Research note


Talkpool: Enables the backbone needed to increase sales in IoT

Yesterday evening Talkpool published that they, together with a group of investors, have founded Nordic IoT Networks (Niot), where Talkpool will be a minority owner. Niot objective is to secure a rapid roll out of LoRa-network in the Nordic. We believe that the foundation of Niot reflects Talkpool’s view that the current implementation rate of IoT-network as too slow and that Talkpool already hold a commercial IoT-portfolio.

The slow roll out of IoT-network in the Nordics is, in our belief, the main argument to why Talkpool and a group of investors founded Niot. Thanks to the foundation of Niot, Talkpool will be in charge of the implementation of LoRa-network (Low power wide area network radio technology) across Sweden, Denmark and Norway. Talkpool has previously built LoRa-networks in the cities mentioned in the press release, hence, Stockholm, Gothenburg, Malmö/Lund and Uppsala. However, these implementations are not a part of a nationwide implementation plan. Now, Niot will have an evident focus on implementation of LoRa-network to increase LoRa-coverage across Sweden, Norway, and Denmark. We believe that Talkpool’s role initially will be to support the implementation and operations & maintenance (O&M) of the LoRa-network, to supply IoT-solutions in the future.

According to us, the most important thing to derive from the foundation of Niot is that Talkpool feel like they have a strong product portfolio in IoT and that many projects are soon to start. However, the implementation of LoRa-networks has been lagging behind. Thus, a significant threshold for Talkpool to further increase sales in IoT. We see Talkpool’s dedication in the area of IoT essential as to how the market of IoT looks today and has looked for a long time, where operators mostly do minor proof of concepts. A nationwide implementation will enable Talkpool to supply their IoT-solution (better gross margin than the usual telecom network services) nationwide and, thus, transforming towards the final phase of their strategy; to sell a service/system instead of a product. Due to these reasons, we see this step as a necessary move by Talkpool and we are looking forward to the first quarter report this Friday (25/5).

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