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/ 08.19.2010 2:00PM
Auto Internet Predicted to Make Inroads
WELLINGBOROUGH, ENGLAND: The uptake of
Internet-connecting by car manufacturers hasn’t taken off as previously
expected, but it’s about to, according to the folks at IMS Research. If so, the
phenomenon would add one more facet of competition to mobile DTV.
Globally, IMS said the number of new vehicles with integrated Internet access
was 1.1 million last year, but expected to reach 6 million by 2017. That would
indicate the addition of just 700,000 each year, but it would yield a total of
28.4 million ’Net-connected vehicles by 2017.
“The two main factors are the growing popularity of downloadable apps and
improvements in cellular technology,” said Jon Cropley, author of the related
IMS report.
IMS notes that downloading apps has become “one of the most prominent trends in
mobile communications in the last three years.” The popularity of apps has
motivated auto makers to consider vehicle-centric apps. Some include weather
reports for driving destinations and having e-mail read out loud
en route. IMS forecasts the in-vehicle
app market to be worth $4 billion by 2017.
Another factor fueling Internet-connected car growth is improved cellular
technology, IMS said. Third- and fourth-generation cell tech can better
handle heavier data traffic. IMS says Japan is one of the first countries to
have widely deployed 3G technology, and as such, was thought to have the most
Web-connected vehicles last year.
In the category of things holding back the manufacture of Web-connected
vehicles, there is safety. IMS notes that “a number of high-profile individuals
have expressed concerns that it will distract drivers.” The IMS report was
released within days of the death of a prominent Los Angeles plastic surgeon,
who drove off the road while texting.
The IMS prognostication compares to another issued by iSuppli of Scottsdale,
Ariz., last December. That firm said 55 million
consumers would have Internet access in their cars by 2016. That
would roughly jibe with the IMS numbers that infer 22.4 million
Internet-capable cars on the road or on car lots by 2016.
Dr. Egil Juliussen of iSuppli also noted that Internet-connected cars could
actually enhance driver safety with applications such as the Intelligent
Transports System. ITS allows cars to communicate with each other and with
traffic systems to avoid accidents and congestion.
Juliussen said cell networks would comprise the majority of links for
Internet-connected cars. Ford already has Sync, and Fiat has Blue&Me,
neither of which require a data plan. Subaru recently announced its
2011 Outbacks
would be equipped with Autonet Mobile, a mobile WiFi service.
The rise of Internet-connected vehicles has competitive implications for mobile
DTV, the service still in development in the broadcast industry. A substantial
amount of TV network fare is available online, and localized content--the
supposed carrot of mobile DTV--is readily available online as well.
A mobile DTV trial this year in Washington, D.C. was said to yield positive
feedback, but few other details have been released. A consortium of
broadcasters formed to create a business model and promote mobile DTV at the
NAB Show last April, but little has emerged from that camp as well. Meanwhile,
Qualcomm was widely reported in early August to be considering the divestiture
of FLO TV, it’s mobile television business.
-- Deborah D. McAdams
See...
August 3, 2010: “Broadcast and WiFi
Take Wind Out of FLO TV Sales”
The broadcast industry hammers away at its mobile DTV plan while current
subscription-based player Qualcomm considers getting out. New research
from Juniper Research suggests why.
July 19, 2010
: “FCC Frees
Up Mobile DTV With Analog Tuner Waiver”
The Federal Communications Commission has released mobile DTV from a
regulatory obstacle. The commission waived a requirement that mobile digital
broadcast TV receivers include analog decoding technology.
June 22, 2010
: “Participants
Rate Mobile DTV Experiment 7 out of 10”
The 150 or so folks tapped to test mobile, over-the-air DTV in the nation’s
capital give it a 7 out of 10. That’s the word from the Open Mobile DTV
Coalition.
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