The company expects 11 million in-car subscribers in 2005. GM expects to have sold million units in 2000 and 4 million by 2003. Attractive proposition for auto makers is ongoing revenue by selling Internet-based services. Telematics market is well structured, well-organized because major auto manufacturers are driving the initiative. The market is not splintered among several hundred startups like the wireless Internet market is.
Auto manufacturers know how to market to consumers and are offering incremental services.
Since car manufacturers are safety conscious for some time and do not want to face law suits, they are insisting on voice-activated interface. This is very wise and responsible, we think. Then Telematics will become convenience offering, rather than a safety offering. Ownership of the customer - it appears that customer clearly belongs to auto manufacturers. In the mobile commerce space, wireless network carriers, wireless portals and content providers are all fighting for the crown.