Delivering the m2m
experience, leading the
IoT pathway_
Rosalía Simón – IoT End-to-End Solutions
Director
Francisco Jariego – IoT Innovation Director
DISCOVER, DISRUPT, DELIVER
We want to lead the IoT opportunity
Customers at
the center of
our offer
In our Core
Business &
Beyond
Now &
in the Future
Connectivity & e2e
Solutions
Being a key growth engine for Telefonica
Short term & Long
term objectives
Business &
Consumers
2
DISCOVER, DISRUPT, DELIVER
3
We do what it takes
Future
needs
Today
business
In-country
teams
Global teams
(sales, product, operations)
In-house
solutions
Partners
agreements
+
+
+
DISCOVER, DISRUPT, DELIVER
4
With a consistent two-fold strategy
Innovation
DISCOVER, DISRUPT, DELIVER
Revenue
Growth 2014
>40%
Looking back
We are showing
consistent growth
and we are accelerating
2014
Looking forward
We are committed to
building on this
momentum
20172010
Enabling revenue acceleration and great ambition
5
DISCOVER, DISRUPT, DELIVER
Strengthening our value proposition with Geotab key partnership
Geotab: a success story with
>400K units
Best in class solution
Modular/adaptable to customer
needs
New key client segments
Key engine data
Plug & Play
Web
Application
Cloud
network
Self installable
module
APIs
Accelerating our fleet business (50% growth)
+
6
DISCOVER, DISRUPT, DELIVER
Bringing new solutions to market
• Leaderboard
• Live tracking
• Geo-fences
• Group sharing
• Trip history
• Driving insights
• Vehicle health
Connected car solution in partnership with Zubie
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
DISCOVER, DISRUPT, DELIVER
Bundling diverse e2e solutions to increase client return
With a strong telemetry catalogue: > 40 solutions
(e.g. vending, tanks, elevators)_
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
Tanks Brewery Fleet
IoT Platform
+ +
8
DISCOVER, DISRUPT, DELIVER
Our Energy Efficiency Solution
Helping retailers drastically reduce their energy bill
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
Engineer
Installation &
Maintenance
Web Platform
Lighting
Energy
Supply
HVAC
9
DISCOVER, DISRUPT, DELIVER
Transforming Valencia into a 100% intelligent city
Service NService 1 Service 2
Smart Devices
Managed Connectivity
Smart City platform (Open)
Service NService 1 Service 2
Intelligence 1 Intelligence 2 Intelligence n
Network 1 Network 2 Network n
Device 1 Device 2 Device n
From traditional isolated model To a holistic integrated view
Why
Telefonica?
Consultancy services
Top management
commitment
Best in class platform
Customized solutionLong term partnership
10
DISCOVER, DISRUPT, DELIVER
Innovation in IoT: Falling in Love with The Machine
11
DISCOVER, DISRUPT, DELIVER
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’
Machines have their own needs…
12
DISCOVER, DISRUPT, DELIVER
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
…and the XL size does not fit all
13
DISCOVER, DISRUPT, DELIVER
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
The case for Low Power Wide Area
14
DISCOVER, DISRUPT, DELIVER
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)
① Making cellular more attractive for makers
15
DISCOVER, DISRUPT, DELIVER
Arduino-compatible CPU
GSM radio
Soldered SIM with global, pre-
provisioned data plan
Integrated Li-Po battery management
Simple API
OTA upgrades
Industrial-grade module designed to
fit into production lines
Cost below 10€ (BOM)
① That’s why we’ve opened Thinking Things…
16
DISCOVER, DISRUPT, DELIVER
The Smartphone is not the End
of History
Cellular is also sexy for many
other physical objects
① …and it works: Just Click and Do
17
DISCOVER, DISRUPT, DELIVER
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
② We’ll extend our ‘cellular’ connectivity…
18
DISCOVER, DISRUPT, DELIVER
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
② …when we fully understand how to do it best
SIGFOX™ has created a new category and unique value proposition
+
19
DISCOVER, DISRUPT, DELIVER
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
2015: Continue accelerating while building assets for future
20
DISCOVER, DISRUPT, DELIVER

Delivering the m2m experience, leading the IoT pathway

  • 1.
    Delivering the m2m experience,leading the IoT pathway_ Rosalía Simón – IoT End-to-End Solutions Director Francisco Jariego – IoT Innovation Director
  • 2.
    DISCOVER, DISRUPT, DELIVER Wewant to lead the IoT opportunity Customers at the center of our offer In our Core Business & Beyond Now & in the Future Connectivity & e2e Solutions Being a key growth engine for Telefonica Short term & Long term objectives Business & Consumers 2
  • 3.
    DISCOVER, DISRUPT, DELIVER 3 Wedo what it takes Future needs Today business In-country teams Global teams (sales, product, operations) In-house solutions Partners agreements + + +
  • 4.
    DISCOVER, DISRUPT, DELIVER 4 Witha consistent two-fold strategy Innovation
  • 5.
    DISCOVER, DISRUPT, DELIVER Revenue Growth2014 >40% Looking back We are showing consistent growth and we are accelerating 2014 Looking forward We are committed to building on this momentum 20172010 Enabling revenue acceleration and great ambition 5
  • 6.
    DISCOVER, DISRUPT, DELIVER Strengtheningour value proposition with Geotab key partnership Geotab: a success story with >400K units Best in class solution Modular/adaptable to customer needs New key client segments Key engine data Plug & Play Web Application Cloud network Self installable module APIs Accelerating our fleet business (50% growth) + 6
  • 7.
    DISCOVER, DISRUPT, DELIVER Bringingnew solutions to market • Leaderboard • Live tracking • Geo-fences • Group sharing • Trip history • Driving insights • Vehicle health Connected car solution in partnership with Zubie 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.
    DISCOVER, DISRUPT, DELIVER Bundlingdiverse e2e solutions to increase client return With a strong telemetry catalogue: > 40 solutions (e.g. vending, tanks, elevators)_ 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 Tanks Brewery Fleet IoT Platform + + 8
  • 9.
    DISCOVER, DISRUPT, DELIVER OurEnergy Efficiency Solution Helping retailers drastically reduce their energy bill 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 Engineer Installation & Maintenance Web Platform Lighting Energy Supply HVAC 9
  • 10.
    DISCOVER, DISRUPT, DELIVER TransformingValencia into a 100% intelligent city Service NService 1 Service 2 Smart Devices Managed Connectivity Smart City platform (Open) Service NService 1 Service 2 Intelligence 1 Intelligence 2 Intelligence n Network 1 Network 2 Network n Device 1 Device 2 Device n From traditional isolated model To a holistic integrated view Why Telefonica? Consultancy services Top management commitment Best in class platform Customized solutionLong term partnership 10
  • 11.
    DISCOVER, DISRUPT, DELIVER Innovationin IoT: Falling in Love with The Machine 11
  • 12.
    DISCOVER, DISRUPT, DELIVER Widerrange 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’ Machines have their own needs… 12
  • 13.
    DISCOVER, DISRUPT, DELIVER Low-costdevices, 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 …and the XL size does not fit all 13
  • 14.
    DISCOVER, DISRUPT, DELIVER WideArea 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 The case for Low Power Wide Area 14
  • 15.
    DISCOVER, DISRUPT, DELIVER Simplifyingdata 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) ① Making cellular more attractive for makers 15
  • 16.
    DISCOVER, DISRUPT, DELIVER Arduino-compatibleCPU GSM radio Soldered SIM with global, pre- provisioned data plan Integrated Li-Po battery management Simple API OTA upgrades Industrial-grade module designed to fit into production lines Cost below 10€ (BOM) ① That’s why we’ve opened Thinking Things… 16
  • 17.
    DISCOVER, DISRUPT, DELIVER TheSmartphone is not the End of History Cellular is also sexy for many other physical objects ① …and it works: Just Click and Do 17
  • 18.
    DISCOVER, DISRUPT, DELIVER LPWAenables 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 ② We’ll extend our ‘cellular’ connectivity… 18
  • 19.
    DISCOVER, DISRUPT, DELIVER Morethan 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 ② …when we fully understand how to do it best SIGFOX™ has created a new category and unique value proposition + 19
  • 20.
    DISCOVER, DISRUPT, DELIVER Continueaccelerating 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 2015: Continue accelerating while building assets for future 20
  • 21.