The Car and Truck Fleet and Leasing Management Magazine

Cellular “Strangles” Telematics Deployment

July 31, 2007

MAHWAH, NJ – Growth in the telematics industry is sluggish as the cost of cellular modems and network subscriptions make it uneconomic for all but a few critical applications, according to the Web site www.theautochannel.com.

EZURiO’s new White Paper “M2M needs to discard cellular modems,” explains why the telematics and M2M industry is about to change. Legislation covering emissions and road tolling, along with new insurance and maintenance regimes, are imminent. They can’t tolerate the cellular pricing model and are driving the move to store and forward using “free” wireless access with cellular-free wireless, such as Wi-Fi.

According to the White Paper, despite years of promoting the cost benefits of fleet monitoring, the telematics market remains fragmented, with multiple niche players, high costs, and limited deployments.

In a 2006 survey by Harte Hawkes of fleet managers’ requirements, real-time location was way down their list of priorities. The four things they wanted were:

  • Fuel cost management insurance.
  • Risk management.
  • Driver behavior analysis.
  • Maintenance scheduling.

    Nowhere in that top four is there anything that demands real time data. Yet the cellular industry continues to peddle the myth that real-time is essential because location applications look good and gets them ongoing contract revenue, according to the Web site www.theautochannel.com.

    The White Paper can be downloaded from EZURiO’s Web site at www.ezurio.com/press/wp.

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