This week I spoke with Pavan Mathew, Global Head of Automotive Telematics at Telefónica, in an exclusive interview about a company report that argues the car industry must reinvent itself to take full advantage of the connected future.
As our lives become increasingly digital, we expect everyday devices to be connected — not only to the internet and its services, but also to each other. Smartphones rarely leave our sides, and many people feel anxious if their mobile data drops while they are out, cutting them off from email, social networks, entertainment and other services they rely on.
Wearable devices such as smartwatches and heads-up displays aim to provide convenience and productivity without forcing us to stare at our phones. The next generation of connected cars wants to offer the same seamless access and convenience, while also improving driver safety.
I began by asking Pavan whether mobile operators are willing and whether existing networks can support cars, given that many consumers already carry multiple connected devices.
He was confident: “Most carriers have the bandwidth to do that. What the OEMs are looking for is a real partnership in thought, and in delivering service.”
That collaboration — manufacturers, operators and service providers working together — is a current focal point. I then asked whether the industry has converged on a preferred way to monetize connected-car services.
Pavan noted this question comes up everywhere industry leaders meet: “If you go to any of the conferences, or where these businesses meet, that’s always the big question: ‘what is the best business model?’”
He explained the difficulty of a single solution because of differing usage patterns. For example, he pointed out that “75% of the time it’s an individual driver who’s in the vehicle.” Delivering the right services for a solo driver is one challenge; providing high-quality experiences when multiple occupants are present is another. “I think you can do all the above,” he added.
I asked whether advertising might underwrite some services. Pavan’s view was cautious: “I think there’s room for advertising, but you have to be guarded. You don’t want it to interfere with driving or with the experience the OEM wants to deliver.”
Apple’s recent announcements about integrating voice control into cars — such as the Eyes Free initiative that leverages Siri through vehicle infotainment systems — prompted a question about whether customers prefer a familiar, unified experience.
He observed that a sizeable segment of consumers favors simplicity: “Look, make it easy for me, don’t distract my driving. I just want to listen to my radio; I just need to pair my phone. The more you do it with physical controls, the easier for me.”
At the same time, Pavan warned against a one-size-fits-all approach. Voice-activated, natural-language services and eyes-free interfaces can be excellent tools for many users, but they must not alienate consumers who want straightforward, reliable controls. “Challenge the leaders with eyes-free, Siri, and voice-activated services in some cases. But don’t alienate a big segment of consumers who just want something simple that works and doesn’t cause too much disruption.”
Delivering a satisfying user experience is crucial for manufacturers. Any frustration with an in-car system can affect perceived product quality. “Any type of frustration will influence quality scores — customers might say ‘I couldn’t figure out the infotainment,’ and that reflects poorly on the product,” Pavan said.
When I asked whether safety takes priority over new features, he reaffirmed that safety and security are foundational to the connected car: “If you really sum it up, it’s about doing the right thing — how do we make the car safer and better?”
He gave a practical example: in the U.S., many systems disable certain navigation interactions when the vehicle is moving above a low threshold speed so that drivers still see their route but can’t interact with the system while driving, minimizing distraction.
New and pending legislation illustrates how safety features are becoming mandatory considerations. For instance, eCall technology — a system that automatically notifies emergency services with vehicle location and crash details — has been discussed as a standard feature in new cars from certain future dates. The industry broadly supports such measures, but Pavan made an important point: “As an industry, you want to do that before legislation makes you.” Proactive adoption of safety technologies is preferable to waiting until rules force change.
Connected cars promise to change how we travel, blending convenience, connectivity and safety. The challenge now is to design services, partnerships and business models that meet diverse user needs without compromising the driving experience.
What do you think about the future of connected cars — is it an exciting prospect?