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

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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

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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

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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

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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

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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