Machine-to-Machine 06/12/2011. Towards user co-creation of value on the IoT. Démystifier l'internet des objets

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1 Towards user co-creation of value on the IoT Démystifier l'internet des objets Le Machine to Machine et l IoT : une réalité IoT: Repères et Projets Tweet us #ipforum User/Password: ipforum Ipforum231111! Machine-to-Machine 10 years Mobistar 1

2 Machine to machine: live at telco today Gert Pauwels, Mobistar Marketing Manager M2M (nat+int l) AWT_November 2011 Agenda what is M2M and its business potential? natural role of a mobile operator in M2M the business models in M2M key take aways 2

3 M2M is the ability for machines, devices, or objects to communicate (in real time) with other machines, devices or objects without human intervention Once upon a time in 2001 Request for Stolen Vehicle Recovery (after sales) Followed by Trains & Trucks & Compressors 3

4 The OEM market OEM International customers (France Telecom) Since 2001, Mobistar leads the way in the Machine to Machine segment in Belgium and beyond Mobistar M2M card evolution Focus since 2001 Dedicated financial reporting since : FT International M2M Center Mobistar is market leader 140, , ,000 80,000 60, ,978 End 10: 65 % market share 40,000 20,

5 Mobistar has 65% in Belgian market on M2M Market Size: End 2010: 350k SIMS End 2010 Telematics Point of Sales Telemetry 60% 7% 8% 10% 15% What can we do with M2M (Internet of Things)? tracking behavior M2M platform sensor-driven decision analytics Orange Business Services process optimization comply with regulation optimized resource consumption 5

6 Tracking behavior monitoring the behavior of persons, things or data through space and time engines tracking benefits fleet management route optimization increase efficiency reduce fuel consumption Process optimization automated control of closed (self-contained) systems preventive maintenance & optimization of field services predictive maintenance spare part management benefits service oriented products real-time monitoring economy of operating failure prevention 6

7 where the volumes are/will be coming from? Connections After Sales Tracking&Tracing mpos Remote monitoring Traditional Applications Network add-on Low hanging fruit High Cost Low Volume Smart Grid etoll ecall Regulatory Embedded network Specific products Low Cost High Volume Automotive Connected Devices Consumer Electronics OEM-based Embedded network Across all venues Low Cost High Volume Time Agenda what is M2M and its business potential? natural role of a mobile operator in M2M the business models in M2M key take aways 7

8 Canada USA Mexico Guatemala El Salvador Belize Honduras Nicaragua Costa Rica Panama Cuba Haiti Jamaica Ecuador Columbia Peru Chile Dominican Republic Puerto Rico Venezuela Bolivia Argentina Trinidad Guyana French-Guayana Surinam Paraguay Brazil Uruguay Greenland Iceland West Sahara Senegal Gambia Guinea-Bissau Sierra Leone Guinea Liberia Ireland Portugal Mauretania United Kingdom Spain Marocco Mali Algeria Netherlands Poland Germany Belgium Luxemburg Czech Republic Slovakia France Norway Denmark Switzerland Niger Burkina Faso Benin Nigeria Ivory Coast Ghana Togo Cameroon Croatia Bosnia-Herzegovina Serbia Italy Montenegro Bulgaria Tunesia Gabun Sweden Austria Slovenia Libya Chad Congo Hungaria Albania Angola Namibia Lithuania Greece Central Africa Finnland Romania Zaire Estonia Latvia Macedonia Sambia Botswana Belarus Moldawia Ukraine Cyprus Egypt Sudan Rwanda Burundi Zimbabwe Lebanon Israel Tanzania Swaziland South Africa Lesotho Turkey Jordan Syria Eritrea Uganda Kenya Georgia Armenia Iraq Dschibuti Somalia Ethiopia Malawi Mozambique Azerbaijan Kuwait Saudi-Arabia Yemen Iran Qatar Madagascar Usbekistan Turkmenistan Oman Kazakhstan Afghanistan United Arab Emirates Pakistan Tadschikistan Kirgistan India Nepal Sri Lanka Russia Bhutan Bangladesh Myanmar Mongolia China Laos Thailand Cambodia Malaysia Vietnam Brunei Taiwan Indonesia North Korea South Korea Philippines Australia Japan Papua-New Guinea New Zealand 06/12/2011 Orange Group employees employees dedicated to B2B 32 mobile operations 50B consolidated revenus, B2B 1/ researchers in Orange Labs B2B presence in +200 countries +200 employees dedicated to M2M +2.5 M m2m active SIM cards M2M solution building blocks & role mobile telco hardware connectivity integration applications service & solution provider deployment & run chipset selection module fabrication interface design device integration device fabrication M2M adapted tariff offer M2M adapted process M2M SIM cards M2M customer care connectivity++ Web services and portal deploying and operating lines consulting global solution design vendors sourcing IS integration deployment consulting application development back-end supervision interface end-user interface customer care maintenance support logistic service management continuous evolution Mobistar M2M connectivity 8

9 Key axis M2M development: standardisation Mobistar/Orange is strongly involved in international standardisation to speed up m2m developments standardisation is key to reliability, simplicity and flexibility Key axis supporting M2M development: QoS Orange/Deutsche Telekom/Telia Sonera partnership in M2M Orange FT Group Deutsche Telekom Teliasonera unmatched coverage trouble shooting your market expansio n covered! minimised business downtime global device testing save costs and faster time to market joint module certification quicker & optimise d integrati on 9

10 Mobistar global M2M connectivity is simple + flexible 19 hassle-free solution economy of scale and cost control one-stop shop simplified logistics 1 SIM simplified distribution local radio network IMC M2M communication services middleware platform gateway gateway core mobile network end to end responsibility Orange IP VPN Customer easy set-up and operations one single technical architecture/support faster project deployment and time to market Our mobile coverage delivers a truly global footprint IMC M2M communication services middleware platform gateway gateway Customer local radio network core mobile network end to end responsibility Orange IP VPN 10

11 We developed a series of new features delivering best in class M2M connectivity services IMC M2M communication services middleware platform gateway gateway Customer local radio network core mobile network end to end responsibility Orange IP VPN portal as state-of-the art tool on connectivity management service management service assurance customer administration billing information state-of-the-art tool full visibility and control in a few clicks user-friendly interface intuitive use tailor-made pages (personalization) 11

12 M2M portal one tool for customer s M2M business management Customer Name Complete M2M SIM portfolio, industry challenges driven dedicated M2M SIM (2FF) M2M 2FF reinforced MFF 1 MFF2 (ad hoc) (VQFN-8A) removable or soldered soldered only our M2M SIM portfolio matches M2M industry challenges: wide temperature range (-40 to +105 C) high resistance to vibrations corrosive environment (saline environment, humidity) fit to small machine (chip) manufacturing processes ( pick and place ) extended lifetime (up to 10/15 years) heavily secured (anti-theft/fraud mechanism) 12

13 Agenda what is M2M and its business potential? natural role of a mobile operator in M2M the business models in M2M key take aways 1 Business model M2M: Mobistar in its natural role 1 Option 1: direct Orange M2M Global Connectivity Service Providers End Customers 2 Option 2: through service provider 13

14 1 Business model M2M: natural role hardware connectivity integration applications service & solution provider deployment & run chipset selection M2M adapted tariff offer consulting consulting maintenance module fabrication M2M adapted process global solution design application development support interface design device integration device fabrication M2M SIM cards M2M customer care connectivity++ Web services and portal deploying and operating lines vendors sourcing IS integration deployment back-end supervision interface end-user interface customer care logistic service management continuous evolution end-to-end capabilities, accountability and services Partners Intl M2M Center Orange Service Provider or end cust. Partners Partners 1 Business models M2M: examples engines tracking end customer fleet management Service Provider 14

15 2 Business model M2M: Orange as an integrator hardware connectivity integration applications service & solution provider deployment & run chipset selection M2M adapted tariff offer consulting consulting maintenance module fabrication M2M adapted process global solution design application development support interface design device integration device fabrication M2M SIM cards M2M customer care connectivity++ Web services and portal deploying and operating lines vendors sourcing IS integration deployment back-end supervision interface end-user interface customer care logistic service management continuous evolution Orange end-to-end capabilities, accountability and services Orange devices Partners Mobistar M2M connectivity Orange Business Services Orange Partners Orange Business Services Partners 2 business model M2M: examples patient monitoring end customer gas consumption end customer 15

16 3 Business model M2M: put key assets in common hardware connectivity integration applications service & solution provider deployment & run chipset selection M2M adapted tariff offer consulting consulting maintenance module fabrication M2M adapted process global solution design application development support interface design device integration device fabrication M2M SIM cards M2M customer care connectivity++ Web services and portal deploying and operating lines vendors sourcing IS integration deployment back-end supervision interface end-user interface customer care logistic service management continuous evolution Orange Partners 3. business models M2M: example of innovative partnership business applicatio n IT for the network 16

17 4 model where M2M goes from B2B to B2C, Service Provider model can still work for some applications Service provider delivers the value added service to the retail end user End customer does not know the M2M connectivity provider Business model works when data traffic cost can be covered by the value added service ( low data traffic) M2M Global Connectivity Service Providers End Customers Retail Coyote Telematics Meets Social Media 1.4 Mio subscribers 8 countries Nr1 Europe Sims growth

18 Where is the real value? (1) Coyote is a service Personal Info Management Services Content Connection The bricks of the value chain Hardware Where is the real value? (2) => Internet of Things Coyote is a service 18

19 Agenda what is M2M and its business potential? natural role of a mobile operator in M2M the business models in M2M key take aways Key take aways M2M/internet of things is a big opportunity for Mobile Network Operators fuelled by three waves/drivers Orange embedded M2M business into its strategy Orange can deliver a wide portfolio of M2M specific offers/services at least 4 business models needed to address the different M2M opportunities Orange is able to address the 4 of them case by case discussion to take place on business model when we go to B2B2C requesting high data consumption 19

20 Yearly ecosystem event Mobistar/Orange s M2M event, one of the liveliest of the year, Jamie Moss, Analyst, Informa Telecoms & Media, Sept 2010 Thank You Enjoy the rest of the day ITS Belgium October

21 Thank you Local contact T F Towards user co-creation of value on the IoT Démystifier l'internet des objets Le Machine to Machine et l IoT : une réalité IoT: Repères et Projets Tweet us #ipforum 21

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