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Cisco and TELUS Pave the Road for Enhanced Connected Car Experiences and New Revenue Opportunity for Carmakers

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Cisco and TELUS launch new 5G capabilities in North America to serve IoT use-cases for industry verticals, focusing on connected cars. TELUS expects to onboard over 1.5 million 5G standalone cars onto the Cisco IoT Control Center by 2024, enhancing driver experiences and creating new revenue streams.
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The collaboration between Cisco and TELUS to launch new 5G capabilities tailored for IoT use cases, particularly in the connected car industry, represents a significant stride in technological advancement. This partnership is expected to facilitate the onboarding of over one and a half million 5G standalone cars, which could signal a substantial market opportunity for both companies. The integration of Cisco's IoT Control Center with TELUS' network could potentially lead to an increase in demand for connected car services, subsequently influencing the stock performance of both entities positively.

From a market perspective, the automotive industry is rapidly evolving with the integration of IoT and connectivity features becoming a standard expectation among consumers. This shift towards connected vehicles is not just a trend but a transformation of the automotive value chain that could unlock new revenue streams for manufacturers and service providers alike. As the market for connected cars grows, investors could see this partnership as a strategic move to capture a significant share of a burgeoning market.

The financial implications of the Cisco and TELUS partnership could be manifold. For Cisco, this move is an extension of their Mobility Services Platform strategy, which may enhance their competitive position in the mobile connectivity management space. The ability to offer advanced network services and subscription models could lead to diversified and recurring revenue streams, a positive indicator for Cisco's financial health. TELUS, on the other hand, could see an increase in network utilization and customer base, potentially translating into higher revenues and improved network efficiency.

Investors should note the long-term nature of such technological investments. While initial capital expenditures may be substantial, the future revenue potential from service subscriptions and enhanced customer experiences is considerable. Moreover, the ability to offer on-demand services and manage vehicle lifecycles suggests a move towards a service-oriented business model, which is typically associated with higher margins and customer retention rates.

5G technology is pivotal in enabling the next generation of IoT applications, particularly in the connected car space. The collaboration between Cisco and TELUS is indicative of the industry's push towards leveraging 5G for its low latency, high reliability and increased bandwidth capabilities. The introduction of OnDemand network slice creation and full-stack observability points to a future where network services can be tailored to specific use cases, enhancing the quality of service and potentially leading to better customer satisfaction.

Moreover, the transition from LTE to 5G in the automotive sector is a key development. It not only promises improvements in vehicle-to-everything (V2X) communication but also in the deployment of advanced driver assistance systems (ADAS). This could lead to improvements in road safety and efficiency, which are critical aspects of the connected car value proposition. As the market matures, these technological advancements could become a standard expectation from consumers, thereby reinforcing the importance of early investments in 5G infrastructure by service providers like TELUS and technology enablers like Cisco.

News Summary:

  • Cisco and TELUS launch new 5G capabilities in North America to serve IoT use-cases for industry verticals, with a focus on connected cars.
  • TELUS and Cisco's Mobility Services Platform (IoT Control Center services) introduces paths to enhance the driver experience and ways for car manufacturers to realize new revenue streams.
  • TELUS expects to onboard over one and a half million 5G standalone cars onto the Cisco IoT Control Center over the next several years, starting in 2024.

BARCELONA, Spain, Feb. 26, 2024 /PRNewswire/ -- MOBILE WORLD CONGRESS -- Cisco (NASDAQ: CSCO) and TELUS today announced they are launching new 5G capabilities in North America to serve IoT use cases across industry verticals, with a focus on connected cars. The network will serve as a foundation to support drive testing by a major North American automotive manufacturer's 5G Connected Car, while setting the stage for enhanced experiences for customers and revenue opportunities for carmakers.

With these enhanced capabilities, TELUS Control Center powered by Cisco can now support automated provisioning, dynamic policy, charging and quota management outcomes to launch new subscription services on demand, and manage SIM and vehicle lifecycle for any Connected Car OEM or enterprise.

Paving the Way for Seamless Connected Car Experiences
Cisco and TELUS are enabling connected car OEMs to orchestrate and automate the end user experience effortlessly with IoT Control Center's rich REST API portfolio. This launch enables the OEM to leverage TELUS' high-performance wireless network to introduce 5G enabled telematics, infotainment applications and advanced network services, along with subscription Wi-Fi services to customers.

With electrification and software-defined vehicles driving the future of the connected mobility ecosystem, this innovation lays the foundation for OEMs to offer new on-board applications and advanced driver assistance system (ADAS) services in the future, while carving a path into subscription services to support OEMs' revenue diversification goals. Consumers can subscribe to services OnDemand from the vehicle or an OEM web portal, access threshold-based subscription notifications and renew or cancel services seamlessly – all of which can be orchestrated by the OEM using IoT Control Center, Cisco's market-leading Mobility Services Platform.

"Cisco Mobility Services Platform with 5G is ushering in a new era for connected cars to deliver amazing customer experience for the drivers while paving the path for carmakers to drive better experience and services over mobile networks," said Masum Mir, Senior Vice President and General Manager, Provider Mobility, Cisco. "As the leader in Mobile connectivity management, networking and enterprise mobility services portfolio, Cisco continues to innovate to drive service enablement, simplified operation and business value for service providers and OEMs."

"As a global technology leader, TELUS prides itself on delivering the best in connected car capabilities, which is why we are excited to partner with Cisco," said Jodi Baxter, Vice President 5G & IoT Connectivity at TELUS. "We have Canada's only dedicated IoT Core network and this partnership is an important step in supporting 5G Drive testing for vehicle manufacturers and transitioning LTE vehicles to our superior network, which will help create a safe and more connected experience."

Driving Network Control with IoT Connectivity
The collaboration also introduces OnDemand network slice creation, full-stack observability with service assurance and life cycle management capabilities in a contained lab environment, aimed at supporting advanced, mission-critical use cases in the future. Cisco and TELUS are laying the foundation for OEMs to get full visibility and control of their network services and drive quality of service on demand with predictive intelligence and automated assurance so they can offer a delightful end customer experience.

The collaboration is a foundational building block of Cisco's Mobility Services Platform strategy to enable service providers to maximize return on investment with minimal risk, drive 5G monetization with new value-added services and API based network programmability outcomes.

About Cisco
Cisco (NASDAQ: CSCO) is the worldwide technology leader that securely connects everything to make anything possible. Our purpose is to power an inclusive future for all by helping our customers reimagine their applications, power hybrid work, secure their enterprise, transform their infrastructure, and meet their sustainability goals. Discover more on The Newsroom and follow us on X at @Cisco.

Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco's trademarks can be found at www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company.

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SOURCE Cisco Systems, Inc.

FAQ

What are the key highlights of Cisco and TELUS's new 5G capabilities launch in North America?

Cisco and TELUS have launched new 5G capabilities to serve IoT use-cases across industry verticals, with a focus on connected cars. This initiative aims to enhance driver experiences and create new revenue streams for car manufacturers.

How many 5G standalone cars does TELUS expect to onboard onto the Cisco IoT Control Center?

TELUS expects to onboard over one and a half million 5G standalone cars onto the Cisco IoT Control Center over the next several years, starting in 2024.

What services can connected car OEMs leverage with the new 5G capabilities launched by Cisco and TELUS?

Connected car OEMs can leverage TELUS' high-performance wireless network to introduce 5G enabled telematics, infotainment applications, advanced network services, and subscription Wi-Fi services to customers.

How does the collaboration between Cisco and TELUS benefit OEMs in the connected mobility ecosystem?

The collaboration enables OEMs to offer new on-board applications, advanced driver assistance system (ADAS) services, and subscription services to support revenue diversification goals, all orchestrated through Cisco's Mobility Services Platform.

What control and management capabilities are introduced through the collaboration between Cisco and TELUS?

The collaboration introduces OnDemand network slice creation, full-stack observability with service assurance, and life cycle management capabilities to provide OEMs with full visibility and control of their network services.

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