Boston, MA - 5 June 2007 - According to a recent Insight, European eCall: Conflicting Objectives Hold Back Progress, Strategy Analytics believes that the adoption of eCall across Europe, and the potential for revenue generating infotainment services leveraged from it continues to be held back by contradictory objectives of the regulators versus those of automotive and wireless companies. The eCall service will automatically contact the emergency services in the event of airbag activation.

The European Commission plan for mandatory eCall installation in new vehicles starting in 2010 still faces a lack of commitment from EU countries and automotive OEMs. Italy has done little to actually support or help develop the system, despite being the first to sign the Memorandum of Understanding (MoU). The UK is reluctant to commit following a negative reaction to the proposed road pricing scheme. France is pushing for a system based on an existing service offered by PSA Peugeot Citroën. However, the EC believes that Germany, seen as an opinion influencer, will sign the MoU soon, acting as a catalyst for other outstanding signatories. The European Automobile Manufacturers' Association (ACEA) was an early eCall supporter, signing the MoU in 2004, but it will not offer any further support until all member states have committed. Once launched, an eCall service will have a significant impact on the European telematics market, helping to create a telematics install base of six million users by 2012, generating over one billion euros ($1.4B) of service revenues.

"European cellular operators have done the bare minimum necessary to comply with the EC's plans, because a pan-European eCall service offers them little in the way of revenue potential", says Insight author, Clare Hughes, Global Automotive Practice. "Finding a balance between the need for a low cost, standardized system that can be implemented quickly yet building flexibility so telematics service revenue can be generated longer term is critical".