Telekom Austria has announced a partnership with Porsche Holding Salzburg in order to provide a broader solution set in the telematics arena. The machine-to-machine space isn’t new for Telekom Austria, which created a separate division to focus on M2M more than four years ago.
Early last fall I covered Vodafone and Telefónica’s moves into a telematics solution that included hardware through an acquisition and a partnership. As more mobile network operators move down this path, I think we can see a trend appearing. It shouldn’t be too surprising that the MNOs want to increase the value they provide and solidify their footprint in the connected car. Telekom Austria already offers a fleet management solution, so it’s obvious they want to continue to build it with a way to address both new and existing vehicles.
You may not be familiar with Porsche Holding, it isn’t just about Porsche. It works with all of the brands within the Volkswagen Group. This includes Audi, SEAT, ŠKODA, Porsche, Bentley, Lamborghini and Bugatti. Also involved in the solution is AMV Networks, the manufacturer and supplier of the DiBox telematics device, a small digital box that is integrated into the vehicle and allows the driver/owner to gather information about the vehicle via a smartphone. This information could also be shard in fleet scenarios and insurance programs with the driver’s advance approval. The DiBox connects via a soft gateway that allows for future app development on this platform. which keeps data private unless the owner agrees to share it.
While this might not sound very different from other alternatives in the market, let’s take a look at why it is. With the DiBox, there are a couple of key topics to consider. First, the box is directly connected to the electronics of the vehicle, unlike an OBD port after-market solution, and integrates directly with the car electronics via D-Bus protocol. In addition, it is the only system with Europrise, European Privacy Seal, approval. Another pro for anyone who is concerned about their private data staying private in the connected car.
Regarding the relationship with Porsche Holding: By connecting directly to the car electronics, the risk of invalidating the warranty if not provisioned by an approved facility is high. But with its network of approved body shops there isn’t any reason to be concerned about that. Its network of dealerships also provides the marketing outlet for the service for a flat annual fee. Today there is an electronic driver log add-on available with more options expected in the future, allowing for distribution via new models and after-market installations.
Telekom Austria is providing the SIM for usage across Europe and enabling the back-office billing support. The solution is currently available in Austria for new vehicles, but second-quarter expansion is expected in the after-market, with additional European geographies in the next phase.
If you think of Austria in overall size, it might not sound like that big an opportunity until you look at the cars that are being driven there. According to Statistik Austria, 60% of cars registered in 2014 were one of the models supported by Porsche Holding. This translates to a target market of more than 53,000 cars, not to mention all the cars that were already on the road before last year. Sounds like a pretty good opportunity to me.
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Claudia Bacco, Managing Director – EMEA for RCR Wireless News, has spent her entire career in telecom, IT and security. Having experience as an operator, software and hardware vendor and as a well-known industry analyst, she has many opinions on the market. She’ll be sharing those opinions along with ongoing trend analysis for RCR Wireless News.
