Phani Pandragi, Kii, IoT Forum 2016, Carrier Partnering

March 9-10, 2016 - Cambridge (UK)

Phani PandrangiChief Product Officer

Carrier Partnering As a Route To Recurring Revenue

About Kii

Kii’s IoT platform enables device manufacturers to create smart, connected products

Founded in 2007 after MBO from Nokia

HQ in Tokyo, US HQ in Silicon Valley and offices in China, Taiwan, Hong Kong and Europe (UK, Spain, Germany)

Kii co-founded IoT ecosystem “Space”(iotspace.org) enables distribution of IoT solutions into retail and carrier channels

@KiiCorp Kii.com

Recurring Revenue with Direct Sales

Recurring revenue is hard in this model because:

• No existing billing relationship with the customer

• Finding and capturing the customer is hard

• Higher bar for justification of recurring revenue

• Additional services (support, installation, logistics etc.) need to be in place – and are not easy

Recurring Revenue with Carrier Partnering

Recurring revenue more accessible in this model:

• Customer has existing (recurring) billing relationship with carrier

• Customer is captive to the carrier – so add-on upsell possible

• Recurring monthly fees is known and normal for the customer

• Carrier already has infrastructure (support, installation, logistics etc) – plus they have stores too!

• Most importantly, carriers want to monetize IoT

Recurring Revenue with Carrier PartneringCase Study

Text, data and voice plans that consumer is subscribed to

Tracker service for the kid

• Easy to add the new IoT “tracker” service to the account for $X more per month.

• Net new demographic added (kids) – carriers love this

• In-store and online sales

Kid Tracker - location tracking, two way calling

Add

Recurring Revenue with Carrier PartneringCase Study

• Add Wi-Fi smart bulbs as an additional tracker notification mechanism for the family

• Add Camera as confirmation mechanism – when kid gets home for example

• Neither bulb nor camera are products from tracker vendor (Haltian) – but carrier has relationship with them

• Additional services make additional recurring revenue

Not limited to products which need carrier connectivity

• This camera solution doesn’t use carrier connectivity (uses Wi-Fi)

• However, carrier can make this available as an add-on service to account

• And charge recurring revenue (monthly) for security service

• Camera manufacturer gets all the aforementioned benefits of carrier partnering

Thank you!

@PhaniPandrangi phani@kii.com

@KiiCorp Kii.com

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