Telenor ConnexionGlobal M2M connectivity provider

Lars Reuterskiöld, Telenor Connexion, Sweden

M2M Connectivity –

Key Learning’s from large-scale deployments

Telematics/M2M Telenor Connexion

Table of contents

• Telenor Group in Brief

• M2M Connectivity - what is happening in Europe?

• What are the new challenges for the Mobile Operator?

• What key learning's can be identified from initial large-scale deployments?

• Which M2M Connectivity Product & Services are critical?

• Summary: The new agenda for a M2M Mobile Operator

Telematics/M2M Telenor Connexion

• Revenues equaled EUR 12,2 billion in 2008

• 38.800 employees world wide

• Operations in 13 countries

• 164 million subscribers worldwide

• Telenor Connexion - addressing M2M market on an international level based on experience since 1999.

Telenor Group – in briefTelenor Group – in brief

Be inspiring

Be respectful

Make it simple

Keep promises

We are here to helpOur vision:

Our values:

Telematics/M2M Telenor Connexion

The European M2M connectivity marketplace

• The M2M market is entering fast growth phase now!

– Main pioneering sectors

– Main market drivers

– Telenor Sweden today: More than 1.3 million active M2M SIM

• Key connectivity trends

– M2M goes from national to international deployments

– Churn is close to zero

– Traffic volumes/usage tend to increase over time

– M2M uptake driven by vertical segments

– Volume business is within OEM connectivity - standardization

Telematics/M2M Telenor Connexion

When Telco meets the OEM/Manufacturing industry...

Mobile Operator

(connectivity)

OEM (product)

New Product & Services

New Mindset!New Business LogicsHow can we enhance the customers business/sales,

improve functionality, reduce cost and improve

quality?

New Technology demands

Telematics/M2M Telenor Connexion

M2M Connectivity Evolution Phases and increasing customer demands...

Nu

mb

er

of

Un

its

Pilot testCommercial Trial

Standardization

Globalization

Main OEM Customer Phases

Key Customer demands:

Tailored Business logics

Reliability & Large-scale prod./operations

Global Service management

Telematics/M2M Telenor Connexion

Key learning’s from large-scale M2M deployments…

Key M2M Learnings

• Tailored Business Logics

– Price models & billing supporting the customer business model – full flexibility is essential

– Single sourcing - Centralized solution, Global SIM, international markets

– Cost control

• Solutions fit for large-scale production & operations

– Reliable communication platform scaled towards M2M unique scale & traffic behavior

– SIM-solutions for large-scale & different environments – eSIM

– SLA levels in line with industry standards – no more best effort

– Full testing capabilities

• Global Service Management

– 24/7/365 Global Support & Service Management

– Carrier geared towards continuous product development, testing and global market roll-outs in close customer co-op

– Vertical expertise throughout org (sales – product dev – support – operations)

– Remote Control Tools (Surveillance & Diagnostics, Device Management)

Telematics/M2M Telenor Connexion

The M2M mobile operator will have to adapt fundamentally in all aspects

Implementation & Operations Excellence

Customized Business Logics

Secure & Reliable Technology

M2M Connectivity

Telematics/M2M Telenor Connexion

Summary: M2M goes large-scale – and set the new agenda for the Mobile Operator …

Summary

From Best Effort… …to integrated business critical communication & full SLA

From hundreds of SIM / case …to hundreds of thousands of SIM – influencing all aspects of the delivery & operations

From national focus… …to international deployments

From people communication …to machines interacting with mobile network

From pure Telco expertise… …to vertical industry expertise

From Telco supplier… …to long-term partnerships, joint product dev & testing and transparent business models. Connectivity part of customer core offering

From churn as a threat… …to long-term contract challenges

From ARPU… …to volume in units and life-time value

Telematics/M2M Telenor Connexion Summary

Thank you!

“Telenor is the most advanced mobile operator in the area of M2M and is

estimated to have the largest installed base of M2M SIM-cards among all mobile

operators in Europe”

Source: Berg Insight, The European M2M Wireless Market Report 2007

Lars Reuterskiöld

International Business Manager, Telenor Sweden

lars.reuterskiold@telenor.com

Mobile: +46709335595