Novatel announces telematics tie-up with DigiCore

M2M module maker Novatel Wireless has announced a major new contract with telematics player DigiCore under which its devices will be used to support vehicle usage and driver-behavior monitoring applications.

The deal will see DigiCore (Centurion, South Africa) include Novatel’s (San Diego, CA, USA) platform in its range of Ctrack-branded telematics services, initially to support insurance-based offerings.

M2M module maker Novatel Wireless has announced a major new contract with telematics player DigiCore under which its devices will be used to support vehicle usage and driver-behavior monitoring applications.

The deal will see DigiCore (Centurion, South Africa) include Novatel’s (San Diego, CA, USA) platform in its range of Ctrack-branded telematics services, initially to support insurance-based offerings.

In addition, Novatel is to license its device management software to DigiCore, which also has the option of licensing the module maker’s communications and management software platform.

“DigiCore is one of the leading fleet management and vehicle tracking companies, with key partnerships in insurance telematics,” says Peter Leparulo, the chief executive of Novatel Wireless. “We look forward to working together with DigiCore to integrate their Ctrack software platform and our OBDII devices to enable a host of telematics tracking and monitoring capabilities.”

DigiCore says the combination of Novatel’s technology with its own will “provide a new level of value” to customers.

“As we have already proven with almost one billion driver behavioral kilometers analyzed, the use of telematics in the insurance market will be a growth driver for the industry, as our insurance customers move towards determining insurance premiums by taking into account aspects such as driving behavior, location and time of travel,” said Deon du Rand, the chief technology officer of DigiCore.

Novatel claims that drivers can easily install its devices in a matter of minutes by inserting them into the OBDII ports of their vehicles.

The company recently reported a surge in adoption of its M2M products, particularly in the fleet management and asset tracking industries, with M2M revenues up by 4.1%, to $10.3 million, during the three months ending August 2013, compared with the same period the year before.

Nevertheless, overall sales fell by 11.1%, to $91.12 million, over the same period owing to weaker demand for Novatel’s range of mobile computing products.