Real 4G transition: How telematics providers can keep clients and grow

Telematics service providers are struggling with the transition from 3G to 4G as mobile networks upgrade. This article showcases the successful experiences of Navixy’s partners, who implemented comprehensive migration plans for approximately 3,000 vehicles each, meeting tight deadlines. Read now to discover valuable insights on how to elevate your company during challenging times and retain your client base despite industry disruptions.

4G and 5G networks are expanding globally, replacing the outdated 2G and 3G technologies. Navixy’s long-term customers, 7daystechno, joined the platform nine years ago, and GEOCAL NC, a partner of more than five years, shared their unique experiences of transitioning several thousand units to the 4G network in just a few months.

Learn how Navixy can support your business during a challenging time. Schedule a free consultation.

Case study from Morocco: How network upgrades can drive business to the next level

At the end of 2023, 7daystechno faced the Moroccan government's ban on the import of 2G devices and introduced policies aimed at modernizing telecommunication systems. This shift presented several challenges for the partner, a telematics service provider operating across multiple industries, primarily serving car leasing, rental, logistics, and transportation businesses.

4G transition business challenges for TSP:

• Tight deadlines: The government’s policy, announced in late 2023, gave businesses less than six months to transition to the 4G network.
• High costs: Car rental and logistics companies faced significant and unexpected expenses for upgrading their fleets to newer vehicles, along with the need to replace their trackers with 4G-compatible devices. According to a 7daystechno representative, 4G trackers are priced 20-40% higher than previous-generation models.
• Stock management: The reseller needed to offload 2G devices quickly before the network phased them out entirely.
•  Client sensitivity: Clients, still recovering financially from the pandemic, were price-conscious and hesitant about the higher costs associated with the new technology.

A step ahead: How TSP can use the 4G transition to grow the business

The transition to 4G was an opportunity to rethink our approach and optimize our operations. Not only did we meet the migration deadlines, but we also strengthened our growth strategy. By implementing smart planning and proactive stock management, we secured our business and maintained our position as a market leader.

Yassir ELMOAJID, CEO of 7daystechno

To address challenges, 7daystechno implemented a multi-faceted strategy:

• Optimizing seasonal downtime: The transition was strategically scheduled during November and December, when rental and logistics activities slowed down.
• Allocating resources: The partner hired additional technicians to handle installations and onboard new clients efficiently.
• Introducing value-driven messaging: Instead of emphasizing costs, they framed the transition as a commitment to cutting-edge technology, ensuring the clients recognized the long-term benefits.
• Expanding to new markets: The partner targeted larger organizations and governmental contracts that were less price-sensitive and dependent on seasonal demand. The sales team also brought in several managers to help attract new customers.
• Minimizing existing stock: The remaining 2G devices were sold to smaller local B2C clients who could still utilize the technology in the short term.

Results: A model for success in telematics migration

• Fleet upgrades completed: Migrated hundreds of fleets to 4G-compatible devices within six months.
• Stock depletion: Successfully sold off the remaining 2G devices to smaller clients for short-term use.
• New opportunities: Secured contracts with large transport companies and potentially governmental fleets.
• Enhanced client trust: Clients now recognize the reseller as a forward-thinking partner offering only state-of-the-art solutions.

Explore whether a tracker is integrated with the Navixy platform. Check our Device list.

Case study from New Caledonia: How to support and retain clients during the 4G migration

In 2022, the sole telecom operator in New Caledonia informed the telematics service providers about a gradual phase-out of 2G services, leading to a total shutdown in 2025. Initially announced for January 1, 2025, it’s now scheduled for March.

In 2022, a telecom operator announced that the shutdown would occur in 2023. We made it clear that this timeline was not feasible. We were not pushed by the government but had no choice given the exclusivity of the local telecom operator.

Florent Florent Asselin,
Head of Commercial, GEOCAL NC

GEOCAL NC’s action plan: Client-oriented approach

1. Following the announcement, our partner stopped purchasing and selling 2G equipment and urgently ordered new equipment. While waiting for the order to be delivered, clients were offered two options. If installation was urgent, they could equip their fleet with 2G devices and undergo a second intervention (at TSP expense) to replace the devices once the 4G equipment arrived. Otherwise, GEOCAL NC proposed that the client wait until the new equipment arrived before proceeding with the installation.
2. Compiling a list of active 2G devices within GEOCAL NC fleets and identifying impacted clients was necessary.
3. Clients were prioritized based on the number of vehicles affected in their company. The timely notice allowed GEOCAL NC to handle each case individually, considering the purchase date of their last 2G device and minimizing the risk of losing contracts.
4. Some GEOCAL NC customers had purchased their equipment, while others rented it, with or without a maintenance contract. Clients renting equipment with a maintenance contract benefited from a full replacement covered by GEOCAL NC. The rest had to pay all or part of the replacement costs. This strategy prevented clients from using the new technical requirements as an opportunity to switch to alternative providers.
5. A rigorous follow-up was necessary to monitor the progress of replacing over 2,700 2G devices.

This effort enabled GEOCAL NC to maintain activity and generate revenue during the particularly challenging year of 2023.

Insight into communications with clients

Focus on the benefits of migration. The 4G transition is more than a technological upgrade—it’s a leap toward faster, more reliable, and highly efficient telematics solutions. High connection speeds enable it to receive and analyze data in real time. For Navixy’s users, this brings several benefits:

• React faster if the driver starts leaving the Geofence zone.
• Immediately disable an engine in the event of an incident or violation.
• Get the benefits of video telematics technologies for preventing road accidents, such as the ADAS warnings packages.
• To manage the driver’s status, the DMS warnings package helps to monitor the condition of the person behind the wheel.
• The Eco driving report provides insights into the driving behavior, motivating the drivers to adopt safer practices.

For more useful insights into the global trend of switching to 4G/5G networks, read our blog post: A guide for telematics providers on the 4G/5G transition.

Conclusion: Navigating the road ahead

The migration experiences of 7daystechno and GeoCal NC demonstrate that successful 4G transitions require strategic planning, clear communication, and business model adaptation. Their strategies underscore the importance of early preparation, value-driven client communication, and flexible deployment, turning technological challenges into business growth opportunities.

As networks continue to evolve, stay ahead of the curve with Navixy. Contact our team for a free consultation on building a migration strategy that minimizes disruptions and maximizes competitive advantages. Schedule your consultation today.