Smith Micro & Wireless Data in 2006

Grove City College

October 5, 2006

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Company Overview

Smith Micro Software Is a Leading Provider of Wireless Software Solutions to Carriers and

Handset Manufacturers

• Founded: 1983• IPO: 1995• NASDAQ: SMSI• Employees: 110• Recent Acquisitions

– Allume Systems: July 2005

– PhoTags: April 2006

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Location, Location, Location

• Located in Southern California

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Our Business

• Wireless connectivity solutions– Wireless carriers

– Device manufacturers

– Large enterprises

• Wireless handset solutions– On-phone image and resource compression

– Phonebook management - Outlook synchronization

• Utility software offerings– StuffIt - Desktop compression

– CheckIt - Security and diagnostics

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Mobile Data Market

0

5

10

15

20

25

30

35

40

45

2005 2006 2007 2008 2009 2010

10.5

17.3

25.4

33.4

38.641.3

2005-2010 CAGR: 81.1%

US Mobile Data Revenue ($bn)

Yankee Group, (March 2006)

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QuickLink® Mobile - Our Flagship Product

WWAN Wireless Wide Area Network

QuickLink® Mobile Provides laptop UI Wi-Fi and WWAN connectivity Allows for seamless transition

from a Wi-Fi to WWAN connection

Multiple device support

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Languages

• x86 Assembly– Not since 1999

• C– Code for mobile platforms

• Objective C– Macintosh GUI

• C++– Windows and Linux GUI

– Engine code without mobile requirements

• C#– Used for all Web Services and Web Site Programming

• Other languages in use– PHP, WebDNA, Java

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How We Got to 3G WWAN

1G - Analog - 1980’s AMPS - Advanced Mobile Phone Service

2G - Digital - 1990’s TDMA - Time Division Multiple Access GSM - Global System for Mobile communication CDMA - Code Division Multiple Access

3G - third-generation wireless – 2000’s Effort to standardize future digital wireless communications Goal of global roaming >= 144 Kbps in wide area mobile environments

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Today

Progression of Technology

CDMA

GSM GPRS

1xRTT EVDO

EDGE UMTS HSDPA

EVDO Rev A EVDO Rev B

HSUPA

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3G Wireless Speeds

• 1xRTT - CDMA– Max: 144 Kbps Downlink, 144 Kbps Uplink– Typical Downlink: 60-80 Kbps

• EDGE - GSM– Max: 247 Kbps Downlink, 123 Kbps Uplink– Typical Downlink: 70-135 Kbps

• UMTS - GSM– Max: 384 Kbps Downlink, 384 Kbps Uplink– Typical Downlink: 100-300 Kbps

• 1xEVDO - CDMA– Max: 2,400 Kbps Downlink, 144 Kbps Uplink– Typical Downlink: 400-700 Kbps

• HSDPA - GSM– Max: 3,600 Kbps Downlink, 1,800 Kbps Uplink– Typical Downlink: 400-700 Kbps

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Services that 3G Enables

• Mobile Internet connectivity • Mobile email • Multimedia services - photos and movies• Wireless application downloading• Video-on-demand - short-format content• Enhanced location-based services • Push-to-talk services

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EV-DO Migration Path

• EV-DO Rev. 0– Divides radio spectrum into separate voice and data channels– 1.25 MHz data channel– Eliminates chance that high voice traffic interrupts data service– Offered by Verizon Wireless and Sprint

• EV-DO Rev. A – Max: 3.1 Mbps Downlink, 1.8 Mbps Uplink– Reduce call set up times and decreases delays– Services: wireline-quality VoIP, low-latency push-to-talk, online gaming, video

on demand and video messaging & data transfer

• EV-DO Rev. B– Multiple 1.25 MHz channels simultaneously– Max: 9.3 Mbps Downlink, 5.4 Mbps Uplink– Puts control for scaling bandwidth into the network operators’ hands

• EV-DO Rev. C– Uses OFDM/MIMO technology

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GSM Path

• HSDPA– High-speed downlink packet access

– 14.4 Mbps downlink peak data rates

• HSUPA– High-speed uplink packet access

– 5.76 Mbps peak uplink data rates

– Expected in 2007

• LTE– Uses OFDM/MIMO technology

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Wireless Device Form Factors

• USB Tethered– Handsets and Smart Phones

– USB 2.0

• PC Card– 32-bit and 16-bit PCMCIA

• ExpressCard– Replacement to PC Card

– Lower power consumption

• Mini PCI– Embedded by Laptop OEM’s

– Dell, Lenovo, HP & Toshiba

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Challenges in WWAN

• Licensing costs– Availability and cost of wireless spectrum– Intellectual property costs

• Mobile devices– Battery life– Product lifecycle– Speed of technological advancement

• Carrier issues– Billing– Customer service– Seamless nationwide coverage

• Communications– No one company does it all– Requires multi-party collaboration

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What’s Next?

• Competing Services– Wi-Fi Hotspots

– Metropolitan Wi-Fi deployments

– Mobile WiMax• OFDM/MIMO

• Devices– Device Convergence

• Wi-Fi , HSDPA, EV-DO Rev A in single device

– Software adaptable radios

• Computing Devices– New form factors

– New applications

– New business possibilities

Questions?