Verizon launches IoT platform — Connected cars could cost consumers’ privacy — AIG offers insurance for enterprise drones

Verizon launches IoT platform — Connected cars could cost consumers’ privacy — AIG offers insurance for enterprise drones

BI Intelligence

VERIZON LAUNCHES IoT PLATFORM: Verizon became the latest major tech company to launch an IoT platform for managing IoT devices and building IoT applications on Wednesday, according to a press release. IBM, Amazon Web Services, Salesforce, SAP, and Microsoft have all launched IoT platforms as well.

Verizon’s platform, called ThingSpace, provides tools for developers to create, test, and deploy applications for IoT devices. It also provides tools for managing IoT devices and the data they generate, as well as Verizon’s own internal analytics engine to help gain insights from that data. Verizon will hold a hackathon in December in Boston where it will make the platform’s APIs available to developers.

Along with the platform, Verizon announced initiatives to lower the cost of providing connectivity for IoT devices through its 4G LTE network:

• Verizon introduced a new chipset that connects IoT devices to Verizon’s 4G LTE network that costs half as much as traditional 4G chipsets used in smartphones and tablets. It also said that it would be rolling out more 4G chipsets for IoT devices in 2016 that will be even cheaper. This will help lower the cost of IoT devices that use 4G LTE connectivity.
• Verizon also announced a new network core for IoT devices leveraging its LTE infrastructure. This will help Verizon offer an alternative network that will be launched in the first quarter of 2016 for connecting low-power IoT devices like sensors. Normally, it isn’t worth paying for a 4G data plan to connect such devices because they transmit very small amounts of data at intermittent periods. The new network that Verizon is building will be designed to handle those smaller data transmissions at a lower cost to Verizon and its customers, creating a more cost-effective network.

Verizon has already made nearly $500 million in revenues from its IoT and telematics businesses already this year, according to their latest earnings report. The new platform and cheaper networking offerings should help Verizon grow those businesses over time.

THE PRIVACY IMPLICATIONS OF VEHICLE-TO-VEHICLE COMMUNICATIONS: Vehicle-to-vehicle (V2V) communications can help cars on the road relay their precise location to each other to help avoid collisions, but the technology could also make it easier for governments, enterprises, and hackers to track connected vehicles’ exact location. Researchers from two European universities recently demonstrated how they could track cars using V2V communications protocols with radio modules and antennas as the cars traveled around a college campus, according to WIRED. With more radio modules and antennas, someone could track all of the vehicles traveling around a small city at the cost of less than half a million dollars, the researchers said.

V2V communications could prevent up to 81% of car accidents, according to a study by the National Highway Traffic and Safety Administration (NHTSA) that was cited by WIRED. The NHTSA announced last year that it is looking into mandating V2V communications in all new vehicles by 2017. BI Intelligence estimates that 22 million connected cars will be shipped in 2017 that could be covered by that mandate if it’s enacted.

V2V communications will also be one of the foundational technologies for the development of self-driving cars, allowing self-driving vehicles to communicate their position and speed on the road to prevent collisions.

Privacy remains one of the biggest barriers to IoT adoption in general, and this example shows how that applies to connected vehicles. Although V2V technology offers clear safety benefits, it could also open the door for governments, enterprises, or even criminals to track cars’ locations. Other IoT devices like sensors, wearables, connected cameras, and voice-controlled smart home devices could be used to constantly monitor consumers’ movements and conversations without their consent or knowledge. That potential for constant monitoring and eavesdropping could turn consumers off to IoT technologies unless regulations and penalties are put in place that prevent the collection and sharing of data from these devices without users’ consent.

Graph: Estimated Global Connected Car Shipments

AIG OFFERS INSURANCE FOR DRONES: AIG is now offering insurance to enterprises that use drones for commercial purposes, according to Fortune. The insurance policies cover physical damage to the drones if they’re involved in a collision, and covers liability expenses resulting from a collision. It also offers optional coverage for damage caused by hacked drones.

Right now the policies will cover drones that weigh up to five pounds and have a wingspan of three feet or less. AIG is covering drones used for aerial photography and other commercial done uses, as well as drones used by government organizations to perform tasks like search and rescue missions in natural disasters.

Very few insurers currently offer coverage for drones because there is little historical data about drone collisions and accidents to help determine the cost of premiums for drone coverage. This could be a barrier for enterprise drone adoption, as enterprises will likely be hesitant to fly large numbers of drones without insurance coverage to protect them from the potential costs of an accident.