The Current Status of Telematics in Korea

1
The Current Status of Telematics in Korea
2005. 6. 06

• KOTBA
• Stacy Kang

2
Providing Multimedia Service for Vehicle such
as traffic information, emergency rescue, safety
driving, entertainment to drivers and passengers
Profile of Telematics
Definition
Building mutual cooperation system by
specializing their own characteristics
System Overview
Relation with Other Industries
GPS Satellite -Receiving vehicles location
Travel/ Transportation
Telematics
Wireless Internet
Making car as the 3rd digital life space
(Offering customized high quality information and
real-time service)
V-Shop

Wireless Mobile Communication
ITS
GIS
Leisure
Ensuring efficiency of traffic operation by
intelligent transportation system and improving
traffic safety environment
Utilizing various geographical information
combining factor data relating to it
Telematics Terminal
Weather
Telematics Center
Entertainment
Deliver all the services to driver by telematics
terminal with wireless mobile communication
IT Basis
Traffic Information (Driver)
Infotainment (Passenger)
Introduction to Telematics Service
Automotive Management

• Shortcut Information
• Real Time Traffic Information
• POI

• Various Multimedia Services
• Game, e-mail, VOD, Music services etc.

• Remote Diagnosis
• Emergency Rescue
• Prevention Vehicle Stealing

3
Strategies by Telematics Business Cluster
Objective and Opportunity of Business Business Strategy
New subscriber drawing Increasing ARPU Entering new business with telecommunication infrastructure build already Driving as value added service of mobile communication Information and communication service through vehicle
Selling relating information such as traffic information Business expansion and winning new enterprise Vehicle relating service by IT and automotive infrastructure Various multimedia service for driver and passenger
Strengthening automotive business by existing OEM - Reinforcement vehicle products competitiveness - Increasing CRM - Technology acquired in electronic device - Strengthening brand equity Information and communication service though vehicle Increasing safe driving service for automotive
Getting Database of automotive and Driving lifestyle Strengthening business capability relating telematics Vehicle relating service by IT and automotive infrastructure
Creating opportunity for new business Exporting system integration technology for telematics Building infrastructure based on cumulated know-how and technology
Telecom. Operator

• Convergent service of different industries
• Achieving early vitalizing and successful
  development of telematics industry thru business
  alliance

Content Provider
AutomotiveOEM
Associated Business
(Insurance, Logistics etc.)
SI
4
Strategies by Telematics Business Cluster
Top 5 Strategies by Telematics Business Cluster
for Market Share
Create business with new customers Increase market awareness of offerings Create partnership Better understand needs of market Lower costs Improve offering or develop new one Grow business with existing customers
Automotive manufacturers 1 5 2 3 4
Automotive suppliers 2 3 4 5 1
TSP 2 3 1 5 4
H/W vendors 1 2 3 4 5
S/W vendors 2 1 3 4 5
Network carriers 2 3 1 5 4
Fleet operators 2 1 4 5 3
??? Gartner G2, Q3 2003
5
Service Classification by Telematics Terminals
Safety Security Base
Navigation Base
Integrated Mobile Phone

• Embedded Type
• Voice Based Service
• Early Stage Model

• Mobile Phone Added on Type
• TbT Navigation

• Specialized in Navigation
• Telematics Function via Communication Module
  Interface

• Automobile Embedded Type
• Relatively High Price

Samsung FireMarine Insurance(Anynet)
Nate Drive, K-ways ez-Drive
Some Venture Companies
MOZEN, Everway

• Safety Security Fuction
• Remote Vehicle Control
• Stolen Vehicle Tracking

• Hands-free, Voice Communication SVC
• Messaging, E-mail Fuction

• Navigation function like searching shortcut,
  direction and etc.
• (Safety security function can be added to
  high-end car)

Main Service
Type

• Combination type with vehicle internal systems
• Able to communicate with vehicle which TCH is
  installed

• Mobile phone, PDA

• Stand-alone is prevalent
• High resolution display
• Able to use drivers mobile phone

Target Market
Before Market
After Market
After Market
Before Market
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Telematics in Korea
Characteristics of Telematics Service in Korea

• Business leader Mainly serviced by Mobile
  communication operator Automotive manufacturer
• Major service Traffic information, Navigation
  (For automotive and personal)
• Market characteristics Highly focused on
  certain area (Metropolis including Seoul and
  Busan)
• Strength Worlds best wireless communication
  infrastructure, Consumers inclinations for Early
  Adapter, superb contents developing capability
• Weakness Low graded technology of automotive
  parts, Lack of international negotiation ability
  for platform standardization
• Key service name NateDribe(SKT),
  Mozen(Hyundai), K-Ways(KTF) , Subscribers
  approx. 275 thousand

Service Name Before Market Before Market Before Market After Market After Market After Market
Service Name Mozen INS-300 Ever-way NateDrive K-Ways ez-Drive
Company Hyundai/KIA Motors Samsung Motors Ssangyoung Motors SKT KTF LG Telecom
Affiliated company LG Telecom SK Telecom KTF SK corp. - Nemotel
Terminal providing company Hyundai Autonet, LG Electronics Samsung electronics Hyundai Autonet WIPI, WITOP Samsung Electronics LG Electronics
Service starting day 2003.11 2003.12 2005.2 2002.4 2004.5 2004. 9
Targeted vehicle type Hyndai(7 types)/KIA(5 types) SM Series Chairman, Rexton, Roadious All All All
Terminal price (USD) 10002,000 300400 10002,000 250 330 (Kit separated) 250 330 (Kit separated) 250 330 (Kit separated)
Using fee(USD) (communication charge exclusive) 15/25 17/8/5 15/25 17/8/5 8 6
Features Putting on in new car delivery Intensified safety, security service Putting on in new car delivery Intensified safety, security service Putting on in new car delivery Intensified safety, security service Using personal mobile phone with GPS receiver Needed to install GPS antenna, exterior microphone etc. Shortcut notification, traffic information Using personal mobile phone with GPS receiver Needed to install GPS antenna, exterior microphone etc. Shortcut notification, traffic information Using personal mobile phone with GPS receiver Needed to install GPS antenna, exterior microphone etc. Shortcut notification, traffic information
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View on Telematics Service
Telematics is evolving from driver focused
service to comprehensively integrating
circumstance searching, driving habit, and
vehicle transportation.
View on Telematics Service
Technical Level
Wireless internet, DMB,WCDMA, ALL IP
High
Auto driving
Two-way traffic information
3G wireless communication network,WLAN2G/3GWLAN
VoIP
V-Commerce
Safe driving

• Various value added service
• Systemically growing by government
• Need of core technology

Simple shortcut notification
POI Search
Emergency Rescue
Simple traffic information using text and voice
2G wireless communication network, WLAN
LOW
2003
2004
2005
2006
2007
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Bottlenecks and Improvements in Telematics
Bottlenecks
Improvements

• Inefficient nation wide traffic information
  integration and providing systems
• Hard to access public information because of no
  guideline for information opening
• Lack of compatibility due to absence of
  standardization of traffic information and
  electronic map between players

• Early activating of TELIC -Single channel
  providing of dispersed traffic information
• -Preventing duplicated investment by TSP
• Make de facto standard in the light of demand
  side

Traffic information gathering and standardization

• Low awareness on telematics
• Hard to experience what is telematics
• High mobile communication using fee (esp. data
  contents), registry fee, and terminal price
• Lots of gap between customers expectation and
  service qualtiy

Market side

• Preparation of PR material (book, picture etc.)
• Presenting good contents by improving material
  flowing structure (TELIC)

• Lack of source technology development
• Difficult to realize interface between car and
  human
• Low technology level of voice recognition

Technology side

• Developing systemic technology by constructing
  cluster for areas having specified technology
• Linked RD by Industry, academy, and research
  institution (Studying every technology by ETRI)

• Any marketing activities of safe driving industry
  players banned due to government restriction
• Need of systemic support for telematics growth

Policy side

• Need of law institution policy support for early
  vitalizing telematics market - limited
  permission for subsidy of terminal
• - Adjustment fee system (Civil initiated) -
  Make user protection system

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Activities in Korea TELIC

• Business name Telematics Information Center
  (TELIC) Construction
• Duration Jan. 2004 Dec. 2007
• Business period in this year Jan. 2005 Dec.
  2005

TELIC Overview
TSP 1
Integrated public traffic information(NITIC of
MOCT, KOTIC of NPA Self-selfgovernment etc.)
Traffic(Civil,Public)
Weather
NavigationMAP
TSP 2
Information
...
Civil traffic information
PublicPOI
Traffic information
TELIC
TSP N
Real telecom
ROTIS
Relating business
Disater112/119
Building RS dissemination system
KTF
SK Corp.
TMS DB(Professional,Technician)
B2B linking
Logistics
Insurance
Other information
Security
Weather
MAP
Telelmatics information processing system
Disaster
POI
Telematics information linking system
Information
Service center at telematics pilot city
Parking lot
Tel.
Telematics information foundation system
MOCT Ministry of Construction and
Transportation NPA National Police Agency
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Activities in Korea Je-Ju Island Pilot City
Project
Je-Ju Island Pilot Project Overview
Travel/Traffic (Shortcut information)
Travel/Traffic (Traffic information)
Vehicle control
Emergency call
Je-Ju 119
Emergent going out order
Travel/Traffic(Sightseeing)
Travel/Traffic (Accommodation)
Vehicle and emergency call control
Emergency rescue (linking with 119)
Je-Ju Already made contents
Trave/Traffic
V-Shop (Local specialty)
Cultural event
Je-Ju culture
Cyber Je-Ju (http//cyber.jeju.go.kr) E Je-Ju
Mall (http//www.ejeju.net) Cyber Samdaguan
V-Shop
GPS satellinte
Emergency rescue (vehicle location information)
Leisure (Climbing)
Leisure (Weather)
Leisure
Contents provider
Weather
Climbing, Golf, Fishing, Karaoke, Game, MP3,
Stock trading, Weather
Leisure (Golf)
Entertainment (Game)
Entertainment

Je-Ju ITS Center
Entertainment (Stock trading)
Entertainment (Karaoke)


Wireless LAN
WLAN AP
Telematics service (multimedia contents etc.)
charged
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Activities in Korea Others

• Promote Domestic Telematics Industry
• Spur domestic telematics markets through
  government-led legal and applicative supports
  with a view to induce a practical domestic
  standard.
• KOTBA offers the directions for strategic
  alliances and cooperative relationships between
  business parties.
• Telematics Standardization Forum
• Telematics Standardization Forum move forward de
  factor with existing commercial technology
• According to enact telematics standard,
  telematics companies reduce duplicated cost,
  increasing efficiency.
• Public Pilot project (FMS Fleet Management
  System)
• Using telematics technology, companies arrange
  and manage their automotives such as bus, truck,
  ambulance and rent car.
• Propose Business Model of Broadcasting-Communicati
  on

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Activities in Overseas APEC

• APEC Telematics Promotion Strategy

• Survey on the current telematics status (legal,
  policy, infrastructure, etc on each
• economy)
• Verify Telematics issues (Privacy policy,
  security, safe driving, and etc)
• Suggest initiatives for telematics market
  activation on APEC region

Korea
Japan
HKG(China)
Taiwan
Singapore
Australia
13
Some Telematics Policy Issues

• Each APEC Economies promote industry with
  different policies
• Necessary to initiate Win-Win strategy for all
  APEC Economies
• Different regulation and legal restriction issues
• Safety
• Emergency call
• Reduce injuries on natural disaster such as
  Tsunami
• Privacy
• Security
• Technological gap

14
Propose to have a next APSC Meeting in Korea
KOTBA would like to propose to have a next APSC
Meeting in Korea And provide a chance to
experience the status of and movement of
Telematics market in Korea. Date September or
October or December Place September (Seoul),
October(Busan),December (JeJu Island)
15
QA

• KOTBA Korea Telematics Business Association
• Stacy Kang, Manager
• Tel [phone]
• E-mail stacy_at_kotba.org