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Rural Smart Grid Opportunity Christoph Inauen Director, Business Development Nokia Siemens Networks
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Nokia Siemens Networks - Overview Joint Venture between Siemens and Nokia, launched April 1, 2007 ~64,000 people in more than 150 countries, approx. 2,500 in North America Global Headquarters in Finland and Germany – Irving, Texas for North America Revenues of ~ $18B/year $2.8B invested in R&D in 2009 World’s second largest communication infrastructure supplier Acquisition of selected wireless assets from Motorola announced in July 2010
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Smart Grid Vision
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Why do we need a Smart Grid? Modernization of the electric power grid is central to U.S. national efforts to: Increase energy efficiency Reduce greenhouse gas emissions Transition to renewable sources of energy Build a sustainable economy
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Overview (Source: NRECA) In the U.S., there are approximately 864 electric (distribution) cooperatives in 47 states serving 42 million consumers and 18 million businesses cover approximately 2.4 million miles of line Customers per mile of line: 7 (compared with 47 for POUs and 35 for IOUs) Selected List of Key Technology Areas AMI Voice & Data Communication Field Force Management GIS / Asset Management Rural Utility Market
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Communication Technology Aspects Mainstream mobile network technologies benefit from economies of scale (price, availability, reliability, robustness, long term support) GSM / EDGE / WCDMA / HSPA / LTE share 3GPP standards and it guarantees a smooth evolution Battle over winning 4G is over, LTE is the ecosystem winner WiMax expected to emerge as a niche industry technology, used in unpaired bands TDD-LTE development is accelerating China and India have enormous 4G TDD spectrum allocations In the US, the main TDD spectrum holder is testing TDD-LTE Public safety or US government network sharing with utilities proposed -> LTE as the defined technology of choice for public safety
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Description (source: Wikipedia) Cloud computing describes a new consumption, and delivery model for IT services based on the Internet, and it typically involves over-the- Internet provision of dynamically scalable and often virtualized resources Possible Utility Services offered in the ‘Cloud’ Meter Data Management Device (M2M) Management Platform Field Force Management Rating and Billing Services Electric Vehicle Service Provider (IT backend systems for load mgmt, authentication, subscription-, media delivery and eMobility services) Rural Utilities – Opportunity with ‘Cloud’ Services?
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AMI Connect the Smart Meters directly via a Telco owned wireless network Electric Vehicles Connect the Utility owned public EV charging stations via a wireless or wireline broadband Telco owned network o For services such as authentication, price signals, battery/network load status information exchange, media delivery WAN Backhaul Use the Telco cellular network for AMI Mesh Wide Area Network backhaul Areas of Possible Collaboration between a Utility and a Telco – 1/3
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Optical Transport Utility with own fiber can lease out capacity to a Telco. o Utilities in the US and other markets are doing this already Managed Services A Telco could offer and operate the Utility communications network as a managed service o E.g. as announced by Verizon Business with National Grid early November 2010 o Telco offers AMI (excl. the meter) as an end-to-end service for (communication, MDM and rating/billing part) A Telco appears as an EV public charging infrastructure service provider o Manages information exchange between applications, authentication- and subscription management, media delivery, rating/billing and security services Areas of Possible Collaboration between a Utility and a Telco – 2/3
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Wireless Spectrum Wireless spectrum lease agreements could be done between a Telco and a Utility, allowing the Utility to build and operate their own dedicated network, with an option to open that network (upon FCC approval) for Telco roaming services o Could be attractive for broadband LTE services in rural America Home Gateway Connectivity Telco offering a broadband connection to a home gateway; The home gateway connects to in-home displays and appliances via WiFi, Zigbee or to Smart Phones / Tables Areas of Possible Collaboration between a Utility and a Telco – 3/3
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It’s Not an Easy Decision… 1/2 The business model is always unique to a specific Utility Evaluate and define what you consider to be the ‘core’ assets of your business What aspects of your network / operations can you outsource? How are you going to pay for the assets / services – CAPEX vs. OPEX model Define clear Service Level Agreements (SLAs) if you partner Evaluate the implications of your choices on requirements such as bandwidth, security, availability and ownership Build a long-term network vision and make strategic decisions where it makes sense to partner o Are you the best positioned player to deliver an EV charging station service ecosystem? What does your chosen strategy mean to your customers? How will that help you to compete in a (future) de-regulated market?
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It’s Not an Easy Decision…2/2 Compare options for building your own network vs. using a public communication network Understand the efforts needed to integrate new communication technologies with your existing systems Include the new technology in your business process management system to measure performance and data quality Define and implement a solid cyber security policy; Work with your partner in case you outsource certain network aspects Understand the technical solution aspects from various partners and understand the maturity of those technologies and relevance with current and future standards and industry support
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Contact Information Nokia Siemens Networks 6000 Connection Drive Irving, TX 75039 Christoph Inauen Director, Business Development +1 214-616-5348 christoph.inauen@nsn.com
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