There's a growing buzz in the market around 'connected services' for use in
the 'digital car' as we call it - the war for the digital car has begun. With a growing set of options for
sending data over the air to your car and for two-way connectivity, pretty
soon, multiple devices in your car will get data-connected - examples include your
radio, your in-dash navigation device, your GPS device, your car as a
whole. Get ready for a whole new generation of applications and services
to come down these pipes into your car - at Venrock, we are looking opportunities to partner with entrepreneurs to leverage the car platform and build out these products.
But what are the options that you, as a consumer, have to get connectivity
while in your car? Are there ISPs you can sign up for your car (just like you
use Comcast High-Speed Internet or AT&T DSL services at home), do you have to buy
specialized consumer electronics devices (each with their own wireless
connectivity) or will your car come already connected? Well, it turns out that
the market is in quite a bit of flux and you have many options to choose from:
- Regular voice calls – Let’s not forget this
option. Some applications companies such
as 1-800-Free-411, TellMe, Vlingo, DialDirections and Voice On
the Go
are asking users to just call a phone number from their mobile phone to access
various types of data services such as yellow pages, navigation, email, movie listing,
podcasts etc. Of course, in this case,
you are leveraging a regular cell network. You can use a Bluetooth
headset/earbud to dial/access these services now pretty easily. The cost is what you pay for a
normal phone call. Be ready to start hearing ads during these calls.
- Mobile browsers/applications – Of course you can use
your mobile phone in your car to access data services such as Google Maps Mobile, Yahoo! Go etc. While almost everybody I know
(including myself) does this, I find this to be an increasingly dangerous
option – not only are our lives at risk when we’re doing this while driving but
it is, in many countries and US states, against the law. The cost is what you pay for regular wireless
data access.
- Mobile phone as modem - This is possible with some wireless data plans over some mobile phones. As a single-device solution focused on laptops, this solution is limited and somewhat technical. I haven't managed to figure out how this works for my laptop.
- PC cards for broadband access – This is also a good
single-device solution focused on laptops.
Most mobile operators such as Verizon (USA ), Airtel (India) and Orange (UK)
provide this service.
- Pirated WiFi access – With the proliferation of WiFi
coverage, there seems to be a pretty widespread coverage of open WiFi
connectivity points in most major cities – if all you are looking for is to
connect while stationary, then this may be a great way to go. Companies such as
Jiwire have
mapped out the WiFi network across the US and elsewhere.
- WiFi routers - Autonet Mobile seems to be the only vendor in this market - Autonet
turns a car into a Wifi hotspot using a a Wifi router for the car that connects
over 3G and 2.5G networks. The company has recently signed a deal with
Chrysler where, according to Fortune magazine,
Chrysler will offer the device for $450 and monthly service of $29 per
month. That's still more expensive than DSL or cable model connectivity
at home but may be interesting for business travelers or families who want the
kids to be connected to their friends/social networks/games while
traveling. Plus, this will allow you to connect your iPod Touch or iPhone
over WiFi while driving - this may get interesting once Apple releases a
navigation application or Telenav or Networks in Motion or the like do the same
for the iPhone.
Behind the curtains, there are a number of wireless connectivity vendors in the market that are selling to consumer electronics device makers and automobile manufacturers/OEMs. As a consumer, you can’t buy these connectivity services directly. But
the vendors providing you with devices (such as Mio, Dash, Magellan, Hughes
Telematics, Samsung, Pioneer) and automobiles are bringing these connected devices to your neighborhood dealership or consumer electronics store.
- High-speed wireless data networks - Companies
such as Jasper,
Kore
and Aeris are
in this market. They provide network connectivity over GPRS, CDMA 1x-RTT and
EV-DO. Customers of these service
providers include consumer electronics vendors such as Dash Navigation and Navman/Magellan
and telematics service providers such as Hughes Telematics and ATX. Device makers typically have a monthly data
limit per activated device and pay a monthly fee for this service. In some sense, these companies are data
MVNOs, leveraging networks provided by Sprint, Verizon, AT&T etc. Some mobile operators such as T-mobile are
rumored to be getting into this game directly.
- Data over voice – Vendors such as Airbiquity are in this market. Airbiquity uses the voice channel of any cell network to
transmit data. Airbiquity lists OnStar, BMW, Ford and others as its customers.
- WiMax – Vendors such as Sprint and Clearwire have announced their
intentions to offer a US-wide WiMax network.
There are also solutions in the market for broadcast data connectivity. These typically leverage the radio or TV broadcast networks and only enable data to be sent one-way from the service provider to the client device.
-
Radio Data System (RDS) – This is a broadcast network
provided by the likes of ClearChannel,
Westwood One,
MSN Direct to send data on
over FM radio networks. Most radios today are RDS-enabled- you know you have
this if you can get song titles showing up on your radio. The upside is that this is a ubiquitous
network pretty much available wherever radio is accessible. The downside is the slow data rate and
broadcast-only mode.
- Data over satellite radio – XM and Sirius are providing
broadcast data capabilities – XM’s NavTraffic and NavWeather are examples of
this. Like RDS, this is a broadcast-only offering.
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