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]

If you liked the article, share on:

Topics: technology

Comments

Recommended

More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
As BMW has already revealed, the next generation of the BMW M5 (F90) is a four-wheel drive high-performance sedan with overwhelming power output and torque at its disposal. However, it...
by - November 17, 2017
McLaren unveiled a one-off Gold - on - Black 720S at the 2017 Dubai Motor Show which will be on display throughout the entire stretch of this week’s event. The...
by - November 16, 2017
For the past several years, BMW has been working on electric mobility, or electrifying their current models. This is why the German automaker has trademarked a range of “i” nameplates...
by - November 16, 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