telecom for power sector : machine-to-machine (m2m ... · pdf filetelecom for power sector :...

1 © Nokia Siemens Networks 2012 M2M / Management Presentation / March 2012

Telecom for Power Sector : Machine-to-machine (M2M) Solution

Ravi Gulati

May 30 2012

2 © Nokia Siemens Networks 2012 Otto Axmann May 2011

Contents

• Market Drivers- M2M for Utilities

• NSN Approach- Enabling Operators

• Our Solutions for Energy Market

• Value Proposition

3 © Nokia Siemens Networks 2012

M2M global connections market forecast 2011-2015 (millions)*

M2M global revenue forecast 2011-2015 (€ billions)*

The M2M market is growing fast– Vertical know-how is critical

M2M / Management Presentation / March 2012

0

200

400

600

800

1,000

1,200

1,400

0

20

40

60

80

100

120

140

160

Automotive Consumer electronics

Healthcare Intelligent buildings

Manufacturing & supply chain

Retail & leasure

Smart cities & public transport

Office equipment

Utilities

*) Source: Machina, M2M Global Forecast & Analysis 2010-20, September 2011, currency conversion rate of 0,75 € per 1 US$

CAGR:46%

CAGR:38%

CAGR:41%

CAGR:40%

CAGR:12%

CAGR:12%

CAGR:17%

CAGR:-3%

CAGR:37%

CAGR:47%

CAGR:24%

CAGR:65%

CAGR:46%

CAGR:11%

CAGR:18%

CAGR:31%

CAGR:2%

CAGR:41%


… but only about 25% use mobile networks

Mobile M2M connectivity is only one part of the story

Short range Mobile Fixed

2G

820 Millions

2G, 3G, 4G, Satellite

120 Millions Wide

area fixed, MAN

2,400 Millions

Bluetooth, ZigBee, RFID,

etc.

2015: Around 3.3 billion M2M connections …

Source: Machina, M2M Global Forecast & Analysis 2010-20, September 2011

4G

3G

... and by 2020

Machina forecasts the

number of connections

to be up to 12 billion

… others even much

higher…



Market OverviewM2M for Utilities

Market surveys...

The market for M2M in the utilities sector will see spectacular growth in terms of numbers of connections, from 100 million in 2010 to 1.5 billion in 2020. (15x growth in 10 years) This opportunity is dominated by one application group: Smart Metering (SM) solutions

Other three types of applications examined by the researchers:

• Transport & Distribution Management (T&DM)

• Electric Vehicle (EV) charging

• Home Energy Management (HEM)

Conclusion

Any discussion of the opportunities in the utilities sector naturally focuses predominantly on smart metering.


Market DriversM2M for Utilities- Key Drivers

Government regulation and funding of smart grids

• consciousness of rising energy bills and popular demands for environmental action

Public demand

• environmental concerns

• people across the world are increasingly concerned about household consumption, in particular of electricity and gas

• rising fuel costs, new sources are more expensive to extract and demand is increasing

Utilities gearing up for a competitive environment

• Reduced requirement for physical meter reading

• Automated meter reading is more accurate

• Facilitation of better demand response and load balancing means reduced requirements for investment by electricity utilities

• More sophisticated (perhaps even dynamic) pricing

• Remote management of subscribers

• Reduction in electrical Transport & Distribution (T&D) losses

• Less frequent replacement of dynamic network components


Market DriversM2M for Utilities- Key Drivers( Cont..)

Reduced energy theft and improved fraud detection

• the capability that smart metering gives for detecting people illegally tapping in to power lines and gas/water supplies, a widespread problem in many emerging markets

Service differentiation for utilities

• offering time-of-day charging

• allowing customers to manage their electricity usage through home energy management (HEM) systems

• service differentiation is related to the degree of competition in the market (e.g. A, UK, US)

Government push for electric vehicle adoption

Business topography

• end-points that are largely not attended by people, and would benefit from real-time performance monitoring

Network technology developments

• arrival of robust high capacity mobile data networks makes it easier and cheaper to connect sites

• Machina Research still anticipates that wide area wireless connectivity will come to dominate the M2M market for the utilities segment.


Create Smart Metering Apps

Proposed Utility SolutionsNSN Go-to-Market by enabling Operators

Selling the capability of smart metering for Operators. Enable them to benefit from our solutions when providing complex (communication, field equipment access, meter data management, etc.) services for utilities


Bu

sin

es

s m

od

el c

om

ple

xit

y

Complexity of offering

High

HighLow

Smart object connectivity provider

Cost efficient service delivery +B2B sales

Smart object service enabler

+Service expertise +B2C sales +Partnerships

Smart object services provider

+Marketing +IT capability & strategy

Redefine Operators business strategy to tap theM2M opportunity


Value

• Sensor data mediation

• Sensor data mgmt.

• Location & tracking

• Configuration mgmt.

• Performance mgmt.

• Fault mgmt.

• Consulting & design

• Enterprise architecture

• Device logistics

• Systems integration

• IT & charging services

• Technical support


Service value chain positions – Example cases

M2M service enabler

M2M connectivity

provider

M2M service provider

In enterprise business unit

Separate unit

Separate company

71%

13%

16%

63%

15%

22%

HarborResearch

BeechamResearch

Share of value chain 2014

Sources: Beechman, M2M Service Enablement Services, 2010 & Harbor Research, The Emergence of Smart Business, 2010



Modular cloud based M2M solution – Capture the maximum M2M value

Telematics HealthcareEnergy Home Industry Long tail applications

Fully managed vertical e2e services

Smart object management

Data collection & pre-processing

Service creation & management

Business integration capabilities

Smart object communication mediation

Ecosystem Management

Subscription management

Automated processes

Business intelligence

Policycontrol

Mobile Networks & Resource Management (Optimization, Security, QoS, Quality & Service Assurance)

Developer community + partnerships+ Nokia Siemens Networks innovation

Service enablement

Apps & Smart Objectsecosystem

Managed connectivity & Networkoptimization



Smart MeteringCharging & billing

Rating and billing

Data management

Tariff management

Connection to

utility data systems

NSN solutions for the energy market

Management of the physical grid elements like

- Wind parks….

-Energy refill stations…

Linked to workforce management

Site & grid management(generation, distribution & consumption)

Smart GridElement & grid management

eMobilityAuthentication

-Identification while traveling

-Subscriber repository

-Roaming

User authentication

User database

Collection of meter data

Data preprocessing/

FCAPS

Measurement data base

Reading platform

Invoicing

CRM

ERP

M2M communication

c@o unified

c@o mediate

c@o business

Cumulocity

OpenEMS

NetAct

OneIDM

OneNDS

Security


Rating & Charging Engine

Centralized data bases

Integration layer to Energy

Offe

r Man

ager

Billing

Product: charge@once unified

MDM & Rating

Rating & Charging

Billing

Mediation

Energy Rating. Billing

Mediation

Rating & Charging Engine

Centralized data bases

Integration layer to Energy

Offe

r Man

ager

Billing

Product: charge@once unified

MDM & Rating

Rating & Charging

Billing

Mediation

Energy Rating. Billing

Mediation

Overview NSN Portfolio for Smart Grids

Connectivity + Network Management

Services

End-to-end communications solutions

• Carrier Ethernet Switches

• Microwave Radio

• Optical Transport (DWDM)

• Next Generation SDH

• Narrowband / Multi-service

and viaPartners

• PABX

• PLC/BPLC

• WiMAX

• Meshed Networks

Network Design IP Transformation Service

Maintenance Managed Services

Installation Network operations for Telco network

Smart MeteringSmart Meter Data Management Rating, Billing

e-mobilityIdentification, Authentication, Data Management Rating, Billing

Identity Manager

RatingBiilling

Subscriber Repository

Element Management for Smart Grids

External Systems (ERP, CRM, Work order mgmt etc)

Asset MgntFault Mgmt Simulation Control

Advanced Network Modeling Layer

SCADA and other local control systems

Data Communication Network

(IP-based, broadband)

Enterprise Integration Bus

Data

PerformanceMgmt

Cumulocity


NetActNetAct

NSN Solution for Utilities

Charge@Once

Cumulocity

NSN Partners

NSN Network Solutions

NSN Partners

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

ERP layer

OSS Layer

Smart Objects Layer

Connectionlayer

Meters ObjectsSensors

CRM ERP system

InvoicingCustomer self-care

Customer care Business intelligence

Reports

FCAPS

Multi-Vendor/Industry/Provider Data Collection

Pre-processing Object Management

BSS Layer

SOA interface server

Real Time Billing/Prepaid

Rating engine

Event history data Customer data Tariff data

Tariff management

Fraudmanagement

Certification Process

Meter datamanagement

NetAct

One NDS


BPL / PLC

PON

Microwave

SDH / Optical IP

Overview – Smart Meter Connectivity in a Power Utility’s network

MV-HV

Substation

NCC / Data

Center

LV

Transformer

PLC

SDH / DWDM

Microwave

BPL / PLC

PON / FTTH

WiMax

• DSL

• 3G / GPRS

• DSL

• 3G / GPRS

• DSL

• 3G / GPRS

Last Mile (Field Area Network)

Medium Voltage High VoltageLow Voltage

Internet

VPN-Tunnel

3rd

Pa

rty P

rovid

er

/ C

SP

Po

we

r U

tili

ty o

wn

in

fra

str

uctu

re

•Zigbee•W-MBus•Mbus•RS485•RS232•Ethernet

Ext. Comm-

Module

Meter

Meter with integr. Comm module

Mobile / Fixed CSP

LL / 2G/3G/4G


February 2011

The State Grid Corporation of China is building a Qinghai-

Tibet power grid to improve and optimize power allocation

in the region. It has selected Nokia Siemens Networks’

optical transmission platform to help ensure consistent

power supply for the world’s highest power transmission

line. The power grid is the largest construction project in

the region and is scheduled to be operational by mid 2012.


KALASATAMA Projectcooperation of NSN, ABB, Helen Sähköverkko and Helsingin Energia

• NSN, ABB, Helen Sähköverkko and Helsingin Energia have signed a four-way Memorandum of Understanding on

• “cooperate regarding the implementation of a “Smart Energy” demonstrator for Kalasatama, Helsinki. The companies have a common interest in being in the global front line of learning about design and business implications of Smart Grid concepts and to demonstrate and communicate the Parties ability to provide Smart Grid solutions and services to enable the fulfilment of the environmental targets for sustainable urban environment.”

In the heart of Helsinki, the Kalasatama region is a sizeable, real

environment where Smart Grid concepts and technical solutions can

and will be trialed, home to 15,000 residents and workplace of 10,000

professionals. It allows all the companies to utilize their core

competences, and at the same time learn more about the building of a

Smart Grid / Smart City and most importantly how to sell the benefits

of the Smart Grid and its services to the consumers.

http://www.kalasatama.fi/images/iso1.jpg


M2M managed connectivity and network optimization

M2M service enablement, applications and smart objects

Machine to Machine – Wide variety of projects and customers


iMETRIK, Canada

• Car rental fleet mgmt. solution for an MVNO

• Solution based on SDM & 3rd party connectivity

Telenor Connexion, NE

• Integration of Subscriber Data Management into a multivendor environment

• Valued support services

Operator, EMEA

• On board unit – emergency call (eCall ) solution

• NSN SDM and messaging system solutions

Operator, EMEA

• Location enabled M2M platform; printer preventive care mgmt. solution; SDM

• Hosted M2M Solutions

Utility, EMEA

• M2M platform for property energy management

• Cumulocity platform and energy M2M devices

Zhenjiang Government

• M2M platform for high-tech city transformation

• Healthcare, transport and energy use cases

China Mobile

• Generic M2M platform including smart object and application integration

• Customer development

Utility, EMEA, LoI

• End-to-end Advanced Metering Infrastructure

• Cumulocity platform, Energy Applications


Our global reach, comprehensive M2M services andfast local delivery helps to enable M2M business

Infrastructure

Solutions

• Service Enablement

• ManagedConnectivity

Business &processes Consulting & Systems Integration

• 500 Consulting projects delivered to over 70 Mobile Operators

• 1500 Systems Integration projects

• #1 in carrier-grade Security: Over 300 multi-vendor security projects successfully delivered

Implementation

• 350 mobile and 250 fixed deployment projects

• Experience from more than 100 turnkey projects

• One site on air every 95 sec.

Care

• Remote software services to 450 customers

• 1M HW service transactions/ year, 150k are multi-vendor

Managed Services

• Network Planning & Optimization

• Network operation

• Managed IT

• 650 M subscribers managed

Design Sell DeployAssess Build Operate



We provide a comprehensive services portfolio to assistthrough all phases of service delivery

Illustrative smart object service delivery process

Nokia Siemens Networks example activities

M2M Product Design

Solution Design & Architecture

BusinessProcess Design

Sales Pricing Template Design

TCO Analysis

System Integration

System Test & Validation

Business Process Implementation

End UserProof of Concept

Marketing CampaignDevelopment

Combined Salesfor Key Verticals

Online Trainingfor Sale Force

M2M Strategic Positioning

M2M Implementation Planning

Business Case Development

Build Deploy OperateDesign SellAssess

M2M Service Optimization

M2M Service Enablement

Smart Objects Connectivity

Online Training for Service deployment

Smart Object Logistics

Smart Objects Installation Design

Enterprise Service Integration

Smart Object Activation and Configuration

Customer Experience Assessment

RemoteService Delivery

M2M Service Management

Automated Customer Care

M2M Conditions & Readiness Assessment

M2M target Market Assessment

M2M Business Acceleration program

M2M go-to-market plan M2M service launch M2M service excellence



Transformation will affect the utilities' complete value chain from production to consumption, technology, business processes as well as business models

distributedgeneration

solar generation

traditionalpower plants

wind farms plug-in vehicles

energy efficient

industry

smart meters

smart house


• Advanced metering infrastructure (AMI) is an

architecture enabling automated, two-way communication

between a smart utility meter and a utility company. It is a full

measurement and collection system that includes meters at the

customer site, communication networks between the customer

and the service provider along with data reception and

management systems to make the information available to the

service provider

The components of an AMI System include:

• Consumer Data collection system:

It includes field components like smart meters and meter

modules installed at the customer site to collect data

• Communication Network:

It includes network infrastructure, communication link and

network management software.

NAN connects the local clusters of smart meters, and WAN is

used for back-hauling to connect each individual smart meter

directly to public cellular networks

• Meter Data Management System:

AMI Host system collects the meter data and sends it to

MDMS. MDMS manages data storage and analysis to provide

the information in useful form to the utility. .

AMI System Components Comments

Introduction to Advanced Metering Infrastructure (AMI)

Consumer Data

Collection

Communication

Network

Meter Data

Management System

Electric Meter

Water Meter

Gas Meter

AMI HostNAN WAN

Collectors and

Concentrators

Source: EPRI, ABI Research

Meter data

Management

system


Fiber optic based communication solutions

Next generation SDH series SURPASS hiT70xx for services from 2Mbit/s up

to 10Gbit/s

DWDM series SURPASS hiT7300 / 7500 offering 40/80/160-channels with

channel capacity of 10 / 40 or 100 Gbit/s

Connection Master - NSN‘s hybrid solution for services from 64kbit/s up to

2,5Gbit/s

Carrier Ethernet Transport for a full blown

packet based solution

NetAct Transport for the management of

connectivity portfolio

Radio solutions

NSN‘s point-to-point microwave radio portfolio covers the full range from

n*2Mbit/s up to n*155Mbit/s, from access via aggregation to the backbone

of the network

RF range from 2 GHz up to 38GHz

TDM based radio solution as well as full-Packet based solutions are

available:

FlexiHopper: TDM based solution with Ethernet functions

FlexiPacket: full packet based radio

FlexiMetro high capacity SDH radio

FlexiHybrid: PDH / SDH aggregation Native Ethernet

FlexiPacket Microwave

Full packet mobile backhaul application

Advanced Ethernet functionalities

Nodal IDU

Stand-alone ODU

Powerline solution

Fully transparent connectivity solution working on existing powerlines -

meter manufacturer independent

BPL LV modem with gateway functionality

Various interfaces for connecting with the smart meter (i.e. Zigbee, W-

MBus, MBus, RS485, RS232, Ethernet)

Compatible with Homeplug standard

Medium Voltage modem available (up to 36kV)

Bandwidth up to several 10Mbit/s

3G / LTE solution

GSM /

GPRS

modem

Utility Control Center

NMS

Data Gathering platform

…Multi dwelling units

Single homes

Meter with integrated

GSM / GPRS interface

GSM / GPRS / LTE Internet

VPN-Tunnel

3rd Party Provider / CSP or Utility own solution

NSN is world market leader

in 3GRadio Business!

Single homes Transformer station

BPL

Any Meter

w/ specific i/f

LV

Head-endBPL LV

Modem

IP to MV-

network

Transformer station

BPL

MV

Modem

MV

Modem

MV substation

MV

Modem

•FO

•Radio

• ..

from LV

network


NSN: Global company with a rich heritage

• Joint venture of Nokia and Siemens, acquired Motorola’s wireless networks infrastructure business in 2011

• Started operations on April 1, 2007

• €14 bn net sales in 2011

• 120+ years of telecom experience

• 68,595 employees*

• Strong focus on mobile broadband and customer experience management

• > 80 out of the top 100 operators worldwide

• 150+ countries

• 6 billion mobile subscriptions around the world with 1.2 billion subscriptions for mobile broadband services

* As reported on 19.4.2012

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