The document discusses various automotive telematics services including emergency calling, vehicle tracking, remote diagnostics, navigation, and infotainment. It notes that several car manufacturers offer embedded, integrated, and hybrid telematics solutions. The primary costs for telematics providers are wireless network access and call center operations, and profits require subscription fees to exceed these costs. There are many players involved across software, hardware, applications, services, and connectivity. Open questions remain around the best technology approach and business models.

1. AUTOMOTIVE TELEMATICS
Venkatesh “Venki” Agaram, PhD MBA
June 2016

2. 2Slide 2
SAFETY, SECURITY, ETC
• Emergency Call – Automatic
– Airbag ECU  TCU  call
• Emergency Call – Manual
– Manual Switch  TCU  call
• Breakdown Call
– Manual Switch  TCU  call
• Stolen Vehicle Tracking
– Police Report  Service  TCU
• Remote Control
– Authentication  TCU  Function
• Remote Monitoring
– Query  Service  Status
• Remote Diagnostics
– Periodic / DTC  TCU  Status
• Insurance Services
– Provider  TCU  Status
• Eco-Drive
AUTOMOTIVE TELEMATICS SERVICES
• EV Services
– Charge Status / Range / Route
• Fleet Management
– Use / Op. Efficiency / Maint. Sched.
CONNECTED NAVIGATION
• Off-Board Navigation
– Turn-by-Turn / Google Earth / TTS
• Route Guidance
– Turn-by-Turn / Operator Guided
• Traffic Reports (data)
– Mobile Phone / Radio
• Traffic Reports
– Operator / TTS
• Car Park Spaces
• Weather Reports
– Visual / Verbal / Mobile / Radio
• In-Car Local Search
• Point-of-Interest Search
– Call  Operator  Nav. System
• Destination Send-to-Car
– Route Plan on PC  Access in Car
• Concierge Services
– Wide Requests / Luxury Cars
INFOTAINMENT
• News, Stocks and Sports
– Aggreg. Serv.  Visual / Verbal
• In-Car eMail
– Reading Only / TTS
• Internet Access
– Full Browser  3G / EDGE & SIM
Source: http://www.gpsbusinessnews.com/downloads/SBD-Telematics-Guide-Extract_t10259.html

• Several services offered but a few
are highly favored by users
• Geography dependent regulations
will likely establish some features
as fixtures of future cars

3. 3Slide 3
OEM Embedded
 Use factory-installed
embedded module to connect
to a service network
 Required for safety and
security features
 Either integrated into IVI
system or standalone unit
DEFINITION, CLASSIFICATION, FORECAST
CE Device Based (Integrated)
 Use consumers’ mobile
devices to establish a two-
way data connection for
services
 Lower-cost alternative to
OEM embedded
Hybrid(Tethered)
 Feature both an embedded
TCU and the option to use a
connected CE device to
provide a data connection

Automotive Telematics  sending and receiving information automatically
from cars through the integrated use of telecommunications and informatics
Sources: www.ihs.com, www.statista.com
• Several studies project the
Hybrid solution to become norm
• Some studies project the
Embedded solution to be norm

4. 4Slide 4
U.S TELEMATICS SALES 
Sources: www.ihs.com, www.statista.com

5. 5Slide 5
OEM System OEM Embedded
CE Device Based
(Integrated)
Hybrid
(Tethered)
Audi Audi Connect  
BMW Connected Drive   
Mercedes Benz Connect Me / Assist Me   
Ford Sync  
Nissan Nissan Connect  
GM OnStar  
PSA Peugeot Coonect Box   
Renault R-Link  
Tesla  
Toyota Touch & Go  
Volkswagen Car Net  
TELEMATICS SYSTEMS BY OEM 
http://www.everis.com/global/WCRepositoryFiles/everis%20connected%20car%20report.pdf
• Many car manufacturers are playing in the embedded, integrated, and the hybrid spaces
• Whether the projections for the embedded or the hybrid will come true needs to be seen

6. 6Slide 6
Revenue / Cost Detail
Operating Revenue
• Activation Fee
• Subscription and/or Usage Fee
• Hardware - Telematics Control Unit (TCU)
Direct Operating Costs
• Network Access Activation 
• Call Centers Content 
• Hardware
Indirect Costs
• Administration/ Overhead - Billing Advertising Marketing
• Legal
• Facilities
Other Income and Expenses
• Royalties
• Subsidies
• Advertising
• Carriage Fees
• Transaction Fees
Startup Costs
• Product Development
• Network Operation Center
• Working Capital
FINDING PROFITS IN TELEMATICS
• Primary operating costs are related to wireless network access and the call centers
• Network carrier & call center costs must be less than the subscription fees from consumers


7. 7Slide 7
Areas Specifics Players
Software
• Telematics Network Operating System
• Auto-specific middleware
• Auto-specific HMI software
QNX, Android, Windows Embedded
Compact, Mirror Link, Car Play
Hardware
• Wireless Communication Infrastructure
• Telematics Control Units
• Modems
• Head Unit Display
Continental, Harman Becker, Denso,
Flextronics, Qualcomm, Panasonic,
Pioneer, Alpine
Applications • Map, Traffif Information, Music, Social Networks
3rd Party application development through
SDK – BMW, Ford, GM, Peugeot, Toyota
Telematics Services • Delivery of Content Airbiquity, Agero, Connexis, WirelessCar
Connectivity • Mobile Network Operators
Verizon, AT&T, VODAFONE, T-Mobile,
Sprint,
Alliances
• V2V Communication Consortia
• Standards and Norms
PARTNERS & PROVIDERS
http://www.everis.com/global/WCRepositoryFiles/everis%20connected%20car%20report.pdf

• Many players from automotive and other spaces
• Needs a more detailed analysis to come up with competitive landscape assessment

8. 8Slide 8
• The open question of embedded solution versus hybrid solution requires that both solutions be
offered for the next five years or so.
• Automotive OEMs must figure out the right way to bring together users and third-party content
providers, in order to be able to offer their customers the kind of connected experience they demand.
• Automotive telematics increases the complexity of developing cars, opening the door to increased
customer annoyance and recall possibilities.
• Telematics could help automotive OEMs in establishing closer, more profitable connections with
customers.
• Telematics could help automotive OEMs retain their past customers but is not likely to help increase
profit margins
• Finally, customers demand connectivity but have security doubts and are only partially willing to pay
for it.
CONCLUSIONS 