© GSM Association 2011
Connected Living Programme: mAutomotive Activities, Results & Asia Region Discussion
Francesca Forestieri Director, mAutomotive, Connected Living Programme
© GSM Association 2011
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)
© GSM Association 2011
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
© GSM Association 2011
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
© GSM Association 2011
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
© GSM Association 2011
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
© GSM Association 2011
Please Present yourself,
indicating your:
– Organisation
– Background
– Level of Interest Connected
Car Services
– Primary Topics of Interest
– Geographical Focus
Presentations
© GSM Association 2011
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)
© GSM Association 2012
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?
© GSM Association 2012
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)
© GSM Association 2012
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)
© GSM Association 2012
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:
© GSM Association 2012
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
© GSM Association 2012
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
© GSM Association 2012
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.
© GSM Association 2012
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
© GSM Association 2012
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
© GSM Association 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
© GSM Association 2012
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)
© GSM Association 2012
2025 Every Car Connected
© GSM Association 2012
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
© GSM Association 2012
Triggers for Growth in Connected Cars
Source: 2025 Every Car Connected: Forecasting the Growth and Opportunity
© GSM Association 2012
Growth of Connectivity in Cars: 2010-2025
Source: 2025 Every Car Connected: Forecasting the Growth and Opportunity
© GSM Association 2012
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.
© GSM Association 2012
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
© GSM Association 2012
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
Source: 2025 Every Car Connected: Forecasting the Growth and Opportunity
© GSM Association 2012
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)
© GSM Association 2012
Connecting Cars: Technology Roadmap
© GSM Association 2012
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
© GSM Association 2012
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
- - *** *** *** - **** **** **** - - ***
Source: Connecting Cars: Technology Roadmap
© GSM Association 2012
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
Source: Connecting Cars: Technology Roadmap
© GSM Association 2012
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
Source: Connecting Cars: Technology Roadmap
© GSM Association 2012
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
© GSM Association 2012
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
Source: Connecting Cars: Innovative Business Models
© GSM Association 2012
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)
© GSM Association 2012
Connected Cars:
Business Model Innovation
© GSM Association 2012
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
Source: Connecting Cars: Innovative Business Models
© GSM Association 2012
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
Source: Connecting Cars: Innovative Business Models
© GSM Association 2012
Mapping of Services to Business Models
Legend:
Ideal
Acceptable
Barriers
Not Appropriate Source: Connecting Cars: Innovative Business Models
© GSM Association 2012
Examples of Different Business Models to
Telematics and Infotainment Services
Source: Connecting Cars: Innovative Business Models
© GSM Association 2012
Balancing Value, Price and Costs for Services
Value Cost Vs. Market Price, Revenue
Streams
Source: Connecting Cars: Innovative Business Models
© GSM Association 2012
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
© GSM Association 2012
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)
© GSM Association 2011
Thank you!
Francesca Forestieri
[email protected] or +39-333-273-6084
http://www.gsma.com/connectedliving