Telefónica m2m: Connected car come of age

Connected CarCome of Age

Pavan Mathew, Head of Connected Car Telefonica Digital

CTIA 2013, Las VegasMay 22nd 2013

© Telefónica S.A | All rights reserved m2m

Industry wide agreement that the connected car is a big opportunity, and a key market within M2M for operators…

Devices 50bn

People 7bn Places 1bn


Devices 50bn

People 8bn Places 1bn

Industry wide agreement that the connected car is a big opportunity, and a key market within M2M for operators

250 Million Vehicles registered in Europe

250 VEHICLES

- Telematics Update - - Telefonica - - European Commission -

Vehicles 1,1bn

Estimated penetration of Telematics

<1% PERCENT

Estimated Revenues from Telematics Market in 2012

$2.3Billion


Everyone agrees connected car is a big opportunity, and a main market within M2M for operators…

Estimated penetration of Telematics

<1% PERCENT

250 Million Vehicles registered in Europe

250 VEHICLES

Estimated Revenues from Telematics Market in 2012

$2.3Billion

Consumer Telematics business by 2013

$ 41BILLION

Telematics enabled vehicles by 2010

30 MVEHICLES

Global revenues will grow up to US$11 billion in 2020.

$ 11BILLION

Telematics enabled vehicles sales by 2020

35 MVEHICLES

… however mass adoption and revenue has been a challenge…

2005 Forecast Current Forecast

- Telematics Update - - Telefonica Market Research- - European Commission-

Devices 50bn

People 8bn Vehicles 1,1bn


StandardizationCustomer

ManagementService

customizationCost Model

…due to challenges in business model

• HW cost impact on vehicle retail price

• Data network roaming costs

• Multiple players in the value chain

• Prepare infrastructure to sell services (Business process and tools)

• Billing & invoicing capabilities a cross countries

• Manage customer relationship

• Flexibility on service/bundles

• Adapt user experience of digital services to car uses case (70% of customers are solo drivers)

• Standardize Systems to attract developers

• Interfaces to make services/devices work seamlessly


Partnership between OEMs & Telcos is critical to

address these challenges

StandardizationCustomer

ManagementService

customizationCost Model

• Telco are actively working on cost reduction in data roaming costs and SIM pricing

• Sharing revenues is lading to new model where risk are share among main stakeholders

• 1:1 customer relationships

• Extensive knowledge in CRM & data mining

• Unique position to bill & invoice customers

• Content, apps, agreements with content distributors…

• Extensive knowledge in Ux, and digital services & apps business models

• Experience in standardization processes & forums


Supported by Service Delivery Platform

Telefonica is developing its proposition to meet the

challenge

MANAGED CONNECTIVITY.

Best in class connectivity, leveraging our unique footprint and selected roaming partners with one global SIM

FOUNDATIONAL SERVICES

Addresses forthcoming global regulations and customer expectations

eCAll

bCall

Stolen Vehicle

Navigation

Point of Interest

DIFFERENTIATING P&S Bringing in advanced digital product and services to the automotive industry Advanced Data Management:

• Hosting• Analytics

Insurance Telematics Fleet Management Media Content Location Based Advertising

DEVELOPER ECOSYSTEM.

Offer Telefonica's developer ecosystem to the connected car, allowing the OEM to manage the user experience

Power by


Meeting customer and OEMs needs

the theDriver OEM

New revenue streams

Vehicle differentiation

Improved service loyalty

Transforming the car into a service, transforming the service into a business opportunity

With a Unified user experience controlled and branded by the OEM

Gain insight on driver behaviour do to better target cross-selling offers and services

Address regulationseCall (Mandatory in EU by 2015), Contran 245, GLONASS, global connectivity

Quality improvement & warranty reductionGain insight prior to saleable vehicles & Over-the-air fixes reduces warranty saving

Improved CRMSupport new customer interactions and vehicle information tracking in order to develop a personalized relationship based on drivers’ preferences and behaviors.

Increased safety & security

Easy and practical services

Unified user experience

Feel secure on the road and vehicle operation

Access easy-to-use navigation, infotainment services in a safe way with a smooth user experience

OEM branded experience


OnStar & Telefonica partnership

• Single Global Supplier – Ease of Managing Project, Accountability

• Global SIM – Improved Logistics and Manufacturing Chain

• Global Project Team – Sales, Post Sales Project Management

• Legal And Regulatory – Global Cooperation

• Future Development – Long Term Relationship!!!


& More to come

THANK YOU!

Pavan Mathew | Telefónica Digital

Head of Connected Car | M2M Global Services

[email protected] | Mob: +1 734 679 9381

Automotive

Telefónica m2m: Connected car come of age