Does Your Car Compute?
Telematics changes the future of commuting
Tuesday, September 12, 2000 By Stephanie Izarek
The day when you're driving a car you can talk to, like Knight Rider, may be a long way off, but some new gizmos on the horizon for autos would make David Hasselhoff proud.
If you're in the market for a car in the next five years, your new model will have options that go way beyond simple hi-fi stereo systems; the new gadgets will turn your car into a sophisticated, hands-free mobile office.
Time Spent in Transit
The new features fall under the umbrella term "telematics," which comprise the latest in-vehicle computing technologies, like CD-ROM-based driving instructions, voice-activated controls and Internet access — all of which are changing the way people commute.
'The equipment that will go into cars will be relatively low-cost, and with the Internet and high-speed connection rates, we will be able to provide a wide range of services,' —
Irwin M. Jacobs, Qualcomm
Americans spend on average about 42 minutes commuting each day and are highly interested in technology that can help them de-stress travel time and manage work and home life from the road, according to a spokesperson for InfoMove, a developer of telematic services.
Some applications for telematics include real-time traffic information, audible directions, emergency services, and even e-mail, scheduling and contact management. It's like a PDA on wheels.
The telematics industry is expected to grow to $42 billion by 2010, up from $1 billion in 1998, according to research firm IDC, and most cars will have some form of telematics by 2005.
The Players
Delphi Automotive Electronics, which has been selling telematics equipment to companies like General Motors since 1996, uses a cell phone and Global Positioning System module to link vehicles to a service center. It also offers smart radios with voice-activated e-mail, phone and address book abilities.
Cadillac announced it will include Delphi's Infotainment PC, which offers these features, in its 2001 DeVille and Seville models.
Similarly, Qualcomm Inc. entered into a joint venture with Ford Motor Co. to help Ford make Net-ready cars. Under the terms of the agreement, the companies will make an investment in Wingcast Inc., a San Diego-based telematics firm.
The venture's first telematic technology boasts transmission speeds of about 144 Kbits/s, which is roughly two-and-a-half times as fast as a 56k computer modem. Eventually, they plan to reach about 2.4 Mbits/s, which is a speed that rivals most home broadband connections, like cable modems and DSL.
Nissan Motor Co. Ltd. has also agreed to implement the technology in its luxury vehicles at an unspecified date.
"The wireless and telematics industries are at a pivotal point as we approach a new era of the wireless Internet," says Irwin M. Jacobs, chairman and chief executive of Qualcomm. "The equipment that will go into cars will be relatively low-cost, and with the Internet and high-speed connection rates, we will be able to provide a wide range of services."
For now, though, the cost of telematic systems is high. A CD-ROM-based navigation system could cost anywhere from $1,500 to $3,000, while an Internet-based system might carry a $600 price tag. But prices are expected to drop in the future.
Most analysts believe that many companies will package free telematics devices when a customer signs up for a service subscription, similar to the way cell phone providers offer free handsets when you sign up.
Not everyone is pleased with all these new toys to play with while in transit, thinking they will lead to more distractions (and accidents) on the road. In response, telematics vendors are focusing on voice-activated, hands-free controls.
"You need to use common sense," says Robert Sinclair, Jr., manager of public information for the Automobile Club of New York. A good general rule: If you must read something or press a lot of buttons, pull over.
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