Thursday, March 14, 2019

EC Chooses Wi-Fi Standard, Rather than 5G, for Vehicle Communications

The European Community has chosen (at least for the time being) the Wi-Fi-based ITS-G5 standard over the mobile-backed C-V2X standard for vehicle communications.

The decision means the EC, if it sticks with the decision, might move ahead with a standard not backed by industry in the United States and China, where C-V2X, using mobile networks, are preferred.

The two different vehicle communication standards--one based on Wi-Fi, the other on 5G--have split the global auto manufacturing industry.


The debate also splits the auto industry. C-V2X supporters include BMW, Daimler, Ford, PSA Groupe and SAIC Motor, as well as Deutsche Telekom, Telefonica, Vodafone, Ericsson, Huawei, Intel, Qualcomm, Nokia and Samsung.

The ITS-G5 supporters include Volkswagen and Toyota.

Perhaps in large part, the decision was driven by a desire to move now, with a standard that is more developed, can be deployed earlier and might have cost advantages early on. One argument has been that ITS-G5 works in the absence of a mobile signal, but both standards work when there is no mobile network signal.

Moving early--even with proprietary or early platforms--has not been an unusual strategy in the computing or communications industries. Sometimes early time to market is viewed as conferring advantages.

But harmonized global standards almost always are preferred over separate and different standards in the communications business, for obvious reasons. Harmonization creates bigger markets, which allow for scale, which leads to lower cost and faster deployment. But it is not always possible.

In this case, rival standards have key backing, and Europe seems to have made a choice China and the United States will not follow.

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