Markt&Technik: Why do companies rely on Sigfox?

Vincent Sabot: We now have a very good example: Louis Vuitton wanted to give customers a way to track exactly where their luggage is at the airport. For air travelers, it is important that this works across borders in all countries of the world. It was therefore clear to Louis Vuitton from the outset that this was the minimum requirement, because if a customer has a bad experience because the tracking system does not work, then the company achieves the opposite of what it intended. So Louis Vuitton needed reliable data transmission and worldwide functionality. Sigfox can do just that: we cover all regions of the world. Other LPWAN technologies can't do that. Low energy consumption in combination with global networking without roaming charges is the decisive factor for us.

How large is Sigfox's installed base at the moment?

We recently reached 3 million devices in the network, a figure that no other technology can match. Sigfox is the only global network; this year we will be represented in 60 countries. The Sigfox network now reaches 803 million people worldwide, with 30 million more every month.

Can commercial projects now be realized?

That is the most important thing: because we are already represented in 45 countries - 18 of which we cover completely with our network - globally active companies can now set up systems that will bring them a rapid return on investment. Above all, we also have many industrial use cases.

Sigfox is represented in many countries around the world, but it also costs a lot of money to set up the infrastructure. So Sigfox needs to pick up speed in order to turn a profit?

That is happening right now. For 2018, we expect sales of EUR 70 million and 7 to 8 million properties in the network.

What specifically makes you so optimistic that you can achieve this?

As the example of Louis Vuitton shows, we have gained customers in the B2C sector. Louis Vuitton has developed a Sigfox tracker as an accessory for the Horizon models 50, 55 and 70, which is clipped into a pocket in the suitcases. This is an important step for us. Above all, however, we are pleased that we have already gained many partners in the industrial sector.

Much has happened in secret - now it is coming to fruition

How many partners are there?

Around 400, including well-known large companies such as Airbus, Bosch and Total, but also a large number of SMEs. A lot has already happened in the field of electromobility.

What, for example?

Bosch, for example, relies on Sigfox to localize electric scooters.

The automotive sector and mobility concepts should also be an interesting market in other respects.

Yes, definitely, we will soon be publishing something very interesting on the subject of logistics in the automotive sector. And another example from the agricultural sector comes to mind: Fliegl has developed a monitoring system that monitors whether trailers are correctly coupled to the tractor unit and where they are located. The company has even won two awards for this.

Can you give another example of how a typical medium-sized company uses the system?

Of the many examples, Bergische Achsen, a company that manufactures truck axles, comes to mind. It is a typical German medium-sized company that has built its smart logistics system on the basis of Sigfox and is now marketing it to other interested parties. This example also shows very well how the business model can be expanded via Sigfox.

So a lot has happened in secret over the last few years?

Exactly. Because it takes quite a long time to implement a system based on Sigfox, especially in the industrial sector. At Louis Vuitton, it took 18 months, which actually went very smoothly and relatively quickly. The Bosch localization system for the electric scouters also took 18 months to be ready. But that also makes me pretty sure that the forecasts for this year are not exaggerated. Many companies have already shown in their projects that the systems work and are now rolling out the devices.

Everyone is talking about China at the moment. Is Sigfox active there?

We have started in China and will cover the 20 largest cities. India is also developing now.

On a technical level, NB-IoT is now very much on the rise. Could this steal Sigfox's thunder?

The technologies differ and are aimed at different applications. If a high bandwidth is required, as in some smart city projects, then NB-IoT is suitable. The coverage is not as good for this. But not all telecommunications providers rely on NB-IoT. Some do not offer it, such as Orange. There are countries and regions that do not have a network. So this option would not have been an option for Louis Vuitton, for example. We, on the other hand, offer a complete end-to-end service, so we guarantee that the data actually arrives. A telecommunications company doesn't do that.

So the systems would complement each other?

I think so, and so do telecommunications companies such as Telefonica. But others, such as Deutsche Telekom, are not yet convinced. We still have some convincing to do here. But there are also a few other telecommunications providers with whom we are in close contact.

In principle, you don't see yourself in competition with these providers?

We see ourselves as an IoT service provider that sets up its own wireless network to connect even the simplest things. We want to enable companies to use our technology to build precisely the system that helps them solve their problems and penetrate new business areas. An important point here is that companies retain full control over their data and data sovereignty remains with them. Because there are not so many IoT cloud providers in Europe, we believe we are in a very good position.

One key point is the price that users have to pay to be connected. How high is it at the moment?

It's difficult to say, depending on the system, it's probably between 50 cents and 7 euros. However, we are also working hard to further reduce the prices for the modules. In cooperation with the Deggendorf Institute of Technology, it will be possible to produce slimmed-down modules that can be used to network objects for between 20 cents and 1 euro. Even disposable objects, packaging and envelopes could be networked in this way.