Mobile Network Operator strategies for the connected car

23 February 2017
Report type: Strategy Report
Author(s): Godfrey Chua, Pierce Owen - Analyst
Keywords: IoT, Internet of Things, M2M, machine-to-machine, mobile network operators, MNO, original equipment manufacturers, OEMs, vehicle platforms, applications, security, analytics, ecosystems, connectivity, connected cars, autonomy, autonomous cars, embedded, aftermarket, fleet management, projected mode, stolen vehicle recovery, SVR, eCall, roadside assistance, navigation, usage-based insurance, UBI, Wi-Fi hotspots, lease, rental, diagnostics, LTE, 5G, SIM, eSIM, eIUCC, B2B, B2C, cloud, V2X, V2V, V2I, LPWA, OBD2, split billing
Companies: Vodafone, AT&T, General Motors, Volkswagen, Deutsche Telekom, Orange, Telefónica, Telenor, Telia Company, Verizon, Apple, Google, Tesla, Springworks, Zubie, TEXA, BMW, Daimler, Mahindra Reva, Porsche, Renault, Nissan, Volvo, Fiat Chrysler Automobiles (FCA), Ford, Hyundai/Kia, Jaguar Land Rover (JLR), Subaru, Etisalat, Toyota, Accenture, Amdocs, Audiovox, Ericsson, iHeartRadio, Jasper, LG, QuickPlay Media, Qualcomm, Red Band, Samsung, Synchronoss, TCS, VoiceBox, ZTE, SiriusXM, Sprint, Continental, Delphi, G&D, Deutsche Bahn, GSMA, Gemalto, PSA Groupe, GEFCO, Dacom, Cotecna, Atos Worldwide, Generali, Geotab, America Móvil, KPN, NTT DoCoMo, Rogers, SingTel, Telstra, Vimpelcom, Avea, Bouygues, China Unicom, Vivo, Securitas, Octo Telematics, MyDrive, Koenigsegg, Trafficmaster, Autocom, Accessor Sweden, RenoNorden, Tieto, Ducati, Ferrari, Gruppo Piaggio, McLaren, TDC Denmark, SFR, MTS, China Mobile, Datora Telecom
Number of Pages: 42

The connected car is one of the most important segments of the Internet of Things.In this report we have analyzed the strategies of major mobile network operators (MNOs) related to the connected car. Examining the connected car capabilities of these leading MNOs can act as a guide to potential OEMs and other customers on which MNOs to shortlist in RFP processes. OEMs looking to implement IoT will frequently be both implementing a complex solution for which they need expert help and making a long-term commitment. They require a high degree of certainty that they are making the right choice of MNO. Secondly, MNOs are constantly on the look-out for best practice in this developing market. Examining the capabilities of competitors is a good way to highlight areas for improvement.

The purpose of this report is to give Machina Research’s view on the likely long-term success of Mobile Network Operators in the IoT market in terms of generating profit from connected car contracts services. The focus is squarely on the expectation for future, rather than historic, success (although the latter may be an indicator of a predisposition to the former).

The MNOs included in this report are: AT&T, Deutsche Telekom, Orange, Telefónica, Telenor, Telia Company, Verizon and Vodafone. With these companies we cover the biggest global carriers as well as the most prominent regional players with a focus on connected cars for consumers.

Machina Research analyzed the MNOs on three criteria:

  • Partnerships and OEM contracts – The focus here is on partnerships that have brought products to market and connectivity directly to consumer cars. Not all OEM contracts are included because not all have been made public.
  • Offering and capabilities – The software platform(s) and variety of processes that the MNO uses for supporting its connected car connections. Platform choices will often have implications for the efficiency with which an OEM can address the IoT opportunity, in the provisioning and connection management process.
  • Place – Where the MNO is well placed to provide services. This includes analysis of geographical footprint as well as horizontal partnerships with other MNOs in non-footprint markets. In the latter case, focus is given to the ability to provide an end-to-end service. It should be noted that a MNO’s ability to generate profit from an IoT connection will be greater if that connection is supported via its own facilities-based footprint rather than through roaming agreements.

The MNO connected car profiles section discusses some of the interesting features about the MNOs in each of the categories. It should be noted that Machina Research tracks the activities of all MNOs in the IoT market. Further analysis of MNOs can also be found in our IoT Strategies and M2M Strategies Streams, as well as in the various Research Notes that are published.

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