Lars Nielsen Head of Technology Industry & Society

Connecting IoT

June 2016 | Page 2

Monitoring vessels & connected devices onboard, giving Maersk a yearly saving of 36M euro according to an article in Børsen 7/1-2014. Learn more

Enabling global rollout of mobile payment for water credits, giving water service providers payment directly from their customers’ mobile wallet. Learn more

In a Smart City like the one we are implementing in Stockholm Royal Seaport, you can have smart devices to start when there is a low load in the grid. Learn more

Third party service providers such as infotainment providers, road authorities, cities and governments can offer drivers real-time information. Learn more

June 2016 | Page 3 Source: Ericsson Mobility Report

Connected Devices

in 2021 28 BILLION

16 billion IoT DEVICES

12 billion MOBILE PHONES, PC’S, TABLETS

June 2016 | Page 4

IoT will surpass mobile phones in 2018 Cellular IoT has the highest growth rate

Source: Ericsson Mobility Report

June 2016 | Page 5

Europe will add most IOT connections driven by growth within connected car & Smart Meters

Source: Ericsson Mobility Report

June 2016 | Page 6

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Source: Ovum, 2016

471 IoT contracts signed in 2015

Contracts signed between operators and industry verticals (Cellular IoT )

June 2016 | Page 7

wireless access generations

The foundation of mobile telephony

The foundation of mobile broadband

Mobile telephony for everyone

The evolution of mobile broadband

Industries beyond Smartphones (IoT)

~1980 ~1990 ~2000 ~2010 ~2020

1G AMPS TACS

NMT

2G GSM D-AMPS

PDC IS-95

4G LTE

3G WCDMA/HSPA

cdma2000

5G

June 2016 | Page 8

› Scania has become the first company to test Ericsson’s 5G technology

› 5G enable shorter distance between trucks resulting in 10% fuel reduction

› Low latency ensures safety

– The responsiveness of each truck within the platoon is estimated at 25 times faster than the average human reaction time of one second - saving critical time in case of emergency braking

Platooning reducing fuel consumption

Learn more

Commercial in confidence | May 2016 | Page 9

Diverse iot requirements

IoT Is not one industry

Smart metering Smart grid management

UTILITIES

Fleet Management Goods tracking

TRANSPORT & LOGISTICS

Smart parking Smart bicycles

SMART CITIES Climate-Agriculture

monitoring Live stock tracking

AGRICULTURE

Smoke detectors Alarm systems Home automation

SMART BUILDINGS Flood monitoring & alert

Environmental monitoring (Water, air,

noise, etc)

ENVIRONMENT

Wearables Kids/Elderly tracker Medical monitoring

CONSUMERS

Process monitoring & Control

INDUSTRIAL

COST

BATTERY LIFE PERFORMANCE

COVERAGE

BI-DIRECTIONAL DATA

SECURITY

RELIABILITY & QoS

POSITIONING

TRANSPORT & LOGISTICS: Goods tracking

SMART CITIES: Smart bicycles

INDUSTRIAL: Process monitoring & Control

SMART BUILDINGS: Home automation

Waste management City lighting

To swap the icons of Smart Cities and Smart Buildings COST

Maintenance monitoring

June 2016 | Page 10

a Use case Game More then a technology fight

100 m 10 km

High Automotive

Global 1 m

Low

Process automation

Factory automation

Surveillance

Smart grid

Remote control

Building automation

Smart homes

Agriculture sensors

Asset tracking

Coverage

Performance

Long Range Unlicensed Spectrum Sigfox, LoRa, Weightless…

Local Connectivity Unlicensed Spectrum IEEE 802.15.4, ZigBee, Wi-Fi, Bluetooth Low Energy…

Mobile Networks Licensed Spectrum GSM, 4G/LTE, 5G

June 2016 | Page 11

eSIM (Embedded SIM / eUICC) The “new” kid on the block

Select / Change operator

Download profile

Usage

End of Subscription

Produce SIM

Select operator Distribution SIM

Activation Usage End of life

The life of a Traditional SIM:

NEW Embedded SIM :

Produce eSIM

Bootstrap operator

Distribution to manufacturers

June 2016 | Page 12

NB-Iot Another new kid on the block

DEVICE COST REDUCTION

80% YEARS

BATTERY LIFE

10+

Power Saving Mode Low Modem Complexity Extended Coverage

Simplified Chipsets

BETTER COVERAGE

7x

June 2016 | Page 13

LTE will be the dominant mobile access technology in 2019

Source: Ericsson Mobility Report

June 2016 | Page 14

M2M vs. IoT

Common platform for all services

June 2016 | Page 15

› A world-class environmental urban neighborhood › A showcase for energy and environmental solutions › 10 000 new apartments › 30 000 workplaces › Smart grid communication for

– Distribution automation – Micro generation – Energy storage – Demand/response to smart appliances – Smart metering – Electric vehicles

Stockholm Royal Seaport Implementing a smart city

June 2016 | Page 16

Evolution Example

M2M

DEVICE DRIVEN

Telematics 1.0

ECO SYSTEM

BUSINESS DRIVEN

Connected Car

NETWORKED SOCIETY

INNOVATION DRIVEN

Connected Marketplace

Find the Value ex. From the AUTOMOTIVE industry

Capture aftermarket sales

Build customer relationship

Quality control

New services from third parties

June 2016 | Page 18

Connected vineyard For 4 top German wine makers, running since July 2015

Solar radiation

Soil temperature

Soil humidity

Air temperature

Air humidity

Time of harvest

Water Irrigation

Fungus protection

16 gateways each with 80 sensors

3km distance from gateway to sensor

Intel, MyOmega

June 2016 | Page 19

Analytics

June 2016 | Page 20

Illustrating the Networked Society

June 2016 | Page 21

key Takeaways

The mobile networks are evolving to support IoT NB-IoT and eSIM are the most interesting development short term and with 5G we will see new use cases with extreme low latency & device to device communication

Use Cases normally dictates the connectivity technology There is not one technology that will fit all IoT cases. Start by defining that value you

want to achieve, the use cases and the needed data, don’t start with technology

Connected Things are going to change the world At Ericsson we call it The Networked Society and already in 2018 we will have more

connected devices then mobile phones, automotive and utilities are drives

June 2016 | Page 22