It’s Electric – Powering Tesla Connectivity

Telefónica’s pioneering in M2M connectivity doesn’t stop at the connected home – it extends to the driver’s seat, as well. Further differentiating through leadership in a fast-growing market, Telefónica now provides M2M connectivity for Tesla Model S in Europe. Telefónica’s solution enables the navigation, online music, browsing and remote vehicle diagnostics capabilities in the automaker’s electric cars.

Connected cars tap into Generation Cloud’s desire for engagement and rapid response times. For example, Telefónica’s connected car solution allows cars to provide instant status updates and communications including their health, location, monitoring of driver behaviour, road-related alerts and more. Leveraging such a solution gives auto manufacturers a chance to refresh “old” technology as being intelligent, connected to the cloud and fine-tuned to the user experience.

As with the smart metering program in the UK, Telefónica’s move to provide automotive connectivity is a way to not just differentiate in the current market but also invest to drive its future growth; according to SBD, the connected car market will expand from €13 billion in 2012 to €39 billion in 2018.

As the market for traditional data service plans becomes saturated, connected car services present a tremendous opportunity for digital and communications service providers to tap into and grow new revenue streams, and build even more tightly linked business partnerships and relationships with Generation Cloud.

It Pays to Connect Things and People

“OPERATORS MUST EMBRACE THE CHANGES THAT M2M TECHNOLOGY IS BRINGING NOW, EVEN WHEN THE PROLIFERATION OF CONNECTED DEVICES IS RENDERING YESTERDAY’S BUSINESS MODELS OBSOLETE.”

The clear trend for Generation Cloud users is to adopt smart devices that give them more control over their work, play and even transportation. Telefónica, by establishing itself as a foremost M2M connectivity provider, with strongholds in high growth areas like smart meters and connected cars, is securing a long-term spot at the table with Generation Cloud. The communications service provider’s early successes in the M2M market aren’t going unnoticed by industry watchers, either. In fact, Telefónica was recognised as a ‘leader’ by Gartner in its 2014 Magic Quadrant for Managed M2M Services.

Telefónica’s M2M strategy is not just paying off in terms of revenue streams and analyst accolades – it’s also generating new partners, including smaller companies and startups. Telefónica UK’s Global Partner Programme (GPP), for example, has more than 250 M2M partners.

As explained by Anton Le Saux, Head of Connectivity and Partner Sales at Telefónica UK, some of these partners previously faced resource barriers to achieving global scale, but the GPP helps them grow and innovate more rapidly, “offering a level playing field on pricing, international presence with a global SIM, access to local support and a platform without any volume commitment. It has opened up global markets for them, competing with established organisations but remaining the nimble, entrepreneurial businesses they are.”

This spirit of cooperation and innovation shows that Telefónica understands something important about the IoT – it’s not just about connecting things but about connecting people and creating the digital moments they desire, too. With their decades of experience collecting, processing and refining data, digital and communications service providers like Telefónica have a tremendous opportunity to piece together information from the diverse array of data sources in the IoT landscape, and gain immediate, actionable insights to help better serve Generation Cloud and support further development of the connected economy.

Operators must embrace the changes that M2M technology is bringing now, even when the proliferation of connected devices is rendering yesterday’s business models obsolete. They are best positioned to enable true connectivity and automation, whether for connected homes, cars or anything else in the IoT. Generation Cloud won’t wait around for digital and communications service providers to catch up – they need to be connected to the people and things that matter, now! So, operators must be one step ahead and prepared to deliver the services of Nexterday.

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