Telefónica Named A Global Leader in M2M
2013 benchmarks by Analysys Mason and Machina Research both place Telefónica as a global leader in the provision of Machine-to-Machine (M2M) communications services.
Telefónica Digital has been highlighted as a global leader in M2M Communication Service Provision (CSP) by two separate analyst houses. Analysys Mason, in their 2013 M2M Scorecard, placed Telefónica in the ‘Industry Icons’ category. While in their annual benchmarking study, Machina Research noted that ‘Telefónica is the company that has done most during the last 12 months to strengthen its position in M2M’.
The analysts’ research is a strong endorsement of the steps and investments Telefónica has made to bolster its global M2M capabilities. This includes taking a lead role in creating a multi-operator alliance which now includes eight leading mobile operator groups. It reflects the development of in-house platforms, such as its Smart M2M platform, as well as forming the right partnerships to operate in both the horizontal connectivity and vertical value added services markets.
Analysys Mason’s 2013 M2M CSP Scorecard ranks providers in one of four categories: Industry Icons, Trailing Titans, Challenged Underdogs and Niche Notables. The Industry Icons category, in which Telefónica was placed, are those companies that dominate the M2M market, have the largest M2M business and the best capacity to co-ordinate their teams, network, partnerships, strategy and R&D. In the case of Telefónica, Analysys Mason highlighted its centralised structure and partnership philosophy*.
In their 2013 M2M CSP Benchmarking Study, Machina Research compared six key areas: Pedigree, Platform, Place, Partnerships, Process and People. Based on ratings across each of these areas, Machina Research identified a clear top tier of four CSP global leaders, of which Telefónica was one. Machina particularly praised Telefónica for its excellent coverage of Latin America and good coverage in Europe, strategic alliances, strong R&D capabilities and multi-carrier IMSI swapping arrangements.
The two firms were not the only ones to highlight Telefónica’s progress in the past year. In its annual M2M Roundup report, Current Analysis states that Telefonica has worked hard to develop solutions that go beyond connectivity sales. It is increasingly involved in value-added services and end-to-end integration, especially in e-health, financial services, and security, where it has dedicated practices. It has also developed end-to-end solutions in fleet management, asset tracking, point of sale, usage-based insurance, ‘smart taxis,’ consumer electronics devices with multiple payment models, and a smart meter-reading platform for utilities.
“All three reports reflect the strong momentum we have in our M2M business,” said Carlos Morales, Director of M2M and Cloud at Telefónica Digital. “They are also a great endorsement of our approach to this market, combining our excellent R&D capabilities with the right alliances and partnerships to meet the needs of a wide variety of customers.”
Commenting on Machina’s findings, the author Matt Hatton said, “Telefonica has every reason to be very proud this year. It has had a great year in M2M. The lead role it played in the multi-operator alliance, strategic arrangements with the likes of Telit and Masternaut, and a move up the value chain into products such as usage-based insurance all helped to persuade us that Telefonica deserved a place as one of the top tier of global M2M CSPs.”
Steve Hilton at Analysys Mason said, “we ranked Telefónica as an Industry Icon having created a strong set of partnerships and having a fairly high level of commitment from these partners. We also believe the creation of Telefónica Digital has given it the right organisational structure with a dedicated M2M services team.”
Kathryn Weldon at Current Analysis notes that Telefonica has‘shown innovation and focus, with many end-to-end solutions and integration services capabilities that are key to the growth of the market’.
*Analysys Mason,M2M scorecard for communications service providers: 2012, by Steve Hilton, 22 January 2013, Survey report,(format: PDF (22 pages); Excel)http://www.analysysmason.com/Templates/Pages/KnowledgeCentreArticle1.aspx?id=12640)
About Telefónica Digital
Telefónica Digital is a global business division of Telefónica. Its mission is to seize the opportunities within the digital world and deliver new growth for Telefónica through research & development, venture capital, global partnerships and digital services such as cloud computing, security services, mobile advertising, M2M and eHealth. It is also driving innovation in over the top communications under a new umbrella brand called TU and in Big Data through Telefónica Dynamic Insights. Telefónica Digital will deliver these new products and services to Telefónica’s 316 million customers as well as entering new markets. It is headquartered in London with regional centres in Silicon Valley, Sao Paulo, Spain and Tel Aviv. Jajah, TokBox, Terra, Media Networks Latin America, 48 and giffgaff are all managed under the Telefónica Digital umbrella.
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For more information about m2m business, visit m2m.telefonica.com or follow on Twitter at @m2mtelefonica
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