This presents a high level overview of emerging IoT market in Canada. The author takes one of the biggest telecom player as a case study to showcase a prioritization framework for IoT solutions.

1. IoT Market in Canada
Nikhil Mittal

2. Increasing adoption of IoT presents a unique opportunity for
telcos to add recurring revenue to their stagnant growth
April 4, 2017Nikhil Mittal 2
2014
Higher
adoption rate
will facilitate
revenue
growth
Mass Market Solutions
Availability of hardware and
software technologies will create
mass market solutions
Increasing Adoption
Open standards, convergence of
IT and OT, and availability of
tailored solutions will increase
adoption rate
Source: Postscapes

3. Telcos should focus on high value high competency sectors to
deliver solutions in growing Canadian IoT market
April 4, 2017Nikhil Mittal 3
Utili
ties
Competency
Value
Manufa
cturingConsumer
Government
Healthcare
Insurance
Transportation
Resource
Industry
In addition to connectivity revenues, Telcos can leverage
their position to capture portion of hardware, software and
services revenue through a rev-share model.
Telcos should leverage competencies in growth
sectors like government and manufacturing to
deliver IoT products.
0%
5%
10%
15%
20%
25%
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
2015 2016 2017 2018 2019 2020
Thousands
Service Software Hardware Connectivity YoY
Source: IDC report
Source: IDC report
Revenue for each segment and YoY growth of Canadian IoT Market (in C$) Value vs Fit based on competitive advantage of bell

4. April 4, 2017 4Nikhil Mittal
Bell Case Study

5. Executive summary – Based on IoT trends and Bell’s
competencies, following solutions will provide quick wins
April 4, 2017Nikhil Mittal 5
Smart Lighting
Hubs
Smart Waste
Management
Predictive Asset
Maintenance
A bundled solution to deliver
street-light energy saving, smart
parking, traffic management and
ad displays
An end-to-end solution to check
bin status and direct trucks for
pick-up in most efficient way by
combining real time traffic data
A maintenance solution tracking
condition of critical assets and
performance of bottleneck asset in
the manufacturing process
Scale
Business
Partners
Cross-sell
Custom
Solution
Scale
Business
Partners
Cross-sell
Custom
Solution
Scale
Business
Partners
Cross-sell
Custom
Solution
$200 MEstimated
market size $84 M $255 M
Bell’s strategic fit Bell’s strategic fit Bell’s strategic fit
Estimated
market size
Estimated
market size
*appendix 1 *appendix 1 *appendix 1
*appendix 2 *appendix 2 *appendix 2
Low High

6. Proposed solutions have a strong value offering to the target
customer base and a favorable timing
April 4, 2017Nikhil Mittal 6
Smart Lighting
Hubs
Smart Waste
Management
Predictive Asset
Maintenance
Social
Economic
IoT
Readi
ness
Social
Economic
IoT
Readi
ness
Social
Economic
IoT
Readi
ness
3
1
2
4
Value drivers
Readiness :
Med
Stakeholders
Risks and
challenges
• Solution availability
• Standardization
• Adoption rate
3
1
2
4
Value drivers
Readiness :
High
Stakeholders
Risks and
challenges
• Standardization
• Cost effective solution
3
1
2
4
Value Drivers
Stakeholders
Risks and
challenges
• Solution availability
• Executive buy-in
• High customization
1. Energy consumption based on real-time
requirement driven by ambient light and traffic
2. Road-side parking availability status. Hard to
enforce and track
3. Static signs can’t help in traffic management
1. High operating cost due to make frequent
rounds to avoid over-fills
2. Fixed routes instead of use based routes
3. Bad user experience due to over-fill
1. Critical asset failure could lead to shutdowns
causing operation losses
2. Low performance of bottleneck resource slows
down production causing delays
3. Equipment failure cause workplace accidents
User: Municipalities
H/W: Telensa
Connectivity: Cellular, LORA
N/W topology: Hub and gateway
Analytics: IBM, MS, AWS
Influencers: Government
User: Municipalities
H/W: BigBelly, eCube
Connectivity: Cellular
N/W topology: Gateway
Analytics: IBM, MS, AWS
Influencers: Government
User: Steel, Automotive etc.
H/W: Industry specific sensors
Connectivity: Wireline, Cellular
N/W topology: Gateway
Analytics: IBM, MS, AWS
*appendix 3 *appendix 3 *appendix 3
Readiness :
Med

7. Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18
IoT solution development and management approach to plan
interdependencies and drive stakeholders
April 4, 2017Nikhil Mittal 7
Product team
Marketing Team
Trusted sales person
Product team Product team
Development team
Legal team
Product team
Marketing team
Legal team
Product team
Marketing team
Sales team
1. Problem identification
2. User input from sales
3. Market size
4. Strategic fit
5. IoT readiness
1. Target user profile
2. Device partner
3. Cloud partner
4. Data and analytics partner
5. Competition
1. Solution requirements
2. Contract with partners
3. Integration planning
4. UX design
5. Solution testing and QA
6. Project risk assessment
7. New features addition
1. Prepare sales training
2. Prepare marketing material
3. User manual
4. Communication strategy
5. User contract design
1. Market communication
2. Media launch
3. User PoC and trails
4. Solution support
Market Analysis
Stakeholder Analysis
End-to-end solution development
Take to market
Marketing
TasksTimelineTeams

8. Bell is uniquely positioned in Canada to deliver proposed
solutions generating C$ 42 M in recurring revenue by 2021
April 4, 2017Nikhil Mittal 8
Smart lighting Hub
Potential revenue opportunity of C$17.5 M
by 2021. Additional revenue from bundled
solution like smart parking, traffic
management, and ad displays
Smart Waste Management
Potential revenue opportunity of C$8.4 M
by 2021. Fleet management solution could
be cross-sold to generate additional
revenues.
Predictive Asset Maintenance
Potential revenue opportunity of C$16 M
by 2021. In addition, logistics partner of
the customer could be converted into a
potential client for fleet management.
Scale Business Partners
Cross-sell Customization
Faster, Cost Effective, Scalable Established sales channel, BBM
Multiple products and channels End-to-end, single pane of glass
*appendix 2
*see appendix 1 for revenue details

9. April 4, 2017 9Nikhil Mittal
Appendix 1: Market size and Bell’s potential revenue estimation for proposed segments
Appendix 2: Bell’s virtuous cycle driving competitive position to deliver IoT solutions
Appendix 3: Grading matrix to assess effort based on market acceptance
Appendix 4: Landscape of players for a typical Smart City Solution
List of appendices

10. Appendix 1: Market size and Bell’s potential revenue
estimation for proposed segments
April 4, 2017Nikhil Mittal 10
in C$ 2017 2018 2019 2020 2021
Solution penetration
Smart lighting hub 0% 5% 12% 25% 35%
Smart waste management 0% 5% 15% 25% 40%
Predictive maintainence 0% 3% 10% 18% 25%
Solution Revenue
Smart lighting hub $0 $2,500,000 $6,000,000 $12,500,000 $17,500,000
Smart waste management $0 $1,050,000 $3,150,000 $5,250,000 $8,400,000
Predictive maintainence $0 $1,912,500 $6,375,000 $11,475,000 $15,937,500
Total $0 $5,462,500 $15,525,000 $29,225,000 $41,837,500
Smart lighting hub - energy efficiency solution revenue estimation Smart waste management solution Predicitive asset maintainence solution
1 Number of municipalities in Canada 2,500 Stats Canada 1 Waste management revenue $2,000,000,000 IBIS report 1 OpEx 15% Assumption
2 Lower quartile annual electricity spend $1,000,000 Oshawa report 2 Operating cost 70% financials 2 Total annlau spent by manufacturing $17,000,000,000 Stats Canada
3 National annual spend $2,500,000,000 =1*2 3 Annual cost of operations $1,400,000,000 =1*2 3 Annual maintainence cost $2,550,000,000 =1*2
4 Smart light savings 40% xx report 4 Smart waste management savings 30% xx report 4 Predicitve maintainence savings 50% xx report
5 Annual savings to municipalities $1,000,000,000 =3*4 5 Annual maintainence savings $420,000,000 =3*4 5 Annual maintainence savings $1,275,000,000 =3*4
6 Savings shared with solution provider 20% Assumption 6 Savings shared with solution provider 20% Assumption 6 Savings shared with solution provider 20% Assumption
7 Solution provider revenue $200,000,000 =5*6 7 Solution provider revenue $84,000,000 =5*6 7 Solution provider revenue $255,000,000 =5*6
8 Penetration in 5 years 35% Assumption 8 Penetration in 5 years 40% Assumption 8 Penetration in 5 years 25% Assumption
9 Potential market size in 5 years $70,000,000 =7*8 9 Potential market size in 5 years $33,600,000 =7*8 9 Potential market size in 5 years $63,750,000 =7*8
10 Bell share 25% Assumption 10 Bell share 25% Assumption 10 Bell share 25% Assumption
11 Bell annual revenue $17,500,000 =9*10 11 Bell annual revenue $8,400,000 =9*10 11 Bell annual revenue $15,937,500 =9*10
Notes:
1. Assumptions to be tested
based on industry research
reports
2. Sensitivity analysis to
evaluate potential
downsides

11. Scale
TrustedCustomization
Cross-sell
Appendix 2: Bell’s virtuous cycle driving competitive position
to deliver IoT solutions
April 4, 2017Nikhil Mittal 11
Bell’s scale allows it to partner with industry
leaders like Cisco, IBM, Microsoft and select
best hardware option to deliver a solution in
cost effective manner.
Competitive advantage over smaller players like
Shaw Communication, Sierra wireless
Bell’s existing market penetration with
government, and businesses though Bell Business
Markets makes it feasible to sell IoT solutions.
Competitive advantage over technology players like
Cisco, IBM, Microsoft and other telecom players
like Rogers and Telus.
Bell’s internal capabilities enables it provide
customized solutions for its user. Bringing
different components on single pane on glass is
key value driver.
Competitive advantage over technology players like
Cisco, IBM, Microsoft
Bell’s breadth of solutions makes it possible to
cross-sell multiple services to same customers.
To deliver an end-to-end value, customer’s
customer could be targeted as well.
Competitive advantage over technology players
like Cisco, IBM, Microsoft and smaller telecom
players like Shaw Communication
Scale Business Partners
CustomizationCross-sell

12. Appendix 3: Grading matrix to assess market timing based on
demand and technology availability
April 4, 2017Nikhil Mittal 12
Smart Lighting Hub
Smart Waste
Management
Predictive Asset
Maintenance
Social
Demand
Economic
Demand
IoT Readiness
1. Traffic congestion management
2. Real time security update
3. Parking assistance
4. SoS services
1. Energy savings to improve
municipality budgets
2. Better parking monitoring
leading to higher revenues
3. Operational efficiencies
1. Smart lighting implemented in
Jakrata and Abu Dhabi city
2. Smart parking already
implemented in many cities
around North America
1. Cleaner neighborhoods
2. Better customer satisfaction
3. Lower carbon foo-print
1. Operational efficiencies
2. Route optimization
3. Less cases of penalty
1. Implemented in California, New
York, Montreal by Big Belly and
have seen record improvements
1. Improved workplace safety
1. Operational efficiencies
2. Maintenance savings
3. Operational risk mitigation
4. Shutdown scenario prevention
1. FLIR Thermal Imaging Cameras
Help Ensure Continuous Steel
Production in South Africa
Overall Score Medium High Medium

13. Appendix 4: Landscape of players for a typical Smart City
Solution
April 4, 2017Nikhil Mittal 13
Smart City Dashboard
Weather data
Live events data
BellSmartCityPlatform
Sensorpartners
Data & Analytics partner
Cloud hub and
gateway partner
Contract sections for solution partners:
1. Non Disclosure Agreement
2. Commercialization terms
3. Indemnity
4. Legal alignment