Download Weekly: Internet of Competitive Things
You can’t move in this country this week without someone talking about the Internet of Things.
Last Thursday Communications Minister Simon Bridges spoke at a Wellington event about a report commissioned by the New Zealand IoT Alliance. He quoted the report saying the IoT could be worth $2 billion to the economy over ten years. You might expect an organisation set up to ‘accelerate the adoption of the IoT’ to talk up the technology’s prospects. Even so there’s a lot of money at stake.
On Monday morning Vodafone said it will roll-out an IoT network early next year in anticipation of an explosion in demand. Vodafone is using Narrowband-IoT, a low-power wide area network. It uses dedicated, licenced spectrum. Vodafone says it is secure and will cover vast geographic areas.
Spark narrowband IoT
Three hours later Spark announced its plans for a narrowband IoT network which is says will be in operation by this time next year.
The big telcos will join two existing IoT networks already in operation here. Wellington-based KotahiNet and Australia's Thinxtra.
Vodafone technology director Tony Baird describes his company's NB-IoT as a premium technology. He says: "It is supported by over 40 of the world’s largest mobile operators plus many more suppliers and innovators that serve the majority of the global IoT market.”
Connecting millions of devices
The IoT is all about connecting sensors and other devices to the network. This is something Vodafone has been doing for some time now. The company already has more than 1.4 million devices on its 2G phone network.
Vodafone says the NB-IoT is based on the same technology. The company has already tested NB-IoT in the field in a trial with Nokia, its technology partner for the project.
Spark is also working on a narrowband network that has evolved from cellular phone technology. It is working with Kordia to build the network.
Connected Farms
The company is using its Connected Farms project to roll-out pilot IoT capabilities on farms in the Waikato.
Vodafone and Spark have several things going for them. They have brand recognition, market power and a considerable installed based to call on. Both have signification infrastructure already in place.
Vodafone also has the benefit of a global organisation able to quickly make use of knowledge learned overseas.
Spark's trump card is the link with its Qrious big data and analytics operation. IoT sensors can produce a huge volume of data and helping customers make sense of that is expected to be a lucrative way of adding value.
However, the telcos don't have it all their own way. KotahiNet has already staked out ground with its $1 per sensor per month easy to understand flat fee approach. That may yet be important in this market. When you're dealing with thousands of devices, the cost per unit can be significant.
Vodafone adds ten to accelerator programme
Ten new start-ups have joined Vodafone's xone accelerator programme.
Xone is a six-month accelerator programme that runs out of Vodafone's South Island headquarters in Christchurch. The programme is now in its second year.
Each of the companies taking part get $25,000 in seed-funding and an option to use space at Vodafone's Christchurch offices if they are based in the region. They all take part in regular monitoring sessions in Christchurch and have access to Vodafone's global partner network.
No equity
Vodafone doesn't take any equity in the Xone start-ups. It focuses on picking companies operating in areas close to Vodafone's main lines of business. There's a pronounced emphasis on mobile.
This year's programme members include start-ups working in areas such as the Internet of Things, sensors, drones and artificial intelligence.
Vodafone says they come from a diverse range of sectors including wine-making and pipfruit growing. One start-up, Christchurch-based Evnex, builds charging technology for electric vehicles that integrate with solar smart-grids. Parkable, connects parkers to hosts with spare land.
The first wave of xone companies went through the programme last year.
Xone head Nicole Buisson says the ten start-ups from 2016 have generated more than $8.5 million in new revenue, attracted $7 million in funding and have created 25 new jobs. They now have operations in 12 countries.
Fire Service brings up Spark’s TaaS ton
Spark's 100th telecommunications-as-a-service customer is the New Zealand Fire Service. The organisation signed a wireless and connectivity services contract with the telco. Spark will provide Wan and fixed-voice services in urban and rural areas. It will also consult on personal connectivity.
TaaS is a way government organisations can buy telecommunications services without capital expenditure. Costs are transparent. TaaS allows organisations to get on with their job and not fuss over running complex systems.
The government appointed Spark was to the TaaS panel in 2015. It was one of a dozen telcos to get the official stamp of approval.
Spark's other TaaS customers include Inland Revenue, Corrections and Met Service.
Tomizone seeks capital, shuffles the deck
Tomizone is looking to raise money. The company wants $2 million to boost its working capital and clean up its balance sheet. Chair Tarun Kanji has resigned and has been replaced by Ian Bailey. The company says more boardroom changes could be on the way. Tomizone started life as an Auckland-based WiFi services company but today is listed on the ASX and seems more interested in selling analytics services than air-time.
Parliament legislates the final frontier
Parliament passed the Outer Space and High Altitude Activities Bill. Communications minister Simon Bridges says the bill aims to reduce compliance costs. It also allows operators to use overseas licences. Bridges says it will position New Zealand as competitive for space projects.
Blind Foundation book downloads zero-rated on 2degrees
Blind Foundation clients, who are also 2degrees customers can download books for free. The books come from BookLink in the Apple app store. There are 11,000 audio books along with magazines and newspapers.
Teamtalk finalises three-year banking facility
Teamtalk has a new three-year Westpac bank debt of $27 million. It is much the same as the one it replaced. The arrangement comes after the company sold 70 of the Farmside business to Vodafone in April. That deal allowed the company to pay down debt.