Telematics: Releasing the Brake

Telematics: Releasing the Brake

The core competence of Telematic Service Providers (TSPs) is an offer comprising one or more applications, not so much on hardware or back-end infrastructures. However, a typical solution involves the vertical integration of these three components. That has resulted in a fragmented market and a penetration rate that does not reflect the potential and economic importance of this sector.

How can we change that scenario?  As in many other sectors of our high-tech economy, the key that will open up the market is one that will allow telematic applications to run on open platforms.  That is the PC – smartphone model.  Easy to state, harder to realize; but doable. 

Employing Telit modules for telematics applications enables seamless connectivity to a comprehensive portfolio of back-office, cloud-centric services. This means that TSPs, established vendors and new entrants, can focus on the apps, which are their core competence. It also allows hardware vendors to ship aftermarket devices that can be demonstrated almost immediately, thereby accelerating time-to-market.

The cellular modules, GE866 (2G) and UE866 (3G) were specifically created for deployment in dongles, where real-estate space is very limited.  They are not generic products: the design reflects detailed discussions with TSPs and hardware vendors as well as the knowhow and experience of Telit’s telematics specialists.  GNSS functionality is supplied by the ultra-compact SE868 V2.

It's a unique concept, a value proposition that brings all the hidden pieces of a telematics solution together and enables fast, easy implementation of a TSPs’ service offer. This means that their focus can be on the apps and marketing their offer.

 

THREE TAKES ON THE VALUE PROPOSITION 

The market divides into three categories: (1) hardware vendors; (2) new TSPs, i.e. entrants and (3), established TSPs. Requirements in each category vary, but the objective in all three is the same: open up the market and deliver telematic services that capture the demands of the current and upcoming, increasingly connected worlds.

Hardware vendors: in order to market their products these companies need to establish a business relationship with a TSP and that can only be realized after the product’s performance has been evaluated.  Let’s take a hypothetical but realistic scenario: a vendor located on one side of the world approaches a large insurance organization that’s on the other side. Evaluation would involve purchasing a few SIMs and setting up a Web service that would track the products. That’s too much of a hassle for a large corporation.

This means a lot of vendors are effectively locked out of this sector, even though they may have innovative, competitive devices.  However, when they embed Telit m2mAIR SIMs inside their devices, they can employ the Telit starter kit in order to logon to a demo site. This can be done in a few minutes — it’s a hassle-free process. The prospect would not only see that the hardware works, but they would also witness the advanced functionality of our back-office services, e.g. locations shown on Google maps. 

New TSPs: new entrants want to focus their resources on the front-end application.  This is what customers see and experience. Focusing on this part of the solution allows new TSPs to differentiate their offer.  Whether they want to design their own device, or outsource it from box vendors, when Telit m2mAIR SIMs are embedded in the device connectivity to the open platform will be established: this is a seamless process and it eliminates the need for TSPs to create their own back-end infrastructure, which would be an expensive, time-consuming exercise.  In addition, Telit’s m2mAIR infrastructure features a robust set of m2mAIR value-added services that are hosted in the cloud, as well as seamless connectivity to leading MNOs, national and international.  Therefore time-to-market is cut to the bone. 

This represents an impressive combination of different technologies that will allow new entrants to offer equally impressive solutions.  It also a unique value proposition, a plug and play solution that validates our ONE STOP. ONE SHOP. brand.  

Established TSPs: It’s clear that established TSPs have everything they need to operate a service, but in many cases their back-office system would have been designed three or more years ago and that is a long time in high-tech circles.  Issues can arise, e.g. scaling the solution or increasing the security.  Migrating from a proprietary solution to our open, cloud-centric platform removes these constraints and it also allows these TSPs to focus on expanding the functionality of their offer. In addition, they may want to expand into new geographic markets or better coverage might be needed in their domestic market.  This requirement can be realized using m2mAIR SIMs, which as indicated in the previous section, enable global connectivity as a result of agreements with leading MNOs.  

CONCLUSIONS 

The combination of telematic-centric modules, an open platform having advanced device and network management functionality plus seamless connectivity to MNOs is a groundbreaking development and it is set to stay that way.  Telit is committed to providing all the tools TSPs need to create turnkey offers as quickly and economically as possible, as well as the ongoing enhancement of the functionality of the modules and the back-office services.

For the latest telematics trends, check out Telematics Munich 2014 on November 10-11 in Munich, Germany, Connected Fleets USA on November 20-21 in Atlanta, USA and Consumer Telematics Show 2015, January 5 in Las Vegas. 


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