Tele2
M2M APPS: What does Tele2 offer?
OLESYA VLASOVA: Tele2 is a Russian expert in the telecommunication sector. Its services are extended to 11 European countries providing state-of-the-art communication to over 34 million subscribers. Tele2 has recently been classified as the fastest developing cellular operator in the Russian market. It is renowned for its efficient yet discounted personal and European business service. Tele2 provides cellular coverage in as many as 42 regions in the Russian Federation to over 20-million subscribers.
M2M APPS: Can you describe Tele2´s M2M service and what makes it unique?
OLESYA VLASOVA: Tele2 Russia was the first to launch a ‘machine-to-machine’ service in the Russian market at a competitive rate. Also known as M2M, it provided remote data transfers from one device to another. It gave rise to mobility through on-the-move monitoring by visual and auditory surveillance of specific sites such as transportation, housing, business and municipal-areas. The main advantage of the new tariff is its low cost service. Tele2 M2M services are based on SMS- and GPRS-technologies. The 2G standard operated by Tele2 is an efficient and easily accessible one. 90 percent of the current M2M market is still based on this technology. It enables the customers to use their respective devices without requiring an upgrade to a 3G system, therefore avoiding extra expenses. Tele2 is re-introducing a low global price which is uniform, both for the private and commercial services in all regions. The company is also re-launching the services with the intention of giving a national network. Its aim is give subscribers easy access to the globalized world of technology. The Machine-to-Machine services, launched in all Tele AB markets, are committed to offering the best price for efficient communication. The company strongly believes in making the world’s long distances look shorter through easy-to-reach globalized measures.
M2M APPS: What are the current global trends in the M2M market?
OLESYA VLASOVA: First of all there is a decrease in prices and an increase in efficiency. According to Gartner Research there was a gradual decrease in price of 50 percent in the last 5 years. Chinese Telecommunication companies are contributing to the decrease in prices with the introduction of competitive tariffs. Secondly, M2M service is becoming cheaper by time. It is also going to be priced on a per unit basis, by providing M2M services within the package. The price for M2M has also moved from limited MB to GB, from a price per unit to a price per bundle, from a M2M option to M2M inclusive bundles, from a one-to-one client to a business-to-business-to-consumer (B-to-B-to-C) arena. Furthermore M2M is also providing an effective way for subscribers to control other systems from a longer distance. In certain circumstances this is causing a drastic decrease in expenses in human power while providing more efficiency. Finally, in M2M technologies innovation may come from the implementation of Life-time-SIM and Open-SIM-concepts. Needless to say, that the current trends show that the average revenue per unit (ARpU) is decreasing. Tele2 has anticipated this drop down and has its focus on decreasing the price per capita while gaining more customers through efficiency and higher service standards.
M2M APPS: What is the main challenge for Tele2?
OLESYA VLASOVA: The main challenge when working for Tele2 Russia is the lack of national coverage which is a barrier to B2B subscribers with their extended branch network. Until now we have been reaching out for local segments which do not need a consistent nationwide coverage, such as Taxi services and others. This has been a long-term challenge which Tele2 was not happy with. Although it has provided the service efficiently, Tele2 is an enthusiast and has never stopped to work towards excellency. Nowadays we are proud to present our hard work and great results where we have proved to be one of the leaders in telecommunication.
M2M APPS: What are the future aspirations for Tele2?
OLESYA VLASOVA: I humbly say that we need to keep working hard towards improving our services while upgrading to the fast moving technological world. I must also say that one of our biggest investments is to equip ourselves with good employees who can give the most to their jobs. We also intend to give a service focused on efficiency. Tele2 aims to be the harmonizing mediator between people and communication. The future goals are providing a bigger M2M service in smaller devices, improve energy saving (especially for remote monitoring systems) and provide an uninterrupted coverage area with safe controlling security applications. The main aim is to make the communication of devices in different parts of the world connected to each other in a unified way through M2M. Tele2 is also committed to keep improving the existing services by making it faster and more reliable. We want to keep decreasing tariffs while increasing efficiency.
M2M APPS: What is interesting and less interesting about M2M?
OLESYA VLASOVA: Although I must acknowledge the fact that the situation differs from market to market, country to country and company to company, in Russia the M2M technology has affected the transport and smart metering segment in an impressively positive way. M2M has improved one of the world’s biggest investments in human history, that is, the medical health system. It has made worldwide medical research more easily accessible. Although it is often considered as less explored when it comes to ‘M2M versus medical amelioration’, it has also made it easier for medical representatives to access records while communicating between them to find the best possible treatments for patients. One of the less interesting outcomes of M2M is that it has caused a ripple effect in the average revenue per unit (ARpU). Tele2 has anticipated this improvement in technology’s effect and has consequently prepared itself by investing strongly on increasing its customer base. Tele2 has committed itself to make the less interesting look more attractive by easing any difficulties.
M2M APPS: The Russian M2M Market – fast pace growth? What is the market potential? What will happen in the next five years?
OLESYA VLASOVA: I believe that Russia is a country which is full of potential when it comes to human resources, so it requires having an up-to-date technological system. I also believe that the Russian market has a big potential for investment purposes especially because Russia’s market is growing at a fast pace. Tele2 acknowledges this. It has been analytically moving towards meeting the Russian’ fast moving market needs. According to iKS-Consulting, the Russian M2M market will be growing at a CAGR of 70 percent from 2010 to 2015. The M2M market in Russia reached over 1.200.000 customers in 2010. It has been successfully doubled in 2011.
Company: Tele2
Tele2 is one of Europe’s leading telecom operators, offering mobile services, fixed broadband and telephony, data network services, cable TV and content services. We have 34 million customers in 11 countries, whereof 31 million in our mobile operations. In 2011, net sales amounted to SEK 41 billion and reported operating profit (EBITDA) amounted to SEK 10.9 billion. Tele2 constantly seeks selective growth opportunities that meet our strict financial targets and fit our corporate culture.
