SÃO PAULO, Brazil. — June 8, 2017 — Based on its recent analysis of the mobile machine-to-machine (M2M) solutions industry, Frost & Sullivan recognizes Telefónica México with the 2017 Mexican Frost & Sullivan Company of the Year Award. Telefónica has distinguished itself in the Mexican telecommunication industry by making the most of its partnerships with carriers to offer M2M connectivity across Mexico, even in areas where it does not have coverage. SIM Global, the solution that enables this expanded coverage, allows end users to connect to networks in more than 200 countries and benefit from over 400 roaming agreements. The simplified management of M2M operations is a huge attraction for large multinationals with geographically dispersed operations. Clients can also use SIM Global to control and monitor the location of each subscriber identity module (SIM), as well as their connectivity and communications costs.
Telefónica México can provide both connectivity-only service as well as an end-to-end managed solution. Its M2M portfolio includes solutions for the retail, manufacturing, transportation, utilities, banking, and healthcare verticals, where it can be applied in several telemetry alternatives, fleet management, and point of sales (PoS). The company’s goal is to help clients better control operations costs and increase revenues by aiding more efficient supply chain management and improving productivity.
“Looking to strengthen its M2M offering and facilitate project implementation, Telefónica México created a partner program that comprises more than 200 registered systems integrators in Mexico alone, and over 1,000 in the Americas and Europe,” said Frost & Sullivan Research Manager Ignacio Perrone. “The participating members act as local sales channels, which simultaneously enhance the company’s business visibility and scale of operation.”
Furthermore, Telefónica’s partner program helps to improve its customers’ purchase experience. As M2M solutions require extensive customization and a long consultative sales cycle to thoroughly solve a business need, having a partner on board will greatly add value and specific knowledge. This program is particularly useful in the small- and medium-sized business segment, where Telefónica sells only through registered partners.
Telefónica is constantly looking for blue ocean opportunities not only for itself, but also for its clients. It does not simply complete a business transaction, but it fosters a long-term relationship that will prove difficult for its competitors to emulate. This strategy has earned it a strong leadership position in the M2M space in Mexico, while allowing it to erect high entry barriers.
With 26.6 million mobile lines and $1.50 billion in revenues in 2016, Mexico is the second-largest revenue-generating country for Telefónica in Spanish-speaking Latin America, just behind Argentina. It reported approximately 670,000 SIMs for the same year, a year-over-year increase of 17.8%. Its emphasis on M2M clients is abundantly evident in the recent double-digit growth in subscribers, particularly in the postpaid segment, which grew by 22.3% in 2015.
“Telefónica has been showcasing its M2M portfolio in order to strengthen its reputation as a digital company. It especially strives to deliver end-to-end solutions and consciously move away from the image of simply being a connectivity provider,” noted Perrone. “The company uses its partner program to better understand clients’ needs and provide a customized solution that leverages connectivity and exceeds customer expectations.”
Each year, Frost & Sullivan presents this award to the company that has demonstrated excellence in terms of growth strategy and implementation. The award recognizes a high degree of innovation with products and technologies and the resulting leadership in terms of customer value and market penetration.
Frost & Sullivan Best Practices awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research to identify best practices in the industry.
About Telefónica México
Telefonica is one of the largest telecommunications companies in the world in terms of market capitalization and number of customers. With fixed and broadband networks, and an innovative portfolio of digital solutions, the company focuses its strategy on securing its leadership in the digital world. With operations in 21 countries and more than 350 million customers, Telefonica has a strong presence in Spain, Europe and Latin America, where it has an important growth strategy. Telefonica is a 100% listed company with more than 1.5 million direct stakeholders, and ordinary shares traded in different stock markets, including London, New York, Lima and Buenos Aires.
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