Vodafone and investment firm Sumitomo Corporation have established a stand-alone business to drive the development of an “Economy of Things”.
Within such a global ecosystem, vehicles, devices and machines can interact and transact with each other via a secure digital platform, without human intervention, but with owners in full control, say the partners.
“Businesses across multiple sectors can instantly launch new products and create new revenue streams, while consumers will be safe in the knowledge they are dealing with verified devices from a trusted authority,” the two firms said.
Vodafone established its Digital Asset Broker (DAB) platform last year to help extract value from connected devices. Rather than build their own complex system, customers can use the platform to assign a unique digital identity to any device.
This enables it to seamlessly communicate and transact securely with other devices using blockchain technology, where the wallet and payment services are secured by the mobile SIM controlled by the user.
Under the agreement, Vodafone will transfer its DAB platform, as well as intellectual property, contracts, technology and software, into the new business. In turn, Sumitomo will invest in the business and work with Vodafone to attract additional investors, partners and customers.
The initial shareholding of Vodafone and Sumitomo in the new venture will be 80% and 20%, respectively.
Vinod Kumar, chief executive officer of 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.”
The parties intend to roll out DAB in a phased approach, initially targeting the automotive and transport sectors in Germany and the UK, and then other European countries and North America at a later date.
