AT THE HEART OF THE ROAD TRANSPORT INDUSTRY.

Call our Sales Team on 0208 912 2120

Analysts warn of telematics inequality in German system

29th May 2003, Page 17
29th May 2003
Page 17
Page 17, 29th May 2003 — Analysts warn of telematics inequality in German system
Close
Noticed an error?
If you've noticed an error in this article please click here to report it so we can fix it.

Which of the following most accurately describes the problem?

• Third-party telematics providers could face unfair competition on the German market from the consortium providing the telematics technology for Germany's new toll system, according to market analysts Frost & Sullivan.

Toll Collect, the consortium consisting of DaimlerChrysler Services, Deutsche Telekom and French company Cofiroute—which recently won the contract to provide the onboard telematics needed for the country's new motorway toll system—could have a dramatic effect on the domestic German market for telematics providers, says the market research firm—particularly if either Toll Collect itself or individual consortium members begin offering 'added-value' telematics services like commercial track and trace services.

The European Commission has recently given conditional clearance for the acquisition ofjont control by DaimlerChrysler and Deutsche Telekom of the newly-created joint venture, That clearance depends, however, on Toll Collect developing a GPS interface for its onboard units in order to connect them with third-party peripherals, and on the development of a toll collection module to be integrated into third-party telematics devices.

It also requires the formation of an independent telematics gateway company not controlled by the parties and operating through a central interface through which telematics services can be fed into the Toll Collect system and provided to all trucks equipped with its onboard unit.

But though she welcomes these conditions, Miranda Carpenter, programme manager at Frost & Sullivan, still says that even if Toll Collect opens up its technology to rivals, inequality will still occur if valueadded services are offered by itself or the consortium members at some point.

'While Toll Collect will be able to offer its services on a unit which is offered to the vehicle owner free of charge, the other players may still have to install their own computer and screen alongside the Toll Collect unit," she says. "Furthermore, because it will be difficult for the telematics suppliers to reach levels of production similar to those of Toll Collect, the cost of hardware . is likely to decrease at a slower rate."

The problem is likely to be exacerbated by the sheer volume of onboard units to be installed, she adds. "Frost & Sullivan anticipates that at least 950,000 Toll Collect units will be installed on heavy vehicles by the end of 2004, a figure which could create a severe drain in the potential market for telematics systems."

Toll Collect spokesman Sven 011mann says telematics services will never be offered direct by Toll Collect.

"Toll Collect has been commissioned by the federal government to develop and operate a toll system for heavy trucks. Telematics services are not part of this order and will thus not be offered," he says.

But he admits the onboard units have been designed in such away that they can be used for additional services including track and trace and SMS messaging, and concedes that Toll Collects shareholders are "active" on the telematics market.


comments powered by Disqus