NEWS

Automobile wireless shifts into high gear

There have been a rash of announcements in the past week about wireless services becoming a standard feature in noncommercial vehicles. See the TRG website and the links following this article. The "Fully Connected Car" workshop (7-9 March 2007) - jointly organized by the International Standards Organization (ISO), the International Telecommunication Union (ITU) and the International Electrotechnical Commission (IEC) as part of the Geneva (Switzerland] Motor Show - looks like a key event for this suddenly hot sector.

From "Dunwoody firm hooks up Chrysler's computers," by Michael Pearson, Atlanta Journal-Constitution, 6 January 2007:

"...After years of stagnation in the industry, analysts say US automakers are poised to usher in the era of the connected car platform.

"Hughes Telematics of Dunwoody on Friday announced a partnership with the Chrysler Group to make its connected car technology a standard feature of the company's offerings. Analysts say the agreement makes Hughes Telematics a leading rival to General Motors' OnStar - the nation's largest provider of telematics services such as navigational assistance, accident notification and remote vehicle diagnostics - for a market projected to grow to $2 billion in the next four years.

"The privately held company's announcement did not disclose terms of the deal, including when installations would begin or on which models. It's also unclear how much the service will cost consumers... although the hardware is expected to cost the manufacturer about $100 per car, Hughes spokeswoman Elke Martin said.

"About 13 million cars are currently equipped with telematics systems, many under the OnStar brand or in corporate fleets, according to Telematics Research Group, which tracks industry trends. Most of those services focus on safety and security features at a fixed monthly cost.

"Hughes plans to expand those offerings to include, among other things, the ability to offer high-speed Internet access, connections allowing cars to join home networks to transfer movie, music and work files, and real-time traffic maps derived from other telematics-equipped vehicles.

"Such systems could even save you money on your car insurance... if you don't mind an electronic spy monitoring your every move...

"Technologists predict widespread adoption of connected-car platforms, but analysts say manufacturers have been slow to get on board because of high initial costs, complex technology and uncertain demand. But the increasing prevalence of wireless data networks and the promise of a steady diet of vehicle sensor information that could help manufacturers reduce warranty and engineering costs is helping convince them that the time is right, TRG analyst Phil Magney said.

"The third major US automaker, Ford, is expected to announce plans for a telematics solution in the near future, possibly at the coming Consumer Electronics Show, analysts say.

"Hughes is in talks with other automakers, but there's no word on any other announcements, Martin said. Hughes is a subsidiary of Hughes Communications, the satellite communications giant based in Maryland.

"Hughes sees vast potential for the market. 'The one place where connectivity really hasn't migrated to is the car,' Leddy said. 'And it's a place where you spend a lot of time, especially in Atlanta.'

"Outside of corporate fleets, where telematics systems are commonplace, that migration has long been stalled in part because wireless networks weren't beefy enough to handle the amount of data such systems require at acceptable speeds. They now are...

"Automakers have also been ambivalent about the technology, largely because of its complexity and uncertain consumer demand for many services, said Belis Askoy, an automotive technology analyst for Jupiter Research.

"What's changed? Automakers have realized that data mined from myriad electronic sensors installed in modern cars would help them reduce warranty costs and save money when engineering new models by identifying trouble spots that might otherwise go unnoticed, Magney said...

"Such data collection could prove to be a boon to the driving public, as well. Traffic maps created using data from telematics-equipped cars could cover an entire metro area for a tiny fraction of the $1 million a mile the Georgia Department of Transportation paid to install monitoring devices on metro Atlanta interstates alone.

"Data from wheel sensors, temperature gauges and windshield wipers could also paint a far more vivid picture of road conditions than is currently available, Magney said.

"Such capabilities also would allow insurance companies to monitor driving habits and offer lower rates to safer drivers. That's a scenario that's already come true in Europe.

"Of course, such capabilities would also allow snoopy spouses, or even government agencies, to track a car's movements with unprecedented ease, giving rise to all sorts of privacy questions. It's what Mark Rotenberg, director of the Electronic Privacy Information Center, refers to as 'locational privacy.'

" 'Real privacy protection will require ensuring that individuals remain in control over the disclosure of personal information and that, when collection does occur, there are clear rules to minimize abuse and misuse,' he said...

"As is the case with OnStar, Hughes' proposed system would be opt-in, meaning consumers would have to grant specific authority before the system in their cars could be turned on, Leddy said.

"For a generation raised with technology and preparing to buy its first cars, such issues may be of little concern weighed against the upside of having 20,000 songs and a direct line to Google built into your car, said homebrew car computer enthusiast Derrick Balicki of Roswell. 'It makes sitting in traffic not quite so horrible,' he said."
__________

Country Links

NEWS

Automobile wireless shifts into high gear

Click here for the LATEST HEADLINES

Recent News...