Cybit's Siemens deal points to huge revenue boost
By Alec Campbell
Thu 22 Mar 2001
LONDON (SHARECAST) - Cybit’s deal today with the German electronics titan Siemens could bring in thousands of customers for the British telematics firm and give its revenues a substantial boost.CYH - CybitHldgs
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Cybit provides in-car navigational information and breakdown services using call centres, mobile phone links, and GPS satellite navigation. Under the agreement with Siemens, it will co-market GPS Pilot, a hands-free kit for Siemens’ phones which incorporates GPS technology.
Interviewed at CeBIT in Hanover today, Cybit’s managing director Brian Robins predicted that sales could top 40,000 units this year, ultimately reaching 25% of the entire UK mobile market – over 5m units.
In addition to 30% of the hardware sales revenue, Cybit will make money from the £85 annual subscription to their information service. Robins predicted £4.5m sales in 2001, giving Cybit around £1.5m revenue plus subscription fees.
The kit will be sold directly to customers via retail chains such as Carphone Warehouse, alongside Siemens’ mobile phone range. Cybit’s service allows drivers to call breakdown assistance, navigational advice or tourist services over a mobile phone link.
The technology is already on sale in Germany, via ADAC (the German equivalent of the RAC). Unfortunately, as Robins pointed out, it is sold solely as a breakdown assistance service; and the customers who can afford it tend to drive expensive cars, which do not break down very often. Sales in Germany have thus been unimpressive. But with the technology opened up to the other services provided by Cybit, sales could be more extensive.
Future developments in mobile phone technology will not affect Cybit and Siemens’ current monopoly in this area, Robins explained. US legislation requires all mobile phones sold from 2002 on to give out their location to the emergency services, but this technology is bulky, expensive and complicated for network operators to implement. The GPS kit does not even require network operators’ consent to function, and provides a much more accurate position.
The emphasis is on retail consumers, but Cybit will also be marketing the GPS Pilot to commercial clients as a fleet management tool. The huge size of the potential market will push Cybit to expand its call centres later this year.
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Übrigens die Formel 1 setzt jetzt auch auf Cybit und GAP *ggg*
cu Henrys