The Estonian company 1oT, which operates in the IoT sector by providing network connectivity for devices, has recently signed a contract with the major American telecom company T-Mobile. Securing this cooperation took years of testing and negotiations, with customer input also involved.

In 2022, 1oT established its subsidiary in the US to serve its growing North American customer base: the goal was to have a team and permanent presence in local time zones.

The company immediately started negotiations with local telecom operators. “A lengthy negotiation process preceded the signing of the cooperation agreement with T-Mobile US. Our customers were also involved, helping us test the service and provide input on pricing packages and technical capabilities,” said Märt Kroodo, CEO of Estonian startup 1oT.

“We acquired CheerIoT’s customer base because its owners had developed other business interests over time and wanted to find a new home for their existing clients.”
Märt Kroodo, CEO of 1oT

Since October, 1oT has been providing local telecom services in the US via its eSIM technology. The cooperation was announced during Estonian President Alar Karis’s visit to Chicago in the US, where he was accompanied by an Estonian business delegation. The event was organised by Enterprise Estonia in partnership with the Estonian Embassy in Washington.

“Primarily, we serve clients (in America) whose IoT devices consume a lot of mobile data, such as autonomous vehicles and cameras, and who need a local network rather than roaming services,” explained Kroodo.

“Over time, we have hired Spanish-speaking salespeople to serve clients from Latin America as well. The region has become a rapidly growing and promising market for 1oT,” Kroodo emphasised.

1oT expands rapidly in Europe

In recent years, 1oT has also substantially strengthened its presence in Europe and grown its customer base. Currently, Europe is the company’s primary and largest market. In 2024, the company entered the Turkish market, and this spring it acquired the Dutch company CheerIoT. The deal resulted in 50 paying customers.

“We acquired CheerIoT’s customer base because its owners had developed other business interests over time and wanted to find a new home for their existing clients. These were customers who had purchased SIM cards and connectivity services from CheerIoT for their smart devices and used the service in 52 countries worldwide. Since 1oT has a good reputation in the IoT connectivity market and we had a good relationship with CheerIoT’s owners, we quickly reached an agreement,” said Kroodo.

Currently, 1oT has 3.5 million devices using its connectivity services in 173 countries worldwide.

Targeting Latin America, the Middle East, and Asia

According to Kroodo, the company sees growth opportunities in Latin America, the Middle East, Southeast Europe, and Asia. Despite recent successes and expansion, the company currently plans to avoid establishing new subsidiaries, as this would complicate administration. Instead, the focus is on hiring local salespeople in potential new countries if necessary.

“Globally, we are still a small company and do not have 1,000 employees worldwide. Therefore, the hardest part is gaining trust and winning large tenders organised by big corporations.”
Märt Kroodo, CEO of 1oT

Today, the company has employees not only in Estonia but also in the US, Mexico, Sweden, Pakistan, and Thailand. Many work remotely and are employed through either the Estonian or American LLC.

The biggest challenge for 1oT today is its small size: “Globally, we are still a small company and do not have 1,000 employees worldwide. Therefore, the hardest part is gaining trust and winning large tenders organised by big corporations,” Kroodo explained. Currently, 1oT is an ideal partner for smaller clients, with whom the company itself has grown. “The biggest challenge is to find increasingly larger IoT companies to serve—those who need at least 100,000 eSIM cards for their devices.”

Software development brought quality and cost efficiency

Kroodo admits that the company’s ambition is nothing less than to be a globally recognised player. “Half-jokingly, we say internally that we are like a tank, growing quietly but steadily, client by client and SIM by SIM,” he said, adding that there is room for expansion, though competition with large rivals is fierce.

“What distinguishes us is our strong technical solution and the fact that we have developed our own software—specifically, the SIM management environment and eSIM technology. This allows us to maintain control over quality and be more cost-efficient. Additionally, we can provide much more personalised and higher-quality customer service,” he explained.

Today, 1oT resells 12 different telecom services worldwide. Among its more prominent partners are KPN IoT (Netherlands), Deutsche Telekom (Germany), Vodafone (Netherlands), Tele2 IoT (Sweden), Turkcell (Turkey), BICS (Belgium), and CITIC Telecom (Hong Kong).

“From all telecoms we get roaming services, which means that through them we gain access not only to their home networks but also to their global coverage,” said Kroodo. “Thus, for each telecom we resell to our clients, we can assess which pricing package and technical capability best fits the client’s business model,” he clarified.

1oT set to change market trends

The company is proud of all its current agreements but hopes to secure contracts next year with telecoms in the Middle East, Africa, and Asia. Additionally, 1oT aims to introduce its eSIM technology to the IoT market in 2026 and establish it as the industry standard.

“What distinguishes us is our strong technical solution and the fact that we have developed our own software—specifically, the SIM management environment and eSIM technology. This allows us to maintain control over quality and be more cost-efficient.”
Märt Kroodo, CEO of 1oT

“In 2024, we were the first in Europe and the second in the world to certify the new IoT eSIM version. This is an advancement of eSIM technology that eliminates previous technical problems in implementing eSIM in the IoT sector. We have all seen how widely eSIM cards are used in phones, but they are not as common in IoT devices,” Kroodo explained. Next year, the focus will be on introducing it to the market.

FACTS

• Estonian startup 1oT is transforming the IoT industry with innovative eSIM solutions that allow smart devices to connect to networks easily. 1oT solutions are available worldwide.
• The largest sector using 1oT’s service is the scooter-sharing industry. Another prominent area is fleet management – all kinds of cars and trucks are tracked to monitor their locations, estimated times of arrival, fuel consumption, and more.
• Among more exciting applications, their eSIMs are also used in tracking devices for endangered birds, beehives, and various animals. They can be found in heart monitors, smart city solutions such as electric vehicle chargers, air pollution monitors, outdoor lighting posts, and elsewhere.

GOOD TO KNOW
1oT

Founded: 2016
Industry: Telecommunications
Employees: 30
Turnover 2024: 4,5 million euros
Important partners: T-Mobile (USA), KPN IoT (Netherlands), Deutsche Telekom (Germany), Vodafone (Netherlands), Tele2 IoT (Sweden), Turkcell (Turkey), BICS (Belgium) and CITIC Telecom (Hong Kong)
www.1oT.com

Are you interested in trading with Estonia? Enterprise Estonia is providing sourcing services for foreign enterprises. Contact Estonian export advisors or use our free e-consulting service to start trade with Estonia.