1. Utilities – Why are Telcos Involved and What Do They Add? ? MWC - 17 Feb 20112 © 2011 Convergys Corporation. All rights reserved.
2. Convergys …3 © 2011 Convergys Corporation. All rights reserved.
3. Baard Eilertsen Founded in 1998 CEO A virtual mobile operator focusing on p g M2M services for industrial applications More than 3000 customer references worldwide Convergys billing customer since 19994 © 2011 Convergys Corporation. All rights reserved.
4. The future of energy gy 1st Generation 2nd Generation 3rd Generation Established Service Accessible Service Ubiquitous Service 1st power network Analog to Digital Change in business models to drive Deregulation HAN, NAN new revenue streams Retrofit for R t fit f renewables bl Personal energy management P l t Roaming PHEVs R i PHEV Proliferation of products / applications bution Pre & post paid Contrib echnology Throughput Maximum of 1 meter read 1 meter read every 15 Real-time data per month minutes (near real-time) T Edison’s Grid Smart Grid 2G Smart GridTe 1880 -- 2007 1880 2007 2007 -- 2015 2007 2013 2015+ 2013+ 5 © 2011 Convergys Corporation. All rights reserved.
5. Why do Telcos need to be involved?Hundreds of millions ofSmart Meters generating g g Customers have varyingbillions of messages degrees of willingness to entrust their energy usage information to g different entities,Telcos already have the trusting utilities andinfrastructure to carry this telecom companies more and thetraffic federal government and ISPs less.BUT, it is not only aboutcommunications between Ponemon Institute,the meter and the utility “Perceptions about Privacy on the Smartprovider Grid” November 2010 G id” , N b6 © 2011 Convergys Corporation. All rights reserved.
6. Personal energy management Customer Maingate Internet iPad iPhone Encrypted communication Push update of tariffs7 © 2011 Convergys Corporation. All rights reserved.
7. Media by choice y • Visualization via: in-house display, apps for smart phones, mobile web page in house and via E.ON specific application • Consumers are able to read minute by minute, day by day and month by month th • Combining of B2B and B2C models and applications • Pay per function / information not just per connection8 © 2011 Convergys Corporation. All rights reserved.
8. M2M requires a Telco industry transformation q y Telecoms access is transforming other industries Massive scale, mission scale Consumer critical, low ARPU Devices Charging based on a g g Transport And combination of: Logistics - Traffic Unattended Connected Machines - Data Devices - Function Utilities, - Information Security & Buildings B ildi Management Healthcare Patient Monitoring9 © 2011 Convergys Corporation. All rights reserved.
9. M2M business model challenges • ARPU generally 50c - $10 per monthLow Cost • Automate business processes as much as possible to reduceBusiness headcount required to support the business Model • Choose support platforms that have low ongoing cost of ownership and are flexible for the future • 100s of millions of unique connected devices creating micro usage q g g chargesMassive Scale • Data management efficiency needed, need to aggregate usage and apply know-how to keep costs down Multi M lti • Global reach is key for some models – partnering with network Party providers in other countries, need to be able to support wholesale Value settlement Chain • Support both retail and wholesale pricing models • Settlement and commission payments10 © 2011 Convergys Corporation. All rights reserved.
10. What can Telcos teach the Utilities? Real Time Usage Data • TOU • Demand Response Customer C stomer Self Service Real-Time Charging • Centralized charging for Smart Meters • Same charging for pre- and post-pay customer Customer • Real time balance Care monitoring Highly available network available, independent charging Settlement • Remote Connect • Remote Disconnect Based on account balance or top up11 © 2011 Convergys Corporation. All rights reserved.
11. In summary: Telcos must add value Provide proven reliability and scale f the M2M for communications from a trustworthy partner Support Utility p pp y partners with Telecoms expertise in p tariff creation, marketing and customer experience management Provide applications and data management know- know how to allow consumers to get more out of s a t ete s smart meters12 © 2011 Convergys Corporation. All rights reserved.
12. Thank you Tony Jackson Director, Telecoms Solution Strategy, Convergys firstname.lastname@example.org © 2011 Convergys Corporation. All rights reserved.