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Why Your Next Gadget Will Be a Connected Car

What few seem to have learned from CES is that the next big connected gadget isn't a $400 smartphone; it's a new $30,000 automobile.

January 12, 2012

Driving slowly down the Las Vegas Strip, your car's heads-up display paints a softly glowing yellow line in front of you. Ahead, the Treasure Island casino appears. More information spills open on your passenger's HUD, revealing contact information, reviews, and a Web site.

Two days later, and you're back in San Francisco. As you whiz down the Embarcadero, an icon reminds you that Teatro Zinanni is closed, and asks to place a reminder of its reopening on your calendar. A parking spot opens up, and you pay, right from your car.

Sound preposterous? It isn't. An in-booth demonstration of , where information could be "swiped" from one front-seat HUD to another, blew people away at this year's Consumer Electronics Show. And Mercedes-Benz's own simulation of the future drew lines.

What few seem to have learned from an otherwise quiet CES is that the next big connected gadget isn't a $400 smartphone; it's a new $30,000 automobile, with its own apps and services.

And why not? The American automobile is our second living room. We commute in it, take vacations in it, carry the kids to and from school in it. We customize cars, socialize in them, listen, and watch music, podcasts, TV shows, and music. We do everything we do in our living room, except that the driver has to keep his or her eyes on the road.

So what will the connected car offer that our FM or satellite radios won't?

Well, start with the following top brands. Each has its own connected strategy, trading additional monthly services for a small monthly (or annual) fee: , , Mercedes, , , and .

Fine, you might say. I can now listen to Pandora on my radio, or do a quick local search on my navigation system. Why should I pay for that, when I can do the same on my phone?

For one thing, the convenience factor. Frankly, I fail to see how tapping away at a keyboard can be illegal, while fumbling with a control knob, joystick, or keypad is perfectly acceptable. Both are examples of distracted driving.

Speech recognition is this problem's answer, however, and car makers have either licensed or invested heavily in developing the necessary technology. Apple's Siri, Android, and other smartphone apps are nearly there, but they haven't quite bridged the gap between the phone and the car speakers. (Look for aftermarket OEMs to tap into the phone, while automakers push their own cellular connectivity.)

Who pays for this? Probably you
The problem, of course, is that this means another bill.

By now, most consumers have accepted a basic level of connectivity, even as they grumble at the costs. It's safe to say that virtually all U.S. consumers pay for some sort of TV subscription and phone service, either mobile, landline or both. Most include an Internet/data plan as well. All told, that's probably well over $100 per month.

For many of us, purchasing a luxury automobile is way out of reach, and the choices others will wrestle with (the Mercedes? the Audi?) won't be available to those of us who drive our older econoboxes to and from work.

Over time, though, this technology will ease its way into the mainstream, then low-end cars. Aftermarket specialists will also be there for those who want to add the latest technology, now.

People may scrimp and save here and there, but Twitter posts and Facebook updates are rapidly becoming as accepted as, well, the car is in American culture. And, when it comes time to replace the family van, Mom and Dad will have to wonder, "Do we opt for the augmented-reality package, and pay yet another bill?"

And that's really the crux of the matter.

No, there aren't many shortcuts. Integrating Verizon LTE cellular technology into a OnStar connected device doesn't mean that a consumer with a Verizon phone will be able to tie it in with his or her existing bundle of services. That will likely hold true even if Verizon implements . Instead, your bill will still go to Ford, or Pandora, or whatever services you choose. And unless the manufacturer picks up the bill, mobile services generally cost extra, unless geo-located advertising picks up the tab.

Even if, by some miracle, AT&T, Verizon, or T-Mobile do separate out the car's connection fees, a whole new Pandora's Box opens up. How much does the choice of carrier influence your choice of car? How significant are two wireless bills, rather than just one? Should you opt for a CDMA technology to ensure ubiquity of coverage, as Mercedes is doing, or turn to LTE, and its higher data rates?

I hate paying bills. Additional fees irritate me. But if carmakers, app providers, and aftermarket OEMs can justify the additional costs with compelling, near-magical driving experiences, the American driving public will dig deep and justify another bill.