The Smart Home opportunity for telcos_

As we move into the Internet of Everything, Smart Home emerges as the

“consumer” version of the IoT opportunity

Internet of Things – Connected devices BN*

Connected Home

2016 2018 201920172015

~25 BN connected devices by

2020 Government/ Infrastructure

Enterprise

25

5

10

15

0

20

A train nobody wants to miss

Telcos are not an exception and they are moving fast

AT&T Digital Life(2013)

Telcos are not an exception and they are moving fast

Comcast Xfinity Home(2013)

Complete smart home management.Even when you're away from home.

SECURITY·CONTROL·ENERGY

XFINITY® HOME

Telcos are not an exception and they are moving fast

Deutsche Telekom Smart Home (2013)

Telcos are not an exception and they are moving fast

Orange Homelive (2014)

Telcos are not an exception and they are moving fast

PCCW-HKT Smart Living (2014)

Telcos are not an exception and they are moving fast

SK Telecom Smart Home (2015)

An evolution of Telco core business with 3 key benefits

Revenues Churn

4th/5th

Play

Operational

Commercial

Strategic

Extra

ARPU per

customer

Expand

our

Portfolio

Customer

engagement

Increase

customer

relevance

Smart Home solutions give answer to different customer needs and segments

NEED WANT

Keep loved ones close and control life at home

Closeness & Control

“You can check on your

home

and make sure everything

is alright, whenever and

wherever you like.”

Make life easier and save me time

Convenience& Control

“I like products that make

my life easier rather than

complicate it.”

“On a cold winter’s day…

you can turn on the

heating even before you

get home”

Cool

Make me look cool and fun

“I always like the best

things for my house, it´s

the same with my smart

devices”

4 main Smart Home services

Energy consumptionMonitor & Control

“Be at home when you are not”

“Take care of those you love”

Smart Living Home Automation

“The remote control of your home”

“An efficient energy consumption”

Telco capabilities will be key to deliver some of the most valued attributes of

Smart Home services

Electronic

Retailers

Preferred Smart Home provider* Most valued service attributes*

Telcos Utilities Home

appliances

OTTs & Start

ups* Internal researches

Easy to use Attractive price Guaranteed

data privacy

Easy /

Provided

installation

Good customer

support after

purchase

Likewise, markets dynamics are showing that telco assets can make a difference

Trusted home brand Reach to customer Value aggregation

Core

Smart Home

New value added services

Strategic approach to the category

A new IoT business category to be built where

iteration with the customer will be crucial

Service

definition

Test

Evolve

Finding the right partners is critical to develop

a winner mass market value proposition

Leveraging on telco capabilities to provide an

outstanding E2E customer experience

Ultra-Broadband Forum 2015

Thank you