Telefónica M2M global operator: strategy of alliances

m2m

Telefónica - M2M Global Operator – Strategy of Alliances

Telefónica Digital | Global M2M

June 2013

© Telefónica Digital | All rights reserved m2m

2

Index

Introduction

01

02

03

01

02

03

Creation of the M2M Ecosystem. Strategy

Conclusions. Main Messages.

01Introduction


4

Creating an eco-system of Partners

Due to the fragmentation of the M2M Value Chain, development of end-to-end best in class solutions implies to work with Partners.

m2m Partner Eco-system “Strategy” aiming at bringing together the world class M2M players

along the value chain to rapidly create applications and services

Industry and market dynamics limit any one service provider’s ability to drive significant change by “going it alone”.

Some programs and tools must be put in place to make this process easier in creating a rich ecosystem of valuable partners.

02Creation of the M2M Ecosystem. Strategy


6

Fostering alliances with other operators aiming at:• Achieving synergies,

• Reducing costs,

• Gaining a better footprint and roaming capabilities,

• Building a universal solution for global customers.

Creation of Eco-System – Objectives

Bilateral Multilateral Alliance

1 2


7

…and with the best bilateral alliances for M2M

… bilateral agreements with a number of worldwide carriers

Nature:

o Full partnership: Sales + Product + Technical

Objectives o Increase Incomes: Increase Sales + New Wholesale Revenueso Reduce costs: Roaming + Economies of Scale

Scopeo Collaboration in Marketing and Commercial, o M2M Horizontal & Vertical Solutions, o Technology and Procuremento Focus on services for Transnational customers, mainly MNCs - via Roaming or local lines.


8

Bilateral Alliances – Coverage.

Global CoverageGlobal Coverage

Telefónica

Sudan

Sweden

Norway

Denmark

Serbia Turkey

Hungary

Montenegro China

Saudi Arabia

UAE

Libya

Indonesia Tanzania

Nigeria

Benin, Gabon, Togo, Ivory Coast

Egypt

Niger Philippines

India Bangladesh

Malaysia

Pakistan

SingaporeSri Lanka

Thailand

India: Etisalat, SingTel, TelenorPakistan: Etisalat, SingTel, TelenorIndonesia: Etisalat, SingTel. Bangladesh: SingTel, Telenor Thailand: SingTel, Telenor

Etisalat

China Unicom

SingTel

Telenor

Avea

Sunrise


9

The Mission of the Alliance is to enable a global, unique seamless solution for the provision of communications to multinational customers requiring M2M device connectivity.

Guiding Principles:

• Focus on creating an M2M ecosystem & global multi-operator products

• Open to new members to fill the geographic gaps

• Currently, Jasper Wireless Control Center Platform usage

• M2M Solutions: Unique customer interface (Jasper Wireless) and unique SIM (subscription update).

.. and leading a M2M Alliance with significant telecom operators all over the world

© Telefónica Digital | All rights reserved. m2m10

Global solution: The agreements enable joint commercial efforts to look for a global solution based proposition.

This is particularly important for M2M opportunities that require multiple services over large geographical

areas: It's about Communication but also about Operations

M2M Global Customer Requirements

Requirements

• one portal

• a unique SIM

• a common APN

• a single VPN

• a joint customer service

• Unique/several invoicing

• Local /lowest prices

• Permanent roaming solution

• Multioperator solution with local

subscriptions

Solution

It´s mandatory the collaboration

between operators!


11

Value Proposition for Customers

• Connectivity for a large geography

• Easy regulation compliance

• Cost of connectivity.- Using the SIM profile of a local operator avoids roaming costs, helping to keep services that use high volumes of data affordable for customers.

• Controlling costs and predicting costs. • Logistics and simple SIM procurement.- Regardless from which Alliance member the M2M World

Alliance SIM was procured, installed in an embedded mobile device it is ready to work in each M2M World Alliance

• Global and Regional Support.

• Unified billing and invoicing process. Capability to adapt the billing/invoicing to customer requirements.

Improving business

Unique SIM, a uniform web interface and centralized management of status


12

M2M Multi-operator Alliance Footprint Global Coverage

Bangladesh

Russia

PakistanIndia

Thailand

Canada

Puerto Rico

Venezuela

Brazil

Argentina

Uruguay Chile

Ecuador

Panamá El Salvador

Guatemala

Nicaragua Colombia

Peru

México

Costa Rica

UK Germany

Czech R.

IrelandBelgium

Slovakia

Spain

Italy

The Netherlands

Algeria Libya Egypt KSA

Central African R.

Australia New Zealand

Japan

Sri Lanka

Indonesia

Philippines

ArmeniaGeorgia

Kazakhstan

UzbekistanKyrgyzstan

Tajikistan

Cambodia Laos

AfghanistanMyanmar

Ukraine

Singapore

Burundi Zimbabwe

Benin, Gabon, Ivory Coast, Togo

Niger, Nigeria

UAE

Tanzania

Sudan


13

Unified View of the Control Center

Top Layer (Control Center)

… a unified view of the Control Center will be offered to the Customer

Control Center


14

…A Subscription Management System will be implemented

“Over The Air” Subscription Manager*

* Subscription Manager or Federation of Subscription Managers

Global SIM.- with provision subscription

03Conclusions. Main Messages.


16

M2M – Conclusions

Telefónica is developing and sound

policy of partnerships.

This policy will allow extending the

coverage to serve MNC customer

requiring worldwide coverage.

Partnership with: Avea, China Unicom, Etisalat, KPN, NTT Docomo, Rogers, SingTel, Sunrise, Telenor, Telstra, Vimpelcom,

That promotes a global broad-based approach to go for international bids.

A solution of eUICC/OTA provisioning within the global alliance with eight operators under development.

Telefónica is a driving force to push

the alliance of the eight operators.


17

What the market said

• “The seven mobile operators across the world using the same M2M platform will automatically benefit from a degree of interoperability that makes it easier for enterprise customers to expand into new markets.” (telecoms.com – News and Analysts)

• “The operators has big names with a vast geographic reach. It includes carriers from completely different regions of the world” (telecoms.com – News and Analysts)

• “The Alliance opens doors to global bids. The main thing is to develop a single solution to meet the requirements of multinationals.” (Ovum).

• “It is hoped that the alliance will stimulate the growth of M2M solutions, and lead to a reduction in operational costs.” (Ovum).

• “Operator M2M alliance could solve fragmentation in ecosystem” (Fierce Wireless Europe – citing Analysts).

• “Along with greater collaboration between vendors and operators, such efforts would help to remove a barrier to the wider adoption of M2M services.” (Telecom Engine – M2M )

• “Incorporation of Etisalat. Because the global M2M market is defined by partnerships and the combination of core competencies an operator can bring to its M2M technology, being able to offer a single SIM for M2M will be attractive to enterprises looking to deploy a single M2M application in different markets worldwide”. (telecom.com – News and Analysts).


18

What the market said

Frost&Sullivans

Informa Telecoms“The alliance will now need to work hard to use its single worldwide SIM to both educate the enterprise market on the potential uses of M2M, as well as to use it as a platform to differentiate from other operators’ M2M offerings”; “It will be interesting to see how an alliance of operators with something approaching global reach – although the key markets of the US and China are still absent from its footprint – will be able to take market share from rivals with its single SIM approach in the growing M2M market”

TelecomAsia

"A significant advantage of this partnership, however, is addressing roaming challenges, especially in M2M industries such as automotive and logistics applications (e.g. regional and international logistics track & trace applications,.. The partners will also benefit for scale arguments when negotiating M2M devices, modules, API standardisation and M2M platform roadmap development. Moreover, these M2M telcos will differentiate themselves from other M2M service providers. “

“Alliance members are using the Mobile World Congress to highlight its progress so far. The telcos are demonstrating SIM management capabilities and over-the-air subscription updates on tablets during the show, which the alliance states are key elements for manufacturers of mass-market connected devices.”

19

m2m of Telefónica“We are here, and we will remain here”

Welcome to the m2m world of Telefónica Welcome to a better world