Your car is getting connected

There's a growing buzz in the market around 'connected services' for use in the 'digital car' as we call it - the war for the digital car has begun.  With a growing set of options for sending data over the air to your car and for two-way connectivity, pretty soon, multiple devices in your car will get data-connected - examples include your radio, your in-dash navigation device, your GPS device, your car as a whole.  Get ready for a whole new generation of applications and services to come down these pipes into your car - at Venrock, we are looking opportunities to partner with entrepreneurs to leverage the car platform and build out these products.

         

But what are the options that you, as a consumer, have to get connectivity while in your car? Are there ISPs you can sign up for your car (just like you use Comcast High-Speed Internet or AT&T DSL services at home), do you have to buy specialized consumer electronics devices (each with their own wireless connectivity) or will your car come already connected? Well, it turns out that the market is in quite a bit of flux and you have many options to choose from:

• Regular voice calls – Let’s not forget this option.  Some applications companies such as 1-800-Free-411, TellMe, Vlingo, DialDirections and Voice On the Go are asking users to just call a phone number from their mobile phone to access various types of data services such as yellow pages, navigation, email, movie listing, podcasts etc.  Of course, in this case, you are leveraging a regular cell network. You can use a Bluetooth headset/earbud to dial/access these services now pretty easily.  The cost is what you pay for a normal phone call.  Be ready to start hearing ads during these calls.        

• Mobile browsers/applications – Of course you can use your mobile phone in your car to access data services such as Google Maps Mobile, Yahoo! Go etc.  While almost everybody I know (including myself) does this, I find this to be an increasingly dangerous option – not only are our lives at risk when we’re doing this while driving but it is, in many countries and US states, against the law.  The cost is what you pay for regular wireless data access.  
  

• Mobile phone as modem - This is possible with some wireless data plans over some mobile phones. As a single-device solution focused on laptops, this solution is limited and somewhat technical. I haven't managed to figure out how this works for my laptop.

• PC cards for broadband access – This is also a good single-device solution focused on laptops.  Most mobile operators such as Verizon (USA ), Airtel (India) and Orange (UK) provide this service.         

• Pirated WiFi access – With the proliferation of WiFi coverage, there seems to be a pretty widespread coverage of open WiFi connectivity points in most major cities – if all you are looking for is to connect while stationary, then this may be a great way to go. Companies such as Jiwire  have mapped out the WiFi network across the US and elsewhere.        

• WiFi routers - Autonet Mobile seems to be the only vendor in this market - Autonet turns a car into a Wifi hotspot using a a Wifi router for the car that connects over 3G and 2.5G networks.  The company has recently signed a deal with Chrysler where, according to Fortune magazine, Chrysler will offer the device for $450 and monthly service of $29 per month.  That's still more expensive than DSL or cable model connectivity at home but may be interesting for business travelers or families who want the kids to be connected to their friends/social networks/games while traveling.  Plus, this will allow you to connect your iPod Touch or iPhone over WiFi while driving - this may get interesting once Apple releases a navigation application or Telenav or Networks in Motion or the like do the same for the iPhone.

Behind the curtains, there are a number of wireless connectivity vendors in the market that are selling to consumer electronics device makers and automobile manufacturers/OEMs. As a consumer, you can’t buy these connectivity services directly. But the vendors providing you with devices (such as Mio, Dash, Magellan, Hughes Telematics, Samsung, Pioneer) and automobiles are bringing these connected devices to your neighborhood dealership or consumer electronics store.

• High-speed wireless data networks - Companies such as Jasper, Kore and Aeris are in this market. They provide network connectivity over GPRS, CDMA 1x-RTT and EV-DO.  Customers of these service providers include consumer electronics vendors such as Dash Navigation and Navman/Magellan and telematics service providers such as Hughes Telematics and ATX.  Device makers typically have a monthly data limit per activated device and pay a monthly fee for this service.  In some sense, these companies are data MVNOs, leveraging networks provided by Sprint, Verizon, AT&T etc.  Some mobile operators such as T-mobile are rumored to be getting into this game directly.

• Data over voice – Vendors such as Airbiquity are in this market. Airbiquity uses the voice channel of any cell network to transmit data. Airbiquity lists OnStar, BMW, Ford and others as its customers.
  

• WiMax – Vendors such as Sprint and Clearwire have announced their intentions to offer a US-wide WiMax network.

There are also solutions in the market for broadcast data connectivity.  These typically leverage the radio or TV broadcast networks and only enable data to be sent one-way from the service provider to the client device.

• Radio Data System (RDS) – This is a broadcast network provided by the likes of ClearChannel, Westwood One,  MSN Direct to send data on over FM radio networks. Most radios today are RDS-enabled- you know you have this if you can get song titles showing up on your radio.  The upside is that this is a ubiquitous network pretty much available wherever radio is accessible.  The downside is the slow data rate and broadcast-only mode. 
  

• Data over satellite radio – XM and Sirius are providing broadcast data capabilities – XM’s NavTraffic and NavWeather are examples of this.   Like RDS, this is a broadcast-only offering.