Jola Cloud Solutions' Blog

The Opportunity

With IHS forecasting 58 billion connectable devices by 2022, demand for 4G data is on the rise. Enabling data analysis from a wide range of devices from trains, to agricultural machinery, the 4G sensor market has grown significantly within a short amount of time. Many resellers do not see how they can benefit from this opportunity but know that they service industries with a current requirement. Partnering with Jola, resellers are winning more and more 4G data opportunities and benefitting from a profitable recurring revenue stream.

Physical Space Analytics

4G sensors at exhibitions offer key insights into how visitors interact at events and within retail spaces. 4G sensors gather metrics about users visiting and their engagement. Sensors track how many visitors attended, how long they stayed, how they moved around the space and engagement and conversion rates. Clients can view their data in real-time to view a live graph of visitors over time, length of stay and a heat map to show visitor flow and distribution within the space.

Primary detection is via WiFi sensors powered by 4G. These pick up 3G and 4G signals from all smartphones, laptops and tablets carried by visitors. Signals contain a unique identifier, which is used to build a picture of visitor data per event. Data is encrypted and anonymous, therefore is only used for monitoring purposes.

The opportunity

According to McKinsey, revenues from mobile data are set to increase dramatically in the next 7 years. Factors driving growth are the availability, speed and reliability of 4G and the trend of embedding data SIM cards into devices such as routers for 4G back-up.

Retailers like supermarkets, department stores, restaurant chains and petrol stations are creating private networks to carry financial transactions over IP, from multiple POS systems, often favouring SD-WAN networks with 4G back-up. Depending on their size and the complexity of their requirement, they typically choose a trusted supplier, with experience rolling out and managing solutions in their sector.

The customer’s problem

They are not sure which network is best in each location, when the 4G back-up will be used and how much data they will use. Sending engineers to site to establish the strongest signal is a timely and expensive exercise. In addition, they regularly receive high data overage bills, which can be as much as tens of thousands of pounds a month.

The solution provider’s problem

Managed Network Providers are experienced at designing, rolling out and managing solutions, however have struggled with the 4G element, managing multiple in-country suppliers, with multiple manual ordering processes and a lack of visibility across the SIM estate. They have no direct control over SIM assets and cannot aggregate data across countries.

The opportunity

Revenues from mobile data are set to increase dramatically over the next few years. This has certainly been Jola’s experience. We have partners benefiting from the availability, speed and reliability of 4G back-up solutions for fixed line services installed in a range of devices including door entry systems and gates.

Door entry systems are popular in gyms, hotels, laboratories, warehouses, factories and large corporates. Some simply check validity of membership/room cards and grant access, others include more complex biometric systems and video.

The customer’s problem

4G data SIM cards on a single network can fail if there is an issue with, or congestion on, the local mast. It costs money to send out an engineer to look at the problem and swap the SIM card to another network.

The solution provider’s problem

The solution provider needs to establish the mobile network with the best signal in each location. They then need to contract with multiple providers to be able to provide the strongest mobile signal in each location. They have no visibility or control over the whole SIM estate and regularly receive high data overage charges, when single sites use up more data than anticipated.

There are over £6 million lone workers in the UK. Lone workers are employees who conduct tasks without the supervision of colleagues. Employers usually provide lone workers with a basic mobile phone to make calls. Typically, they bought from the networks, but with the availability of low-cost phones and the flexibility of 30-day SIM-only contracts, employers have started shopping around.

Channel partners are providing SIM cards to employers with lone workers such as mobile vets, healthcare workers, postal staff, social workers, drivers, estate agents, construction workers and agricultural workers.

The opportunity

Lone workers typically need a cost-effective voice and data SIM, they can use in an emergency. Employers want the best deal they can find.

The solution

For this type of solution, many channel partners use Jola, as they have very cost-effective SIM packages on 30 day contracts.

The next opportunity

To stay safe, lone workers are increasingly equipped with GPS location devices, with alert buttons and/or smartphone apps, enabling them to raise an alarm if they run into trouble. Some lone workers are being provided with body cameras, to capture conflicts, similar to dash camera technology.

5G is Fifth Generation Mobile Networks. It is set to be much faster than 4G and could open up new uses for mobile data, creating an exciting new opportunity for the channel. In the UK, 5G is due to start rolling out in 2020, however we may not see widespread 5G until 2022.

What benefits will it bring?

Speed

5G is set to be as much as 100 times faster than 4G. We can expect to see speeds in excess of 1Gb/s with many estimating speeds of 10Gb/s.

Lower Latency

With lower latency, users will see little or no delay, which creates opportunities in industries, such as the car industry, who require no latency to connect their devices. Because it is set to be such a revolutionary technology, it is likely to be used to create services and applications we haven’t yet imagined, capturing the interest of the channel.

Greater capacity

With greater capacity, many high-demand applications can be managed simultaneously. This should provide a fast, stable connection in any device, in any location. 5G will support a wide range of services from HD video streaming, to monitoring devices in every industry.

Efficient, money saver

In the channel we hear a lot of noise about IoT and struggle to see how we will ever make money from smart fridges and electric autonomous vehicles yet are seeing mobile data opportunities for 4G. Blue light services are rolling out SIMs in push-to-talk radios. Couriers are using data SIMs in PDAs. Hauliers are using SIMs in CCTV cameras and security and tracking devices. Companies in both the public and the private sector are using data SIMs in CCTV cameras. Supermarkets are using 4G as a back-up solution and to power POS kiosks and digital bill boards etc.

What is a commodity?

A commodity is defined as a product or resource that is traded primarily on the basis of price, and not on differences in quality or features. When a product or service becomes a commodity, the market price will fall to the marginal cost of the lowest cost volume producer.

What challenges must be overcome when selling commoditised products?

Many consider broadband and telephony to be commoditised products. The challenge most resellers have is how to add real-value and differentiate themselves, to retain existing customers and win new business.

Buy well

To compete with the price leader, companies need to buy well from their suppliers. To win business, resellers may have to accept lower margins. In these situations, it is useful to have higher margin products you can add, to help boost margins.

Leverage USPs

If products are commoditised, are you adding anything unique? Are these USPs valued by your customers? Good service is a given, however installation expertise may be USPs you can charge for.

Large Corporates with voice and data SIMs

Corporates typically have a large estate of mobile phones. Many have relationships with the carriers directly and benefit from the latest handsets. Those coming out of contract are looking to compare deals. They don’t want to sign lengthy contracts and are looking to overcome overage charges and billing challenges. They often contract with more than one carrier.

The Solution

By analysing bill data, resellers can understand the mixture of high and low data users and create a compelling proposal. By creating an aggregated pool, resellers can build their pool size by assigning data SIMs to it. Pools and SIM packages are available on 30 day terms. There is a selection of packages and carrier networks to choose from and alerts can be set up to track usage. If usage exceeds pool allowance in any month, resellers can negate overage charges by drawing from their buffer pools, which offer a much more competitive per MB rate.

Multi-sited organisations with 4G back-up

Multi-sited organisations such as supermarkets, retailers, restaurants, gyms and hotels are using internet connectivity to run digital Point of Sale screens and door entry systems amongst other things. These customers want reliable internet connectivity and don’t want to pay huge overage charges when the 4G failover kicks in.

Pooled data is the ability to have 4G data, that can be shared across more than one associated SIM card. Pooled data plans are popular in both consumer and business markets, where unused data from low users is gifted to high users, to help negate overage charges.

What problems does pooled data solve?

Business customers find data usage difficult to predict, especially in phones and tablets, as so many factors can influence excess usage. If usage notifications from the carriers are late or not received, both customers and resellers are unaware of the data overage charge, until the bill is received. This has put many resellers off selling mobile data, as the bill shock caused by overages has upset their customers.

What types of pools are available?

Fixed pools are available for resellers who know how much data they need for their customer. Their monthly data usage is predictable, and the customer wants to pay for an amount of data each month, which can be shared across multiple users.

Aggregated pools are available for resellers whose customer’s SIM estates are growing or shrinking. The pool increases or decreases every time a data SIM is added or removed.

Buffer pools are available to help negate overage charges at an account and network level. You need to buy separate buffer pools for each carrier network, however you can use the buffer to negate any overage charge from that carrier in your estate. It reduces the data overage cost significantly.

Coverage

EE is the UK's biggest mobile network, with 89% 4G coverage in the UK, 74% 3G and 85% 2G coverage. EE has the most phone masts, 18,500 sites, most of which are 4G. They are investing £2bn in network growth, with the objective of having 95% 4G coverage by 2020. 

Network

EE was named as the best mobile network, in terms of reliability and performance, by a number of independent sources. Ofcom’s report stated that consumers on the EE network were the most likely to connect to a 4G network.

EE M2M SIMs

Jola offers a range of EE M2M data-only solutions from 2GB to 200GB packages with 2GB to 100GB monthly bolt-ons. Fixed IP data-only SIMs are available on EE and Vodafone networks. EE products are available on 12 month contracts. Vodafone Fixed IP SIMs are available on monthly or 12 month contracts. EE SIMs are managed through APIs, so all controls are real-time. Vodafone guarantee execution within 2 hours during working hours. Pooled data options and buffers are available for partners looking to negate overage charges.

Demand from large corporates across Europe is increasing for simple 4G back-up solutions for primary circuits. Companies want fully operational, reliable solutions across multiple sites, which are cost-effective and easy to manage.

How much data do I need?

Predicting monthly usage per site is challenging in some industries, where usage patterns are erratic. Knowing how much data to order for each site can be challenging and also expensive, when you factor in overage charges.

Which network do I need in each site?

4G signal strength varies by location. Online checkers are available and engineers can be sent to site to measure signal strength, however if a mast fails, you are still vulnerable.

Shared data options

If you know how much extra data you need, you can order a pool of data for your SIM estate to share. If you have a growing estate, you can create an aggregated pool. Every time a new data SIM or bolt-on is added to the pool, the extra data can be shared with other assets assigned to the pool.

Multi-network SIMs

Multi-network EU roaming SIMs are designed to provide 24/7 internet access, even when one or more mobile networks fail. They have no preferred network, but always connect to the strongest 4G signal available. Jola’s multi-network SIMs operate in 42 countries in Europe and work on Vodafone, EE, O2 and Three in the UK. Pricing starts at £7 per month.