Airbiquity link highlights Ford's telematics strategy
Automotive Engineering Online
by Terry Costlow
May 7, 2008

The 911 Assist software Ford tied to its Sync voice-recognition software early this year highlights a strategy for telematics, one that relies on the user's phone, not one built into the vehicle. The move is also a coup for Airbiquity, the company that provides the link between the data and cellular voice channel.

Ford is avoiding the cost of an embedded phone as well as a CPU dedicated to emergency system software. Those savings will be leveraged as more telematics features are added to Sync.

"We add our software to the same processor that runs Sync software," said David Jumpa, Vice President of Global Business Development at Airbiquity. "A lot of services like sending a vehicle health report or calling when the airbag goes off will occur when voice recognition is not needed." The 911 Assist system will use drivers' Bluetooth phones to access cellular networks, he noted. Airbiquity's software makes it possible to send data over voice channels. While using Bluetooth limits the service to users who have compatible phones, it eliminates the hardware that is required by embedded phone systems such as General Motors' OnStar technology.

"OEMs are taking two approaches, embedding the technology like OnStar and BMW or taking the Bluetooth route like Ford," said Kamyar Moinzadeh, Airbiquity's CEO. "Our value proposition works with either approach."

For other companies, the embedded or imported choice is a critical strategic decision. Embedding a phone provides the highest level of reliability. But relying on the consumer's cell phone frees automakers from adding anything beyond Bluetooth connectivity.

Thilo Koslowski, Telematics Analyst at Gartner, noted that "Ford is leveraging the Podcast: "SAE Eye on Engineering" consumer's subscription to a phone plan rather than leveraging an installed phone. An embedded phone provides the highest level of insurance, since there's no chance you'll leave it at home. The question is how many consumers will duplicate the cost for this phone to gain that level of insurance."

GM shows no signs of removing its built-in phones. Late last year, OnStar extended its agreement with Airbiquity, continuing a linkup that has existed since 2003. OnStar subscribers use Airbiquity to transmit data for functions including vehicle diagnostics, turn-by-turn navigation, airbag notification, remote door unlock, and stolen-vehicle notification.

Though embedded phones are well entrenched, Bluetooth makes it possible for drivers to have the latest technology in their car, as well as letting them use functions they have
customized on their phones. "We see Bluetooth as offering one of the biggest value propositions for the auto industry," Jumpa said.

Providing flexibility for telematics is a key aspect for the expansion of this technology. Consumers are likely to want different types of services, and most want to be able to
change suppliers as pricing and their personal needs change.

"Companies and customers can select the services they want," Jumpa said. "If they want nav traffic, they can go to a supplier that provides the type of service they need."

There are signs that service providers are preparing to give consumers an array of options. At the Consumer Electronics Show early this year, a significant number of the 280 auto-related exhibitors described services providing navigation augmented with point-of-interest and real-time-traffic information.

Providing this type of freedom for consumers is a key aspect of many telematics strategies. BMW recently offered a standard, Next Generation Telematics Protocol, which makes it simpler for service providers to send information to any vehicle. That standard doesn't reduce the need for technologies like Airbiquity's.

"We have the same vision," Moinzadeh said. "What BMW's standard provides is complementary, not competitive." He noted that BMW became a partner in 2007 using Airbiquity's data-over-voice channel technology in North America.