9 nov 20

Telematics and TCO: making connectivity calculable

Intelligent Fleet Telematics comes with a big promise to the industry: reducing the total cost of ownership (TCO) in fleet operations. However, the costs for telematics hardware and software must also be considered. Plus, something that is often neglected and has proven complicated to calculate: the cost of always-on connectivity.

Two years ago, in April 2018 McKinsey predicted that “after decades as a niche feature, telematics is merging into the automotive mainstream” and forecast the car-data monetization value pool would reach $750 billion by 2030.
The range of use cases is vast, be it for asset safety, vehicle performance or improving overall fleet efficiency. While connectivity is often considered a commodity, this doesn’t apply to telematics, where thousands of devices operating in many different locations at the same time collecting crucial data. Here connectivity is not a commodity anymore - it’s a mission critical service that has a direct impact on the TCO for the telematics service in use. 

Connectivity costs decide about success or failure 

Connectivity costs can vary hugely, and many variables must be considered. 

Mobile cellular connectivity solutions for M2M communication have proven to be complex in the past. Long term contracts with a minimum purchase amount or tariffs with a fixed data volume have shackled many players where the telematics solution became unnecessarily expensive or even killed off a new business idea, before it even could take off. 

Prepaid connectivity that keeps the TCO in shape

Cologne-based 1NCE is the first TCO-friendly Tier-1 IoT network carrier in the world that offers fast, secure, and reliable connectivity services based on a simple prepaid tariff. For 10 Euros every device gets 10 years connectivity via 2G, 3G, 4G, NB-IoT or LTE-M without any extra costs for setup or roaming costs.

A tariff with one simple payment over the complete device-lifetime reduces the TCO in fleet management significantly. Source: 1NCE

The service is available in over 100 countries worldwide and includes 500 MB of data and 250 SMS. A tariff that allows businesses of any size to enter the market quickly and meet their growing connectivity needs on-demand.

These advantages have been recognized by Italy-based Targa Telematics, one of the largest European providers of telematics services. 

“When monitoring over 500,000 connected systems, mostly vehicles from the major car rental and leasing companies as well as shared fleets and airport handlers, data availability is crucial to guarantee the best service to our customers”, says Alberto Falcione, Vice President Sales of Targa Telematics.  “1NCE has proven to provide IoT connectivity that meets our high expectations in terms of flexibility, reliability and worldwide coverage”.

1NCE has deep partnerships with leading mobile network providers such as Deutsche Telekom AG and China Telecom via all common mobile communications standards with a single IoT-SIM-card.

For more info, please visit 1nce.com

Authored by Dennis Knake, Communication Manager 1NCE

Source main picture: 1NCE/Adobe Stock