Delivering the m2m experience, leading the IoT pathway_. Rosalía Simón IoT End-to-End Solutions Director Francisco Jariego IoT Innovation Director
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1 Delivering the m2m experience, leading the IoT pathway_ Rosalía Simón IoT End-to-End Solutions Director Francisco Jariego IoT Innovation Director
2 We want to lead the IoT opportunity Customers at the center of our offer In our Core Business & Beyond Now & in the Future Business & Consumers Connectivity & e2e Solutions Short term & Long term objectives Being a key growth engine for Telefonica 2
3 We do what it takes Partners agreements Global teams (sales, product, operations) + + In-house solutions In-country teams Today business + Future needs 3
4 With a consistent two-fold strategy Innovation 4
5 Enabling revenue acceleration and great ambition Looking back We are showing consistent growth and we are accelerating Revenue Growth 2014 >40% Looking forward We are committed to building on this momentum
6 Accelerating our fleet business (50% growth) Strengthening our value proposition with Geotab key partnership + Geotab: a success story with >400K units APIs Cloud network Self installable module Web Application Best in class solution Modular/adaptable to customer needs New key client segments Key engine data Plug & Play 6
7 Bringing new solutions to market Connected car solution in partnership with Zubie Trip history Driving insights Live tracking Geo-fences Group sharing Vehicle health Leaderboard Vehicle diagnosis, tracking & monitoring driving behaviour Plug & Play Launched in Germany, under B2C model O2 stores & other channels Future expansion: new geographies, new business models (B2B2C) 7
8 With a strong telemetry catalogue: > 40 solutions (e.g. vending, tanks, elevators)_ Bundling diverse e2e solutions to increase client return Tanks Brewery Fleet + + IoT Platform Integrated value proposition bundling fleet, brewery & tanks Customization required at client back-end Client segment target: beverage corporations Multiplying client profit: sales increase and cost reduction 8
9 Helping retailers drastically reduce their energy bill Our Energy Efficiency Solution Energy Supply Installation & Maintenance Engineer Lighting Web Platform HVAC Business model based on energy savings Hardware provision, energy efficiency platform & consumption reports Case study multinational fashion retail company 20% energy reduction in the stores; 35% in the logistics center 9
10 Transforming Valencia into a 100% intelligent city From traditional isolated model To a holistic integrated view Service 1 Service 2 Service N Service 1 Service 2 Service N Intelligence 1 Intelligence 2 Intelligence n Network 1 Network 2 Network n Device 1 Device 2 Device n Smart City platform (Open) Managed Connectivity Smart Devices Top management commitment Long term partnership Why Telefonica? Best in class platform Customized solution Consultancy services 10
11 Innovation in IoT: Falling in Love with The Machine 11
12 Machines have their own needs Wider range of technical requirements: Coverage, Mobility, Autonomous Operation Connectivity prices matching the marginal utility of connecting more things Embedding connectivity inside a data-hungry software brain 12
13 and the XL size does not fit all Low-cost devices, even disposable Years of operation with a small battery Coverage of low-rate services into basements, manholes, etc. Optimized for small payloads, with low signaling overhead Overall ease of use: integration of devices, with apps and IT systems 13
14 The case for Low Power Wide Area Wide Area Networks are what telcos excel at Offered as a pay-as-you-go service, save customers the deployment and O&M of their own networks Device on-boarding is easier and faster No islands of connectivity - whole countries covered 14
15 1 Making cellular more attractive for makers Simplifying data plans Making it easier to get SIMs in small quantities to develop and test Reducing the price of communications module Embedding connectivity in a software application/process in a simple way (API) 15
16 1 That s why we ve opened Thinking Things Arduino-compatible CPU GSM radio Soldered SIM with global, preprovisioned data plan Integrated Li-Po battery management Simple API OTA upgrades Industrial-grade module designed to fit into production lines Cost below 10 (BOM) 16
17 1 and it works: Just Click and Do The Smartphone is not the End of History Cellular is also sexy for many other physical objects 17
18 2 We ll extend our cellular connectivity LPWA enables new use cases thanks to a new mix of coverage, energy consumption, and total cost Overlap with cellular is limited Significant upside in the number of potential connections 18
19 2 when we fully understand how to do it best SIGFOX has created a new category and unique value proposition + More than a fancy radio technology End-to-end service Developer-friendly global platform Proven fast deployment model Royalty-free model for devices Promising ecosystem around it 19
20 2015: Continue accelerating while building assets for future Continue accelerating our managed connectivity business (Smart m2m and Jasper platforms) with more volume, more quality and more efficiency Continue building our e2e solutions business by leveraging our strong catalogue and our solutions partner ecosystem. Push commercial plans and segmented value propositions in key verticals Accelerate sales in both horizontal and e2e solutions through our key commercial assets: OB sales channels, m2m sales specialist teams and m2m Global Partner Programme Keep focusing on IoT innovation, leveraging our dedicated organization, to bring new disruptive solutions in the market 20
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