Rostelecom and Tele2 Monetise the Internet of Things with Nexign
Rostelecom sought to utilise the opportunities ushered in by the Internet of Things and thus opted to implement a dedicated platform that would allow for monetising digital services. The company’s subsidiary Tele2, at the same time, sought to improve its B2B market share via developing IoT-based services. As a result, they decided to adopt a unified IoT platform from Nexign IoT Platform which ensured seamless integration with their existing BSS systems. This enabled billing for both the telecom operator and the mobile virtual network operator, as well as launched new highly competitive M2M (machine-to-machine) solutions. As a result, the companies implemented a unique tripartite project while slashing costs and boosting resource utilisation.
Rostelecom is Russia’s largest integrated provider of digital services and solutions, with a presence in all market segments and covering millions of households, governmental and private organizations across all regions of Russia. Tele2 Russia, formerly owned by Tele2 Sweden, is a subsidiary of Rostelecom and a major player in the mobile communications market with over 44 million subscribers.
With the IoT being among the most promising areas of digitalisation, Rostelecom opted to leverage this technology and become the leader in the IoT and IIoT (Industrial Internet of Things) segments in Russia. To ensure the successful monetisation of the company’s future IoT offerings, Rostelecom required an efficient and easy-to-use platform that won’t require any involvement of third-party vendors or suppliers. With that in mind, the company decided to adopt an IoT platform integrated with its existing BSS system. It was required that the platform would enable customers to develop their own digital infrastructure with easy and prompt management of devices and SIM cards, while Rostelecom will be able to provide linear tariff plans with different tariff options.
At the same time, Tele2 shifted its brand positioning and sought to expand its presence in the B2B segment. As the customer demands evolved, the company decided to launch a new product based on the M2M model. As the two companies’ goals matched, they sought a single solution to cater to their needs.
The platform’s deployment was divided into several stages. Initially, Nexign IoT Platform has been set up and running at Rostelecom for commercial operation, and following the course of the project, it was further expanded for Tele2 and integrated with their billing system in parallel. The key challenge was to correctly integrate the platform with two billing systems, as each of them adhered to different business logic and involved certain technical and architectural differences. On top of that, integration testing and system configuration proved to be the most challenging since it was the first-ever tripartite project for any of the involved parties. The final product met all the original requirements while optimising operational costs beyond initial estimations.
We expected the new IoT solution to bring us closer to the digital transformation of our business. With Nexign’s IoT platform, Rostelecom feels comfortable expanding this emerging niche.
Tele2 increased its subscriber base in the B2B segment thanks to the inflow of new subscribers from a number of small to medium enterprises as well as the return of older subscribers. On the other hand, Rostelecom got to work on numerous major projects in power engineering, transport, agricultural industry, and utility projects.
Both companies report maximum manageability of the IoT segment in their respective businesses.
Both companies obtained a massive competitive edge in the B2B sector while establishing the basis for developing and monetising IoT-based solutions. They launched new products attracting whole new subscriber segments and increasing their share in the M2M market.
The companies launched a platform of self-service, which allows customers to track the status and location of IoT devices, get relevant information on the consumed traffic and expenses, replace SIM cards, attach a precise location to the device, as well as ensure the security of the customer funds.