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hugues sévérac

dr of strategy for m2m communications

orange

6-7 avril 2011

convergence énergie – télécomsAsprom - Adelit

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equipment monitoring

asset tracking

fleet management

supply chain optimization

inventory management

machine-to-machineprocess & costs reduction

telecom is being integrated in many sectorsthe beginning of the “internet of things”

smart metering & grids

consumer devices

connected car

home automation

smart cities

live product information

personalized objects

augmented reality

customer communities

remote diagnostic

cross-selling

ownership history

mainly B2B

mainly B2B2C

today‟s business

today‟s projects

tomorrow‟s revolution

2010 2015 2020

connected societyconnecting people & machines

virtual thingsdigitally enhanced things

B2B2C & B2C

time

market size

3

smart grids will happen

Expected increase of

the world’s population

4

but when ?

5

…maybe sooner than we think

2006

Source: Agence Internationale de l‟Energie nov 2010

6

1900 1950 2000

Source: Austin Energy

Production Transport Distribution Retail

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2020

Source: Austin Energy

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grids get smarter powered by near real-time flows of information

GenerationTransport

& DistributionSalesMetering Consumption

– User information

– Demand Response

– Energy management/efficiency

– New services

Automated Network Operations

° Demand/supply mgt

° Load management

° Power Quality

° Fault detections

° Self-healing grids

Mass Storage

- Renewable energies:

new sources,

capacity uncertainty

- Deferred investment with peak shifting

- Flexible demand

- Energy efficiency

- Energy production

- Electrical Vehicles

- Reliability & security

- Cost efficiency

- Distributed generation

- Network optimization

– New offers & services

– Usage based billing

Sm

art

Gri

ds A

pp

lica

tio

ns

Dri

vers

Information & Communication Technologies in the grid enables

- dynamic „real-time‟ flows of information for improved control & management

- more interaction between suppliers and consumers

– New players

– Micro-generation

- Deregulation

- New players:

energy suppliers,

energy efficiency service

providers

- Advanced information

- Remote reading

- Dynamic pricing and

payment systems

- Remote configuration

- “Real time” billing

- Smart device control

- Regulation

- Maintenance costs

reduction

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telecom is critical in most of smart grids landscape

off site

home

B2BB2C

energy

efficiency

demand response

smart metering

distribution

automation

energy retailing

local production

energy production

electric vehicle

place

marke

t

smart home

telecommunications

skills critical

legend

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smart grids is a network of networks of many subsystems

Ref EEGI

Source : NIST

smart grids value is supposed strong but highly debated and contingent

to national contexts (up to $130 billions per year in the US)

Source: McKinsey/ Smart grids benefits in the US$ 131

billions

Grand Total

key takeaway

load

management

smart

metering

distribution

automation

every country & every utiliy is different. business development crucial

cpl is dominant in europe for electricity: gprs for concentrators. up-to-date service platforms & maximum coverage, including roaming solutions

mesh network a real smart grid opportunity in the us . gas & water in europe

connectivity market: 13 M sim cards by 2015 for smart metering only

opportunity for integration services (message mangement). big integrators competition

market value is in avoided production capacity, normally at utilities‟

market ownership impacted by regulation. loi nome in france may open a market

france specificity: edf has 95% b2c market share.

uncertainty on amount of value and customers behaviors. large scale pilots needed

combination of specific tariff plans and smart meters & indoor remote control: home automation. telco well positionned

distribution networks (erdf-like) mostly unsupervised

big potential gains in voltage control

still unaddressed in europe or partially through smart metering

market for highly secured networks with low latency and high SLAs

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telcos have a value proposition for smart grids

telecom networks

Flexible approach

─ Allow to address a wide range of

applications with different bandwidths

and different latency and loss

requirements.

─ Particularly valid for large distributed

network points (no oversizing)

Network integration

─ different networks can be integrated to

serve the functional need

Communication network

management

─ Management of networks, network

activities, and network devices (status

monitoring, fault detection, isolation, and

recovery);

─ Commitment on SLAs

Always up-to-date

─ The appropriate network according to

current and future functional

requirements

flexible answer to various types of smart grid telecommunication requirements

Smart Devices

Meters, Sensors, Switches, Appliances…

Telecom NetworksADSL, fiber, PL, GPRS, 3G, RF, Backhaul

Communication Data Mgt

Utility Apps

API

Op

era

tio

n &

Ma

inte

na

nce

Third party Apps

Telco

API

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telcos bring a proven experience on critical grid

communication requirements

securityheterogeneity

Always onauthentication

bandwidth

standards

Wide area network

M2M on gprs or fix network

IPV6 IPVPN

Neighbourhood area network

Various access technologies

gprs, RF, adsl…

Home Area Network

Livebox ecosystem (wifi today, zigbee tomorrow)

devices remote management (10 M+ liveboxes)

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Worst case

Best case

Dense urbanScarse pop.

Deserts

Peri-urban

Country

Area

Use Case

Total cost of ownership

PLC

GPRS

RF mesh

RF long range

PLC

GPRS

RF mesh

RF long range

PLC

GPRS

RF mesh

RF long range

there is no single anwer to technology choice

which technology for smart metering ?

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telco best practice to network management is to

design it overlay: logical and sometimes physical

separation

managed service

network

management network

Inventory management

Fault management

Capacity management

Service quality and Performance management

Security management

critical processes

network conception guarantees possibility to get information and act even if

managed service is down

Logical separation

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standardisation will be key for smart grid

WAN + (wireless) LAN

WAN only

more advanced servicesbasic operator service

2010

ETSI/M2M

ETSI/ERM

ETSI/SCP

orange strongly believes that

telecommunication solutions for utilities

must be open and interoperable

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Open questions

when will distribution automation

take off ?

5 years ?

Pilots to get experience?

will dist. automation share same

infrastructure as smart metering ?

different functional requirements

different incentives

shouldn’t utilities networks be

managed by telcos ?

security issues

last mile issue

flexibility issues

obsolescence issue

competition issue

how to engage the customer

in demand response ?

business case

b2c expertise

home ecosytem

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Home Automation actors are pushing a vision where

various appliances are always connected and easily

controlled

multiple use cases rich user interface

ubiquitous local

and remote control

the market is highly dominated by equipment vendors

even if new actors are entering

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home automation today covers four different markets with

different sizes and different customer value propositions

energyelectricity, gas, water

monitoring (E,G,W)see what you use

demand response (E)reduce bill

controlling (E, G, W)optimize use

security

intrusionprevent intrusion

secure intruded place

hazard alertinglimit disasters

health

illness prevention

& monitoringmaintain health

remote carekeep in touch

home control

appliance control automate for comfort

access controlcomfort

surveillance (*)

tranquilize

20 M homes10 M electric meters new

generation (1)

10 M homes1,3 M monitored alarms (2)

80 % alarms non monitored

no installed base for fire sensors

6 M people13 M people (4) with chronic

diseases

4 M (3) people alone > 60 y. old

2 M homes0,4 M new homes/year (3)s

ize

(Fra

nce

)m

ark

ets

& v

alu

e p

rop

ositio

ns

save money protection comfort people care

Sources: (1) EDF; (2)Berg Insight; (3) Insee; (4) health lob

New

(*) indoor

biggest market potential

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landscape is complex with multiple actors involved

energymonitoring other

security healthcare illness

home control

ma

nu

factu

rers

se

rvic

e

pro

vid

ers

sa

les c

ha

nn

els

do-it-yourself retailers

architects, building, installers

utilities

medical /

public Gvt

insurances

telcos ?

Google

EDF, Poweo,

Direct E,

GDFVeolia

ELM

Leblanc

Daikin

Securitas, EDP

Prosegur

SagemDelta Dore, Somfy, Legrand, Schneider, Hager

Alertme, ZodiaNet… startups

house cleaning, pool

attendants, gardeners nurses &

doctors

get or keep customers through

service differentiation

reduce energy peak time usage

sell hardware thru diversified

sales channels

sell specific services to

expand installed base

reduce reimbursements

through limited risks

players and main objective pursued

reduce costs

22

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high end customers want to use their existing digital

environmentnew devices in the home: dedicated, tv, smartphones, tablets

app stores

convergence with digital home (entertainment)

Open Peak Control4

iPhone/iPadTV App store

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market could take off if organized as an open ecosystem

where partners can propose their services (B2B2C model)V

alu

e c

hain

positio

n

Devices

Telco

services

Business

application

Distribution

types of business models

B2C B2B2C B2B

• Sensors

• Actuators

• Home Appliances

• Infrastructure and box renting

• Alerting

• Portals

• Energy

• Security

• Home Control

• Health

•Telcos

• Utilities

• Insurers

•Retailers

• Installers

• Public welfare

Services

Devices

competition between business models

most likely to succeed

Products and services

most likely to

drive adoption

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in the town

Orange M2M powering the imagination

building the Digital Home beyond

internet, voice and entertainment

- security

- energy efficiency

- comfort

at home

in the car everywhere

connecting the car for a secure and

carefree driving

- enhanced navigation

- call assistance

- pay as you drive

smart cities

- reduced traffic jam

- pollution and natural risks

control

- greener lighting and waste

handling

from health monitoring…

…to the Internet of Things

Thank You