Korea Telematics Business Association

The Current Status of Telematics in Korea

KOTBAStacy Kang

2005. 6. 06

Korea Telematics Business Association 2

IT Basis

GPS Satellite-Receiving vehicle’s location

Deliver all the services to driver by telematics terminal with wireless mobile communication

Profile of Telematics

Providing ‘Multimedia Service for Vehicle’ such as traffic information, emergency rescue, safety driving, entertainment to drivers and passengersProviding ‘Multimedia Service for Vehicle’ such as traffic information, emergency rescue, safety driving, entertainment to drivers and passengers

DefinitionDefinition

Traffic Information (Driver) Infotainment (Passenger)

• Shortcut Information• Real Time Traffic Information• POI

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

• Remote Diagnosis• Emergency Rescue• Prevention Vehicle Stealing

Introduction to

Telematics Service

Introduction to

Telematics Service

WirelessInternet

V-Shop

Leisure

Travel/Transportation

Weather

Entertainment

Telematics TerminalTelematics Terminal

Telematics Center

Wireless Mobile Communication

System OverviewSystem Overview

Automotive Management

Making car as the 3rd digital life space (Offering customized high quality information and real-time service)

Telematics

Ensuring efficiency of traffic operation by intelligent

transportation system and improving traffic safety &

environment

Utilizing various geographical information combining factor data relating to it

ITS GIS

Building mutual cooperation systemby specializing their own

characteristics

Building mutual cooperation systemby specializing their own

characteristics

Relation with Other IndustriesRelation with Other Industries

Korea Telematics Business Association 3

Strategies by Telematics Business Cluster

Telecom. Operator

Telecom. Operator

Content Provider

Content Provider

Automotive

OEMAutomotive

OEM

Objective and Opportunity Objective and Opportunity of Businessof Business

Business StrategyBusiness Strategy

New subscriber drawingIncreasing ARPUEntering 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 informationBusiness expansion and winning new enterprise

Vehicle relating service by IT and automotive infrastructureVarious 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 vehicleIncreasing safe driving service for automotive

Getting Database of automotive and Driving lifestyleStrengthening business capability relating telematics

Vehicle relating service by IT and automotive infrastructure

Creating opportunity for new businessExporting system integration technology for telematics

Building infrastructure based on cumulated know-how and technology

•Convergent

service of

different

industries

•Achieving early

vitalizing and

successful

development of

telematics

industry thru

business

alliance

SISI

(Insurance, Logistics etc.)

AssociatedBusiness

Korea Telematics Business Association 4

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 11 55 22 33 44

Automotive suppliers 22 33 44 55 11

TSP 22 33 11 55 44

H/W vendors 11 22 33 44 55

S/W vendors 22 11 33 44 55Network carriers 22 33 11 55 44

Fleet operators 22 11 44 55 33

※참조 : Gartner G2, Q3 2003

Top 5 Strategies by Telematics Business Cluster for Market ShareTop 5 Strategies by Telematics Business Cluster for Market Share

Strategies by Telematics Business Cluster

Korea Telematics Business Association 5

Service Classification by Telematics Terminals

Safety & Security Base

•Embedded Type•Voice Based Service•Early Stage Model

Navigation Base

•Mobile Phone Added on Type•TbT Navigation

Target Market

Type

Main Service

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

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

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

•Mobile phone, PDA

Before Market After Market After Market Before Market

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

•Stand-alone is prevalent•High resolution display•Able to use driver’s mobile phone

Samsung Fire&Marine Insurance(Anynet)

Nate Drive, K-waysez-Drive

Some Venture Companies MOZEN, Everway

Integrated Mobile Phone

•Specialized in Navigation•Telematics Function via Communication Module Interface

•Automobile Embedded Type•Relatively High Price

Korea Telematics Business Association 6

Telematics 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 : World’s best wireless communication infrastructure, Consumer’s inclinations for Early Adapter, superb contents d

eveloping 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

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 : World’s best wireless communication infrastructure, Consumer’s inclinations for Early Adapter, superb contents d

eveloping 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

Characteristics of Telematics Service in KoreaCharacteristics of Telematics Service in Korea

Service NameBefore Market After Market

Mozen INS-300 Ever-way NateDrive K-Ways ez-Drive

CompanyHyundai/KIA

MotorsSamsung 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, WITOPSamsung

ElectronicsLG 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)

1000~2,000 300~400 1000~2,000250 ~ 330 (Kit

separated)250 ~ 330 (Kit

separated)250 ~ 330 (Kit

separated)

Using fee(USD)(communication charg

e exclusive)15/25 17/8/5 15/25 17/8/5 8 6

Features• 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

Korea Telematics Business Association 7

View on Telematics Service

Technical Level

Telematics is evolving from driver focused service to comprehensively integrating

circumstance searching, driving habit, and vehicle transportation.

Telematics is evolving from driver focused service to comprehensively integrating

circumstance searching, driving habit, and vehicle transportation.

View on Telematics ServiceView on Telematics Service

Simple traffic information

using text and voice

Simple shortcut notification

Stolen vehicle tracking

Two-way traffic information

Internet service

(E-mail, Web)

Emergency Rescue

POI Search

Safe driving

Safe driving

Real time dynamic shortcut notification

VRM

On-demandentertainment

Remote diagnosis

Auto driving

Voice E-mail, SMS

V-Commerce

• Various value added service• Systemically growing by

government • Need of core technology

2003 2004 2005 2006 2007

LOW

High

2G wireless communication network, WLAN

3G wireless communication netw

ork,WLAN+2G/3GWLAN+VoIP

Wireless internet,

DMB,WCDMA, ALL IP

Korea Telematics Business Association 8

Bottlenecks and Improvements in Telematics

• 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 customer’s expectation and service qualtiy

• Any marketing activities of safe driving industry players banned due to government restriction

• Need of systemic support for telematics growth

• Lack of source technology development• Difficult to realize interface between car and

human• Low technology level of voice recognition

Technology Technology sideside

Technology Technology sideside

Policy sidePolicy sidePolicy sidePolicy side

Market sideMarket sideMarket sideMarket side

• 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

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

• 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

• Developing systemic technology by constructing cluster for areas having specified technology

• Linked R&D by Industry, academy, and research institution (Studying every technology by ETRI)

• 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

Bottlenecks Improvements

Traffic Traffic information information

gathering and gathering and standardizationstandardization

Korea Telematics Business Association 9

Activities in Korea [TELIC]

Integrated public traffic information

(NITIC of MOCT*, KOTIC of NPA**

Self-selfgovernment etc.)

Civil traffic information

Other information

Weather MAP

Disaster

Parking lot

POI

Tel. #

TELIC

Telematics information foundation system

Telematics information linking system

Telelmatics information processing system

Traffic(Civil,Public)

Building RS dissemination

system

Disater112/119

TMS DB(Professional,Technician)

PublicPOI

Traffic information

WeatherNavigation

MAP

TSP 1

TSP 2

TSP N

...

Service center at telematics

pilot city

Logistics

Insurance

Security

Relating business

Information

Real telecom ROTIS

KTF SK Corp.

Information

B2B linking

TELIC OverviewTELIC Overview

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

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

*MOCT : Ministry of Construction and Transportation**NPA : National Police Agency

Korea Telematics Business Association 10

Activities in Korea [Je-Ju Island Pilot City Project]

Travel/Traffic(Shortcut

information)

V-Shop(Local

specialty)

Cultural event

Entertainment(Stock trading)

A 코스

B 코스C 코스

Leisure(Climbing)

$$

$ : charged

Leisure(Weather)

Leisure(Golf)

Entertainment(Karaoke)

$$

Entertainment(Game)

$$

Travel/Traffic(Traffic

information)

Travel/Traffic(Accommodation)

Travel/Traffic(Sightseeing)

Emergency rescue(vehicle location

information)

GPS satellinte

Telematics service (multimedia contents etc.)

Wireless LANWLAN

AP

Telematics service (text etc.)

CDMA 1x (EvDO)

CDMA station

Telematics Service CenteTelematics Service Centerr

Je-Ju culture

V-Shop

Leisure

Trave/Traffic

Weather

Je-Ju ITS Center

Je-JuAlready made c

ontents

Entertainment

Cyber Je-Ju(http://cyber.jeju.go.kr)E Je-Ju Mall(http://www.ejeju.net)Cyber Samdaguan

Contents provider

Climbing, Golf, Fishing, Karaoke, Game, MP3, Stock trading, Weather

Vehicle controlVehicle controlJe-Ju119

Vehicle and emergency call control

Emergency callEmergency call

Emergency rescue(linking with 119)

Telematics Telematics terminalterminal

Emergent going out order

Je-Ju Island Pilot Project OverviewJe-Ju Island Pilot Project Overview

Korea Telematics Business Association 11

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-Communication

Korea Telematics Business Association 12

Activities in Overseas [APEC]

APEC Telematics Promotion Strategy

Korea

HKG(China)

Taiwan

Singapore

Australia

Japan

•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

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Some Telematics Policy IssuesSome Telematics Policy IssuesSome Telematics Policy IssuesSome 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

Korea Telematics Business Association 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)

Korea Telematics Business Association 15

Q&A

KOTBA : Korea Telematics Business Association

Stacy Kang, Manager

Tel: +82-2-2285-1650 E-mail: stacy@kotba.org