Validating the LPWA demand
- 1. Validating LPWA demand LPWA IoT Network Event 2016 Telefonica IoT CCDO Paula Valverde Head of IoT New Business @paula_valver
- 2. 2 Chapter Title (32 pt) Subheading (20 pt)
- 3. 3 LPWA, Network evolution meant becoming simpler Mimicking Nature 3G LTE 5G LTE-A Data traffic per device 2G Evolution by increasing Complexity Cat 1 Data traffic per device Battery Life of devices Evolution by becoming simpler Battery Life of devices LTE-M NB-IOT mMTC (5G)
- 4. 4 LPWA targets massive IoT usecases and the business cases would work when reaching huge volumes Price of serviced object Quantity of connected Object Demand Massive IoT business LPWA will require new business model beyond pure connectivity Existing M2M business
- 5. 5 LPWA Demand is not yet living up to the expectations and we need to focus on getting Lower e2e service Price Price of serviced Object Quantity of connected Object • Module cost (still high) • Device cost (really high) • Scalability (not enough) • Interoperability (lack of) • Open Labs (to be created) Today’s scenario E Surplus Quantity demanded Quantity supplied Market Price Demand Supply PE The market price is higher that the equilibrium price because of
- 6. 6 NB-IOT brings a shift of the supply A good move that need to be complemented by a demand shift Price of serviced Object Quantity of connected Object ü Adding NB-IOT (more supply) means higher volumes at a lower price Accelerating plans to lower e2e service price is key NB-IOT scenario E1 Quantity demanded Quantity supplied Market Price Demand Supply1 E2 Surplus Supply2 P1 P2 Q1 Q2
- 7. 7 LPWA forecast are yet biased toward the supply
- 8. 8 Telefonica has already validated LPWA business cases where demand existed Metering Urban furniture (smart city) Security (alarms) Verified Use Cases for LPWA (demand) Asset Tracking Usecases under demand evaluation Industrial process Agriculture and livestock Smart city (street lighting, parking, waste) Building management
- 9. 9 Telefonica has been working to understand LPWA market and demand Demand • Telefonica has been validating LPWA demand with customers for the last two years • Focused on flagship usecases to be replicated across our footprint Supply Revenues • 2015 invested in Sigfox • We primary bet on NB-IOT (roll out plans from 2017) complemented by Sigfox for low complexity applications • NB-IOT and unlicensed solutions (Sigfox) could coexist (for specific scenarios) LPWA Revenues will not come mainly from pure connectivity but providing both e2e services and a complete IoT connectivity portfolio (combining connectivity adds value)
- 10. 10 We have been quite busy (and will be) Validating demand with customers
- 11. Thanks!