Auto industry drives first moves of T-Systems' IoT MVNO

The automotive segment is the first to sign contracts with the Brazilian IoT MVNO created by German IT services provider T-Systems, part of the Deutsche Telekom group.

The company announced this week a partnership with Brazilian telco Embratel, controlled by América Móvil, for the use of Embratel/Claro's networks to sell its IoT Services Portal to local companies as an MVNO.

Pablo Guaita, head of strategic project management for T-Systems Brasil, told BNamericas that global carmakers are the first interested in the services. Overall, the solutions provided by the IoT MVNO are aimed at locally established multinationals that are already clients of T-Systems connectivity services elsewhere, he said.

Brazil is one the countries that bans permanent roaming, which is the reason why, according to Guaita, the company had to apply for and set up a local MVNO operation to provide the IoT connectivity services.

Brazilian regulator Anatel says international roaming must be temporary in nature. Zero-roaming allows an automobile manufacturer, for example, to produce a car with a SIM card embedded and market it globally without the need to have a local SIM country-by-country. Without permanent roaming, communications must be provided locally.

The permit to operate as an MVNO was granted by Anatel in September, and operations should formally begin in the coming weeks, according to Guaita.

Guidance and investment figures were not provided.