News

A leading telematics supplier believes the sector is in danger of undervaluing itself by offering products on a pay-as-you-go (PAYG) basis.

David Isom, managing director of V-SOL vehicle tracking, warns that "pricing rather than performance" has become the main selling tool and tracking technology is now "too cheap".

Last week, CM revealed that the majority of former GlobalLive customers are now paying extra amounts introduced by new owner Causeway to ensure continuity of connectivity.

Peter Nagle, Causeway chairman, tells CM that telematics in general "has to be pay-as-you-go" and suppliers must adjust their business operating models so that they are "not dependent upon up-front leasing deals for funding their working capital".

Meanwhile, telematics provider Minorplanet Systems has revealed it is to raise a guaranteed £1.55m through a share placing of £1.15m and block discount loan of £400,000. An open offer of shares could take the total raised to £2.11m.