AirIQ and Delphi team up for standard telematics connectivity interface module

Telematics application service provider AirIQ Inc. is teaming up with automobile electronics manufacturer Delphi Corp. to develop a common electronics platform for making a much wider variety of vehicle information available to fleet managers and vehicle owners. The two companies hope to create an interface module that would eventually become the standard connectivity platform in all new and used vehicles. The trucking, taxi and other fleet management sectors already enjoy the benefits of telematics applications such as tracking drivers’ routes and ensuring regular vehicle maintenance. But for it to have success in the future it needs to be standards driven, according to AirIQ’s VP marketing and investor relations Miguel Gonsalves. "We think that telematics standards are extremely important for this marketplace going forward," he says. The module will provide additional vehicle information such as fuel consumption or scheduled oil changes by directly connecting the vehicle’s electronics system, or the vehicle bus. With a standard interface, says Gonsalves, the fleet manager would be able to save money by automating the planning process for vehicle maintenance and inspection, for example. AirIQ would gather all this information wirelessly, store it in its network operations centre and then ultimately transmit it to the fleet manager. The product, which will be released in the second quarter of 2003, will not only appeal to vehicle fleet owners, such as trucking, courier and taxi companies, but will also have a consumer flavour. The consumer telematics market has been largely ignored by the industry, but has seen some success with the OnStar system, for example. Gonsalves says that moving into the consumer space is very much a part of the company’s future plans, but AirIQ has taken a pragmatic approach to the market. "We have been very systematic about ensuring we have a large enough commercial market and waiting for the right time to enter the consumer market in a large way," he tells Report on Wireless. The telematics industry in North America is growing, according to research by U.S.-based Telematics Research Group Inc. An April 2002 report titled, Trends, Technology, Market Forces and Perspectives on the Worldwide Automotive Telematics Industry, indicates that connectivity and digital car capabilities – the two driving forces behind telematics – "will be a catalyst for telematics and related technologies in the next decade. The question is not if automotive telematics will happen, but when, how fast and what functions will become prevalent." AirIQ will concentrate its initial efforts on the used vehicle market, commonly referred to as the after-market. However, Gonsalves believes that there will be considerable interest from automobile manufacturers. With Delphi’s considerable connections in the automotive space, it will go after the car manufacturers. "We’ve been talking with Delphi for quite some time," Gonsalves explains, adding that Delphi is one of the world’s largest OEM manufacturers in the automotive business. "We wanted to have a player large enough that we could be part of making that happen and that’s good news for our business because we’ll still provide the wireless (portion) and the connectivity." The Telematics Research Group report also indicates that the number of telematics-enabled vehicles on the global market will surge significantly over the next five years. By 2007, the research firm predicts that there will be more than 45 million telematics-enabled vehicles worldwide. The potential revenue windfall is just as great. The report hypothesizes that if there were 200 million U.S. automobiles with telematics services by 2020 all paying a US$20 per month service fee, annual revenue would be approximately US$48 billion. The group projects that the worldwide market is two to three times larger than the U.S. market.

AirIQ and Delphi team up for standard telematics connectivity interface module

News | September 16, 2002

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