The recent European agreement between Telefónica and Tesla further demonstrates the continuing growth of the connected car market. The agreement, which will enable connectivity for Tesla’s in-car infotainment telematics and remote vehicle diagnostics, will be implemented in several countries across Europe. Telefónica will provide connectivity for the Model S in Germany, to the UK on O2 and in Spain on Movistar.
Tesla is one of many car manufacturers that has recognised that the connected car will achieve mass-market penetration in a matter of years. The GSMA’s Connected Car Forecast has determined that globally, this market is expected to more than double in value by 2018 to €39 billion.
Growth is being accelerated partly by initiatives such as eCall, which is to be implemented in EU member states in the near future. The regulation stipulates that every new car must include the eCall device, which automatically dials an emergency number when it detects a serious accident. Features such as In-car navigation services, remote diagnostics, emergency call services and connected infotainment, will all be provided by Telefónica for the Tesla Model S.
Telefónica’s global M2M solution – powered by Jasper – will enable remote vehicle diagnostics that communicate information about the Tesla car’s safety, security and performance in real time. The car’s infotainment will include internet browsing and online music, two key features which are fuelling consumer demand. According to the GSMA’s forecast, the number of cars sold supporting these features will increase over sixfold to 32.1 million over the same period.
Telefónica’s latest move strengthens its position in the automotive sector, where they have established several partnerships over recent years. In 2012 Telefónica reached an agreement with OnStar, specialists in advanced data transmission technology, to provide M2M connectivity for General Motor’s vehicles.
In October, Telefónica agreed to use Zubie, another connected car service, in Brazil from mid-2015 onwards. Brazil, like many other Latin American territories, is a country where Telefónica already has direct M2M capabilities. Legislation similar to eCall, namely the Denatran 245 mandate or SIMRAV (“Sistema Integrado de Monitoramento e Registro Automático de Veículos), will facilitate the growth of the connected car market in Brazil in the coming years, and will further incentivise operators to enter into strategic partnerships in the automotive sector.
See also:
Telefónica Connected Car Report 2013