Utilities – WhyUtilities Why are Telcos Involved andInvolved and What Do They

?Add?

MWC - 17 Feb 2011

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ConvergysConvergys …

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Baard EilertsenBaard Eilertsen CEO

Founded in 1998

A virtual mobile operator focusing on p gM2M services for industrial applications

More than 3000 customer references worldwide

Convergys billing customer since 1999

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The future of energy1st Generation 3rd Generation2nd Generation

gy

Established Service1st power networkDeregulationR t fit f bl

Accessible ServiceAnalog to DigitalHAN, NANP l t

Ubiquitous ServiceChange in business models to drive new revenue streams

R i PHEV

butio

n

Retrofit for renewables Personal energy management Roaming PHEVsProliferation of products / applicationsPre & post paid

Cont

rib

Real-time data1 meter read every 15

minutes (near real-time)Maximum of 1 meter read

per month

Thro

ughp

ut

Edison’s Grid Smart Grid 2G Smart Grid

echn

olog

yT

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1880 - 2007 2007 - 2013 2013+

Te

1880 - 2007 2007 - 2015 2015+

Why do Telcos need to be involved?Why do Telcos need to be involved?

Hundreds of millions of Smart Meters generating Customers have varyingg gbillions of messages

Customers have varying degrees of willingness to entrust their energyusage information to

Telcos already have the infrastructure to carry this

gdifferent entities,

trusting utilities and telecom companies infrastructure to carry this

trafficmore and the

federal government and ISPs less.

BUT, it is not only about communications betweencommunications between the meter and the utility provider

Ponemon Institute, “Perceptions about Privacy on the Smart G id” N b 2010

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provider

6

Grid” , November 2010

Personal energy managementPersonal energy managementCustomer

InternetMaingate

iPad iPhone

Encrypted communication

Push update of tariffs

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Media by choicey

• Visualization via: in-house display, apps for smart phones, mobile web pageVisualization via: in house display, apps for smart phones, mobile web page and via E.ON specific application

• Consumers are able to read minute by minute, day by day and month by thmonth

• Combining of B2B and B2C models and applications• Pay per function / information not just per connection

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Pay per function / information not just per connection

M2M requires a Telco industry transformationq y

Telecoms access is transforming other industries

Massive scale mission

Consumer Devices

Massive scale, mission critical, low ARPUCharging based on a

Connected

TransportAnd

Logistics

Unattended Machines

g gcombination of:

- Traffic- Data

Devices

Utilities, Security & B ildi

Machines Data- Function- Information

HealthcarePatient

Monitoring

Buildings Management

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M2M business model challengesM2M business model challenges• ARPU generally 50c - $10 per month

Low Cost Business

Model

• Automate business processes as much as possible to reduce headcount required to support the business

• Choose support platforms that have low ongoing cost of ownershipChoose support platforms that have low ongoing cost of ownership and are flexible for the future

• 100s of millions of unique connected devices creating micro usage

Massive Scale

q g gcharges

• Data management efficiency needed, need to aggregate usage and apply know-how to keep costs down

M lti

apply know-how to keep costs down

• Global reach is key for some models – partnering with networkMulti Party Value Chain

Global reach is key for some models partnering with network providers in other countries, need to be able to support wholesale settlement

• Support both retail and wholesale pricing models• Support both retail and wholesale pricing models

• Settlement and commission payments

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What can Telcos teach the Utilities?What can Telcos teach the Utilities?

Real Time Usage Data

C stomer

Real Time Usage Data• TOU• Demand Response

CustomerSelf Service

• Centralized charging for

Real-Time Charging

CustomerCare

Centralized charging for Smart Meters

• Same charging for pre-and post-pay customer

Care• Real time balance monitoring

Highly available network

Settlement• Remote Connect

Highly available, network independent charging

• Remote DisconnectBased on account balance or top up

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In summary: Telcos must add valueIn summary: Telcos must add value

fProvide proven reliability and scale for the M2M communications from a trustworthy partner

Support Utility partners with Telecoms expertise in pp y p ptariff creation, marketing and customer experience management

Provide applications and data management know-Provide applications and data management knowhow to allow consumers to get more out of smart meterss a t ete s

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Thank you

Tony JacksonDirector, Telecoms Solution Strategy, Convergystony.jackson@convergys.com

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