Deutsche Telekom (DT) today announced it is forming a joint venture with China Mobile for a strategic connected car initiative.
DT will provide “telematics expertise, the Connected Car platform technology and customer insights.” China Mobile will provide its massive scale in network coverage, subscriber numbers and resource channels.
The JV is expected to begin operation in the beginning of 2015. DT and China Mobile will each own 50 percent.
“Connected Car is a strategic initiative within Deutsche Telekom Group, while China is of strategic importance for our Connected Car business. The partnership with China Mobile is therefore strategically of utmost importance to Deutsche Telekom,” Reinhard Clemens, DT board member, said in a statement.
The JV will work on localized development, hardware, cloud platform, system integration and operation, as well as content service for both LTE-enabled production models and retro-fit vehicles.
Behind the JV’s connected car efforts will be China Mobile’s burgeoning LTE network and the potential interest of carrier’s over 800 million subscribers.
It’s unclear how much DT is putting up but Reuters pointed to a German newspaper report quoting Clemens, stating that DT’s investment will be in the “double-digit millions.”
A Strategy Analytics survey found most Chinese people use apps while driving and have strong interest in practical driving information like real-time traffic updates.