Deutsche Telekom promotes “turnkey” telematics service

Deutsche Telekom is promoting a “single-source” usage-based insurance (UBI) service in partnership with telematics specialist DriveFactor, providing further evidence of its determination to play a bigger role in the M2M market than just as the connectivity provider.

The German operator describes the service as a “turnkey” solution that includes the tracking module and SIM card as well as the provision of platform services and statistical evaluation of driving data.

Deutsche Telekom is promoting a “single-source” usage-based insurance (UBI) service in partnership with telematics specialist DriveFactor, providing further evidence of its determination to play a bigger role in the M2M market than just as the connectivity provider.

The German operator describes the service as a “turnkey” solution that includes the tracking module and SIM card as well as the provision of platform services and statistical evaluation of driving data.

Another advantage is that insured persons can install the necessary devices themselves, allowing insurers to introduce services more quickly.

According to DriveFactor (Glen Allen, VA, USA), the devices are compatible with most cars manufactured since 1996 in North America and 2001 in Europe.

Deutsche Telekom (Bonn, Germany) says the solution is being offered at a fixed monthly rate and will allow insurers to automate processes such as first notification of loss and thereby respond more quickly to insurance claims.

“Jointly with our partner DriveFactor we offer insurers a complete single-source UBI service – from the hardware to integrating evaluated driving data into their IT systems,” said Jurgen Hase, the head of Deutsche Telekom’s M2M Competence Center.

The system works by relaying information about driving performance to a central server via the mobile network.

Data is then evaluated before being sent to the insurer, while customers can also view their personal data and evaluations on web and mobile portals.

Speaking to M2M Zone at the recent M2M World Congress in London, Hase said the automotive sector represented one of the biggest addressable markets for providers of M2M services.

The operator estimates there are approximately 40 million vehicles in Germany and about 25 million in Great Britain, where it is present through its EE joint venture with France Telecom.

In Europe, the industry has received a boost from eCall legislation requiring cards to be equipped with telematics functionality for safety reasons.

Last year, the operator made €100 million ($131.3 million) in revenues from so-called intelligent network solutions – including services aimed at the automotive, energy and healthcare sectors – but it aims to increase revenues in this area to €1 billion in 2015.