Telefónica Digital CEO: M2M is our fastest growing business
Machine-to-machine products are the most exciting area and will be the leading growth sector for Telefónica Digital, according to CEO Matthew Key.
Providing insight into Telefónica Digital's strategy for the next year, Key told Mobile Today that the unit is "absolutely on track" to grow its existing revenues of €2 billion by 20 per cent each year for the next three years.
The CEO pointed toward headline-making M2M deals with General Motors that will see its cars fitted with SIM cards as part of the U.S. car maker's OnStar tracking business, and a more recent contract with Spanish insurer Generali that will monitor a driver's skill and amend premiums at the end of each month based upon how they drive.
"This year and next year the quality of products and the market moving products will be really exciting to take forward," Key told Mobile Today.
Key added that products such as M2M and mobile banking are critical to fuel growth in the business over the coming years. "The vast majority of our products will go through our operators and their sales channels, so [O2 UK CEO] Ronan [Dunne] is effectively my customer."
Separately, Telefónica has become part of a European education initiative announced by European Commissioner for the Digital Agenda Neelie Kroes that will also include Cisco, Nokia, ARM Holdings, Hewlett-Packard and other technology heavyweights.
Telefónica COO José María Álvarez-Pallete was quick to announce its involvement by stating it will create more than 1,000 startup companies through its Wayra Academies in Europe, and build a Telefónica Think Big community of more than 300,000 young people working to build a more entrepreneurial Europe.
Speaking at the World Economic Forum in Davos, where Kroes made her announcement, Álvarez-Pallete said in a statement: "We believe the technology industry can and should play a part in addressing issues in the society in which they operate. In Europe, Telefónica is promoting a spirit of entrepreneurialism particularly among young people to contribute to a positive change in the region."
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