Connected-car services from Sprint are set to become available to Canadian consumers thanks to a new tie-up between the US operator and Canada’s Rogers Communications.
The partnership will allow Sprint (Overland Park, KS, USA) to offer its Sprint Velocity-branded range of in-car infotainment and telematics services over the Rogers (Toronto, Canada) network.
The tie-up essentially means that carmakers can introduce Sprint Velocity in the Canadian market, taking advantage of the connectivity service provided by Rogers.
“Canadians want to be connected from anywhere, at any time, and with over 20 million vehicles on the road in Canada there is a strong growth opportunity for Rogers in the connected auto segment,” said Mansell Nelson, the vice president of advanced business solutions for Rogers.
“Sprint Velocity will bring to Canada the ultimate connected car experience on the road, with a combination of smartphone, tablet and in-dash capabilities, while also delivering safety features and communicating vehicle maintenance information seamlessly to manufacturers,” he added.
Sprint Velocity features a number of connected-car services, including infotainment, navigation, climate control, security, emergency services and vehicle diagnostics, and also provides connectivity for mobile devices used within vehicles, such as smartphones and tablets.
The product illustrates how many operators are trying to become more than just M2M connectivity providers and move into other parts of the value chain, where the opportunity to grow revenues is much greater.
Sprint has been rolling out Sprint Velocity in the US but the deal with Rogers will open up a major new geographical market for the company.
Analysts reckon there will be nearly 100 million connected cars in service globally by 2016, and say the connected-cars and transport sectors will account for a substantial share of overall connectivity revenues generated by M2M services by 2021.
The agreement should also help Rogers to diversify its business.
The operator now claims to support more than one million M2M connections and says it is eager to form partnerships and network agreements that will allow it to play a bigger role in key vertical markets, including automotive, healthcare, retail and managed services.
“Rogers is Canada's largest wireless network operator by number of subscribers and has established itself as a leader in delivering M2M and wireless business solutions to the Canadian market,” said Tony Olvet, group vice president of research for IDC Canada. “This new agreement with Sprint will position Rogers well for the next phase of meaningful growth.”