ATX President-CEO Details Impact of "T3" Third Generation Telematics in
State of the Telematics Industry Address
LAS VEGAS, Jan. 7 /PRNewswire/ -- Telematics services are expanding
into China, multiple telematics providers will serve the same vehicle with
different applications, and vehicle owners are choosing telematics for the
experience it brings to the daily drive -- rather than solely as a
precaution against potential emergencies. These are just a few of the
dramatic changes emerging in the re-energized vehicle telematics industry
as it enters 2008, according to Steve Millstein, president and CEO of ATX
Group, the world's largest independent telematics services provider to the
automotive industry.
As the electronics industry convenes at the Consumer Electronic Show
and the automotive industry assembles in Detroit at the North American
International Auto Show, the industry that bridges those two worlds is back
on the upswing. After several years of trepidation by automobile
manufacturers to invest in an area with promising but unsubstantiated
returns, an uncertain regulatory landscape and little consumer awareness of
benefits, telematics is again growing -- in terms of OEMs, vehicle owners,
geographic regions, competitors, differing business models, and the types
of devices connected to services.
"Telematics has finally become legitimatized in the marketplace," says
Millstein in his annual State of the Telematics Industry address, available
on the ATX Web site at http://www.atxg.com. ATX is the industry pioneer, having
launched the first consumer vehicle telematics program in 1996 with Ford
Motor Company and Motorola.
Now, the state of the telematics industry has never been better,
Millstein said, with virtually every automobile manufacturer in North
America beginning to deploy programs, including some planning programs that
are global in scope. A number of new options for connecting to telematics,
such as personal navigation devices, are developing. The result is the
emergence of "T3" telematics -- the industry's third generation -- which
will become a radical departure from the traditional subscriber-based,
event-driven response services.
Among the key industry trends Millstein foresees in 2008:
-- The emergence of a global telematics platform.
"The degree of interest throughout the automotive industry since our
announcement last summer on entering the Chinese market has been
absolutely remarkable. Companies are rushing to be among the first
to bring telematics to China," Millstein said. "You will see
telematics on cars in China within the next year. And that, in turn,
is ratcheting up serious interest in similar deployments in the
Indian and Latin American markets, thereby forcing automakers to
formulate a global telematics strategy."
Millstein said that the global platform emerging will require
flexibility in terms of applications but at this early stage it
appears both vehicle theft recovery and automatic collision
notification will be the initial, universal applications.
"The buildout of telematics in North America, coupled with the
expansion throughout Asia, will force a serious a re-examination of
the current situation in Europe, where telematics deployment has been
stalled for more than a half decade," he said. "There's a new global
paradigm. European governments and the automotive and telematics
industries must band together to leverage this opportunity to
accelerate deployment of the basic safety applications of first-
generation telematics."
-- More flexible telematics systems that will open up the vehicle to
receive a variety of best-of-class applications from various
providers -- rather than simply tied to a single solution.
ATX recently participated in the validation of BMW's new, flexible
in-vehicle protocol platform that opens their vehicles to multiple
sources of telematics applications. "We support this approach
because this allows BMW the flexibility to tap the best-of-class
specialties offered by the entire field of telematics service
providers, while ensuring that legacy vehicles will always be able to
access new services without having to replace any in-vehicle
components," Millstein said. He also sees such flexibility critical
in achieving cross-border connectivity as part of a global telematics
platform.
-- More diverse channels for telematics to enter the vehicle.
Consumers' expectations will demand that their vehicles be able to
connect seamlessly with the smart phones, digital music players and
other devices they bring along for the ride, according to Millstein.
"Your car's a node on the network. Telematics providers deliver the
optimal connection for the multi-modal car. This ranges from
determining least-cost-routing for the signal itself to helping all
the devices in a vehicle to work together," he said. "In telematics'
future, the application will determine which way is best. Drivers
are interested in getting things done using familiar commands and
interfaces."
-- Becoming the technical and information firewall to the vehicle.
As telematics increasingly becomes the gateway to the vehicle's
network accessibility, Millstein asserts that telematics programs
must become the firewall for the OEM's vehicle operating systems and
the data protection manager for vehicle owners managing the content
and interfaces allowed into their vehicle.
-- Telematics will continue to be data-centric.
The transition from T1 generation voice services to T2 data-centric
services will continue as current programs advance to even more
sophisticated use of remote diagnostic and crash data. "You will
also see the emergence of data that is more customer-centric and
designed to personalize the drive," Millstein said. "However, with
this will come the increased potential for mobile spam, which could
have an extremely adverse effect on the industry if it emerges."
-- Telematics that creates an always-on, personalized driving
experience, used on a daily basis -- rather than a one-size-fits-all,
shrink-wrapped solution.
"Ford's and Microsoft's Sync system, which connects carried-in
devices to in-car entertainment systems using Bluetooth wireless, is
consistent with where we see the market going. It allows drivers to
personalize their vehicles and integrates the vehicle -- including
the information that comes into it, as well as the interface -- with
the owner's lifestyle," Millstein said. "Telematics will give such
systems like Sync much greater connectivity through multi-modal
bandwidth to off-board applications.
"At this point, Sync is an entertainment unit positioned on the car's
CANBUS network, but with strict firewall control between it and any
other in-car system. When safety and security and both crash and
vehicle data applications are added, we believe Ford will eventually
transition to an extremely low-cost embedded telematics system. We
think the data will be too valuable to ignore and that inevitably
this will be what the market will require."
-- The emergence of social networking in telematics.
Telematics is beginning to enable drivers to communicate with other
drivers indirectly as they drive with specific drive- and location-
based information. "For example, it's possible that BMW's 7 Series
customers, who are all part of the same network, will receive
digitized data on deteriorating localized weather conditions based on
real-time feedback from other 7 Series drivers. That data will merge
seamlessly with other geo-coded streams so that the driver receives
it on a need-to-know, just-in time basis."
-- Continuation of pushing applications off-board.
"Automakers will continue to look off-board for future functionality
that telematics providers deliver. Using thin client content, the
provider becomes much more ingrained in the daily drive than what can
be provided through on-board systems," Millstein said.
As part of the transition to the new T3 generation of services,
infrastructure and connectivity, Millstein emphasized that the telematics
industry and the automakers it serves must understand that telematics must
continue to be driver- and owner-focused. "It can't be structured around
new technology, a new protocol, or a new revenue model; all have to be
built around the needs and preferences of the individual driver and how
they interface with his or her vehicle," Millstein said.
About ATX
Based in Dallas-Fort Worth, Texas, and Dusseldorf, Germany, ATX Group
is the world's largest provider of customized telematics services to the
automotive industry, serving both North America and Europe. ATX telematics
services are designed to provide enhanced safety, security and driving
convenience to vehicle owners. These services include location-specific
emergency and roadside assistance, automatic collision notification, stolen
vehicle recovery, remote diagnostics and real-time traffic and navigation
assistance. ATX also customizes telematics services to help automobile
manufacturers and their affiliated dealerships to use telematics data to
reduce costs, enhance vehicle servicing, and more closely manage customer
relationships. ATX services are provided to vehicle owners through the
brand names of its customers -- Mercedes-Benz, BMW, PSA Peugeot Citroen,
Maybach, and Rolls-Royce Motor Cars. For more information, visit
http://www.atxg.com.
SOURCE ATX Group
 back to top
Related links:
http://www.atxg.com
CONTACT:
Gary Wallace, Vice President, Corporate
Relations, ATX Group, +1-800-511-5891, +1-972-753-6230,
gwallace@atxg.com
|
