Building cities for the networked society

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1 Building cities for the networked society

2 Building smarter cities More and more people are living in cities. Every hour the global urban population grows by 7,500 people, due to migration, urban sprawl and natural population growth. That is more than 5 million new city dwellers every month equal to the population of, say, Miami or Riyadh. Many of these people are urban migrants, moving to cities in emerging markets in search of a better life. They might be seeking employment, so they can earn a living and care for their families; they might be looking for opportunities, greater freedom, a sense of belonging, or just better schools and hospitals. The world s top 600 cities produce 60 percent of global GDP with just 20 percent of the population. Yet cities need to evolve, both to become more livable and to cope with the increasing demands imposed by the expanding population. For this evolution to be sustainable, it has to happen in symbiosis with the surrounding countryside, other cities and the world at large. Part of this evolution is digital. The past 25 years have brought a digital age powered by ICT with mobile communication, massive computing power, high-speed data access and the cloud. Up to 60 percent of today s mobile data traffic is generated in metropolitan areas with a population density of more than 1,000 people per square kilometer and global mobile data traffic is forecast to increase by a factor of ten by Crammed, complicated and often on the edge, cities can be seen as the connections between people, businesses and public spheres. And now these cities require a new foundation layer, a technological infrastructure to connect populations, to enable innovation and new solutions, and to improve the efficiency of physical infrastructure, roads, water, wastewater and emergency services. Creating this technological infrastructure is a tremendous challenge. Cities are built on huge, fixed networks of roads and buildings, with an intricate system of businesses, public agencies and individuals all exerting influence. 7,500 people per hour Ericsson has developed the Networked Society City Index to identify and measure the extent and development of ICT-enabled benefits to cities. The index helps illustrate how a multitude of stakeholders can work together to implement ICT strategies that address a city s social, economic and environmental needs. Its framework assists city mayors, local authorities and decision-makers to measure and analyze their cities ICT maturity and the triple-bottomline results of their ICT investments. But it is just a starting point. The ultimate aim is the sort of smart city that can solve the challenges of urbanization and help alleviate other global challenges such as climate change and poverty. In a future with 50 billion connected devices, as foreseen by Ericsson, connectivity will no longer just be for people, data, services and applications, but also for billions of things. It is a future where intelligent transport solutions speed up the flow of people, goods and services, reduce fuel consumption and save lives. Where smart grids increase energy efficiency, enable more renewable energy sources and support the widespread deployment of electric cars. And where remote monitoring provides access to health care that would otherwise be economically unsustainable, helping raise the quality of care for everyone. Ericsson believes that effective smart-city architecture has its foundation in a flexible and scalable broadband network that serves as the backbone between all kinds of data, services, applications and subscribers. The cloud technology and services enabled by such a network are opening up new opportunities for value creation based on networking and lowering the barriers to innovation. At Ericsson, we know cities. In the world s top 100 cities, we have provided 40 percent of the mobile telecommunications infrastructure,

3 and are a leader in innovative smart-city solutions. We have the technology leadership to build complex systems, the scale required to handle billions of users and connected devices, and the service capabilities required to integrate, maintain and operate them. We take the lessons we have learned from managing complex telecom networks areas such as service provisioning, charging, ID management, customer relationship management and network management and utilize them in other network-like settings such as smart grids and transportation networks. The challenges vary from city to city, dependent on local and national governmental structures, business climate and level of development. But emerging-market cities also have unique opportunities, and can leapfrog stages of development. In sectors such as banking and health, emergingmarket cities can create solutions such as mobile money and e-health that are more efficient than those in many developed urban areas. Such innovative ICT-based approaches might even be the only way to satisfy the needs of millions of people at a reasonable cost and pace while still balancing the triple bottom line of social, economic and environmental effects. Paris The City of Light has a long history of radically redefining its urban identity. Starting in the 1850s, under the direction of Baron Haussmann, the government cleared many of Paris winding medieval streets to create the city of long boulevards and neoclassical facades that millions love today. Today the French government is driving transformations that are just as radical. In 2011, it approved Le Grand Paris, a project that includes USD 30 billion in new subway and train lines to overhaul the urban, social and economic geography of the Paris Basin. The goal is to make Paris both more human and appealing. That also means more connected, including the rollout of fiber-optic networks across the entire city, public internet access, and a series of open data and e-democracy initiatives. Paris is also starting the world s largest government program in electric car sharing. The Autolib project will use a similar logic to most bikesharing systems, with online reservations and 3,000 electric cars at more than 1,000 stations around the city using ICT to get more out of other city infrastructure, in this case cars and roads.

4 ICT is the key to a healthy city Investments in infrastructure of any kind such as highways, airports, railways, telephony or broadband networks affect the way people interact and the way goods and services are produced and distributed. Our public infrastructure with systems as diverse as traffic lights, wastewater systems, rail transport, power supply and public safety increasingly depends on constant flows of data and information enabled by ICT solutions and, specifically, broadband. Broadband investments usually generate stronger network effects, both indirect and induced, than other types of infrastructure projects. A road or a railway improves the speed, efficiency, comfort and safety for transportation of people or products. However, it improves only that specific means of transport. Broadband, on the other hand, spurs new consumer and producer behaviors, functionalities and businesses. Digital infrastructure acts as a platform that drives innovation beyond the ability of classic industries. In developed countries, increasing broadband penetration by 10 percentage points lifts GDP by around 1 percentage point; doubling broadband speed increases GDP by around 0.3 percentage points; for every 1,000 additional broadband users, roughly 80 new jobs are created. 1 The multiplier effect may be weaker in emerging markets, but cities in these markets generally do have greater ICT maturity than rural areas, and still benefit disproportionally from increased broadband coverage. Broadband specifically helps societies develop in areas including but not limited to: > > Job creation and GDP growth > > Access to health care > > Access to education > > More efficient delivery of government services > > Increased social interactions and opportunities to participate in public debates and discussions > > Optimized energy consumption > > Reducing CO 2 emissions > > Safety and remote-security applications > > Increased consumer awareness of environmental impact and use of e-services. 70% in cities by 2050 If properly implemented, broadband creates a virtuous circle. It acts as an underlying enabler, providing a foundation for change and setting the stage for more advanced ICT services. In successful cities, ICT innovations are aimed primarily at benefiting citizens, in areas such as increasing ICT literacy, telecommuting, e-education, m-payments and improved public transportation use and efficiency. Such initiatives have wide-ranging benefits for societies. Half of the respondents in an Ericsson survey 2 said that internet access was critical to their ability to carry out their work. This was followed by access to high-speed or broadband internet (chosen by 45 percent), desktop computers (38 percent) and mobile phones (36 percent). The integration of ICT throughout society will bring new challenges for society to address. Personal integrity and cybersecurity are important areas that need to be addressed constantly. The Networked Society City Index 3 provides a useful way to measure the benefits of ICT to cities. The index reports released so far cover two main dimensions: the city s perspective and the individual city dweller s (the third report, on the business perspective, will be released this year). The first provides a city-centric view of ICT maturity in the cities studied. Representing investments made in ICT, this aspect illustrates availability, performance and usage levels. Momentum is

5 But first, let me remind you how ICT can help us smarten up our cities Neelie Kroes (Vice-President of the European Commission responsible for the Digital Agenda) Using ICT to build Sustainable Cities, ICT Conference Brussels, May 3, typically set by the ICT investment climate and direct economic output. The second dimension of the index shows a benefit-oriented view across all parts of the triple bottom line. This represents the benefits in terms of city attractiveness, in aspects such as health care, education, economic output, city efficiency and environmental performance. Momentum here depends on complex interdependences and is captured using selected indicators and qualitative case studies. One key insight from the first city-index releases is the strong connection between ICT maturity in cities and their triple-bottom-line development. Studies have shown that the stronger networked cities have progressively targeted dedicated application areas such as health, education or intelligent traffic management. But it is also important to look beyond efficiency to sustainability. Future cities will need to avoid taking a huge toll on scarce resources. A low-carbon economy requires a shift away from dealing with problems after they have occurred. Advanced ICT solutions can be used proactively, helping deliver smart energy, smart transportation, smart health and smart education. Emergency services Mobile broadband technology can help emergency service personnel easily share mission-critical information from data transmission between dedicated terminals to secure end-to-end communication using standard mobile phones and laptops. This same technology can also be used to inform the public in an emergency, giving them precious time to prepare and plan their escape. In a recent interview with Firehouse magazine, Fire Chief Charles Hood, from San Antonio in the US, listed some of the ways his department is using ICT solutions, including electronic patient-care records, computer-aided dispatching systems, automatic vehicle location and mobile data, including routing and site information. Hood said the new dispatching system had reduced emergency medical service time by nearly one-and-a-half minutes, and the fire response time by a minute and seven seconds, compared with the department s old mainframe system. Emergency services can use ICT solutions to take control of a rapid flow of information both to proactively prevent incidents, and dispatch resources quickly and efficiently. Millions of connected devices can work to protect infrastructure such as bridges and shopping malls and, most importantly, the people of a city.

6 The Networked Society City Index

7 Transportation The transport sector represents about 13 percent of global CO 2 emissions, and this is set to rise. New infrastructure alone cannot solve the challenges of congestion and emissions. By applying ICT-based innovation to all transport modes air, water, road and rail intelligent transport systems can optimize how we get around and help make transport cleaner, safer and more seamless. ICT can also allow remove the need for travel and transport. Using collaborative tools such as video conferencing, people can avoid having to travel to a meeting while still achieving the same results. Digitalization, the use of digital products instead of physical ones, can remove the need for transport and physical production: with digital cinemas, for example, reels of film no longer have to be produced and then shipped all around the world. The management of peak loads is essential in all critical infrastructure networks transportation, electricity distribution and telecom. Skills and technology used to deploy and manage mobile communication services can be applied successfully to traffic management, transport charging systems, vehicle-centric services, traffic safety programs and goods management, all through a combination of data processing, service enablement and connectivity. Ericsson is working with transport authorities, the automotive industry, utilities and network operators to explore new opportunities to deploy energy-smart transport solutions. Some of the challenges we address are: > > Electric vehicle charging Ericsson is involved in a research project that aims to develop smart systems for controlling, measuring and billing for electricity when charging using any kind of electrical outlet, while allowing electricity utilities to safely coordinate the simultaneous charging of thousands of electric vehicles > > ecall an EU directive on automatic accident alarms, installed in new cars and using the mobile network > > ConnectedCar provide services over the mobile network that improve the experience for the driver and passengers, meet commercial and regulatory demands, and benefit everyone > > Carbon-smart commuting to solve individual, employer and transport provider challenges in the daily commute. > > There is a strong connection between ICT maturity in cities and their triple bottom line development > > High-scoring cities can gain traction by exploiting ICT to meet targets within social, economic and environmental dimensions > > Medium-scoring cities ought to cherry-pick key city challenges that can be addressed with ICT-based solutions > > Low-scoring cities can make progress by addressing the digital gap through for example ICT literacy training for the underprivileged, and ensuring the integration of ICT into public administration.

8 Beyond broadband In a connected future, infrastructure will be a vital part of solving the challenges faced by our cities. Extending far beyond broadband, transformative ICT solutions are now being deployed across industry segments as diverse as transport, building, utilities, health, banking and the public sector. With mobile broadband providing internet access everywhere, connectivity and networking are becoming independent of location. These will combine with falling prices for communication modules, connectivity services and embedded computing, and openness and simplicity to drive new services. ICT solutions in every sector will vary greatly the equipment and services needed to manage a water system are dramatically different from a citizen-focused e-government program, for instance. But they all have one thing in common: a reliance on networks to transmit information and distribute products and services. Networks that can support exponential growth in the number of devices and meet the needs of all the various programs are crucial in a future of more than 50 billion connected devices. Real-time capabilities and quality-ofservice guarantees will be crucial. The solutions must be open and standards-based to provide interoperability between ecosystem players and vertical industries. And they have to address privacy and cybersecurity issues. To support a sustainable, highquality lifestyle for its people, a smart city also needs a smart grid. For nearly 100 years, the grid has been a passive network carrying energy one way from large centralized generators, over large transmission networks, to large distribution networks and their users. Now, networks carry energy and information between distributed generators and users, dynamically negotiating prices for demand and supply. For these new grids, ICT is fundamental. But while utilities have a long history of using IT systems and data communications, notably for electricity transmission networks, the new smart grids will require considerably more investment in time, skills and capital in ICT than before. Projected traffic generation, 2016 Source: Ericsson (2011). 100% 80% 60% 40% 20% 0% Estimated 2016 world population distribution* To make smart grids a reality, utilities, regulators and governments need to develop more holistic and far-reaching smart-grid plans, addressing issues such as: > > Mass deployment of cheap wireless sensors > > Electric-vehicle charging > > Home energy-management solutions > > New smart communications requirements from water and gas utilities; and > > Large-scale data analysis. For example, electric vehicles are emerging as a revolutionary concept requiring leadership and ICT transformation from the energy sector, not just power with which to charge the battery. The car of tomorrow s smart city will have multiple applications requiring connectivity, served by multiple providers. An integrated communications network supporting personto-machine and machine-tomachine interactions is the only way to deliver this outcome efficiently. Rural Suburban Urban Metro Another example of a value-added service is the control, monitoring and remote diagnosis of home appliances, including white goods, consumer electronics and heating/cooling systems, all of which contribute to peak load and directly affect consumer expectations on energy companies. * Metro: > 4,000 people/sq km Urban: 1,000-4,000 people/sq km Suburban: 300-1,000 people/sq km Rural: < 300 people/sq km

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10 Ericsson: city savvy, street smart For many years, we have been addressing the increasing importance of communication and ICT for society. We are working with key global industry and academic researchers to measure, report and forecast the global implications for and development of smart cities. This work includes the global industry adoption of communications technology, global smart-grid evolution and regulatory reforms. The company has produced extensive research through both Ericsson ConsumerLab and our city index, produced in collaboration with Arthur D. Little. Ericsson s primary business within the city context is in telecom infrastructure and services. We are a major provider in the top 50 cities worldwide (based on GDP 2020 predictions from the World Bank), positioning us perfectly to assist in urban deployments anywhere on the planet. Sydney, Australia Ericsson has designed and integrated a multivendor wireless access network that enables two-way communications between electrical control devices, back-end systems and households. The network was rolled out in 2011 across 150 sites covering the metropolitan area of Sydney, Australia, and regional areas north of the city. The telecommunications network will collect data from 12,000 smart monitoring devices being installed in the electricity distribution network, up to 3,000 mobile field computers and 200 zone substations. But we are also closely involved in other sectors, such as utilities, particularly with power companies, and the safety and security sector, typically with first responders and emergency response agencies. Ericsson is also expanding its solutions for transportation and municipal government, including innovative electric-car charging, municipal administration and e-governance solutions. Today Ericsson is involved in cutting-edge smart-city projects around the world. These include: > > Stockholm Royal Seaport, a sustainable city district in the Swedish capital, which is being created from an industrial port area. Ericsson is ICT advisor for this project, working in collaboration with partners from other industries to develop concepts and solutions for city development. > > Smart Santander, a project in Santander in Spain, in which 20,000 sensors have been embedded into the city s infrastructure, including smart parking, irrigation control and augmented reality. > > In Johannesburg, South Africa, where Ericsson has delivered a full 900km fiber-optic network from strategic planning and rollout through to operations and maintenance until 2025, as part of Johannesburg s 2040 Growth and Development Strategy. 80% of CO 2 emissions Transportation in Curitiba, Brazil > > Buses in Curitiba, Brazil, are connected via 3G mobile broadband networks > > Vivo/Telefónica, Dataprom and Ericsson > > Electronic ticketing > > Real-time information > > Fleet management systems > > Real-time information improves efficiency and reduces fuel costs.

11 Conclusion Cities are a major source of global innovation, and increasingly provide ways to help make the world more livable and sustainable. Solutions from e-health, telecommuting and video meetings, to mobile applications can help residents choose a sustainable lifestyle. The spread of broadband is accelerating the development of transformative ICT solutions, which in turn foster new business models and opportunities. As new models evolve, the challenges of personal integrity and cybersecurity must be addressed continously. When we connect things, we build an infrastructure where new ideas and innovation can develop. Yet for people, businesses and public authorities to have faith in any digital information ecosystem, they must be able to trust that their data will be properly safeguarded. The issues of privacy and cybersecurity must constantly be revisited to ensure personal and business data integrity. Once we combine mobility, broadband, the cloud and security, we achieve a creative critical mass as the ideas generated become affordable and accessible for everyone anywhere and at any time. This is a new kind of creativity, the wisdom of the network, a mosaic of small ideas that will transform the world s cities. This mosaic will create better opportunities for people in cities to shape their lives by making conscious decisions about their well-being and that of their family. This will strengthen the fabric of the cities they live in and provide a platform for even greater progress. It is in cities that we find the imagination and vigor necessary to make innovation flourish and to truly lead us into the Networked Society. References 1. Ericsson, 2011, Networked Society City Index (report), media/hosting/city_index_report.pdf 2. Ericsson, 2011, ConsumerLab report, City Life Ericsson, Networked Society City Index, 4. Electric Vehicle Intelligent Infrastructure (ELVIIS), 75% of energy consumption

12 Ericsson is shaping the future of mobile and broadband internet communications through its continuous technology leadership. Providing innovative solutions in more than 180 countries, Ericsson is helping to create the most powerful communication companies in the world. The content of this document is subject to revision without notice due to continued progress in methodology, design and manufacturing. Ericsson shall have no liability for any error or damage of any kind resulting from the use of this document Ericsson AB SE Stockholm, Sweden Telephone Fax ASL-12: Uen Ericsson AB 2012

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