Rural Smart Grid OpportunityChristoph InauenDirector, Business DevelopmentNokia Siemens Networks

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

Smart Grid Vision

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

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

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

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?

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

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 providero 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

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

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?

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

Contact InformationNokia Siemens Networks6000 Connection DriveIrving, TX 75039

Christoph InauenDirector, Business Development+1 214-616-5348christoph.inauen@nsn.com