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PARK RIDGE, ILL. - The auto industry's move toward a universal cell phone platform got a shot in the arm last week, as Motorola signed an agreement with Cellport Systems (Boulder, Colo.) to adopt a technology that enables almost any cell phone to work hands free in an automobile.
The agreement reflects a growing desire among automakers to move toward a new telematics business model that would allow drivers to use their existing mobile phones in vehicles without signing up for separate cell phone service contracts. At the same time, it would meet the dictates of pending cell phone laws by means of advanced cradles that offer hands-free dialing, sophisticated voice recognition and the ability to dock any brand of phone inside.
"You just can't ignore the reality that people bring cell phones into their cars and want to use them there," noted Tim VanGoethem, director of strategy and business development at Motorola Inc. (Elk Grove Village, Ill.).
Cellport executives said they expect the deal to profoundly affect cell phone use in automobiles, despite recent industry events suggesting that the telematics market is struggling to find a workable business model right now. "This is the birth announcement of the second generation of telematics," said Patrick Kennedy, chairman and chief executive officer of Cellport Systems. "Our common goal is to move as fast as we can to go from the current telematics penetration level of 5 percent to a penetration level of 50 percent-plus."
The deal does not rely on any far-reaching visions of Internet capabilities in automobiles, but rather, provides a meatand-potatoes means to boost growth of safe mobile phone in vehicles, industry analysts said last week. In that sense, it may...