Telematics

The original goal of the Federal Communications Commission (FCC) in 1994 was to allow users of wireless phones the same benefits of wireline customers when dialing 911--their telephone number and location would be displayed to the public safety dispatcher when the call is answered in a comm center. So the Commission set our requirements that carriers would have to provide those features by a phased-in deadline beginning in 2001.

That seemingly simple mandate--to provide the 911 caller's location--set off great debate among wireless carriers and public safety agencies about how the service would be funded on both sides, what technology would be used and how soon carriers should be required to provide the service. But it also started the wireless carriers thinking on how the location information could be put to other purely commercial uses, and to collect revenue.

Thus was born the word "telematics," which originally had European roots and meant the study of human-computer interfaces. Today, telematics refers to in-vehicle electronics that provide fee-based location and communications services. The service package usually consist of:

  • in-vehicle cellular phone that dials a customer service center, provides voice connection and transmits certain data (airbag activation signal, speed and direction of vehicle, distress signal, location, etc.) ; also capable of receiving data back from customer service center (remote door unlock, etc.)
  • on board global positioning system (GPS) receiver, linked to the wireless phone
  • customer service centers that field calls, provide services themselves or transfer emergency calls to appropriate PSAP

Ford Motor Co. first sold the concept as the RESCU system in 1996. The next year, General Motors cranked up OnStar to provide location and communications services, and as of June 2000 had about 300,000 customers--they hope to have 1 million customers by the end of 2000 and 4 million by 2003. In 1999, ATX Technologies merged with Protection One Mobile Services to form an ATX company that provides telematics services. As of Nov. 2000 they had 150,000 customers from Mercedes-Benz, Ford, Infiniti, Jaguar and Lincoln-Mercury. Lastly, in January 2001 the American Automobile Association's (AAA) new subsidiary AAAResponse will begin providing telematics services to its 42 million members and anyone else who wants to subscribe to the service.

Originally, RESCU and OnStar had small followings, mostly from owners of high-end cars who had the equipment installed at the factory, or later at the dealer. But lately both OnStar and ATX have been shaking the hands of Detroit and and Japan automakers, and signing deals to have their equipment installed in vehicles at the factory. ATX now fields calls from customers of telematics services marketed individually by Ford, Jaguar, Lincoln and Mercedes-Benz--they don't directly market their services to consumers. OnStar, on the other hand, handles calls from General Motors customers driving one of 32 models factory-equipped with telematics gear. In the coming year, additional car companies are expected to sign up with ATX or OnStar.


Now, the service center is offering a relatively small range of services: directions, roadside assistance (tow truck, gas, etc.), remote door unlock, and emergencies. In the future, they will offer more location-based services, including Yellow Page-based recommendations (closest Italian restaurant, closest theater playing "Rocky IV", etc.).

The potential revenue for telematics services is big--the Strategis Group says the U.S. market for location services could total $3.9 billion by 2004. Other analysts forecast revenus of $20 billion to $33 billion a year in Europe. That revenue includes both initial installation fees and monthly service fees. OnStar is offering most users one year of free service after they purchase a new car with the system installed at the factory. After that, it's $199 a year for the basic service and $399 for the premium service. Installation into an older vehicle is about $695.

The Issues

For public safety, there are several issues with the wide roll-out of telematics systems. Some are based on the general issues of wireless 911, while others are grounded in the way emergency calls are handled and routed by the service centers.

  • Reception -- Like any wireless device, a subscriber may not be in an area of cellular reception, which means their call--emergency or not--will not go through. Some are fearful that intense marketing by the telematics companies will give buyers a false sense of their ability to reach the service center in all parts of the country, and in all areas of a city or town.
  • Reliability -- Again, like any wireless device, a telematics system may not work all the time. The GPS unit could go on the blink or deliver an incorrect location, the cellular link may not work properly. Once the call arrives at the service center, there are possibilities the call might be dropped, lost or delayed. How will these calls be handled?
  • Routing -- Perhaps the biggest question for public safety is how emergency calls will be routed. Both OnStar and ATX have spent considerable money on creating a list of PSAPs, their contact numbers and jurisdictional boundaries. But as every dispatcher knows, sometimes a map just can't explain "who goes where." Will emergency calls be correctly routed to the handling agency in a timely way? Who is responsible for providing updates to the PSAP database, and how will it be done?
  • Handling -- Although both OnStar and ATX have taken pains to include public safety feedback into developing their call handling procedures, they are a private company handling emergency calls. Just like a municipal comm center, there are questions of service rep skill, level of training, proper procedures and liability. Perhaps only time will tell if the telematics companies have performed this part of service sufficiently. See ATX's Web page on this topic.

On the other hand, ATX points out they now handle about 1,500 total voice calls per day, and that just 40% of those (or 600) are considered "emergencies." Of those calls, only about 30 calls end up being transferred to a PSAP for handling--a very low percentage. As for ACN signals, only about 48 are received per month, and only 29 are eventually funneled to a PSAP (see chart below).

As for service, ATX says they achieve a standard of answering 90% of calls within 20 seconds, and of receiving a 3.46 satisfaction rating out of 4 from customers. ATX says they give their Response Specialists training that includes APCO-compliant curriculum.

  • Funding -- The telematics companies will receive revenues from the wireless locating technology required by the FCC, and will funnel emergency calls to the PSAPs. Yet, none of that revenue will flow back to the PSAPs for equipment or personnel to handle what presumably will be more calls than they'd receive without telematics services. The telematics companies argue that they are actually screening out non-emergency wireless calls from the PSAP, reducing their workload. The answer proably lies somewhere in the middle, but funding is still an issue with government comm centers that have no way of finding new sources of revenue.

Both the National Emergency Number Association (NENA) and the Association of Public-Safety Communications Officials (APCO) have members working with the industry to resolve these issues through the National Mayday Readiness Initiative (NMRI), or at least come to a better understanding of them. As of mid-2000, the issues haven't become critical, because there are relatively few subscribers. But, as with wireless phones in general, critical issues will arise as millions of subscribers begin to depend upon telematics devices for emergency assistance, and the types of devices and signals begin to enlarge (wearable devices, marine and aviation devices, advanced sensors for velocity, direction, door open, roll-over, etc.).

Other Resources

  • For information on in-vehicle systems, visit the OnStar and ATX Web sites, the nation's two largest companies now providing in-vehicle systems. ATX has an entire section of the Web site on their response operation. Lastly, check our personal visit to the ATX Response Center in Texas.
  • More specifically, ATX has posted their very informative quarterly newsletters on-line [1st quarter 2000] [2nd quarter 2000]
  • Also check the job openings at ATX.
  • The National Mayday Readiness Initiative (NMRI) is a group of associations and groups, including the U.S. Department of Transportation and the ComCARE Alliance, and funded in part by a grant from General Motors.In Oct. 2000 the group has released their list of recommendations on establishing standards for telematics devices, services and call handling.
  • The Intelligent Transportation Society of America (ITSA) covers all aspects of highways and mass transit, including the topic of telematics.
  • The U.S. Department of Transportation has a public safety Web page with links.
  • Mitretek on-line slide presentation on Automatic Crash Notification (ACN) systems.
  • Code-Alarm and the Automobile Club of America have announced an alliance to provide emergency and non-emergency location services.
  • An on-line article in GPS World describes the trial Mayday program in Minnesota that links to the State Patrol
  • A working group has issued a draft standard for ACN data to be transmitted as the result of a vehicle accident.