RDS-TMC's Days Are Numbered, Even Though It Is Finally Bringing Traffic Data to Devices

ABI: RDS-TMC (Radio Data System - Traffic Message Channel) is the most popular method of delivering traffic data to portable devices today and, due to its cost-effectiveness, it is rapidly gaining traction in North America as it has across Europe. But is its popularity fleeting? In late 2006 and early 2007 we expect to see very strong demand for traffic services over RDS-TMC in North America. We believe that RDS-TMC represents an excellent value choice today and in the near future, but it won't necessarily have sufficient bandwidth for some of the more dynamic applications that will appear later. Those applications include more comprehensive flow data, and expansion of coverage from primary highways to secondary and tertiary roads. It seems clear that more bandwidth will be needed but what the preferred conduit for that extra bandwidth is, is an issue that's still up in the air. New digital formats such as DMB-T and HD-Radio will allow broadcasters to offer the bandwidth, but they are not yet being used for traffic information. Broadcasters must keep next-generation traffic offerings competitive in cost if they expect to hold off competition from satellite radio and cellular data. Navigation vendors looking to the future have several dilemmas when considering alternatives to RDS-TMC. Which of the several alternative methods has the best chance of being the primary replacement for RDS-TMC receivers? Would an early move to one of these new technologies improve a vendor's market position? Or is this a transition that can wait until prices start to fall? And how quickly will improved sources of traffic data come on line? Automotive Infotainment Research Service,

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