Tata Motors and Bharat Sanchar Nigam Limited (BSNL) have entered into a Machine-to-Machine (M2M) agreement wherein BSNL will be supplying embedded SIM cards to the automaker to transform their cars into smartcars.
As per an agreement between Tata Motors and BSNL, cars from the Pune based automaker are slated to become smarter. This is a first of kind Machine-to-Machine M2M technology wherein embedded SIM cards from BSNL can be connected to the internet offering better fifth generation networks for quicker gain traction.
These M2M SIM cards come in with future ready 5G capability over next year and offers communication between wired and wireless devices via sensors and applications. BSNL has already started these supplies to Tata Motors with over 5 lakh SIM cards already provided with another 10 lakh SIM cards to be supplied over the next year.
Smart cars do not entail autonomous or self driving but offers internet connectivity for services such as real time traffic updates, safety services for emergency response along with an improved navigation system.
With this new alliance with BSNL, Tata Motors will convert models such as the Tiago, Nexon, Tigor, Hexa and the recently launched Harrier SUV into smart cars. Through this new alliance, BSNL also expects sale of over 50 million M2M SIM cards with 5G capabilities over the next year primarily to automobile and home automation sectors. This in turn will result in revenue of Rs. 20 per month from each SIM card which will related to annual revenue of Rs.1,200 crores.
The introduction of smart cars in the market will allow Tata motors to compete more efficiently with other automakers such as Maruti Suzuki, Hyundai and Mahindra while offering connected services to customers that could even include weather updates and facial recognition.
This M2M SIM from BSNL will not only be used in smart cars but will also be used for controlling various devices such as smart electric meters, surveillance cameras, child tracking devices and household appliances besides monitors and sensors.