& cplSiteName &

Finding the Value in Transportation Telematics

Danny Dicks | Analyst
Heavy Lifting Analyst Notes
Danny Dicks | Analyst
2/28/2014
50%
50%

Wireless network operators are keen to build their machine-to-machine (M2M) businesses, and they see opportunities within transportation to develop services that could take off as cars become connected and public transportation systems use technology to improve services as costs reduce.

Some telematics services, such as fleet management and logistics, are long established, and a competitive service market has developed with many small and medium-sized players serving specific niches, often on a country-by-country basis. While there is scope for consolidation in this market, the thin margins mean wireless operators are likely to look for a larger prize.

Their eyes are on the nascent markets for private car telematics services. But this market also has issues that must be understood. Telematics platforms in private cars can indeed deliver multiple services: road safety, vehicle/road taxation, insurance services, vehicle diagnostics and remote system upgrade, stolen vehicle tracking and traffic monitoring and data gathering are just some of the applications. But it is not easy to see which services will generate significant revenue, and for whom. There will be consumer reluctance to paying for many of these services, or even aversion to allowing some of them, for personal privacy reasons. It will be instructive to observe how these location-tracking issues play out in the wider world of smartphone applications.

But in some markets -- notably in Italy, the UK and US -- usage-based insurance is starting to gain some traction, after a slow start, and wireless operators are developing services to support this industry (based on their M2M platforms and in conjunction with specialists). Further, telematics platforms, once in place, can also deliver infotainment -- and that's looking like one of the major opportunities for connected car proponents. Traffic information, other location-based information, navigation and access to entertainment via an in-car device rather that a mobile phone are all possible revenue-generating services.

Wireless operators are looking into these options -- some are building their expertise internally, often with the help of specialists (Vodafone, for instance, has a usage-based insurance solution based on its M2M platform and built with US risk consultancy Towers Watson); others are buying it (Verizon bought Hughes Telematics in 2012). They all know there's something to gain -- but they are far from the only companies with the capability to deliver telematics platforms.

It's not at all certain who will emerge as the dominant players in private car telematics, but wireless operators do have a reasonable chance to emerge as service providers if they put in the effort to think carefully about where the revenue will come from, and work with partners to build superior platforms.

The Heavy Reading Mobile Networks Insider report, "Telecom Opportunities in Transportation Telematics & ITS," examines the physical and commercial relationships between different aspects of connected transportation, including vehicle telematics and broader ITS. It looks at the different communications technologies that can be used for different applications, with a special focus on the connected car. It examines ways that value can be added in telematics and ITS through solutions, platforms and services, and the companies that are delivering that value. Finally it profiles 12 leading companies in different positions in the market, describing their product and service offerings.

— Danny Dicks, Analyst, Heavy Reading Mobile Networks Insider


The report, Telecom Opportunities in Transportation Telematics & ITS, is available as part of an annual single-user subscription (six issues) to Mobile Networks Insider, priced at $1,595. Individual reports are available for $900. To subscribe, please visit: www.heavyreading.com/mobile-networks.

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Light Sabre
3/3/2014 | 4:32:19 AM
Re: A lot going on here
One of the benefits of Toyota's "Friend" system is that it notifies drivers if there has been a recall, or even if there is another issue with the particular car detected.  It will the driver when a visit to the dealership is necessary.  Pretty neat stuff.
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
3/1/2014 | 8:22:30 AM
Re: A lot going on here
Yes, and maybe Toyota can also work on a connected application that cuts down on the number of serious vehicle recalls it has to issue. But old stereotypes die hard.
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Light Sabre
2/28/2014 | 11:30:10 PM
Re: A lot going on here
This has become more a concern in the US given that, in the wake of NSA revelations, our privacy hackles are up.

But we still continue to give up privacy and freedom in exchange for security theater (for instance, this year, the Boston Marathon will not allow US veterans to run with their packs in tribute of their fallen comrades, because terrorists), so I'm sure the trend will continue.
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Light Sabre
2/28/2014 | 11:27:32 PM
Re: A lot going on here
Japan seems to be more ahead on this than the US automakers are (surprise, surprise).

Toyota, for instance, has been working on social media where you and your car can "friend" each other and chat with each other.
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
2/28/2014 | 12:55:29 PM
Re: A lot going on here
Ford and GM both had connected cars on display at MWC, though Ford's demo didn't seem to be working. Weird to have two automakers at the show while Apple and Microsoft choose not to participate.
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
2/28/2014 | 10:41:39 AM
A lot going on here
AT&T and Sprint have also made big investments is telematics for the automobile industry, and along with VErizon, they are looking well beyond usage-based insurance. There are advantages to auto dealers - tracking car info to alert drivers to needed maintenance and using GPS to track missing vehicles -- and even parents who want to geo-fence their teen drivers. 

Interesting space to watch, to be sure. 
More Blogs from Heavy Lifting Analyst Notes
Telecom operators need to move from complex, error-prone manual test processes to more automated, consistent and streamlined test procedures where admin is minimized.
ON2020 has been surveying the optical networking needs and evolution strategies of leading network operators and is ready to share the results at ECOC 2017.
Just a few years ago, Gigabit mobile broadband was almost unthinkable. In 2017 it will be a reality.
Despite some challenges ahead, the utility sector remains a promising one for LPWA, not least because utilities themselves are seeing the benefits of becoming more digital throughout their operations, and because of the increasing coverage of networks and availability of key enabling components, such as communications modules from a broadening ecosystem.
Software-defined wide area network (SD-WAN) is offering cable multiple system operators (MSOs) a leg up in the market, offering solutions other than fiber, such as DOCSIS 3.1; however, it is not without its challenges.
From The Founder
NFV's promises of automation and virtualization are intriguing, but what really excites service providers is the massive amount of money they could save.
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.
Women in Comms Introduction Videos
VMWare VP Brings Women Up With Her

8|16|17   |   6:49   |   (1) comment


It's an art and a science to make mentorship, inclusive leadership, diversity and promotion of high-potential women work, says Honore' LaBourdette, vice president of Global Market Development at VMWare.
LRTV Documentaries
5G Spectrum Wars – The Recap

8|15|17   |   2:22   |   (0) comments


Service provider 3 has filed a lawsuit against Ofcom over 5G spectrum auction in the UK.
LRTV Custom TV
Say What? Facebook Unleashes AI Anarchy – The Recap

8|7|17   |     |   (0) comments


A recap of the week's talking points on Light Reading's sister site, telecoms.com. Facebook AI programmers had a bit of a brain-fade as they allowed one of its AI applications to invent its ...
Women in Comms Introduction Videos
Fujitsu's Women Band Together to Help Girls Do STEM

8|2|17   |   9:35   |   (1) comment


Supporting women both inside and outside of Fujitsu is a top priority of the telecom vendor. Yanbing Li, Fujitsu Network Communication's director of System Software Development & Delivery, shares why it's important, but why there's still a long road ahead.
LRTV Custom TV
If You're Not First, You're Last – The Recap

7|31|17   |   08:18   |   (1) comment


In case you missed it, Amazon's 1% stock increase helped Jeff Bezos dethrone Bill Gates as the richest man in the world. Also, Taiwanese electronics manufacturer
Women in Comms Introduction Videos
AT&T's Tech President Preps Workforce for the Future

7|26|17   |   5:47   |   (10) comments


AT&T is focused on the software-defined network of the future and is reskilling its workforce to get ready too, according to AT&T's President of Technology Development Melissa Arnoldi.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
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
Intel CEO Leaves Trump Biz Advisory Board
Dan Jones, Mobile Editor, 8/15/2017
Are Cord-Cutting's Days Numbered?
Alan Breznick, Cable/Video Practice Leader, Light Reading, 8/14/2017
Orchestration Startup UBiqube Pivots Away From NFV
Carol Wilson, Editor-at-large, 8/15/2017
Verizon Video Woes Pile On
Mari Silbey, Senior Editor, Cable/Video, 8/14/2017
WiCipedia: Dolly Babes, Manifesto Backlash & 'Brotastic' Failures
Eryn Leavens, Special Features & Copy Editor, 8/18/2017
Like Us on Facebook
Twitter Feed
Animals with Phones
We Know a Tough Day When We See One Click Here
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.