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Telefonica Digital unveils localized M2M platform

Web-based offering helps customers manage and monitor their M2M networks more easily and support local models

By CAROLINE GABRIEL

Published: 21 January, 2013

READ MORE: Telefonica | M2M

Machine-to-machine (M2M) services are a key focus for Telefonica's Digital arm, which exists to develop new markets and revenue streams for the carrier, often divorced from its networks. Its latest move is to unveil a new web-based platform for managing M2M communications, which will support highly localized activities.

Called Smart M2M, the proprietary system has been developed inhouse by Telefonica's R&D division, and supports real time monitoring of data types, traffic volume and consumption. There are also maps of connected devices and advanced diagnostics to make the business of understanding an M2M network simpler for companies.


One of the key differentiating features, the company says, is localization. The service will be adapted to each region with local language support and a locally hosted and maintained network. Data can even be confined to a certain country to ensure compliance with its regulations, and local SIMs can be used.

Another key element is fraud detection, including the ability to restrict communications between certain devices or to set up traffic caps.

"The visibility and management of machine-to-machine communications is a vital component of any successful deployment," said Carlos Morales, director of M2M and cloud at Telefonica Digital. "By matching our technical expertise and experience in M2M with our local knowledge, we have been able to develop a simple and flexible platform that can give our customers a complete and precise view of their business processes."

Telefonica Digital was formed in September 2011 with its stated goal being to "bolster Telefonica's place in the digital world and leverage any growth opportunities arising in this environment, driving innovation, strengthening the product and service portfolio and maximising the advantages of its large customer base."

M2M is an important element of that. By 2015, the UK-based unit is targeting revenues of €1bn from mobile advertising and the same amount from financial services and mobile payments, plus €500m apiece from M2M, ehealth and security. By that time, the total business unit should be worth €5bn in revenue - still a drop in the total ocean of €62.8bn (last year's group revenue), but with high potential for growth and global alliances, and the creation of entirely new revenue streams as traditional businesses come under pressure.

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