ABI Research: Wireless Carriers, Not Automakers Leading Korean Telematics Effort.

OYSTER BAY, N.Y. -- The South Korean telematics market continues to increase rapidly, but growth is being primarily driven by the use of handset-based solutions, as opposed to OEM-installed systems, according to the latest findings from ABI Research. E[acute accent]Part of the reason for this growth is a very tech-savvy consumer base, with more than half of Korean users having Internet access, and over a quarter of all consumers having broadband service. E[acute accent]"The reason Korean telematics services are dominated by the handset industry is because of high cell phone penetration rates and nearly seamless wireless coverage: nearly three-quarters of the South Korean population are cell phone subscribers and their 3G network is among the most mature in the world," notes ABI Research Director of Automotive Research, Frank Viquez. "SK Telecom, KT Freetel, and LG Telecom, South Korea's leading wireless carriers, all offer telematics services. Some have partnered with an automaker while others simply utilize their own distribution channels." E[acute accent]The handset-based systems are much less expensive than in-vehicle systems, and offer portability. Dedicated in-vehicle systems, like those from Hyundai's MOZEN telematics service have been targeted solely for early adopters. E[acute accent]According to ABI Research's new study, "The Developing Korean Telematics Chain", current telematics consumer demands are primarily for navigation and traffic information, but may shift to in-vehicle entertainment, which has become popular in Japan. The challenge ahead for both automakers and carriers is integrating new audio and video systems such as digital multimedia broadcasting into the vehicle. This way, users can simply dock their phone into the vehicle and access digital media through the vehicle's speakers, or allow passengers to watch television. E[acute accent]ABI Research's new study on the emerging market for telematics in South Korea includes detailed profiles of the leading firms throughout the telematics value chain: wireless carriers, automakers, traffic information providers, digital map firms, and terminal manufacturers. Also, the report analyzes the recent telematics initiatives resulting from joint government/industry efforts.

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