Connected Car
Come of Age
Pavan Mathew,
Head of Connected Car
Telefonica Digital
CTIA 2013, Las Vegas
May 22nd 2013
Industry wide agreement that the connected car is a big
opportunity, and a key market within M2M for operators…
Places 1bn
People 7bn
Devices 50bn
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Industry wide agreement that the connected car is a big
opportunity, and a key market within M2M for operators
Vehicles
Places 1,1bn
1bn
People 8bn
Devices 50bn
250
250 Million Vehicles registered in
Europe
VEHICLES
Estimated penetration of
Telematics
PERCENT
- Telematics Update -
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<1%
$2.3
Estimated Revenues from
Telematics Market in 2012
Billion
- Telefonica -
- European Commission -
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Everyone agrees connected car is a big opportunity, and a
main market within M2M for operators…
Vehicles 1,1bn
People 8bn
Devices 50bn
250
250 Million Vehicles registered in
Europe
VEHICLES
<1%
$2.3
Estimated penetration of
Telematics
PERCENT
- Telematics Update -
Estimated Revenues from
Telematics Market in 2012
Billion
- Telefonica Market Research-
- European Commission-
… however mass adoption and revenue has been a challenge…
2005 Forecast
30 M
VEHICLES
Telematics enabled
vehicles by 2010
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$ 41
BILLION
Current Forecast
Consumer Telematics
business by 2013
$ 11
BILLION
Global revenues will
grow up to US$11
billion in 2020.
35 M
VEHICLES
Telematics enabled
vehicles sales by 2020
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…due to challenges in business model
Cost Model
• HW cost impact
on vehicle retail
price
• Data network
roaming costs
• Multiple players in
the value chain
Standardization
• Standardize
Systems to attract
developers
• Interfaces to make
services/devices
work seamlessly
Service
customization
• Flexibility on
service/bundles
• Adapt user
experience of
digital services to
car uses case (70%
of customers are
solo drivers)
Customer
Management
• Prepare
infrastructure to
sell services
(Business process
and tools)
• Billing & invoicing
capabilities a cross
countries
• Manage customer
relationship
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Partnership between OEMs & Telcos is critical to address these challenges
Cost Model
• Telco are actively
working on cost
reduction in data
roaming costs and
SIM pricing
• Sharing revenues
is lading to new
model where risk
are share among
main stakeholders
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Standardization
• Experience in
standardization
processes &
forums
Service
customization
• Content, apps,
agreements with
content
distributors…
• Extensive
knowledge in Ux,
and digital
services & apps
business models
Customer
Management
• 1:1 customer
relationships
• Extensive
knowledge in CRM
& data mining
• Unique position to
bill & invoice
customers
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Telefonica is developing its proposition to meet the challenge
DEVELOPER ECOSYSTEM.
MANAGED CONNECTIVITY.
Offer Telefonica's developer ecosystem
to the connected car, allowing the OEM
to manage the user experience
Best in class connectivity, leveraging our
unique footprint and selected roaming
partners with one global SIM
Supported by Service
Delivery Platform
DIFFERENTIATING P&S
Bringing in advanced digital product
and services to the automotive
industry
 Advanced Data Management:
• Hosting
• Analytics




Insurance Telematics
Fleet Management
Media Content
Location Based Advertising
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Power by
FOUNDATIONAL SERVICES
Addresses forthcoming global
regulations and customer expectations
 eCAll
 bCall
 Stolen Vehicle
 Navigation
 Point of Interest
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Meeting customer and OEMs needs
theDriver
the OEM
Improved service loyalty
Increased safety & security
Feel secure on the road and vehicle
operation
Easy and practical services
Access easy-to-use navigation,
infotainment services in a safe way with a
smooth user experience
Gain insight on driver behaviour do to better target
cross-selling offers and services
Improved CRM
Support new customer interactions and vehicle
information tracking in order to develop a personalized
relationship based on drivers’ preferences and behaviors.
Quality improvement & warranty reduction
Gain insight prior to saleable vehicles & Over-the-air fixes
reduces warranty saving
Vehicle differentiation
With a Unified user experience controlled and
branded by the OEM
Unified user experience
OEM branded experience
New revenue streams
Transforming the car into a service, transforming the
service into a business opportunity
Address regulations
eCall (Mandatory in EU by 2015), Contran 245,
GLONASS, global connectivity
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OnStar & Telefonica partnership
• Single Global Supplier – Ease of Managing Project, Accountability
• Global SIM – Improved Logistics and Manufacturing Chain
• Global Project Team – Sales, Post Sales Project Management
• Legal And Regulatory – Global Cooperation
• Future Development – Long Term Relationship!!!
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& More to come
THANK YOU!
Pavan Mathew | Telefónica Digital
Head of Connected Car | M2M Global Services
Pavan.mathew@telefonica.com |
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Mob: +1 734 679 9381
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