ATLANTA Consumers love the idea of having directions and concierge services available at the touch of a button, but they are less than thrilled with steep monthly fees for the luxury of having the service available for occasional use. That's why Hughes Telematics will offer customers transaction pricing, so customers will pay for the services they need, when they need them, explained President Erik Goldman.
While basic security services such as automatic crash notification and stolen vehicle location may remain solely subscription-based, additional services such as navigation and concierge services will be available on a pay-as-you-go service in the Mercedes-Benz and Chrysler vehicles that will employ the Hughes system starting in model-year 2010. "They are impulse services," Goldman said.
"When you call 411 to ask for directions to a restaurant so you won't be late for a reservation, included in the call will be GPS information in the signal," he explained. "We can send back to the vehicle a route calculation." Incumbent telematics suppliers OnStar and ATX could do the same thing today if they were equipped to charge for that service, according to Goldman.
Hughes will be able to model its internal information technology systems after those used by cellular telephone providers, permitting the company to offer a broad variety of product packages and pricing options. "They have hundreds of different types of customers and service plans," Goldman observed. "That complexity we are bringing into our back office as well, which allows us to offer a tremendous amount of differentiation."
Other services such as the ability to monitor maintenance issues like oil level and tire pressure from your PC, as well as the more potentially intrusive ability to track the vehicle's speed and location will also be available. The latter service is intended to let parents keep an eye on kids when they use the car, and measures will be taken to prevent the covert monitoring of adult drivers who might be suspected of adult activities. "There will be an indicator on the dash indicating that the vehicle is being monitored," said Goldman. "We are highly sensitive to privacy."
From a convenience standpoint, Hughes will offer off-board route mapping for the navigation system, so customers can plot their route on their computer and send the directions to the car. "Destination entry is the key to a high-utility navigation system," Goldman said. The car will also be able to report on its health, not only keeping the owner apprised of its condition, but the system even has the potential to report on the status of the emissions system, saving the driver the hassle of a trip to the emissions inspection station.
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