April/May 2003

A European Commission decision awaited as m.logistics closed for press could have wide-ranging ramifications for the future of commercial vehicle telematics systems. Some commentators fear that if it goes the wrong way it could severely restrict future telematics developments.

It all arises from an ambitious road pricing scheme for trucks of over 12 tonnes gross which Germany is due to introduce on its autobahns this August. It will be monitored by an on-board electronics and tracking system developed by a company called Toll Collect.

Toll Collect is a consortium involving DaimlerChrysler Services, Deutsche Telekom and the French company Cofiroute.

Originally this system was to be restricted purely to road pricing, but later the company decided to include value-added telematics systems as well. The fear is that such a measure would effectively render third-party telematics systems redundant.

 

According to a survey by consultancy Frost & Sullivan, around 75 per cent of commercial vehicle telematics systems are used only for tracking and tracing. "If Toll Collect were to offer these same services," says programme manager Miranda Carpenter, "truck operators would have little incentive to specify a dedicated fleet management system, as the terminal would be more than adequate for most of their needs today."

The European Commission has taken the same view, fearing that the resultant system could become "a predominant platform for the provision of telematics services for the transport and logistics sector". It is the results of its investigation that are now awaited attentively.

Frost & Sullivan says that at least 950,000 Toll Collect units will be installed free on heavy vehicles by the end of 2004, possibly undermining competitive telematics propositions. Its own view is that Toll Collect should remain a closed system; it admits this might appear a negative move, but says it is the best way to preserve the competitive environment.

Other countries including Austria, the Czech Republic and Sweden are known to be considering similar systems, so the potential outcome could end up having a Europe-wide impact.

The whole issue highlights the still-fragmented state of the telematics and on-board computing market. Clearly many truck operators would welcome a single, integrated tracking and telematics system that could also cope with future road pricing requirements - especially one supplied at low cost or even free; but this could stifle future telematics developments, and place curbs on future initiatives by individual suppliers.