Telematics could be key for US telcos – just don’t get distracted

Autonomous smart car

ABI Research has pointed to statistics claiming 68.5% of cellular connected M2M devices are telematics or broader transport applications, but telcos need to laser focus to reap the rewards of this window.

The connected car is without a doubt an opportunity for the telcos, but ABI has warned the fortunes might be missed if they get distracted by other technologies. This is a genuine opportunity for the telcos, though ABI has cited new LPWA technologies that are being positioned as a competitor to cellular, increased interest in private network opportunities, and the on-going debate on the merits of licensed and unlicensed spectrum, as distractions which could erode margins.

“Some of the biggest opportunities and drivers for cellular operators are in telematics and asset tracking; coverage and low latency are the essential requirements for these fast-growing segments,” said Kevin McDermott, Principal Analyst at ABI.