanced techniques to reach challenging locations@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.10

LTE MTC significantly increases battery lifeWith new enhanced power modes and efficient signalingEnhanced Power Save Mode (PSM)More efficiently turn on/off modem; optimized for device-originated or scheduled applicationsExtended Discontinuous Reception (DRX)Longer sleep cycles optimized for delay-tolerant, device-terminated applicationsConnectionless Random Access Channel (RACH)Data transmissions via common channel for more efficient transition between statesLess frequent Tracking Area Updates (TAUs) and measurementsConfigurable for low- to zero-mobility M2M applicationsCapable of manyyears of battery life@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.11

LTE MTC introduces a new Power Save Mode (PSM)LTE Advanced with Power Save Mode (PSM)Setup registrationand connectionSetupOffTimeDevice requires signaling prior to data transmission inorder to register with the network@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.Efficient modem‘wakeup’PSMM2M Data (Tx/Rx)LTE Advanced with deep sleepService Request or TAUWith LTE MTCModel power consumptionWithout LTE MTCM2M Data (Tx/Rx)Model power consumptionMore efficiently turn on/off modem for device-originated or scheduled applicationsTimeDevice remains registered with the network, reducingthe signaling required for modem wakeup12

LTE MTC introduces longer sleep cyclesDelivering critical power savings for delay-tolerant, device-terminated applicationsSleep cycles extendable for machine-type communicationsSleepDRXSleepDRXCurrent maximum sleep cycle is 2.56 seconds, resultingin unnecessary signaling@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.TimeExtended sleep cycle eliminatesunnecessary signalingTAUTAUTAUTAUDelayToleranceM2M Data (Tx/Rx)UnnecessarysignalingPSMSleepDRXM2M Data (Tx/Rx)Sleep cycles optimized for human-type communicationsModel power consumptionWith LTE MTCModel power consumptionWithout LTE MTCTimeCapable of extending sleep cycles to many minutes, eliminatingunnecessary signaling to save power13

LTE MTC enables a new, simpler M2M device capabilityOptimized for relatively small, infrequent data transmissionsMobileBroadbandWideband (20 MHz)Fast Data Rate (300 Mbps1)Low throughputSmart MachinesNarrowband ( 1 MHz)Reduced Data Rate ( 2 Mbps1)Diversity AntennasSingle receive antennaFDD or TDD OperationHalf Duplex Operation Simplifies RF hardware Reduces baseband complexity1 Based on peak data rates per 3GPP standard@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.14

LTE MTC delivers enhanced coverageRedundant UL/DL TransmissionsSend same data in consecutive Transmit Time IntervalsSingle Frequency Network (SFN) MulticastSame broadcast signal from all cellsTrade off spectrum efficiency and latencyLTE Advanced sub-frames (1 ms)More reliable in-building coverage@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.Better cell-edge performanceConfigurable per cell/UE/channel15

LTE MTC capitalizes on hyper-densification of small cellsSolving the 1000x data challenge with small cells everywhere improves M2M coverageM2M UEsEnterpriseMacro CellMetro / PicoResidential / NeighborhoodBrings the network closer improvingcoverage and reducing power@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.Enhances uplink link budgetEnables flexible deployment models(macro cells, small cells, and relays)16

LTE MTC co-exists with today’s mobile broadband servicesEfficiently integrated with existing LTE Advanced spectrum and networksCo-existenceTime- and Frequency-Division Multiplexing between LTEMTC services and other services (e.g., mobile broadband)LTE MTCNon-MTC DataNon-MTC Services 0.1%of data capacity forMTC traffic basedon sample scenario1Flexible capacityNon-MTC ControlNon-MTC ControlNon-MTC ServicesNon-MTC DataMultiple narrowband regions supported for scalableresource allocation between LTE MTC and non-MTCLTE MTC1 Assumptions: ISD Urban – 500m, 3 cells per site, Channel b/w 10MHz, Cell capacity: DL 14Mbps, UL 9.6Mbps; Traffic types include data and commands for Electric Meter, Water Meter, Security Panel, HVAC - Residential, Outdoor Street Light, Off StreetParking Meter, Parking Space Sensor, Water Assets; 100% of traffic assumed in 6hr. busy period – see appendix for more details on MTC sample scenario@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.17

LTE MTC proposed as part of Release 13 of the 3GPP standardNew features introduced in R11 and R12, but critical optimizations realized with R13RELEASE 13LTE MTCSignificant power savingsNew enhanced power savemodes and efficient signalingNew, simpler deviceRELEASE 11Overload ControlAbility to utilize EAB* to restrict accessto delay-tolerant devices in overloadRELEASE 12Narrowband operation reducesoverall device complexity/costNew Device CategoryMarginal cost/complexity reductionsplus elementary power savingsEnhanced CoverageAdvanced techniques to reachchallenging locations* Extended Access Barring@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.18

The 4G LTE ecosystem isalready delivering innovativesolutions to support thegrowth of M2M services@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.19

M2M services are benefiting the entire 4G LTE ecosystemCapitalizing on the massive surge of smart, connected things with the Internet of EverythingMobile OperatorsM2M Service ProvidersBusinesses & ConsumersNew M2M servicesNew revenue streamsIncrease productivityPotential OTT servicesBetter customer engagementImprove safety and securityFlexible capacity allocationReduce labor costs (service/repair)Enhanced user experienceThe high growth potential of M2M is resulting in unprecedented levels of interest and investment@2013-2014 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved.20