Cars With Wi-Fi Hitting the New Information HighwayKevin C. Tofel
Consumers don't want to leave home without their wireless devices, allowing connectivity to be offered in places today that seemed unheard of just a handful of years ago. The trend will only accelerate as carmakers see an "option-tunity" for Wi-Fi in automobiles. Research firm iSuppli predicts integrated Wi-Fi systems in 7.2 million cars by 2017, a more than 40-fold increase from the 174,000 connected cars expected to hit the roads this year. Wi-Fi by itself is less useful than mobile broadband, however, and the auto industry is taking different routes to accomplish full connectivity for the cars of tomorrow.
Ford's Sync system, for example, doesn't provide true mobile broadband access by itself, but it can turn the entire car into a giant hotspot when a customer-provided, USB, mobile broadband dongle is plugged into the car. By choosing to implement a less-expensive Wi-Fi radio, Ford keeps connectivity costs down and allows the car to be connected on mobile broadband, or free hotspots on the road. I've often wanted to connect a car to my home network so I could shoot addresses to the navigation system from a computer with a full keyboard, and Sync would work just fine for that.
A More Integrated Approach
On the other hand, the 2011 Audi A8 includes an integrated 3G radio to supplement Wi-Fi through a Marvell mobile hotspot solution. This Web-connected vehicle is a rolling Mi-Fi device too, sharing its data connection with up to eight Wi-Fi-capable devices, such as tablets, smartphones, and portable gaming handhelds. Mobile broadband is getting the devices to the Web, but it's Wi-Fi that's equivalent to a broadband "last mile"—although in this case, it's really the last few feet.
ISuppli suggests that automotive companies embracing Wi-Fi enjoy a competitive advantage over those that forego offering a wireless option. That makes sense, because Ford is already finding potentially new revenue opportunities in connected cars by wooing developers to make car-specific applications. Audi's integrated approach may be an even bigger gold mine. Since Audi provides the 3G connection in addition to the Wi-Fi, unlike Ford, it can capture user data from the device: websites, preferences, search terms, and more. So Wi-Fi in the car might be a consumer "must have" at the same time that very pipe is providing carmakers with information they can leverage for killer apps for the newest information highway.
There's one road hazard with these connected cars, however: additional distractions to drivers who may find it easier to check Facebook, read e-mail, or engage in some other Web-based activity. We've already seen studies indicating that texting while driving increases the chances of an accident by 23 times, so I can only imagine that more immersive surfing activities while driving raises the odds of an accident to even higher levels.
Also from GigaOM:
Car Data as the Next Platform for Innovation (subscription required)