UK-headquartered telecoms group Vodafone and Japanese trading and electric services company Sumitomo Corporation have announced an 80/20 standalone joint-venture to drive the development of automated machine-to-machine IoT transactions, under the banner of the ‘economy of things’. Vodafone will contribute its blockchain-based Digital Asset Broker (DAB) IoT trading platform to the venture; Sumitomo will invest in the business and also draw-in additional investors, partners, and customers.
Vodafone is also contributing intellectual property, contracts, technology and software. Its DAB platform was unveiled at MWC last year, as an engine to support a new ‘economy of things’, enabling verified IoT devices to securely transact without human intervention, but with human (‘owner’) control. It has been pitching the platform for usage in the automotive, energy, manufacturing, and supply chain sectors. With new backing from Sumitomo, the venture will continue as a standalone business focused particularly IoT devices, electric vehicles, and smart street furniture
Initial ownership of the new Economy of Things project will split 80/20 between Vodafone and Sumitomo, respectively. It is subject to regulatory approval. The two parties will launch the DAB platform in a phased approach, they said, initially targeting the automotive and transport sectors in Germany and the UK, followed by other European countries and North America. They will also look to partner with Sumitomo group company SCSK Corporation to establish a presence in the Asian market, including Japan, with a long-term vision of entering the smart city game.
A statement said: “Customers can use the platform to assign a unique digital identity to any device… to seamlessly communicate and securely transact with other devices using blockchain technology where the wallet and payment services are secured by the mobile SIM…. Machines… can be quickly verified as trustworthy and automatically allowed to exchange and trade data and money…. Businesses… can instantly launch new products and create new revenue streams while consumers will be safe in the knowledge they are dealing with verified devices.”
Vodafone and Sumitomo have worked together since late 2020, when they created Safaricom Ethiopia with an international consortium of partners.
Vinod Kumar, chief executive at Vodafone Business, said: “Sumitomo is the ideal partner to help drive the Economy of Things and associated new business opportunities for us, our customers, and partners. For example, a rental car could charge motorists on either a pay-as-you-drive or subscription basis; motorists of electric vehicles can receive real-time information on the availability of the nearest charging point and recharge effortlessly; and fleet management firms can automatically pay tolls.”
