dan lloyd - vodaphone - vodafone – assessing the australian telecoms market. strategies to make...
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Presented by Informa and Ovum. Opportunities and threats for Telcos taking them beyond 2020. For more information on the event please visit: http://bit.ly/1AKUIweTRANSCRIPT
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Developments &
Competition in
m2m Services
Dan Lloyd
Director , Strategy &
Corporate Affairs
Vodafone Australia
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Outline
1. Vodafone’s m2m offering
2. Vodafone Global m2m Barometer 2013/14
3. Ovum Connected Nation – Australian m2m
2014-2019
4. Competition in m2m and Australian
communications
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Over 300 dedicated M2M professionals
across five regions
Vodafone employs the largest
dedicated M2M team
of any mobile network operator, and
the team is growing
Vodafone Global M2M Team Countries Capabilities
Americas:
US
• Sales
• Solutions architect
• Project management
• Commercial
• Business development
• Service architect
• Implementation
consultant
APAC:
Australia, Hong Kong, India,
Japan, Korea, New Zealand,
Singapore, China
• Sales
• Solution architect
• Project management
• Commercial
• Business development
Northern Europe:
Belgium, Ireland,
Luxembourg, Netherlands,
Nordics, UK
• Sales
• Solutions architect
• Project management
• Commercial
• Business development
• Service architect
• Implementation
consultant
Central Europe:
Czech Republic, Germany,
Hungary, South Africa
• Sales
• Solutions architect
• Project management
• Commercial
• Business development
• Service architect
• Implementation
consultant
Southern Europe:
Greece, Italy, Portugal,
Romania, Spain, Turkey
• Sales
• Solutions architect
• Project management
• Commercial
• Business development
• Service architect
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Vodafone’s m2m Partners We have established partnerships with global market
leaders to complement our offering, and provide complete
pre-integrated and tested solutions to our customers
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Who Utilises Vodafone M2M
Vodafone M2M customers have grown from 3M to 16M
connections over the past 4 years
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Independent analysts
recognise Vodafone
Positioned as a leader in the global M2M services market, April 2013
1st Place in M2M Communication Service Provider Benchmarking Study 2013
Third year in a row topped the rankings in Analysys Mason’s independent M2M annual scorecard – 2014
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About the Barometer
• Global survey: over 600
responses
• Qualitative and quantitative
• 14 countries, 7 industries
• Independent research
• Leading analyst gives extra
insight
• Second year conducted
Split of
respondents
by region and
industry
sector
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M2M goes mainstream Companies at
each stage of
M2M adoption,
2013/2014
of companies said that they are already using M2M —
that’s an increase of over 80% on last year
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AMEAP leads regional growth
• Europe and Americas fell behind
• But all regions will have over 50% adoption by 2016
Companies with an M2M solution in
place by region, 2013/2014
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Adoption in two years’ time
• 74% of consumer electronics will have M2M by 2016
• Manufacturing will be furthest behind, with 43%
Companies with an M2M solution in
place, 2013/2014
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Benefits producing ROI
• Companies using M2M are starting to report “external”
benefits
• Those reporting increased competitive advantage leapt from
23% to 52%
Companies with M2M solutions in
place experiencing benefits,
2013/2014
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Four steps to m2m success Make M2M central to strategy.
Be ambitious
Look for board-level sponsorship
and focus on cultural change
Combine M2M with other
technologies,
particularly big data
Consider security end-to-
end, from the start of your
planning
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Strong growth forecast for
Australian m2m
13 Source: Ovum M2M Industry Forecast, September 2014
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Majority of deployments
depend upon mobile
• Productivity challenges will make retail and wholesale the
top vertical
•M2M innovation will drive further adoption in transport and
logistics
•Healthcare is the vertical to watch
• Smart metering is poised to gain further momentum
•Manufacturers in Australia will strive for greater efficiency
• The connected is car expected to increase in popularity
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Competition in m2m
•M2m necessarily a global ecosystem:
– Global standards, global manufacturing, global
supply chains
– Well established international roaming model for
m2m – GSMA recommendations, ITU number
ranges
•Fragmentation of domestic
approaches/bespoke solutions:
– Undermines efficiency/productivity
–Slows deployment and efficiency benefits. 15
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Australia is a very unusual
market in revenue share ...
16
Canada Germany Australia France
66%
51%
Spain
52% 51%
UK Italy
49%
39%
31%
Incumbent share of Total Telecoms Revenue
2013, %
Source: Vodafone Group Analysis based on company reports.
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Australia is a very unusual
market in EBITDA share ...
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UK Spain Australia France
75%
61%
Italy
68%
57%
Canada Germany
55%
43%
37%
Incumbent share of Total Telecoms EBITDA
2013, %
Source: Vodafone Group Analysis based on company reports.
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Australia is a very unusual
market in OpFCF share
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UK Spain Australia Italy
85%
65%
France
79%
63%
Canada Germany
62%
48%
35%
Incumbent share of Total Telecoms OFCF
2013, %
Source: Vodafone Group Analysis based on company reports.
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Substantial impact on
consumers...
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0
20
40
60
80
100
120
140
160
180
Canada
€49
Germany
€ 68
UK
€ 65
France
€ 65
Australia
€ 164
Spain
€ 103
Italy
€ 85
Eu
ro/
Po
p
International benchmarking OFCF / Population
2013, Euro
OFCF/BITDA minus Capex. Source: Vodafone Group Analysis based on company reports.
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Conclusions
•All signs point towards tipping point for m2m growth
globally and in Australia
•Massive potential productivity gains for Australian
industry and consumers through inherently global
model for m2m deployments
• Backdrop of disturbing domestic communications
market structure and barriers to competition
•Great opportunity for Australia in encouraging global
model
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