Embedding SIMs in the car is often viewed as 'Old Telematics', reflecting a troubled history of vehicle manufacturers deploying overly-expensive systems and services that customers in most markets have proved unwilling to pay for. Much of the attention over the last 5 years has therefore shifted towards 'Brought-in' strategies that rely on the driver's smartphone for connectivity, which many within the automotive industry view as the only logical future for connected car services.
SBD's latest report, The impact of changing M2M strategies on the Connected Car, presents an alternative long-term vision in which major changes within the telecoms industry could lead to embedded SIMs becoming the predominant communication method for all connected car services. In fact, by 2025 SBD forecasts that 'Brought-in' strategies could become increasingly obsolete as every car is sold with an embedded SIM, facilitated by government mandates, new pricing models and a growing reliance on Cloud-based content and services. The figure below summarises the key trends that could enable this vision.
SBD's vision for
embedded SIMs relies on the telecoms industry embracing radical changes
to their M2M business and revenue-streams. Despite the necessity for
these changes, many telecom operators are so far reluctant to
pre-emptively risk their existing M2M revenues in order to help turn
embedded SIMs into a mass-market success. For this reason SBD strongly
recommends that the automotive industry step in to help find a win-win
solution to the embedded SIM challenge. In addition to highlighting all
of the key trends relating to embedded SIMs, this report provides a
series of recommendations that will help bridge the gap between the
needs of the automotive industry and those of the telecom industry.
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