Avanci, a company specializing in joint licensing arrangements, announced that its Connected Vehicle Licensing Program will now bring 5G to the automotive world. Mercedes-Benz has signed on with Avanci, reports Nikkei Asia, and will be selling cars equipped with 5G capabilities in Germany starting this week. The company already works with 4G vehicle platforms, and CEO Kasim Alfalahi has stated that the move to 5G furthers its goal of providing V2X (vehicle-to-everything) technology.
“The launch of our 5G Connected Vehicle program is an important milestone for Avanci,” said Avanci SVP Laurie Fitzgerald. “We can now provide automakers with the efficient option of a single agreement, covering patented cellular technologies from dozens of organizations worldwide, to support the roll-out of 5G in connected vehicles. We appreciate the confidence and trust of all the partners who worked with us to create this new program and we are proud to make it a reality.”
According to Nikkei Asia, Avanci will be charging $29 to license each vehicle for 5G. This price apparently represents a discount for automakers who sign on before February 2024. After that date, the price is slated to jump to $32 per vehicle. By comparison, current 4G connectivity comes with a $20 per vehicle price tag.
There are 58 licensees working with Avanci, including Nokia, Ericsson, Qualcomm, Panasonic Holdings, Sony Group and Huawei Technologies in China. A growing number of automakers in Europe, Asia, and the United States have also expressed interest in including Avanci’s 5G technology in their vehicles.
“The transition from 4G technology to 5G will be unlike any prior wireless changeover,” added Roger Lanctot, Director, Automotive Connected Mobility at TechInsights. “For the first time, automakers are facing an industry transformation touching all aspects of vehicle development and sales, and car ownership. With 25 global automakers committed to deployment, prospects are bright for 5G to transform vehicle connectivity. TechInsights forecasts that the share of 5G connected vehicles will grow to over 50% of new vehicle production in five years’ time.”
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