Like many other Telematics application providers, I was seduced by the over-exaggerated growth projections from the market analysts during the early 2000’s. While our industry experienced moderate growth during the first half of the decade, it always needed some BIG things to happen to help it grow exponentially. This included committed participation by key market drivers such as cellular carriers, customers, device manufacturers, application providers and investors. However, until recently, many of these potential market drivers were never really confident enough to commit. I now believe that our industry is finally poised to take off and here are five reasons why:
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Harbinger Capital Partners awarded an eight-year, $7 billion contract to Nokia Siemens Networks to provide the network design and equipment for its wholesale LTE network, which will be run by a new venture called LightSquared. LightSquared said its network will allow for terrestrial-only, satellite-only or integrated satellite-terrestrial services (via the terrestrial and MSS spectrum Harbinger scored through a merger in March with satellite operator SkyTerra) – a notable selling point in a wireless market divided between ground-based cellular networks and satellite offerings from the likes of Iridium and others. The network is going to be launched in the second half of 2011, according to the Financial Times.
ORBCOMM Inc., a global satellite data communications company focused on providing Machine to Machine (M2M) connectivity, announced that Komatsu Ltd. has entered into an agreement with ORBCOMM to continue providing wireless data services for their heavy equipment telematics applications. The new multi-year agreement will build upon the successful KOMTRAX and VHMS product lines, which use the ORBCOMM network today. Komatsu’s KOMTRAX and VHMS systems are onboard machine monitoring and communications systems that track critical operating metrics, asset productivity, and performance information, around the globe.
Volvo Construction Equipment (Volvo CE), the subsidiary of Swedish bus and truck major AB Volvo, today launched a full-fledged telematics system in the Indian construction equipment industry for enabling better man-machine communication. The product, CareTrack telematics system, will help in remote monitoring of machines as well as making available real time information. Volvo CE will provide CareTrack as standard fitting on most of its construction machines starting August 2011.
The Automobile Club of Southern California has submitted an application to the state Department of Insurance to offer an insurance program that rewards California drivers who voluntarily drive fewer miles with lower auto insurance rates. The voluntary pay-as-you-drive initiative allows insurers to offer plans based on more accurate mileage, so that people who choose to drive less will pay less for auto insurance.
The e-commerce industry is growing quite rapidly despite the recession and high unemployment. That in fact helps us, as it is also causing people to search much more to make sure they are finding the best options. People are looking for coupons, local stores, bargains. A relative newcomer, TheFind has posted remarkable growth in a short period of time. In April, for example, it grew 175 percent year over year, noted founder and CEO Siva Kumar.
As many are still trying to climb out of a deep recession; Facebook is celebrating tremendous sales growth. In fact, this sales growth is getting beyond what Facebook can handle on its own and the social networking giant has turned to an industry expert: Salesforce.com. The enterprise cloud computing company announced that it has been selected by Facebook to manage its sales operations. Facebook will rely on Salesforce CRM to maximize the value out of each customer interaction.
Prospective clients need to experience the value of telematics. Hard data can help prove the viability of a solution to those with vision; but many customers lack vision. Imagine the reaction a client will have when an attractive usable interface is placed in their hands. They can click, navigate and discover first-hand how telematics can improve their life. But unintuitive and unattractive user interface limits the effectiveness of this sales strategy.
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Southern California Edison (SCE), an Edison International company, has installed one million smart meters. The Edison SmartConnect™ smart meter program began in September 2009. The company will install approximately 5 million smart meters for residential and small business customers by the end of 2012.
Motorola is exiting the wireless network gear business, turning over its assets to Nokia Siemens in a $1.2 billion deal. The move will give the company more agility as it prepares to split into two separate operations — one dedicated to business solutions and the other oriented toward the development of smartphones and other consumer products.
Expert review of architecture and design during the early development phase of a telematics device can save a company substantial time and money while maximizing market potential. The former CTO of Quake Global and lead architect of their market dominating satellite modem — Mark Jones — has formed Sancomm Inc. to provide precisely this service.
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San Francisco-based auto insurance company Esurance has released an iPhone app allowing its customers to access ID cards, view their coverage and make payments. Non-customers can also use the app to get Esurance policy quotes.