Making Homes Smarter With MTS

MTS has signed a partnership agreement with Redmond, the producer of household appliances, aimed at developing and promoting services in the field of the "Internet of things" (IoT) to consumers. This unique strategic initiative reinforces the status of MTS as a leading innovator among telecommunications companies.

As part of the agreement, MTS will provide Redmond with smartphones with pre-installed software and embedded telematic SIM cards with a special M2M tariff that enables consumers to control their household utilities online. By promoting "smart home" solutions MTS expects to increase both the number of active data-SIM-cards per household and the number of mobile Internet users, since around 30 percent of smartphone owners do not currently use Internet services.

SIM cards with a special M2M tariff plan will be installed in smartphones that are sold with household devices such as coffee machines, electric kettles, scales, multicookers and irons. The smartphones can kept in the home and used as routers connecting with the devices via Bluetooth.

Customers are able to monitor the status of these household devices and remotely control their functions via a downloadable app. For example, users can enhance household safety by checking whether an iron has been switched off or preventing children from switching it on. They will also be able to maximize comfort by remotely activating heating systems to ensure the home is warm on arrival.

"'Smart' houses have become commonplace in our lives, and our appliances make it affordable and easy to control" said Tatiana Ivanova, Redmond's director of marketing in Russia.

MTS and Redmond plan to first promote solutions for homes in Moscow and St. Petersburg. By the end of 2015, the partners hope to expand sales to all regions of the country and present some new models of home appliances with remote control like a humidifier, fan, air purifier, intelligent socket, intelligent socket for lamps, power filter and key to search for objects.

Until recently, MTS has primarily worked on IoT with corporate clients. MTS serves around 50 percent of this market by volume of SIM cards.

In H1 2015, the number of MTS SIM cards sold for M2M vehicles increased by 20 percent year-on-year, reaching 3.2 million. During that period, M2M SIM cards generated 18 percent of the total traffic consumed by corporations, twice as much as in H1 2014.

"MTS has  become the first operator to focus on developing IoT solutions in the B2C segment in Russia. Today, we are the leader in mobile data revenue growth and in the M2M segment," said vice president and chief marketing officer of MTS Vasyl Latsanych.   

Doing Business in Russia 2015
Doing Business in Russia 2015
The business community in Russia has reasons to be optimistic, as there really does seem to be light at the end of the tunnel.
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