1 journey to 2025 dr mike short cbe freng fiet fbcs vice president mike.short@telefonica.com

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Journey to 2025

Dr Mike Short CBE FREng FIET FBCSVice President

mike.short@telefonica.com

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Agenda

1)

2)1. Growth of Mobile and the Internet

3)2. Rise of Apps, wearables and diagnostics

4)3. Accessibility and inclusion

5)4. Innovation trends

6)5. Planning for the next Generation

7)6. Digital 2025

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19891989 20002000 Sep14Sep14 1989-Sep141989-Sep14

Customer (Mn) 1212 6868 316 x26

Countries 11 1616 21 +20

Team (‘000) 7171 149149 120 x2

Revenues (Mn €)

4,273

4,273

28,482

28,482

57,061* x13

* Data as of FY 2013* Data as of FY 2013

About Telefonica

Leading company in the Global Telco Sector

Since the beginning of internationalization, the company has experienced a significant growth:

Since the beginning of internationalization, the company has experienced a significant growth:

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A commitment to innovation

Worldwide Telco sector ranking by R&D(EUR million)

Source: The 2013 EU Industrial R&D Scoreboard (European Commission)

#2 TelcoBy R&D

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The mobile phone – services for 30 + years

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Size is Important!

Smaller is Good! Larger is good!

7Source: www.gsmamobileeconomy.com)

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Everyone now has the power to innovate in a digital world thanks to the marriage

between the two great innovation platforms of the 21st century: internet

and mobile.

• Dr. Mike Short, VP Telefónica,

• Financial Times, April 2013

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The message is the medium

Source: The Economist

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Killer Applications

The Internet!

r.tafazolli@surrey.ac.uk

#5GIC

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1 in 7 Disabled: Lost in fragmentation and policy

Source: Lewis Insight Ltd based on UN statistics

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University of Surrey, 5GIC

r.tafazolli@surrey.ac.uk

#5GIC

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5G in one sentence“Always Sufficient Rate” to give users the perception of

Infinite Capacity”

16Timescale getting shorter between Research/Standardisation and Commercialisation

2011

2021

2031

5G

2041

4G – LTE/LTE-Advanced

3G – WCDMA/HSPA/HSPA +

2G – GSM/GPRS/EDGE

1G - TACS

Research & Std

Research & Std

Research & Std

Research & Std

Systems tend to co-exist rather

then replace previous generations

Wireless Standards Evolution – 5G

1983

1991

2001

Next generation Global standard around 2020

17Source: NGMN

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Top Beneficiaries (retained)

1 ALCATEL 6,225,535 €2 ERICSSON 4,371,644 €3 NOKIA 4,257,253 €4 INTEL 4,252,121 €5 NEC 3,530,086 €6 Fraunhofer 3,318,067 €7 HUAWEI 3,159,900 €8 UC3M 3,088,814 €9 Telefonica 3,002,503 €10 CEA 2,893,304 €11 SAMSUNG 2,407,166 €12 ORANGE 2,404,098 €13 DT 2,157,249 €14 ATOS 2,152,350 €15 I2CAT 2,051,125 €16 UCL 1,683,750 €17 Eurescom 1,575,162 €18 TI 1,456,875 €19 NCSR 1,428,625 €20 VTT 1,368,461 €

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New opportunities

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GATEway – Greenwich Automated Transport Environment• Venue: Greenwich, London, UK

Smart City venue and fantastic historical links to navigation

• Two year, £8m project – high level aims:

Demonstrate automated transport safely and effectively in a range of environments

Understand societal, legal, technical changes and barriers to implementation based on direct experience of operation

Create a multifaceted, validated, long term test bed for the evaluation of future automated transport systems

• Trials:

3 live trials of automated transport

• Eight fully driverless, electric shuttles (not on public roads)

• Fully autonomous valet parking of cars

• Third live trial to be finalised based on feedback

TRL DigiCar simulator study of automated vehicle human factors

Demonstration of teleoperation – remote operation of a vehicle

• Extensive public, media and industry stakeholder engagement throughout

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Outside of the healthcare system

Health app explosion

Wearables

Self-aware, healthier lifestyles

Sources: European Directory of Health AppsNHS Choices Healthy App Store

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A 360° wrap around the Individual

Smart glasses

Head-mounted wand

Hearing deviceCamera necklace

Skin patches

Smart watch

Smart ring

Safety monitor

Smart bracelet

Smart clothing

Smart inner-soles

Brainwave reader

Internal chips

Source: Lewis Insight Ltd

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In conclusion …

Growth in personalization and use of Data Analytics

Data is a new currency – Internet of Everything

Crowdsourcing changes innovation and delivery

We are all creative developers now

Digital journey is well under way