Telit Wireless launches automotive telematics business

April 02, 2014 // By Christoph Hammerschmidt
Having concluded the acquisition of the Automotive Telematics On-board unit Platform (ATOP) business from NXP Semiconductors, M2M technology provider Telit Wireless Solutions now announced to leverage this platform to offer telematics services for automotive OEM and tier ones markets. For this purpose, the company has launched Telit Automotive Solutions, a business unit focusing exclusively on Automotive OEM and Tier-one markets.

ATOP is an automotive grade solution for vehicle manufacturers to implement eCall or similar functionality from a single package. Through the acquisition of the platform, Telit as well as its customers potentially benefit from a reduction in complexity and costs in vehicle designs, customer data as well as regulatory compliance.

Telit plans to integrate the ATOP business including sales, engineering and support staff into its new business unit, expanding its market reach with solutions leveraging the engineering and sales expertise of both former entities, in particular in software-centric RFIs from Automotive and Telematics OEMs. The company achieved automotive-critical global ISO/TS16949 certification in July 2012 and maintains one of the industry's largest product portfolios for the automotive sector with emphasis on advanced technologies such as LTE and HSPA+. The new organization will be headed by industry veteran and long-time Telit executive, Dominikus Hierl as its CEO.

In the course of the acquisition, Telit also appointed Lars Reger, Head of Chip Development and General Manager for New Business in NXP’s automotive business division as a non-executive director of Telit.

Industry analysts position automotive as the strongest growing segment for M2M over the next few years. According to ABI Research, module shipments to automotive OEMs are expected to grow from 6 million units in 2013 to 30 million in 2018. Regulatory initiatives like eCall in Europe, ERA GLONASS in Russia, or DENATRAN 245 in Brazil lend further credibility to the strength of the sector along with the much publicized “connected car” trend which is likely to lead to 100% penetration of the technology in the very near future.

With the move, Telit Wireless puts the pieces together to establish itself as a major player in the upcoming 'Internet of Things - Automotive flavour'. The company plans to offer a multi-service capable platform that supports multiple services including vehicle location & tracking, remote starting and diagnostics as well as business applications like fleet management.