Machine to machine products are the fastest growing area of Telefónica Digital’s business, its CEO has said.
Outlining the digital wing of Telefónica’s strategy for the next 12 months, Matthew Key said it was ‘absolutely on track’ to grow its existing revenues of €2bn by 20% each year for the next three years. Key (pictured) said: ‘This year and next year the quality of products and the market moving products will be really exciting to take forward.’
He said machine to machine was the most exciting area, citing last year’s deal with General Motors to fit SIM cards into its OnStar tracking business for cars. He said the company recently signed a deal with insurer Generali in Spain. The joint venture fits a small black box with an embedded SIM into a car and tracks the driver’s motoring skills, amending their premiums at the end of each month according to how they drive.
He said another focus for the business was ‘banking the unbanked’ in Latin America, providing financial services to people without a conventional account.
Key said products such as these were critical to fuel growth in the business in the coming years. He said: ‘The vast majority of our products will go through our operators and their sales channels so Ronan [Dunne, O2 UK CEO] is effectively my customer.’
Author: Graeme Neill