How does the Telco impact the client’s business model

Pablo Contreras

Global Business Development Executive

pablo.contreras@telenor.com

Tel: +41 78 732 69 78

Revenues equaled EUR 12,3 billion in 2008

44.000 employees world wide

Operations in 13 countries, 367 roaming networks in 192 countries

166 million subscribers worldwide

Unitech wireless in India since 2009

Our vision:

We are here to help

Our values:

Be respectful

Make it easy

Be inspiring

Keep promises

Telenor Group Telenor Group –– in briefin brief

Telenor Connexion Telenor Connexion –– A A telematicstelematics & M2M company& M2M company

– Since late 90’s, Global provider

– Independent company within Telenor Group

– Specific M2M platform and roaming

– Very large installed base, clients in 5 continents

SIM cards and mobile

network worldwide for

telematics & M2M:

Automotive

Intelligent transport

PND

Logistics

Smart metering

Security

Asset management

Point of Sales

Health Care

Environmental Care

Energy

SIMs that work in devices that work for businesses that work

Run a business project(i.e. real time service, usage based billing, etc)

Run an M2M project(remotely retrieve data and update contents)

Engineer your M2M device(modem, antenna, etc.)

Connect your devices(SIM cards and network)

Contribute with know how

Core competence and service

Through trusted partners and in-project participation

Telenor Connexion in the Telenor Connexion in the telematicstelematics / M2M chain/ M2M chain

• Typical criteria when choosing a Telco

– Pricing

– Technical functionality

• Less frequently

– Vendor management

– Business model

No questions on critical topics

Not the right questions on the traditional topics

How do clients buy telecoms for How do clients buy telecoms for telematicstelematics & M2M?& M2M?

Unexpected costs

Cash flow / working capital issues

Risks

The consumer mindset

Per minute

Per Mbyte

Local Roaming

Activation & minimum duration

The M2M mindset

Lifetime of the product

Order to cash cycle

In country coverage

Sales & distribution standardisation

Indexed to client’s business model

Maintenance cycle

How do clients look at pricing?How do clients look at pricing?

The M2M mindsetThe consumer mindset

GPRS, SMS, CSD

Activation

Roaming behaviour

Session length

Supply chain

Support process

Security

Back up & restart

Monitoring when roaming

Temperature range

Battery consumption

…

How do clients look at technical functionality?How do clients look at technical functionality?

What is really important for clients?What is really important for clients?

How the Telco impacts

Market reach

• Does the same solution work in all countries?

• Easy new market entry with a Global solution?

• Smooth M&A?

Reliability of the client’s

end products

• Single and multi-operator coverage in and across countries?

• SIM resistance to environmental conditions?

• Separation between M2M service and traditional voice service?

Customer service to the

client’s clients

• Prevent / fix issues quickly through one stop support team

– Telco’s visibility on the roaming partners network

– Traceability at SIM level

Low

manufacturing

costs

• Can devices be manufactured centrally or off-shored and sent to any client in any country?

• Does the SIM card allow automation of manufacturing & assembly?

Differentiate from

competition

• Customised business logic in the SIM?

• Customised SIM ordering process and logsitics?

Business protection

• Independence from local operator network?

• Can use and switch to any network without product recall?

• Redundancy of M2M platforms?

What is really important for clients?What is really important for clients?

How the Telco impacts

Scalability

• SIM number range?

• Responsive SIM manufacturing and shipping logistics?

• Big or variable order size?

Client’s brand

• Telco’s brand will be visible to the client’s end client

– Artwork on the SIM

– Customer service

– Roaming network

PreventFraud

• Dedicated APN, VPNs, security rules for each client, etc. ?

• SIM locking for specific device (IMEI)?

What is really important for clients?What is really important for clients?

How the Telco impacts

Correct Delivery of

client’s products

• Can every single SIM/device be tested before delivery to end user (without generating billable traffic) ?

Efficient supplier

management

• What administrative and billing overhead will be generated?

– Reconciliation of traffic and invoices

– Activation and de-activation of SIM cards

What is really important for clients?What is really important for clients?

How the Telco impacts

Return on investment

• SIM life cycle matching client’s product life cycle?

• Internal start up, operational and support costs usually much higher than the Telco’s bill

SIMs that work in devices that work for businesses that work

ConclusionConclusion

It is very cheap but I can’t pay it

It is very cheap but it doesn’t work

The client’s dilema:

Telenor Connexion – your global M2M connectivity partner