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Global Telematics: Regional Differences Impact Strategy and Content

    MINNEAPOLIS--Feb. 27, 2002--The U.S., Western Europe, and Japan are the major growth regions for telematics but the characteristics and issues within those regions are quite different.
    "In the U.S., telematics services that provide safety and security have been the killer app, but new services that provide content and integration of cellular services will pave the way for future growth," says Phil Magney, principal analyst with Telematics Research Group.
    The European market, which lags the U.S. in terms of telematics subscribers, desires access to in-vehicle travel portals as a means of dealing with travel between countries of different languages and cultures. Traffic and routing are also very important, and new applications such as floating car data improve the accuracy of the data.
    Japan, meanwhile, will see telematics emerge as an extension of navigation simply due to the high density of autos in-use. "Japan's leadership in packet-based and 3G cellular deployment will be a catalyst for content-rich telematics in this region," says Dr. Egil Juliussen, principal technology analyst with Telematics Research Group. "Furthermore, Japan's government is pursuing the deployment of ITS systems including automated toll payment, traffic detection/control/automation and long-term goals such as platoon driving and intelligent highways," adds Juliussen.


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                    Regional Telematics Differences
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                  USA               W. Europe            Japan
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Market     -Homogeneous market  -Multiple          -Homogeneous market
Character- -Large land mass      languages         -Difficult
istics     -Spotty wireless     -Multiple cultures  navigation
            coverage            -Inter-country     -Long-term ITS
           -4 cell phone         travel             vision
            systems             -Cell phone & SMS  -Packet-based cell
           -58 autos/square      use                phone
            mile                -92 autos/square   -493 autos/square
                                 mile               mile
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Telematics -Safety & Security   -Travel            -Navigation
Focus      -Content & LBS info   information       -Real-time traffic
           -Cellular            -Real-time          info
            integration          traffic info      -Travel information
           -Navigation          -Navigation        -Safety & Security
                                -Safety & Security
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Driving    -Keeping up with     -Mobility info     -Government ITS
Forces      OnStar               websites          -Web cell phone
           -Collision EDR       -Cell phone usage   usage
           -Active safety       -Active safety     -Active safety
            systems              systems            systems
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Leading    -GM                  -BMW               -Toyota
Auto       -Mercedes-Benz       -Mercedes-Benz     -Nissan
Companies  -BMW                 -Audi              -Honda
w/TM       -Lincoln             -Fiat              -Mazda
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Issues     -Driver distraction  -Fragmented        -What's next after
           -Privacy protection   markets            navigation?
                                -Language barriers
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Telematics -Add content &       -Leverage cell     -Leverage
Strategy    services to          phones &           navigation
            "Safety &            SMS network        systems & cell
            Security"                               phones
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Current    -1M navigation       -2M+ navigation    -6M+ navigation
Status      systems              systems            systems
           -3.5M TM-enabled     -Less than 50K     -4M+ VICS receivers
            autos                TM-enabled        -Less than 40K
           -2.5M TM subscribers  autos              TM-enabled autos
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    Telematics Research Group has recently profiled the telematics systems and services within each geographic region around the world. TRG's new report, Worldwide Telematics: Regional Markets and Forecast provides a roadmap for companies seeking a worldwide telematics presence.
    Telematics Research Group will be presenting at EyeForAuto's Telematics Detroit on May 15-16 in Detroit and TRG's Telematics Conference in Japan on April 10th. TRG will also be present at SAE's Digital Car next week in Detroit. For more information, or to arrange a meeting, contact Telematics Research Group at www.telematicsresearch.com