Networkcar Smartens Up Autos With Telematics

By combining a small computerized device, called CAReader, with Web services, Networkcar, a service provider based in San Diego, can help automotive firms monitor a car's location, diagnose mechanical problems, unlock doors and send out service reminders, said Wade Williams, a software engineer at Networkcar.

The company's Web services, built on BEA System's WebLogic Server, allow data transmitted from an in-car computer to be imported into virtually any type of back-office system so that automakers, dealers, road-side assistance providers, fleet managers and state regulators can use the information in near realtime, Williams said.

"If you want to view data and look at it, there's an automated process to merge your system with ours, pull the information, parse the XML payload and shove it into your application," he said. "Our Web services allow that to happen in a totally automated fashion."

With Web services, a "door unlock" button could be created for use by a roadside service firm to unlock a car door if the owner locks the keys inside, Williams said. A fleet manager can use the service to monitor a car's service needs and locate cars in a large lot.

Toyota equipped a fleet of its electric cars with Networkcar's system for ZevNet, a nonprofit ride-share program operating in Irvine and Riverside, Calif. ZevNet lets employers designate a certain number of electronic cars that can be borrowed by commuting employees.

"The Networkcar CAReader device will give Toyota the opportunity to experiment with remote retrieval of in-vehicle data," said Jim Pisz, national manager of partnerships and alliances at Toyota Motor Sales U.S.A.

Networkcar's system will be used to help ZevNet personnel track cars, make sure each electric car is charged before borrowed and ensure the cars are in good working order, Pisz said.

Also, the state of California is currently testing a program using Networkcar's technology that lets taxi companies check their vehicles' emissions automatically. Williams said Networkcar expects the state to open the program to consumers at some point down the road, eliminating the need for car owners to obtain a smog certificate every several years.

But even though Networkcar has made some headway with its system, analysts say the telematics market has been a tricky road to follow. Ford, for example, shut down its telematics operation, Wingcast, less than two years after the company proclaimed it "would redefine the future of mobile communications."

Forrester Research analyst Mark Bunger said Ford's closed telematics model, engineered specifically for the manufacturer's cars, wasn't sustainable. But the Onboard Diagnostics System (OBD), a standard in cars built after 1996, will allow developers to create standards-based applications that can be run on any OBD-compliant telematics system, he said.

The model would be similar to Palm's software developer program, which allows users to choose which applications they want to run. "Look at Palm for a good model of how telematics should evolve," Bunger said.

Forrester projects that the telematics-services market will grow to $3.8 billion in 2006 from $494 million this year. The total market, including services, hardware and airtime over wireless networks, is expected to grow to $19.6 billion in 2006 from $3 billion this year.

With those kind of numbers at stake, it's no surprise that Microsoft is also eyeing the telematics space. The company has a partnership with Accenture to develop telematics applications and will be pushing its .Net platform for automotive services.

And Bunger points out that not all cars will need to be equipped with high-cost telematics systems for drivers to take advantage of new services. Some onboard computers will connect to cell phones via Bluetooth, while other systems will connect directly with a driver's handheld computer.