& cplSiteName &

Telefónica: Safety Is Top Connected Car 'App'

Sarah Thomas
7/16/2014
50%
50%

When you think of a connected car, it's likely navigation and infotainment services that come to mind, but safety features are still the top "apps" that drivers want -- and will pay for.

According to Telefónica SA (NYSE: TEF)'s second annual Connected Car industry report, increased safety and early warning systems, followed by smarter navigation and usage-based insurance, are the most popular connected car features. Consumers are starting to ask for them by name, with 71% of drivers in the survey indicating they are interested in using, or are already using, connected car services.

Telefónica says that 80% of consumers expect the connected car of the future to provide the same connected experience they are used to at home, at work, and on the move via their mobile phones -- implying that they do want to go beyond safety features as well.

What they don't necessarily want is to pay incrementally for these types of services. Pavan Mathew, Telefónica's head of connected car, says that, especially in the US, drivers will pay for safety- and security-related services, which could include car diagnostics, geofencing to track the whereabouts of young drivers, and traditional roadside assistance services. But infotainment and media apps are more challenging, especially since the average driver is only in the car for his or her commute in the developed world. (See Finding the Value in Transportation Telematics.)

That said, what consumers will pay for, as well as how they will pay, is still being worked out. Telefónica suggests there are geographical variations as well. It found that 40% of Spanish drivers prefer a one-off payment, while Americans, Germans, and Brits would like to pay for the connectivity itself, with the option to add on additional services. (See AT&T Makes GM Cars a Data Plan Add-On and AT&T Tests Drivers' Desire to Pay for LTE.)

Also, while 60% said they prefer to access connected services through their dashboards, most are still tethering their smartphones for any other type of app or service. Mathew says to expect a lot more activity around embedded connectivity in the next year and beyond, although it will primarily be 3G with 2G fallback, since LTE networks around the globe aren't yet ready for this kind of bandwidth-heavy deployment, and car makers aren't prepared to pay for it. (See MNOs Need to Get in the Driver's Seat.)

Last year, Telefónica used its survey to predict that the number of vehicles with built-in connectivity would increase from 10% in 2013 to 90% by 2020. This meshes with a forecast from Analysys Mason that 90% of new cars will have embedded connectivity by 2024. (See Connected Cars: Tether Today, Embed in 10.)

Telefónica in the driver's seat
The survey results are, of course, good news for Telefónica, which is making a big push into the connected car. Earlier this year it signed an agreement with Tesla to bring connectivity to its Model S car in Europe. The appointment of Mathew, who joined two years ago from General Motors as "head of connected car," shows how serious it is as well. (See Tesla Connects Its Cars in Europe With Telefónica and If These Cars Could Talk.)

Mathew was part of the transition when Telefónica brought its digital spin-off, Telefónica Digital, back in-house earlier this year. At that time, the connected car and machine-to-machine communications became big focuses for the entirety of the operator, and not kept to a separate division. It sees a big uptick in demand for connectivity in cars, even just since last year's survey, and it wants to play an integral role in the value chain. (See Telefónica Walks the Digital Tightrope.)

"Now telematics service and connectivity in certain models are in the top 10 reasons to purchase," Mathew says. "Consumers are asking what kind of connectivity they have when they come in to purchase the vehicle. Consumers have a framework, they understand it, and are looking for it."

— Sarah Reedy, Senior Editor, Light Reading

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
7/18/2014 | 4:14:44 PM
Re: Just another device?
All good applications, but I fear the entertainment apps would be too distracting. 
jasonmeyers
50%
50%
jasonmeyers,
User Rank: Blogger
7/17/2014 | 3:02:11 PM
Re: Just another device?
Mitch - even for safety/security? Or infotainment for passengers? The latter can be a lifesaver on long trips with little kids. 

As for the former, consider if someone you knew (hypothetically) recently was so zoned out driving along that he (or she) ran out of gas on the highway, miles between exits -- and the safest way to get out of that hypothetical predicament was to hit a button on the rearview mirror, talk to a dispatcher and have someone bring him (or her) gas.  

I'm sure that would NEVER happen to anyone. But... what if it did?

 
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
7/17/2014 | 2:11:40 PM
Re: Just another device?
I remain skeptical of the wisdom of most connected car applications. Anything with the potential to distract the driver is a bad idea. 
jasonmeyers
50%
50%
jasonmeyers,
User Rank: Blogger
7/17/2014 | 1:57:57 PM
Safety First
There is a lot more talk about security lately when it comes to connected everything -- cars included, obviously. Joe Speed, the Linux Foundation representative of the AllSeen Alliance I spoke to yesterday, said his group is working on ways to make sure different applications within connected cars are segmented into what he called "virtual spaces" -- to make sure that in-vehicle infotainment applications don't interfere with safety services, for example. I expect we'll see a lot more attention paid to that as things continue to develop.

 
From The Founder
Download our complete guide to de-risking NFV deployment in 2016, including:
  • An eight-step strategy to deploying NFV safely, based on input from the companies that have already started virtualizing their production networks.
  • Interviews with leading executives at Colt, AT&T, Deutsche Telekom, Cisco, Nokia, ZTE, Ericsson and Heavy Reading.
  • Flash Poll
    Live Streaming Video
    Prepping for the Future: Upskill U Explained
    During this short kick-off video, Doug Webster, Vice President of Service Provider Marketing, Cisco, and Light Reading’s CEO & Founder Steve Saunders give an overview of Upskill U.
    LRTV Interviews
    Demand Surges for On-Demand Ads

    5|5|16   |     |   (0) comments


    Ed Knudson, VP, Product and Strategy at Canoe Ventures, discusses the rising appeal of VoD ads and the challenges on inserting ads dynamically in live TV programming.
    LRTV Custom TV
    Exclusive: Video Interview With Sckipio CEO David Baum

    5|5|16   |     |   (0) comments


    At his headquarters in Tel Aviv, G.fast visionary David Baum, CEO of Sckipio, provided an exclusive interview to Light Reading and showed how innovations in rate and reach, vector densities, fast reconnecting times and SFP-based residential gateways are expanding the potential of G.fast.
    Telecom Innovators Video Showcase
    Atrinet's NetACE – Migration to NFV & SDN With NetOps-Driven LSO

    5|4|16   |     |   (0) comments


    At Atrinet's headquarters, Ray Le Maistre sits down with Roy Silon to get an in-depth look into the company's focus and the secret recipe for their success.
    LRTV Huawei Video Resource Center
    Amsterdam ArenA, Powered by Huawei

    5|4|16   |     |   (0) comments


    Huawei's ICT solutions power the state-of-the-art Amsterdam ArenA, turning it into a smart stadium.
    LRTV Interviews
    Testing When There's No 'There' There

    5|4|16   |     |   (1) comment


    The benefits of SDN/NFV are well known, but the transition comes with some challenges, prominent among them is: how do you test a network that has been abstracted and has the potential to be endlessly reconfigurable? Light Reading was at NFV World Congress in Santa Clara, Calif., where we bumped into Mats Nordlund, CEO and co-founder of Netrounds, a Swedish ...
    LRTV Interviews
    Ditching the Slash & the Orchestration Wars

    5|3|16   |     |   (2) comments


    SDN and NFV have been inextricably bound with each other for so long that on a conceptual level, smooshing them together into one catch-all phrase – SDNFV – is now justifiable, according to Dan Pitt, executive director of the Open Networking Foundation (ONF). Light Reading spoke to Pitt at the NFV World Congress, where he explained that the next ...
    LRTV Custom TV
    ZTE TV Connect Highlights

    5|3|16   |     |   (0) comments


    ZTE gives us a tour of its booth and new products at TV Connect in London.
    LRTV Custom TV
    Deluxe's Unified Delivery Solution

    5|3|16   |     |   (0) comments


    Join Alan Breznick of Light Reading and visit the Deluxe booth at NAB! Here you'll find Deluxe's Unified Delivery Solution, OTT video, virtual reality, HDR, 4K and much more!
    LRTV Interviews
    Verizon Puts Gray Boxes in the Shade

    5|2|16   |   04:33   |   (1) comment


    When it comes to the white box trend, "gray" boxes, which have a slight proprietary twist, don't give service providers and end users the advantages they're seeking, according to Verizon's Vice President of Product and New Business Innovation Shawn Hakl.
    LRTV Custom TV
    Dealing With a Disrupted Video Market

    5|2|16   |     |   (0) comments


    Ericsson's Simon Frost discusses how traditional pay-TV providers can cope with the big changes wrought by the rise of OTT video and IP technology.
    LRTV Custom TV
    The VNF Responsibility of Red Hat

    5|2|16   |     |   (0) comments


    At MWC, Caroline Chappell of Heavy Reading visits the Red Hat booth and sits down with Chris Wright to talk about the responsibility the VNF needs to take on in order to ensure the operators get the carrier-grade performance they expect for their network.
    LRTV Interviews
    AT&T Expert on the Key Pillars of UC

    4|29|16   |   03:58   |   (0) comments


    Vishy Gopalakrishnan, AVP of product marketing at AT&T, talks about the three developments that are making unified communications and collaboration secure and reliable for enterprise users.
    Upcoming Live Events
    May 23, 2016, Austin, TX
    May 23, 2016, Austin Convention Center
    May 24-25, 2016, Austin Convention Center, Austin, TX
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    December 6-8, 2016,
    June 16-18, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    Amazon AWS Reports $2.6B Quarterly Revenue, Up a Colossal 64%
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/28/2016
    WiCipedia: Woman Cards & Bitch Switches
    Sarah Thomas, Director, Women in Comms, 4/29/2016
    Sprint CEO: Our Spectrum Is for 5G
    Dan Jones, Mobile Editor, 5/3/2016
    Amazon & Other 'Big 4' Cloud Providers Crushing Competitors
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/29/2016
    Rovi Reels in TiVo for $1.1B
    Mari Silbey, Senior Editor, Cable/Video, 4/29/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    Animals with Phones
    Sloth Mail Click Here
    Sloth mail -- somehow even slower than snail mail.
    Live Digital Audio

    Of all the tech companies in the Valley, Intel has made the most aggressive commitment to building a diverse and inclusive workplace culture. It's doing so by taking concrete, measurable steps, making a large financial investment and through a commitment to complete transparency about its progress. In this radio show, WiC Director Sarah Thomas will be joined by Shlomit Weiss, Intel's Vice President, Data Center Group, and General Manager of Networking Engineering, who will share with us why Intel is tackling this huge challenge, how and to what effect. She will also discuss her unique experiences leading development of Client SOC development in the past and today leading development of all of the chipmaker's silicon hardware for networking IPs and discrete devices and managing a team of 600 engineers across Israel, Europe and the US.