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World Bank workshop March 5-6 2012

Smart Cities within Orange

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group

strategic

program

Smart cities program focuses on four industry sectors

smart metering/smart grid

connected car Public transport/Urban mobility

smart home/smart Building

to accelerate those projects

A strategic Group program

growth area

Technologies are ready

Users are ready

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A strategic choice in line with mega trends

Population growth: +2bn more people by 2050 of

which 1bn in Africa (UN world pop forecast, May 2011)

Increasing Urbanisation: every 2nd inhabitant lives in a

city versus 1/3rd 50 years ago, 57% in 2025 (Frost Sullivan)

Climate change issues: CO2 emission increased 7x

over the past century (globalissues.org)

Ever increasing energy demand: world primary

demand increases by 36% between 2008 and 2035, or

1.2% per year on average (IEA 2010 fact sheet)

Water scarcity affecting 1 in 3 people on every

continent of the globe (WHO, 2009); Millennium goal 7 to

halve, by 2015, the proportion of people without

sustainable access to safe drinking water and basic

sanitation

… require significant

industry transformation

pressing challenges for our planet …

Intelligent use of information, enabled through modern ICT is an essential solution

component

mobilityconnected

objectsubiquitous

connectivity

cloud

services

Energy

(Electricity & Gas)

Water

Connected Cars

Urban Mobility

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A positioning based on partnership and co innovation

partnership approach

projects with variable sizes

– local / regional (ex : transport public)

– national (electric grid)

– European (car connectivity)

co-construction of projects with motivated clients

Cultural aspects mean local adapted solutions

Some Orange references:

– M2Ocity, company created with Veolia to supply water smart metering systems

– Connectivity services provided to a major European car manufacturer

– Mobile data supplied to local authorities

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Spain

United Kingdom

Jordan

Egypt

Mauritius

Morocco

MaliNiger

Ivory Coast

Senegal

Guinea Central African Republic

Kenya

Botswana

Madagascar

Tunisia

RomaniaMoldova

Poland

France

Slovakia

Switzerland

Austria

Guyana

Armenia

BelgiumLuxembourg

Vanuatu

Dominican Republic

Martinique

Guadeloupe

Reunion IslandCountries where we provide services for

residential customers

Countries where we provide services for

business customers

216 million customers worldwide…

our Group provides services for residential customers in 37 countries and for businesses

in 220 countries and territories

Iraq

Congo DR

UgandaCameroon

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France Télécom-Orange -Confidentiel3

le marché mondial des télécommunications : la zone Afrique &

Moyen-Orient est la région la plus dynamique

2,3%

1,5%

Europe

Asie

Pacifique

Afrique et

Moyen OrientAmérique

Latine

Amérique

du Nord 5,2%

5,0%

6,3%

401 Md$

356 Md$

415 Md$

151 Md$ 100 Md$

CAGR 2010-2015

CA 2010 marché

télécom en milliards de $

xMd

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page 1

ConcentratorGateway

ConcentratorGateway

data collect

and

data analysis

’

Utility (billing , CRM)Utility (billing , CRM)

wirelessData flow

mediation

measures

supervision

alerts

smart

metering

Smart meters

Business application

and customer displays

Business application

Data collection network

Services to end

customers

connectivitycollection

networkService

platform

City monitoring

Fixed line

Company created between Veolia and Orange end 2010

Deploying water smart metering networks in the suburbs of Paris

and other cities with a target of 5 millions smart meters in 2020

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We believe partnerships will be key to make the smart

city happen

Global leader in water services

Operating ~1 M smart meters

Key capabilities for water smart

metering :

For modules : Homerider

for roll-out : Sade Telecom,

Dalkia Infracom

For IT ntegration : Somei

Global leader in Telco

Strong involvement in M2M

standardization

OBS know how and expertise

Key M2M capabilities :

IT tools for design & roll out

IPVPN &GPRS/M2M

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Smart metering in emerging countries

Smart metering will be of use to utilities in emerging countries for

different reasons than in developed countries

– Bill collection, fraud and technical losses decrease, black out prevention

– Prepayment quickly developing, and Orange strongly believes in

payment by mobile phone (Orange Money in emea region)

Many initiatives already taking place in various countries in Africa,

mostly at pilot stage

– Cameroon, Senegal : utilities are moving

– Orange also engaged in partnership with meter manufacturer in Egypt

for a joint prepayment/smart metering soluton

Key question is : who will pay

– Projects imply rolling out a smart metering infrastructure on hundreds of

thousands of meters

– Utilities will need funding

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Respective roles of donors and private sector

Donors

Definition of action plans, with clear statement of priorities (energy/transport) and including pilot projects

Capacity building of the local actors on the interest of new technologies for infrastructure management

Support on spreading innovative business models

General political and funding support

Private sector actor like Orange

Ready to share risks and revenues on those smart projects (type of payment “as a service)

even in some more difficult emerging countries (Orange mobile countries in Africa and Middle East)