Allcom eyes LatAm expansion with IoT, private networks with GE

Brazil-based MVNO Allcom Telecom claims to be the company in its home country with the most internet of things (IoT) accesses in place among non-traditional carriers.

The market size the company reached has led it to start a regional expansion and enter the private networks segment.

“We always thought about expanding our operations in Latin America. Now we are moving forward with that. We opened a subsidiary in Miami to oversee this regional operation and, in addition to Brazil, we have grown in Chile, Colombia, Mexico. And a little in Argentina,” CEO Marcio Fabozi told BNamericas.

Currently, the client base outside Brazil is not that representative. Fabozi said the number of these customers will grow over the next few months and, particularly, in 2025. Allcom reports 5,000 directly served clients and around 8,000 when those served via distributors and resellers are included.

Headquartered in São Paulo, the company offers machine-to-machine (M2M) and IoT solutions, as well as partner equipment and connectivity management applications. 

It provides solutions for financial transactions through point-of-sale (PoS) payment methods, industrial automation, connected cars, electronic security and asset tracking.

Allcom projects revenue of 210mn reais (US$37mn) this year and currently has nearly 4mn connected devices, Fabozi said. It offers connectivity under an MVNO master agreement with Algar Telecom, although it also provides accesses to networks of other carriers.

According to Fabozi, Allcom only has fewer IoT accesses than market leaders Vivo, Claro and TIM. Around 70% of the company’s business comes from tracking, 15% from payment solutions and 15% from utilities, property security and agribusiness. Three years ago, tracking, mostly of vehicles, was over 90% of the business, said the CEO.

With past experiences at Motorola, Cinterion, Gemalto and Sierra Wireless, electrical engineer Fabozi was appointed CEO last December with the task of further increasing the company’s footprint and growing the base of connected devices by 35% in the near term.

The executive is a partner and a founding member of Grupo Allcom, which also includes companies Allblin (vehicle armoring), Sitallcom (acquired in 2022 and focused on tracking sensors) and insurtech Supper Certo Seguros (acquired this October and focused on car insurance).

The goal is to promote synergy between all these operations, he said.

SATELLITE

To advance IoT connectivity, Allcom signed a contract with satellite solutions provider OrbComm. The goal is to have satellite as a connectivity complement to terrestrial mobile networks, mainly for connecting plantations and farms, as well as logistics and maritime transport, said the executive.

The partnership with OrbComm will become effective in November. Another important partnership is the one with chipmaker Qualcomm. 

Fabozi said that the group's Allmanager IoT platform will allow customers to monitor assets anywhere in the country, with features ranging from tracking to more complex solutions such as monitoring engine data, speed and temperature.

Since OrbComm also operates in other countries in Latin America, the expectation is to expand its presence beyond Brazil. 

PRIVATE NETWORKS

Regarding private networks, Allcom inked a regional contract with GE Vernova targeting dedicated connectivity for industries.

Vernova is GE’s unit for smart grids and private networks. It brings together GE’s portfolio of energy businesses, including power, wind, electrification and digital businesses.

This, Fabozi said, “closes the cycle” to make Allcom a one-stop-shop offering for IoT connectivity and private networks ranging from satellite connections to equipment and device management.

With the contract, Allcom will become a distributor and integrator of GE Vernova equipment for the industrial segment, including radio and 4G/5G devices. GE Vernova has its own radio, antennas and network core solutions. All the equipment is imported.

First deals are expected for the coming months and the main focus is energy and utilities.

“We signed the contract with GE in July. We are currently participating in three public tenders and we have a pilot project underway. We expect to monetize at least two private network projects starting next year,” said the executive.