A CONNECTED CAR GENERATES 10 TIMES THE REVENUES OF A TRADITIONAL CAR

KPMG has published its 2017 Global Automotive executive survey.

– 76% of executives with the world’s leading automotive companies say one connected car generates more revenue streams than 10 conventional cars.

–  80% of executives in the KPMG study agree that data will be the fuel for future business models.

However, automotive executives should carefully think through the consequences of this shift of business model brought by the explosion of data exchanged in the cloud. When cellular data transfer amounted to several MB per car per month, the cellular cost incurred was marginal, and cellular wholesale tariff was not a major concern for OEM.

The explosion of data has become real, especially with the quick development of popular 4G WIFI hotspots. General Motors reported that data traffic of its OnStar services increased twofold in 2016 compared to 2015.

As connected services become the major revenue trend for OEM, data traffic cost becomes the paramount driver for OEM to survive and thrive. OEM can not build on the existing wholesale arrangements with Mobile Operators. They should reinvent their business model by taking a firm leadership role based on a long term telecom strategic vision. This should secure a cost effective solution for OEM to master.

We at MVNO Global recommend an automotive dedicated Full Mobile Virtual Network Operator (Full-MVNO), where the OEM operates its own core mobile network.

The full MVNO model also enables:

–              Independence from mobile operators

–              Enhanced access security

–              Data privacy

–              Direct relations with end customers

–              Better network coverage

–              Own LTE core network with multi-IMSI & eUICC technology

–              Avoiding data routed through third parties

–              Avoiding permanent roaming solution

We could further discuss the Full MVNO model directly if you attend the World Mobile Congress in Barcelona at the end of February 2017. Please contact us: [email protected] to schedule a meeting.

Georges-Harald Bernard

Eric Aroule

MVNO Global

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