Germany’s Deutsche Telekom has signed what it calls a “nearly double-digit million euro contract” with cargo monitoring service provider arviem for the provision of M2M services.
The operator describes the deal as an “important building block” for expanding its presence in the M2M market.
The two companies are to work together on providing real-time monitoring services for freight consignments, with Deutsche Telekom (Bonn, Germany) contributing hardware and SIM cards while arviem (Baar, Switzerland) provides the software needed to evaluate data.
However, Deutsche Telekom says that it will be offering a “complete, single-source service, including the software” during the next phase of the partnership.
Touting the benefits of the service, Deutsche Telekom and arviem say customers can book solutions for a fixed price that counts towards operating expenditure, thereby avoiding any major upfront investments.
The business model also allows companies to fit out individual containers on demand, giving them added flexibility.
“As the tracking device is not built into the container, the customer can attach it to the outside of the box himself at any time,” said Deutsche Telekom in a statement.
Emphasizing the importance of the opportunity, Deutsche Telekom says more than 16 million containers a day are under way around the world and that an average of 30% of freight consignments arrive either damaged or late.
“We rely on strong partners in order to be able to offer a wide range of solutions and services for different industries and application scenarios,” said Jurgen Hase, the head of Deutsche Telekom’s M2M Competence Center. “Cooperation with arviem is an important milestone in this process.”
The German operator appears to have recently upped the pace of M2M activity, signing important contracts with carmaker Daimler (Stuttgart, Germany), smart-grid specialist Itron (Liberty Lake, WA, USA) and IT giant IBM (Armonk, NY, USA).
In 2015, the company aims to generate €1 billion ($1.29 billion) in revenues from so-called intelligent solutions, which cover such opportunities as telematics, smart grids and telehealth.
But the target looks ambitious given that Deutsche Telekom made just €100 million in revenue from intelligent network solutions last year – the same as in 2011.