Keynote about connected cars by Pavan Mathew, Head of Connected Car Telefonica Digital (CTIA 2013). In our blog you can see our chronicle about the event: http://goo.gl/7aSEZ

1. Connected Car
Come of Age
Pavan Mathew,
Head of Connected Car
Telefonica Digital
CTIA 2013, Las Vegas
May 22nd 2013

2. © Telefónica S.A | All rights reserved m2m
Industry wide agreement that the connected car is a big
opportunity, and a key market within M2M for operators…
Devices 50bn
People 7bn
Places 1bn

3. © Telefónica S.A | All rights reserved m2m
Devices 50bn
People 8bn
Places 1bn
Industry wide agreement that the connected car is a big
opportunity, and a key market within M2M for operators
250 Million Vehicles registered in
Europe
250
VEHICLES
- Telematics Update - - Telefonica - - European Commission -
Vehicles 1,1bn
Estimated penetration of
Telematics
<1%
PERCENT
Estimated Revenues from
Telematics Market in 2012
$2.3
Billion

4. © Telefónica S.A | All rights reserved m2m
Everyone agrees connected car is a big opportunity, and a
main market within M2M for operators…
Estimated penetration of
Telematics
<1%
PERCENT
250 Million Vehicles registered in
Europe
250
VEHICLES
Estimated Revenues from
Telematics Market in 2012
$2.3
Billion
Consumer Telematics
business by 2013
$ 41
BILLION
Telematics enabled
vehicles by 2010
30 M
VEHICLES
Global revenues will
grow up to US$11
billion in 2020.
$ 11
BILLION
Telematics enabled
vehicles sales by 2020
35 M
VEHICLES
… however mass adoption and revenue has been a challenge…
2005 Forecast Current Forecast
- Telematics Update - - Telefonica Market Research- - European Commission-
Devices 50bn
People 8bn
Vehicles 1,1bn

5. © Telefónica S.A | All rights reserved m2m
Standardization
Customer
Management
Service
customization
Cost Model
…due to challenges in business model
• HW cost impact
on vehicle retail
price
• Data network
roaming costs
• Multiple players in
the value chain
• Prepare
infrastructure to
sell services
(Business process
and tools)
• Billing & invoicing
capabilities a cross
countries
• Manage customer
relationship
• Flexibility on
service/bundles
• Adapt user
experience of
digital services to
car uses case (70%
of customers are
solo drivers)
• Standardize
Systems to attract
developers
• Interfaces to make
services/devices
work seamlessly

6. © Telefónica S.A | All rights reserved m2m
Partnership between OEMs & Telcos is critical to
address these challenges
Standardization
Customer
Management
Service
customization
Cost Model
• Telco are actively
working on cost
reduction in data
roaming costs and
SIM pricing
• Sharing revenues
is lading to new
model where risk
are share among
main stakeholders
• 1:1 customer
relationships
• Extensive
knowledge in CRM
& data mining
• Unique position to
bill & invoice
customers
• Content, apps,
agreements with
content
distributors…
• Extensive
knowledge in Ux,
and digital
services & apps
business models
• Experience in
standardization
processes &
forums

7. © Telefónica S.A | All rights reserved m2m
Supported by Service
Delivery Platform
Telefonica is developing its proposition to meet the
challenge
MANAGED CONNECTIVITY.
Best in class connectivity, leveraging our
unique footprint and selected roaming
partners with one global SIM
FOUNDATIONAL SERVICES
Addresses forthcoming global
regulations and customer expectations
 eCAll
 bCall
 Stolen Vehicle
 Navigation
 Point of Interest
DIFFERENTIATING P&S
Bringing in advanced digital product
and services to the automotive
industry
 Advanced Data Management:
• Hosting
• Analytics
 Insurance Telematics
 Fleet Management
 Media Content
 Location Based Advertising
DEVELOPER ECOSYSTEM.
Offer Telefonica's developer ecosystem
to the connected car, allowing the OEM
to manage the user experience
Power by

8. © Telefónica S.A | All rights reserved m2m
Meeting customer and OEMs needs
the theDriver OEM
New revenue streams
Vehicle differentiation
Improved service loyalty
Transforming the car into a service, transforming the
service into a business opportunity
With a Unified user experience controlled and
branded by the OEM
Gain insight on driver behaviour do to better target
cross-selling offers and services
Address regulations
eCall (Mandatory in EU by 2015), Contran 245,
GLONASS, global connectivity
Quality improvement & warranty reduction
Gain insight prior to saleable vehicles & Over-the-air fixes
reduces warranty saving
Improved CRM
Support new customer interactions and vehicle
information tracking in order to develop a personalized
relationship based on drivers’ preferences and behaviors.
Increased safety & security
Easy and practical services
Unified user experience
Feel secure on the road and vehicle
operation
Access easy-to-use navigation,
infotainment services in a safe way with a
smooth user experience
OEM branded experience

9. © Telefónica S.A | All rights reserved m2m
OnStar & Telefonica partnership
• Single Global Supplier – Ease of Managing Project, Accountability
• Global SIM – Improved Logistics and Manufacturing Chain
• Global Project Team – Sales, Post Sales Project Management
• Legal And Regulatory – Global Cooperation
• Future Development – Long Term Relationship!!!

10. © Telefónica S.A | All rights reserved m2m
& More to come
THANK YOU!
Pavan Mathew | Telefónica Digital
Head of Connected Car | M2M Global Services
Pavan.mathew@telefonica.com | Mob: +1 734 679 9381