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 