GM and Verizon are the Early
Leaders but Competition is intensifying
Boston, MA - December
4, 2012
– According to the Strategy Analytics Automotive Multimedia and Communications (AMCS)
report, Monetizing
Telematics Service Revenues, revenues from services is just one benefit
OEMs achieve with telematics. John
Canali, Senior Analyst with Strategy Analytics, said, “OEMs can not only create
recurring revenues, but also reduce costs, and increase consumer
satisfaction. Revenues from services
are important but just one of many drivers behind the growing number of OEMs
launching telematics solutions.”
Richard Robinson, Director of Strategy Analytics Automotive
Multimedia and Communications, said, “As more OEMs come to market with
solutions, we expect a number of different business models to emerge. Verizon’s acquisition of Hughes Telematics
may prove highly disruptive as the role of the carrier may change”. Robinson
continued, “ While charging an annual service fee is currently the most popular
business model, OEMs, carriers, and content providers should explore how to
maximize the benefit of a connected car.”