Connected car network stresses & telematics profits

M2MreserachcarsThere are two new reports covering the connected car space, each adds a unique perspective to the future of connected cars and their affect on cellular data networks. Automakers are offering more telematics products that will put pressure on network operators while providing an opportunity for profits for automakers. On top of that, connected cars that use M2M connections place a different kinds of stress on the networks.

Frost & Sullivan found that with 90 percent of automakers in North America have deployed connected telematics solutions.

“Shared data plans and smartphone-based connectivity will also gain prominence in the global mass market. OEMs wanting to compete with free smartphone-based navigation solutions are offering connected capabilities with dynamic re-routing, real-time traffic and point of interface services,” said Frost & Sullivan Automotive & Transportation Research Analyst Ramnath Eswaravadivoo.

In 2017, 2G is likely to be no longer supported in North America, making the seamless running of networks with 3G and 4G coverage a rigorous task, reported Eswaravadivoo, who also noted that  consumers are unwilling to pay extra for in-car LTE connections.

A separate Machina Research report revealed that rush hour will put more pressure certain cells set to experience a 97 per cent increase in data traffic over the next ten years from the added data from connected cars. Machina Research suggests that operators will need to use planning tools that can cope with M2M diversity.

The stress on the networks will be will worth it, for automakers if they provide the security and services.

There is added need for security notes, Frost and Sullivan. Security is important should deliver in-vehicle and back-end protection, covering multiple areas such as over-the-air update, connected services, user data protection and virtualization.

Data will be very useful for automakers. Using vehicle data for advanced diagnostics will enable automakers to lengthen customer relationships to more than three years and tap into the longer-term maintenance and service business

Machina Research warns that any carrier that continues to plan and run its network without understanding M2M will suffer knock-on effects of losing revenue or diminished user experience for all the users of the network.