Wireless carriers face FOMO vs. FOBFA test
By Roger Lanctot – Something peculiar is unfolding in the wireless industry. While wireless carriers enthusiastically report new fibre and smartphone connections to their networks along with correspondingly robust revenue streams, there is little or no mention of automotive connectivity.
Even Verizon, in the United States, with its budding commercial fleet portfolio comprised of the vehicle connectivity assets of Telogis and Fleetmatics, acquired years ago and combined, merits nary a mention on the earnings call with analysts. AT&T, too, the big dog in embedded vehicle connections in the United States, relegates its automotive activities to the shadows – presumably immaterial to the broader financial prospects of the organization.
The same phenomenon is playing out in Europe, where the likes of Orange, Vodafone, and Deutsche Telekom are operating 5G test sites for connected cars but barely making a peep regarding long-term plans in their public statements. In Asia, as well, Docomo, SK Telecom, KDDI and others are heavily engaged with car makers, but with little revenue yet to show from years of connecting cars.
What is behind the great hush that has descended over car connectivity?
Where is the excitement?
The great hush
Ten years ago, wireless carriers were thrilled about connecting cars because the focus was increasingly on so-called value-added services such as vehicle diagnostics and service scheduling. Usage-based insurance also contributed to the rising interest and awareness. more>
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