Smart Energy. CO 2 emission reduction through Telekom s M2M technology. Enno Borchers (M2M Competence Center, M2M Sales Development) April 2011

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1 Smart Energy. CO 2 emission reduction through Telekom s M2M technology. Enno Borchers (M2M Competence Center, M2M Sales Development) April 2011

2 Deutsche Telekom AG. Group profile and figures. Company Products Facts and Figures Employees Global Group Deutsche Telekom is one of the world s leading service companies in the telecommunications industry. Our strengths Consumer products and services via fixedline and mobile communications, as well as ICT solutions for business customers. The numbers In 2010, Deutsche Telekom reported revenue of EUR 62.4 billion (more than 50% generated outside Germany). The major success factor With 31 December 2010, Deutsche Telekom employed about 247,000 people group-wide. 2

3 Our core beliefs on future drivers of value in our industry. Energy as a group-wide core growth area for Deutsche Telekom. Infrastructure remains the key driver of the business. The marked Network/IT 1 2 increase in data traffic demands ever faster networks and exceeds the long-term price decline. Next Generation Networks and consistently standardized IT are crucial for efficiency and success. Growth Opportunities Local Strength The mobile Internet and online services present considerable opportunities for growth. Customers expect secure and universal access to all services from all devices. Cloud computing and dynamic computing offer major potential for growth. Intelligent networks support the transformation process in industries such as energy, healthcare, media and transportation. Intelligent networks support the transformation process in industries such as energy, healthcare, media and transportation. Strong positions in national competition are important to drive profitable business. 3

4 Theoretical CO 2 savings potential. Smart ICT applications enable emission reductions of more than 20% till 2020 in Germany and other countries. CO 2 savings potential > 60% of total savings potential Source: SMART 2020 Addendum Deutschland: Die IKT-Industrie als treibende Kraft auf dem Weg zu nachhaltigem Klimaschutz, 2010 (Analysis by Boston Consulting Group); adapted by M2MCC 4

5 The M2M ecosystem. Smart networks require distributed intelligence of devices through M2M communication technology for emission reduction across application areas. 5

6 Reference cases. Numerous application scenarios for M2M expand the areas for active emission reduction. Transport & Logistics Industrial Automation Public Sector Energy Delivery tracking enables real-time optimization of supply routes. Remote diagnostic of machines makes incident management more efficient. Intelligent street lighting helps to reduce municipal electricity expenses. Smart energy grids help to monitor, control and optimize power consumption. 6

7 Macroeconomic trends. Market opportunities through intelligent ICT solution in the strategic business area Energy from Deutsche Telekom. Increasing share of renewable energy sources. European Regulation. Increasing share of virtual power plants. Smart integration and new business models. Smart Meters and Smart Grids enable Smart Home Automation. Deutsche Telekom s offer Utility IT Services along the commercial value chain. New business models through energy efficient solutions. 7

8 Thank you for your attention. In case of any questions, do not hesitate to contact us:

9 Project Smart Metering Benefits for consumers and utility companies. Benefits Benefits for citizens: Increased transparency of the individual energy consumption via a web portal Identification of power inefficient appliances Improved energy balance sheet together with environmental protection Personalized energy consultancy based on real data Innovative offerings (e.g. new tariff systems and value added services) Benefits for utility companies Improved customer loyalty in a competitive environment First step towards smart grids Manual data collection and individual inspections will become obsolete -> more efficiency 9

10 Smart Metering Infrastructure A typical Customer Installation. Automatic meter reading via Multi Utility Server (MUS) Multi Utility Server (DSL or GPRS) Collects data of max. 31 meters via M- Bus or wireless M-Bus. Connection to the DSL- Router directly via LAN cable or power line (Ethernet Prot.). 10

11 Smart Metering Infrastructure Communication between Meter and Multy Utility Server (MUS) in T- City Friedrichshafen. Meter to MUS Communication support various protocols Smart Metering Friedrichshafen: Power meters are connected via RS 485 Gas, water: wireless or wired M-Bus Power Meters: Elster 1350/1440, EMH Gas Meters: Elster Water: Hydrometer MUS: Webolution, Dr. Neuhaus 11

12 Project Smart Metering: Energy Portal 3.0. Energy Portal fully integrated into the customer portal. Portal design by TWF 12

13 Process competencies for mass market and ICT are necessary. Additional Services of T-Systems T-Systems offers a variety of mass market proof ICT Services, e.g.: Individual customer portals Rating- and E-Billing Services Systems for virtual Call Center and the fulfillment process Business Intelligence services (e.g. Managers Dashboard) Dynamic Services and operator models enable specific allocation of ICT capacities and costs (Dynamic SAP, Storage on Demand, Managed Customer Contact Center,...) Offerings in a partnerships Joint offerings for the Real Estate and housing Industry Bundling (e. g. with i-phone, T-Home Entertain,...) Open Systems enable the development M2M-Applications 13

14 Advantages of our Smart Metering solution at a glance. Take opportunities minimize risks build upon standards Pure OPEX- Model Predictable costs starting with the first meter Shared Platform Maximizing economies of scale, Minimizing technology risks Opene standards benefit of economies of scale! Data protection and security No proprietary solution, bidirectional usage possible, Multi-Utility approach Field Service Benefit of the country wide presence of the field service of Deutsche Telekom High standards in data protection and security 14

15 Corporate Responsibility. Deutsche Telekom commits itself to responsible conduct in terms of sustainability and strives to achieve a lasting balance between the financial, social and ecological impacts of its activities. Sustainable and responsible action is being embedded within the organization and implemented across the Group using binding regulations. The company seeks active and intensive dialog with its stakeholders and conducts such dialogs openly and transparently. The 2010 Corporate Responsibility Report reinforces the CR vision and focuses on the integration of CR into Telekom s core business. 15

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