& 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
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Documentaries
Twilight Star Authors AI Paper

1|24|17   |   00:46   |   (0) comments


Actress Kristen Stewart, best known for starring in the Twilight movies, has co-authored an academic paper on the use of artificial intelligence (AI) in a short film she has directed.
LRTV Documentaries
Apple, Qualcomm Lock Horns Over Licensing

1|24|17   |   01:07   |   (0) comments


Industry giants clash over licensing fees.
LRTV Interviews
Heavy Reading: The Web-Scale View

1|18|17   |     |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Heavy Reading's former chief analyst Patrick Donegan shared insight from the recent web-scale operators report, which featured research on how web-scale operators view the market, the best web-scale companies to ...
LRTV Custom TV
Cisco's Cloud Scale Networking: Automation, Virtualization & Simplification

1|18|17   |     |   (1) comment


Cisco's Sanjeev Mervana outlines the latest innovations in networking technology at CES 2017 in Las Vegas.
LRTV Custom TV
ADVA Talks Innovation & the Future of Networking

1|17|17   |     |   (0) comments


Ray Le Maistre and Christoph Glingener, CTO of ADVA Optical Networking, discuss the current state of the industry, cooperation and collaboration, open innovation and the future of networking.
LRTV Custom TV
Cisco's Infinite Video Platform

1|17|17   |     |   (0) comments


Cisco's Infinite Video Platform allows service providers to deliver broadcast-quality video over IP networks. Infinite video supports many devices, from 4K TVs to tablets to game consoles. Join Cisco's Rajeev Raman for a brief tour and live demo.
LRTV Interviews
Masergy: Ability to Adapt Key for NFV

1|16|17   |   6:40   |   (0) comments


Speaking at Light Reading's 2020 Vision in Rome, Masergy's VP, Global Technology, Ray Watson, said agility is key to providing the mix and match NFV-based services that are driving business for the managed service provider today.
LRTV Interviews
Equinix: The Data Explosion

1|13|17   |   4:16   |   (0) comments


At Light Reading's 2020 Vision in Rome, Eric Schwartz, president of EMEA, Equinix, talked about how Equinix is helping its customers manage the influx of data today, and how it's preparing for a future filled with millions of connected IoT devices.
LRTV Interviews
Heavy Reading: The Changing Data Center Landscape

1|12|17   |   6:05   |   (1) comment


At Light Reading's 2020 Vision event in Rome, Heavy Reading's Senior Analyst Roz Roseboro talks about how virtualization is impacting data center evolution and how that evolution is affecting the relationship between service providers, data center operators and public cloud providers.
LRTV Interviews
Boingo: Prepping for Millions of Devices

1|12|17   |   5:07   |   (1) comment


At Light Reading's 2020 Vision in Rome, Boingo's CTO Derek Peterson discusses how wireless operators will address the needs of low-bandwidth and high-bandwidth apps at the same time, the need for more MHz, the impact of IoT and more.
LRTV Interviews
Comcast Shows Off Gig Gateway at CES

1|11|17   |     |   (1) comment


With its largest presence at CES in years, Comcast took the wraps off its long-awaited gigabit gateway and a new platform for managing the home WiFi network. Light Reading Senior Editor Mari Silbey sat down with EVP Chris Satchell to discuss the latest Comcast advance, and met with VP of Product Strategy and Development Andrea Peiro to walk through a demo of the ...
LRTV Interviews
Colt: End-to-End Key for 2017

1|10|17   |   6:21   |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Nico Fischbach of Colt said having a multi-carrier, end-to-end service proposition is going to be key for 2017 -- and SD-WAN is instrumental in making it happen.
Upcoming Live Events
March 21-22, 2017, The Curtis Hotel, Denver, CO
May 15-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
A Women in Comms Glossary
Sarah Thomas, Director, Women in Comms, 1/18/2017
Is Cable One Beefing Up for Slaughter?
Alan Breznick, Cable/Video Practice Leader, Light Reading, 1/20/2017
Google Security Lessons for IT
Curtis Franklin, Security Editor, 1/18/2017
Nokia CTO: 2017 Is the Year 5G Gets in the Field
Dan Jones, Mobile Editor, 1/19/2017
Do Women-Only Co-Working Spaces Work for Women?
Sarah Thomas, Director, Women in Comms, 1/24/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Animals with Phones
You've Heard of Slow Food? Click Here
This is slow tech.
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.