New wireless consortium targets SMBs in the oilpatch

Small- and medium-sized resource companies looking to tap into the booming oil business in Alberta can now do so at a lower cost base by leveraging a GSM-based fleet management service offered by a newly formed consortium that includes Rogers Communications Inc.NelTrac is a joint fleet management service from Rogers, WebTech Wireless Inc., Foster Park Baskett Inc. (FPB) and NelTech Logistics Inc. John Dover, CEO of NelTech Logistics, tells Report on Wireless that the strategy was born of necessity. "NelTech itself evolved out of the need to understand how oil and gas services companies could better purchase assets and have them serviced. And one of the projects that we were challenged with was a GPS tracking system."From there, NelTech saw the need for a strategy that addressed broader requirements, and began discussions with FPB, the largest provider of insurance to the oil and gas industry in western Canada."Foster Park can boast a 98% client retention rate," says Dover. "Then we started talking to Rogers, which I consider to be a highly entrepreneurial company; they clearly understood that participating in this group would have significant advantages."In order to access the product suite, potential customers will use one point of contact through an 800 number of off the NelTech website. Aside from its use of GSM, Rogers was also of interest to the partners because of its recent investments in Alberta."Rogers has made a huge commitment in Alberta," says Dover. "They have put $53 million in towers alone. As well, this relationship isn't about wholesale reselling of Rogers' products and services. Rogers is an equal contributor here - offering manpower, resources, and technology so that NelTrac can move forward."Rogers also had a pre-existing relationship with WebTech Wireless, which helped bring them aboard. WebTech develops and manufactures GPS vehicle tracking and telematics solutions to commercial fleets and consumer vehicles. The company's solution suite supports a range of needs, from reporting and mapping to maintenance, driver status, telemetry, messaging, navigation, and Internet connectivity."We are the fleet management side of the piece," says Brian McKay, a regional business manager at Burnaby, BC-headquartered WebTech. "We've been in business since 1999 and have always been in the GPS fleet management space; we offer tracking tools but, even more important, we can provide data capture and communication with the fleet in the field."Initially WebTech started by focusing on heavy transport in areas such as driver locks and messaging. The company has standardized on Rogers - largely to leverage GSM. Last year it added satellite capabilities."We spoke to NelTech and Rogers, and we saw the value," says McKay. "As a company, NelTech provides umbrella services to SMBs in the oil patch. They offer these smaller companies buying power, whether it is for a new vehicle, a benefits program, or fuel purchase. Providing value to these companies is a good market - there are thousands of them in the oil patch."Lower operating costs key for SMBsThe technology's appeal to small- and mid-size players in the oil patch is that it should help them compete against the big guys, not only by creating efficiencies, but also by making it cheaper to enter higher-risk ventures by using wireless technology to reduce business expenses."It improves a company's risk profile, from controls to security" says McKay. "It stabilizes management objectives, and reduces accident costs. We can talk real numbers to these folks, and in most cases premiums will be reduced."

New wireless consortium targets SMBs in the oilpatch

News | 10/14/2008 2:43 pm EDT

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