Telematics Service Market Likely To Get On Track


With the forthcoming production of cars installed with telematics receivers by Ssangyong Motor, the markets for both telematics systems and service are expected to get on track this year.

Ssangyong Motor plans to start manufacturing cars installed with a telematics receiver next month, the first of its kind in Korea, facilitating expansion of telematics service from traffic information to cultural and entertainment content service. Hyundai Autonet developed the new telematics receiver for the automotive maker.

Along with shipment of new cars installed with telematics receivers, Inner Cube, a spin-off from Ssangyang Information & Communication, intends to launch telematics service, dubbed ‘Ever Way’, over wireless communication networks of KTF, in the first quarter of this year.

Wireless communication carriers and car insurance companies such as SK Telecom, KTF and Samsung Fire & Car Insurance kicked off telematics services several years ago, using mobile phones and PDAs, and Hyundai Kia Motor first rolled out telematics service ‘Mozen’ in the automobile industry in 2003.

Telematics service market, however, has seen slow growth due mainly to lack of content. According to a recent survey by the Ministry of Information and Communication, the number of telematics service users reached 270,000 as of the end of last year, and 15% of them are assumed to be subscribers to ‘Mozen’ service.

The information ministry forecasts that the number of cars installed with telematics gear will increase to 4 million units by 2007, expanding the entire telematics-related industry market to 3.5 trillion won (approximately 3.33 billion dollars).

As part of its strategy to boost telematics industry, the ministry plans to invest 85 billion won into development of technologies and implementation of pilot projects this year, including pilot service in Jeju Province.

In cooperation with the National Police Agency and the Ministry of Construction and Transportation, the MIC also intends to build an integrated transportation information database.


- Source from Korea IT Times (Jan 18, 2005) -