The evolving telematics ecosystem Effective delivery of connectivity-based services will require seamless integration of infrastructure by various stakeholders. The telematics ecosystem can be divided into three layers: services for end users (both vehicle-independent and vehicle-centric), the infrastructure enabling delivery of those services and the stakeholders who manage them. What are the telematics Vehicle independent services Vehicle-centric services end-services? On demand Navigation Safety and Diagnostics Vehicle-to- Other infotainment Security vehicle services* How are telematics Service delivery User interface Wireless network Customer support services delivered? infrastructure (connectivity) Automotive sector Government Telematics service Insurance sector Stakeholders provider Information technology Telecom sector Device manufacturers Others** *Other services include usage-based insurance, fleet management and payment (tolling, parking). ** Others include business process outsourcing (BPO) and roadside assistance providers. Packaging end-customer services • Bundled basics are safety and security services • Pay-per-use and “freemium” services are navigation, that will be required by law or the market, such as entertainment or similar applications that are mostly emergency call services, stolen vehicle tracking and supported by advertising or paid for with each use, basic navigation services. While their cost will be built somewhat like a pay-as-you-go mobile phone data into the vehicle’s price, stakeholders—particularly plan. In this case, the limited revenues may be shared carmakers and dealerships—will have to generate between the carmakers, content providers and returns through operational efficiencies and by telecom operators. cultivating a closer connection with the customer. There are short-term opportunities to generate • Premium subscription services are applications that subscription revenues, however only until regulations car owners are willing to pay for on a contractual basis, standardize the installation of basic blackboxes for such as access to integrated mobility solutions and safety and security services. in-car occupant health services. In this context, the carmaker may own a significant proportion of the cost and subscription revenue stream. Similarly, telecom operators can charge end customers on the basis of type and quality of connectivity opted by them.