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Car shoppers test driving the 2003 Honda Accord this week need not worry about getting lost. If they do, all they have to do is say the word and the car will get them back on track.

The automaker will debut the 2003 EX model of the Accord, which along with new powertrain and side airbag features also includes what Honda Motor calls its Touch by Voice voice-recognition system. The Accord, 2001's best-selling car in America with about 415,000 sold, features a touch-panel display and in-car navigation system that the company upgraded to work with voice commands.

Telematics, or in-car communication technology, seems relatively new to most, and car makers around the world have made 2002 the year to unveil their network computing developments. Along with Honda's news, Toyota announced its G-Book Information Network last month. The subscription information network will offer services for PCs, PDAs and mobile phones starting October 1. The company also plans to roll out a new vehicle model featuring an on-board G-Book terminal this fall.

Voice Evolution

Honda's voice technology is the latest development of car makers' next-generation Satellite-Linked Honda DVD Navigation Systems - with a technology contribution from IBM's Automotive and Telematics Solutions. IBM worked with Honda research and development to develop its Embedded ViaVoice technology and software to support the car dealer's online navigation system.

"Telematics is part of how the computing world is evolving," says Raj Desai, director at IBM Global Automotive and Telematics Solutions. "In the future, cars will be connected to networks, and users won't be able to distinguish the difference between connecting from their office, their home, or their car."

Telematics enables hands-free and voice-activated commands, in-car computing, wireless Internet access, and emergency location-based services. The technology used for telematics combines the electronic systems in automobiles with satellite communications systems to provide features such as emergency calling, real-time navigation, and remote car diagnoses.

Still Growing

According to research firm Frost & Sullivan, European revenue for telematics hardware and services topped $1.11 billion in 2001, and the group estimates that market will grow to $8.05 billion by 2007.

But the North American market hasn't fared so well. The revenue in 2001 for hardware and service telematics reached only $900 million, but that number is expected to increase to $6.99 billion by 2007.

Earlier this year, Ford Motor and Qualcomm ended their telematics development to cut their losses. Apparently, car buyers found the $1,300 telematics add-on feature too much to swallow on consumer vehicles.

Going Wireless

Since then, Ford has said it would consider embedding technology, such as the Bluetooth short-range wireless connectivity standard, into cars' computing systems to eliminate the need for consumers to pay for an add-on feature.

Some telematics capabilities are available now from other car manufacturers in consumer vehicles on a limited basis.

General Motor's OnStar subscription services are available in vehicles from Acura, Audi, Buick, Cadillac, Chevrolet, GMC, and Saab, among others. Specific makes and models come equipped with OnStar OnBoard, and car owners can activate the services via a handset in the vehicle. Drivers are offered a choice of three service plans, including features such as stolen-vehicle tracking, remote car diagnostics and emergency services.

Gee-Whiz Factor

While the gee-whiz factor of telematics appeals to many, industry experts say the best way to sell such technology is with safety guarantees. According to Strategy Analytics Analyst Ian Riches, the safety benefits of GM's OnStar roadside assistance and emergency calling features are obvious, but telematics providers must find the safety angle for in-car navigation and traffic information systems to hit home with consumers.

The market for telematics in commercial vehicles is more mature, considering companies can deploy fleet management software to track the location of shipping trucks or avoid traffic to ensure timely delivery.

"This clearly could be done: Attempting to use a paper map or driving erratically, making last-minute turns while trying to find one's way are clearly not the safest ways to making progress," Riches says in a report. In addition, because some telematics systems involve the use of cell phones and PDAs, safety concerns about drivers handling them is another issue.

"Widespread bans on the use of handheld mobile devices will not stop the [telematics] market in its tracks, but they do represent a worrying development in potentially restricting the options for vendors," Riches says.

IBM Initiatives

IBM's deal with Honda is the company's latest telematics initiative, now available in consumer cars. And because the Accord's computing system can now respond to voice commands, IBM and Honda might avoid any safety concerns related to telematics. In the past, Accord drivers could access an in-vehicle navigation system by accessing data via the touch display. Now drivers can enjoy hands-free navigation.

The IBM Embedded ViaVoice technology is included in Honda's computing platform within the vehicle.

The car also includes an antenna and microphone to let the voice communications connect to a back-end system via a Global Positioning System satellite. Honda supports an IBM WebSphere Everyplace Server/Portal for Telematics download on the back end. Drivers access this system via a console in the car or by speaking.

The software recognizes about 150 English-language commands, such as "find nearest gas station" or "find nearest ATM." It also acknowledges several accents.

To activate the Touch by Voice system, drivers press a talk button on the Accord steering wheel and make a verbal request. IBM's technology is integrated into the car's audio system so the driver hears the computerized response over the car speakers.

The software will give directions to and from the specified address. The Touch by Voice voice-recognition system is designed to minimize the need for keyboard entry. The system also links to climate control systems for added driver convenience.

IBM's automotive health monitoring and remote diagnostics prototype is being showcased in the Chrysler Concorde.

IBM made news with telematics last year when the company signed on with Motorola to offer wireless and Web-based telematics services to drivers and passengers worldwide.

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