Presentation at M2M Forum Europe about the strategy of alliances of Telefónica M2M, by Enrique Menduiña.

1. m2mTelefónica - M2M Global
Operator – Strategy of
Alliances
Telefónica Digital | Global M2M
June 2013

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Index
Introduction
01
02
03
01
02
03
Creation of the M2M Ecosystem. Strategy
Conclusions. Main Messages.

3. 01Introduction

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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.

5. 02Creation of the M2M Ecosystem. Strategy

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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

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…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 Revenues
o Reduce costs: Roaming + Economies of Scale
 Scope
o Collaboration in Marketing and Commercial,
o M2M Horizontal & Vertical Solutions,
o Technology and Procurement
o Focus on services for Transnational customers, mainly MNCs - via Roaming or local lines.

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Bilateral Alliances – Coverage.
Global CoverageGlobal Coverage
Telefónica
Sudan
Sweden
Norway
Denmark
Serbia Turkey
Hungary
Montenegro
China
Saudi Arabia
UAE
Libya
IndonesiaTanzania
Nigeria
Benin, Gabon,
Togo, Ivory Coast
Egypt
Niger
Philippines
India
Bangladesh
Malaysia
Pakistan
SingaporeSri Lanka
Thailand
India: Etisalat, SingTel, Telenor
Pakistan: Etisalat, SingTel, Telenor
Indonesia: Etisalat, SingTel.
Bangladesh: SingTel, Telenor
Thailand: SingTel, Telenor
Etisalat
China Unicom
SingTel
Telenor
Avea
Sunrise

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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

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 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!

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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

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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.
Ireland
Belgium
Slovakia
Spain
Italy
The Netherlands
Algeria Libya Egypt KSA
Central African R.
Australia
New
Zealand
Japan
Sri Lanka
Indonesia
Philippines
Armenia
Georgia
Kazakhstan
Uzbekistan
Kyrgyzstan
Tajikistan
Cambodia
Laos
Afghanistan
Myanmar
Ukraine
Singapore
Burundi
Zimbabwe
Benin, Gabon, Ivory
Coast, Togo
Niger,
Nigeria
UAE
Tanzania
Sudan

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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

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…A Subscription Management System will be implemented
“Over The Air” Subscription Manager*
* Subscription Manager or Federation of
Subscription Managers
Global SIM.- with provision subscription

15. 03Conclusions. Main Messages.

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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.

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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).

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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. 19
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