Telematics Goes Beta

By Jason Thibeault - Article from Issue 12 of Telematics Update Magazine (4/3/2002)

Telematics Update is a free print magazine dedicated to bringing you the latest content and interviews from the leaders in automotive telematics and wireless.

The recent announcement by Wingcast to provide their telematics service as a standard feature in Infiniti cars (3/28/2002) is only one announcement in a series by Wingcast that is pointing to a new and promising future for the telematics industry.

Up until their announcement, the telematics space had largely been ruled by OnStar. General Motors, pumping millions of dollars into national advertising, was driving OnStar (and the OnStar brand) forward as a value-added feature for GM vehicles. And although OnStar is rich in valuable features (such as hands-free calling, crash and air-bag deployment notification, driving directions, etc.) it is a poor business model for telematics companies-it's proprietary (only available in GM vehicles) and it's isolated (only available in the car).

As a representative of the potential for telematics, OnStar is the Alpha version of the industry.

Wingcast, then, is the Beta.

The announcement with Nissan North America to provide the Wingcast service (through a four-button, mounted device) in the 2003 Infiniti G35 Coup, G35 Sedan, M45, and G45 marks a shift in the telematics industry. No longer will consumers be limited to a specific vehicle to experience telematics service (Wingcast will also provide their technology in Ford vehicles in the near future).

Although OnStar could very well accomplish this strategy by providing their device and service to other automotive OEMs (or third-party equipment manufacturers), Wingcast is a much more fundamental departure from the OnStar business model. In short, Wingcast is not developing the end solution themselves (i.e., building all of the components that make up the end-service). They are integrating technology into a "telematics network" to provide consumers with the most robust solution possible and greatest value. They have established two partnerships-with Verizon Wireless and BeVocal-that offer voice-activated services through the Wingcast device.

These voice-activated services-accessing data, email, voicemail, and voice portal services-are already used by consumers. Integrating these into the service that will be experienced by Infiniti drivers later this year is a monumental achievement in meeting (at least partially) two of the core telematics values that I addressed in The Value of Telematics (this edition) - transparency and demand. By providing consumers with services they already use (wireless and voice-portal) over the widest area possible (through the Verizon Wireless tri-mode digital network), Wingcast is ensuring quick adoption of the features and services in day-to-day consumer activities.

It's not hard to imagine that as voice portals and wireless voice-services become more robust consumers will be driving down the road accessing their account balance through a voice-driven menu system on the Wingcast network.

But the claim that Wingcast is the "telematics beta," isn't just a result of their service offering. Telematics, like all technology, only evolves when a number of critical providers and partners offer complimentary products that help transform the overall experience. This is exactly what happened with the personal computer operating system. Microsoft, Apple, and Xerox all worked together (not always altruistically) on the issues associated with making the operating system interface as valuable to consumers as possible. The results? Windows XP and OS X.

Nissan North America and Wingcast are accomplishing the same thing. Where Wingcast is providing this "telematics network" of familiar functionality, Nissan is offering a companion handset to utilize the Wingcast service outside of the car. Nissan has recognized that in order for the service to be as valuable as possible, consumers must be able to use it when they want to (whether in the driver's seat or on the couch).

As this partnership between Wingcast and Nissan grows (and is augmented by more equipment providers and more automotive manufacturers), it will only further develop this "beta version" of telematics. How long will it be before the companion handset to a Wingcast-enabled car is the cell phone you already carry? How long will it be before other devices in our lives become part of the Wingcast network (as more third-party providers integrate their products and services with Wingcast)?

Perhaps, ultimately, that is what this "beta" will see developed-a "telematics operating system" that will provide for an infinite number of service providers and device manufacturers to integrate their offering.

If that happens, telematics will no longer be in beta.