PORTUGAL TELECOM VISÃO PARA AS SMART COMMUNITIES

Janeiro 2013

Janeiro 2013

FUTURE CITIES

Portugal Telecom January 2013

GLOBAL TRENDS

01

January 2013

GLOBAL TRENDS THE INCREASE OF PEOPLE IN CITIES AND RESOURCE SHORTAGE… 01

9.3 Billion people on earth by 2050 (United Nations, Department of Economic and Social Affairs, Population Division (2011)

50% Increase Water Use in Developing Countries by 2025 (UNEP, WWAP 2006)

2.000.000.000 New urban residents expected in the next 20 years (UN-HABITAT State of the World’s Cities Report 2010-2011)

It is estimated that

cities consume (United Nations)

75%

Of World energy and generates

of greenhouse gases 80%

Without faster productivity growth,

Sub-Saharan Africa will meet only (Group)

of its own food

demand by 2050 13%

January 2013

2016 8,4B

2012 2,6B

1,174M 2016

2012 489k 2,4x

3,2x

Estimation of connected M2M devices Number of Smart Phones in the world

Source: Strategy Analytics; PT - Yankee Group, Global ConnectedView Forecast, Sep 2012 Worldwide – GSMA Connected Life Position Paper; IDC and SOAworld

The Growth of Cloud-Based Big Data

Sales/ year In 2016

# 2012

1,5b

1b Revenue grow at 31,7% per year

$23.8 billion mark in 2016

GLOBAL TRENDS …REQUIRE NEW APPROACHES... 01

January 2013

GLOBAL TRENDS …ON THE WAY WE MANAGE OUR CITIES. 01

Source: Future Cities, Ranking of European medium-sized cities – Vienna University of Technology, University of Ljubljana, Delft University of Technology

PORTUGAL TELECOM

02

January 2013

PORTUGAL TELECOM PT IS READY TO HELP OVERCOME THESE CHALLENGES… 02

Source: Strategy Analytics; PT - Yankee Group, Global ConnectedView Forecast, Sep 2012 Worldwide – GSMA Connected Life Position Paper; IDC and SOAworld

100 Million clients

3.3 Billion euros revenue

59% Of revenue in international

operations

Nr.1 In the markets where it is

present

Listed on Euronext, NYSE and

on DJStoxx and FTSE4Good

Brazil Oi, Contax, todo!, UOL, PT Inovação

Cape Verde Cabo Verde Telecom, Directel Cabo Verde

Hungary Hungaro Digitel HDT

Angola Unitel, Multitel, Elta

S. Tome e Principe Companhia Santomense de Telecomunicações

Namibia Mobile Telecommunications Company

Botswana Mascom Wireless

Mozambique Listas Telefónicas de Moçambique Teledata

Kenya Kenya Postel Directories

Macau Companhia Telecomunicações Macau

Timor Timor Telecom

Portugal Portugal Telecom

January 2013

PORTUGAL TELECOM …SINCE IT HAS BEEN PREPARING FOR THESE CHANGES… 02

Source: PT

High capacity transport network Processing and storage

Data Centers Networks

State-of-the-art access network

Fiber (FTTH) 4G, 3G, 2G Wi-Fi National Backbone IP/ MPLS

January 2013

PORTUGAL TELECOM … STEADLY CHANGING ITS CORE BUSINESS … 02

Source: PT

2003 2005 2007 2010

CAGR

4,5%

100%

50%

0%

4%

33%

9%

53%

12%

43%

10%

34%

16%

42%

12%

25%

OUT+SI+TI

19%

SALES

7%

FIXED

DATA

33%

MOBILE DATA

7%

MOBILE VOICE

11%

FIXED VOICE

22%

REVENUE PERFORMANCE

OUTSOURCING + SI + TI

Increased from 4% in 2003 to 19% in 2010

MOBILE DATA

Focus on smart phones and broadband offering,

grew 0.1% in 2003 to 7% in 2010

FIXED DATA

Accounted for 33% of the revenue in 2003.

Gained expression, but with the growth of new

business areas returned to 33%

MOBILE VOICE

Relative weight of 11% of the revenue

FIXED VOICE

Decreased from 55% (2003) to 22% (2010)

G

PORTUGAL TELECOM …MAKING IT FUTURE PROOF. 02

VOICE & CIRCUITS

90’s

• Voice and Value Added Services

• Private Data Networks

IT & DATACENTRE

2005-09

• IT and hosting services

• Security

• Managed services

• Infrastructure Outsourcing

CLOUD & APPLICATIONS

2010-11

• XaaS Models

• ISs, in selected verticals

• Global Outsourcing of IT systems

• Migration of legacy accesses

• Application development

• IT based BPO

BUSINESS TRANSFORMATION

2012-15

• Business consulting

• Internet of Things (M2M) and Future Cities

• Collaboration and mobility for technology adoption

• Convergence; ICT models for XaaS

• Multichannel access for business processes

• Digital content management

• Customer relationship with video and social networking

• Dematerialization and virtualization

P A S T F U T U R E

DATA & INTERNET

• Dissemination of Internet access

• IP voice and data over VPN´s

• Self-service Web processes

• Online Channels

• E-business

2000-05

January 2013

FUTURE CITIES

03

FUTURE CITIES FUTURE CITIES ARE BASED ON TODAYS´S TECHNOLOGIES… 03

Source:

Ovum January 2013

IT BUILDING BLOCKS OF DIGITALLY ENABLED CITIES

Ubiquitousconnectivity

(Always on)

Web2.0 andsocial

networking

(Convenience)

GeospatialPlatforms

(Place based data)

Internet ofThings M2M

(Realtime Data)

Collaboration

Platforms

(Teamwork)

CloudComputing

(IT as a service)

Digitallycontrolleddevices

(Realtime Control)

Open acess to public data

(Many eyes)

Advancedanalytics

(Fact-based decisions)

Web 2.0 & social networking

(Interactivity)

Open standards, SOA and

ecosystems

(ITassembly)

PORTUGAL TELECOM …THAT REQUIRE A MULTI LAYER TECHNOLOGY ECOSYSTEM….. 02

SERVICE END TO END IN THE FOUR LAYERS IN A INTEGRATED FORM

INFRASTRUCTURE

PLATFORMS

APLICATIONS

SERVICES

January 2013

FUTURE CITIES …THAT ARE COMPLEX TO DEPLOY AND MAINTAIN… 03

January 2013

To deploy and maintain several different systems from several different providers is a challenge that Future Cities have to overcome.

Future Cities solutions are typically characterized by:

• Different HW Sensors and devices • WiFi, 3G, LTE… • Cloud • M2M • High Volumes of data, from different

sources • High number of users (doubts and

problems) • Geographical dispersion • ...

Source:

ITIL

FUTURE CITIES …THAT NEED TO BE AVAILABLE 24/7 TO EVERY CITIZEN… 03

January 2013

Future Cities need to have continuous

operational management

Citizens need online support

Even the smallest failures may have a huge impact

in end users

FUTURE CITIES …AND HAVE A SOCIAL/ ECONOMICAL RATIONALE. 03

January 2013

Quick wins generate savings that may fund 2nd

wave investments (and so forth)

Citizens are willing to pay for services if they

recognize the value

Future Cities grow organically and not from

the top down

FUTURE CITIES PT PROVIDES DATACENTERS AND CLOUD SERVICES… 03

January 2013

FUTURE CITIES …THE MOST ADVANCED NETWORK CONNECTIONS… 03

January 2013

03 FUTURE CITIES - AN INTERNALLY DEVELOPED M2M PLATFORM;

January 2013

M2M User Interfaces

In-Memory Business

Intelligence

Services Marketplace

3rd PartyServices

OtherPT Services

Vertical Applications

M2M Service Delivery Broker

Operation Center

VA2 VAnVA1

M2M Core Platform Services

Network

Devices

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Machines are more intelligent and able to communicate with each other in real time. It is another step in the evolution of machines and devices that we use on a daily basis. They exchange data, act automatically to resolve problems and resort to human intervention in only the most critical situations.

1 2 3

03 Smart Street Lighting

• Reduce energy costs up to 40% • CO2 reductions • Easy and efficient management

M2M User Interfaces

In-Memory Business

Intelligence

Services Marketplace

3rd PartyServices

OtherPT Services

Vertical Applications

M2M Service Delivery Broker

Operation Center

VA2 VAnVA1

M2M Core Platform Services

Network

Devices

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www.smartm2mpt.pt January 2013

FUTURE CITIES - SERVICES THAT OPTIMIZE THE CITIES RESOURCES;

• Easy to use • Practical • Management and control in a fast,

simple and effective way

Mobile Parking Payment

SMART CITIES - IN MEMORY BUSINESS INTELIGENCE; 03

January 2013

M2M User Interfaces

In-Memory Business

Intelligence

Services Marketplace

3rd PartyServices

OtherPT Services

Vertical Applications

M2M Service Delivery Broker

Operation Center

VA2 VAnVA1

M2M Core Platform Services

Network

Devices

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FUTURE CITIES …MAKING FUTURE CITIES TODAY! 03

January 2013

ICT

In order to manage Future Cities, it will be necessary a comprehensive technological architecture

Trough the know-how in ICT and in deploying, maintaining and supervising new innovative services PT is ready to help

Future Cities

Several solutions are already available in cloud, ready to be used and explored