FTTH Smart Guide

Edition 1
Smart Cities Committee
Revision date: 06/02/2012
Disclaimer
This document is a work in progress.
The content is intended as the basis for discussion and does not necessarily represent the official position of
the FTTH Council Europe. Some of the content may reflect the position of members of the FTTH Council
Europe and our partners.
This document is provided on a professional best effort basis. The FTTH Council Europe makes no
guarantee of fitness for a particular purpose. No liability is accepted by the FTTH Council Europe for any
consequential loss or damage whatsoever, however caused.
All trademarks are acknowledged as being the property of their respective owners.
For further information, feedback and input please contact Michaela Fischer, Project Assistant, FTTH
Council Europe, at [email protected].

© FTTH Council Europe 2013

Wettelijk Depot: D/2013/12.345/2
This document is licensed under a Creative Commons License 3.0 Attribution, Non-commercial, No
Derivatives. You are free to copy and share this document for personal use, but you should not alter,
transform or build on this work, or use it for commercial purposes.

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Contents

1 Why this guide? ......................................................................................................................................... 4

2 Foreword .................................................................................................................................................... 5
2.1 Acknowledgements .......................................................................................................................... 7
3 Concept ...................................................................................................................................................... 8
4 Definition of a Smart City ......................................................................................................................... 10
4.1 Scope of a Smart City .................................................................................................................... 10
5 Vision of a Smart City .............................................................................................................................. 11
6 Smart Society ........................................................................................................................................... 12
7 Stakeholders of a Smart City ................................................................................................................... 13
7.1 Residents ....................................................................................................................................... 13
7.2 Municipalities .................................................................................................................................. 13
7.3 Utilities ............................................................................................................................................ 13
7.4 Corporations ................................................................................................................................... 14
8 Smart Grid ................................................................................................................................................ 15
8.1 What is a SMART Grid? ................................................................................................................. 15
8.2 Where is the Value? ....................................................................................................................... 16
8.3 Split Incentive Problem ................................................................................................................... 17
8.4 Steps how to develop a SMART Grid ............................................................................................ 17
8.5 Relation to FTTH ............................................................................................................................ 18
9 Smart Home ............................................................................................................................................. 19
9.1 What is a Smart Home? ................................................................................................................. 19
9.2 Energy Management ...................................................................................................................... 20
9.3 Multi-media ..................................................................................................................................... 20
9.4 Control Systems ............................................................................................................................. 20
9.5 Security........................................................................................................................................... 20
9.6 What is the impact? ........................................................................................................................ 21
9.7 What are the implications? ............................................................................................................. 22
9.8 How to develop a Smart Home ...................................................................................................... 23
9.9 Relationship to FTTH ..................................................................................................................... 23
10 Smart City Roadmap ................................................................................................................................ 25
10.1 Smart City - key success factors .................................................................................................... 26
10.1.1 Strategic initiatives ................................................................................................................. 27
11 Benefits of a Smart City for Key Stakeholders ......................................................................................... 28
11.1 Benefits for the municipality ........................................................................................................... 28
11.2 Benefits for Power Utilities ............................................................................................................. 28
11.3 Benefits for the citizens .................................................................................................................. 28
11.4 Public Transportation ..................................................................................................................... 29
12 Overview of the Smart Cities in Europe ................................................................................................... 30
12.1 List of Smart Cities ......................................................................................................................... 30
12.2 Selected market insights ................................................................................................................ 32
12.2.1 Netherlands ........................................................................................................................... 32
12.2.2 Switzerland ............................................................................................................................ 33
13 Final remarks ........................................................................................................................................... 34
14 Glossary ................................................................................................................................................... 35

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1 Why this guide?
Climate change, changes in technology and within society have all had an impact on modern cities and on
those communities that aspire to the modern ideal.

Today’s trends are pushing cities towards smartness. This is a development FTTH Council Europe wants to
promote.

During discussions, the Business Committee of the FTTH Council decided on the idea of writing a Smart City
Guide which would equal the very successful FTTH Guide. It did not take long before an enthusiastic team
was formed who were willing to put the idea into practice.

With the name Smart City Guide in mind, the team decided to call themselves “Smarties”.

While many topics relating to Smart Cities are hazy and still evolving and with a large number of unrealized
expectations, a common view held by the members of the FTTH Council is:

A Smart City is based on a strong, reliable communication network which is the foundation for applications and
services.

For this reason the Council decided it was time to establish a new group: The Smart City Group.

The version which you are viewing is the first step. The Guide will need to be continuously updated.

Politicians, managers of utilities and telecom service providers can all benefit from the guidelines and the
knowledge provided in this Guide.

We wish you interesting reading and look forward to hearing your views – perhaps when we meet at one of
our conferences.

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2 Foreword
Welcome to the first edition of Smarties - Smart City Guide

The regional competitive race between cities started long ago and is now entering a new dimension. “Smart
City” has become one of the most used buzzwords in this context.

Low carbon use and high quality of life are the two main pillars of a Smart City. Put in another way, they are
convenience and the clever use of resources.

Since cities are dense places with most people living in very concentrated areas; finding solutions which suit
the environment will be the biggest challenge.

In order to preserve the environment in which we live, being as wasteful as we are now with our resources is
not an option and thanks to new technologies it is now possible to avoid the mistakes we made during
industrialization. Hopefully we can incorporate new technologies into using our resources more wisely. Most
pieces of the puzzle are there, we only need to put them together in a smart way.

In our world, Smart Cities create substantial differences between developed countries, newly industrialized
countries and developing countries. In this race, some up and coming countries will overtake developed
countries by building new and modern infrastructures from scratch.

Intelligent communities, Smart Grids, Smart Cities all go together to become an integral part of each other.
But the question we should be asking ourselves is: what do they have in common? - Smartness is based on
the exchange of data and by continuously harnessing this data, making sense out of it and triggering actions,
a modern city can become efficient.

In today’s communities various elements, such as transportation, energy security systems and similar,
operate in isolation as in silos with no connectivity. These areas may not be interlinked but the age of
isolated items and individual systems has expired.

A system or a society can only become intelligent if several sub-systems and human beings are interlinked
and important information is transported in real-time between the systems and the individuals.

In tomorrow’s reality, connectivity between devices will be the key; the basis therefore is a reliable and highly
performing data network.

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Every FTTH project will provide fast Internet connections and a broad selection of entertainment
opportunities; in addition it will also taking mankind one step closer to smartness.

This is why the FTTH Council Europe is engaged in promoting Fibre Networks.

Paolo Sebben

Chair of the Smart Group “Smarties”

FTTH Council Europe

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2.1 Acknowledgements
The Smart City Guide has been produced by the FTTH Council Europe and draws heavily on the expertise
of its member organisations. We thank the following individuals for their time, effort and contributions, and
acknowledge their original material and graphics, which have been included in this guide:

First edition

Paolo Sebben, Effectas (Chair of the Smart Group); Christian Bell, WISI Communications GmbH & Co;
Frank Beyrodt, ECI Telecom GmbH; James Crowfoot, Senko; Ulrich Eska, ZyXEL; Wolfgang Fischer,
Cisco; Klaus Gosger, BKtel; Albert Grooten, Grooten FTTH Consultancy; Agnes Huet, Comptoir des
Signaux; Philipp Inderbitzin, Effectas; Gerhard Kafka, DataConsult; Wolfgang Korosec, Sankt Galler
Stadtwerke; Matthias Nass, ECI Telecom GmbH; Ana Pesovic, Alcatel-Lucent; Matthias Pohler, TKI-
Chemnitz; Markus Schanz, ZyXEL.

The Smart City Guide is an initiative of the Smart Group of the FTTH Council Europe.

Contributions were managed by Natascha Weinstabl, Project Manager, FTTH Council Europe and
Michaela Fischer, Project Assistant, FTTH Council Europe.

First edition was edited by Eileen Connolly Bull, Connolly Communication AB.

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3 Concept
A SMART City is based on the idea of an intelligent organism.
The most important elements of an organism are the sensory organs, the brain and the nervous system
which is responsible for the connections within the body. Sensory organs process information and the
nervous system sends signals to the brain where they are evaluated and the information stored.

The brain then sends commands to the body’s extremities and it is through this connected teamwork we are
able to master everyday tasks and to continuously learn new things.

Our exceptionally fast nervous system immediately sends information in all directions within our body.
Without this clever express system, our species would have disappeared from earth long ago.

Our exceptionally fast nervous system is comparable to a comprehensive FTTH network in a

Smart City.
A slow nervous system in an organism limits its ability to learn which may have adverse effects.

Imagine putting your hand into a fire and your nervous system fails or simply delays to forward that message
to the brain.

Then imagine the command “withdraw hand” does not lead to a reflexive action because of slow
communication.

And lastly, imagine that parts of the body are not connected through the nervous system but react
autonomically.

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Unfortunately, that is how our cities work today with various disciplines being separated from one another as
in silos.

A Smart City is like a living organism that can adapt to changing situations.

A city, which increases its level of smartness daily, has a FTTH nervous system that connects all elements
and disseminates information bi-directionally at the speed of light.

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4 Definition of a Smart City
The terminology “Smart City” is inconsistently applied as the concept has, so far, not been precisely defined.
In other words, there is no standard definition of a “Smart City”. Hence the various uses of this term.

Many organisations have created their own catalogues of criteria to define whether a city is Smart or not.
Those criteria typically can include all or some of the terms listed below:

- Smart energy production and conservation

- Smart mobility
- Smart economy
- Smart living
- ICT economics
- Smart environment
- Smart governance
- Standard of living
- Smart society
If there is no real standard by which cities can be judged to be really smart or otherwise how can this topic
be dealt with?

The FTTH Council Smart City Group has agreed that for a city to be labelled Smart, it must have
implemented all of the three initiatives mentioned below:

- a strong and reliable communication network, preferably based on fibre optics (FTTH)

- government involvement to provide added value to the citizens

- initiatives to promote the use of renewable energy

4.1 Scope of a Smart City

After intense discussion, the “Smarties” team agreed on the following description of a Smart City:

A Smart City will increase efficiency, productivity, ecological awareness; it will reduce pollution and
improve quality of life in a world of increasing urban complexity.

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5 Vision of a Smart City
More and more people are moving into the cities. To cope with this large-scale urbanization and to make use
all types of resources efficiently, new approaches need to be found to manage these expanding cities.

Since most cities in Europe are already built the challenge is to ‘transform’ traditionally grown cities into
Smart Cities.

In the future, a city may be viewed as being a living organism with which we, its inhabitants, can interact. The
city can provide updates about traffic situations; it can help us to find parking spaces; it will manage and
inform on the status of electrical power, light and pollution.

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6 Smart Society
An intelligent or Smart Society will optimize its resources by using ICT in an efficient way, thus improving its
knowledge bank. It will also take better care of natural resources. Travel times will be reduced thanks to
telecommunications and collaboration technologies.

The Smart Society will also be challenged by new ways of production and distribution similar to that
experienced by the entertainment industry. An example of this is ITunes.

In addition, production and logistical industries will face demands to find new ways of production. 3D Printing
has the potential to start a revolution in production and logistics. Imagine using the ITunes concept which
allows you the opportunity of downloading the code for several articles and then produce them at home
through the use of your 3D Printer.

These are just a few examples of how we should be thinking outside the box; we should be open to new
opportunities made available by the future Smart City.

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7 Stakeholders of a Smart City
Creating a Smart City is not a ‘one-man show’; many parties with various views, opinions and not least
interests need to be involved.
Societies face exploding energy costs, globalization, more cars and growing traffic congestion, as well as the
need to find and implement efficient processes; they experience empty public purses, increasing security
issues and a growing concentration on greener environments. These are just a few areas that require major
structural investments in cities and communities around the globe. If these investments are planned and
implemented without being an integral part of an overarching framework, success and ROI are limited.
However, there is one common denominator to all these necessary investments and addressing it can have
significant impact on modern urban challenges: the installation of a high-speed broadband network
infrastructure based on fibre technology.

7.1 Residents
City residents are investing in Smart Homes by installing sensors and networks throughout their properties.
This facilitates the control and automation of several systems, such as a heating system, a video
surveillance system, illumination, plant and garden irrigation, and so on. To take full advantage of these
investments, a remote control process is required. The Smart Home needs to be connected to the internet
through a FTTH network.

7.2 Municipalities
City councils everywhere are facing and having to cope with financial problems. Since many of their
decisions are dependent on election results, it is often hard for them to devise and implement long-term
strategies. On occasion, today’s generation pays for the mistakes made by the previous generation. In
addition healthy competition exists to attract businesses, which in turn provide tax income as well as jobs to
the city. To incorporate long-term strategical changes and to be attractive to businesses, a city must have a
high-speed broadband network fibre infrastructure in place. Such a broadband network can support other
needs facing municipalities as well as encouraging more efficient work processes and more effective video
surveillance of public areas. Municipalities are in a coveted position; within their own geographical
boundaries they own all right of ways to lay fibre optic cables and ducts.

7.3 Utilities
Energy providers must cope with smaller distribution power plants (privately-owned renewable power plants)
and the need to optimise OPEX by closely following end user demands. They can also benefit from surplus
energy being created by their customers. Utility transportation service provider’s face challenges relating to
highly complex schedules and tariffs, cashless e-tickets as well as the need to react faster to delays or
unforeseeable demands or even to new cooperation’s with other utilities. Passengers expect real time

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information about bus or train services – when is the next one due to arrive? are there any delays? A high-
speed fibre broadband network is crucial in providing the level of service expected by customers today.

7.4 Corporations
Today’s global business world demands a strong, reliable communications network to support all business
applications. Financial losses and damages caused by network connection problems can rapidly mount up.
The availability today of a high-speed, high quality, fibre broadband network is an essential pre-condition in
establishing any business in a specific city or region.

The major benefits in connecting all distributed networks through a Smart Grid include reducing complexity,
offering high security standards as well as an efficient use of infrastructure.

In other words, today’s progress doesn’t mean more complexity, rather smarter connectivity through a
FTTH/B network towards Smart Grid and Smart Homes.

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8 Smart Grid
8.1 What is a SMART Grid?
A Google search on 22 January 2013 for ‘Smart Grid Definition’ leads to 46 000 hits in 0.25 seconds. The
number of definitions for a ‘Smart Grid’ seems to be equal.

We are not attempting to add a new definition; as FTTH Council Europe we rely on European standards. The
definition of the ‘Smart Grid European Technology Platform’ is accurate in our view: “...electricity networks
that can intelligently integrate the actions of all the users connected to it – generators, consumers and those
that do both, in order to efficiently deliver sustainable economic and secure electricity supply”.

Production of electricity, which is dependent on limited and polluting energies, is shifting towards renewable
energies. This fact is going to change the world of the utility providers. In the past, electric grids needed to
transport electricity from a few, very powerful, centrally-located production sites (e.g. nuclear power plants)
to the customer. Tomorrow, these grids should be able to transport electricity from many, distributed
production sites (e.g. wind mills, photovoltaic systems) to the individual customer. To make the situation
even more complicated, customers (consumers) will become producers (prosumers) at the same time (e.g.
through photovoltaic installed on the roof). As a consequence, electricity needs to be transported both way’s,
to as well as from the customer. This is a new phenomenon for the electric grid.

Distributed production systems and weather dependent, volatile power output increases the need to manage
and control the grids – they need to be ‘Smart’.

A Smart Grid is based on a communication network of electricity users, production systems, storage systems
and operation systems within the distribution network. Electrical networks today are not designed for future
energy loads. Thus, reducing peak loads and shifting loads from high to low phases, reduces the need to
physically upgrade electric grids which in turn helps to avoid huge investments.

Utility providers will be able to forecast electricity demands more precisely and reduce expensive purchasing
peak loads.

These measures are fundamentally vital to any developed economy: the supply of economic and secure
electricity is a key success factor.

More and more people are against nuclear power generation; however a growing number of people are
unhappy with new wind plants and photovoltaic fields, especially if they are located in their neighbourhood.
Whatever energy policy chosen by the people or the politicians, it is paramount that the management, supply
and demand of power (i.e. not only electricity, but also gas, heat, etc) be more intelligent – smart. This is the
only way to distribute goods that are becoming scarcer but facing growing demand, in a fair and economic
manner. In addition the Smart Grid brings to the physical distribution networks (copper cables, gas tubes) a
‘smartness’ incorporating Information and Communication Technology (ICT).

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It is clear that local circumstances for a Smart Grid vary considerably. Some regions experience frequent
power outages, while others live with electricity networks that are overdesigned for today thus decreasing the
need for urgent adaptation of more decentralized energy production sites and consumers.

However, in the long view, the smartness of the grid seems to be inevitable. And along with smartness and
ICT some features of telecommunication networks are also highlighted: reliability, jitter, delay, speed.
Needless to say that of all possible networks, a fibre optic network best covers all these needs: FTTH.

8.2 Where is the Value?

Values can be found in a variety of areas. For the utility providers, implementing smartness in the grid helps
to avoid physical adjustments of the grid: manual meter reading, automatic processes (moving customers),
switching off today’s tariff control systems are all areas that will benefit immediately. Moreover, equally vital
to these companies is the opportunity that allows them to adjust the grid making it possible for electricity to
be transported back and forth.

For the consumers, the consequences will also be major. During periods when energy prices increase and
100% renewable energy options are not available around the clock, demand management is necessary to
avoid costs skyrocketing. With these factors in mind there are three questions which face end users:

- How fast will energy prices go up?

- How high will energy prices go?

- How ‘smart’, i.e. detached from manual interference by end users, can energy saving become?

The faster prices rise, the higher they go; the ‘smarter’ energy management needs to be and the increasing
number of people who will save energy. Many utility providers need to invest in their electrical infrastructures;
to adapt them to provide a more varied energy supply. The network can be upgraded by building new and
stronger transmission lines and/or by making them smart. In some cases both will need to be done. However
in most situations, upgrading the ‘smartness’ will be more cost efficient than building new lines. Vorarlberger
Illwerke AG, an Austrian utility provider running a smart grid in a specified region (Biosphärenpark Grosses
Walsertal) created the saying: “Bytes statt Bagger”- (‘Bytes instead of Excavate’).

On a regional level, a Smart Grid (or Micro Grid, as it can also be called) offers the possibility to become
independent from external energy production. This is a very appealing political goal that is being followed
Vorarlberg and other regions:
(http://www.vorarlberg.at/vorarlberg/wasser_energie/energie/energie/weitereinformationen/energiezukunftvor
arlberg/vorarlbergerlandtagbeschl.html).

Micro grids are already making an appearance. In a closed area, i.e. an industrial site, energy is transported
from producer to consumer without interaction of a utility provider. If company A does not need the electricity
that is being produced on its roof by a photovoltaic system, it can sell it on to its neighbour, company B. Such
an initiative exists in Switzerland: (http://www.energienetz-gsg.ch).

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Micro grids also require information to be transported safely and reliably. This is an area where fibres can be
used with excellent results. An example of such a grid, based on fibres, can be found under
www.peerenergycloud.de. Smart Homes, a stable communication infrastructure, photovoltaic and cloud
services are essential elements of this micro grid.

8.3 Split Incentive Problem

The ‘Impact Assessment’ of the Bites to Energy Lab of the Swiss Federal Institute of Technology describes
how an 80% coverage rollout of smart meters in Switzerland would have a negative financial impact on utility
providers, both as a network provider as well as an energy producer. However, the end users would benefit
by lower electricity bills. In total, benefits exceed losses for Switzerland when a full rollout is executed. The
‘split incentive’ shows that the utility providers would have to make investments whilst losing some margin,
and the end users do not have to invest, but would benefit.

Within the industry it is generally agreed that only an adjustment of the regulatory framework, which would
allow the utility providers to pass on additional costs to the end users, would entice them – the providers -
into undertaking a rollout.

8.4 Steps how to develop a SMART Grid

There is no ‘golden roadmap’ in developing a Smart Grid. Many utility providers start by rolling out Smart
Meters to the customers making it possible for them to read meter data more frequently. Sometimes, they
are also keen to manage the demand side, by controlling electric users (e.g. washing machine).

The more meters that are connected and the more data being transported over the net, the more critical a
stable communication solution becomes. Glass fibre is the first choice for this. However, communication
transport costs are often too high, as the meter department within the utility providers’ organization has to
pay to the ‘fibre-owning department’ for the higher costs, which are purely regulatory-driven. This is
unfortunate as it hinders the roll out of the best possible solution.

In addition to adjustments on the meter side, systems also need to be adapted. The amount of data needing
management is exploding. Existing systems can cope with this in the majority of cases, but processes are
also an issue.

To commercialise investments in a Smart Grid, putting the user in command will be a good option with the
creation of attractive new ‘power products’. The user is not interested in the actual fibre when discussing
FTTH, their interest lies in content and speed; similarly the user is not interested in the Smart Grid
Technology itself, but what it provides. The majority of people will become “power prosumers” in the future.
Without even realising it our car batteries will store and release energy during the night and, if needed,
photovoltaic systems will be feeding our own households or send excess power to the utility providers at
other times. The impact on the end user can be maximized when not only electricity, but all kinds of power
are managed smart; including heat and gas.

In the future, many of us will be living in “Smart Homes”. This is the last and most important link between the

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Smart Grid and the people living in the house. The more ‘power users’ in the household connected to the
utility provider, the more detailed the power can be managed. At the same time, the amount of data and the
need to have this data transported securely, speedily and reliably is growing.

8.5 Relation to FTTH

There are multiple ways to transport data between the components of a Smart Grid. In many cases, different
infrastructures are used at the same time: Power Line Communication (PLC), General Packed Radio Service
(GPRS) and fibre networks. Traditionally, utility providers are connecting their transformer station through
fibre optic cables. Between transformer station and buildings, PLC or GPRS are used. The missing fibre
optic network between transformer station and consumers is limiting the capabilities of the grid in many
cases; the providers are only implementing “remote meter reading”. Usually PLC or GPRS are suitable for
that type of application.

However, once the need for bi-directional control and frequency of intervention increases, the only physical
solution capable of delivering security, reliability and speed on demand, is a fibre network. If a FTTH network
is already in place, it is sensible to use one of the fibres for the Smart Grid allowing the utility provider to
save transmission costs to GPRS providers.

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9 Smart Home
9.1 What is a Smart Home?
A Smart Home is a house that has advanced, automatic or remotely operated control systems to manage the
living environment; these include temperature gauge, lighting, multi-media, security, window and door
operations as well as numerous other functions.

Smart Homes, which can also be referred to as Intelligent Buildings, use computer systems, sensors and
controls to monitor many aspects of daily living and are becoming increasingly sophisticated.

Recently introduced into the world of Smart Homes is the term “domotics”, from the Latin word domus
meaning home; it literally means home robotics and encompasses all areas of Smart Home technology.

There are four major areas that function within a Smart Home: Energy Management, Multi-Media, Control
Systems and Security. It has been said that remote health care and medical diagnosis could be considered a
fifth function but in reality this potentially life changing service is delivered using a combination of features
from the other four.

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9.2 Energy Management
Whether monitoring energy usage with meters or making adjustments to the central heating before arriving
home, energy management has extended its reach into new, innovative concepts and now incorporates
areas such as Smart Grid connection, photovoltaic (PV) and micro-generation of
electricity, combined heat and power systems (CHP), low voltage DC networks, grid
independence and power management including time shifting energy usage. One of
the biggest challenges for future energy management is storage. Since energy is not
always produced when it is needed, power storage and its related management systems will increasingly
become part of the home energy management system.

9.3 Multi-media
Primarily considered to be the means with which to connect up to the Internet,
multi-media incorporates all forms of communication from traditional telephone to
digital technologies such as data streaming, VoIP, video-on-demand (VOD) and
gaming. Ranging from low to very high speed data requirements, internet
connection functions not only act as a link to communications but also as a remote
access route. Data streaming includes services such as video conferencing, which
is increasingly being used by the health industry for remote medical consultations and requires symmetrical,
high speed bandwidth. Also on the increase are security management solutions. Possibly, ‘best effort’
internet connections with limited security features will need to be adapted to assure secure transportation of
sensitive data.

9.4 Control Systems

Generally considered part of the automated building, coded signals are sent through a home's wiring to
switches and outlets that are programmed to operate appliances and electronic
devices in every part of the house. These include automated temperature, lighting
and security systems, as well as interacting with other essential process functions
such as water management. A good example is monitoring the harvesting of
rainwater and the control and use of grey water from various sources that
reduces the use of clean drinking water. Smart Home systems might even take
care of feeding the cat and watering the plants. Recently, control systems have been using wireless
connectivity to reduce cabling within a building.

9.5 Security
When mentioning security most people think of alarm systems but there are many
ways in which the use of automated security systems can benefit the living
environment. Remote door entry systems, CCTV cameras, baby monitors, gate
control, flood and fire warnings all work towards providing improved living

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environments. Devices such as panic alarms and motion sensors can detect if someone has not moved for a
period of time and therefore may require medical assistance.

9.6 What is the impact?

Unless considered early in the planning stage, Smart Homes rarely happen instantly, tending to evolve and
grow over time. Occasionally they grow quickly due to external circumstances; for example, a member of a
household may require monitoring due to ill health or a person may change their work location – from office
to home, which necessitates an upgrade of security measures. Or perhaps a property is undergoing major
renovation providing the opportunity to include the latest gadgets. Whatever the reason, introducing Smart
Home technology can mean the difference in someone staying in his or her present home or having to move.

Automated Homes can be more efficient and use less energy. This is not only good for the environment but
also reduces running costs. Heating systems that take into consideration the latest and expected weather
conditions mean less wasted energy; lights are switched on only when needed; individual rooms set to
required temperatures, not just one thermostat for the entire house.

With a Smart Home linked to the Smart Grid, utility providers would be able to control energy usage during
peak load periods, remotely switching off devices such as immersion heaters and washing machines for
short periods of time if grid load capacity is nearing maximum.

Mains energy and locally generated energy from wind, PV or CHP systems could be stored in battery banks
and used during peak periods in what is called ‘time shifting’ energy usage. This would save money and at
the same time reduce peak loads on the grid.

The ability to link products to the Internet brings a whole new range of opportunities to create consumer
electronics that not only react to an environment but can also collate information on how people live.

Smart Homes will bring added value not only to the people living within them but also to companies
supplying them with goods and services. For example, the frequently quoted supply of remote health
services will not only benefit the consumer and the health service provider but will also present opportunities
for all stakeholders, including equipment suppliers, product manufacturers, pharmaceutical companies,
ISP’s, virtual as well as physical service industries etc, offering them the opportunity to create and develop
new ways to assist and improve home living for the sick, infirm and elderly.

Now add a small portion of entrepreneurial creativity and it is possible for the Smart Home to become a
catalyst for a range of entirely new business models involving both existing as well as yet-to-be considered
enterprises.

Quite obviously the building industry can benefit from property upgrades with data cable and electrical
installation companies getting an additional boost but also self-install and DIY solutions providers may also
flourish.

Can we look forward to a time when education, governance and policy making are delivered to the people
alongside the day-to-day stream of TV and media? Perhaps the mix of home working, e-commerce, on-line

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gaming, social media with real time, face-to-face video interaction, dating agencies, reality TV and auctions
sites will fundamentally change the way in which we interact with each other.

9.7 What are the implications?

How will Smart Homes affect the people living in them and who will really benefit?

Home automation can be especially useful for elderly and disabled people wishing to maintain their
independence and safety. This in turn will reduce demands on health service resources and probably offer
the patient a better quality of life.

Home working can reduce travel and the carbon footprint. Cloud computing will have a massive effect on
how people are able to work however; a high-speed connection would be essential.

Obvious examples of home security, such as intruder and fire alarms, hide a whole range of other benefits.
These include peace of mind from remote CCTV monitoring incorporating the option that allows for settings
to be adjusted remotely when the home owner is away from their property.

Automated homes are potently a hot-bed of sensors offering multiple uses. Security alarm systems have
door, window and infrared movement sensors that could be connected to the homes’ heating and lighting
systems so that rooms, where windows or doors have been left open, have the heating levels reduced to
avoid energy waste. Lights could be switched off in rooms that unoccupied.

Technologies found in video gaming systems such as the X-box Kinect are already able to recognise people
moving and stationary in the home making it possible to build systems that actively react to the homeowners
needs. Smart Homes, linked to the Internet, can operate as part of the smart town/city concept with local
services, energy planning, information and entertainment all playing their part.

Social and political governance could benefit from being able to speak directly to the constituents with the
added bonus of online voting from home. Maybe we could see the rise of the online Community voice.

It is easy to get swept up in all of the benefits that Smart Homes could bring but there are some concerns
and fears that have to be addressed. Could a ‘home virus’ make our digitally operated Smart Home a target
for malware? Would criminals be able to gain access to your home by infiltrating your digital security network
and opening the doors? And let’s not forget the paranoia of cyber voyeurs gaining access to your CCTV
cameras and watching your every move.

During a recent Consumer Electronics Show in Las Vegas, high tech companies demonstrated how they are
poised to gather unprecedented insights into consumers’ lives including how much they eat, whether they
exercise, when they are home and who they count as friends.

Today the increasing number of gadgets seems to make life more and more complicated but, at some point,
they need to make life easier. If our truly connected world is designed correctly then the gadgets and
systems that control, operate and report, should be able to operate invisibly and improve our living
environment imperceptibly.

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9.8 How to develop a Smart Home
Currently the biggest problem with developing a Smart Home is that there are many different protocols and
devices, wiring systems and gadgets but very few of them are designed to work together. The result is that
homes are full of wires and battery operated sensors that are a nightmare to maintain. However, the
technology is in place and many of the above mentioned systems can be bought off the shelf. Integrating
them is the big challenge.

Traditional home and building automation products such as those used to control heating, lighting, blinds,
ventilation, security technology, audio/video and numerous other functions use simple data transfer protocols
such as KNX. The utility providers opt for a protocol called EEbus for energy management. Many digital
products such as computers, game consoles, tablet and Smart phones use Ethernet IP and wireless.

A number of companies have tried to make sense of this confusion and the introduction of control systems
such as Zigbee and Zwave have made attempts to build a cohesive system.

Microsoft is looking to unify electrical appliances within the home and establish itself in the burgeoning
“Smart Home” market with the development of HomeOS. Essentially a lightweight “Smart Home” operating
system that aims to make it easy for users to manage their home networks and ease the creation of
applications by third party developers, HomeOS is designed to provide a central hub through which various
household devices can be controlled.

Google’s Android@home project is also reaching out into the Smart Home territory and would like to think
that "every appliance in your home" as being a potential accessory to the phone.

Even the electrical power systems providers have had to reconsider their traditional delivery with the
introduction of low voltage energy systems such as PV and the replacement of high voltage lighting with low
voltage DC. Now systems such as Dc48 are looking at low voltage DC networks that will use energy
generated locally and distributed around the house alongside data and control signals in an attempt to build
an independent home distribution network connecting up all the homes’ devices

The mantra is ‘pay upfront to make long term savings’, but are Smart Homes really good value for money
and how much does it cost to make a home Smart?

Building from new or retrofitting? Making a home Smart will always involve a cost. It is true that there are
cost savings in energy and water (if you pay for yours) but the real benefits are probably less obvious.

9.9 Relationship to FTTH

Without a digital connection it would be difficult to control many of the modern, Smart technologies and
impossible to deliver high speed streaming data. Early examples of home automation used simple, wired
control systems and required only a low data rate to send signals. However most of the new, life-changing
innovations will require fast data delivery and probably symmetrical download and upload speeds as well.
This data connection will need to be secure and robust to ensure the consumer has confidence in the

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functionality of the system.

Companies such as Verizon are marketing home automation and security services as part of their FTTH
package. Such products are attempting to make the FTTH offering financially viable and more attractive to
the consumer.

With companies that are developing these interface systems it looks like the Smart Home is becoming the
interface between the consumer and FTTH.

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10 Smart City Roadmap
As described above, there is no real standard definition of a Smart City.

Therefore, to achieve a Smart City level, it is important to define the scope and targets for each city in
question. In order to develop the city it is also necessary to have detailed knowledge of existing infrastructure
and existing ‘levels of smartness’. Once the gap between today and the targeted Smart City has been
identified, campaigns and initiatives can be implemented to move step by step towards a Smart City.

As a starting point, analysis and assessment are of fundamental importance. Data has to be gathered,
measured and managed, as this will highlight patterns and inefficiencies.

When starting a Smart City initiative, it is effective to start with those areas that offer improved services to the
inhabitants. This can be realized by implementing e-government. The initiative should be based on a
business plan describing the kind of services that are to be considered, and which services can be combined
to achieve composite services.

Typically service ideas can be gathered during a workshop which will explore different perspectives and
areas where e-services can be developed.

In the business plan the goals of such an initiative have to be defined.

Possible goals in this context can include:

- Improving organisational efficiency

- Make it easier for people to interact with the municipality

- Involving more citizens in the social life

- Decreasing organisational costs

- Achieving better data quality to enhance decision making processes

For E-Health the targets could be:

- Elimination of more adverse pharmaceutical events

- Reduction of unnecessary hospitalizations per year

- Reduction of medication processing time and problems relating to medication orders

For Mobility the targets could be:

- Usage of renewable resources

- Shift from individual to public transportation in urban areas

- Reducing traffic jams

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For Smart Homes the targets could be:

- Reducing energy demands

- Improving convenience

- Security

- Ambient Assisted Living

For Smart Grid the targets could be:

- to optimise investments and adapt the electrical grid to decentralised and stochastic energy
production through renewable energies

- to ensure electrical grid stability and maintain energy delivery quality

- to enable the electrical grid to support demand response and advanced services

- to develop global standards based on SGAM (Smart Grid Architecture Model)

- to provide a framework for regulation and market models

- to guarantee data protection and security

- installing user benefits such as “Smart Meter”

- to provide efficient storage systems (battery, power to gas, pumped storage power station…)

Long term:

- to develop user cases, incl. flexibility, smart charging, network management,

10.1 Smart City - key success factors

Since a Smart City interlinks various disciplines and technologies it is important to think interdisciplinary in
order to achieve objectives. This means also involving several stakeholders.
Defining a vision, targets and objectives shared by opinion builders as well as the population.

Check List:

1. Involve Key Stakeholders, such as:

Local politicians and their parties, local industries and enterprises, universities, utility providers,
telecom companies and the local population.

2. Analyse the current situation for the various disciplines

3. Define the objectives for the city in question

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For example:

 Improving efficiency

 Making it easier for people to interact with the municipality

 Including more citizens in the social life

 Decreasing organisational costs

 Achieving better data quality on which decisions area based

4. Conduct an analysis to identify gaps between the current situation and the objectives.

5. Initiate strategic initiatives /actions in order to develop infrastructure and deploy applications

10.1.1 Strategic initiatives

The e-government roadmap should include several disciplines, as follows:

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11 Benefits of a Smart City for Key
Stakeholders
As mentioned above, when a project encompassing the dimensions of a Smart City is in the start up phase it
is imperative the most important and influential players are on board. Each target group may benefit
differently from the Smart City.

11.1 Benefits for the municipality

 Improving competitiveness (attract businesses and people to the area)

 Financing and facilitating in infrastructures capable of surviving any short term directional electoral
changes or other critical incidents

 Lowering OPEX and CAPEX by making working processes more efficient

 Increasing public security using video surveillance in public areas

 Real time information of public traffic, parking availability and traffic upheaval due to road works

 Making the city attractive for people to live in

11.2 Benefits for Power Utilities

 Connecting smaller, privately owned power plants to the grid

 Better understanding of the demands made by the end user and optimising their production

 Avoiding astronomical investments in the physical network


rd
Leveraging 3 party power plants

 Adding intelligence to the power grid

11.3 Benefits for the citizens

 Shorter travel time

 Increased security

 Reduction in pollution

 24/7 public service desk

 Fast access to all cloud services

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11.4 Benefits for Public Transportation
 Manage increasingly more complex schedules and tariffs of the public transport system

 Provide real time information to passengers of public transport

 Faster reaction times to relieve delays or unforeseen demands to improve competitiveness (attract
businesses and people to settle)

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12 Overview of the Smart Cities in Europe
12.1 List of Smart Cities
The following list of Smart Cities was compiled by the Smart City Group through internet research as well as
personal knowledge. It may not be complete and some of the cities claim themselves to be ‘Smart’ without
clearly indicating the reasons.

However, many of the cities are deploying fibre, which indicate a correlation between FTTH coverage and
‘smartness’.

Country City
Albania Tirana

Armenia Yerevan

Austria Graz, Hartberg, Innsbruck, Linz, Salzburg, Vienna

Bosnia and Banja Luka, Sarajevo

Herzegovina
Belgium Antwerp, Brussels, Brugge, Charleroi, Flanders, Gent, Leuven, Liège

Bulgaria
Burgas, Pleven, Plovdiv, Ruse, Sofia, Varna, Vidin

Croatia Dubrovnik, Rijeka, Zagreb

Cyprus Nicosia (Levkosia)

Czech Republic Brno, Liberec, Kosice, Plzen, Ostrava, Prague, Usti nad labem, Zlin

Denmark Aalborg, Aarhus, Copenhagen, Kalundborg, Odense

Estonia Tallinn, Tartu

Finland Helsinki, Oulu, Tampere, Turku

France Amiens, Angers, Besançon, Bordeaux, Brest, Caen, Cannes, Clermont-Ferrand,

Dijon, Grenoble, Issy-les-Moulineaux, Le Havre, Lille, Limoges, Lyon, Marseille,
Metz, Montpellier, Nancy, Nantes, Nice, Paris, Poitiers, Reims, Rennes, Rouen,
Saint-Étienne, Strasbourg, Toulouse, Tours

Georgia Tbilisi

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Germany Aachen, Augsburg, Berlin, Bielefeld, Bochum, Bonn, Bottrop, Braunschweig,
Bremen, Chemnitz, Cologne, Dortmund, Dresden, Duisburg, Düsseldorf, Erfurt,
Essen, Frankfurt am Main, Freiburg i.Br., Gelsenkirchen, Göttingen, Hagen, Halle
(Saale), Hamburg, Hamm, Hannover, Heidelberg, Herne, Karlsruhe, Kassel, Kiel,
Köln, Krefeld, Leipzig, Leverkusen, Lübeck, Ludwigshafen a.Rh., Magdeburg,
Mainz, Mannheim, Mönchengladbach, Mülheim a.d.R., Munich, Münster, Neuss,
Nuremberg, Oberhausen, Oldenburg, Osnabrück, Potsdam, Regensburg, Rostock,
Saarbrücken, Solingen, Stuttgart, Trier, Wiesbaden, Wuppertal

Greece
Amaroussion, Athens, Heraklion, Ioannina, Kalamara, Kavala, Larisa, Patrai,
Thessaloniki, Trikala, Volos

Hungary Budapest, Gyor, Miskolc, Pecs, Sopron, Szeged

Iceland Reykjavik

Ireland Belfast, Cork, Derry, Dublin

Italy Ajaccio, Ancona, Bari, Bologna, Cagliari, Caserta, Catania, Cesena, Florence,
Genoa, Gozo, Milan, Modena, Naples, Padua, Palermo, Parma, Perugia, Pisa,
Potenza, Rome, Salerno, Sassari, Taranto, Torino, Trento, Trieste, Venice, Verona

Latvia Kaunas, Riga

Lithuania Liepaja, Vilnius

Luxembourg Luxembourg

Macedonia Skopje

Malta Valletta

Moldova Chisinau

Netherlands Amsterdam, Eindhoven, Enschede, Groningen, Leeuwarden, Maastricht,

Nijmegen, Rotterdam, Twente, The Hague, Utrecht

Norway Bergen, Oslo, Stavanger, Trondheim

Poland Bialystok, Bydgoszcz, Gdansk, Katowice, Kielce, Koszalin, Kraków, Lodz, Lublin,
Opole, Olsztyn, Ostrava, Poznan, Radom, Rzeszow, Suwalki, Szczecin, Warsaw,
Wroclaw, Zory

Portugal Avein, Coimbra, Funchal (Madeira), Lisbon, Matosinhos, Setúbal, Oporto, Paredes
(PlantIT Valley)

Romania Arad, Bacau, Braila, Bucharest, Craiova, Sibiu, Timisoara

Serbia Belgrade, Nis, Novi Sad

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Slovakia Banska Bystrica, Bratislava, Kosice, Nitra

Slovenia Ljubljana, Maribor

Spain Barcelona, Bilbao, Braga, Cordoba, Donostia-San Sebastian, Faro, Fuenlabrada,

Gijon, Granada, Las Palmas (Canary Islands), Lisbon, Logrono, Madrid, Malaga,
Murcia, Oviedo, Palma de Mallorca, Pamplona, Santander, Santiago de
Compostela, Seville, Sintra, Terrassa, Toledo, Valencia, Valladolid, Vigo, Zaragoza

Sweden Gothenburg, Joenkoeping, Karlstad, Linkoeping, Malmoe, Oerebro, Ronneby,

Stockholm, Umeaa

Switzerland Basel, Bern, Geneva, Lucerne, Zürich

Turkey Bakirkoy, Beyoglu, Bursa, Gaziantep, Istanbul, Izmir, Konya, Nilufer, Osmangazi,
Pendik, Sahinbey, Sampas, Sanliurfa

Ukraine Kharkov, Kiev, Lviv, Odessa

United Kingdom Aberdeen, Bath & NE Somerset, Belfast, Birmingham, Brighton & Hove, Bristol,
Cardiff, Coventry, Edinburgh, Exeter, Glasgow, Kingston-upon-Hull, Leeds,
Leicester, Lincoln, Liverpool, London, Manchester, Newcastle-upon-Tyne,
Portsmouth, Preston, Sheffield, Sunderland, Wirral, Wolverhampton, Wrexham

Table 1 List of Smart Cities.

12.2 Selected market insights

12.2.1 Netherlands
Amsterdam (http://www.amsterdamsmartcity.com/#/en)

Amsterdam Smart City is a unique collaboration between the inhabitants of Amsterdam, its business sector,
research institutions and government authorities. The aim of this project is to show how energy can be saved
now and in the future and is a joint initiative between Liander (the operator of Amsterdam’s electricity grid)
and the Amsterdam Innovation Motor in close cooperation with the City of Amsterdam.

Amsterdam Smart City stands for innovative technology, the modification of the behaviour of Amsterdam’s
citizens and sustainable economic development. By bringing partners together and setting up small-scale
local projects, Amsterdam Smart City makes it possible to test all new initiatives. In this way the most
effective initiatives can subsequently be implemented on a large scale and as such Amsterdam Smart City
effectively serves as an accelerator for climate and energy projects.

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12.2.2 Switzerland
St. Gallen

The city of Sankt Gallen in Switzerland has deployed FTTH through the power utility provider, which is
owned by the city. As a second step it is now rolling out a wireless LAN. Thanks to the FTTH network,
connectivity is not a problem, providing plenty of opportunities for wireless antennas to be connected to the
fibre. In addition, due to the high density of antennas the transmitting power can be reduced to a minimum
thus the radiance is lower than anywhere else.

On its path towards being a Smart City, Sankt Gallen is also focusing on three main campaigns called the
three-dimensional energy concept, which includes mobility, heating systems and electricity.

Although the energy consumption in every city is increasing year by year, Sankt Gallen has set the target to
reduce consumption from today’s 1490GWh to 1060 GWh in year 2050.

An even more demanding goal is that the city will cover its own energy consumption, independent of other
parties, using renewable energy sources.

This will be achieved by investing in Photovoltaic, GEO - thermal power plants, water power, Wärme
Karftkopplongs Anlagen and Holzschnitzelanlagen.

To reach the targets specified, 140 activities have to be implemented. These ambitious targets cannot be
reached without implementing smartness.

eZürich
Zürich has deployed a FTTH network in the city centre, which will be followed by a second phase to connect
the rest of the city within the next years. Throughout Switzerland, Zürich has become the most important ICT
city in the country with the University and hundreds of companies working towards cutting edge ICT
solutions. In addition, Zürich has been awarded the honour of being the city with highest quality of life
worldwide.

The City Council decided to exploit the excellent infrastructure and the enormous innovation potential
provided by the local ICT industry by developing a strategy focusing on e initiatives. The eZurich programme
is the result.

e Zürich makes interaction between the population and the Behörden simpler. Zürich, in cooperation with the
ICT industry, has developed projects and strategies which make the city the top ICT destination. eZürich will
provide communication technology and all its advantages to the city’s inhabitants. Zürich will evolve into one
of the most advanced cities worldwide having the best and smartest infrastructure.

In addition the city is working towards e mobility initiatives and has set the target to reduce energy
consumption from today’s level of approximately 5000 Watt to 2000 Watt per household. This initiative is
called 2000 Watt society.

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13 Final remarks
The thought of living in a Smart City is exciting. Who doesn’t dream of how easy life could be, a better quality
of life and the realisation of efficient work?

However, realisation will come step by step. What seems to be revolutionary today will be commonplace
tomorrow. Nevertheless, we are convinced that using technology to address today’s environmental issues is
a promising path to follow towards achieving a clean and lasting earth.

We are motivated to contributing towards a better planet through developing the places where we live into
being better places in the future.

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14 Glossary
Smart Grid:

A smart Grid is an electrical framework that uses information and communication technology to gather and
act on information in an automated fashion.

Smart City:

A Smart City uses intelligent systems and information to increase efficiency, productivity, and ecology
awareness; it reduces pollution and improves quality of life in a world of increasing urban complexity.

Smart Home:

Smart Homes and assistive technology means increased convenience and comfort as well as optimising the
consumption of energy. The key electrical appliances and services are connected allowing them to be
remotely controlled, monitored and accessed when necessary

FTTH “Fibre To The Home”:

An exceptionally fast optical network which connects all households and business

3D Printing:

Additive manufacturing or 3D printing is a process of creating three dimensional solid objects from a digital
model

Photovoltaic:

Is a method of generating electrical power by converting solar radiation into direct current electricity using
semiconductors (solar panels) that exhibit the photovoltaic effect.

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FTTH Council Europe
Rue des Colonies 11
1000 Brussels
Belgium
Tel +32 2 517 6103
Fax +43 2855 71142
[email protected]
www.ftthcouncil.eu

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