CSI Wireless expands telematics offering with second product line, Asset-Link

Calgary-based CSI Wireless Inc. is taking aim at a larger slice of the telematics equipment market with the release of its second product line for the burgeoning market. Already in the vehicle and asset tracking space with its older AssetVision line since October 2000, the newest product is the first in a family of lower-cost products that the company hopes will gain broad acceptance in the global marketplace. The telematics market is expected to grow significantly over the next several years, according to a recent Frost & Sullivan report. Last August, the U.S.-based research firm projected that the telematics equipment market would grow from 2000 levels of US$380 million to about US$7 billion in 2007. Even historical growth in the market bodes well where from 1999 to 2000, sales in the industry grew from US$60 million to US$380 million. The Asset-Link 100 is a lower-cost version of the AssetVision line with comparable functionality, and company executives believe that will translate into a broader deployment of its telematics system. AssetVision is designed for higher-end markets while Asset-Link will ship to lower-end segments, but in greater quantities. CSI has been successful to date selling its AssetVision family of products, signing major contracts with InterTrak and CNH Global NV last year (RoW, Jan. 22/01 and Dec. 12/01). The product combines the coverage of GPS and the cellular control channel of analog cellular networks, giving system-broad coverage across the majority of North, Latin and South America. But the company isn’t stopping at offering an analog version of the Asset-Link family of products. President and CEO Stephen Verhoeff tells Report on Wireless that future iterations of the product line will incorporate digital wireless technologies such as TDMA and GSM, and potentially CDMA. The addition of these technologies will enable, among other things, the introduction of interactive data exchange and more graphics-rich information to be sent between vehicles and the control centre, for example. While implementing digital technologies into its products is an important element of the company’s strategy, remaining focused on the existing analog platform is also a significant part of the business. "Telematics from our perspective and from most of our customers’ perspective, the most important thing for them is coverage, so that’s why we’re still focused heavily on the existing analog platform," Verhoeff explains. "But there are many (fleets of vehicles) in urban areas and many of them will want digital coverage and the carriers will want them to have digital capabilities as well." Increased competition doesn’t concern CSI executives Verhoeff recognizes that there is a growing stable of competitors but dismisses the majority of those companies as large system integrators that buy off-the-shelf systems. CSI sells its equipment into the commercial and enterprise markets for vehicle and asset tracking purposes. "If you dig deep into many of these telematics offerings, they are, by and large, a systems integration offering" where they buy a wireless modem, a GPS receiver, build their own controller board and slap it together, he explains. "The biggest advantage we have in the marketplace is that we own our own wireless technology. We have a clear technology roadmap that we’re pursuing, spending a lot of money on research and development in the wireless area." Despite increased competition and the downturn in the economy last year, CSI still expects to double its revenue for 2001 as compared to 2000 revenue. Verhoeff expects annual revenue to be in the $40-million range, which is a significant increase over the $26-million level posted the previous year.

CSI Wireless expands telematics offering with second product line, Asset-Link

News | 01/22/2002 5:00 am EST

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us