Smarter Networks and Smarter Cars

(Jun 11 2012) 4G , Applications , Connected Car , Mobile Broadband

1. According to Anne Lutz Fernandez, author of the book “Carjacked: The Culture of the Automobile and Its Effect on Our Lives”, Americans spend an average of 18.5 hours a week in their cars.  An increasingly more mobile society with a seemingly insatiable appetite for personal vehicles means that not only are Americans spending more time in their vehicles, for business, commuting or pleasure but it also means that there is a growing number of vehicles vying for a spot on America's ever more congested roadways.

   With so many Americans in cars, for longer periods of time, and with 88 percent of all US adults owning a mobile phone, an opportunity for the 4G mobile broadband ecosystem is clearly on the horizon.  Globally, GSMA estimates that the opportunity associated with connected car applications will grow to $600 million (USD) by 2020.  And recent announcements by Verizon reflect how the opportunity can bridge across operator enterprise and wireless business units.

   In early June Verizon announced that it would acquire connected automotive service provider Hughes Telematics of Atlanta, GA.  The $612 million (USD) deal will further build on the operator’s M2M offerings, according to John Stratton, president Verizon Enterprise Solutions. “We expect M2M and telematics to drive significant growth for Verizon and we’re taking an important step forward to accelerate solutions that will unlock more opportunities for existing and new (Hughes Telematics, Inc.) and Verizon customers.”

   Verizon followed up the acquisition by announcing that it would join auto manufacturers BMW, Honda, Hyundai Motor Company, Kia Motors and Toyota Motor Sales, Inc. in forming the ‘4G Venture Forum for Connected Cars’.  Also joining the forum is Professor Sanjay Sarma of the Massachusetts Institute of Technology who will provide a link to track important advancements in academic research.  Explaining the importance of the forums’ role, Tami Erwin, chief marketing officer for Verizon Wireless stated, “There are many challenges to designing next generation telematics and infotainments solutions, including supporting safe and responsible driving, advancing vehicle-to-vehicle solutions and improving sustainability, among others.:”

   At a high level the opportunity associated with the connected car can be segmented into two solution pursuits:  telematics and infotainment.  As far as technologies go, automotive telematics have been around for the better part of a decade, typically being employed with GPS for vehicle tracking solutions for large commercial fleets.  With innovations in on-board vehicle information systems and improved access to wireless networks, telematics solutions are delivering not only tracking but a much more detailed insight into the vehicle’s safety and security status as well as supporting remote diagnostics.  Such data, initially only of interest to fleet managers is now of interest to others, notably automobile insurers and owners.

   Belgium-based systems integrator, Option, has extended its wireless expertise into in-car connectivity solutions as well.  Option’s XYFI is a Wi-Fi personal hotspot targeted at vehicle passengers, up to eight of them, rather than simply the driver.  According to Jerome Nadel, Option’s chief experience officer, “the auto manufacturing industry has been fixed in designing driver assist systems like handsfree calling, navigation, diagnostics and ‘rear seat entertainment systems’, Option is addressing much more.”  Equipped with an HTML5 web-based connection portal, XYFI is more than just a rear seat entertainment system.  It aggregates different types of content from infotainment to professional apps for operators, car manufacturers, rental agencies and taxi operators who are all looking to generate additional revenue from in car experiences.  Although currently an after-market plug and play solution, Nadel sees potential for it to become OEM in the future.

   As with telematics, the technology of connecting a mobile IP address isn’t particularly new or challenging.  “The main obstacle for the connected car continues to be the business model, not the technology,” explains Airbiquity’s vice president of marketing Leo McCloskey.  Airbiquity operates a global platform for the delivery of connected vehicles services, for some 16 million vehicles around the globe.   McCloskey sees great potential for innovation by cloud service providers who can deliver increased market acceptance and more customers. 

   With 4G connectivity mobile CSPs and operators can deliver a broad suite of premium or loyalty-based services including enhanced navigation applications, on-demand video and audio content delivery, retail and travel centric applications.  Electric Vehicles (EV) also present an opportunity for connected vehicles and for Airbiquity.  The service provider has partnered with automakers Nissan and Ford and fuel company Shell to collect and deliver critical EV information such as charging locations, eco-routing and energy consumption data and more through smartphone and web portals.  The platform can also provide data for traditional fuel vehicles as well, such as fuel management, vehicle maintenance, performance and emissions data and driver behavior reporting.

   Navigation, routing and driver behavior data is powerful information for INRIX, a leading-provider of traffic information and driver services applications and tools.  INRIX delivers the data, from its crowd-sourced network of connected vehicles, for Ford’s SYNC solution along with a recently announced engagement with BMW of North America, LLC for their Advanced Real-Time Traffic Information (ARTTI) service.  “Together, we’re shaping a future of the connected car that puts drivers at the center of an experience that’s personalized, localized and optimized in ways that make navigation indispensable to the daily driver,” said Bryan Mistele, CEO of INRIX.

   With a plethora of new devices and applications in the automobile cabin is there cause for safety concerns related to driver distraction? According to U.S. Department of Transportation Ray LaHood there is. “Distracted driving is an epidemic on America's roadways,” says LaHood. His department will release voluntary guidelines that are intended to “encourage automobile manufacturers to limit the distraction risk for in-vehicle electronic devices." More specifically the Secretary said that he has called “CEOs of major car companies and encouraged them to ‘think twice’ before placing too many Internet-based systems into new cars.”

   At 4G World 2012’s “Connecting with a Smarter Car” delegates will examine this innovative and promising facet of 4G enabled applications.  Leading experts from the automotive industry along with service provider, operators and applications developers with discuss how business model changes and technology advances can drive new opportunities for monetization and profits.

   By: Andy Mitchell, Editor 4G Trends

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