Alarm Communications Lou Fiore January 19, 2012 Dallas, Texas

Alarm CommunicationsLou Fiore

January 19, 2012Dallas, Texas

AICC Members AICC Members CSAACSAA

ESAESA

SIASIA

ADTADT

AFA Protective SystemsAFA Protective Systems

Alarm Detection SystemsAlarm Detection Systems

Bay AlarmBay Alarm

COPS MonitoringCOPS Monitoring

DGA SecurityDGA Security

Protection OneProtection One

Security Network of AmericaSecurity Network of America

Security NetworksSecurity Networks

Select SecuritySelect Security

Stanley ConvergentStanley Convergent

United Central ControlUnited Central Control

Universal Atlantic Systems Universal Atlantic Systems

Vector SecurityVector Security

VivintVivint

AES IntellinetAES Intellinet

Alarm.comAlarm.com

Axis CommunicationsAxis Communications BoschBosch

DMPDMP

DSCDSC

HoneywellHoneywell

Interlogix Interlogix

InovonicsInovonics

Linear CorpLinear Corp

LogicMarkLogicMark

Napco SecurityNapco Security

Numerex (Uplink)Numerex (Uplink)

RSI VideofiedRSI Videofied

TelularTelular

VisonicVisonic

FM ApprovalsFM Approvals

Intertek TestingIntertek Testing

Underwriters LaboratoriesUnderwriters Laboratories

AICC’s Current TopicsAICC’s Current Topics Nationwide Monitoring LicenseNationwide Monitoring License

Telecommunications Service PriorityTelecommunications Service Priority

Frequency Auctions – HR 607, S911, Frequency Auctions – HR 607, S911, HR 3116, HR 3630, etc.HR 3116, HR 3630, etc.

Sprint and Verizon as presenters re CDMASprint and Verizon as presenters re CDMA

Next Generation 911Next Generation 911

Today’s TopicsToday’s Topics

The Current Status and Future of POTSThe Current Status and Future of POTS National Broadband PlanNational Broadband Plan Digital CellularDigital Cellular CableCable IPIP Private RadioPrivate Radio ““D” Block D” Block NFPA 72NFPA 72 Government InterventionGovernment Intervention SummarySummary

State of AffairsState of Affairs

POTS is leaving us.POTS is leaving us.

Cellular will continue to change.Cellular will continue to change.

Competitors from outside are leveraging Competitors from outside are leveraging their communications advantages.their communications advantages.

Today’s Communications Today’s Communications EnvironmentEnvironment

Undeniable shift from wired to wireless servicesUndeniable shift from wired to wireless services Decreased demand and availability of PSTN serviceDecreased demand and availability of PSTN service

Quality of service issues with VoIP as the service spreadsQuality of service issues with VoIP as the service spreads

Cellular changes as carriers migrate to faster serviceCellular changes as carriers migrate to faster service

The ability to acquire wireless spectrum – at any The ability to acquire wireless spectrum – at any price – is a formidable barrier to continued price – is a formidable barrier to continued expansion for the wireless carriers.expansion for the wireless carriers.

The FCC has declared a “spectrum crisis” due to lack The FCC has declared a “spectrum crisis” due to lack of new spectrum needed to address exploding of new spectrum needed to address exploding demand.demand.

What’s Happening to Plain Old What’s Happening to Plain Old Telephone Service?Telephone Service?

Impact of Cellular on POTSImpact of Cellular on POTS

Notice the “bubble” at age 22 to 26.

Source: CDC

New Generation of CustomerNew Generation of Customer

Comfortable with the InternetComfortable with the Internet

Vast majority have portable devicesVast majority have portable devices Many have multiple portable devicesMany have multiple portable devices

This generation will not be tetheredThis generation will not be tethered

Demand new applications for their devicesDemand new applications for their devices

Device life: Typically 18 to 24 monthsDevice life: Typically 18 to 24 months

Convergence of Voice, Video and Data

Voice

Data

Video

There are more wireless accounts than people in There are more wireless accounts than people in the USA!the USA!

35% of adults in the USA own smartphone.35% of adults in the USA own smartphone.

Mobile phones are a main source of Internet Mobile phones are a main source of Internet access for 25% of the smartphone population.access for 25% of the smartphone population.

25% of smartphone users mostly use their phone 25% of smartphone users mostly use their phone instead of a computer to access the Internet.instead of a computer to access the Internet.

*The Pew Internet & Life Project*The Pew Internet & Life Project

The National Broadband PlanThe National Broadband Plan1. Design policies to ensure robust competition,

innovation and investment.

2. Ensure efficient allocation and management of spectrum, poles, and rights-of-way, to encourage network upgrades and competitive entry.

3. Reform current universal service mechanisms to support deployment of broadband and voice in high-cost areas; and ensure that low-income Americans can afford broadband.

4. Reform laws, policies, standards and incentives to maximize the benefits of broadband in public education, health care and government operations.

Quantifying the PSTN Legacy Transition

• Cord cutting is happening in a rapid pace, especially the younger segments. However, PSTN lines (overall) are also dropping organically.

• As of May 2010, 23% of respondents in a study lived in a mobile-only household.

• The same study also found that 37% of adults in the 18-24 and 30-34 age groups lived in a Mobile-only household.

Source: FCC

Quantifying the PSTN Legacy Transition • Recommendations:

1. The FCC should take steps to prepare for the inevitable transition from the PSTN

2. The FCC should take steps to expedite the transition, with a target date of 2018

3. Provide incentives for operators to provide broadband services (that can support Voice) to rural areas and underserved America

4. Fund PSAPs so they can accelerate integration with IP/Packet network (so E911 can work with IP)

5. Realign regulatory requirements to emerging technologies

6. Assist Broadband and OTT providers by working with Security and Emergency Alarms industry associations to push for IP adoption e.g. NFPA 72

7. Bring the National Broadband Plan in alignment with the PSTN Sunset timetable and assure that adequate broadband/mobile capability is available everywhere that the PSTN is today

Source: FCC

After the PSTN: Non-carrier stranded assets Recommendations:

1.Target 2018 as the end of the PSTN.

2.Develop timeline to ensure smooth transition which addresses stranded assets

3.Assure that mobile and/or broadband replacements are available everywhere PSTN is currently provided. The need will be greatest in rural areas.

Source: FCC

Demand for POTSDemand for POTS

Demand for POTS is trending sharply Demand for POTS is trending sharply downward.downward.

Government is pushing RBOCs away Government is pushing RBOCs away from POTS from POTS

Government pushing a shift to Government pushing a shift to BroadbandBroadband

Actual DataActual Data

AT&T had 36 Million POTS lines in AT&T had 36 Million POTS lines in 20062006

Down to 20 Million POTS lines in Down to 20 Million POTS lines in 20112011

Declining industry-wide at about 5 to Declining industry-wide at about 5 to 7% per year7% per year

““EoIP”EoIP” Everything is moving to IPEverything is moving to IP

Only 10% of the population still get their video “over Only 10% of the population still get their video “over the air.”the air.”

The future is IPThe future is IP

All media will be delivered by IP All media will be delivered by IP

in the not too distant future.in the not too distant future.

Google is reportedly readying an Internet-served pay television service that will roll out in Kansas City next year.

Cable’s EntryCable’s Entry

Some success with “Digital Voice” Some success with “Digital Voice” due to “bundled services”due to “bundled services”

For every 2 wired systems lost,For every 2 wired systems lost, Cable picks up oneCable picks up one

Tremendous growth in BroadbandTremendous growth in Broadband

VoIP

Issues for AlarmsIssues for Alarms(as presented in 2007)(as presented in 2007)

• Pass alarm DACT signal formats in an undistorted Pass alarm DACT signal formats in an undistorted fashionfashion

• Ensure Line Seizure is not compromisedEnsure Line Seizure is not compromised

• The ability to provide for our control panels to The ability to provide for our control panels to "see” a telephone line equivalent (voltage and "see” a telephone line equivalent (voltage and dialtone) dialtone)

VoIP and cable/ISP hardware should have VoIP and cable/ISP hardware should have sufficient backup power.sufficient backup power.

MFVN in NFPA 72-2010MFVN in NFPA 72-2010Manage and maintain their network to ensure service quality Manage and maintain their network to ensure service quality

and reliabilityand reliability

Provide a service that is Provide a service that is functionally equivalent to traditional functionally equivalent to traditional analog phone service (dialing, dial plan, and loop voltage analog phone service (dialing, dial plan, and loop voltage treatment), treatment),

Provide real-time transmission of voice signals that Provide real-time transmission of voice signals that carry carry alarm system formats unchanged, alarm system formats unchanged,

Provide both professional installation and subscriber Provide both professional installation and subscriber information …….information …….which preserves primary line seizurewhich preserves primary line seizure for for alarm system interconnection, and alarm system interconnection, and

Have disaster recovery plans to address both individual Have disaster recovery plans to address both individual customer outages and widespread events of a catastrophic customer outages and widespread events of a catastrophic nature, including nature, including network power restoration equivalent to network power restoration equivalent to traditional landline telephone services.traditional landline telephone services.

Recent Events with NFPA 72Recent Events with NFPA 72

NFPA 72NFPA 72 The next edition (2013) will see DACT and a The next edition (2013) will see DACT and a

second technology (not two phone lines).second technology (not two phone lines).

The current (and perhaps final) draft of The current (and perhaps final) draft of NFPA 72-2013 requires a 6 hr DACT test NFPA 72-2013 requires a 6 hr DACT test rather than 24 hrs.rather than 24 hrs.

The 2016 Edition will probably “sunset” The 2016 Edition will probably “sunset” DACT altogether. DACT altogether.

Digital Cellular, Two-Way radio, Private Digital Cellular, Two-Way radio, Private One-Way Radio and IP will survive as your One-Way Radio and IP will survive as your only communications alternatives.only communications alternatives.

RadioRadio

Spectral EfficiencySpectral Efficiency

““The number of conversations both voice The number of conversations both voice and data”and data”

This number has doubled every This number has doubled every two-and-a-half years for the past 104 years. two-and-a-half years for the past 104 years.

CISCO: “Globally, mobile data traffic will CISCO: “Globally, mobile data traffic will double every year through 2014, double every year through 2014, increasing 39 times between 2009 and increasing 39 times between 2009 and 2014.”2014.”

The Shannon-Hartley theoremThe Shannon-Hartley theorem

tells the maximum amount of error-tells the maximum amount of error-free digital data that can be free digital data that can be transmitted over a communications transmitted over a communications channel (e.g., a copper wire, radio channel (e.g., a copper wire, radio channel or an optical fiber) with a channel or an optical fiber) with a specified bandwidth in the presence specified bandwidth in the presence of noise. of noise.

Beyond 4G?Beyond 4G?

Haken Eriksson, CTO of Ericsson, says 4G Haken Eriksson, CTO of Ericsson, says 4G is at that limit.is at that limit.

Talk of 5G about 2020 might just be a Talk of 5G about 2020 might just be a tweak to 4Gtweak to 4G

The only possible real expansion is more The only possible real expansion is more spectrumspectrum

or “Sub-dividing spectrum”or “Sub-dividing spectrum”

What’s needed?What’s needed?

According to the FCC, According to the FCC,

500 MHz of spectrum is required by 500 MHz of spectrum is required by 2014.2014.

However, vast amounts of existing However, vast amounts of existing spectrum is underutilized or un-used.spectrum is underutilized or un-used.

The FCC and NTIA* are recovering The FCC and NTIA* are recovering bandwidth for new cellular applications.bandwidth for new cellular applications.

The FCC has issued an “NOI” asking for The FCC has issued an “NOI” asking for creative ways to recover spectrum not creative ways to recover spectrum not efficiently being used.efficiently being used.

** National Telecommunications and Information Administration National Telecommunications and Information Administration

Current and Future Alarm Industry Current and Future Alarm Industry Wireless OfferingsWireless Offerings

Digital CellularDigital Cellular

Honeywell AlarmNetHoneywell AlarmNet


SDR and “cognitive radio”SDR and “cognitive radio”

““D” BlockD” Block

Current SituationCurrent Situation

Today’s Communications ChoicesToday’s Communications Choices

““Traditional” POTSTraditional” POTS VoIP including MFVNVoIP including MFVN Digital CellularDigital Cellular Private RadioPrivate Radio IP and the InternetIP and the Internet

Dealer Decisions and NeedsDealer Decisions and Needs


RMR (including stability of RMR)RMR (including stability of RMR) Control of your business environmentControl of your business environment Bandwidth requirementsBandwidth requirements Costs: Monthly v. Equipment costsCosts: Monthly v. Equipment costs Stability with Technology ChangesStability with Technology Changes Customer RetentionCustomer Retention ReliabilityReliability

Cellular TechnologyCellular Technology

Used for Primary and Backup Used for Primary and Backup CommunicationsCommunications

Drop in solution for landline Drop in solution for landline replacementreplacement

Benefits of CellularBenefits of Cellular

Flexible installationsFlexible installations

Cost effective landline replacementCost effective landline replacement

Increasingly ubiquitousIncreasingly ubiquitous

It can support enhanced servicesIt can support enhanced services

Caveats to Using CellularCaveats to Using Cellular

Monthly feeMonthly fee

Unavoidable sunsetsUnavoidable sunsets

Challenges to using CellularChallenges to using Cellular

Competitive forces will move Competitive forces will move cellular to 4G cellular to 4G

Current Digital Cellular will be Current Digital Cellular will be squeezed out in squeezed out in 5, 7, 10 years 5, 7, 10 years

10 years for 3G10 years for 3G Then what: 4G,“5G,”……..Then what: 4G,“5G,”……..

Digital Cellular Technology LongevityDigital Cellular Technology Longevity

GPRS is slowly degrading in most marketsGPRS is slowly degrading in most markets• AT&T will selective re-purpose 800MHz spectrum for 4GAT&T will selective re-purpose 800MHz spectrum for 4G

By 2014 – 2015, GPRS may have performance issuesBy 2014 – 2015, GPRS may have performance issues Major markets likely to be impacted firstMajor markets likely to be impacted first Dealt a blow with the AT&T/T-Mobile merger scrappedDealt a blow with the AT&T/T-Mobile merger scrapped

1XRTT and EVDO longevity more assured1XRTT and EVDO longevity more assured• Verizon through 2018 … at leastVerizon through 2018 … at least• Sprint will go longer than 2018 … possible 10 yearsSprint will go longer than 2018 … possible 10 years

LTE and WiMAX are the [current] futureLTE and WiMAX are the [current] future• Verizon (LTE), AT&T (LTE) and Sprint (WiMAX and LTE)Verizon (LTE), AT&T (LTE) and Sprint (WiMAX and LTE)• Will be “data-only” for a while VOIP is deployedWill be “data-only” for a while VOIP is deployed• ““All-IP” technologies are far easier to deploy and growAll-IP” technologies are far easier to deploy and grow

Digital CellularDigital Cellular 2.5G (GPRS), 2.75G (EDGE) will migrate to 2.5G (GPRS), 2.75G (EDGE) will migrate to

3G by 20163G by 2016

Cellular is migrating to 4G but probably not Cellular is migrating to 4G but probably not until 2020until 2020

Some say 4G will probably be the last Some say 4G will probably be the last iterationiteration

Sprint and Verizon now saying 1xRTT Sprint and Verizon now saying 1xRTT version of CDMA* will be viable for 10 yearsversion of CDMA* will be viable for 10 years

*Code division multiple access *Code division multiple access

3G to 4G3G to 4G

A 4G network can be up to 10 X A 4G network can be up to 10 X faster than 3G, faster than 3G,

letting consumers browse the web, download songs and letting consumers browse the web, download songs and stream movies more quicklystream movies more quickly

U.S. wireless companies also promise U.S. wireless companies also promise that building out their 4G networks that building out their 4G networks will help bring Broadband access to will help bring Broadband access to those rural areas that currently lack those rural areas that currently lack reliable high-speed Internet. reliable high-speed Internet.

Bottom LineBottom Line

Digital Cellular at customer Digital Cellular at customer sites will go through some sites will go through some turmoil for at last a decade.turmoil for at last a decade.

Mesh TechnologyMesh Technology

Mesh TechnologyMesh Technology A wireless mesh network is a A wireless mesh network is a

communications network made up of radio communications network made up of radio nodes organized in a mesh topology. nodes organized in a mesh topology.

The coverage area of the radio nodes The coverage area of the radio nodes working as a single network is sometimes working as a single network is sometimes called a mesh cloud. Access to this mesh called a mesh cloud. Access to this mesh cloud is dependent on the radio nodes cloud is dependent on the radio nodes working in harmony with each other to working in harmony with each other to create a radio network. create a radio network.

A mesh network is reliable and offers A mesh network is reliable and offers redundancy. When one node can no longer redundancy. When one node can no longer operate, the rest of the nodes can still operate, the rest of the nodes can still communicate with each other, directly or communicate with each other, directly or through one or more intermediate nodes.through one or more intermediate nodes.

Ad-hoc NetworkAd-hoc Network

formed “ad hoc” (or “as needed”) formed “ad hoc” (or “as needed”) when wireless devices come within when wireless devices come within communication range of each other. communication range of each other.

A Mesh Network Example

AES Corporation Proprietary

Google Map of an AES Network Google Map of an AES Network covering 7000+ Sq Milescovering 7000+ Sq Miles

59AES Corporation Proprietary

ThreatsThreats

Auctions – a constant threatAuctions – a constant threat

Narrowbanding i.e. FCC action to 6.25 KHzNarrowbanding i.e. FCC action to 6.25 KHz

Usage fees – possible via the American Jobs Usage fees – possible via the American Jobs Act?Act?

Challenges to using MeshChallenges to using Mesh

Equipment costsEquipment costs

Bandwidth Bandwidth

450 to 470 MHz450 to 470 MHz

Part 90 Business BandPart 90 Business Band

Security Industry dedicated, CSAA Security Industry dedicated, CSAA coordinated frequencies at 460 to coordinated frequencies at 460 to 466 MHz (only for Listed C/S’s)466 MHz (only for Listed C/S’s)

IP and the InternetIP and the Internet

Uptime issues Uptime issues – – software upgrading, etcsoftware upgrading, etc

Backup power issuesBackup power issues

Ideal for backup to another mediumIdeal for backup to another medium

Offers high bandwidth for videoOffers high bandwidth for video

Newer SystemsNewer Systems

There will be a trend toward There will be a trend toward “proprietary” radio systems (owned “proprietary” radio systems (owned by alarm companies) by alarm companies)

such assuch as


Current SituationCurrent Situation


““Traditional” POTSTraditional” POTS VoIP including MFVNVoIP including MFVN Digital CellularDigital Cellular Private RadioPrivate Radio IP and the InternetIP and the Internet



RMR (including stability of RMR)RMR (including stability of RMR) Control of your business environmentControl of your business environment Costs: Monthly v. Equipment costsCosts: Monthly v. Equipment costs Stability with Technology ChangesStability with Technology Changes Customer RetentionCustomer Retention NRTL Listings & AHJ AttitudesNRTL Listings & AHJ Attitudes ReliabilityReliability

DRAFT 5/5/11 70

RMR SharingRMR SharingPartialPartial Retain AllRetain All

POTSPOTS √√Using subscriber’s Using subscriber’s

phone linephone line

VoIPVoIP √√Using subscriber’s VoIP Using subscriber’s VoIP

lineline

Digital CellularDigital Cellular √√Shared with cellular Shared with cellular carriercarrier

Private RadioPrivate Radio √√Your Network – You keep Your Network – You keep all RMRall RMR

IP & The InternetIP & The Internet √√Using subscriber’s Using subscriber’s

Internet lineInternet line

71

RMR StabilityRMR StabilityThreatenedThreatened StableStable

POTSPOTS √√

VoIPVoIP √√

Digital CellularDigital Cellular √√

Private RadioPrivate Radio √√Your Network – You keep Your Network – You keep all RMRall RMR

IP & The InternetIP & The Internet √√

DRAFT 5/5/11 72

Control of your Business EnvironmentControl of your Business Environment

Partial Control Partial Control (No Communications (No Communications

Control)Control)

Total End To End Total End To End ControlControl

POTSPOTS √√With Carrier – POTS With Carrier – POTS

“sunsetting”“sunsetting”

VoIPVoIP √√With Carrier - Voice has With Carrier - Voice has

prioritypriority

Digital CellularDigital Cellular √√With Carrier - With Carrier -

Technology stability Technology stability issuesissues

Private RadioPrivate Radio √√Your Network - Your Network - Frequency auction issueFrequency auction issue

IP & The InternetIP & The Internet √√With Carrier – downtime With Carrier – downtime

issuesissues

POTSPOTS No upfront No upfront investmentinvestment

VoIPVoIP No upfront No upfront investment investment

Digital Digital CellularCellular

Moderate upfront Moderate upfront investmentinvestment

Private RadioPrivate Radio Highest upfront Highest upfront investmentinvestment

IP & the IP & the InternetInternet

No upfront No upfront investmentinvestment

Costs: Monthly v. Equipment costs

74

Stability with Technology ChangesStability with Technology ChangesUnstableUnstable StableStable

POTSPOTS √√Maximum of a 10 year Maximum of a 10 year

lifelife

VoIPVoIP √√

Becoming more stableBecoming more stable√√

Becoming more stableBecoming more stable

Digital CellularDigital Cellular √√Periodic ChangesPeriodic Changes

Private RadioPrivate Radio √√

StableStable

IP & The InternetIP & The Internet √√Becoming More StableBecoming More Stable

√√Becoming More StableBecoming More Stable

DRAFT 5/5/11 75

Customer RetentionCustomer RetentionDue to DissatisfactionDue to Dissatisfaction

UnstableUnstable StableStable

POTSPOTS √√Historically stable but Historically stable but

threatened going threatened going forwardforward

VoIPVoIP √√

Elusive with Elusive with communication failure communication failure issuesissues

Digital CellularDigital Cellular √√Technology stability Technology stability

issuesissues


StableStable

IP & The InternetIP & The Internet √√Elusive with Elusive with

communication failure communication failure issuesissues

DRAFT 5/5/11 76

NRTL Listings and AHJ AttitudesNRTL Listings and AHJ AttitudesAcceptedAccepted Not AcceptedNot Accepted

POTSPOTS √√Historically accepted Historically accepted

with some apprehensionwith some apprehension

VoIPVoIP √√

Listed but spotty with Listed but spotty with AHJsAHJs

√√

Listed but spotty with Listed but spotty with AHJsAHJs


Listed and almost Listed and almost universally accepteduniversally accepted


Listed and almost Listed and almost universally accepteduniversally accepted

IP & The InternetIP & The Internet √√Listed but spotty with Listed but spotty with AHJsAHJs

√√Listed but spotty with Listed but spotty with AHJsAHJs

DRAFT 5/5/11 77

ReliabilityReliabilityConsidered Considered ReliableReliable

Considered Considered UnreliableUnreliable

POTSPOTS √√Issues going forwardIssues going forward

VoIPVoIP √√

IssuesIssues



IP & The InternetIP & The Internet √√ √√IssuesIssues

DRAFT 5/5/11 78

What’s Best for You?What’s Best for You? One size does not fit all.One size does not fit all.

TradeoffsTradeoffs

CashCash Upfront Investment vs. Ongoing Upfront Investment vs. Ongoing CostsCosts

How long will you How long will you keep your keep your business?business?

Build long term value vs. selling Build long term value vs. selling account sooneraccount sooner

Control of your Control of your businessbusiness

End to end control of your End to end control of your business or trust 3business or trust 3rdrd parties for parties for communicationscommunications

What “bandwidth” What “bandwidth” is required?is required?

Primarily monitoring alarms or Primarily monitoring alarms or significant video monitoring too.significant video monitoring too.

DRAFT 5/5/11 79


POTSPOTS

VoIPVoIP

Digital CellularDigital Cellular

Private RadioPrivate Radio

IP & The InternetIP & The Internet

DRAFT 5/5/11 80

CashCash

POTSPOTS Lowest initial cash outlay and ongoing Lowest initial cash outlay and ongoing cost if shared linecost if shared line using subscriber’s using subscriber’s phone linephone line

VoIPVoIP Moderate initial cash outlay and Moderate initial cash outlay and ongoing cost if shared line.ongoing cost if shared line.

Digital CellularDigital Cellular Moderate initial cash outlay plus Moderate initial cash outlay plus ongoing monthly costs.ongoing monthly costs.

Private RadioPrivate Radio Highest initial cash outlay but no Highest initial cash outlay but no ongoing monthly costs.ongoing monthly costs.

IP & The InternetIP & The Internet Moderate initial cash outlay but no Moderate initial cash outlay but no ongoing monthly costs.ongoing monthly costs.

DRAFT 5/5/11 81

Control of your BusinessControl of your Business

POTSPOTS your “partner” is a telco carrieryour “partner” is a telco carrier

VoIPVoIP your “partner” is a VoIP provideryour “partner” is a VoIP provider

Digital CellularDigital Cellular your “partner” is a digital cellular your “partner” is a digital cellular providerprovider

Private RadioPrivate Radio No partner – total controlNo partner – total control

IP & The InternetIP & The Internet your “partner” is an Internet provideryour “partner” is an Internet provider

DRAFT 5/5/11 82

How long will you keep your business?How long will you keep your business?

POTSPOTS Low investment but Low ROI if dedicated Low investment but Low ROI if dedicated phone lines are required. Best for short phone lines are required. Best for short term account flipping???term account flipping???

VoIPVoIP Moderate Investment but Low ROI if Moderate Investment but Low ROI if dedicated phone lines are required. Better dedicated phone lines are required. Better for short term account flipping.for short term account flipping.

Digital CellularDigital Cellular Moderate Investment but Low ROI if Moderate Investment but Low ROI if dedicated phone lines are required. Best dedicated phone lines are required. Best for short term account flipping.for short term account flipping.

Private RadioPrivate Radio Higher investment but highest ROI given no Higher investment but highest ROI given no monthly communications costs. Best for monthly communications costs. Best for long term value creation.long term value creation.

IP & The InternetIP & The Internet Moderate Investment but High ROI if Moderate Investment but High ROI if sharing Internet service. Good for longer sharing Internet service. Good for longer term value creation.term value creation.

DRAFT 5/5/11 83

Bandwidth requiredBandwidth required

POTSPOTS Low Bandwidth – audio and video clipsLow Bandwidth – audio and video clips

VoIPVoIP Low Bandwidth – audio and video clipsLow Bandwidth – audio and video clips

Digital CellularDigital Cellular Can do wider bandwidth but at a costCan do wider bandwidth but at a cost

Private RadioPrivate Radio Lowest bandwidthLowest bandwidth

IP & The InternetIP & The Internet Highest available bandwidthHighest available bandwidth

Bottom LineBottom Line You share RMR using CellularYou share RMR using Cellular

You don’t have a “partner” with AESYou don’t have a “partner” with AES You have full control with AESYou have full control with AES

IP gives you maximum bandwidthIP gives you maximum bandwidth

AES requires the greatest upfront AES requires the greatest upfront investmentinvestment

SummarySummary Look at your businessLook at your business Pick the technology that best Pick the technology that best

suits suits your environment,your environment,

your customer needs, your customer needs,

your financial situation, andyour financial situation, and

your long term plansyour long term plans Develop a plan.Develop a plan.

Questions?Questions?

Thank you!Thank you!

Documents

Alarm Communications Lou Fiore January 19, 2012 Dallas, Texas