1CONFIDENTIAL
Future Cities 2014, Oporto
Craig Aldridge – GSMA Smart Cities
© GSMA 2012
About the GSMA
The GSMA represents the interests of mobile operators
worldwide. Spanning more than 220 countries, the GSMA unites nearly
800 of the world’s mobile operators, as well as more than 230 companies
in the broader mobile ecosystem.
© GSMA 2013
3
Connected Living 2013/14
To create a world where everything intelligently connects via wireless
networks, delivering rich services to businesses and consumers in every
aspect of their lives
Mission: To accelerate the development and adoption of operator led scalable
and interoperable mobile solutions in Healthcare, Automotive, Education,
Utilities and Smart Cities
© GSMA 2013
Focus is to promote and support the deployment of mobile based Smart City solutions for such
vertical sectors as transport and energy, as well as the Connected Living vertical markets -- mEducation,
mHealth and mAutomotive
The Smart Cities project has extended its work from supporting the Mobile World Capital in Barcelona
in 2012/13 to also supporting other cities globally, namely Shanghai and Dubai
GSMA Smart Cities programme overview
The Smart Cities Demonstrator project aims to accelerate the use of mobile-based solutions for
smart city initiatives globally.
The project has completed development of the Mobile Smart Cities
Index which will measure, quantify and evaluate the impact of ICT –
mobile solutions on smart cities, their economies, businesses and
citizens
© GSMA 2013
Total Addressable Opportunity For Mobile Network Operators in 2020
$1.1 Trillion
North
America
$263 Billion
Health
$24 BillionAutomotive
$196 BillionConsumer electronics (exc.
Handsets, PC’s/Laptops & Tablets)
$70 Billion Latin America
$85 Billion
Middle East
Africa
$69 BillionAsia
Pacific
$428
Billion
Smart Cities*
$109 Billion
2020
11 Billion Mobile Connected Devices
The Connected Life by 2020
Europe
$287 Billion
2012
6 Billion Mobile Connected Devices
2020 Addressable opportunity for MNO’s in selected vertical
sectors
2020
26 Billion Total Connected
Devices2012
10 Billion Total Connected
Devices
Source: Machina Research January 2014*GSMA definition of Smart Cities
Other M2M
$46 Billion
Handsets/Tablets
$ 336 BillionPC’s/Laptops
$ 351 Billion
6CONFIDENTIAL
427 Operators across 175 countries offer M2M with 190
million M2M mobile connections in 2012
Source: GSMA Intelligence & Machina Research
USA – 33.7m
Brazil – 6.8m
Russia – 4.7m
China – 36.0m
South Africa – 4.7m
Korea – 3.9m
W. Europe – 39m
M2M commercially available
7CONFIDENTIAL
Connected Applications – Now and the Future
Cellular Connections (m)
Sector Application Examples 2012 2020
Connected CarManufacturer Data,
Infotainment and Apps,
Navigation, Vehicle Platform45.3 505
Smart Meters Automated meter readings 20.9 308
Security and
Tracking
Automobile tracking, Personal
tracking (children, elderly,
pets etc.)45.1 276
Pay as you Drive
Insurance
Flexible time, usage,
behaviour models in car
insurance8.7 141.6
HealthcareAssisted Living, Worried Well
Monitoring, Remote
Monitoring2.9 85.9
Based on Machina Research data – Nov 2013
8
CONFIDENTIAL
Where will value come from for an operator?
Sample business model 1 : GM Onstar
Value Chain
Core infrastruct
ure
Sensors, sensing
equipment
M2M modules/
Data Transmissi
on
M2M Platform/
Device MgtAnalytics
EDF, London
Transport
Bosch , Free scale, Texas Instruments
Cisco, Siemens
Vodafone, AT&T
Telefonica
Vodafone, AT&T
BT
musigmaCognizantT
CSOLA Cabs
Application platform
SAP, IBM, Accenture
1 2 3 3211
Physical/ hardware layer Communication layer Application layer
Data/ Big Data
Storage
Amazon, EMC
3
GM LG Telefonica GM
Bosch Siemens Vodafone Bosch
Sample business model 2 : Bosch Industry 4.0 Pilot
Home AT&T
Sample business model 3 : ATT Digital Life
9CONFIDENTIAL
Thinking as a services increases the value
Data
Connectivity
(network
provisioning,
data transport)
Network
Services &
Managed
Connectivity
(network APIs,
billing,
monitoring,
CRM)
Platform
& Content
Services
(service
provision and
management,
user portals,
content, apps,
search &
delivery,
management
reporting)
Increased operator
role and revenue
opportunity
Value increases as operators move further
up the value chain
As shown with Korea Telecom’s taxi fleet
management solution
Before : Basic Services
• Providing basic taxi
tracking location
services
• $5 per month per taxi
• 2 year contract
After : Platform Provider
• Providing software
platform and call centre
as a package with the taxi
tracking.
• $50 per month per taxi
• 5 year contract
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CONFIDENTIAL
Barriers to market development
Disconnected Life
Devices
SystemsPromote interoperability and common standards at critical
junctions to enable scale and plug-and-play experience
Barriers to realising the opportunity
Regulation Development of Telecoms and Adjacent industry
regulation that encourages growth
Mass market hardware – lower cost wireless modules
PartnershipsEffective industry partnerships to enable complete service
delivery
Establishment of
Business models
Development of new business models to incentivise the
whole value chain
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CONFIDENTIAL
© GSM Association 2013
GSMA Connected Living - Smart Cities
http://www.gsma.com/connectedliving/smart-cities