What was the vision when you founded Jola?
We founded Jola with an experienced team and a tried and tested strategy. At Griffin, we built a channel of over 700 resellers, annual revenues of £24 million and a team of around 130 employees. We had so much fun and success that after the company was sold in 2012 it seemed inevitable that we would work together again. Our philosophy at Griffin was that we were ‘selling with our partners’ rather than ‘to them’ and we continued this approach with Jola.
Automation, billing and healthy margins are a given. Jola’s vision was to put our partners in control and make them more successful. We felt we understood the needs of their customers and developed unique solutions to help resellers address them. Resellers have higher conversion ratios when they choose suppliers they trust to work alongside them on deals. Innovative suppliers provide differentiated products, which give resellers a higher margin potential.
We started out as a channel supplier specialising in internet connectivity and hosted telephony. When the networks started to allow us to sell 4G products we realised that the biggest opportunity for the channel was in mobile data and so we developed Mobile Manager®. Jola became a multi-award-winning, channel-only supplier of business communications, specialising in mobile data SIMs. We built our own global eSIM MVNO, providing innovative IoT and mobile data solutions to MSPs, ISPs, IT Support companies and Telecommunications Resellers.
What does the acquisition signal to the channel market?
It reinforces the value of mobile data. With 4G+ download speeds of around 300Mb/s available to 90%+ of the population, mobile data is a credible alternative to fixed line, as well as a great 100% SLA, backup story. It is also the only practical solution to replace millions of PSTN lines in the next few years. Only around 20% of resellers sell mobile data but by 2025 every reseller in the UK will have to have it in their portfolio. As is always the case with disruptive technological change, early movers win more market share and ringfence their customers from competitors.
The financial markets value mobile data EBITDA at a higher multiple than fibre and broadband. With self-service, fully automated portals like Mobile Manager®, it is easy to sell, manage and bill.
Every reseller/MSP has at least one significant IoT/M2M opportunity in their existing base of customers, and mobile data aggregators like Jola are helping to find and win them.
Could you provide some background to the deal and why Wireless Logic?
Wireless Logic is one of the standout successes of the ICT sector and we have long been admirers of Oliver Tucker and his team. It was important to us that Jola remain an independently-run company, focussing as always on the UK channel.
There is a natural fit between Wireless Logic and Jola, which makes this an exciting acquisition for all involved. Jola will strengthen and focus the group’s routes to market in the UK and beyond, paving the way for further business growth in the years ahead.
Our 1200+ partners will see no change in the short term and over time they will benefit from a stronger balance sheet, product innovations across the group and more extensive supplier relationships.
Wireless Logic mainly sell direct and Jola has always been exclusively channel-only. Is this an issue?
I have been in channel since it started and my team is channel through and through. Apart from the fact that our partners are contractually and legally ring-fenced, our reputation should be sufficient to answer this question for partners and prospects.
What are the cross-portfolio benefits of the acquisition and does it provide new areas of business to develop?
Wireless Logic sees Jola as its channel brand. Over time the best solutions and services will be made available to all partners.
More specifically, what will be the channel benefits of the acquisition?
Wireless Logic is a leading global IoT connectivity platform provider that simplifies and automates IoT management for any device, anywhere. With more than 10 million IoT subscriptions active in 165 countries and direct partnerships with 48 mobile networks, the group provides reach into more than 750 networks across the globe and delivers value throughout the IoT connectivity chain.
Being part of the group our channel partners will continue to benefit from innovative solutions and management portals to help them win lucrative mobile data opportunities and grow their businesses. Wireless Logic has an enterprise value of over £1bn. Resellers and MSPs working with Jola should feel more confident of winning large and valuable deals, even when competing directly with the MNOs.
And specifically, what new opportunities do you plan to exploit?
Specifically, Wireless Logic has a much broader pure IoT proposition within the group including a wide range of devices and device management capability.
There are already a great many vertical market opportunities in this space where we are helping partners to win. Being owned by Wireless Logic will only improve our partners’ chances of finding and closing large contracts.
Jola SIMs are being used in tablets, routers, CCTV cameras, lifts, cranes, wind turbines, push-to-talk radios, body-worn cameras, monitoring devices, streetlights, ANPR cameras, yachts, digital signs, personal alarms, door entry systems, smart gates, cameras, buses, coaches and trains.
Our internet connectivity and SIP solutions are used by well-known large corporates and SMEs. We help partners to win new business, increase ARPU in their current base, and reduce churn.