NSN Smart Energy Mash Up of Telecom Expertise and Energy Requirements v1.1

2010 © Nokia Siemens Networks

Michail Angelov

Marketing and Business Development manager

startups@nsn, Machine-to-Machine (M2M)

Mobile German: +4915142605110

Mobile Bulgarian: +359878280021

E-Mail: michail.angelov @nsn.com

Nokia Siemens Networks

90 Alt-Moabit, D-10559 Berlin

Nokia Siemens Networks EOOD

118 Bulgaria, 1618 Sofia

2010 © Nokia Siemens Networks2010 © Nokia Siemens Networks

• Share market insights

• Present NSN as the partner in M2M domain

• Discuss Smart Energy

• Collect feedback

Goals

• M2M Marketplace

• Value Chain & Strategies

• Horizontal offerings

• Smart Energy for CSP

• Smart Energy for Utilities

• Discussion

Agenda


• M2M Marketplace





• Discussion

Agenda

4 Customer Confidential © Nokia Siemens Networks

A market on the moveDevelopment of smart ‘things’

Smart Phones

Smart Devices

Smart Objects


The next smart ‘thing’Smart objects will enter the stage

Ubiquitous connectivity & global coverage

Mass adoption of smart object technologies

Regulation is paving the way

Overall 280 Bn € smart

services market in 2013

with an average growth

rate of 33%*

* Source Harbor Research “Pervasive Internet & Smart Services Market Forecast (2010-2013)


Smart Metering: Annual Market SizeMarket Value by regions

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

ME

UR

USA & Canada Europe (Ex. Russia) Russia & CIS Mexico & Caribbean

Sout America Africa & Middle East India, China & East Asia Southeast Asia & Oceania

Smart Metering grows at CAGR of 9% to reach €7.2Bn in 2015US & Europe are the main markets

Source: Poyry 2009


• M2M Marketplace





• Discussion

Agenda


SmartObjects Internet

Enablement

Managed Connectivity

& Access

Provider

Services Enablement

Provider

Service Provider

Chipsets -Modules

Connectivity

ProvisioningServices

€ 23B

€ 39.5 B

€ 11.2 B

€ 202.9 B

Source: Harbor Research, Pervasive internet &

smart services market forecast, 2009

VA

LU

E

DeviceManagement

SystemsIntegration

ApplicationEnablement

EnterpriseApplication

Where is the value?


CSP Strategies

Access Provider

Service Provider

Provide M2M specific data plans, become a bitpipe.

Some revenue, but not directly in the M2M business.

Managed connectivity is a MUST. Make sure that it is given as effectively as

possible. Reach Operational Excellence combining assets for human and

machine subscriptions. Widen the scope of offerings to encompass all that

is possible in this layer to get the most value.

Build a strong horizontal enablement layer, enhance the standard M2M

offering with Telco assets and information, and create a wide variety of

verticals on it as the market demands.

With the horizontal foundation, introducing new verticals, or reselling within the same vertical (i.e. eEnergy) is easy and cost effective. Consider the mode of delivery and operations and chose the appropriate method: buy/build a solution or use services.

Services Enablement Provider

Managed Connectivity

Provider


NSN assists service providers successfully realise their M2M business opportunities in three distinct areas

Energy Logistics Home Security Payment Health

Smart Objects Services Enablement

2

Smart Objects Managed Connectivity

E2E VerticalSpecific Solutions

1

3

Hyper efficient managed connectivity for service providers

Flexible smart object management, data processing and integration framework

Customised fully managed vertical specific solutions and services

2

1

3


Wide Variety of Customers served by NSN

iMetrik – Canada• Rental car fleet management solution

for an MVNO

• Solution based on NSN’ Subscriber Data Mgt

Operator – EMEA• On board unit - emergency call (eCall )

solution

• NSN Subscriber Data Mgmt and messaging system Solutions

Global CSP

• Lift, elevator and slide door mgmt service for an equipment supplier

• “All IP connectivity” solution, consulting and System Integration

China Mobile

• Generic M2M platform design and implementation including device and application integration

• Joint customer development project

Telenor Connexion

• Fleet management and remote car diagnostics for an international MVNO

• NSN’ Subscriber Data Management solution integrated into a multivendor environment as well as the highly valued support services

Operator – EMEA

• Location information enabled M2M platform as well as printer preventive care mgmt solution

• NSN’ Subscriber Data Mgmt

Non public

Non public

Non public

Servus Net

• Value-added Telco-to-Wind application, extracting data from various turbine vendors providing consolidate data into one unified view

• NSN’ Open Element Management Suite


• M2M Marketplace





• Discussion

Agenda


Horizontal M2M Application Platform

Differentiators:

• Establish one-stop-shop for service providers: integrating devices, networks, services & applications

• Cloud computing technology for low variable cost, flexibility & scalability

• Horizontal NSN M2M application platform supporting multi-device, multi-application & multi-tenant capabilities

• Experience in telco domain and partner with CSP

• Subscriber data integration, mass data analytics & processing

• Build partner ecosystem & business consulting

Marker Drivers

Limited growth & high churn with existing customer base

Smart Objects can provide favorable customer lifetime value

Horizontal integration is key to rich M2M applications

Regulation and fraud control driving successful uptake

-- Enabling new high value business --


Cumulocity Meter Data Management Solution

• Data Aggregation• Fault Management• Configuration Management• Performance Management

Database

• Mass Data Processing• Tenant Management• Analytics• Security

Application Integration SDK

Meter Integration (O&M Agents

3G/4G Connectivity PCL Fixed

Connectivity Aggregation

Utilities O&M Service/Field ForceEnd Customer Rating and Billing


M2M focus market entry

Key Market Entry Points:

Transportation & Logistics M2M

Consumer environment M2M


Smart Object Services Enablement solutionUSN solution – overview

Human Mobility from Mobile Networks

Human subscribers mobility data (e.g. anonymised subscriber ID, handover data)

OBU in vehicles reports data - OBU ID, GPS location, timestamp, number of passengers, etc

Public Bus

Taxi Private Car

Vehicle Mobility from OBU

Mobile Networks

Mobility Data

Mediation

USN Solution

No. of handsets

Anonymous subscriber identities

No. of passengers in vehicles

ITS applications enhanced with real-time road information

Subscribers Mobility Data

Floating Car Data

(FCD) Server

Traffic Speed on road

networks

Arrival Time

On time/delayed

Display Board

Time of arrival

Real-Time Traffic

Conditions

Object Mgmt.(Object

monitoring, data

collection &

processing)

Continental Rastrear


• M2M Marketplace





• Discussion

Agenda


3 reasons why energy efficiency matters

Energy efficiency = OPEX efficiency

• In mature markets, up to 10% of network OPEX is used on energy

• In developing markets, it can be from about 15% up to even 30% of networks OPEX for energy

• Fossil fuel prices remain volatile with high dependency

Lack of electricity supply

• Networks are expanding into rural and suburban areas –grid availability and/or quality is challenging

• 1.6bn people lack access to grid electricity (“off-grid”)

• An additional 1bn people have unreliable access (“bad-grid”)

Climate change • Average temperature is increasing annually

• Carbon emissions remain the second largest contributor to green house gas emissions after methane

• Ethical purchasing behavior among consumers becoming mainstream


Energy costs represent the 3rd/4th most significant OPEX item for mobile operators. Energy cost increases yearly.


Smart Metering Drivers for CSP own usage

CSP

-Huge consumers of energy

-

Smart Metering

•Automated & remote meter reading

•Statistical report

•Demand Forecast

•SLA monitoring

2. EnvironmentalRegulation

save energy and resources

(Government regulation)

Problems:

•Verify green features impact

•Inflexibility due to NW topology

•Distribution Energy providers are not flexible

1. Own information: 3. OPEX Reduction


Smart Meter Data Collection

GPRS

network

Cumulocity Meter

Control and Data

Management


Value Propositions

Traffic

QoS

Energy

Consumption

Correlation

• Smart energy metering can save a large electricity consumer up to 15% on their energy bill

• Correlation with FM, PM and planning parameter would allow stricter control of the Green features implemented in the network


Nokia Siemens Networks Solution Components

Local data collection:

• Equipment needs to be installed at the sites to allow collection of data

• NSN Green Energy Control is used for complex sites, Smart Meters an option for “standard” sites

DCN:

• Green Energy Control uses GPRS to send data

• Smart Meters have multiple options (inclGPRS)

Management system:

• NetAct is already installed at customers

• Energy data correlated with telcodata

GPRS / Ethernet /

O&M-network

NSN Green Energy Control

3rd party smart meter

•NetAct with data collection using

•Cumulocity as Meter Data Management


Nokia Siemens Networks Green Energy Control

Opportunities for Telekom:

• reduce OPEX by remotely managing

energy sources

• efficient control and monitoring of

multiple energy sources

• charging & discharging cycles under

control

• Up to 70% of OPEX savings

• Up to 50% reduction of

carbon footprint

Interfaces all power sources and smartly manages performance

remotely

http://84.199.67.163/login.html?resource=/pims/scrims.htm

http://84.199.67.163/login.html?resource=/pims/scrims.htm


Agenda• M2M Marketplace





• Discussion

Agenda


Smart Grid

Opportunity Space• Millions of endpoints

• Reasonable latency and security requirements

• Fertile vertical and horizontal application market

• Innovation spawned by deregulation


Smart Metering Drivers for Utility provider

Utility Provider

-Electricity

Smart Metering

-Automated & remote meter reading

- Demand control

- Dynamic tariff

- Reduced fraud

- Remote disconnect

2. Environmental

Regulation

save energy and resources

(Government regulation)

3. Competition

tariff flexibility

(Smart homes/

cost cutting)

1. Revenue

Protection

(Fraud control)


Utilities Business Case Inputs for Smart Metering

REVENUES

1.Losses1.Technical: known and measurable

2.Non-technical losses: variable

1.Illegal connections

2.Bypassing the meter

3.Influencing

4.Others

2.Bad Debt:1.Subscribers not paying their bill

3.Differentiation:1.Sales increase

2.Tariff flexibility

OPEX SAVINGS

1.Remote comp. to manual

2.Increased reliability


Smart Object Applications in Smart Grid

Invoicing

CRM

ERP

Rating and

Billing

Meter data

reading

Site & grid management(generation, distribution & consumption)

User authentication

User database

Smart Meter

Rating & Billing

Smart Grid

Management

eMobility

Authentication

and Roaming

M2M communication


OSSelement,

meter data &

fraud management

BSStariffing

rating & billing

prepaid

ERPinvoicing

reports

customer care

Operation

Care

Implementation

Smart Meters

Connectivityradio access

PLC

DSL ...

smart

metering

solution

NSN Smart Meter Rating and Billing solution

One-stop-Shop


NSN Smart Metering, Rating and Billing solution

Energy

Connectivity / Agregation

CRM ERP system

InvoicingCustomer Self Care

Customer Care

Business Intelligence

Reports

SOA interface server

Prepaid or Postpaid billing

Rating engine

Event history data Customer data Tariff data

Tariff

management

Bad Debt

management

FCAPS

Multi-Vendor/Industry/Provider Data Collection

Pre-processing Object Management Meter data

management

Non-Technical

Losses


Cumulocity FCAPS

Fault management– Map display & table

Configuration Management– Object settings

Accounting– Object Connectivity quality

Performance

– Histograms

Security

– Object Activation/Deactivation

Electricity/Gas/Water Security/Enterprise Automation/….

Objects Meters DevicesSensors


Cumulocity: Object Management

Object Interrogation & Control for the Focus Objects

Pull more frequent readings & connectivity checks

Connect/Disconnect on Payment balance

Objects

Rating and billing layer

Smart Objects

Simple

Objects

- No

connectivity

Regular push

object readings

(Initiated by the

object)

Manual

reading

process

Focus Objects

Low credit

Poor connectivity

Mediation

Pull

reading

and

object

control


Cumulocity: Meter Fraud Application

Non-technical loss location

– Balanced Network analysis

– Tamper alarm forwarding & alarm activation

– Correlation with collected events from meters

– Service disconnects/average usage changes

– Analysis

Bad Debt

– Hot billing

– Pre-paid

Objects

Connection

layer

Balanced Network analysis

∑meters + allowances + non meters sites

Comparison to Sub Station meter

Meter events correlation

Alarm threshold activation

‘Alarm’

<


Cumulocity Multi-Vendor/Industry/Provider

Multiple Tenants

Multi-Language– XML

– DLMS

– Multi-Speak

– SOAP …

Multiple Objects

Energy Logistics Home Security Payment

Over various connection methods: Fixed, Mobile, PLC, …

Tenant Management

Multi-Operator/Service provider

Multi Country

Multi-Industry

Health

Connection

layer

Object data

management


Payment Fraud control - Prepaid

ERP layer

Objects

Connectionlayer

CRM

Charge@Once

• Creation of Prepaid account

• Top-up & decrement of credit

• SMS notification of low credit

• Disconnect processing

• Customer portal

• Prepaid Billing

Cumulocity Mediation, Meter alarm handling, Connect/Disconnect, Meter Portal

Please top up your Energy credit

Energy Service disconnected

Thankyou. Service re-connected

Time

KWh KWh KWh KWh KWh KWh


Summary: Smart Metering Delivery Model

Service Provider

● Market position and brand

● Existing customer base

● Channels to market

● Communications industry expertise

● Robust network infrastructured

Our Partners

• independent SW vendors

• Smart device makers

• Specific domain knowledge

Nokia Siemens Networks

Communications industry expertise

Managed services / Cloud based platform / B-O-T

Application & device integration

Smart object management

Data collection & management

Partner & developer management

Enterprise

• Software as a Service

• Cost effective solutions

• Participation in an application ecosystem with revenue diversification


Large scale real life grid demonstration platform:Smart Grid in Kalasatama district of Helsinki

Fault tolerant power grids

Self-healing concept by a high level of grid automation

Island mode operation of the distribution grid and distributed energy storages

New end customer services

New services for eMobility

New market based energy services

VPP concepts including solar, wind and demand response

Energy storages

Elements of a carbon neutral power system

Distributed renewable generation and market based demand response

eMobility

Energy efficient buildings and energy systems of the buildings adapting to the needs of the inhabitants


Customer quote

Heikki Lassila, VP of Operations

DigiEcoCity Ltd

Benefits

Solution overviewNokia Siemens Networks will provide DigiEcoCity Ltd

with consulting services for the planned digital eco-city

in Gongqing in the Jiangxi Province of China.

The partnership is aimed at developing Gongqing into

a model city based on the principles of sustainable

development that uses digital technology to provide a

high-quality of life to its residents.

The initial consulting project will focus on smart

metering, energy management and ICT infrastructure.

Customer Logo

DigiEcoCity is the first smart city developer in the

world to incorporate “Digital” Infrastructure design

into the early phase of city planning.

NSN provides business model and architecture design

input to the “Digital” part of the Gongqing City

Regulatory Plan, which will be used as benchmark

for other future DigiEcoCity projects.

The consultancy project will also establish a good

position for NSN to provide NWS/BSO infrastructure

in the upcoming Gongqing City construction phase.

“The Gongqing DigiEcoCity project will

serve as the benchmark for future DigiEco

Cities. The prime difference with other

similar projects is incorporation of digital

infrastructure design into the early phase of

city planning. Nokia Siemens Networks will

bring the much-needed knowledge in this

area to help us realize our aim faster.”

The NSN China BSO and BD teams with Heikki

Lassila (2nd from the left) at contract signing.

DigiEcoCity Ltd

Gongqing City


.

.

NSN actvely driving the Smart Grid- initiatives

Nokia Siemens Networks is participating

the research program aiming at next

generation smart grid power networks

and management systems.

Nokia Siemens Networks is

participating EU program

with the local distributed

power generation sector,

the manufacturers of local

renewable sources and the

distribution system

operators aiming greener

society.

Fortum and Nokia Siemens Networks

are doing a pilot to address key

challenges in electric vehicles,

especially identifying the easy user

interfaces and billing options.

http://www.ict4smartdg.eutc.org/

http://www.fortum.fi/


NSN eMobility solution – Proof of concept projects

NSN in SmartWheels project in Germany NSN / Fortum project in Finland

regional utility

e-charging

equipment

telco technology associated

member

consortium members (list not complete) :

smart wheels is a

“Leuchtturmprojekt”

funded by

Research

drive

technology

http://www.stawag.de/

http://www.mennekes.de/web/?appid=content/exp.def-live/de/&serviceconfig=live-browse-fresh

http://www.bmwi.de/

http://www.fev.com/content/public/


Thank You

Time for Questions and Answers

Documents

NSN Smart Energy Mash Up of Telecom Expertise and Energy Requirements v1.1