1 © Nokia 2016

Nokia Smart HomeJarno Halme24.05.2017

2 © Nokia 2016

The Smart Home opportunity

>150Msmart homes worldwide by 2020

39B$smart home revenues by 2020, at 24% CAGR

Source: ABI Research Dec-15, Nokia analysis

10-20€current monthly ARPU

3 © Nokia 2016

Outline

Fixed and wireless connectivity as cornerstones of a Smart Home

Intelligent technology for easy adoption

Homes as extension to society

4 © 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 sustainableenvironments.

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

5 © Nokia 2016

IoT: From devices to applications

From device…

…to application

Enablers• Connectivity• Management • Security• Openness

6 © Nokia 2016

• Low willingness to pay by end-customer (DIY)

• Potential as upsell with home security

• High willingness to pay by end-customer

• Requires partnership with security provider

• Savings for consumer• Driven by energy

provider (less truck rolls)

• Home comfort for sick and elderly

• Significant savings for healthcare

• Driven by health insurance & health sector

Four use cases, four distinct business models

Home security

Home automation

Smart energy

Digital health

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Fixed or mobile? The answer is both fixed AND mobile

Fixedensures high bandwidth for residential and business users...

Mobileensures connectivity while on the move, IoT

… and efficient transport of mobile traffic

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A complete ecosystem to build the right partnerships

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

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Zoom in on the smart home gateway

Wi-Fi+

ZigBee+

Z-Wave+

BLE (3Q17)

87%of all smart devices shipped in 2021

Source: ABI Research, Home Automation Systems, October 2016.Maximizing the smart devices ecosystem

300 Mb/s1700 Mb/s802.11b/g/n 2x2MIMO

802.11ac 4x4 MIMO

GigE uplink

10 © Nokia 2016

Information management, local analytics, clouds

Fixed Mobile

Fibre

Wire

less

Intelligence Big Data

Sam

eso

ftwar

e

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End to end solution – fit for need, scale for diversity

Business Vision and NeedsConnectedPublic Safety

ConnectedDigital Health

ConnectedMobility

ConnectedUtilities

ConnectedSmart Cities

Device Ecosystem

IoT Platforms

Connectivity

Applications

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Vertical Point Solutions are expensive• High Cost for integration• Duplication of effort • Underutilized resources • No Economies of Scale

Horizontal approach drives down cost • Adopt Best Practices• Streamline Operations & Reduce Costs• Mix and Match devices and Applications

A horizontal platform approach to enable mass adoption

IoT Platform (IMPACT)

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IoT Platforms

Connectivity Management

Device Management

Data Management

Application Developmentand Enablement

14 © Nokia 2016

The Smart Home challenge

The network provideropportunity

Broadband Residential Gatewaywith integrated Smart Home hub

Single appMultiple apps – one per hub

Multiple hubs – one per vendor

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

15 © Nokia 2016

Smart Home mobile app

Manage all your devices (add/change)

Switch appliances

on/off

Create if-this-then-that scenarios

Visualize your power

consumption

Allocate devices to

rooms

Nokia app

Telco branded

app

Telco developed

app

16 © Nokia 2016

The smart home enables aging in place

• Well-designed devices• Engaging family healthcare and smart home apps• Customized user-specific analytics

• Estimated $20B growth by the year 2018; incremental to the estimated current market of $77B

• 16% of world population will be over 65 years old by 2050

• The individual, their family and caregivers can all track the individual’s wellness and are informed of potential issues.

• Provides monitoring while respecting the individual’s privacy and autonomy.The elderly and infirm stay safe and secure in their own home.

© 2017 Nokia16

17 © Nokia 2016

Smart homes integrated to society

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On-demand home service“Uber-izing” the smart home: Crowd as a service for the home devices

Helpers’ crowd platform

Helpers provide unique service moments

Install the service on time

Solve your problems immediately

Explain how products work Find the perfect match for customer and helper

19 © Nokia 2016

Ecosystem from open innovation to volume sales

Connectivity

Development environment

Collaboration

Market entry

20 © Nokia 2016

Connectivity: broadband, mobility, volumes of devices, technologies. Intelligence in the edge.

User centric development, complexity hidden.

Understandable business model.

MyData as part of the society. Leverage ecosystem and crowdsourcing.

Smart HomePath to success