Wireless at the wheel: Carriers take telemetry on the road

Telematics may sound like mathematics, but, it is a data service that involves machine-to-machine communications, and the wireless industry has been watching it.

Employing telematics in automobiles may be the next big data niche for wireless carriers. The Strategis Group predicts that the U.S. automotive telematicsmarket will grow from less than $40 million in 1999 to more than $1.7 billion by 2004 and that the number of telematics subscribers will increase (see figure). The firm's projections are backed by recent alliances between wireless operators and automotive makers.

In January Bell Atlantic Mobile and GTE teamed with General Motors to support its OnStar service. Recently, Sprint PCS and Ford Motor Co. aligned to deliver voice-activated wireless voice and data solutions to select 2001 Lincoln models.

"There is a synergy between wireless phones and driving and the combination can offer consumers a highly integrated solution," said Doug Pritt, vice president of business development for Sprint PCS.

The automotive telemetry market attracts large operators "because only a nationwide carrier can play in this game," said Stephan Beckert, director of wireless data for The Strategis Group.

Sprint PCS is leveraging its size with its Ford deal. "Two years ago we identified [telemetry] as a new channel. With one network that is 100% digital, and because we have the platform in place to do it, it was natural," Pritt said.

Sprint PCS' network will provide in-vehicle communications and information, which will enhance Ford's current Remote Emergency Satellite Cellular Unit telematics systems. The new system will include a portable Motorola StarTac dual-band digital/analog phone designed for Ford's telematics services.

The Sprint PCS and Ford collaboration will offer subscribers voice-activated calling, emergency assistance and information services.

Although information services features are strong, they are not the consumer draw. "Subscribers definitely are interested in it for the safety reasons," Beckert said.

"There is a lot to be said of a device that is hardwired to the car, including being more crash resistant and robust," Beckert said. "However, given that most [consumers] are signing up for the safety aspects, how will carriers interest them in advanced services?"

It may be challenging for Sprint PCS to encourage customers to sign on for additional services beyond the safety applications. As of yet, Sprint PCS has not made plans to offer enhanced services.

A carrier spokesman also would not comment on pricing or calling plan structures but said pricing for the Sprint PCS and Ford telematics services would be announced with vehicle introductions.

Earlier this year, GM partnered with BAM, now part of Verizon, a joint venture with Vodafone AirTouch. GM wanted be part of a nationwide network to expand its OnStar in-vehicle service, so it could offer access to Internet-based information. GM plans to offer voice-activated PCs with Internet access as options in two models of the 2001 Cadillacs.

The collaboration with Verizon meant OnStar would have access to a nationwide network and could buy and resell voice minutes from Verizon to its current customers. Until now, OnStar has provided services such as automatic airbag notification, stolen vehicle tracking, emergency services and remote diagnostics through its OnStar Center.

"Verizon will provide a nationwide network so we can offer personal calling capability to our customers," said an OnStar spokesman. The company estimates that more than 4 million vehicles will contain its communications services within the next three years.