The automotive industry is investing huge amounts of capital in technologies for self-driving cars. To meet this rapidly growing demand, Terranet has revamped its entire strategy, having gained traction in a short period.
First movers like Tesla have forced larger automotive companies to play hard to catch up with the development of electric and autonomous vehicles becoming the hottest trends:
“We're seeing something we've never encountered before in the company's history,” says Pär-Olof Johannesson, CEO of Terranet. "There is a huge market demand from the automotive industry, specifically, self-driving cars. However, before we can see such cars deployed on roads on a larger scale, safety must be guaranteed. This is where we come into the picture. We have the experience and the technology to help save lives.”
New strategy and streamlining of the business
Terranet's years of intensive research and development have previously resulted in a new global standard adopted by Wi-Fi Alliance. The standard was gradually launched by mobile and microchip manufacturers in 2017 worldwide. This has validated Terranet as an authority in the space, which is now driving interest from the automotive industry for the company's technology solutions.
Terranet's patented algorithms enable streaming data, voice and video completely independent of mobile networks. This means that cars, trucks and buses can locate other vehicles with high precision for low latency and low power consumption - even under radio blind-spots where there is no coverage.
In order to meet the growing demand, Terranet has in a short time, streamlined its operations and implemented a number of changes. The company is now only investing in designing and optimizing software for self-driving vehicles.
“We were at a pivotal point and decided to focus all energies towards the automotive sector. We realized that it is the fastest way forward for us to capitalize on our unique technology, which we are certain will create value for our shareholders,” explains Pär-Olof Johannesson. “In just a few months, we have worked up a log with customer inquiries from leading manufacturers and subcontractors in the industry. We have now built up a pipeline of substantial commercial interest, giving us opportunities for further business."
“We're seeing something we've never encountered before in the company's history,”
CEO - Pär-Olof Johannesson
"Terranet's patented algorithms enable streaming data, voice and video completely independent of mobile networks."
Terranet's business benefits from a vitalized customer base at home
Terranet now enjoys a strong home market. With Volvo at the forefront, Sweden has a strong automotive industry that is investing heavily in self-driving cars.
“We will make money in several steps. Right now, we are paid for the work we do for our customers,” says Pär-Olof Johannesson. "In two or three years, we expect to start bringing in licensing revenues, once the market for self-driving cars starts to take off."
One way for Terranet to speed up commercialization is to enter into strategic partnerships.
"In this area, it pays to work collaboratively across clusters," says Pär-Olof Johannesson.
One such important 'cluster collaboration' is with Waysure who are specialists in satellite-based GPS navigation and absolute positioning.
In January 2019, for example, we signed a partnership agreement with US-based Verizon for participation in their field tests. Our algorithms should be calibrated against the new 5G standard projected to become the dominant technology in vehicle-to-vehicle communications. We've additionally signed a strategic partnership agreement with India-based Qubercomm, among others, in order to expand our capacities quickly when contracts are secured. Such partnership agreements allow us to take on system commitments and larger orders in the future. As a shareholder, seeing such agreements serves as a sign that we are on the right path.”
One of the main drivers behind the strong interest in autonomous vehicles is personal safety, but also environmental sustainability and operating efficiency. The human factor is often the leading cause of accidents - advocates believe that the technology will eventually save many lives. As CEO of Terranet, Pär-Olof Johannesson is confident of the future ahead.
"We have something that is in demand, we have built up a pipeline, and we are on the right path," he concludes.
"Our vision is to develop active safety systems that save lives."
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