Subject: [NEXTEL-1] Wireless Carriers Now Joining The Commercial Telematics Bandwagon, Says ABI

From: Marcelrf <[email-masked]>
Date: Tue, 24 Feb 2004 02:28:30 -0500

February 23, 2004 09:35 AM US Eastern Timezone

Wireless Carriers Now Joining The Commercial Telematics Bandwagon, Says
ABI

OYSTER BAY, N.Y.--(BUSINESS WIRE)--Feb. 23, 2004--A new crop of
sophisticated, location-enabled wireless handsets is helping wireless
carriers to integrate themselves deeper into the commercial telematics
value chain, finds technology research firm ABI.

Because of relatively high costs for embedded telematics hardware, the
barriers of entry are still too high for most of the smaller fleet
operators. As a result, many commercial telematics vendors have had
difficulty reaching this substantial, yet virtually untapped market with
a potential of $7 billion by 2010.

"Wireless carriers are uniquely positioned to address a specific niche
in commercial telematics," states Frank Viquez, ABI's Director of
Automotive Research. "By fully leveraging its pre-existing relationships
with hardware and software partners, a wireless carrier can tap into its
subscriber base and target particular commercial customers who
previously wouldn't have been able to consider a telematics solution."

ABI identifies Nextel Communications as the first and best positioned
North American carrier to offer a handset-based commercial telematics
solution. Nextel's 13 million subscribers are predominantly business
users who spend nearly a third more on their phone bills than the
average consumer subscriber. With one of the lowest churn rates in the
industry and access to Motorola's new line of GPS-enabled iDEN phones,
Nextel has been able to further delineate itself from other wireless
carriers.

ABI cautions that a handset-based offering will not be a
one-size-fits-all solution for fleet operators. Handsets will never
replace embedded telematics hardware that can provide critical cargo and
vehicle status information. However, they do promise to fill an inherent
need for low-cost devices that can provide simple location and
dispatch/status information bundled on top of low-cost voice and data
services.

These findings are from ABI's Fleet Management Systems Intelligence
Service, which specifically covers the global commercial telematics
markets. The service examines market-driving applications and
technologies, and provides projections for commercial global telematics
equipment shipments and revenues. An analysis of key market participants
is also provided. ABI offers quarterly research services on all the
major global telematics segments in the OEM, aftermarket, consumer, and
commercial markets.

ABI is a N.Y.-based technology market research firm founded in 1990. ABI
publishes market research and technology intelligence on the wireless,
automotive, electronics, broadband and energy industries. Details can be
found on the web at abiresearch.com or by calling 516-624-3113.

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