What is Telematics?

What is telematics? Telematics is often considered a cross between communications and computer systems. For automobiles a telematics system consists of putting a computer, a wireless connection to either an operator or data services like the Internet and a global positioning system (GPS) into a car.

Telematics is also being considered for monitoring purposes, but is rarely referred to in any context beside automobiles.

What is it used for? Telematics is used for monitoring, safety and convenience. A telematics system can notify an operator when the “check engine” light goes on or when an airbag deploys. When a safety measure is detected in the car, an operator calls the car to make sure the passengers are okay—and if they aren’t then the operator sends helps. Global positioning systems (GPS) tell the operator where to send the police and ambulance.

If you lock yourself out of the car then a telematics system can unlock it for you, and if your car is stolen the system can locate it for you. A Lexus can even call you if your car alarm goes off.
Automobile telematics systems have the potential offer several services. A concierge system is a possibility. So is voice-delivered Web access. As of right now, however, most only offer safety and navigational help.

Who is using in car telematics? Only about one million people right now, but that number is expected to grow. By 2006 more than 50 percent of all cars produced in North America will be capable of telematics, and 90 percent of all luxury cars will offer services, says the Strategis Group. Revenues are expected to reach $9.4 billion in North America by 2006.
OnStar, from General Motors, is the most widely used telematics system. It delivers safety and roadside assistance services. Telematics systems can also found in cars like BMW, Jaguar, Mercedes-Benz and Lexus. In the future, telematics may be in less expensive cars. Ford has teamed up with Qualcomm to put a new system called WingCast in certain 2002 models, and a company called Clarion also offers systems.

How much do these systems cost? Some systems come with more expensive cars (like the 7 series BMW), other services cost between $15 and $20 a month. The more features, the higher the cost.