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October 28, 2009
Rough Road Ahead for eCall: Report
By Divya Narain, TMCnet Contributor
Market research firm Strategy Analytics has said that there are inherent flaws in the implementation of the eCall mandate. According to the Strategy Analytics (News - Alert) Wireless Enterprise Strategies report titled “eCall Gets the Green Light: But It's Bad News for Wireless Carriers and Automakers,” eCall is expected to benefit neither vehicle makers nor wireless carriers.
The EU plans to make the availability of the eCall system mandatory by January 1, 2014, in case car makers fail to voluntarily provide the required application by 2012. The eCall mandate specifies the technology required for eCall, even though at least four European car makers have introduced their own connected safety systems- resulting in the setback.
“It is hard to argue the virtue of saving lives and speeding assistance to crash victims. But in a free market, the value of such a system or service, if demonstrable or self-evident, should not require a mandate and should not be free. It is unfortunate that the European Commission could not simply have mandated the eCall system without mandating the technology,” said Andrew Brown, director of Wireless Enterprise and co-author of the report.
“Each attempt by the European Commission to create more clarity on eCall inevitably creates more confusion and delay,” also said Roger C. Lanctot, senior analyst for the Global Automotive Practice at Strategy Analytics. “A funding measure for service providers is still necessary to make this a reality, and some member states will never sign on.”
Divya Narain is a contributing editor for TMCnet. To read more of Divya’s articles, please visit her columnist page.
Edited by Stefania Viscusi
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