Subject: [NEXTEL-1] ABI Research Foresees Large DSRC Market Later This Decade

From: [email-masked]
Date: Mon, 12 Jul 2004 18:10:59 -0400

ABI Research Foresees Large DSRC Market Later This Decade

Dedicated Short Range Communications (DSRC) is an idea whose time is
fast approaching. But by the end of this decade and beyond, this
wireless technology aimed at the motor vehicle will produce a huge
market in the United States, with serious implications for the way we
use our cars. This is the conclusion reached in a study just produced by
ABI Research.

The report, "Dedicated Short Range Communications: The Emerging Wi-Fi
and RFID Market for Advanced Automotive Identification, Commerce and
Communications," provides early glimpses of a wireless network that will
allow real-time traffic updates to be beamed right into a vehicle's
navigation system, universal automatic toll collection, streaming
entertainment, intelligent safety systems, even interactive commerce.
But there is another potential, which promises to alarm privacy
watchdogs and thrill homeland security enforcers: a potential for
tracking and logging of vehicles' movements and usage.
"It looks like there's going to be a massive infrastructure installation
in the US later this decade, probably largely funded by the Department
of Transportation," says ABI Research analyst Dan Benjamin. "But it's
hard to talk about specifics because no budget or roadmap has been
established, yet."

Why, asks the report, would the U.S. government care about installing
new infrastructure? Because the existing infrastructure is limited in
its usefulness and hindered by compatibility issues. To cover the
country using 802.11 networking at the roadside would involve an initial
expenditure, says the report, of at least $1 billion, and probably much
more. Who would run it? Not all functions would be in public hands, and
automobile makers are generally unwilling to assume management duties.
This is one area the report points out as a new opportunity for private
service contractors.

"There are companies -- WiMAX and fixed wireless broadband players, for
instance -- that could potentially make a lot of money from this, and
they don't even know about it yet," Benjamin concludes said.

www.telecomweb.com

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