Nokia Smart Home

Jarno Halme 24.05.2017

1 © Nokia 2016 The Smart Home opportunity

>150M smart homes worldwide by 2020 39B$ smart home revenues by 2020, at 24% CAGR 10-20€ current monthly ARPU

Source: ABI Research Dec-15, Nokia analysis

2 © Nokia 2016 Outline

Fixed and wireless Intelligent technology for Homes as extension to connectivity as easy adoption society cornerstones of a Smart Home

3 © Nokia 2016 Creating smart, safe and sustainable world with the Internet of Things

Advanced IoT technology that ensures the best use of urban assets and data is what creates a smart, safe and sustainable environments.

This requires a shareable, secure and scalable platform that combines everything from the network to the devices and applications that make up the Internet of Things.

4 © Nokia 2016 IoT: From devices to applications …to application

Enablers • Connectivity • Management • Security • Openness

From device…

5 © Nokia 2016 Four use cases, four distinct business models

Home Home Smart Digital security automation energy health

• High willingness to pay • Low willingness to • Savings for consumer • Home comfort for sick by end-customer pay by end- • Driven by energy and elderly • Requires partnership customer (DIY) provider (less truck • Significant savings for with security provider • Potential as upsell rolls) healthcare with home security • Driven by health insurance & health sector

6 © Nokia 2016 Fixed or mobile? The answer is both fixed AND mobile

Fixed Mobile ensures high bandwidth for … and efficient transport of ensures connectivity while on the residential and business users... mobile traffic move, IoT

7 © Nokia 2016 A complete ecosystem to build the right partnerships

265 members 375 members/1500 products 450 members >550 members/>30,000 products

8 © Nokia 2016 Zoom in on the smart home gateway

802.11ac 4x4 MIMO 802.11b/g/n 2x2 MIMO Wi-Fi 1700 Mb/s 300 Mb/s + ZigBee + Z-Wave + BLE (3Q17) GigE uplink 87% of all smart devices shipped in 2021 Maximizing the smart devices ecosystem Source: ABI Research, Home Automation Systems, October 2016.

9 © Nokia 2016 Information management, local analytics, clouds

Intelligence Big Data Wireless software Same Fibre

Fixed Mobile 10 © Nokia 2016 End to end solution – fit for need, scale for diversity

Business Vision and Needs

Connected Connected Connected Connected Connected Public Safety Digital Health Mobility Utilities Smart Cities Applications 

IoT Platforms

Connectivity

Device Ecosystem

11 © Nokia 2016 A horizontal platform approach to enable mass adoption

IoT Platform (IMPACT)

Vertical Point Solutions are expensive Horizontal approach drives down cost • High Cost for integration • Adopt Best Practices • Duplication of effort • Streamline Operations & Reduce Costs • Underutilized resources • Mix and Match devices and Applications • No Economies of Scale

12 © Nokia 2016 IoT Platforms

Application Development and Enablement

Connectivity Device Data Management Management Management

13 © Nokia 2016 The Smart Home The network provider challenge opportunity

Broadband Residential Gateway Multiple hubs – one per vendor with integrated Smart Home hub

Multiple apps – one per hub Single app

Too many vendors/protocols/hubs/apps Leverage RGW as Smart Home hub

Manage all your devices Allocate (add/change) devices to rooms

Nokia app Switch appliances on/off Te l c o branded app Create if-this- then-that Te l c o scenarios developed app Visualize your power consumption

• The individual, their family and caregivers can all track the individual’s wellness and are informed of potential issues. The elderly • Provides monitoring while respecting the individual’s privacy and autonomy. and infirm • Estimated $20B growth by the year 2018; incremental to the estimated current stay safe market of $77B and secure • 16% of world population will be over 65 years old by 2050 in their • Well-designed devices own home. • Engaging family healthcare and smart home apps • Customized user-specific analytics

Install the service on time

Helpers’ Solve your problems immediately crowd platform Helpers provide unique service Find the perfect Explain how products work moments match for customer and helper

Market entry

Collaboration

Development environment

Connectivity

Connectivity: broadband, User centric development, MyData as part of the mobility, volumes of complexity hidden. society. Leverage ecosystem devices, technologies. and crowdsourcing. Intelligence in the edge. Understandable business model.