The evolving telematics ecosystem

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Effective delivery of connectivity-based services will require seamless integration of infrastructure by various stakeholders.

The telematics ecosystem can be divided into three layers: services for end users (both vehicle-independent and vehicle-centric), the infrastructure enabling delivery of those services and the stakeholders who manage them.

The evolving telematics ecosystem

Packaging end-customer services

  • Bundled basics are safety and security services that will be required by law or the market, such as emergency call services, stolen vehicle tracking and basic navigation services. While their cost will be built into the vehicle's price, stakeholders—particularly carmakers and dealerships—will have to generate returns through operational efficiencies and by cultivating a closer connection with the customer. There are short-term opportunities to generate subscription revenues, however only until regulations standardize the installation of basic blackboxes for safety and security services.
  • Pay-per-use and "freemium" services are navigation, entertainment or similar applications that are mostly supported by advertising or paid for with each use, somewhat like a pay-as-you-go mobile phone data plan. In this case, the limited revenues may be shared between the carmakers, content providers and telecom operators.
  • Premium subscription services are applications that car owners are willing to pay for on a contractual basis, such as access to integrated mobility solutions and in-car occupant health services. In this context, the carmaker may own a significant proportion of the cost and subscription revenue stream. Similarly, telecom operators can charge end customers on the basis of type and quality of connectivity opted by them.



*Other services include usage-based insurance, fl eet management and payment (tolling, parking).
** Others include business process outsourcing (BPO) and roadside assistance providers.