1. Telefonica I+D Our vision of a joint effort Fernando Fournon (President. Telefónica I+D) May 2011

2. Telefonica I+D 1 Telefonica A leading Telco operator, focused on innovation

3. Telefonica I+D Telefónica investing 4.814 Mill€ in Tech Innovation (2010)  797 Mill in R&D  94 Mill in Telefónica I+D (2011)  Innovating in 25 countries Telefónica activities on Innovation Among the 40 biggest companies in Europe in R&D investment Telefónica I+D has a staff of scientists, technologists and designers, from 18 nationalities. A network of innovation centres: 5 centres in Spain: Madrid, Barcelona, Valladolid, Granada and Huesca Creating a new centre in Brazil funded by TID & TeleSP Creating an innovation hub in UK formed by TID - O2 UK - Jajah An International company A highly qualified staff 2

4. Telefonica I+D Our research areas Improving our network Harnessing our company assets Creating differential services UltraBroadband Mobile Broadband Security IT Evolution M2M Service layer architecture User modelling Cloud computing & IT Future communications Video services eHealth 3

5. Telefonica I+D 2 A key tool to improve European competitiveness The PPP

6. Telefonica I+D 5 The PPP is the opportunity for Europe  ICT is an essential tool to achieve it  Key element to improve productivity  We need to do it in collaboration  standards and accepted common models Improve European Competitiveness  More involvement from industry  Projects should go beyond “preparing next project”  More responsibility and leadership. The EC has to be our allied, not only our supervisor Reinvent the way research is done  Significant critical mass. More than 150 organizations  A number of usage cases, close to the businesses.  It consists not only of ICT work. Contact with users Change the critical mass  The core platform will be applicable not only to the “use cases” but become the “core” of future developments of an open commercialization environment  This is a long term effort. But…we should go beyond 5

7. Telefonica I+D 3 Telefónica´ s participatio n Our involvement and plans

8. Telefonica I+D 7 Why Telefonica?  Focus on the core platform.  Implement new business models  Expand our business perspectives  Talk to our future customers  Change the way we do business  We address developers and SMEs not just final customers  Use the use cases to expand and better understand our activities in usage areas  Smart City, Energy, Content, Logistics As a network operator we need to be a key actor  New services will be developed and implemented in a new value chain We are changing our business model Communications provider Infrastructure vendors Middleware vendors Business Application vendors Service providers

9. Telefonica I+D Our involvement. Main project of the PPP, led by Telefonica Telefonica leads the Core Platform project: Fi-Ware Development of an Open Application Platform for the creation and delivery of services. Emphasis on QoS and security 3 IM: Concept for a virtual "Transport and Mobility Internet", a platform for information and services 2 Finseny: Shape the Future Internet ICT platform(s) for European Smart Energy 1 Outsmart: Development of five innovation eco-systems for the creation of a large variety of pilot services in urban areas. 45 Ficontent: Specify a comprehensive set of experimentations based on the content use case scenarios Infinity: Identify, analyse and catalogue emerging advanced experimental infrastructures 8

10. Telefonica I+D 9 Looking to the future It will be a big effort but together we can !  Telefonica is looking for next phases  In line with our strategy  We need to leverage on other companies effort  We cannot do it alone: Cooperation and competition  We shall use open calls to involve others  Users have to be involved  After all they will “buy” the final results  Quality is essential.  We do not want a second version of something which is already on the market. Not just “me too”  The prize will be finding new ways of using the information  Not only to Operators but to the whole society This effort has to be continued  Test beds are essential  Spain wants to play a key role  The important test would be user acceptance  Go beyond trials and deliver good quality in time! Going beyond

11. Telefonica I+D © 2010 Telefónica Investigación y Desarrollo