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Smart Homes & End User Engagement track: Emerging Trends and Opportunities

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Presentation by Emilio Martínez at European Utility Week 2014

Published in: Technology

Smart Homes & End User Engagement track: Emerging Trends and Opportunities

  1. 1. Emerging Trends and Opportunities Smart Homes & End User Engagement track_ TEF. Digital 04.11.2014 DISCOVER, DISRUPT, DELIVER Emilio Martinez de la Fuente Head of Utilities & Building Energy Efficiency Telefonica M2M Global Unit
  2. 2. 1 Wireless Connectivity Technology 2 The role of M2M and End User Engagement opportunities 3 Generating new revenue streams from M2M DISCOVER, DISRUPT, DELIVER
  3. 3. Connectivity Wireless connectivity technology
  4. 4. Wireless connectivity technology Connected everywhere, anytime … anything_ devices at 2020 DISCOVER, DISRUPT, DELIVER 26bn Connected Total Connectivity everywhere 7,6bn World population at 2020 More connections than people Source: Gartner “Digital Marketing, Internet of Things and 3D Printing Are Digital-Business-Driven Disruptions for Supply Chains” Source: United Nations, World population to 2300
  5. 5. Bandwidth Security DISCOVER, DISRUPT, DELIVER Coverage Availability Highly scalable Multiple access technologies management Global footprint Quick time to market Flexible pricing Low maintenance costs Low entry cost Single point of contact Wireless connectivity technology Characteristics_ Technical Commercial
  6. 6. Wireless connectivity technology What does cellular technology offer_ Global standard High scalability More than 5 billion connections worldwide Based on Global System for Mobile Communications (GSM) DISCOVER, DISRUPT, DELIVER Affordable cost Cost is decreasing continuously Real-time communications Average latency in the milliseconds range Trusted technology Deep understanding of security, information privacy, QoS and overall experience Trusted by public and private markets Customer experience More than 27 years of experience dealing with people and businesses
  7. 7. Wireless connectivity technology How is connectivity addressed for Utilities_ 1 PLC DISCOVER, DISRUPT, DELIVER PLC Concentrator Cellular 2 3 BTS RF Mesh RF RF RF RF RF RF 6 Satellite SAT gateway 4 RF Short Distance SD RF 5 RF Long Distance LD RF Diverse models with different strengths and weakness
  8. 8. Wireless connectivity technology Where is each connectivity model positioned_ 1 2 3 4 5 6 7 PLC: very popular in some countries LPWA: early stage technology RF short distance: for specify models, using a 2nd tech. to backhaul (fixed conn.) RF long distance: dedicated grid, upfront investment needed RF mesh: for extremely concentrated areas or when cellular can´t 3G & 4G • Preferred to ensure bandwidth & large range coverage • Good quality of services and VAS for covered areas • Leverages existing network, less costs of deployment Wifi: Potential solution for VAS like Digital Home DISCOVER, DISRUPT, DELIVER RFLD 4 Cellular 6 6 (2G, 3G, 4G) 7 WiFi 6 6 VAS enabled PLC 1 CDMA 2 4 LPWA 3 RFSD (multihop) RF Mesh 5 6 6 Bubble size represent the potential to address Utilities’ needs - Range + - Bandwidth +
  9. 9. Wireless connectivity technology Where is each connectivity model positioned_ DISCOVER, DISRUPT, DELIVER No single technology to cover every utility need
  10. 10. Wireless connectivity technology Where is each connectivity model positioned_ DISCOVER, DISRUPT, DELIVER What is an optimal solution? Hybrid models
  11. 11. Wireless connectivity technology Where is each connectivity model positioned_ 1 2 3 4 5 6 7 PLC: very popular in some countries LPWA: early stage technology RF short distance: for specify models, using a 2nd tech. to backhaul (fixed conn.) RF long distance: dedicated grid, upfront investment needed RF mesh: for extremely concentrated areas or when cellular can´t 3G & 4G • Preferred to ensure bandwidth & large range coverage • Good quality of services and VAS for covered areas • Leverages existing network, less costs of deployment Wifi: Potential solution for VAS like Digital Home DISCOVER, DISRUPT, DELIVER RFLD 4 Cellular 6 6 (2G, 3G, 4G) 7 WiFi 6 6 VAS enabled PLC 1 CDMA 2 4 LPWA 3 RFSD (multihop) RF Mesh 5 6 6 8 Bubble size represent the potential to address Utilities’ needs - Range + - Bandwidth + 8 Hybrid (cellular + RFMesh / LPWA) RF mesh first w. cellular backhaul • Maximizes coverage while keeping costs low • VAS enabled only for those covered with the Cellular network
  12. 12. Wireless connectivity technology What is to come_ 10 Km 100m DISCOVER, DISRUPT, DELIVER Data Rate (Mbps) Range 10m Cellular Short range low throughput Short range high throughput 1 10 100 ? 1m Low Power Wide Area … Ideal networks for M2M  Low cost chipsets & communications fees  Low battery consumption  High reachability  Bandwidth … and connectivity technologies have room for improvement
  13. 13. DISCOVER, DISRUPT, DELIVER TIME Penetration / ubiquity Mainframe Networking Personal Computer Portability Internet Mobility Apps Social Ubiquity 1960 1970 1980 1990 2000 2010 2020 Virtually any object can be connected M2M is the next BIG business Many believe M2M is the next generation of personal computing_ Source : Morgan Stanley Research
  14. 14. M2M is the next BIG business Is the technology that establishes intelligent communication between things… DISCOVER, DISRUPT, DELIVER Enables companies to reduce costs and provide a better service, while improving the quality of life of people m2m
  15. 15. M2M is the next BIG business …with impressive impact in daily things_ DISCOVER, DISRUPT, DELIVER
  16. 16. M2M is the next BIG business Great benefits to companies, individuals and society… Efficiency DISCOVER, DISRUPT, DELIVER Productivity Cost Reduction Quality of Service
  17. 17. End User Engagement How is M2M being accepted by final users_ Connected “things” have started to proliferate… DISCOVER, DISRUPT, DELIVER
  18. 18. End User Engagement Smart Metering: what is being done in the UK_ UK government has a specific plan lead by the Central Delivery Body (DCB) DISCOVER, DISRUPT, DELIVER UK government 2014 budget for User Engagement: over 6M £ Centralized Engagement Program • Build consumer confidence and awareness • Increase consumer willingness to use smart meters • Assist vulnerable, low income and pre-payment consumers Objectives
  19. 19. End User Engagement Smart Metering: changes in consumer behavior_ UK government has a specific plan lead by the Central Delivery Body (DCB) ESMIG** through a review of 100 pilots and 460 samples covering 450,000 consumers suggested savings from around 5-6% from interventions without IHD, to an average of 8.7% with an IHD. 8,7%_ EDRP*** conducted trials that are more closely to 2% to 4% of energy savings . For gas, it was the provision of a smart meter rather 2-3%_ 3%_ was most significant in delivering savings, with savings of around 3% DISCOVER, DISRUPT, DELIVER Centralized Engagement Program ACEEE* has estimated an average reduction of 3.8% in overall energy consumption as a result of better information on costs and use of energy which drives behavioral change 3,8%_ (*) American Council for an Energy-Efficient Economy (**) European Smart Metering Industry Group (***) The Energy Demand Research Project than the IHD which electricity electricity electricity gas
  20. 20. End User Engagement Smart Metering experiences involving the end user_ DISCOVER, DISRUPT, DELIVER 1,9 million smart meter program. Multiple types of market research (tracking and in-depth) Dedicated smart meter call center team Output  51% program support  96% smart meter acceptance 1,4 million smart meters deployed. 90-60-30 day communication strategy Deployed a mobile app with billing functionality Reduce Your Use program Customer satisfaction tracking “Biggest Energy Saver” Pilot Output  0,16% complain rate  500k participants in Reduce Your Use program
  21. 21. M2M Generating new revenue streams
  22. 22. Generating new revenue streams M2M allows to take advantage of new possibilities on a vast variety of fields_ Consumer Electronics DISCOVER, DISRUPT, DELIVER Smart Cities Utilities & Sustainability Transport Smart Home Security Health Industrial Solutions
  23. 23. Generating new revenue streams Smart Home, a greenfield to offer VAS_ Consumer Electronics DISCOVER, DISRUPT, DELIVER Stands for the automatic control of different systems in a home. The systems can range from energy management and HVAC, audio-visual and entertainment, communications, lighting, to security and assisted living systems. Smart Cities Transport Security Health Energy management and climate control Industrial Solutions Utilities & Sustainability Smart Home Security and Access Control Insurance Audio-visual and entertainment Microgeneration Control & automation Electric Vehicle
  24. 24. Generating new revenue streams End users demand connected services_ Over 49% of households without security are willing to pay about $10 monthly for self-monitored or $15 monthly for professionally monitored security 44% of households without monitoring and control capability are DISCOVER, DISRUPT, DELIVER willing to pay $13 monthly for such a service 40% indicated an interest in remote energy management services and nearly 30% are also willing to pay something $10 per month for them on average Source: Strategy Analytics “Smart Home Systems: Consumer Attitudes and Adoption” Report analyzing the results of a survey of more than 6,500 consumers in France, Germany, Italy, the UK and US in 4Q 2012.
  25. 25. Generating new revenue streams Diverse competitors working towards the opportunity_ Utilities Telecommunication DISCOVER, DISRUPT, DELIVER companies Security Companies Device manufacturers Niche players
  26. 26. Generating new revenue streams Utilities’ opportunity to add smart home VAS to the portfolio_ Smart Metering and the use of intelligent meters to measure and manage energy consumption at home can be a first step towards Smarter Homes DISCOVER, DISRUPT, DELIVER Sub-stations Home / Building Generation Distribution Retail Selling Power Plant CT Connectivity Smart Meter Once deployed, connectivity can be leveraged to support many other Value Added Services
  27. 27. DISCOVER, DISRUPT, DELIVER Emilio Martinez de la Fuente Head of Utilities & Building Energy Efficiency Telefonica M2M Global Unit

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