Emerging Trends and 
Opportunities 
Smart Homes & End User 
Engagement track_ 
TEF. Digital 
04.11.2014 
DISCOVER, DISRUPT, DELIVER 
Emilio Martinez de la Fuente 
Head of Utilities & Building Energy Efficiency 
Telefonica M2M Global Unit
1 Wireless Connectivity Technology 
2 The role of M2M and End User Engagement opportunities 
3 Generating new revenue streams from M2M 
DISCOVER, DISRUPT, DELIVER
Connectivity 
Wireless connectivity 
technology
Wireless connectivity technology 
Connected everywhere, anytime … anything_ 
devices at 2020 
DISCOVER, DISRUPT, DELIVER 
26bn 
Connected 
Total Connectivity 
everywhere 
7,6bn 
World population 
at 2020 
More connections than 
people 
Source: Gartner “Digital Marketing, Internet of Things and 3D Printing Are Digital-Business-Driven Disruptions for Supply Chains” 
Source: United Nations, World population to 2300
Bandwidth Security 
DISCOVER, DISRUPT, DELIVER 
Coverage Availability 
Highly 
scalable 
Multiple 
access 
technologies 
management 
Global 
footprint 
Quick time to 
market 
Flexible 
pricing 
Low 
maintenance 
costs 
Low entry 
cost 
Single point of 
contact 
Wireless connectivity technology 
Characteristics_ 
Technical Commercial
Wireless connectivity technology 
What does cellular technology offer_ 
Global standard 
High scalability 
More than 5 
billion 
connections 
worldwide 
Based on Global 
System for 
Mobile 
Communications 
(GSM) 
DISCOVER, DISRUPT, DELIVER 
Affordable cost 
Cost is 
decreasing 
continuously 
Real-time 
communications 
Average latency 
in the 
milliseconds 
range 
Trusted 
technology 
Deep 
understanding of 
security, 
information 
privacy, QoS 
and overall 
experience 
Trusted by 
public and 
private markets 
Customer 
experience 
More than 27 
years of 
experience 
dealing with 
people and 
businesses
Wireless connectivity technology 
How is connectivity addressed for Utilities_ 
1 PLC 
DISCOVER, DISRUPT, DELIVER 
PLC 
Concentrator 
Cellular 
2 3 
BTS 
RF Mesh 
RF 
RF 
RF 
RF 
RF 
RF 
6 Satellite 
SAT gateway 
4 RF Short Distance 
SD RF 
5 RF Long Distance 
LD RF 
Diverse models with different strengths and weakness
Wireless connectivity technology 
Where is each connectivity model positioned_ 
1 
2 
3 
4 
5 
6 
7 
PLC: very popular in some countries 
LPWA: early stage technology 
RF short distance: for specify models, using a 2nd tech. to 
backhaul (fixed conn.) 
RF long distance: dedicated grid, upfront investment 
needed 
RF mesh: for extremely concentrated areas or when cellular 
can´t 
3G & 4G 
• Preferred to ensure bandwidth & large range coverage 
• Good quality of services and VAS for covered areas 
• Leverages existing network, less costs of deployment 
Wifi: Potential solution for VAS like Digital Home 
DISCOVER, DISRUPT, DELIVER 
RFLD 
4 
Cellular 
6 6 
(2G, 3G, 4G) 
7 
WiFi 
6 
6 
VAS enabled 
PLC 
1 
CDMA 
2 4 
LPWA 
3 
RFSD 
(multihop) 
RF Mesh 
5 
6 
6 
Bubble size represent the potential to address Utilities’ needs 
- Range + 
- Bandwidth +
Wireless connectivity technology 
Where is each connectivity model positioned_ 
DISCOVER, DISRUPT, DELIVER 
No single technology 
to cover every utility need
Wireless connectivity technology 
Where is each connectivity model positioned_ 
DISCOVER, DISRUPT, DELIVER 
What is an optimal solution? 
Hybrid models
Wireless connectivity technology 
Where is each connectivity model positioned_ 
1 
2 
3 
4 
5 
6 
7 
PLC: very popular in some countries 
LPWA: early stage technology 
RF short distance: for specify models, using a 2nd tech. to 
backhaul (fixed conn.) 
RF long distance: dedicated grid, upfront investment 
needed 
RF mesh: for extremely concentrated areas or when cellular 
can´t 
3G & 4G 
• Preferred to ensure bandwidth & large range coverage 
• Good quality of services and VAS for covered areas 
• Leverages existing network, less costs of deployment 
Wifi: Potential solution for VAS like Digital Home 
DISCOVER, DISRUPT, DELIVER 
RFLD 
4 
Cellular 
6 6 
(2G, 3G, 4G) 
7 
WiFi 
6 
6 
VAS enabled 
PLC 
1 
CDMA 
2 4 
LPWA 
3 
RFSD 
(multihop) 
RF Mesh 
5 
6 
6 
8 
Bubble size represent the potential to address Utilities’ needs 
- Range + 
- Bandwidth + 
8 
Hybrid (cellular + 
RFMesh / LPWA) 
RF mesh first w. cellular backhaul 
• Maximizes coverage while keeping costs low 
• VAS enabled only for those covered with the Cellular 
network
Wireless connectivity technology 
What is to come_ 
10 Km 
100m 
DISCOVER, DISRUPT, DELIVER 
Data Rate (Mbps) 
Range 
10m 
Cellular 
Short range low throughput Short range high throughput 
1 10 100 
? 
1m 
Low Power Wide Area 
… Ideal networks for M2M 
 Low cost chipsets & communications 
fees 
 Low battery consumption 
 High reachability 
 Bandwidth 
… and connectivity technologies have room for improvement
DISCOVER, DISRUPT, DELIVER 
TIME 
Penetration / ubiquity 
Mainframe 
Networking 
Personal Computer 
Portability 
Internet 
Mobility 
Apps 
Social 
Ubiquity 
1960 1970 1980 1990 2000 2010 2020 
Virtually 
any object 
can be 
connected 
M2M is the next BIG business 
Many believe M2M is the next generation 
of personal computing_ 
Source : Morgan Stanley Research
M2M is the next BIG business 
Is the technology that establishes intelligent 
communication between things… 
DISCOVER, DISRUPT, DELIVER 
Enables companies to 
reduce costs and provide 
a better service, while 
improving the quality of 
life of people 
m2m
M2M is the next BIG business 
…with impressive impact in daily things_ 
DISCOVER, DISRUPT, DELIVER
M2M is the next BIG business 
Great benefits to companies, individuals and society… 
Efficiency 
DISCOVER, DISRUPT, DELIVER 
Productivity 
Cost Reduction 
Quality of Service
End User Engagement 
How is M2M being accepted by final users_ 
Connected “things” have started to proliferate… 
DISCOVER, DISRUPT, DELIVER
End User Engagement 
Smart Metering: what is being done in the UK_ 
UK government has a specific plan lead by the Central Delivery Body (DCB) 
DISCOVER, DISRUPT, DELIVER 
UK government 2014 budget for User 
Engagement: over 6M £ 
Centralized 
Engagement 
Program 
• Build consumer confidence and awareness 
• Increase consumer willingness to use smart meters 
• Assist vulnerable, low income and pre-payment consumers 
Objectives
End User Engagement 
Smart Metering: changes in consumer behavior_ 
UK government has a specific plan lead by the Central Delivery Body (DCB) 
ESMIG** through a review of 100 
pilots and 460 samples covering 
450,000 consumers suggested 
savings from around 5-6% from 
interventions without IHD, to an 
average of 8.7% with an IHD. 8,7%_ 
EDRP*** conducted trials that are 
more closely to 2% to 4% of energy 
savings . For gas, it was the 
provision of a smart meter rather 
2-3%_ 3%_ 
was most significant in delivering 
savings, with savings of around 3% DISCOVER, DISRUPT, DELIVER 
Centralized 
Engagement 
Program 
ACEEE* has estimated an average 
reduction of 3.8% in overall energy 
consumption as a result of better 
information on costs and use of 
energy which drives behavioral 
change 
3,8%_ 
(*) American Council for an Energy-Efficient Economy 
(**) European Smart Metering Industry Group 
(***) The Energy Demand Research Project 
than the IHD which 
electricity 
electricity 
electricity gas
End User Engagement 
Smart Metering experiences involving the end user_ 
DISCOVER, DISRUPT, DELIVER 
1,9 million smart meter program. 
Multiple types of market research (tracking and in-depth) 
Dedicated smart meter call center team 
Output 
 51% program support 
 96% smart meter 
acceptance 
1,4 million smart meters deployed. 
90-60-30 day communication strategy 
Deployed a mobile app with billing functionality 
Reduce Your Use program 
Customer satisfaction tracking 
“Biggest Energy Saver” Pilot 
Output 
 0,16% complain rate 
 500k participants in 
Reduce Your Use 
program
M2M 
Generating new 
revenue streams
Generating new revenue streams 
M2M allows to take advantage of new 
possibilities on a vast variety of fields_ 
Consumer 
Electronics 
DISCOVER, DISRUPT, DELIVER 
Smart Cities 
Utilities & 
Sustainability 
Transport Smart Home Security 
Health 
Industrial 
Solutions
Generating new revenue streams 
Smart Home, a greenfield to offer VAS_ 
Consumer 
Electronics 
DISCOVER, DISRUPT, DELIVER 
Stands for the automatic control of different systems in a home. The systems 
can range from energy management and HVAC, audio-visual and entertainment, 
communications, lighting, to security and assisted living systems. 
Smart Cities 
Transport Security 
Health 
Energy management 
and climate control 
Industrial 
Solutions 
Utilities & 
Sustainability 
Smart Home 
Security and Access 
Control 
Insurance 
Audio-visual and 
entertainment 
Microgeneration 
Control & 
automation 
Electric Vehicle
Generating new revenue streams 
End users demand connected services_ 
Over 49% of households without security are willing to pay about $10 monthly for 
self-monitored or $15 monthly for professionally monitored security 
44% of households without monitoring and control capability are 
DISCOVER, DISRUPT, DELIVER 
willing to pay $13 monthly for such a service 
40% indicated an interest in remote energy management services and nearly 
30% are also willing to pay something $10 per month for them on average 
Source: Strategy Analytics “Smart Home Systems: Consumer Attitudes and Adoption” 
Report analyzing the results of a survey of more than 6,500 consumers in France, Germany, Italy, the UK and US in 4Q 2012.
Generating new revenue streams 
Diverse competitors working towards the 
opportunity_ 
Utilities Telecommunication 
DISCOVER, DISRUPT, DELIVER 
companies 
Security 
Companies 
Device 
manufacturers 
Niche 
players
Generating new revenue streams 
Utilities’ opportunity to add smart 
home VAS to the portfolio_ 
Smart Metering and the use of intelligent meters to measure and manage 
energy consumption at home can be a first step towards Smarter Homes 
DISCOVER, DISRUPT, DELIVER 
Sub-stations 
Home / 
Building 
Generation Distribution Retail Selling 
Power Plant 
CT 
Connectivity 
Smart 
Meter 
Once deployed, connectivity can be leveraged to 
support many other Value Added Services
DISCOVER, DISRUPT, DELIVER 
Emilio Martinez de la Fuente 
Head of Utilities & Building Energy Efficiency 
Telefonica M2M Global Unit

Smart Homes & End User Engagement track: Emerging Trends and Opportunities

  • 1.
    Emerging Trends and Opportunities Smart Homes & End User Engagement track_ TEF. Digital 04.11.2014 DISCOVER, DISRUPT, DELIVER Emilio Martinez de la Fuente Head of Utilities & Building Energy Efficiency Telefonica M2M Global Unit
  • 2.
    1 Wireless ConnectivityTechnology 2 The role of M2M and End User Engagement opportunities 3 Generating new revenue streams from M2M DISCOVER, DISRUPT, DELIVER
  • 3.
  • 4.
    Wireless connectivity technology Connected everywhere, anytime … anything_ devices at 2020 DISCOVER, DISRUPT, DELIVER 26bn Connected Total Connectivity everywhere 7,6bn World population at 2020 More connections than people Source: Gartner “Digital Marketing, Internet of Things and 3D Printing Are Digital-Business-Driven Disruptions for Supply Chains” Source: United Nations, World population to 2300
  • 5.
    Bandwidth Security DISCOVER,DISRUPT, DELIVER Coverage Availability Highly scalable Multiple access technologies management Global footprint Quick time to market Flexible pricing Low maintenance costs Low entry cost Single point of contact Wireless connectivity technology Characteristics_ Technical Commercial
  • 6.
    Wireless connectivity technology What does cellular technology offer_ Global standard High scalability More than 5 billion connections worldwide Based on Global System for Mobile Communications (GSM) DISCOVER, DISRUPT, DELIVER Affordable cost Cost is decreasing continuously Real-time communications Average latency in the milliseconds range Trusted technology Deep understanding of security, information privacy, QoS and overall experience Trusted by public and private markets Customer experience More than 27 years of experience dealing with people and businesses
  • 7.
    Wireless connectivity technology How is connectivity addressed for Utilities_ 1 PLC DISCOVER, DISRUPT, DELIVER PLC Concentrator Cellular 2 3 BTS RF Mesh RF RF RF RF RF RF 6 Satellite SAT gateway 4 RF Short Distance SD RF 5 RF Long Distance LD RF Diverse models with different strengths and weakness
  • 8.
    Wireless connectivity technology Where is each connectivity model positioned_ 1 2 3 4 5 6 7 PLC: very popular in some countries LPWA: early stage technology RF short distance: for specify models, using a 2nd tech. to backhaul (fixed conn.) RF long distance: dedicated grid, upfront investment needed RF mesh: for extremely concentrated areas or when cellular can´t 3G & 4G • Preferred to ensure bandwidth & large range coverage • Good quality of services and VAS for covered areas • Leverages existing network, less costs of deployment Wifi: Potential solution for VAS like Digital Home DISCOVER, DISRUPT, DELIVER RFLD 4 Cellular 6 6 (2G, 3G, 4G) 7 WiFi 6 6 VAS enabled PLC 1 CDMA 2 4 LPWA 3 RFSD (multihop) RF Mesh 5 6 6 Bubble size represent the potential to address Utilities’ needs - Range + - Bandwidth +
  • 9.
    Wireless connectivity technology Where is each connectivity model positioned_ DISCOVER, DISRUPT, DELIVER No single technology to cover every utility need
  • 10.
    Wireless connectivity technology Where is each connectivity model positioned_ DISCOVER, DISRUPT, DELIVER What is an optimal solution? Hybrid models
  • 11.
    Wireless connectivity technology Where is each connectivity model positioned_ 1 2 3 4 5 6 7 PLC: very popular in some countries LPWA: early stage technology RF short distance: for specify models, using a 2nd tech. to backhaul (fixed conn.) RF long distance: dedicated grid, upfront investment needed RF mesh: for extremely concentrated areas or when cellular can´t 3G & 4G • Preferred to ensure bandwidth & large range coverage • Good quality of services and VAS for covered areas • Leverages existing network, less costs of deployment Wifi: Potential solution for VAS like Digital Home DISCOVER, DISRUPT, DELIVER RFLD 4 Cellular 6 6 (2G, 3G, 4G) 7 WiFi 6 6 VAS enabled PLC 1 CDMA 2 4 LPWA 3 RFSD (multihop) RF Mesh 5 6 6 8 Bubble size represent the potential to address Utilities’ needs - Range + - Bandwidth + 8 Hybrid (cellular + RFMesh / LPWA) RF mesh first w. cellular backhaul • Maximizes coverage while keeping costs low • VAS enabled only for those covered with the Cellular network
  • 12.
    Wireless connectivity technology What is to come_ 10 Km 100m DISCOVER, DISRUPT, DELIVER Data Rate (Mbps) Range 10m Cellular Short range low throughput Short range high throughput 1 10 100 ? 1m Low Power Wide Area … Ideal networks for M2M  Low cost chipsets & communications fees  Low battery consumption  High reachability  Bandwidth … and connectivity technologies have room for improvement
  • 14.
    DISCOVER, DISRUPT, DELIVER TIME Penetration / ubiquity Mainframe Networking Personal Computer Portability Internet Mobility Apps Social Ubiquity 1960 1970 1980 1990 2000 2010 2020 Virtually any object can be connected M2M is the next BIG business Many believe M2M is the next generation of personal computing_ Source : Morgan Stanley Research
  • 15.
    M2M is thenext BIG business Is the technology that establishes intelligent communication between things… DISCOVER, DISRUPT, DELIVER Enables companies to reduce costs and provide a better service, while improving the quality of life of people m2m
  • 16.
    M2M is thenext BIG business …with impressive impact in daily things_ DISCOVER, DISRUPT, DELIVER
  • 17.
    M2M is thenext BIG business Great benefits to companies, individuals and society… Efficiency DISCOVER, DISRUPT, DELIVER Productivity Cost Reduction Quality of Service
  • 18.
    End User Engagement How is M2M being accepted by final users_ Connected “things” have started to proliferate… DISCOVER, DISRUPT, DELIVER
  • 19.
    End User Engagement Smart Metering: what is being done in the UK_ UK government has a specific plan lead by the Central Delivery Body (DCB) DISCOVER, DISRUPT, DELIVER UK government 2014 budget for User Engagement: over 6M £ Centralized Engagement Program • Build consumer confidence and awareness • Increase consumer willingness to use smart meters • Assist vulnerable, low income and pre-payment consumers Objectives
  • 20.
    End User Engagement Smart Metering: changes in consumer behavior_ UK government has a specific plan lead by the Central Delivery Body (DCB) ESMIG** through a review of 100 pilots and 460 samples covering 450,000 consumers suggested savings from around 5-6% from interventions without IHD, to an average of 8.7% with an IHD. 8,7%_ EDRP*** conducted trials that are more closely to 2% to 4% of energy savings . For gas, it was the provision of a smart meter rather 2-3%_ 3%_ was most significant in delivering savings, with savings of around 3% DISCOVER, DISRUPT, DELIVER Centralized Engagement Program ACEEE* has estimated an average reduction of 3.8% in overall energy consumption as a result of better information on costs and use of energy which drives behavioral change 3,8%_ (*) American Council for an Energy-Efficient Economy (**) European Smart Metering Industry Group (***) The Energy Demand Research Project than the IHD which electricity electricity electricity gas
  • 21.
    End User Engagement Smart Metering experiences involving the end user_ DISCOVER, DISRUPT, DELIVER 1,9 million smart meter program. Multiple types of market research (tracking and in-depth) Dedicated smart meter call center team Output  51% program support  96% smart meter acceptance 1,4 million smart meters deployed. 90-60-30 day communication strategy Deployed a mobile app with billing functionality Reduce Your Use program Customer satisfaction tracking “Biggest Energy Saver” Pilot Output  0,16% complain rate  500k participants in Reduce Your Use program
  • 22.
    M2M Generating new revenue streams
  • 23.
    Generating new revenuestreams M2M allows to take advantage of new possibilities on a vast variety of fields_ Consumer Electronics DISCOVER, DISRUPT, DELIVER Smart Cities Utilities & Sustainability Transport Smart Home Security Health Industrial Solutions
  • 24.
    Generating new revenuestreams Smart Home, a greenfield to offer VAS_ Consumer Electronics DISCOVER, DISRUPT, DELIVER Stands for the automatic control of different systems in a home. The systems can range from energy management and HVAC, audio-visual and entertainment, communications, lighting, to security and assisted living systems. Smart Cities Transport Security Health Energy management and climate control Industrial Solutions Utilities & Sustainability Smart Home Security and Access Control Insurance Audio-visual and entertainment Microgeneration Control & automation Electric Vehicle
  • 25.
    Generating new revenuestreams End users demand connected services_ Over 49% of households without security are willing to pay about $10 monthly for self-monitored or $15 monthly for professionally monitored security 44% of households without monitoring and control capability are DISCOVER, DISRUPT, DELIVER willing to pay $13 monthly for such a service 40% indicated an interest in remote energy management services and nearly 30% are also willing to pay something $10 per month for them on average Source: Strategy Analytics “Smart Home Systems: Consumer Attitudes and Adoption” Report analyzing the results of a survey of more than 6,500 consumers in France, Germany, Italy, the UK and US in 4Q 2012.
  • 26.
    Generating new revenuestreams Diverse competitors working towards the opportunity_ Utilities Telecommunication DISCOVER, DISRUPT, DELIVER companies Security Companies Device manufacturers Niche players
  • 27.
    Generating new revenuestreams Utilities’ opportunity to add smart home VAS to the portfolio_ Smart Metering and the use of intelligent meters to measure and manage energy consumption at home can be a first step towards Smarter Homes DISCOVER, DISRUPT, DELIVER Sub-stations Home / Building Generation Distribution Retail Selling Power Plant CT Connectivity Smart Meter Once deployed, connectivity can be leveraged to support many other Value Added Services
  • 28.
    DISCOVER, DISRUPT, DELIVER Emilio Martinez de la Fuente Head of Utilities & Building Energy Efficiency Telefonica M2M Global Unit