T-Mobile Case Study

T-Mobile is one of the world's largest mobile operators with more than 123 million customers worldwide and is the service provider of choice for 17.1 million customers in the UK, making it one of the largest networks. The company's common technology platform is based on GSM, the world's most successful digital wireless standard. This also makes T-Mobile the only mobile communications provider with a seamless transatlantic service. Competitive high-speed Mobile Broadband tariffs include access to the largest worldwide Wi-Fi network, with more than 1,000 HotSpots in convenient locations in the UK and 27,000 worldwide.

T-Mobile International is a wholly-owned subsidiary of Deutsche Telekom, one of the world's leading companies in mobile communications. Founded in 1999, it is one of Deutsche Telekom's three strategic business units. Deutsche Telekom and T-Mobile International have twelve direct and indirect shareholdings in mobile communications companies worldwide. The group is the sole or majority shareholder in Germany, the United States, the United Kingdom, Austria, the Netherlands, the Czech Republic and Poland. Deutsche Telekom also has a stake in telecommunications companies in Hungary, Croatia, Slovakia, Macedonia and Montenegro.

The Issue

In the UK, one of T-Mobile's concerns in the early part of the new millennium was the frequency and high cost of accident claims, especially as T-Mobile self-insures apart from third party liability. In 2001, incident rates were some 80 per cent, with 716 incidents reported. A first step to reduce costs was to introduce on-road training in 2002. This included on-line driver assessment, one-to-one on-the-road driving assessment, an on-line refresher after a year and the provision of further training for drivers involved in multiple accidents over a 12-month period.

However, clearly something more impactful had to be done to reduce the above figures, especially given the growing emphasis on workplace-related safety with the publication in the autumn of 2003 of the 'Driving at Work: Managing work-related road safety' guide by the Health and Safety Executive. This highlighted the legal responsibilities of companies, large or small, to comply so far as is reasonably practicable with the Health and Safety at Work etc Act 1974.

According to Nigel Wilkinson, Head of Health, Safety and Environment at T-Mobile UK: "The highest risk work activity at T-Mobile is driving. Aside from the occupational road risks and corporate social responsibilities involved, the financial costs were not inconsiderable. The total cost of accident claims in 2003 was £587,502.

The Solution

"Working with our fleet management provider, Leasedrive Velo, we conducted a full driver risk assessment. This involved driving licence records, medical history, accident claims frequency and repair costs. We identified problem areas and our drivers most at risk. Regular offenders were flagged and drivers made more accountable through the implementation of driver excess schemes.

"To effectively manage our drivers, we needed to have a consolidated picture and Leasedrive Velo provided us with a total risk analysis safety management system complete with full audit trail.

"Our Occupational Safe Driving Policy requires all line managers to conduct a recorded annual driving licence check, all drivers to complete an e-learning on-line risk assessment and all new employees to receive on-road training, along with identified high risk drivers. Furthermore, drivers with two or more 'at fault' incidents in 24 months are penalised.

"These measures saw our accident statistics reduce to 55 per cent in 2004 but with only a further percentage drop the following year the figures were levelling out. We needed to do more. The initial introduction by Leasedrive Velo of Green Road Technology, a revolutionary in-car drive diagnostic system, has really made an impact and differentiated us from other organisations."

Green Road Technology

Green Road Technology is a revolutionary new telemetrics device which provides drivers with relevant information to modify their driving styles. Once the engine is started, on-board sensors rate 120 driving manoeuvres based on measurement of speed, cornering, handling, lane changes and braking manoeuvres. Information is fed directly to a visual LED light display mounted on the dashboard. Manoeuvres are classified into three categories: green, amber or red, with corresponding light displays. Zero to 20 manoeuvres are green for 'safe', 21 to 50 are amber for 'adequate' and 51+ are red for 'cause for concern'. Each unsafe manoeuvre is registered on the display within fractions of a second to give the driver instant real-time feedback.

The data is transmitted by GPS and logged on a database. Each driver can then view the information over the internet via their own private log-in. They can analyse each journey and identify where they made unsafe manoeuvres and modify their driving behaviour accordingly.

Green Road Technology was piloted in October 2005 with very positive results. The business case for a fuller roll-out was put forward based on the fact 39 per cent of all drivers caused 51 per cent of all accidents. Installation started in September 2006 with up to ten vehicles per day fitted. By 2007, Green Technology was installed in 250 vehicles.

The Results

Latest results show that the road traffic crash rate dropped by 14 per cent compared to the period 2004 to 2006, with a 20 per cent reduction over 2006. The cost of accidents dropped by 26 per cent compared to the 2004 - 2006 period, with a 49 per cent reduction over 2006.

Secondary benefits included a fuel consumption improvement of three per cent over 2006, leading to fuel savings of over £20,000, with associated CO2 emission reductions.

The average number of unsafe manoeuvres per driver halved from 81 in December 2006 to 41 a year later and speeding events were reduced by 25 per cent.

"In 2007, the total fleet road traffic accident rate was down to 34 per cent despite 282 vehicles still running without Green Road technology. Total repair cost savings for 2007, including lost productivity, administration and hire car costs, amounted to over £400,000, a significant return on investment."

The savings are based on Leasedrive Velo accident management reports.

In June 2008, Nigel Wilkinson was presented with a Driving for Better Business 'Champion' certificate on behalf of T-Mobile by HRH Prince Michael of Kent GCVO, the patron of RoadSafe. The certificate was endorsed by the Transport Minister. Driving for Better Business aims to develop a network of employers from all industries to promote good practice and reduce the frequency and severity of 'at work' road crashes.