Monday, November 16, 2015
MTS has signed a partnership agreement with Redmond, the producer of household appliances, aimed at developing and promoting services in the field of the “Internet of things” (IoT) to consumers. This unique strategic initiative reinforces the status of MTS as a leading innovator among telecommunications companies.
As part of the agreement, MTS will provide Redmond with smartphones with pre-installed software and embedded telematic SIM-cards with a special M2M-tariff that enables consumers to control their household utilities online. By promoting “Smart home” solutions MTS expects to increase both the number of active data-SIM-cards per household and the number of mobile internet users, since around 30% of smartphone owners do not currently use internet services.
MTS installs SIM cards with a special M2M tariff plan in smartphones which will be sold with in household devices such as coffee machines, electric kettles, scales, multicookers and irons. The smartphones are kept in the apartment and used as routers connecting with the devices via Bluetooth. Customers will be able to monitor the status of these houseehold devices and remotely control their functions via a downloadable app. For example, users will be able to enhance household safety by checking whether an iron has been switched off or preventing children from switching it on. They will also be able to maximize comfort by remotely activating heating systems to ensure the home is warm on arrival.
Until recently, MTS has primarily worked on IoT with corporate clients and is the B2B M2M leader in Russia according to J'son & Partners Consulting. MTS serves around 50% of this market by volume of SIM-cards.
In H1 2015, the number of MTS SIM-cards sold for M2M vehicles increased by 20% y-o-y, reaching 3.2 mln. During the period, M2M SIM cards generated 18% of the total traffic consumed by corporates, twice as much as in H1 2014.
Vasyl Latsanych, Vice President, Chief Marketing Officer, commented, “MTS has become the first operator to focus on developing IoT solutions in the B2C segment in Russia. Today, we are the leader in mobile data revenue growth and in the M2M segment. This project is set to strengthen MTS’ position in the promising market of consumer IoT solutions and will enable MTS to further increase its data revenues.”