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

developing the business eco system for the internet of
SMART_READER_LITE
LIVE PREVIEW

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 Telefnica Servicios Audiovisuales S.A. / Telefnica Espaa S.A. TELEFNICA I+D Ttulo de la ponencia / Otros datos de inters / 26-01-2010


slide-1
SLIDE 1

Telefónica I+D

Telefónica Servicios Audiovisuales S.A. / Telefónica España S.A. Título de la ponencia / Otros datos de interés / 26-01-2010 TELEFÓNICA I+D

Developing the business eco-system for the Internet of Things

Brussels, June 2010

slide-2
SLIDE 2

Telefónica I+D

1

Index

Telefónica and the new Internet of Things business

  • Applications areas

What is needed?

  • Networks
  • Intelligent devices
  • Open platforms

Working together to develop the new Internet

  • An open approach

01 02 03

slide-3
SLIDE 3

Telefónica I+D

2

Telefónica and the new IoT business

Telefónica I+D

01

slide-4
SLIDE 4

Telefónica I+D

3

Revenues (2009): € 56.731 bn OIBDA (2009): € 22.603 bn Net Income (2009): € 7.776 bn

Among the 50 largest companies in the world by market cap

Among the 100 largest companies in the world by revenues

International integrated Telco

  • perator by customer base

 1st

European integrated Telco

  • perator by market

capitalisation

 1st

264.6 million accesses (as of Dec ‘09)

  • 96.0 million in Europe
  • 168.6 million in Latin America

Telefónica is now a benchmark for the global Telco sector …

(1) Plus U.S.A. and Puerto Rico (2) China, Italy and Portugal

Operations in 24 countries

  • 6 in Europe
  • 13 in Latin America(1)
  • 3 through strategic and industrial alliances(2)

About 257,000 professionals

  • 31.1% in Europe
  • 68.1% in Latin America
  • 0.8% in others countries

Telco in Dow Jones Sustainability Index

 1st

slide-5
SLIDE 5

Telefónica I+D

4

…with significant presence in Europe and Latam

Total Accesses (as of Dec ‘09)

168.6 million

Total Accesses (as of Dec ‘09)

96.0 million

slide-6
SLIDE 6

Telefónica I+D

The Internet of Things is offering a range of new solutions to business and citizens

5

(*) Mc Kinsey quarterly 2010 (**) Ericsson

Information and analysis(*)

  • Tracking behavior of persons and

goods

  • Achieving real time awareness of

physical environments.

  • Assisting human decision though data

visualization

Automation and control(*)

  • Process Optimization
  • Optimized resource usage
  • Complex autonomous systems

IOT major application areas

IoT

Society Industrial

Environ mental

By 2020, 50 billion devices and sensors will be connected to the Internet**

slide-7
SLIDE 7

Telefónica I+D

However, business models are still unclear and require a multiparty stakeholder-system approach

6

e.g. Stakeholders of IoT applied to smart cities

slide-8
SLIDE 8

Telefónica I+D

The good news: many sectors/industries will benefit from more digitalized and intelligent objects

7

Introducing IoT in a city of 1 million people Smart metering 600.000 meters $120 million

  • pportunity

Electric vehicle charging infrastructure 45.000 electric vehicles $225 million

  • pportunity

Remote patient monitoring (diabetes) 70.000 people w/ diabetes $14 million

  • pportunity

Smart retail establishments 4.000 stores $200 million

  • pportunity

Smart bank branches 3.200 PTMs $160 million

  • pportunity

* Source: High level estimates given by IDC Report Boston March 4, 2010 Total Worldwide ICT Opportunity ≈ $200 Billion

slide-9
SLIDE 9

Telefónica I+D

8

What is needed?

02

Telefónica I+D

slide-10
SLIDE 10

Telefónica I+D

Three elements are needed to turn IoT into real business

Pervasive broadband networks Intelligent devices Smart computing & social media process

9

… enabling real-time communications among intelligent devices and back- end systems … (e.g., smart phones, smart meters, sensors) providing cost effective “telemetry” for infrastructure, vehicles, people, etc. … to process real-time data streams, enable real- time decision making, and provide a platform for information dissemination and collaboration among citizens and all stakeholders

I II III

slide-11
SLIDE 11

Telefónica I+D

Pervasive broadband networks. Their business 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

10

I

  • Intelligent
  • Open
  • Secure
  • User

experience

  • Cost

efficient

  • Scalable

Efficiency Excellence Capabilities

slide-12
SLIDE 12

Telefónica I+D

11

But…we see this as an opportunity.

HSDPA R6 64 QAM 2 X2 MIMO Dual Carrier Advanced Rx LTE 2 X 2 LTE 4 X 4 2.5 Mbps 3.7 Mbps 4.1 Mbps 4.5 Mbps 4.7Mbps 5.4 Mbps 7.1 Mbps 14 Mbps 14 Mbps 21 Mbps 28 Mbps 42Mbps 170 Mbps 20 MHz 340 Mbps 20 MHz HSPA+ LTE 5 MHz Cell Capacity Peak Rate HSPA 2.5 Mbps HSDPA R6 7.2 Mbps Current capability Multicarrier 5.0 Mbps 170 Mbps 20 MHz R6 R6 R6 R7 R7 R8 R9 R8 R8

Increased efficiency More spectrum Better planning

  • Flexibility in spectrum management together with more

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
  • Micro and Picocells
  • Femtocells

I

We have the tools to win this battle…

slide-13
SLIDE 13

Telefónica I+D

Intelligent and connected devices

M2M can be the next growth lever for Telco industry

12

Revenues Reaching 200M connections in 2012 with CAGR of 38% and 100M new shipments/year2 Total: 57,5B$by 20143

  • Services could reach from 2,5 to 5x4

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

II

Investments

slide-14
SLIDE 14

Telefónica I+D

Smart Computing and processing

13

III Things and sensors Intelligent interfaces Smart Spaces New applications for the business and the citizen

Connectivity Applications

Processing Sensors are nothing if they are not (smartly) connected

slide-15
SLIDE 15

Telefónica I+D

Telco can be a leverage point for new IoT services through open service platforms

14  On demand applications  New versions  Transparent billing and

flexible payment options

 security and privacy,  Solve fragmentation  Get paid  Share revenue  Get access to the

network

III

Developing an open ‘service platform’ to reach the long tail of developers

Internet

  • f

Things

  • pen

platform Network Applications Media, content …Other

Long tail of customers: cities, business, manufacturing

Benefits for customers Benefits for developers

Service Delivery, Call Control, Device access, control Infrastructure Mobile Internet, SMS, QoS, Identity, Charging, Location

slide-16
SLIDE 16

Telefónica I+D

And it can be done using an open approach

Windows PC Hardware Network

Operator own applications External applications enhanced by Operator

The telecom operating system (WAC)

Access to operator resources

SELECTED RESOURCES ALL THE RESOURCES

Wholesale applications Community

III

slide-17
SLIDE 17

Telefónica I+D

16

Working together to develop the new Internet

03

Telefónica I+D

slide-18
SLIDE 18

Telefónica I+D

The platform, together with the applications, will help to realize the Internet future…

  • 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

The future internet we dream of

slide-19
SLIDE 19

Telefónica I+D

…and bring new and smart applications closer to business and citizens

18

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
slide-20
SLIDE 20

Telefónica I+D

…and we need to do it in collaboration

Financial Services eHealth, E-Inclusion Tourism Green energy Road safety E-learning E-government http://initiative.future-internet.eu/

slide-21
SLIDE 21

Telefónica I+D