Automotive Industry Trends

Telematics - Revolutionizing the Auto Industry

Issue Table of Contents

Telematics - Revolutionizing the Auto Industry GM - A Leader In Telematics OnStar® In-Vehicle Communication Service Interoperability is the Key Department of Transportation ITS Standards Program Finding a Common Language Developing Traveler Information Systems

Telematics is an emerging technology that delivers personal communications, safety and security, entertainment, information services, computing and wireless data in a car. More companies and industries are realizing that the flow of information and commerce can be harnessed in vehicles to provide information to people in a context-sensitive way. Historically, there have been two primary areas of Telematics:


On-Board Telematics (CD-ROMs) - These systems store information on CD-ROMs that are located in the car, along with location-sensing technology. While these can be useful, they are expensive and can quickly become outdated.

Call Center Telematics - These systems rely on a cellular connection to a call center staffed with friendly call center agents.

Telematics has a wide range of benefits for numerous different industry participants. For telecommunications, Telematics will assist in the growth of the wireless data market. For vehicle manufacturers, it offers the opportunity to obtain an ongoing revenue stream while enhancing both standard and after-market product lines. For regulators, there is a progression towards intelligent transportation systems and their associated benefits of pollution reduction, reduced transit times, and reduced road fatalities. For emergency (including paramedic, police and fire brigades), there is improved locating information and response times. Finally, for consumers there should be an effective service price reduction via economies of scale, and additional benefits associated with safety and security services.

The typical Telematics system operates using the following components:

• Data Modules
• Integrated Hands-Free Phone System
• Telematics Communications Unit (TCU) - the in-vehicle's embedded Telematics system.
• Telematics Software - unique software is needed for each Telematics device.
• Wireless Communications Technology - involves both voice and data transmissions.
• Global Positioning System (GPS) - a complex network of satellites, receivers and software to determine exact geographic location.

Internationally, work is progressing on standards relevant to transportation Telematics by both the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC). In Europe, the European Committee for Standardization (CEN), European Committee for Electrotechnical Standardization (CENELEC), and the European Telecommunications Standards Institute (ETSI) are important players and have set up committees (i.e. CEN, Technical Committee (TC) 278, and ISO TC 204) to address standardization issues for transportation Telematics.

In the U.S., the standards environment is very different than in Europe and many standards are voluntary rather than mandatory. There are numerous U.S. Standard Developing Organizations (SDO) involved in the deployment of Telematics products and services and many combined industry, government and public forums contributing to the standards process. Some of these include:

• American National Standards Institute (ANSI)
• American Society for Testing and Materials (ASTM)
• Consumer Electronics Association (CEA)
• Electronic Industries Alliance (EIA)
• Institute of Electrical and Electronics Engineers (IEEE)
• International Electrotechnical Commission (IEC)
• International Organization for Standardization (ISO)
• National Electrical Manufacturers Association (NEMA)
• Society of Automotive Engineers (SAE)
• Telecommunications Industry Association (TIA)
• …and more

Telematics is a new arena, combining all the possibilities inherent in wireless voice and data communications with GPS location capabilities to deliver location-specific security, information and productivity-enhancing services to people on the move. Telematics systems are on their way to becoming standard automobile equipment. Automobile manufacturers are working hard to expand their portfolios of equipment, services, applications and strategic alliances to meet the growing demands of the market worldwide. Today the typical telematics service examples include:

• Emergency Call and Roadside Assistance
• Fleet Management
• Yellow Pages
• Real-time Vehicle Diagnostics
• Navigation Aids
• Stolen Vehicle Locator Service

What will the future of Telematics be? The sky's the limit. The platforms are so flexible and robust that the possibilities are endless. Today's Telematics is just the tip of the iceberg. In five years, as market penetration increases and the demand for enriched content grows, Telematics will be a common source of information and entertainment. And before the next decade is through, Telematics may allow drivers to be "plugged in" no matter where their busy lives take them.