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GPS/GSM Based Tolling Opportunities Expanding
GPS/GSM Based Tolling Opportunities to Increase Five Fold
Boston, MA - September 14, 2010 – Automotive tolls based on GPS/GSM systems could increase based on the growing numbers of vehicles featuring OEM-installed telematics hardware. However, according to the Strategy Analytics report, “GPS/GSM Based Tolling: Still Waiting at the Gates,” a number of factors, most notably a lack of government expenditure, will inhibit adoption.
“While the potential is great and despite the growth of eCall-based telematics solutions, GPS/GSM-based tolling opportunities are unlikely to be realized,” according to Richard Robinson, Director of Strategy Analytics’ Automotive Multimedia and Communications Practice. “While efficiencies could be gained, governments will be hesitant to make the necessary infrastructure investments in a time when economies are only slowly recovering.”
John Canali, Analyst with Strategy Analytics, states “GPS/GSM-based tolling could be the wave of the future but the current climate is not right. As engine technology becomes increasingly more efficient, falling revenues from gas taxes will create government shortfalls for road repairs. More time is needed for governments to strategically plan and implement GPS/GSM based tolling. Until then, working toward a more harmonized model based on DSRC (used in windshield devices) is likely the answer.”
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