The Connected Car: implementation strategy for OEMs

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M2M paper recently published an article where I aim to highlight that the automotive industry has to develop an independent strategy for the Connected Car in front of the big technology companies . Those big technology companies want to be in the driving seat. I propose a very secured solution enabling car manufacturer to keep the customer relationship, to prevent the sharing of users’ data with third parties and to provide adaptability of the services during the lifespan of the car. And that can be implemented quickly.

m2m1 - The Connected Car: implementation strategy for OEMs

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The Connected Car: implementation strategy for OEMs

The Connected Car is a buzz word part of almost any announcements from OEMs. The business models developed up to now for cars have been either B to B to C whole selling models, whereby car manufacturers were reselling mobile operators services. Recent discussions are focused on whether or not allowing High Tech companies such as Google or Apple to sit in the middle.

However the Connected Car implementation is often very much irresolute. Indeed car makers face key challenges. Any solution should address the following issues:

–          Security of access to the car is of outmost importance- the connection access to the car should be fully secured, in order to avoid a hacker to suppress brakes remotely for instance.

–          Confidentiality and use of driver and car personal  data: the OEM shall control the use of personal data, and should be in the position to decide whether or not to monetize them.

–          Exclusive relationship with the driver allowing loyalty to the brand and new fields of related services

–          Seamless continental coverage, especially in Europe cut in 50 independent states and far more national mobile networks.

–          Long term sustainability of the implemented connected solutions as the life span of a vehicle could be beyond 15 years, despite technology evolution and telecom providers own strategies.

OEM should start from these basic requirements to build a telecom solution for the connected car.

I trust a full 4G MVNO (Mobile Virtual Network Operator) approach- an MVNO with its own core network- dedicated to the automotive segment is a solution that addresses the concerns of OEM listed above:

–          Security of access: a dedicated MVNO with its own core network allows:

  • to confine automotive traffic to a dedicated core network
  • to protect traffic with a core network with IP Multimedia Subsystem (IMS) architecture allowing enhanced control of communications.

–          Personal data: enhanced by IMS, the routing of all traffic is funneled only through the MVNO core network, bypassing the host mobile operator own core network. Thus personal data are fully under the responsibility of the automotive MVNO.

–          Relationship with the driver: the automotive MVNO is the natural arm of the OEM to establish and harvest the relationship with its client, the driver on the long term.

–          Continental seamless coverage:

  • Through its core network, the full MVNO generates its own services provided seamlessly through interconnecting with multiple host mobile operator across the continent.
  • The full MVNO is able to interconnect with several mobile host operators in a single market to get the best coverage, even better than the one provided by the most widespread mobile operator in a said country.

–          Long term sustainability of the connected car solution:

  • The full MVNO fully master its own SIM cards, therefore does not depend on third party mobile operators.
  • If a mobile host partner decides to stop a certain technology, the MVNO can then hook to another mobile host operator which would still operate such a technology.
  • The IMS architecture separates the application layer from the telecom access layer. Therefore the same applications would be available with 4G accesses and future 5G accesses too (at the 2025 horizon).
  • The full MVNO is able to migrate from one host network to another one at any time, thus is able to renegotiate the economic terms of the host operator if they are not fair.

The automotive full MVNO concept allows OEM to keep overall accountability for services rendered to the car user.

The OEM will have to assess strategically their positioning on the service delivery value chain and the best business model for them to keep the long term relationships with their customers and ensure highly secured services provision and easy innovation. And in doing so, it should consider the automotive full MVNO option.


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