itteLeMatiCsbeyondnavigationBy rajaNi BaBurajaNtelematics, in the broad sense, refers to sending <strong>and</strong>receiving information via a telecommunications device.this machine-to-machine (M2M) technology is widelyused in vehicles today, <strong>and</strong> so telematics today refers tothe application of the technology in vehicles. telematicsin vehicles provides drivers with real-time informationregarding automobile accidents or theft detection, routeguidance, traffic or daily living information, games <strong>and</strong>e-mail services by applying mobile telecommunications<strong>and</strong> global positioning system (gps) technology. Commercialvehicle telematics (CVt) is emerging as one ofthe fastest growing areas in the telecommunicationsthe telematics try in China, southindus-korea <strong>and</strong> japan ismoving beyond thetraditional navigationservices to explorenew opportunities on the commercialfront. Commercial vehicle telematicsfinds applications in vehicletracking, location based services,fleet management <strong>and</strong> more.sector today.avehicle telematics system consists of a gps receiver<strong>and</strong> an ssM/gprs modem installed in each vehicle. thetechnology is primarily used to track vehicles. expertssay that CVt, though in its infancy in the asia-pacificregion, would give rise to a number of functions rangingfrom “vehicle <strong>and</strong> passenger safety to the ultimateluxury of sinful comfort <strong>and</strong> convenience features.”Bizacumen, in its recent report on CVt, says thattelematics technology has the potential to add the crucialfunctionality imperative for various emerging automotivesystem capabilities.applicationstelematics applications can be broadly classified intofour areas: Navigation service, safety <strong>and</strong> security, information<strong>and</strong> m-Commerce, <strong>and</strong> wireless internet services.Navigation Service: this is one of the most popularapplications of telematics. the technology helps drivers<strong>and</strong> vehicle owners get real-time traffic information <strong>and</strong>map directions. the gps-enabled vehicle telematics providesround-the-clock information about road <strong>and</strong> trafficconditions, enabling them to make wise decisionswhile on the road.Vehicle Diagnosis <strong>and</strong> Control: Vehicle diagnosis<strong>and</strong> control service allows users to check gear performance,engine, brakes <strong>and</strong> get fuel-related information.it enables them to control various parts <strong>and</strong> componentsincluding the doors, trunk, headlights <strong>and</strong> taillights.Safety <strong>and</strong> Security: telematics can be used in emergencyrescue applications. Vehicles fitted with a remote34 | A-P BUSINESS & TECHNOLOGY REPORT | APRIL 2010AP-11 copy.indd 343/25/10 8:30:24 AM
control for automobile diagnosis areless prone to accidents due to mechanicalfailure. an automatic crashsensor is another important applicationof telematics for ensuringsafety while driving. the safety <strong>and</strong>security service also enables vehiclemonitoring <strong>and</strong> tracking in case oftheft.Information <strong>and</strong> m-Commerce:telematics enables location Basedservice (lBs) on vehicles to provideinformation about places of interestto people. this may include detailsof restaurants, movie theaters,shops <strong>and</strong> more. lBs is emerging asone of the most lucrative marketingopportunities for such businesses.in the form of m-Commerce,telematics can be beneficial to bothbusinesses <strong>and</strong> customers alike. thetechnology can be used to providehotel/air/train reservation <strong>and</strong> logisticsservices.another important application oftelematics is fleet management. thisis important when there is largescalemovement of goods from oneplace to another. telematics helpsmanufacturers save money <strong>and</strong> timewhile transporting goods from oneplace to another. the technology alsohelps on-site service personnel communicatewith each other <strong>and</strong> managetheir fleet effectively. instantcommunication among personneldeployed at different locations helpsthe company save significant time<strong>and</strong> travel costs associated with suchservices.entertainment: telematics empowersvehicle owners with the abilityto play music or video in the carwithout having to download it frommobile h<strong>and</strong>sets, with the help ofphone-automobile synchronizationtechnologies via wireless networkssuch as wCdMa, wlaN <strong>and</strong> Bluetooth.Commercial telematicsin south koreaCommercial telematics was introducedto south korea in 2003.since then, the industry has maturedenough to attract investors <strong>and</strong> customers.user expectations <strong>and</strong> technologieshave been clearly definedover the past few years. a key factorthat drives this growth is the popularityof gps-enabled phones. theyhave helped small <strong>and</strong> medium enterprisesmaximize fleet efficiencies<strong>and</strong> minimize operating costs. theavailability of lBs via mobile phoneshas enabled many service providers<strong>and</strong> hardware manufacturers to extendlBs applications to commercialfleets.in 2003, sk telecom, a leadingservice provider in the country, enteredinto the telematics market inkorea with the introduction of Natedrive. Based on the advantages ofwireless internet services <strong>and</strong> operationalknow-how, Nate drive is theworld’s first h<strong>and</strong>set-based telematicsservice, the company said.south korea has also initiated amajor telematics project – jeju telematicsmodel city construction project– with an aim to energize thetelematics industry in the country<strong>and</strong> create synergy effects betweenassociated industries. a consortiumof companies, led by sk telecom,was designated as the operator forthis telematics project initiated bythe Ministry of information <strong>and</strong>Communications.the korean government, ambitiousto make the country the marketleader in it, has announced telematicsas one of the nine new engines ofeconomic growth. this move givesa strong positive signal to investors<strong>and</strong> global players interested in thetelematics business in korea. withmaturing business models <strong>and</strong> ahighly developed value chain, koreais on track to becoming a majortelematics player by the end of thedecade. domestic wireless operators<strong>and</strong> automakers are keen to rake inthe profits from this highly prospectivemarket opportunity.korea telematics <strong>Business</strong> association(kotBa) is a non-profitorganization established to encouragetelematics in korea. establishedin 2003, kotBa aims to st<strong>and</strong>ardizetelematics technologies <strong>and</strong> services.kotBa has about 60 membersincluding automakers, telecommunicationcompanies, terminal manufacturers,content providers <strong>and</strong>other telematics-related companies,research centers <strong>and</strong> universities activein the telematics industry.according to research <strong>and</strong> Markets,the low penetration of telematicsin korea, one of the top six passengercar manufacturing countriesin the world, has created greaterinterest among key players in the region.the market expects explosivegrowth over the coming few years,the agency thinks. the telematicsmarket in korea will be spurred byits robust infrastructure, especiallyits world-class wireless communicationtechnology <strong>and</strong> an extremely efficient<strong>and</strong> high-speed internet.korea boasts one of the highestbroadb<strong>and</strong> <strong>and</strong> 3g penetration ratesin the world. as a leader in communications,korea also surpasses severalsuperior countries in convergence oftechnologies, voice recognition systems<strong>and</strong> remote care diagnostics.service providers could also takeadvantage of these advanced technologiesto design <strong>and</strong> offer uniqueservices for their customers.aBi research expects that commercialtelematics in korea willshow very strong growth, accountingfor a high Cagr of between 38percent to 42 percent in subscribers,hardware shipments, <strong>and</strong> marketvalues.telematics industry in ChinaFollowing in the footsteps of thedeveloped countries, China steppedin to telematics services in 2009with the introduction of gM onstar<strong>and</strong> toyota g-Book. the industry ishopeful about the entry of the twomainstream auto br<strong>and</strong>s in the telematicsmarket in China. however,the market is likely to witness toughcompetition in the coming years asmore players enter. to succeed inthis market, the automakers haveto seek local partners, apply newrules to the game <strong>and</strong> try innovativebusiness models. telematics will geta boost in the form of governmentsupport as it complies with the Chinesegovernment policy that m<strong>and</strong>atesgps devices on every public<strong>and</strong> special-purpose vehicle.however, there are a number ofchallenges facing telematics in China.the country, with its varying economic<strong>and</strong> cultural conditions, poses agreat challenge to international playersentering the market. they have yetto identify the potential service areasthat would appeal to the mass marketin China. wireless carriers can play aContinued on PaGe 40APRIL 2010 | A-P BUSINESS & TECHNOLOGY REPORT | 35AP-11 copy.indd 353/25/10 8:30:28 AM
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