T-Mobile Czech Republic Debuts IoT Portal

T-Mobile Czech Republic has launched a new web portal having to do with the Internet of Things, called TEO. In its initial phase, the portal will include examples of existing solutions deployed by customers as well as examples of applications of the technology in business. The portal also introduces the members of T-Mobile’s TEO team.

In addition to its catalogue of existing customer solutions, TEO will also allow companies to submit direct requests for IoT solutions, and the team will subsequently prepare specific proposals for their deployment. Eventually, a blog on news on the IoT will be added, as well as an e-shop that will offer individualized products and complete solutions, running on the network Sigfox, according to Ondrej Kozina, Manager of Innovations at T-Mobile.

As we have written previously, the Internet of Things represents a huge opportunity for mobile operators. Of course the potential revenue from connectivity is significant, as IoT-enabled devices proliferate and require networks on which to operate. The market is expanding rapidly; spending on IoT systems is expected to grow by 16.7 percent to over US $800 billion in the coming year and to US $1.4 trillion by 2021, according to an analysts’ report. Manufacturing, freight monitoring and asset management will account for the lion’s share of this spending, while airport monitoring, smart home systems, electric vehicle charging and in-store marketing will experience the fastest growth.

Beyond the question of connectivity revenue, the IoT is an excellent venue for exactly the kind of non-traditional services that MNOs are looking for as they diversify in an effort to remain relevant in an age of declining ARPU from traditional mobile services.

This latter, larger purpose will be best served if operators take matters into their own hands instead of waiting for IoT developers and other technology companies to create applications. Being the “dumb pipe” of the emerging IoT will not serve operators particularly well, as far as long-term growth is concerned. To avoid that trap, operators should take a page out of T-Mobile Czech Republic’s book and become active partners in developing actual systems. Inviting the submission of ideas for applications is an excellent first step, in our view. Creating or co-creating solutions that are genuinely desired in the marketplace will be the next step, and this will enable the operator to aggressively insert its brand into the emerging IoT sphere and to sell solutions as well as network connectivity. 

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. 

To learn more about Tarifica, please visit www.tarifica.com 

Orange Spain Poised to Enter Home Security Market

Orange Spain is teaming up with specialist manufacturer Tyco to launch a home security service with 24-hour monitoring and emergency response for €29.95 (US $32.82) a month plus a €99.00 (US $108.47) one-time installation fee, according to a report. The service, which becomes available on 24 May, can be set up with a smartphone app and comes with sensor-controlled wireless video surveillance equipment that continues working even during a power outage. Only eight percent of Orange customers currently have a security system in their home, the company says, adding that it will be the first unit in the Orange group to launch such a system.
 
The launch of Orange’s home security service comes nearly two years after Telefónica joined forces with IoT network company Sigfox, insurer Securitas Direct and home alarm provider Verisure to launch a similar service in Spain for Movistar users.
 
Home security systems enabled by the internet are increasingly popular across a broad swath of markets, and mobile operators have made various kinds of efforts to profit from the trend.
 
The most basic, least risky approach is simply to derive revenue from the connectivity needed to run the systems. While this is all upside, there is not a great deal of revenue to earn, because most of the time, security systems do not consume a great deal of data. A more aggressive tactic is to co-brand with existing security systems currently on the market, offer special deals to subscribers that incentivize them to sign up for the service.
 
Orange Spain is going one step further by taking a “soup-to-nuts” approach and creating its own security system, available exclusively to Orange subscribers. Given that only 8 percent of those subscribers now have a home security system, the field is wide open for Orange, and the pre-existing customer base is relatively easy to pitch to. Buying such a service from an already-trusted provider, for many people, is preferable to initiating a relationship with a new company. The exclusivity is likely to make the offer more palatable, and if the price point is right, we imagine that Orange could do quite well with it. The operator is, of course, late to the game, two years behind competitor Movistar. However, the market may be more mature now than it was then.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. To learn more about Tarifica, please visit www.tarifica.com 

Sigfox in €50 Million Fundraising Drive

Sigfox, the French Internet of Things (IoT) company, reportedly plans to raise €50 million (US $63 million) to help fund its cellular network using unlicensed spectrum. In March 2014, Sigfox raised €15 million (US $20.6 million) to accelerate its network deployment in several European countries. Currently, its network is present in France, Spain, the Netherlands, Russia and the U.K., with a smaller network in place around the U.S. city of San Francisco. The company uses ultra-narrowband technology to connect devices using unlicensed spectrum.

Mobile operators have been investigating a diverse range of access technologies for M2M and IoT connectivity. Current obstacles include the lack of a single standard, requirements for energy consumption and channel spacing, security, and regulations on unlicensed bandwidth. Availability is another issue, as certain bands may only be available in certain regions. Incumbent mobile operators could leverage their extensive infrastructure and combine wide-area technology for accessing hubs and short-range technology for local access. The question is, will incumbent operators partner with companies like Sigfox—as Albertis Telecom did in Spain by deploying a dedicated 0G network (Sigfox’s term for its narrowband network)—or use their existing networks and complement them with narrowband technology?

Sigfox claims it can reach half the world in the next two to three years using its 0G network. So the debate continues—does the IoT need a new, tailor-made network with low energy consumption and simplicity of use, or can operators find a way to leverage their current networks in tandem with low-profile antennas and other narrowband equipment to address the congestion issues plaguing the industry today?

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues:  http://www.tarifica.com/TarificaAlert.aspx