[Overview]
[What is GPS?] [New
Applications] [Limitations] [Major Players] [Future Developments] [Useful Links]
New
Applications Utilizing GPS Technology
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New
applications utilizing GPS Technology are rapidly appearing in the market. Preinstalled to hand-held devices are available
for travelers, in marine and aviation applications, in mapping and in mobile
phones. Our discussion focuses on Telematics
devices and how this technology is being used in the automotive industry.
What is Telematics?
The emerging technology
known, as Telematics is a relatively new application "designed for
the car, providing drivers with
personalized information, messaging, entertainment and location-specific travel and security services." Others define telematics as the integration of vehicle control and monitoring
systems with location tracking devices and wireless telecommunications.
Envision stepping into
your automobile and taking a ride around the streets of Las Vegas. Don't worry that you might end up in an alley on the wrong side
of town. Your auto is equipped with an on-board navigational
system. To start, the dash-mounted
display system will tell you to obey all traffic laws,
kicking the ride off to a good, law-abiding start. Second, the system will show you what it can do. Do you want to find a restaurant or the nearest ATM? The navigation system will take you
there.
Many analysts and
industry experts trace the origin of consumer telematics to commercial-oriented companies such as HighwayMaster Corp. and
Qualcomm Inc.'s OmniTRACS, which offer
solutions to the long-haul trucking industry. While those
companies focus on the decade-old automatic vehicle location industry, companies in "telematics" tend to focus more on
consumer applications. Instead of long-haul
trucks, the vehicles are cars, pick-ups
and sport utility
vehicles.
The Strategis Group Inc.,
a consulting firm based in Washington D.C., sees three distinct categories
emerging in the area of vehicles and communications. Those categories
are navigation, telematics and the auto
PC.
Navigation: Such systems typically involve
only a GPS satellite receiver, which offers a high degree of
accuracy to locate a vehicle or give turn-by-turn instructions. Magellan's
sophisticated satellite navigational system is an example of this
category.
Telematics: This category involves simpler
technology. It is basically a cellular phone with a GPS receiver
built in, with not as much computer processing power required.
Telematics typically
includes a cellular
component integrated with a vehicle's electronics.
Auto PC: As the name implies, these
systems encompass computing devices in
cars, a more advanced
area that has attracted the likes of Microsoft Corp., Intel Corp. and other computer-oriented vendors. While the auto PC
suggests visions of drivers surfing the
Internet, few see that becoming a reality
anytime soon,
particularly considering the controversy brewing in some states over the use of cellular phones in vehicles. A passenger might
do the surfing, but even that seems a long way from consumer
reality given data speed requirements.
A growing concern for safety
Strategis and others say
cellular carriers for the most part have ignored the
telematics category, choosing instead to focus on new competition and digital network upgrades. In some ways, the current pricing model by carriers has held back the market. Carriers typically want and
encourage higher usage, and the idea behind some
telematics services is to use the system only in an emergency; i.e.,
as little as possible. So far, telematics is
predominantly geared toward safety and security, and the automobile industry is driving it.
Strategis has found a few
thousand reasons for cellular carriers to get interested
in telematics, however. By 2003, more than 1.2 million vehicles will be equipped with telematics devices, according to the
researchers.
Over the next few years,
all major automobile manufacturers plan to offer telematics
products as a standard option. In the meantime, General Motors' TV and print ads for the OnStar system have piqued consumer interest.
As carriers mull the
potential and feasibility of such services, smaller companies such as ATX Technologies and larger companies such as
Motorola Inc. are leading the way in
telematics. Based in San Antonio, privately
held ATX was incorporated in 1994. The
company, which
created the On-Guard Response Center for emergency services, recently announced the new Alpine MobileMayDay System, which uses GPS
and cellular technology.
While smaller companies
carve out markets, larger companies, most notably Motorola,
are putting more emphasis on telematics. Motorola created a
new business group, Telematics Communications Group, to directly focus resources on the emerging automotive communications industry and
explore applications including emergency roadside assistance; navigation and
remote door unlock services.
Carriers ally with automakers as the market grows
Motorola has relationships
with at least seven automakers. Motorola has joined forces with Ford and
Protection One in developing the Lincoln RESCU system, which it said is the
first original equipment manufacturer emergency messaging system launched in
the United States. The Lincoln RESCU provides
roadside assistance and emergency response services. Other partners include Mercedes-Benz,
Renault, Nissan, General Motors and BMW North
America. Motorola announced TeleAid, a telematics system that
will be standard on all model year 2000 Mercedes-Benz S Class sedans in North
America. Drivers will get 24-hour roadside assistance, emergency
response and other services.
Projected Number Of Cars With Telematics Devices
1998 1999
2000 2001
2002 2003
Installed
Base
55,666 97,780 180,594 370,345 714,551 1,225,083
SOURCE:
AVL Markets, Demand and Market Outlook, The Strategis Group
Smaller companies
continue to work on new technologies as well. SOS Wireless,
founded in 1994, considers itself a leader in "Mayday" technologies. Its SOS Phone 200 features buttons for direct access to
a 911 dispatcher, an emergency roadside service assistant
and an SOS operator who can connect the user to the party of
his choice from almost anywhere in the
United States.
In 1999, SOS debuted its
SOS Locator, a new GPS device that is used to pinpoint
the location of emergency calls that are placed with the company's SOS phone. The unit affixes to
a car's windshield or dash for "line of sight"
visibility. When an emergency call is placed using the GPS-ready phone, the SOS Locator transmits the caller's position to the SOS
phone, which allows an SOS Call Center operator to view
the caller's position within 100 yards.