Recent research by Venture Development Corp. (VDC), an independent technology market research and strategy consulting firm, estimates that sales of  in-car telematics and communication devices will continue to grow explosively through 2007 and beyond. Telematics enable the electronics embedded in a vehicle to connect wirelessly to external voice, data and other content sources. According to VDC, the market for telematics is expanding at a compound annual growth rate (CAGR) of 13.7 percent and will reach more than $1.2 billion by 2007.

Telematics can take the form of a hands-free interface for mobile phones or PDAs through a connection with the vehicle using Bluetooth wireless technology. ABI Research found that use of Bluetooth in the automotive environment grew 141 percent in 2005, compared to 2004. The company cites three factors accounting for the strong uptake of Bluetooth in cars:

1) Awareness, familiarity and use of Bluetooth within the wider consumer base has grown significantly, and this has resulted in Bluetooth becoming a feature demanded by consumers, rather than pushed by manufacturers.

2) Cellular handset penetration rates have continued to rocket and appear set to continue in the same direction.

3) The growing trend for hands-free driving legislation has benefited the Bluetooth community and can be seen as the most influential driver.

Recently, the Bluetooth Special Interest Group (SIG), comprised of companies in the telecommunications, computing, and network industries, announced the Hands-Free Profile (HFP 1.5) and enhancements to the Phone Book Access Profile (PBAP). What does it mean for consumers? These new profiles greatly will improve phonebook and dialing use in the car, making it more convenient and straight-forward for drivers, car manufacturers and phone manufacturers to use Bluetooth wireless technology.

With the PBAP, the information from the mobile’s phone book will be made available in the hands-free car kit, making it accessible to the user. The user can simply download and browse the phone book from any mobile phone or PDA. The HFP 1.5 is updated to include common features from the mobile phone such as enhanced call control, phone status indicators, response and hold, and information about the subscriber number. In addition, audio quality is enhanced.

New products including these enhancements are estimated to hit the market late in 2006. The first offerings mainly will be mobile phones and aftermarket car kits. Embedded Bluetooth car kits will most likely be seen on the market at the earliest in 2007, since the car development cycle is longer than that of mobile phones and aftermarket accessories.

Several car manufacturers currently offer Bluetooth hands-free solutions, including Audi, BMW, DaimlerChrysler, Honda, Saab, Toyota and Volkswagen. Aftermarket car kits for virtually any make or model of car are also available from a variety of manufacturers, including Motorola, Nokia, Parrot and Sony Ericsson.

The idea of Internet connection from a moving vehicle is not futuristic. At the 2006 CES, the world's first vehicle-based satellite antenna providing in-motion, high-speed two-way Internet access to motorists was introduced. RaySat’s SpeedRay 3000, which was cited for recognition in the Consumer Electronics Association’s Innovations 2006 Mobile Electronics category, provides vehicle passengers with an in-car hotspot, easy IP-based network access plus live satellite TV using a low profile (5.7-inch) KU-band satellite antenna.

To provide continuous signal feeds the SpeedRay 3000 uses GPS-tracking and phased array antenna technology.  Its panels tilt up and down and rotate back and forth (inside the housing) to track and maintain the satellite signal, regardless of the vehicle’s position relative to the satellite with which it is in communication.

For video reception, the antenna is compatible with DISH Network and all other direct-to-home broadcast satellite providers worldwide. The SpeedRay 3000 system is comprised of the 5.7-inch roof-mounted antenna unit for satellite signal reception, an indoor antenna controller, a satellite modem (for Internet access), Wi-Fi router and a DBS satellite receiver (for live satellite TV). The antenna mounts to the cross bars of a vehicle roof rack.

Thanks to two-way, in-motion access to Microsoft’s MSN TV service, passengers in RVs and trucks soon will be able to enjoy such features as e-mail, instant messaging and Internet browsing right on their vehicle’s television.

KVH has jumped into the mobile internet arena with its TracNet 100 receiver. Using a customized version of the MSN TV 2 Internet & Media Player, the system will provide in-motion access to Web browsing, MSN Mail and MSN Messenger as well as digital photo viewing, MSN Video and MSN Radio. A wireless keyboard controls the system while broadband EVDO data services, with data rates ranging from 400 Kbps to 2.4 Mbps, and an external, amplified antenna provides two-way, mobile connections. KVH’s Mobile Internet Receiver with MSN TV service also will include Wi-Fi output to provide Internet connectivity to any Wi-Fi-enabled laptop.