COMPANY HISTORY
What did Teltonika look like in the beginning? How did it grow from one-person business to a large company group?
Arvydas Paukštys, founder of Teltonika
The truth is there was no luck or lottery.
It was a path of strenuous searching and testing, numerous mistakes, and failures, balancing on the edge, taking risks, and hoping that maybe we will succeed next time. And we did it. We strongly believed in what we do – faith has helped us to overcome all challenges.
When I was 11 years old, I built my first radio. From then on, the desire to build a more and more sophisticated device grew exponentially. At the age of fifteen, I earned my first money repairing broken TV sets and radios in my village. It sparked my entrepreneurial spirit.
In the 80s, I studied radio electronics construction. I built my first computer “Radio-86” and learned to program in assembler, the first programming language. Later, I was building personal computers to supplement my scholarship.
In the summer of 1990, I graduated in electronics design and started working in a radio equipment factory. Being a young married student with children, I was offered a small family dormitory with a kitchen of 2 sq. metres – such an offer was a dream come true in those years. Unfortunately, the factory didn’t pay much, so I had to look for ways to earn money elsewhere.
In 1992, I established an individual company called Tonas and started making phones with the caller number display. It was a novelty at that time; they were in demand due to a very unfriendly criminogenic situation. I used to solder in that 2 sq. metres kitchen, while my three little daughters were playing in the living room. I started looking for partners and hired first employees. We were moving places. The business grew rapidly, and I employed 50 people.
At the end of 1995, I received a very large order. I even decided to buy the first SMT soldering line. But the future was not bright – my bank went bankrupt, and all the money was gone. And the debt to the client remained under the contract. I had to sell my dormitory.
Within two years, I managed to fulfil the contract and pay all the debts. Unfortunately, I had to lay off all my employees and close the individual company. I had no money.
But later, I wanted to try again. On 15 April 1998, I established Teltonika. At that time, the transition from analogue to digital lines took place, and the caller number display became a standard feature. No one needed my phones anymore. The market just disappeared.
With the last money I had, I created and produced 1 000 pcs. of conversation duration registration devices. It was my last hope and a big mistake. There was no demand for them. I had to tighten my belt and think about where to get bread for my four daughters.
I was looking for orders to solder anything. I took on even the smallest job. Most of the customers wanted me to create a new product. It was a difficult but a very interesting task.
I designed electrical schematics, made printed circuit boards, bought components, soldered them, and then wrote the program code for microcontrollers. I did a lot of refining until they worked properly.
This is how, in 2003, I got a current meter with lightning protection for electricians, a salt room device, a laboratory device for measuring blood glucose, a hydroelectric power plant controller, a system for timing the start of the rowing championship, a security control panel, and more.
Then came that fateful turn toward mobile technology. I received my first serious order from a security company to build 40 GSM control panels. I started hiring staff again. And we began our challenging but exciting journey into the world of machine-to-machine communication technologies and, of course, the Internet of Things. Today, the Teltonika company group continues to grow and advance with an experienced and ambitious leader, Marius Derenčius, behind its wheel.
Arvydas Paukštys, founder
Photo by Vladimiras Ivanovas (Verslo žinios)
TIMELINE OF THE MAIN EVENTS
Arvydas Paukštys founded Teltonika.
Teltonika introduced its first fleet management platform TAVL. Its purpose was to display and manage real-time data retrieved from tracking equipment and collect information on the actions and assets of the vehicle operator.
Our division in Kaunas, Lithuania, opened its doors. Today, Kaunas is the home of our networking solutions business unit.
We started our international expansion with the first foreign offices in Hong Kong and Pakistan.
Our production facilities and SMT lines underwent a major upgrade and modernisation. It led to a significant increase in production volumes.
We launched the FOTA platform to provide even more value for our clients. FOTA is a software update and configuration tool, allowing our clients to easily make any desired changes remotely.
Teltonika began providing electronics assembly services to other companies. Today, Teltonika EMS, part of the Teltonika company group, successfully helps clients from various countries by providing electronics design, development, and contract manufacturing services.
We opened the first IoT academy in Lithuania that invites students to learn more about creating the Internet of Things devices and try different engineering and IT professions.
Our experience in design and production as well as usage of cutting-edge technologies helped us to focus on user-friendly IoT solutions, and we started the Easy Key to IoT campaign. Since 2016, every device developed by Teltonika has a convenient and easy-to-use interface, which allows for its effective remote management.
Rapid growth requires a larger production capacity. Therefore, we acquired a new SMT line.
In the Lithuanian Sector Leaders 2018 competition, Teltonika was ranked as one of the top companies in the manufacturing sector.
Teltonika has entered a new phase of its business development. Arvydas Paukštys transfered the management of the Teltonika company group to Marius Derenčius. Starting August 2024, Marius Derenčius is the new CEO of the company Teltonika IoT Group, which controls the Teltonika brand companies, and the president of the whole company group.
“These changes stem from the business development plans of the investment company AGP Investments. By implementing them, we are consistently increasing the number of our business activities. I am handing over the management of Teltonika to an experienced leader who has dedicated many years to the development of our IoT products business. I believe that this change will allow Teltonika to focus on its ambitious global growth plans, while my increased involvement in AGP Investments’ projects will help other businesses to grow faster,” says A. Paukštys, who owns 100% of AGP Investments shares together with his family.
First successful Teltonika devices were made, such as glucose measuring device, timing system device, and current meter.
We launched our trial Guard GSM project. The main purpose of this IoT device was to control external sensors and retrieve data from them to make corresponding security actions.
At the Infobalt Expo 2003, we presented a versatile programmable controller, which won the Best Product Award.
Teltonika’s first GPS tracking device, TBOXN12GPS, was introduced. It marked the beginning of the telematics business niche.
We started using a new logo, representing a well synchronised teamwork just like in boat-racing. We work best as a team, all together, and at the same pace. We integrate different people and all grow simultaneously. This way we reach our maximum speed. Those who are best at rowing together in unison always win.
The first SMT line was opened on Liepkalnio street in Vilnius – a real breakthrough in Teltonika’s production. It enabled us to work more effectively and produce even more innovative products.
The founder of Teltonika Arvydas Paukštys was named Manager of the Year in Lithuania.
We produced Teltonika’s first GSM module – TM2. It was intended for telemetry equipment and worked as an external 2G modem.
Lithuania’s Ministry of the Economy and Innovation awarded Teltonika with a Medal of Merit for business development in Vilnius County.
Teltonika introduced the first router based on cellular technology – RUT100, which marked the beginning of Teltonika’s networking business niche. RUT100 devices are still successfully used in some industry sectors.
For our developed vehicle tracking systems, we won the Innovation Prize in the competition organised by the Lithuanian Innovation Centre and the Lithuanian Confederation of Industrialists.
Teltonika represented Lithuania at the international CeBIT 2009 exhibition. We presented various types of modems, transport management and personal surveillance systems, video solutions, and other devices.
We stepped into the new personal and asset tracking business niche by introducing a new device – GH3000, which was intended to transmit the user’s location and call for help in the event of an emergency.
We also opened the first Lithuanian B2B Academy. This academy helps young people learn how to create successful business connections and gain experience in sales and marketing.
We installed a new module calibration robot in our production facilities, enabling the calibration of up to 9 000 modules per day. This robot was a creation of Teltonika’s manufacturing engineers, replacing manual work with automated one.
We upgraded our production facilities by installing a fully automated product assembly line. Six robots have been responsible for the complete assembly cycle of components, from the integration of the main electronic board into the casing to the laser engraving of the product information.
Arvydas Paukštys, founder of Teltonika, became the first person in Lithuania to be named national patron. He donated one million euro towards the reconstruction of the Church of the Blessed Virgin Mary of the Rosary in Balbieriškis, Lithuania.
During the first year of the COVID-19 pandemic, Teltonika embarked on developing the first Lithuanian artificial lung ventilator. For this project, the founder of Teltonika Arvydas Paukštys received the Order of the Knight for merits to Lithuania award.
Teltonika also committed to commercialise and produce a smart wristband based on the Kaunas University of Technology and Vilnius University algorithm. Its purpose is to detect atrial fibrillation and help people with heart rhythm problems. The mass production of this unique device, capable of recording a 6-lead electrocardiogram, has already started.
Teltonika took fourth place in the Lithuanian Business Leaders 500 ranking and among the strongest Lithuanian companies in the manufacturing industry.
We announced our plans to establish the Teltonika High-Tech Hill technology park in Vilnius. It will include a new electronics assembly plant, a PCB factory, a plastic parts manufacturing facility, semiconductor chip assembly, testing, and manufacturing facilities, administrative offices, a data centre, a commercial building, and parking facilities. The total investment in the Teltonika High-Tech Hill technology park is estimated at about €3.7 billion.
To accelerate growth and function more effectively, Teltonika was reorganised into a company group with the holding company Teltonika IoT Group and Arvydas Paukštys as the president. During reorganisation, separate companies were established inside the group, each focusing on a different business niche: Teltonika Telematics, Teltonika Networks, Teltonika Telemedic, and Teltonika EMS.
We established a public institution by the name of Teltonika High-Tech Hill. This institution aims to promote cooperation between business and science and motivate young people to choose careers in engineering and IT. It supervises Teltonika’s academies and scholarship programmes.
Teltonika launched a scholarship programme for first-year students in specific engineering and IT study fields. About 250 students in Lithuania each received a €3,000 scholarship.
We introduced a new business niche – developing innovative electric vehicle charging solutions, which effectively contribute to reducing CO2 emissions. The first product is the smart EV charger TeltoCharge.
We announced ambitious plans to create a semiconductor chip industry in Lithuania. The project encompasses such activities as semiconductor chip design, fabrication, assembly and testing, and power module manufacturing.
We welcomed the Head of the Taipei Mission to the Baltic States at the Teltonika manufacturing facilities and discussed the opportunities for cooperation in developing joint business between Taiwanese and Lithuanian companies.
For ambitious business development and exceptional corporate social responsibility, Teltonika won the Lithuanian National broadcaster’s Business Leadership of the Year Award.
In October, we opened a modern Teltonika Technology Centre in Molėtai, which was built in just nine months. It is the second production unit of the company group, manufacturing network equipment, EV charging stations, and smart heart monitoring wristbands.
We welcomed a team of semiconductor research experts and scientists from Taiwan’s Industrial Technology Research Institute (ITRI). The meeting with the delegation of more than 30 people took place at Teltonika EMS. The delegation shared insights on how we can cooperate in terms of technologies and developing employee competences.
The Adizes Institute Worldwide awarded Teltonika as Company of the Year 2021 for achieving exceptional results on a global scale by adopting the Adizes methodology.
We launched the first 5G products made in Lithuania – the RUTX50 router and TRB500 gateway.
We started mass production of the EV charger TeltoCharge. Thanks to the talented and highly-skilled Teltonika’s engineers, the EV charging station was developed in less than a year.
In the traditional Lithuanian Product of the Year competition, we won two gold medals for the EV charger TeltoCharge by the Teltonika Energy company and the EYE sensor device by Teltonika Telematics.
Teltonika signed a €14 million technological cooperation agreement with Taiwan’s Industrial Technology Research Institute (ITRI), reaching one of the most crucial strategic aims of the company group. The agreement entitles Teltonika to obtain licences for semiconductor chip manufacturing technologies and devices developed by ITRI. It also ensures that our company group will get assistance in preparing detailed plans and engineering training for employees.
For creating high added-value in the Molėtai region and for our substantial investment in the technology centre project, we received the Investor of the Year award.
We have launched the mass production of TeltoHeart, a multifunctional smart wristband with 6-lead ECG, designed to help people with heart rhythm problems.
We have started the construction of a state-of-the-art PCB manufacturing plant, which will emerge as one of the buildings in the future Teltonika High-Tech Hill technology park in Vilnius. The budget for this project is estimated to be €143 million. Teltonika’s PCB factory is expected to become one of the most advanced of its kind in Europe.
Teltonika has received a building permit for a new electronics assembly plant in Vilnius. Together with the upcoming PCB factory, the new electronics assembly plant will emerge as part of the Teltonika High-Tech Hill technology park. It will house 10 electronic assembly lines, 20 testing lines, 4 packaging lines, a modern robotic warehouse, and laboratories. The production capacity is expected to reach more than 18 million products per year.