Rostelecom and Tele2 Monetize the Internet of Things with Nexign

Rostelecom, a full MVNO and Russia’s largest integrated provider of digital services and solutions, sought to capitalize on the opportunities presented by the internet of things (IoT). Tele2, a subsidiary of Rostelecom and a major player in the mobile communications market, also sought to improve the B2B market share via developing IoT-based services. They ultimately decided to launch a joint IoT platform, which would ensure seamless integration with their existing BSS systems and enable new competitive M2M solutions. With the help of Nexign, the companies implemented a unique tripartite project that met expected outcomes and, additionally, resulted in cost reduction and optimized resource utilization.

Challenge

With the IoT being among the most promising areas of digitalization, Rostelecom was looking to become a leader in the IoT and IIoT (industrial internet of things) segments in Russia. Rostelecom needed an efficient and simple-to-use platform that didn't require the involvement of third-party vendors or suppliers to ensure the successful monetization of the company's future IoT offerings. The platform should enable customers to develop their own digital infrastructure with easy and prompt management of devices and SIM cards. With that in mind, Rostelecom decided to adopt an IoT platform and integrate it into the existing BSS landscape.

At the same time, Tele2 shifted its brand positioning and sought to expand its presence in the B2B segment. As customer demands evolved, the company decided to launch new M2M-related products. Having similar goals, the two operators sought a single solution to cater to their needs.

Project

The platform deployment was divided into several phases. Initially, Nexign IoT Platform was set up at Rostelecom for commercial service. Later, the solution was further expanded to meet the needs of Tele2 and also integrated with the company’s billing system. The key challenge was to correctly integrate the platform with several billing systems, as they 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 each of the involved parties. The final solution met all the original requirements while enabling the optimization of operational costs beyond initial estimations.

 
We relied on a new IoT solution to accelerate our digital transformation. With Nexign’s IoT platform, Rostelecom is expanding our footprint in this emerging market segment.

Results

  • 01
    The companies launched a platform of self-service that allows customers to remotely manage SIM cards and track their status, control expenses and limits, prevent fraud, track and assign a precise location to end-users’ IoT devices, and get timely reports on events.
  • 03
    Both companies reported efficiency in management of the IoT segments in their businesses.
  • 02
    Tele2 increased its B2B subscriber base thanks to the arrival of new subscribers from small and medium-sized enterprises and the return of older ones, while Rostelecom received capabilities to work on numerous major projects in power engineering, transport, agriculture, and utilities.
  • 04
    Both companies gained a competitive edge in the B2B sector while establishing the basis for developing and monetizing IoT solutions. They launched new products, attracting whole new subscriber segments and increasing their share in the M2M market.

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