Developing the business eco-system for the Internet of Things - PowerPoint PPT Presentation

Developing the business eco-system for the Internet of Things Brussels, June 2010 0 Telefónica Servicios Audiovisuales S.A. / Telefónica España S.A. TELEFÓNICA I+D Título de la ponencia / Otros datos de interés / 26-01-2010 Telefónica I+D 0

Index 01 Telefónica and the new Internet of Things business - Applications areas 02 What is needed? - Networks - Intelligent devices - Open platforms 03 Working together to develop the new Internet - An open approach Telefónica I+D 1

01 Telefónica and the new IoT business Telefónica I+D Telefónica I+D 2

Telefónica is now a benchmark for the global Telco sector …  1 st International integrated Telco 264.6 million accesses (as of Dec ‘09) operator by customer base • 96.0 million in Europe • 168.6 million in Latin America  1 st European integrated Telco operator by market Operations in 24 countries capitalisation • 6 in Europe • 13 in Latin America (1)  1 st • 3 through strategic and industrial alliances (2) Telco in Dow Jones Sustainability Index About 257,000 professionals Among the 50 largest  • 31.1% in Europe • 68.1% in Latin America companies in the world by • 0.8% in others countries market cap Revenues (2009): € 56.731 bn Among the 100 largest  OIBDA (2009): € 22.603 bn Net Income (2009): € 7.776 bn companies in the world by revenues (1) Plus U.S.A. and Puerto Rico (2) China, Italy and Portugal Telefónica I+D 3

…with significant presence in Europe and Latam Total Accesses (as of Dec ‘09) 96.0 million Total Accesses (as of Dec ‘09) 168.6 million Telefónica I+D 4

The Internet of Things is offering a range of new solutions to business and citizens IOT major application areas Information and analysis (*) • Tracking behavior of persons and goods Society • Achieving real time awareness of physical environments. • Assisting human decision though data visualization IoT Automation and control (*) • Process Optimization Environ Industrial menta l • Optimized resource usage • Complex autonomous systems By 2020, 50 billion devices and sensors will be connected to the Internet** (*) Mc Kinsey quarterly 2010 (**) Ericsson Telefónica I+D 5

However, business models are still unclear and require a multiparty stakeholder-system approach e.g. Stakeholders of IoT applied to smart cities Telefónica I+D 6

The good news: many sectors/industries will benefit from more digitalized and intelligent objects Introducing IoT in a city of 1 million people Smart metering 600.000 meters $120 million opportunity Electric vehicle charging 45.000 electric $225 million infrastructure vehicles opportunity Remote patient 70.000 people w/ $14 million monitoring (diabetes) diabetes opportunity Smart retail 4.000 stores $200 million establishments opportunity Smart bank branches 3.200 PTMs $160 million opportunity Total Worldwide ICT Opportunity ≈ $200 Billion * Source: High level estimates given by IDC Report Boston March 4, 2010 Telefónica I+D 7

02 What is needed? Telefónica I+D Telefónica I+D 8

Three elements are needed to turn IoT into real business I II III Smart Pervasive computing & Intelligent broadband devices social media networks process … enabling real-time … (e.g., smart … to process real-time communications phones, smart data streams, enable real- among intelligent meters, sensors) time decision making, and devices and back- providing cost provide a platform for end systems effective “telemetry” information dissemination for infrastructure, and collaboration among vehicles, people, etc. citizens and all stakeholders Telefónica I+D 9

Pervasive broadband networks. Their business I models…are challenged Current network models are challenged to provide more capacity at lower cost and more flexibility and new functionalities for enabling new services Efficiency Excellence Capabilities  Cost  Secure  Intelligent efficient  User  Open  Scalable experience Telefónica I+D 10

But…we see this as an opportunity . I We have the tools to win this battle… 5 MHz Cell Capacity LTE LTE 4 X 4 Current capability LTE 2 X 2 7.1 Mbps Multicarrier HSPA+ Dual Carrier 2 X2 MIMO 5.4 Mbps 5.0 Mbps 64 QAM HSPA Advanced Rx 4.7Mbps 4.5 Mbps Increased 4.1 Mbps HSDPA R6 HSDPA R6 3.7 Mbps efficiency Peak Rate 2.5 Mbps 2.5 Mbps 170 Mbps 170 Mbps 340 Mbps 7.2 Mbps 14 Mbps 14 Mbps 21 Mbps 28 Mbps 42Mbps 20 MHz 20 MHz 20 MHz R6 R8 R6 R6 R7 R7 R9 R8 R8  Flexibility in spectrum management together with more More spectrum frequencies availability in the future will expand network capacity • A dramatic increased in number of cells should be supported by LTE. • Hierarchical architecture is key for delivering the demanded capacity Better planning • Micro and Picocells • Femtocells Telefónica I+D 11

Intelligent and connected devices II M2M can be the next growth lever for Telco industry Investments Reaching 200M connections in 2012 with CAGR of 38% and 100M new shipments/year 2 Revenues Total: 57,5B$by 2014 3 • Services could reach from 2,5 to 5x 4 revenues compared to network traffic • HW stalls representing only 6% (2014) Source: Berg, Beecham, Strategy Analytics, GSMA, IDC, ABI used in TEF M2M Growth Platform presentation Telefónica I+D 12

Smart Computing and processing III Sensors are nothing if they are not (smartly) connected Things Intelligent Smart and interfaces Spaces sensors Connectivity Applications Processing New applications for the business and the citizen Telefónica I+D 13

Telco can be a leverage point for new IoT III services through open service platforms Developing an open ‘service platform’ to reach the long tail of developers Benefits for Benefits for developers customers Network Long tail of customers:  Solve fragmentation  On demand applications Internet Applications  Get paid  New versions cities, business, of manufacturing  Share revenue  Transparent billing and Things flexible payment options  Get access to the Media, open network  security and privacy, content platform …Other Service Delivery, Call Control, Device access, control Infrastructure Mobile Internet, SMS, QoS, Identity, Charging, Location Telefónica I+D 14

And it can be done using an open approach III The telecom operating system (WAC) Operator own External applications applications enhanced by Operator ALL THE RESOURCES SELECTED RESOURCES Windows Access to operator resources PC Hardware Network Wholesale applications Community Telefónica I+D

03 Working together to develop the new Internet Telefónica I+D Telefónica I+D 16

The platform, together with the applications, will help to realize the Internet future… The future internet we dream of  New services for the enterprise  Immersive experience  3D interfaces  Hybrid world  Cognitive intelligence development  Semantically tagged information  Deriving knowledge from mere information  Making knowledge accessible for humans and machines Telefónica I+D

…and bring new and smart applications closer to business and citizens E-health, traffic safety, logistics, Smart grid,…new applications in the smart city  Connected hospital  EPR  Future telemedicine applications  Smart cities  Enhanced traffic security  New automotive applications  Business oriented applications  Connected home Telefónica I+D 18

…and we need to do it in collaboration E-government Financial Services Tourism http://initiative.future-internet.eu/ eHealth, E-Inclusion Road safety E-learning Green energy Telefónica I+D

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