Presentation by Bernardo Campillo Soto (Head of New IoT Business and Innovation) at IoT Solutions World Congress 2016.

3. The Future of IOT:
Living, Moving and Interacting Scenarios.
Bernardo Campillo Soto
Head of New IOT Business and Innovation
27.10.2016

4. Telefónica SA
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The 4th Industrial Revolution is here…

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29. CCDO IOT
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33. “We are in charge of creating and making it possible for
people to connect with the things that matter to them,
enabling and infinite world of possibilities”

35. Created with Haiku Deck

36. Home
Vehicles
Retail
Cities
Office
Worksite
Factories
Far Away
OnLifescenarios
Who I love
Where I Live
How I move What I do Where I work
Personal

38. CCDO IOT
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39. Interactions spheres closer to and around the person…
Personal
What
I do
Who I
love
Where
I live
How I
move
My City My space
My Workplace

40. CCDO IOT
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41. Every IOT vision is leveraged across 4 layers
IOT Analytics
Products
and services
OSS/BSS/IT
Physical
assets
3
2
1
4
IoT

42. Every IOT vision is leveraged across 4 layers
IOT Analytics
Products
and services
OSS/BSS/IT
Physical
assets
3
2
1
4
IoT

44. LPWA complement existing cellular networks and short range
solutions for applications requiring limited data throughput
Traditional cellular networks were designed for human communications and
have evolved into massive data transmission.
Machines may have other network needs.
Wide Range (i.e. 10 km)
and low-throughput
Deep indoor coverage
Lower cost connectivity
and devices
Reduced battery
consumption
LPWA Value
Proposition

45. Connectivity technologies ecosystem:
New technologies for new communication paradigms

46. Connectivity technologies ecosystem:
New technologies for new communication paradigms

47. LTE for IoT: Application Segmentation
NB-IOT is focused on massive applications
29/17Kbps
1Mbps
10Mbps
100Mbps
NB-IOT
CAT-M
CAT 1
CAT 4
MASSIVE SENSORS
Gas/Water/Electric Metering, Street lighting,
Parking control, Agriculture monitoring, Smoke
detectors, Assets tracking, Environment
monitoring, Industrial monitoring
WEARABLES
Personal/Pet trackers, Fitness bands, Patient
monitors, Smart Watch, Kids Tracking
DATA DEVICES
Connected healthcare, InCar hotspot, Video surveillance,
Retail Kiosks, Digital signage, Alarm panels
ROUTER
Routers, IoT Gateways, Network bridges
5$
6-9$
15$
40$

51. LTE has suffered a fragmentation creating a specific
focus on communications between machines
LTE
2014 2015 2016 2017 2018 2020- 25
cat3
cat1
cat0
LTE-M
NB
IOT
LTE-A
Next.
rel
5G
mMTC
uMTC
Ultra
reliable
massive
Next.
rel 5G
High speed

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CONFIDENTIAL

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CONFIDENTIAL

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CONFIDENTIAL

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CONFIDENTIAL

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CONFIDENTIAL

61. IOT vision is leveraged across 4 layers
IOT Analytics
Products
and services
OSS/BSS/IT
Physical
assets
3
2
1
4
IoT

64. AMAZON WEB SERVICES and IOT
Architecture templates, building blocks and applications

65. AMAZON WEB SERVICES and IOT
One stop shop for application development, deployment and management.
Flexible and scalable. Real-time infrastructure adaptation.
Pay-As-You-Grow models.
FROM CONNECTION TO DATA ROUTING

67. Source: IOT MEGATRENDS 2016 – Vision Mobile
There is a great opportunity and key players are building and leveraging in open
approaches for different sectors and IOT scenarios.
WHY an IoT OPEN ECOSYSTEM?

68. IoT developers evolution
Developers flood
into IoT fast
21%
oriented to
Smart Home
There is a huge developers’ talent market to capture….
Source: IOT MEGATRENDS 2016 – Vision Mobile
1 in 3
developers:
HOBBYISTS or
EXPLORER
10M
5M
2016 2017 2018 2019 20202015
Already 4.5 million individuals
active as IoT developers in 2015
WHY an IoT OPEN ECOSYSTEM?

69. Industrial IoT Open Ecosystems at a glance
Developer Commmunity Business Model
2.350 Active developers
2.760 Apps
PAY PER USE
• Billing by Amazon: 20%
• Billing by Dev: Free
2,5 MM Developers
3.000 Apps
3,8 MM Downloads
MONTHLY FEE
• No billing by Salesforce
2 MM Developers
3.800 Apps
PAY PER USE
• Billing by Azure
WHY an IoT OPEN ECOSYSTEM?

70. Telco Open Ecosystems at a glance
Developer
Commmunity
Marketplace
Pricing &
Business Model
Comments
10.000 developers
(through Eclipse IDE
and Eclipse
SmartHome Project)
Deutsche Telekom.
Partner channels
Oriented to partners
and cross-vendor
ecosystem.
Focus on SmartHome.
Qivicon brand in Germany and licensed to other operators
(e.g. KPN, eww Austria).
Partner network of compliant devices providers.
AT&T Developer
Program
AT&T own channels
(mainly online)
Free: Max 10 devices
Pro: 99$ p/year plus a
fee per device/month
depending on volume
and data point usage
M2X (development) and Flow (deployment) tools.
Telco capabilities: SMS, PoC, call mngmt, webRTC,
landline messaging, identity, etc.
IoT Starterkit including m2m SIM and hardware.
Seamless integration with MS Azure and IBM
Bluemix. Partnership with OpenShift (RedHat PaaS).
Orange Partner
APIs for IoT
Orange App Shop
Free.
Paid modes coming
soon.
M2M France (managed connectivity), LiveObjects API (MQTT-
based) and connection with telco capabilities (SMS, Identity
management).
HW starter kits (incl. LoRa offer).
http://www.pcworld.es/aplicaciones/orange-app-shop-nueva-tienda-de-aplicaciones-moviles
https://m2x.att.com/pricing
WHY an IoT OPEN ECOSYSTEM?

71. Understand developers by looking at their goals and motivations
Knowing the developers…
IoT Developer `s Segments
Source: IOT MEGATRENDS 2016 – Vision Mobile
Hobbyists
Moonlighters building their
own IoT solutions to learn
and have fun.
Explorers
Independent developers
gaining experience as a side
Project to seize on future
opportunities.
Hunters
Experienced developers
building an IoT business.
Focused on making money
from device sales, apps or
services.
Gun for Hire
Seasoned professionals
developing IoT solutions on
commission.
Product Extenders
Companies using IoT
technology to promote or
extended non-IoT products.
Optimizers
Engineers and system
integrators using IoT to
increase organizational
efficiency and reduce cost.
Data Brokers
Companies that monetize
digital content or data.
Gold Seekers
IoT startups aiming to hit VC
gold.
HOW to build an IoT OPEN ECOSYSTEM?

72. Knowing the developers…
Stages of ecosystem evolution and key developers segments
Source: “How to kick-star an ecosystem” – Vision Mobile
Seeding
“give hope to early adopters”
Growth
“give money to pros”
Maturity
“reach brands, verticals & media”
Hobbyist
Explorers
Guns for Hire
Hunters
Gold Seekers
Product Extenders
Content Publishers
Corporate IT
Hobbyist
Explorers
Guns for Hire
Hunters
Gold Seekers
Product Extenders
Content Publishers
Corporate IT
Hobbyist
Explorers
Guns for Hire
Hunters
Gold Seekers
Product Extenders
Content Publishers
Corporate IT
HOW to build an IoT OPEN ECOSYSTEM?

73. Knowing the developers and the market:
Developer segment mix is an indicator of market maturity
Source: IOT MEGATRENDS 2016 – Vision Mobile
Professional and SME approach.
Closer to B2B proposal.
Recreational and exploration approach.
Closer to B2C proposal approach.
Increased
maturity
HOW to build an IoT OPEN ECOSYSTEM?

75. IOT vision is leveraged across 4 layers
IOT Analytics
Products
and services
OSS/BSS/IT
Physical
assets
3
2
1
4
IoT

76. IOT
Analytics
Value
added
servicesConnectivity
All IOT P&S feed a powerful IoT Analytics layer
Hardware

83. How to build a Big Data / IOT Analytics strategy
2. Big Data usages
3. Focus on your own and
customers’ needs
4. Our Big Data strategy
formulation
1. Understanding our Data:
The 4 V’s

84. 1.- Understanding our Data: The 4 V’s
VarietyVolume VelocityVariability

85. BI Dashboards - Reporting
Data Analysis
(trends, patterns, alerts)
Predictive Analysis
Predictive Engines + Machine Learning
Prescriptive Analysis
Prescriptive Engines + Business
Knowledge + Cognitive Computing
Descriptive Analysis
B
A
C
2.- Big Data usages
Value
Difficulty
What
happened?
Why did it
happen?
What will
happen?
How to make
it happen?
Descriptive
Diagnostic
Prescriptive
PredictiveA
B
C

86. 3.- Focus on your own and customers’ needs
Can we monetize all
available data?
How could we use data to enhance our
processes?
How are we going to generate value
from data for our proposal to
customers?
1
2 3
Starting point: 3 fundamental questions to focus on the Big Data
opportunity

87. 4.- Our Big Data strategy formulation
Category Description Monetization Target Customer
Big Data as
Business Insight
Offers insights from our own
business analyzing data from
devices, connectivity and other
sources.
Operational efficiency
enhancements that enables you
to offer new services to our
customers.
Internal consumption
(Operation, Business Units)
Big Data as
Added Value
Adds value to our existing services,
proving specific benefits for
customers on functionality, ROI, etc.
Widen and enhances our P&S’s
value proposal with the
integration of data analysis.
External customers and
Business Units
Big Data as a
New Service
Offer access to data sets that can be
correlated among them and with
other external data sources.
Access to and usage of data sets
can be commercialized.
External customers and
Partners
1
2
3

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130. Bernardo Campillo Soto
Head of New IOT Business and Innovation
bernardo.campillosoto@telefonica.com
bernardone@twitter

137. Home
Vehicles
Retail
Cities
Office
Worksite
Factories
Far Away
OnLifescenarios
Who I love
Where I Live
How I move What I do Where I work
Personal

147. The standardization process of NBIOT has been one of the
fastest in the history of 3GPP
RAN
Rel 12 LTE
Q1 2015
Cat 0
Rel 13 LTE
Q1 2016
LTE-M
(LTE-CAT-M1)
Rel 13 LTE
20 June 2016
NB-IOT (LTE-NB1-
NBIOT)
NB-LTE
Rel 14 LTE
Neul/Huawei
Qualcom
NB-CIoT
NB-IoT
15Q1 16Q1 16Q2 2017
✓ NB-IOT standard frozen 22 June
✓ Network availability Q1 2017
✓ Chip/Module samples in Q1 2017
✓ Device samples availability Q2 2017
Huawei acquire Neul
Telefonica invest in Sigfox

148. 700
Mhz
800
MHz
Reuse Existing Assets
Low Band
Narrow Bandwidth (200KHz)
850/
900
Mhz
200k
GSM
200k
G/U/L
Standalone
200k
LTE
Guard
Band
200k
LTE
In Band
NB-IOT make the use of existing networks to address LPWA
market

149. GSMA Model1. 50
bytes every 2
hours
144 dB
5Wh
GSMA Model 3.
50 bytes every
day
5Wh
144dB
Brick: 3-6dB
Concrete:
12-35dB
Masonry: 12dB +
At a glance
Spectrum Throughput
DL/UL
Years
battery 1
Years
battery 2
Module
cost
Latency Penetration/
Reach (link
budget)
Transport
NB-IoT
(Single tone, in
band)
Licensed 29kbps/17kbps
23.9 36.7 9€ 5€ 1.6-9.9s 164dB
IP
SMS
No-IP (?)
LTE-M Licensed FD:1/.8Mbps
HD: .4/.3Mbps 16 35 10€ 6€ 0.3-4s 155.7dB
IP
SMS
No-IP (?)
2G Licensed 100 kbps
100 kbps 0.47 5 5€-10€ 300ms 144dB
IP
SMS
3G Licensed 168Mbps/
22Mbps
(HSPA+)
0.36 3.8 15-20€ 150ms 144dB*
IP
SMS
Sigfox Unlicensed 100/600bps
100/600bps 1 11 3€-5€ 2s* 156dB
No-IP
(Internet API)
Over 700bytes per tx LTE-M
lasts longer
NB-IoT and LTE-M solve the most important connectivity hurdles of
present M2M communications.

150. Each one has a different value proposition

151. Smart
Mobility
Smart
Cities
Smart
Retail
Smart
Energy
Smart m2m
3rd layer: e2e approaches to IoT services
Smart
Home
Open
Ecosystem
Powered by
New IoT
Business

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… ensuring the needed scalability, openness and security
levels for existing and future IoT end-to-end solutions
Big
Data
Products
and services
OSS/BSS/
IT
Physical
assets
IoT framework
Applications
enablement
Managed
connectivity
and devices
Networks
Devices
Telefonica vision
Applications
IoT
analytics Business Intelligence Machine learning Cognitive computing
Managed connectivity Managed devices Data routing
Cellular LPWA Others
High-end devices Low-end devices
PaaS Cloud services
Smart
cities
Industrial
solutions
Secure
monitoring
Threat
detection
PKI
Security
Internal
data
4
3
2
1
SME
Long tail
Smart
mobility
Smart
retail
Smart
energy

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‘Thinking Cities’, an enabler to capture and exploit city
data collected from sensors and other solution platforms
A
Big
Data
Products
and services
OSS/BSS/
IT
Physical
assets
Applications
enablement
Telefonica vision
Applications
PaaS Cloud services
Internal
data
…
Lightning Water Parking
Waste
management
Digital
signage
4
3
2
1

154. Devices are an important part in any IoT offer in massive
use cases the price is an important part …
✓ NB-IOT promise single-digit module cost in volume that will rival 2G
✓ Optimized chipsets integrate baseband, RF transceiver, PMIC, 20dBm PA + Switch and memory
✓ NB-IOT module cost may be 10-20% lower than comparable Cat M1 module, driven by
elimination of discrete PA + Switch, and potential for reduced complexity in baseband memory
Source: Telit