Driverless cars need the internet to run, or to be deemed “smart,” and Verizon Communications wants to be the leader over the wave of the driving future—autonomous cars.
Motor City-based publication, The Detroit News reported that telematics is a “combination of telecommunications, vehicular technologies and real-time wireless data that are central to connected cars and self-driving vehicles,” and Verizon is on the forefront of the revolution. CEO of Verizon Telematics Inc., Andres Irlando, told The Detroit News that there is a lot to be determined when it comes to the future of autonomous vehicles, “but the collection of assets that we have and we’re building will absolutely make us a player in that space.”
In an effort to be a leader in in-vehicle software and applications, Verizon has begun the acquisition of Ireland-based Fleetmatics Group PLC for $2.4 billion and Telogis Inc. Both companies “offer services for managing and operating vehicle fleets, which many believe to be the gateway for acceptance of self-driving cars,” according to the paper. Once the Telogis deal closes in the fourth quarter, Verizon will control about 25 percent of the telematics market and become the worldwide leader, according to telematics research company C.J. Driscoll & Associates.
The Detroit News reported that Fleetmatics “provides operators of truck and delivery fleets with information on vehicle location, fuel usage, speed and miles driven,” while Telogis “is a cloud-based software firm specializing in connected vehicles and managing mobile devices and wireless networks.”
Experts predict the telematics field to grow to more than 14 million GPS/wireless devices managing vehicle fleets by 2019, amounting to hardware and service revenue of almost $4.7 billion, according to Driscoll. This is a far cry from Verizon’s beginnings with OnStar service to General Motors Co. in 1996. It has also manufactured Hum since 1996, an “aftermarket tool compatible with most vehicles … that can be used with a smartphone app to provide connected-car technology such as vehicle diagnostics, location-based services, and roadside and emergency assistance,” The Detroit News noted.
Irlando told the paper regarding Hum, “it’s the only product on the market that enables any vehicle to become a smart car—even if it wasn’t built with smart-car technologies and it provides the most modern roadside assistance technologies together.” While Verizon may be the leader in telematics, Driscoll said the field has room for any telecommunications competitors or automakers to enter the space.
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