Telecom Partnerships

IOT enablement by Pacific Controls

Pacific Controls is a pioneering global leader, offering an unmatchable range of Internet of Things (IOT) solutions and services to governments and businesses. By enabling convergence of Information and Communication Technologies with M2M Applications, Pacific controls is optimizing costs, improving efficiencies and enhancing productivity for its customers.

By offering a complete package comprising of Cloud based IOT Platform, big data analytics, extensive range of IOT applications, device integration capabilities, monitoring capabilities, effective businesses processes and business skills transfer, Pacific Controls is enabling telecom operators to seize IOT opportunities in an accelerated mode.

Challenges faced by Telecom Operators

Telecom operators across the globe are realizing that world is entering into a new era of connectivity. IOT is facilitating new business models, generating Incremental network traffic for carriers, improving asset efficiency for businesses, new applications for developers and system integration opportunities for IT players. IOT offers massive revenue growth and cost saving opportunities for all stakeholders.

Telecom operators are increasingly finding themselves into a situation where ARPU from traditional core services (e.g. Voice and Data) are decreasing. Deregulatory regimes across the world is also intensifying competition and driving prices down. The competition is not only coming from traditional telecom players but a great deal of pressure is coming from New Media; facebook, Skype, WhatsApp, GoogleTalk and many more. Additionally many of the core telecom services are reaching saturation point. For example mobile phones penetration in many countries is already exceeding 100 percent. With decreasing ARPUs, saturating markets, intensifying competition, many telecom operators are facing serious challenges to maintain or grow their revenues and profitability.

M2M connectivity is emerging as a new revenue stream for telecom operators. Industry is projecting 23 percent annual growth in M2M revenues. One study projects 11.2 billion M2M connections in 2020, increasing from just over 200 million in 2014. Smart and connected devices are a global and economic phenomena of unprecedented scale- billions of devices are being connected to enable numerous new business services such as energy management, equipment management, security, life safety, big data analytics, city management, and many more. Any device that is not networked will lose its value. Today numbers of connected devices already exceed world’s population. As projected by Cisco, by 2020 total number of connected devices will exceed 50 billion – seven times the global population

A number of telecom operators find themselves offering simply connectivity services for M2M devices. Although number of M2M devices can be significantly higher than traditional handset services but connectivity ARPU can be significantly low. For example, ARPU from a handset could be 40 to 50 dollars while per connectivity revenue for M2M could be just around 2 or 3 dollars. This creates a challenge for operators to deliver low ARPU services in a profitable manner.

As per the GSMA report (2014) market size for value added IOT services will stand at US$ 422.6 Billion while merely 3.3 billion dollars will be delivered from data traffic (or connectivity). GSMA highlights that “connectivity will underpin the development of the Internet of Things, to avoid becoming commoditized, mobile operators need to leverage their networks’ potential to provide value added services”

Most telecom players are currently at a stage, where they are able to offer connectivity services, at best, and hence, focusing only on fraction of IOT/ M2M marketplace. Only a handful of operators are taking steps to advance M2M market development by establishing M2M divisions, deploying M2M specific technologies and working with partners to develop offerings. The key for Telecom operators to derive significant revenues from M2M/IOT market is to offer high value /high productivity services. These services could be energy management, smart city, connected healthcare, remote management of assets, after market services for equipment manufacturers and many more.

Embarking upon IOT Portfolio

Embarking upon developing a comprehensive portfolio to derive top line growth is daunting task. As alluded to in a recent Machina Study, “M2M applications are incredibly diverse, and a one-size-fits-all approach will never work. Understanding the make-up of the applications characteristics is key to understanding the market opportunity” The report further states “The data streams produced by a connected home weather station and a smart electricity meter may look similar but there are several key differences:” Machina Research identifies the 27 key characteristics that define an M2M application, which are as diverse as security, billing, device integration, geographical coverage, analytics, access to power, and application complexity.

Many telecom operators have been struggling for years to build such as a portfolio with little success. They find themselves in a fix, facing challenges such as:

  • Fragmented value chain of M2M/IOT - many different devices without universal standards, legacy equipment, diverse gateway products, immature applications and so on and so forth
  • Lack of domain Knowledge of many industries – transportation systems, airports, water, waste, energy, healthcare, consumer devices, home automation, building management, and mobile assets - as highlighted by Machina, each of these present diverse situations and one size does not fit all situations.
  • Diverse machines and many different processes
  • Non-availability of an off the shelf IOT platform that is capable of providing complete end to end services – integration of diverse devices supporting many different protocols, data capture, data analytics, data visualization, alarm monitoring, remote management, etc.
  • Typically, telecom operators have access to a few stand alone IOT solution providers, who can provide few stand alone solution – which are neither are capable of delivering full benefits nor can be scaled to deliver high volumes.

Pacific Controls Value Proposition for Telecom Operators

A key recommendation to accelerate market entry, offered by industry experts is to establish partnership with credible IOT players. Pacific Controls has been in M2M market space for the over a decades, currently integrating and managing millions of devices in different parts of the world. The company is frequently acknowledged by Industry experts for its innovation and ability to deliver M2M solutions. Through its unique value proposition, Pacific Controls can help telecom operators to offer a comprehensive set of IOT services to a whole range of Industry verticals, deriving significant revenues. Pacific Controls’ Proposition enables

  • Speed to market – within 120 to 150 days, telecom operators are able to offer a comprehensive set of M2M solutions and services
  • Operators need not invest heavily in building platform, deploying technologies and developing processes- Pacific Controls can enter into arrangements that can be tied to revenue generation
  • Telecom operators’ sell under their own branding, on a locally hosted platform.
  • Best of breed IOT solutions that have been tested in various parts of the world for their powerful value propositions – reducing costs, eliminating operational inefficiencies, increasing life of assets, and enhancing productivity
  • Accelerated revenue ramp-up through market ready package
  • Minimal administrative overheads
  • Enhanced customer stickiness through up-selling / cross selling of IOT
  • Higher connectivity revenues
  • Higher usage by Mobile phone subscribers – pull through effect of IOT applications
  • Ability to partner with cities to develop smarter cities through an accelerated program that minimizes City investments and time to market.

Pacific Controls package comprises of:

  • A unique and powerful IOT Platform dedicated for telecom operator
  • Ready IOT portal under telecom operators’ branding, and powered by Pacific Controls
  • Best of breed IOT applications – tested across the world – comprehensive list of current offering for various verticals refer to IOT Solutions
  • Smart City Package for accelerated take-up of smart community offerings
  • Market ready Collaterals - brochures, case studies, use cases, and other sales material – as per telecom operator branding
  • Proposal templates
  • Business processes
  • Sales and technical Skills transfer
  • Sales, pre-sales, implementation, monitoring and management
  • Pricing Tool – VB/Excel based model to quickly work out pricing
  • Proposal templates
  • Deployment of unique Command and Controls Centre within telecom operators facility
  • Long term partnership that continuously enhance offerings
  • Tied up success through revenue sharing arrangements.

Engagement Model

Pacific Controls follows a well tested structured engagement model; hat can help achieve a market rollout within 16 to 20 weeks time frame. The process typically starts with initial contact and progress through exploratory, assessment, commitment, market readiness, execution and rollout phases.

  • Initial exploratory stage would involve establishing trust by signing NDAs, value proposition discussions with the objective to achieve principle understanding to proceed further
  • Assessment phase provides an opportunity to develop a joint proposition, develop business plan, agree on high level engagement terms and obtain respective approvals
  • Commitment phase firms up engagement between the parties by finalizing a definitive agreement, including all financial arrangements
  • Once a firm commitment is achieved, market readiness activities are initiated. This phase could be accelerated by the fact that a great deal of work is already in place, which can be utilized by the partners to achieve speed to market.
  • Deployment /execution phase involves deploying systems. This stage may involve deployment of command centre (where relevant), execution of branded portal, roll out of business processes and training / skills transfer for business as well technical resources.
  • Products/Services are finally rolled out with a complete recipe for success. A continuous feedback mechanism is in place, which helps enhance portfolio on an on-going basis.

For more information on Pacific Controls’ proposition, please contact us