Airbiquity Scores Telematics Win in Automotive Space
By Joni Morse (jmorse@crain.com)
Oct 20, 2006
Seattle-based software developer
Airbiquity recently cemented its relationship with Continental
Automotive Systems' telematics unit, which develops and markets
embedded telematics and hands-free communications systems using
Bluetooth technology.
The heart of Airbiquity's offerings
is its in-band modem technology that transmits telematics data like
crash notifications or engine diagnostics via a cellular analog or
digital voice channel, as opposed to a data channel. Put another
way, aqLink software enables the transport of wireless data over the
voice channel of any existing wireless network in an embedded or
Bluetooth hands-free telematics communication system during a voice
conversation. The aqLink technology facilitates transmission of data
such as a vehicle's location, airbag notifications and remote
diagnostics information.
The firm's software is embedded
into equipment made by Continental, which sells its gear to General
Motors' OnStar automotive communication systems division.
Continental claims that its telematics and hands-free systems are
already included in more than 12 million cars on the road today.
Upon signing a global licensing
agreement with Continental, Kamyar Moinzadeh, president and chief
executive officer of Airbiquity, said the deal allows his firm to
increase its sales in North America, Europe and Asia. Airbiquity has
been involved with OnStar through Continental's products since 2003,
and although Airbiquity's success to date has been largely tied to
the rise of GM's OnStar system, the firm says it expects to announce
a deal with another major car-maker by the end of the year.
"Telematics plays an important role
in our efforts to integrate embedded or hands-free, in-vehicle
wireless communication systems into our Active Passive Integration
Approach, which focuses on creating cars that avoid crashes, prevent
injuries and provide immediate assistance if a crash proves
unavoidable," said Karl-Thomas Neumann, president of Continental
Automotive Systems. "The significance of the ability to transmit
real-time data over the voice channel cannot be overstated, which is
why the aqLink product is a critical step toward implementing our
strategy in vehicles made by world-class manufacturers we serve."
Continental's decision to move
forward with aqLink comes on the heels of an announcement that the
European Union is favoring the software as a its preferred solution
for the mandated eCall crash notification system. Initially founded
by former Nextel Communications Inc. executives to provide an E-911
solution for handsets, Airbiquity developers decided against
migrating data transmissions to carrier's third-generation networks,
opting instead to utilize the carriers' voice channels, thus driving
incremental revenue for the carriers by running data in the
available "gaps and seams" of untouched network capacity.
"Billions of dollars have been
invested in voice networks, the primary revenue driver for
carriers," commented Moinzadeh. "But data networks don't necessarily
meet the all the emergency requirements. They are not at a point
where they offer consistent service, and the roaming agreements have
yet to be worked out. With voice, the roaming agreements are already
there. And OEM's are interested in technology that lasts, that has
longevity. Voice networks have not changed. When an OEM embeds
technology, they want it to last 6 to 8 years.
"Data networks are great for downloading data, but voice is still
the critical applications for carriers. Voice networks are still the
safety-net."
However, the firm's use of the analog voice channel may be limited
as major carriers are looking to discontinue analog service.
Moinzadeh divulged that Airbiquity
has been cash-flow positive for the last 18 months and indicated
that the firm is actively looking beyond the automotive industry for
future growth, as the company is talking to everyone, from Homeland
Security officials to portable navigation developers.
"Of course, the ultimate portable
navigation device is the handset," said Moinzadeh.
But for now, Airbiquity seems happy
to harvest deals in the automotive market.
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