connected living programme: mautomotive · 2013-04-29 · unlocking operator potential in...

© GSM Association 2011

Connected Living Programme: mAutomotive Activities, Results & Asia Region Discussion

Francesca Forestieri Director, mAutomotive, Connected Living Programme


mAutomotive Agenda

Introduction – ALL (9:00)

Why mAutomotive important? (9:20)

GSMA mAutomotive Activities (9:30)

First Results: Discussion Points (10:00)

– Every Car Connected 2025: Forecasted Growth and

Opportunities

– Connecting Cars: the Technology Roadmap

– Connecting Cars: Innovating Business Models

Regional Activities and Perspectives (11:15)

– KT Automotive Activities

– SK planet’s Telematics Businesses

Brainstorming – ALL (11:45)

What are the regional priorities? – ALL (12:30)


What is GSMA?

Founded in 1987 by 15 operators committed

to the joint development of a cross border

digital system for mobile communications

In 24 years GSMA membership has grown to

nearly 800 of the world’s mobile operators

and over 200 companies in the broader

mobile ecosystem, from 219 countries

Innovating, incubating and creating new

opportunities for its membership, to drive the

growth of the global mobile communications

industry

GSMA represents over 4.5 billion

connections around the world


GSMA Connected Living Programme

Health Automotive Education

Smart Cities Demonstrator

(Mobile World Capital)

Connected Experiences Campaign

Service Awareness & Roaming

Mission: To accelerate the development and adoption of operator led

scalable and interoperable mobile solutions:

Vision 2020: To create a world where everything intelligently connects via

mobile networks, delivering rich services to businesses and consumers in

every aspect of their lives

Operator Leadership

Board Sponsors

KT, Telenor,

Vodafone

Programme

Leadership Group

AT&T, KT, Telenor,

Vodafone


GSMA mAutomotive Team

• GSMA Director, mAutomotive

• Transport and Information Services Development using New

Technologies

• Focus: Connected Car Service Development

• Contacts: [email protected] Tel. +39-333-2736084 Francesca Forestieri

• GSMA Programme Administrator –Connected Living

• Background: town planning and consultancy

• Focus: market acceleration, privacy

• Contacts: [email protected] Tel. : +44 7595 217 025

Poonam Kara

Gina Cuomo

• GSMA Project Manager mAutomotive

• Background: mobile network operator strategy

• Focus: understanding automaker business/customer needs

• Contacts: : [email protected] Tel: +447825094692

mailto:[email protected]









Who is Here?

Companies Participating in Seminar

Cinterion Wireless Module

GmbH

Renault

Samsung Motors

Ericsson Samsung Electronics Co Ltd

Fortech SK Planet

GSMA SK Telecom

Hyundai-Kia Motors SOFTBANK MOBILE Corp.

KT Telenor

Momentis Telit

Nokia Wireless Solutions

Siemens Networks Vehicle IT Convergence Association (Korean)

NTT DoCoMo

OBIGO Inc.

Oracle

Qualcomm


Please Present yourself,

indicating your:

– Organisation

– Background

– Level of Interest Connected

Car Services

– Primary Topics of Interest

– Geographical Focus

Presentations


mAutomotive Agenda






Opportunities









Why is Automotive Important to Operators?

1. Predicted Growth in

Telematics & Infotainment 2. Important Opportunity for

Operators in Value Chain

Vehicle Hardware

Application Provider

Telematics Service Platform

Content Call

Centres Connectiv

ity

OEMS (and suppliers)

Telematics Service Providers

Operators

(Examples, Historic, Development Path)

Operators

(Critical Mass)

• Existing fragmentation in requests for service support

• Necessity to develop interoperable, regional/global

solutions

• Importance of connectivity related-issues (including

security and privacy) are growing

• Evolving market demands, as more data intensive

services are expected to be deployed on massive

scales requiring new technologies, business models

and cooperation

3. Why cross-industry

collaboration is necessary?


mAutomotive Agenda






Opportunities









mAutomotive Workstream:

Activities Fiscal Year 2011

- Increase collaboration across ecosystem actors - Bring forward areas of collective action that can reduce fragmentation - Promote use of GSM family technologies for services to the automotive industry

White Papers/Flyer

s

Launching of Joint

initiatives

Connected Car Forum

• Connecting Cars: The Technology

Roadmap

(http://www.gsma.com/documents/g

sma-connecting-cars-the-

technology-roadmap/22668)

• 2025 Every Car Connected:

Forecasting the Growth and

Opportunity

(http://www.gsma.com/documents/g

sma-2025-every-car-connected-

forecasting-the-growth-and-

opportunity/22670)

• Connected Cars: Business Model

Innovation (to be published April

2012)

http://www.gsma.com/documents/gsma-connecting-cars-the-technology-roadmap/22668













http://www.gsma.com/documents/gsma-2025-every-car-connected-forecasting-the-growth-and-opportunity/22670






















Who Participates in the Connected Car Forum? A

uto

ma

kers

: • Audi, BMW, Fiat, Ford, GM, Honda, Hyundai, Jaguar Land Rover, Nissan, Peugeot, Renault, Subaru, Toyota, Volvo, VW;

Ope

rato

rs: • AT&T, Bell Canada, China

Mobile, China Telecom, China Unicom, Deutsche Telecom, KPN, KT, NTT Docomo, Orange, Rogers, Softbank, Telecom Italia, Telefonica, Telenor, Telstra, Teliasonora, Turkcell, Verizon Wireless, Vodafone;

• London: 06/11, 09/11; 11/11; 02/12

Global Connected

Car Forums:

• China 12/11

• Japan 09/11

Past Regional Events include:

Past Events:


Topics Proposed for Joint Collaboration

Enablers •Billing

•Security

•Roaming

•Remote provisioning of SIM

Operational Improvements •Optimising data usage

•Defining common requirements for telematics services

•Improved service delivery by different connectivity

•eCall deployment (EU)

New Business Development •Joint APIs

•Business modelling

•Location based services

•Future services enabled by high bandwidth technologies (such as LTE)

Results:

2nd Quarter 2011

Remote Management of SIM Requirements

Embedded Connectivity Use

Cases

Tethering Obstacles

Apps Development Requirements


GSMA Automotive Activities 2012

for Priority Themes

Priority Themes

Activities

Requirements &

Use Cases

Specifications/G

uidelines White Paper

Trial / Proof of

Concept

Remote Management of SIM:

Proof of Concept x

Service Awareness & Roaming:

Requirements for Telematics &

Infotainment Services (permanent

roaming, ensuring service viability in

roaming)

x

Charging & Payment:

Split, Service Based and End User

Payment for Telematics and

Infotainment

x x

Tethering:

Motivations and Obstacles to

Tethering Uses Cases in Automotive;

Reference Implementation

Guidelines for PAN/DUN Profiles

x x x

High Bandwidth Enabled

Services: Looking Towards the

Future

?

eCall: Beyond pan-European eCall x x


Unlocking Operator Potential in Automotive –

Potential Trial Areas

Increasing Connectivity

• Beyond Pan-European eCall.

• Potential missed opportunity if automakers decide to limit implementation to pan-European eCall – despite hardware investments for connected cars, potentially no services (no connectivity) would be deployed.

• All new type approved vehicles in Europe would be required to have eCall from 2016 – total sales are expected to be around 17 million vehicles per year of which about 15% are expected to be new type approvals. By 2020, 75% of sales will be fitted. (SBD 2011).

New Services

• Charging & Payment Services for Telematics and Infotainment Services.

• Charging mechanisms which enable split, service-based and end-user billing are needed to support global + new business models for infotainment services.

• 6 billion of annual revenue for service/content enabled for embedded telematics (SBD 2012).

• High Bandwidth Enabled Services

• Greatest opportunities for operators with regards to revenues and role in infotainment arena. Promotion of new enabled service opportunities.

• Infotainment services are expected to account for up to 80% of all automotive m2m traffic (Machina 2011)

Promoting Operator Assets

• Proof of Concept for embedded SIM in Automotive Sector, with a critical mass of ecosystem actors

• Next generation of Embedded SIM represents an important asset for the connectivity requirements for automotive.

• Satisfies 13 out of 17 connectivity use cases identified by OEMs.

• Demonstration of proof of concept with critical mass of ecosystem actors.


Why is GSMA’s mAutomotive and

the Connected Car Forum different?

Define user requirements/use cases for critical

barriers, enablers, opportunities

Raise awareness across operators

Identify solution paths (within

GSMA activities or outside)

Ecosystem

Change

mAutomotive Workstream

Connected

Car Forum

GSMA

External

Where

work

is d

one


Connected Car Forum Events

Global Connected Car Forums

Objectives;

• Identifies strategic direction

• Brings forward global initiatives

Dates:

• May 22nd 2012

• Sept 12th 2012

• November 27th 2012

• February 25 (TBC) 2013

• Monthly Conference Calls

Regional Connected Car Forums

Objectives:

• Local telematics service barriers and opportunities

• Global issues from local industry perspective (ex. how to foster global telematics services)

• Verification & Validation of results of Global CCF

Dates:

• Europe (22/05/12; 27/11/12)

• North America (5/06/12)

• Japan (Fall 2012 – TBC)

External Stakeholder Involvement

May 23rd 2012 (Tethering)

November 28th 2012


How Can I Get Involved?

Join the Connected Car

Forum (operators and automakers

only)

Join the GSMA mAutomotive

Workstream, in the Connected Life

Programme

Participate in External

Events: Extended CCF

or CLP Summits

Connected Car Forum (CCF) Meetings:

• Global CCF London 22nd of May 2012

• CCF Regional Meetings (issues to raise?):

• North American CCF Detroit 5th of June 2012

• Asian CCF Japan Fall 2012

External Events:

• Tethering Roundtable London 23rd of May 2012


mAutomotive Agenda






Opportunities









2025 Every Car Connected


Forecasting Growth in Connected Cars

Barriers to

embedded

telematics

Triggers for

change

Impact of trigger on growth of each connectivity solution

Embedded Tethered Integrated

High

Hardware

cost

Telematics

mandates

Higher

(mandate likely to

require embedded

telematics)

No impact No impact

High

Communication

cost

Shared data plans

Higher

(More attractive

billing models for

driver as

connectivity can be

linked to phone bill)

Lower

(less need for

tethering if there is

an embedded SIM

in every car linked

to driver’s mobile

bill)

No impact

Smartphone/

Customer

relationship

Web-based Apps

Higher

(Lower barrier to

embedded

solutions as they

only require a web

browser)

No impact

Lower

(App no longer tied

to smartphone so

less need for

integration)

Source: 2025 Every Car Connected: Forecasting the Growth and Opportunity


Triggers for Growth in Connected Cars



Growth of Connectivity in Cars: 2010-2025



Synergies Across Connectivity Options

These three connectivity solutions are not mutually exclusive and

can be used in tandem as appropriate for the proposed applications.

Moreover, these solutions are likely to continue to co-exist in the

future. A tandem approach might be used, for example, when the

technology employed for the embedded system is likely to not be

appropriate for newer-generation or higher bandwidth services.

These connectivity solutions also reflect the automakers’ objective

to differentiate between the:

– Costs for services that they are interested in bearing (such as

remote diagnostics)

– Costs for large bandwidth, frequent use services (such as

infotainment).

If this differentiation would be possible through split billing,

automakers would likely reduce dramatically the employment of

tethered solutions.


Embedded Evolution Forecast

0

10

20

30

40

50

60

70

80

90

100

Em

bed

de

d A

nn

ual

un

it s

ale

s (

Mil

lio

ns)

ROW

India

Russia

Brazil

China

Japan

W EU

USA


Geographical Spread of Tethering

0

5

10

15

20

25

30

35

Teth

ere

d A

nn

ual

un

it s

ale

s (

Mil

lio

ns)

Forecasted Regional Tethering Evolution

ROW

India

Russia

Brazil

China

Japan

W EU

USA



mAutomotive Agenda






Opportunities









Connecting Cars: Technology Roadmap


Summary of Current Regional Network

Deployment (Scale: * Low; ***** High)

Regional

Coverage

2G 3G LTE

PDC CDMA/

RTT1X GSM GPRS EDGE TD-

SCDM

A

UMTS HSPA HSPA+ CD

MA-

2000

EV-

DO

Asia /Pacific:

Japan * ** - - - - ***** ***** **** *** *** **

Korea - ** * * * - ***** ***** **** *** ** **

China - ** **** **** **** *** *** *** *** *** *** -

Australia/New

Zealand

- ** ***** ***** ***** - ***** ***** ***** ** - *

Rest of Asia/

Pacific

- * ***** ***** *** - **** *** ** * * *

Europe - - ***** ***** **

** - **** **** *** - - *

Latin America - * ***** ***** **** - **** **** ** * * -

Middle East

and North

Africa

- * ***** ***** **** - **** **** ** * * *

North

America

- **** **** **** *** - **** **** *** *** *** **

Sub-Saharan

Africa

- * **** **** **** - *** *** ** * * -

Source: Connecting Cars: Technology Roadmap


Potential Regional Network Evolution 2020

(Scale: * Low; ***** High)

Regional

Coverage

2G 3G LTE PDC CDMA/

RTT1X GSM GPRS EDGE TD-

SCDMA UMTS HSPA HSPA+ CDMA

2000 EV-

DO Asia /Pacific:

Japan - - - - - - **** **** **** *** *** *****

Korea - - - - - - **** **** **** *** *** *****

China - - *** *** ** **** **** **** **** **** **** ****

Australia/New

Zealand

- - *** *** ** - ***** ***** ***** ** ** ****

Rest of Asia

and Pacific

- - **** **** ** - **** **** **** * * ****

Europe - - *** *** ** - **** **** **** - - ****

Latin America - - *** *** *** - **** **** **** - - ***

Middle East

and North

Africa

- - *** *** ** - **** **** **** - - ****

North America - ** ** ** ** - **** **** **** *** *** ****

Sub-Saharan

Africa

- - *** *** *** - **** **** **** - - ***



Legend: ECC: Essential Constraining Criteria; I: Important; VI: Very Important

Primary Importance of Technology Criteria for

Telematics and Infotainment Services

Wide

Coverage High

Bandwidth Low Latency

High

Security High Reliability High Privacy

Radio - music, news: On-demand

real time content I ECC I I

Video: On-demand and real-time

content ECC I I

Multimedia, Internet services and

more. ECC I I

Navigation/journey

times/augmented reality points of

interest

ECC I

Travel and traffic assistance

(assisted traffic regulation, access

control/parking zone

management/eco-driving)

ECC

Remote control of vehicle

environment/ car features ECC I VI

Remote diagnostics ECC I I

Breakdown services (bCall) ECC VI VI I

General eCall (not EU specification) ECC VI VI I

Insurance/stolen vehicle tracking ECC VI I I

Fleet management ECC I I

eFreight/ tracking and tracing ECC

I I

Payment/ticketing ECC

VI I VI

Electrical vehicle use cases:

Battery charge monitoring/ control

ECC

I

Traffic sign warning ECC

VI VI I



Network Technology Requirements for

Connected Car Services

Requiring HSPA (3.5G) or higher

Infotainment: High Bandwidth

Infotainment: Lower Bandwidth

Other in-vehicle services enabled by

cloud computing

Requiring Edge (2.5G) or higher

Navigation/journey times

All network technologies are appropriate

All other telematics services



Connectivity Guidelines per Service

Legend:

Ideal

Acceptable

Barriers

Not Appropriate

Embedded Barriers

to Be Overcome:

• Fitment rates of

vehicles

• Future proofing

solutions

• Split Billing

between OEM and

Consumer

Source: Connecting Cars: Innovative Business Models


Factors driving evolution of in-vehicle services

Evolution in consumer electronics, internet and Apps will drive consumer demand for services

High bandwidth cellular network deployment

Cloud based services

HTML5 – changing the services offered in the car



mAutomotive Agenda






Opportunities









Connected Cars:

Business Model Innovation


Different Revenue Streams for

Connected Car Services

Revenue Streams

1. Consumer covers the service costs and the

perceived value is equivalent to the service

price (semi-regular basis)

2. Automaker builds price of service into the price of the car (no upfront costs)

3. Automaker subsidises a subset of

services (where perceived value for

the automaker is high)

4. Mixed revenue streams (from

automakers, third-party players, advertisers,

consumers) cover costs for service

deployment



Types of Business Models

Bundled subscription-based services:

• Upfront payment for lifetime services in the vehicle

• Upfront payment for services valid through the first owner

• Long-term subscription fees (annual or longer) for services, after an initial free trial period.

Incremental service subscription:

• Micropayments for single services, based upon one-time purchase of service or usage levels of service;

• Freemium solutions, where:

• Basic services are provided at no cost, with the purchase of additional functionality; or

• Trial services are available for free, but after a certain time or amount of usage, the service has be purchased;

• Promotional offers

Leveraging additional revenue streams:

• Targeted advertising:

• Using location-based information

• Using personal data

• Data sales:

• Business to business (e.g. traffic, insurance)

• Automaker internal

• Cross subsidy:

• Savings or potential increased revenue offsets the costs of the telematics service provision, generally within the automaker



Mapping of Services to Business Models

Legend:

Ideal

Acceptable

Barriers

Not Appropriate Source: Connecting Cars: Innovative Business Models


Examples of Different Business Models to

Telematics and Infotainment Services



Balancing Value, Price and Costs for Services

Value Cost Vs. Market Price, Revenue

Streams



How Important is it to Offer Telematics:

Regional Realities

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Must-have Big influence Nice-to-have No influence Don't need

Source, SBD 2011


mAutomotive Agenda






Opportunities









Thank you!

Francesca Forestieri

[email protected] or +39-333-273-6084

http://www.gsma.com/connectedliving


http://www.gsma.com/connectedliving

connected living programme: mautomotive · 2013-04-29 · unlocking operator potential in...

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