Onboard Internet seen to raise profits for carmakers, IT and mobile phone firms

Article by Christian Andrei, on December 1, 2010

On-board Internet access is expected to be featured as a regular option in cars as technology is predicted to penetrate the masses within the next few years. This means that profits will increase for automakers and the IT and mobile phone companies.

However, many other industries, including insurers and auto clubs, seek to use new business models to take advantage of the systems' expected arrival and the large profits that could be reaped in Europe.

Horst Leonberger, manager of Deutsche Telekom's networked vehicle unit, said that studies show that drivers are prepared to spend about 10 euros a month for safety-related services and other offerings.

He said that with 350 million vehicles in Europe, the result is a multi-billion euro market “if only 10% accept these services.” Deutsche Telekom is included in the list of high profile names that include Microsoft, Google, Apple and Nokia, who want to participate in the new market.

Money can be acquired in several ways, ranging from the sale of technology that manufacturers and suppliers require, to the operation of an infrastructure, including mobile online services.

In addition, the industry is targeting the under-35 crowd, those who grew up with the Internet as well as those who want unrestricted Internet access in vehicles. [via autonews - sub. required]

Topics: technology

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