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

Article by Christian A., 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

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Now on sale in several major markets around the world including Europe, the BMW 5 Series (G30) heralds the arrival of the new seventh generation and represents a whole new...
by - February 19, 2017
Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Will there be a BMW M4 CS? Apparently, there is a Club Sport version of the BMWM4 after it was sighted in California doing a shoot for a new commercial...
by - February 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries