EU’s push for eCall could boost telematics industry

10 Sep 2009

Sunnyvale-based M2M-Provider Jasper Wirless assesses the EU's reborn support for eCall as an interesting development for the telecommunications industry.

According to Macario Namie, senior director of product marketing, European operators will be required to efficiently manage an enormous number of devices, if EU countries heed the European Commission's appeal to speed up the voluntary implementation of eCall.

"We are experiencing a growing demand for M2M services, with tier 1 operators worldwide having recently announced investments in serving this fast growing market - including AT&T, KPN, Vodafone and Orange," says Namie. "eCall will further accelerate this trend and reinforce the business case for operators looking to invest in connected devices."

While car manufacturers are concerned with the associated costs of eCall, he points out, that wirelessly connecting vehicles will open the doors for a range of additional services - from navigation and information on local facilities to breakdown coverage.

The EC's push for regulation will also lead to innovation in the M2M space, opening the doors to new revenue sources for the telecomms and car industries.

According to Namie, a similar initiative was being implemented in Brazil, where the national department of transport was fighting vehicle theft by introducing a regulation requiring all new cars to come out of the factory with an embedded tracking system - starting in February 2010. "Since most car manufacturers in Brazil are subsidiaries of European companies (e.g. Volkswagen and Fiat), the technology is expected to be exported to feed into Europe and help make eCall a reality."

ARCchart's research director, Matt Lewis, is suprised that governments don't see the additional indirect benefits that embracing eCall will bring, particularly in the present economic climate.