Telefonica – the Smart Transport way

Telefonica - the Smart Transport wayIn this article, Telefonica shares their vision on the smart transportation market and opportunities.

One of the most important M2M markets is, without doubt, that referring to transport solutions. Also known as the Internet of Moving Things, it is one of the fastest growing sectors. According to ABI Research, global fleet management and trailer tracking system subscriptions will surpass the 30 million mark by 2016.

The entire transport industry is realizing the benefits of implementing these solutions. Many studies have already proven that the use of fleet telematics boosts productivity and makes driving safer. Knowing that the sector is full of business opportunities, Telefónica is making a move in order to provide its customers with the best M2M transport solutions.

Since M2M transport solutions are of varied nature they can be applied in many places along the value chain. The implementation of some of these technologies means improvement of the profitability and control of our business, but it is when all of them work together when the advantages really shine.


The most applicable solution regardless of the nature of the business is fleet management software and telematics. These solutions allow companies which rely on transportation or whose entire activity is based around fleets of vehicles (such as leasing companies) to reduce the risks associated with their businesses. Even companies whose main activity isn’t related with transportation but have a fleet of vehicles to manage will find in fleet management solutions a powerful tool to keep track of it.

A fleet management solution enables real time monitoring the status of the vehicles of a fleet, from its availability, to its maintenance schedule and technical status, to its location. This data is used to plan a fleet management strategy that improves efficiency, productivity and reduces overall transportation and staff costs.

Other area of fleet management is asset tracking. These solutions enable the companies to rapidly locate and recover any asset and receive real-time information about the location of its goods. Logistic companies would benefit greatly, since asset tracking would enable them to locate valuable freight and protect their assets.

Companies are embracing fleet management and asset tracking solutions due to its proven efficiency at improving profitability. A reportf by Berg Insigths says that the number of fleet management systems in active use is forecasted to grow at an annual growth rate of 20.7 percent from 2.0 million units at the end of 2010 to 5.0 million by 2015 in Europe.

Earlier this year, on February, Telefónica announced it would be equipping its very own vehicle fleet in Spain. This fleet management solution was developed jointly by Telefónica and Masternaut, a leader in telematic solutions, and includes eight different products that combine GPS devices with software solutions. This complete solution allows streamlining any fleet-dependent business in all its fronts: with real-time tracking of assets, improving the driver’s safety and reducing fuel cost by optimizing the routes.

The same kind of solution is available in UK and Germany.


Along with fleet managers, transport solutions are aimed to the drivers as well, such as the connected car solutions, which are have for objective to improve driving efficiency and the driver’s safety and experience inside the car.

At Mobile World Congress 2012, Telefónica made a big announcement: an agreement with General Motors subsidiary OnStar to provide M2M connectivity for Onstar’s connected cars solutions. The American company decided to rely on Telefónica’s extensive international network and its previous experience in the automobile sector to expand outside its natural market.

Connected vehicle solutions have many benefits: it makes easier to protect drivers and track the driving behavior. In case of accident or other events, it simplifies the localization of the vehicle and the recovery of the person and the load thanks to the use of GPS coordinates.

These solutions are also interesting for use outside the business environment, enabling the owner of the car to connect its vehicle to other handheld devices, check his or her Facebook status or twitter, and download apps designed for use inside the car, apps that would allow the owner to, for instance, access information about locations of interests or receive real time information according to a customized profile.

Since it is a market with much potential, some forecasts set the total revenue opportunities for this sector to pass 18 billion € in 2025.

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