Telematics

While the term has several definitions, in general, telematics can be used to refer to the delivery of information and entertainment to users in their vehicles in addition to emergency services and tracking functions. Gartner Dataquest predicts that the world telematic market for combined hardware and subscription services will grow to $27 billion by 2005. Since people spend a large amount of their time in their cars, the automobile could well be the second most significant convergence platform after the home for the general consumer. By convergence platform we mean the environment where information and entertainment can be delivered via a variety of digital services offerings. Most driver interaction will probably occur via voice for safety reasons, but passengers will be able to take advantage of other forms of interaction such as touchscreen computer systems for passengers in the back of the vehicle. In the future, data connections are likely to take two forms of communication. One will be continual, or always-on, connections for emergency services and voice applications. The other will be batch-oriented, high bandwidth connections for periodic large data volume uploads of digital content to the vehicle such as digital music, videos, and navigation information.

Telematics was originally applied as an emergency services solution for luxury vehicles via the GM OnStar offering and Mercedes-Benz' Tele Aid. These services included roadside assistance, concierge services, and stolen vehicle tracking. The technology is now becoming increasingly applied toward value-added information, communications and entertainment services such as traffic information, Internet access, and email access. Some recent examples of emerging service offerings from the automotive manufacturers include Chrysler's U-Connect system, Mercedes-Benz' DriveBy InfoFueling, and various offerings from Ford, Honda, and Volvo.

Chrysler's U-Connect system uses a customer's existing wireless phone connection from AT&T Wireless or other providers. It uses Bluetooth technology, a short-range wireless communications protocol, in order to connect the cell phone with the vehicle's speaker system. This allows consumers to benefit from hands-free operation within their vehicles and to avoid some of the common dual-payment issues related to purchasing multiple wireless connections for both in-car and wireless phone usage.

Mercedes-Benz' DriveBy InfoFueling service was demonstrated at the Comdex show in late 2001 as a research concept. It provides a broadband data stream as vehicles pass a roadside transceiver. This can help to provide data such as videos, music, and traffic reports in a batch-update scenario that does not require continuous connectivity with the vehicle.

Ford's Wingcast, a joint venture with Qualcomm that was formed in October 2000, has teamed up with a number of software providers such as Oracle, Sun Microsystems, KANA, and Amdocs and with Verizon Wireless to offer a complete range of telematics services and applications. The initial service will be available in certain Ford and Nissan vehicles. The company has also teamed up with Directed Electronics to offer solutions to the automotive aftermarket. One of these solutions includes Geo-Fencing, which notifies vehicle owners if their vehicle travels beyond pre-established geographic boundaries.

Honda is working with NTT DoCoMo in Japan to develop and bring to production a voice-driven system for email and for listening to information about local restaurants and stores.

Volvo's WirelessCar initiative is a joint venture with Ericsson and Telia. The venture has teamed up with Aether Systems, a wireless middleware provider, in order to provide a range of services that are independent of networks, standards, and protocols.

Along with the car manufacturers, software vendors such as Microsoft have also moved into the telematics market. Microsoft's Car.Net initiative leverages the device, channel, and platform interoperability of Web services to bring seamless content to the world of telematics. Just as Web services are helping to provide interoperability across the enterprise, they will also help to bring interoperability to the consumer world and enable end users to access content regardless of whether they are at home, in the office, or in their cars.

The challenges for the consumer telematics market will be to find the right combination of value-added services that consumers are willing to pay for beyond the basic and potentially life-saving services such as emergency roadside assistance. The best chances for widespread adoption will occur when car manufacturers begin to embed telematics in standard vehicles in addition to luxury vehicles and when creative solutions are designed to help consumers minimize the number of wireless connections they need to subscribe to. Consumers will probably be willing to pay for value-added content and services but will not want to maintain more than one or two wireless connection contracts. Ideally, their wireless services will move with them and support both mobile phone and in-car usage via creative bridging solutions such as Bluetooth.