Lowell McAdam Consumer Electronics Show 2013 January 8, 2013

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Dec 12, 2013 (3 years and 10 months ago)

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Lowell McAdam

Consumer Electronics Show 2013

January 8, 2013


“Powerful Technology, Powerful Answers”


(Opening video)


Good afternoon, everyone. It’s
good
to be back at the C
onsumer
Electronics Show and
feel the pulse

of this
great
industry.
F
or me
,

what
makes this show
--

and this industry
--

so exciting is
seeing
right before
your eyes
how an
idea

one year becomes a
reality

the next.


That search for the next big thing
defines

the technology industry.

At the
heart of
that search
are a few simple questions.


H
ow can we make this easier
?




H
ow
will
technology
make my
business more efficient
?



Or

the biggest question

of all


how can we use technology to c
hange our
lives
for the better?


T
he answers to these questions are
now
as

cl
ose as the phone in your
pocket
.
In the last two years,
the communications industry has made
tremendous strides in building

the

network platform
s

that
will bring
information and computing to
everyone

and
everything
.

These networks are advancing way f
aster than anybody predicted.

When

Verizon
launched 4G LTE

on the

keynote stage at CES

2011,
the
average speed on wireless networks in the U.S. was less than 1 megabit
per second.
The fastest residential broadband connections
could
deliver
50 megabits
to the home
,
but
that was rare. The first 100 Gigabit route in
the Internet backbone had only been in operation for about a year.

M
obile
video and cloud services
were in their infancy
, and m
achine
-
to
-
machine
was more of an
idea

than a
reality
.

2


What a dif
ference two years makes.

Today, Verizon’s 4G LTE

network

covers
more than
273 million POPs


almost 89

percent of the

U.S. population
. B
y the middle of this year we’ll
finish our build
-
out


six months
ahead

of schedule.

Speeds over LTE are
in the 10 to
12 megabit range.

The impact of
4G
LTE
has rippled
throughout the tech industry. At last
count, we have close to 50 LTE
-
enabled smartphones, tablets and Internet
devices, produced by the world’s leading manufacturers. We’re seeing a
healthy competition a
mong
smartphone
operating systems, plus a whole
new generation of electronics and machine
-
to
-
machine devices in the
market or in the pipeline.

4G LTE proves the case that innovation in
networks

is the foundation for
innovation across the whole
industry
.

When Verizon announced our plan to take fiber all the way to customers’
homes at CES 2004, most people
still
accessed the Internet over a
regular
copper line or cable connection
.

Today,
more than 80 percent of
Americans have access to networks that can de
liver
more than
100
megabit

s
peeds

to the home.
This past year, we introduced
FiOS
Quantum, which can reach 300 megabits per second
, and
we
have the
platform in place to eventually deliver 1 Gigabit speeds to the home
.

The

global backbone network
is also improving exponentially.
Over the
past
three years, we have
connect
ed

most of the
major cities in the U.S.

with 100 G
, and
we’re
rolling it out

on our
busiest

routes in Europe and Asia
Pac
.
W
e expect to
double

that
speed in trials
later this year
.
We’
re also
pushing

100 G in
to

our
metro

networks
,
as we

recently did

with our fi
ber
central offices in Lower Manhattan
--

driving Ethernet speeds
even
closer
to the edge.



Verizon
has
expanded into th
e cloud

space in a big way with our
acquisition of Terremark, which gives us a network of world
-
class cloud
data centers around the globe.
Th
at means we can
offer cloud
-
based
services in areas like mobile commerce,
security,
health care and
3


telematics
. It also
means we
’ll be able to
give entrepreneurs the tools to
build new
businesses and
services in the cloud on a global scale.

C
loud computing
is
the third wave of the digital revolution. As with
mainframes and PCs, each wave expands the market more than ten times
over.

That’s
a snapshot of
what we’re seeing today.

Now let’s look forward.

Tablets will outsell PCs
this year
.

By 2015,
10 percent o
f the digital universe will be housed in the cloud.

By 2020, t
he Internet of Things
will grow to

more than 30 billion

connected
machines, buildings and electronics
.

In short, we

now

have the
ecosystem
for spreading innovation on a
worldwide scale, at spe
eds we could only imagine just two short years ago.

Now the
challenge for our industry
is, wh
at do we do with it
?

You can see a million answers to that question just by walking around the
convention center at CES.
As exciting as that is,
t
he
potential

is even

greater
.
O
ur industry has only
just

begun to figure out how to use
technology to
solve the world’s big challenges.

This afternoon,
we will tell you about what we plan to do to jump
-
start that
innovation process. But first
I’d like to show you wh
at we’re doing
today
--

on our own and with some great partners
--

to find
powerful answers

to the
questions that matter most to our customers and our society.

TRANSFORMATION OF VIDEO

Let’s start with
video
.

The multiscreen revolution is now a worldwide phenomenon.
Already,
g
lobal online consumers watch as much video on their
computers

as they
do their
televisions
. More than
half

watch video on mobile devices.

Consumers today have any number of ways to con
trol wh
at, wh
en, where
and how they watch video. They can stream programming from their video
4


provider to a tablet or a game player. They can use a mobile app like our
Viewdini service to find content from providers like Hulu or YouTube. Or
they can use

an over
-
the
-
top video service, like our new Redbox Instant
service.

The next set of

tools will take
the ability to customize content

to
a whole
new level
.

For example, we

re

expanding
our

video digital media service, w
hich

can

put video from any provider in
the

cloud, do all the translations and deliver
it to any device, on any network.

We’v
e
developed

a “channel store” for FiOS TV that will let you search for
any content you want, from anywhere in the world, and add
it to your

channel line
-
up


a jukebox
for TV, if you will.

We’re
also
developing a

service to
broadcast
live video

over LTE
. To
do
that

today, we have to dedicate a separate channel to each individual user,
which uses up capacity pretty fast. With LTE Broadcast,
we’ll be able to
stream to everybody over the same channel at

the same time. This
will
give

content owners
new ways
to reach their audiences, whet
her it be for
sports, concerts or
even
college
classes
.


O
ur goal is to break down the barriers between home and mobile
once and
for all
and come up with new
video services that can move seamlessly
across any platform and any device.

Some of these
innovations
will
tra
nsform society
. A few will even change the w
orld.

Take a look.

(video: Golden
-
I emergency response)

There are no boundaries on what these networks can do.
T
o explore how
new technologies a
re changing the video landscape, I’ve asked one of our
great partners to join me onstage this afternoon.

Business Week

once called him the “most powerful man in sports.”
60
Minutes
called his organization “the most successful entertainment
enterprise on earth.”
H
is network accounted for 8 of the 10 most watched
5


television shows
of 2012
. He’s been a
visiona
ry
in using technology to
reach more people, in more ways,
at all times.

I’m thrilled
to have him

with us
today. Please help me welcome the
Commissioner of the National Football League, Roger Goodell.

(
1
0

minute dialogue
)


(Video)


(Goodell exits)


THE
CONNECTED ENVIRONMENT



Let’s turn now to the machine
-
to
-
machine revolution.

We’ve talked about M2M

in theory for a long time, but
with the spread of
the cloud and LTE, we’re
now
seeing
it

come to fruition on a big scale.
We’re seeing it in:



Retail
,
where
you will be

able to hold your smartphone over an item in
a store and see customer reviews, comparative prices or videos to
help you decide what to buy.



E
-
commerce
, where secure networks like Verizon’s ISIS partnership
are taking the friction out of m
obile payments.



Smart homes
,

where appliances are

connected via the cloud so you
can control your home security and energy systems with you
r
smartphone
.

The foundation is there. Now the real innovation begins

as we
use
this
connected environment
to attack
big social

challenges, like
energy
conservation
.

Take a look.

(Video: Envision Charlotte)

T
here’s one more
piece of this seamless digital experience we haven’t
talked about: t
he car.

6


D
rivers in
this country spend more than 540 hours in their ca
rs, every year
.
Our

average commuting time is 80 minutes a day.

T
he number of
connected cars is expected to more than
quadruple

worldwide
between
now and 2016.

L
ast July
,
Verizon
acquired
Hughes Telematics,
which provides

machine
-
to
-
machine
,

fleet
and
connected car

services.
Hughes

provide
s

the
mBrace system for M
ercedes
-
Benz, which you can see and experience in
our booth.


W
e can also
deliver cloud
-
based services



including
the
video

experiences we just talked about

--

to
the car
. More than that, we
’ll be able
to

integrate the car
with
a customer’s

home security system, social
networks, calendar and
mobile wallet
.



To talk more about the convergence between communications, electronics
and automobiles, we have with us one of the real thought leaders
in this
arena.

Our g
uest has called the car the

ultimate mobile device
.”
His vision has
helped
establish his company, Ford Motor

Company
, as a leader in using
technology to transform the driving experience. He oversees Ford’s
worldwide research organization and has exciting plans for continuing to
make the
car
an extension of the digital experience.

Please welcome the
Chief Technical

Offi
cer of Ford Motor Company …
Paul Mascarenas.

(
10 minute dialogue
)


(Video)


(Mascarenas exits)



DIGITAL HEALTH CARE DELIVERY


You just heard how the connected car is becoming one piece of an
intelligent environment that’s giving us new tools for making transportation
systems smarter.

7


Now
let’s talk

about how we can use these technologies to make
health
care

smarter.

When it com
es to tackling our society’s big challenges, health care has to
be at the top of the list. In this country alone, we spend $
3

Trillion a year
on health care
, and it’s rising at
more than 5

percent a year
.
In 2013
,
health care

will consume 19

percent of the Federal budget
, more than any
other single item
.
Half of our health care bill goes to just 5 percent of the
population, much of that for the treatment of chronic diseases. Yet for all of
this, the state of Americans’ health has declined b
y almost 70 percent,
compared to the 1990’s.

O
ur industry has a tremendous opportunity to
use
a
connected
ecosystem

to address
this problem in a powerful new way.
Verizon is

working with a
lot of great partners to do just that
.

(Video:

The Connected Hea
lth

C
are Ecosystem
)

What makes this

a transformational moment
for digital health care is that
the
barriers to innovation
in
this industry
are finally coming down
.

W
e now have a

network that can handle the bandwidth demands of
sending MRIs, X
-
Rays and CAT

scans over the Internet
.
We’re working
with one company called
Qi (pronounced CHEE)
Imaging
to put a

radiology

platform in the cloud that
take
s

two
-
dimensional images

and
enhances
them with

software to get
3
-
D or even 4
-
D image
s

so
you can see a heart
be
ating or track the
growth

of a

tumor
over time.

W
e
’re

actively working with the FDA to get clearance on our mHealth
platform, which will give clinicians and patients a better tool for managing
chronic diseases.
Between that and our HIPAA
-
enabled cloud platform, we
will have a secure,
private
way
for patients, doctors,
and
insurance
companies

to exchange information

and

share medical records in a mobile
environment.

W
ith big
-
data analytics, we
’re helping the gov
ernment
and other payers
root out fraud in the
health care

system
.
In a report to Congress three
weeks ago, HHS cited the fact that Verizon’s system was up and running
8


within 60 days
. I
n the first year
,

it

processed more than a billion claims and
saved

the government $3 for every $1 invested.

In another case, we used
our system to analyze 2.5 million claims in a single day and found more
than 13,000 suspicious claims, representing more than $200 M

in possible
fraud.



Technology can also
spread scarce

medical expertise across the country.
We’re worki
ng with a company called Health
Spot
, which is

launching here
at CES
. They’re

creating what you might call virtual examining rooms


basically, a private kiosk that can be installed at a big box store, a
pharmacy
or a company. It comes equipped with a complete telehealth
platform so you can
videoconference
with your doctor, access all your
medical records, and use
integrated

diagnostic tools to
capture

your vital
signs and other data, all in real time.


W
e’re
also
using technology to
close the gaps

in
access

to quality health
care.
Over 50 percent of what
the government
spend
s

on
preventable
conditions like diabetes or poor nutrition goes to
underserved communities.

We’ve signed on as

the technolo
gy sponsor for a project called
the Clinton
Health Matters

Initiative
, launched by the

William J.

Clinton
Foundation
.
Over the next three years we

ll go into medically disadvantaged
communities around the country and do health
“makeovers”

that will put
better tools for managing health in the hands of physicians and patients.

Our first project is in Coachella Valley, California

--

a community where
25% of adults and
70% of children
are
living

in poverty
.

We already have
people on the groun
d in Coachella to figure out how to deploy
practical
solutions that
will
address
these

disparities
.

Our objective is to make these
communities into a working laboratory for
creating the health care solutions
of the future.

CONCLUSION


Driving Innovation



ANNOUNCEMENT: Verizon Innovation Prize


9


I hope you get the idea about the life
-
changing things we can accomplish
when we bring together the
passion

of the technology industry and the
power

of broadband networks
.

At
Verizon, we know that, to really move
the industry forward, the

whole
ecosystem needs to be involved in the innovation process
.

We’ve seen
that process in action at our
Innovation Center
s

in Waltham, MA
and San
Francisco
, where
we work with
product developers to embed LTE into new
devices and machines.

We’re convinced we can use this collaborative model
to
create billions of
dollars of
social

benefits



and grow
the
market at the same time
.

What we need is for the best minds in the techno
logy industry to
figure out
how to
tap the

network’s

capabilities to

change the world for the better.

That’s why


today


I am pleased to announce th
e

Verizon
“Powerful
Answers” Award
.

We challenge the technology industry to come up with innovative
applications, devices and
solutions
that take advantage of our converged
mobile, video and cloud
platforms to drive positive
social change.
To
accelerate this process, w
e will award
a total o
f
$10 million
, with top awards
of $1 million
,

to the innovations that provide t
he most
powerful answers
in
the fields of health care, education and sustainability
.

We’ll work with an independent panel of experts to
judge

the entries.

We
will also work with the winners to help them bring their ideas to market

and
make sure we do the
maximum

amount of good in the
shortest

amount of
time
.

We
will open the formal submission process
later this quarter
. In the
meantime, we’ve created a we
bsite where you can register to get updates
as we get this rolling.

For this to succeed, we need this great industry to get involved, so Gary
Shapiro … would you join me onstage, please?

10


Gary, you have been a real leader in
urg
ing this country
to
use

“n
inja
innovation


to drive our society forward. That’s why we’re thrilled that you
have agreed to represent the Consumer Electronics Association on the
advisory board
for the Powerful Answers Award.

If you’ll have us back next year, we’d love to
showcase
the winners at
CES
2014.

I believe we are at a tipping point when it comes to using technology t
o
address life’s big challenges.
The
technology

is there. The
the vision

is
there. The
leadership

is there. What we need now is the
creativity

and the
innov
ation

to put it all together.

We can’t wait to see what this incredible industry come
s

up with.

Thank you all.