W001 - World Visions Orario 09.30 – 13.00 Sala 4 TECHNOLOGIES, PARTNERSHIPS & BUSINESS MODELS Developing new value-added services in the navigation markets

1. 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

2. Telenor Group – in brief
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

3. Telenor Connexion – A telematics & M2M company
– Since late 90’s, Global provider
– Independent company within Telenor Group
SIM cards and mobile
network worldwide for – Specific M2M platform and roaming
telematics & M2M: – Very large installed base, clients in 5 continents
Automotive
Intelligent transport
PND
Logistics
Smart metering
Security
Asset management
Point of Sales
Health Care
Environmental Care
Energy

4. Telenor Connexion in the telematics / M2M chain
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)
Contribute with Engineer your M2M device
know how (modem, antenna, etc.)
Through trusted partners and
in-project participation
Connect your devices
Core competence (SIM cards and network)
and service

5. How do clients buy telecoms for telematics & M2M?
• 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

6. How do clients look at pricing?
The consumer mindset The M2M mindset
Local Roaming Lifetime of the product
Per minute Order to cash cycle
In country coverage
Per Mbyte
Sales & distribution standardisation
Maintenance cycle
Activation & minimum duration
Indexed to client’s business model
Unexpected costs
Cash flow / working capital issues
Risks

7. How do clients look at technical functionality?
The consumer mindset The M2M mindset
Roaming behaviour
Session length
GPRS, SMS, CSD Supply chain
Activation Support process
Security
Back up & restart
Monitoring when roaming
Temperature range
Battery consumption
…

8. What is really important for clients?
How the Telco impacts
• Does the same solution work in all countries?
• Easy new market entry with a Global solution?
Market reach
• Smooth M&A?
• Single and multi-operator coverage in and across countries?
Reliability of
• SIM resistance to environmental conditions?
the client’s
• Separation between M2M service and traditional voice service?
end products
Customer • Prevent / fix issues quickly through one stop support team
service to the – Telco’s visibility on the roaming partners network
client’s – Traceability at SIM level
clients

9. What is really important for clients?
How the Telco impacts
• Can devices be manufactured centrally or off-shored and sent
Low to any client in any country?
manufacturing • Does the SIM card allow automation of manufacturing &
costs assembly?
• Customised business logic in the SIM?
Differentiate
• Customised SIM ordering process and logsitics?
from
competition
• Independence from local operator network?
Business • Can use and switch to any network without product recall?
protection • Redundancy of M2M platforms?

10. What is really important for clients?
How the Telco impacts
• SIM number range?
• Responsive SIM manufacturing and shipping logistics?
Scalability
• Big or variable order size?
• Telco’s brand will be visible to the client’s end client
– Artwork on the SIM
Client’s brand – Customer service
– Roaming network
• Dedicated APN, VPNs, security rules for each client, etc. ?
Prevent • SIM locking for specific device (IMEI)?
Fraud

11. What is really important for clients?
How the Telco impacts
Correct • Can every single SIM/device be tested before delivery to end
Delivery of user (without generating billable traffic) ?
client’s
products
• What administrative and billing overhead will be generated?
Efficient
– Reconciliation of traffic and invoices
supplier – Activation and de-activation of SIM cards
management
• SIM life cycle matching client’s product life cycle?
Return on • Internal start up, operational and support costs usually much
investment higher than the Telco’s bill

12. Conclusion
The client’s dilema:
It is very cheap but I can’t pay it
It is very cheap but it doesn’t work
SIMs that work in devices that work for
businesses that work

13. Telenor Connexion – your global
M2M connectivity partner