O2 Telefónica is launching a new global partner model that puts M2M revenues into the hands of all partners wanting a share of the booming connected devices market, explains Anton Le Saux, Head of Connectivity and Partner Sales at O2 Telefónica UK.
O2 Telefónica has been working in the M2M sector for more than 15 years, recognising how people were using its network for simple telemetry applications and how that use would evolve. Since then, the investment has grown and Telefónica Digital has been created with a core goal of putting Digital at the heart of our customer experiences, and M2M is one of the key markets within Digital. M2M and the Internet of Things (IoT) is at the top of our investment decisions and this is reflected in the leading solutions we have already launched, as well as those we are working on now.
This year we believe that the IoT will be realised, with a number of physical things becoming Internet enabled and creating networked services and solutions. As we see the M2M space change from a previously business and public organisations targeted approach to more consumer friendly, it means technology is becoming more affordable for everyone. From fitness and entertainment gadgets, to a fully smart home, people are quickly realising the benefits from integrated technologies which use M2M solutions. The world's largest M2M contract win to date consists of delivering smart metering communications to have over 53 million smart meters installed across the country by 2020. This opens up endless possibility for providing solutions and technology to a much wider market than was considered in the past.
At O2 Telefónica we have always believed that we can deliver the best value, with our service and reach to end customers, achieved through a strong partner model. We have had significant success with this in the UK, however we consider M2M to be a global solution and as such we need to have a global platform for our partners in order to take this to market. For some time now we have had a global sim product available to our partners that will allow customers to roam across all of the UK networks, and agreed pricing for roaming across 390 other networks in 173 countries. But the challenge has been taking this to market in a simple and transparent way.
The new Global Partner Programme has been developed with this in mind. There are three key principles we have used: transparency in the relationship model, simplicity in the way of working, and we offer a journey with different steps in the way we develop our relationship with the partners. We will give partners access to all of the tools that our own internal teams use, enabling them to self-serve and create the best deals for their customers. And they will have full access to our platforms for on-going management. The programme we launched in the UK is also launching in our other operating businesses, so whether our partners are targeting business in the UK, Spain, Germany or North America, they will get the same service and access to local products and local pricing.
With the explosive growth we are seeing in M2M, we also need to make sure everyone that is operating as a comms supplier has access to and the ability to sell M2M products and services via O2 Telefónica. Our current priority is to launch the Global Partner Programme in all of our operating businesses. A soft launch is taking place now and we will do a full launch at Mobile World Congress. Our plans are to create a platform that will allow everyone in the comms industry to be able to identify M2M opportunities in their base and facilitate their customer needs.
All registered partners will have access to our Partner Portal and a range of tools that will allow them to be self-sufficient and deliver the best deal for them and their customers. The portal will give access to our global price list so they will be able to tailor a deal specifically for their customer. There are a number of quotation tools in the portal that will enable partners to build the deal; there are worldwide RF coverage locators, deal management tools, service management tools, partner locators and much more. They will have access to everything they need to be able to create the right proposition for their customer at the best price and then make sure it is managed in life.
Our biggest challenge to date is getting businesses that operate in the telecoms industry to understand M2M and the value it will bring to their business. To address this we will be doing our best through 2014 to educate partners and help them to understand the benefits. In a few years, billions of devices will be connected to the Internet in order to be smarter and more efficient. The IoT and M2M technology are inevitable and the solutions provide us all with an opportunity to significantly improve the way we do things. Once you look at the whole solution it is easy to see where there is real value and how to generate revenue. And if you look at the average telecoms dealers base there are many customers of all sizes that could and at some point in the future benefit from a M2M solution so if the incumbent does not identify this, someone else will.
There are many analyst projections that M2M is growing at 25 per cent year-on-year. Our focus and objective is to make sure that O2 Telefónica and its partners are best placed to capture this growth, through delivering a fantastic customer experience and solutions that make a difference. Partnering is key. Partners can offer so much more value and service to an end-user than the network will ever be able to. As a network operator we have to do everything we can to make it as easy as possible for the partner to do business and make money from our services. We have done this in the past by having just a select number of partners in the channel that we can work with closely. With the explosion of M2M it is impossible to have the resource to manage all the new entrants in this way so we have to do this via other means.
As such, we have developed a Partner Portal that allows all partners to be completely self-sufficient while having access to a team of accounts managers and operations support where needed. Because the partner is getting access to our product and services via a portal whether they do business in the UK, Spain or both countries, they will have the same experience and the same opportunity to succeed. One global product, one global price list and one global relationship.
O2 Telefónica is part of the M2M World Alliance, which helps us promote the adoption of M2M worldwide by giving our customers the ability to operate connected devices globally at a reduced cost. We understand that customers are looking for a simple M2M solution, from a single trusted service provider. They want a business partner that speaks to them in a human way, taking away the jargon and tech speak to cut to the chase. They want help with making their businesses grow and work smarter, and with our full end-to-end solution and control centre we can help unlock new opportunities, reduce costs for customers and provide brilliant digital experiences.
2014 is set to be an exciting year full of surprises for M2M as we progressively see an effective transformation of value chains. As M2M technology continues to develop, we will be able to do things more efficiently and see our world in a different way. •