MiFi Brings Another Wi-Fi Option to the Car
But will consumers pay for it?
Your flight arrives and you and your business colleagues pick up the rental car. You are going to make the meeting, but since your flight was delayed you don’t have time to check into the hotel, your colleagues need to download the latest presentation from the corporate office, and another must upload the latest sales figures. What do you do?
Unless you were driving a Chrysler vehicle, a few select GM models or the VW Routan in the United States, you would have been out of luck.
Can you Connect Me Now?
However, all that has changed because both Sprint and Verizon have released mobile hotspot devices called MiFi.
The devices from the wireless carriers are very similar but have two distinctions. Both MiFi devices are made by Novatel Wireless. They are so small they can easily fit into a person’s pocket and have a battery life similar to a cell phone. Autonet Mobile provides the software licensing to both devices, which facilitates easy handoffs between cell towers to allow the device to be used more easily in the car when traveling at high speeds.
The biggest difference between the Sprint and Verizon devices is that the Sprint product includes a built-in GPS chip. The feature adds a dynamic to Sprint’s MiFi device, which allows for more Location Based Services (LBS) and geo-centric applications. Users could download navigation directions on their laptops or have traffic updates specific to their location. Even when not in the car, by including the GPS chip, Sprint’s MiFi could benefit pedestrians navigating city streets.
The other difference involves pricing. Both companies offer the device for $99, but that is without the necessary data plan. Both companies also offer a data plan that includes 5GByte a month for $60. If the users go over 5GByte, then it is $0.05 per MByte. Verizon, however, also offers a smaller data plan of 250MByts for $40.
Other Internet Options
As mentioned above, Autonet Mobile supplies Chrysler, GM, and Volkswagen with their in-car Wi-Fi devices. It is essentially the same as the MiFi. It even allows the user to transfer it from vehicle to vehicle, but docking stations need to be installed. In contrast, the MiFi solution can be taken out of the car and used while walking around. The data plans are identical as well at $60 for 5GByte.
Europe has also dabbled in bringing Internet into the car in two different ways. The most notable is BMW, which in Germany allows full Internet access, and in other countries a walled-garden Google search portal. BMW charges only 15 euros per month for full Internet access, but this Internet option does not create a Wi-Fi hotspot that can be used by any device. In all new BMW models to offer the in-vehicle Internet, the option is only available with the iDrive infotainment system. This means it is—for the most part—limited to the driver and front passenger.
Furthermore, it can only be used by front-seat passengers when the car is stopped. Only in the new 7Series—with the optional rear-seat entertainment system—can the Internet be used while driving, and only by the rear-seated passengers. Other BMW models with rear seat entertainment do not feature the rear iDrive controller, making the Internet browsing impossible.
Other downfalls have been the connection speeds, which have been reported as being quite slow at times including close to a minute to connect to a single website. Even still BMW is currently the only OEM to offer Internet capabilities integrated with the car, and for a first attempt has done quite well.
Another European company to offer Internet in the car is France Telecom’s wireless carrier Orange. Orange introduced its Flybox device last year at the Paris Motor Show. The Flybox is similar to the MiFi, but it also has Ethernet connections as well as Wi-Fi. Orange was supposed to launch the device this year to consumers, as well as in the Toyota Corolla Verso and the Lancia Delta. Although still offered as a residential device in some countries, the product cannot be found on Orange’s French website, nor is it mentioned as an accessory for the Verso or the Delta. It remains to be seen if it was merely delayed because of the economic situation or if the product was shelved completely.
Future of Wi-Fi in the Car
Internet in the car has really just started to appear on the market in the last year, whether it be Wi-Fi or a direct connection to the car. Like most new technologies it is slow on the uptake. In 2009 iSuppli is forecasting that 0.35 percent of the cars sold in the U.S. will have Wi-Fi, and globally only 0.07 percent of cars will offer the feature. In fact globally the number stays below 5 percent through 2014, while in the U.S. it does increase slowly to 5.7 percent in 2012 and to 13.4 percent in 2014.
Expensive data plans, the popularity of smart phones, and safety are a few reasons why these numbers do not show significant increase over the years. Currently, data plans are costing around $60 per month; consumers will have a hard time swallowing that price, especially if it is limited to their car. BMW’s 15 euros a month is more palatable, but it does not allow downloads or connections for mobile devices. In addition, it only offers limited Java support, while Flash and a PDF file viewer are not available.
Many consumers will be hesitant to include Internet in their car because their smart phone essentially serves the same purpose. Whether it is an iPhone, BlackBerry, or G1, many phones have applications that take care of the functions that most in-vehicle Internet is designed to address. Furthermore, if one has a smart phone they are already paying for a data plan and are unlikely to pay for a second one just for their car. These buyers would likely be contained to the high-end luxury market in the future as well.
Safety is yet another concern as to why the Internet has not yet jumped into the car. This refers not only to driver distractions but also computer viruses that could affect the driving safety of the vehicle. The latter concern is only for systems like BMW’s that are directly connected to the car. This is why BMW users cannot download Flash or allow pop-ups. While it protects the vehicle and its systems, it also limits its potential use. The driver distraction concern is also why BMW limits the accessibility to surf for the driver. Wi-Fi devices have no way to limit who is using it and could potentially lead to serious distractions for some drivers.
The MiFi device’s portability, however, is an interesting characteristic. Although currently being advertised for use in the car, the device is not limited to only the vehicle. It can be brought along anywhere since it easily fits in a pocket and has lasting battery life. This versatility may help create more demand rather than limiting it to the automobile. It may also bring awareness to the general public of the positives that the Internet can bring to the car such as entertaining kids, helping business colleagues, or having connected navigation in a vehicle that does not offer it.
OEMs and suppliers alike need to determine what direction to take in-vehicle Internet. Wi-Fi, albeit more expensive, allows multiple connections and quicker speeds. BMW’s solution is cheaper, usable by the driver, and does not require an external device, but it is noticeably slower and is limited while driving. Either way, in-vehicle Internet uptake will be a slow process that will take years to develop, but new products like the MiFi devices could help in generating attention and can ultimately hasten the popularity of this option.
Your flight arrives and you and your business colleagues pick up the rental car. You are going to make the meeting, but since your flight was delayed you don’t have time to check into the hotel, your colleagues need to download the latest presentation from the corporate office, and another must upload the latest sales figures. What do you do?
Unless you were driving a Chrysler vehicle, a few select GM models or the VW Routan in the United States, you would have been out of luck.
Can you Connect Me Now?
However, all that has changed because both Sprint and Verizon have released mobile hotspot devices called MiFi.
The devices from the wireless carriers are very similar but have two distinctions. Both MiFi devices are made by Novatel Wireless. They are so small they can easily fit into a person’s pocket and have a battery life similar to a cell phone. Autonet Mobile provides the software licensing to both devices, which facilitates easy handoffs between cell towers to allow the device to be used more easily in the car when traveling at high speeds.
The biggest difference between the Sprint and Verizon devices is that the Sprint product includes a built-in GPS chip. The feature adds a dynamic to Sprint’s MiFi device, which allows for more Location Based Services (LBS) and geo-centric applications. Users could download navigation directions on their laptops or have traffic updates specific to their location. Even when not in the car, by including the GPS chip, Sprint’s MiFi could benefit pedestrians navigating city streets.
The other difference involves pricing. Both companies offer the device for $99, but that is without the necessary data plan. Both companies also offer a data plan that includes 5GByte a month for $60. If the users go over 5GByte, then it is $0.05 per MByte. Verizon, however, also offers a smaller data plan of 250MByts for $40.
Other Internet Options
As mentioned above, Autonet Mobile supplies Chrysler, GM, and Volkswagen with their in-car Wi-Fi devices. It is essentially the same as the MiFi. It even allows the user to transfer it from vehicle to vehicle, but docking stations need to be installed. In contrast, the MiFi solution can be taken out of the car and used while walking around. The data plans are identical as well at $60 for 5GByte.
Europe has also dabbled in bringing Internet into the car in two different ways. The most notable is BMW, which in Germany allows full Internet access, and in other countries a walled-garden Google search portal. BMW charges only 15 euros per month for full Internet access, but this Internet option does not create a Wi-Fi hotspot that can be used by any device. In all new BMW models to offer the in-vehicle Internet, the option is only available with the iDrive infotainment system. This means it is—for the most part—limited to the driver and front passenger.
Furthermore, it can only be used by front-seat passengers when the car is stopped. Only in the new 7Series—with the optional rear-seat entertainment system—can the Internet be used while driving, and only by the rear-seated passengers. Other BMW models with rear seat entertainment do not feature the rear iDrive controller, making the Internet browsing impossible.
Other downfalls have been the connection speeds, which have been reported as being quite slow at times including close to a minute to connect to a single website. Even still BMW is currently the only OEM to offer Internet capabilities integrated with the car, and for a first attempt has done quite well.
Another European company to offer Internet in the car is France Telecom’s wireless carrier Orange. Orange introduced its Flybox device last year at the Paris Motor Show. The Flybox is similar to the MiFi, but it also has Ethernet connections as well as Wi-Fi. Orange was supposed to launch the device this year to consumers, as well as in the Toyota Corolla Verso and the Lancia Delta. Although still offered as a residential device in some countries, the product cannot be found on Orange’s French website, nor is it mentioned as an accessory for the Verso or the Delta. It remains to be seen if it was merely delayed because of the economic situation or if the product was shelved completely.
Future of Wi-Fi in the Car
Internet in the car has really just started to appear on the market in the last year, whether it be Wi-Fi or a direct connection to the car. Like most new technologies it is slow on the uptake. In 2009 iSuppli is forecasting that 0.35 percent of the cars sold in the U.S. will have Wi-Fi, and globally only 0.07 percent of cars will offer the feature. In fact globally the number stays below 5 percent through 2014, while in the U.S. it does increase slowly to 5.7 percent in 2012 and to 13.4 percent in 2014.
Expensive data plans, the popularity of smart phones, and safety are a few reasons why these numbers do not show significant increase over the years. Currently, data plans are costing around $60 per month; consumers will have a hard time swallowing that price, especially if it is limited to their car. BMW’s 15 euros a month is more palatable, but it does not allow downloads or connections for mobile devices. In addition, it only offers limited Java support, while Flash and a PDF file viewer are not available.
Many consumers will be hesitant to include Internet in their car because their smart phone essentially serves the same purpose. Whether it is an iPhone, BlackBerry, or G1, many phones have applications that take care of the functions that most in-vehicle Internet is designed to address. Furthermore, if one has a smart phone they are already paying for a data plan and are unlikely to pay for a second one just for their car. These buyers would likely be contained to the high-end luxury market in the future as well.
Safety is yet another concern as to why the Internet has not yet jumped into the car. This refers not only to driver distractions but also computer viruses that could affect the driving safety of the vehicle. The latter concern is only for systems like BMW’s that are directly connected to the car. This is why BMW users cannot download Flash or allow pop-ups. While it protects the vehicle and its systems, it also limits its potential use. The driver distraction concern is also why BMW limits the accessibility to surf for the driver. Wi-Fi devices have no way to limit who is using it and could potentially lead to serious distractions for some drivers.
The MiFi device’s portability, however, is an interesting characteristic. Although currently being advertised for use in the car, the device is not limited to only the vehicle. It can be brought along anywhere since it easily fits in a pocket and has lasting battery life. This versatility may help create more demand rather than limiting it to the automobile. It may also bring awareness to the general public of the positives that the Internet can bring to the car such as entertaining kids, helping business colleagues, or having connected navigation in a vehicle that does not offer it.
OEMs and suppliers alike need to determine what direction to take in-vehicle Internet. Wi-Fi, albeit more expensive, allows multiple connections and quicker speeds. BMW’s solution is cheaper, usable by the driver, and does not require an external device, but it is noticeably slower and is limited while driving. Either way, in-vehicle Internet uptake will be a slow process that will take years to develop, but new products like the MiFi devices could help in generating attention and can ultimately hasten the popularity of this option.
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