Finding the best connectivity solution to support your telematics business model...

Many vehicle manufacturers are currently planning which connectivity solutions to adopt for their next generation infotainment and navigation platforms. This choice is complicated by two factors; infotainment and connected navigation services have very different data requirements and usage profiles compared to more traditional safety and security services, while advances in the telecommunications industry have led to an increasing number of viable connectivity solutions to choose from.

This report assists manufacturers and suppliers caught up in this ‘connectivity conundrum’ by identifying and analysing the potential solutions for enabling telematics connectivity where the intelligence is retained in the embedded vehicle system (smartphone integration is excluded). An overview of each solution is supplemented by the positives and negatives of each approach. Considering the strengths and weaknesses of each solution, the report concludes with a balanced perspective on which are the most suitable connectivity options for premium and volume vehicle manufacturers – some of which may be surprising.

For additional information please email jappleby@sbd.co.uk or telephone Juanita on +44 (0) 1908 305101 and she will be happy to deal with your enquiry.

Embedded versus BluetoothEmbedded versus Bluetooth

Solving the connectivity Solving the connectivity conundrum...conundrum...

SBD Telematics and ITS researchSBD Telematics and ITS research

This report will help you:

Align your telematics services with an appropriate connectivity solution

Avoid risks associated with brought-in connectivity and network operator restrictions

Develop a flexible business model with flexible connectivity solutions

Learn what factors are preventing widespread adoption of some connectivity solutions in the car

Evaluating the connectivity options for telematics

Built-in: Embedded modem and SIM

Hybrid: Embedded modem, customer SIM

Brought-in: Bluetooth link to customer phone

Brought-in: Plug-in modem

Brought-in: Wired link to customer phone

Advantages DisadvantagesCommunications not reliant on external devices Relatively high system costs

Works ‘out of the box’ without user setup Risk that embedded modem may become obsolete

Suitable for all types of services (including security) Increased implementation time

No compatibility / interoperability / tethering issues For OEMs that cover the ongoing communications costs there is reduced flexibility in the business modelOEM can specify modem according to needs

Overview

Bluetooth SAP

Advantages DisadvantagesRobust comms channel (vehicle modem and antenna) BT SAP not fully supported even in newer phones

Ongoing communications charges passed to end user Cannot be used for security-related services

Greater flexibility for OEM business model Not a global solution (US market has SIM-less CDMA)

Improved battery life for user’s phone Limited cost saving compared to embedded solution

OEM does not have to build relationship with MNO Risk that embedded modem may become obsolete

Advantages DisadvantagesRobust comms channel (vehicle modem and antenna) Not suited for security-related services such as SVT

Ongoing communications charges passed to end user Not a global solution (US market has SIM-less CDMA)

Greater flexibility for OEM business model Limited cost saving compared to embedded solution

Reliable connection to SIM (not wireless link) Only realistic use scenario is for user to get an additional SIM card, but this is inconvenient and may be costlyOEM does not have to build relationship with MNO

SIM slot

Overview

Advantages DisadvantagesTCU cost reduced (no modem or SIM) Not suitable for security-related services

Ongoing communications charges passed to end user Comms reliant on quality & performance of device

Greater flexibility for OEM business model Antenna reception worse than embedded solution

Avoids Bluetooth profile implementation issues Modem likely to be OEM-specific with OEM software

Independent of phone; voice calls possible at same time Visually unattractive solution

Advantages DisadvantagesTCU cost reduced (no modem or SIM) Communications reliant on the user’s mobile phone

Ongoing communications charges passed to end user Not suitable for security-related services

Greater flexibility for OEM business model User may have to pay high charges for data use

Avoids Bluetooth profile implementation issues Potential connector longevity concerns

User’s phone can be charged whilst in use TCU software must interface with different mobiles

Overview

Advantages DisadvantagesBT HFP is widely supported; no MNO tethering issues Communications reliant on the user’s mobile phone

Use of DOV means users only charged for voice calls Data transfer very slow – unsuitable for some services

TCU cost reduced (no modem or SIM) Not suitable for security-related services

Ongoing communications charges passed to end user Bluetooth connections not as reliable as a wired link

Greater flexibility for OEM business model DOV likely to require proprietary tech (license fee?)

Bluetooth HFP

SIMInternal

ModemInternal

SIMExternal

ModemInternal

Data rateHigh

Data rateHigh

SIMExternal

ModemInternal

Data rateHigh

SIMExternal

ModemExternal

Data rateHigh

SIMExternal

ModemExternal

Data rateLow (SMS)

Advantages DisadvantagesUse of SMS means users do not face high usage costs BT MAP very recent; few phones support this profile yet

TCU cost reduced (no modem or SIM) Potential risk of interoperability issues

Ongoing communications charges passed to end user Communications reliant on user’s mobile phone

Greater flexibility for OEM business model Not suitable for security-related services

OEM does not have to build relationship with MNO Risk of communications latency due to SMS delivery

Bluetooth MAP

SIMExternal

ModemExternal

Data rateLow (DOV)

SIMExternal

ModemExternal

Data rateHigh

Bluetooth SPP

Advantages DisadvantagesProvides access to high speed data connection Communications reliant on the user’s mobile phone

BT SPP widely supported amongst newer phones Not suitable for security-related services

TCU cost reduced (no modem or SIM) User may have to pay very high charges for data use

Ongoing communications charges passed to end user User must download a specific app to their phone

Currently, BT SPP avoids MNO tethering restrictions Additional solution required for non-smartphones

SIMExternal

ModemExternal

Data rateHigh

Bluetooth DUN/PAN SIMExternal

ModemExternal

Data rateHigh

Advantages DisadvantagesProvides access to high speed data connection Support for DUN/PAN not universal for older phones

TCU cost reduced (no modem or SIM) Use may be prohibited by the user’s MNO (‘tethering’)

Ongoing communications charges passed to end user Communications reliant on the user’s mobile phone

Greater flexibility for OEM business model User may have to pay very high charges for data use

OEM does not have to build relationship with MNO Not suitable for security-related services‘Hybrid’connectivity

Built-inconnectivity

Brought-inconnectivity

TABLE OF CONTENTSTABLE OF CONTENTS 1. Executive summary1. Executive summary 1.1 Introduction1.1 Introduction 1.2 601.2 60--second summary of conclusionssecond summary of conclusions 1.3 Summary of key points1.3 Summary of key points 2. Introduction2. Introduction 3. Telematics services data requirements3. Telematics services data requirements 3.1 Background3.1 Background 3.2 Analysis3.2 Analysis 3.3 Identifying the predictability of data 3.3 Identifying the predictability of data requirementsrequirements 3.3.1 Service and data usage variability3.3.1 Service and data usage variability 3.3.2 Feasibility of non3.3.2 Feasibility of non--embedded SIMembedded SIM 3.4 Identifying the need for data speed3.4 Identifying the need for data speed 3.5 Summary by service type3.5 Summary by service type 4. Connectivity options for telematics4. Connectivity options for telematics 4.1 Embedded modem and SIM4.1 Embedded modem and SIM 4.1.1 Embedded modem and SIM 4.1.1 Embedded modem and SIM -- OEM pays OEM pays for call costsfor call costs 4.1.2 Embedded modem 4.1.2 Embedded modem -- customer pays for customer pays for call costscall costs 4.2 Customer SIM with embedded modem4.2 Customer SIM with embedded modem 4.2.1 Embedded modem and customer SIM via 4.2.1 Embedded modem and customer SIM via Bluetooth SAP linkBluetooth SAP link 4.2.2 Embedded modem and customer SIM via 4.2.2 Embedded modem and customer SIM via SIM slotSIM slot 4.3 Customer SIM with wired external modem4.3 Customer SIM with wired external modem 4.3.1 Customer SIM and external plug4.3.1 Customer SIM and external plug--in in modemmodem 4.3.2 Customer SIM and external modem 4.3.2 Customer SIM and external modem -- wired link to user’s phonewired link to user’s phone 4.4 Bluetooth link to customer’s phone4.4 Bluetooth link to customer’s phone 4.4.1 External SIM and modem 4.4.1 External SIM and modem -- BT HFP link to BT HFP link to user’s phoneuser’s phone 4.4.2 External SIM and modem 4.4.2 External SIM and modem -- BT DUN/PAN BT DUN/PAN link to user’s phonelink to user’s phone

4.4.3 External SIM and modem 4.4.3 External SIM and modem -- BT SPP link to BT SPP link to user’s phoneuser’s phone 4.4.4 External SIM and modem 4.4.4 External SIM and modem -- BT MAP link to BT MAP link to user’s phoneuser’s phone 5. Identifying the optimum connectivity solutions5. Identifying the optimum connectivity solutions 5.1 Introduction5.1 Introduction 5.2 Most suitable current solutions5.2 Most suitable current solutions 5.2.1 Volume OEM connectivity solutions5.2.1 Volume OEM connectivity solutions 5.2.2 Premium OEM connectivity solutions5.2.2 Premium OEM connectivity solutions 5.3 Barriers to implementation for other connectivity 5.3 Barriers to implementation for other connectivity solutionssolutions 5.4 Other factors influencing communications 5.4 Other factors influencing communications strategiesstrategies 6. Appendix 6. Appendix -- connectivity solution rankingsconnectivity solution rankings 6.1 Volume OEM connectivity solutions6.1 Volume OEM connectivity solutions 6.2 Premium OEM connectivity solutions6.2 Premium OEM connectivity solutions LIST OF FIGURESLIST OF FIGURES Fig. 1 Fig. 1 Ongoing costs Ongoing costs -- paid by the OEM or the paid by the OEM or the customer?customer? Fig. 2Fig. 2 SBD definitions for usage and data requirements SBD definitions for usage and data requirements of of telematics servicestelematics services Fig. 3.Fig. 3. Telematics services data requirementsTelematics services data requirements Fig. 4Fig. 4 Data nad usage variability by service typeData nad usage variability by service type Fig. 5Fig. 5 NonNon--embedded SIM feasibility by service typeembedded SIM feasibility by service type Fig. 6Fig. 6 Relative data rates for different communication Relative data rates for different communication methodsmethods Fig. 7Fig. 7 Overall summary by service typeOverall summary by service type Fig. 8Fig. 8 Connectivity options for telematicsConnectivity options for telematics Fig. 9Fig. 9 Suitability of different connectivity solutionsSuitability of different connectivity solutions Fig. 10Fig. 10 Barriers to implementation for other solutionsBarriers to implementation for other solutions Fig. 11Fig. 11 Future trends which could impact connectivity Future trends which could impact connectivity strategiesstrategies Fig. 12Fig. 12 Ranking for volume OEM connectivity solutionsRanking for volume OEM connectivity solutions Fig. 13Fig. 13 Ranking for premium OEM connectivity solutionsRanking for premium OEM connectivity solutions

The SBD Mission... … to provide our customers with the knowledge, insight and understanding they need to develop class leading Telematics and Vehicle Security products and improved Cost Of Ownership performance

About the report author...

For a quotation or further information please contact Juanita Appleby on:

Email: jappleby@sbd.co.uk

Phone: +44 (0)1908 305 101

Fax: +44 (0)1908 305 106

Pricing:

Report Electronic pdf copy

2810 - Embedded versus Bluetooth - Evaluating the connectivity options for telematics

£1100/ €1400/ $1750

Paul Burnley - Senior ITS and Telematics Specialist

Paul graduated from the University of Surrey with a Masters degree in Electrical and Electronic Engineering. He has worked with a number of leading suppliers developing cutting-edge automotive electronics. His strong technical background makes him an expert in investigating the operation of in-car and off-board systems, particularly in telematics and connectivity. Paul’s research covers both mature and emerging markets and he is widely regarded as Europe’s foremost expert for tracking legislation in Brazil.