Toyota, Ford, iHeart, Pandora, and lemmings

As you probably heard, Toyota issued a teaser news release confirming that they will be integrating iHeart Radio into future models of Toyota vehicles. That is great news. However, the details of exactly how they will do it are still not revealed. Judging from past announcements from Ford about Pandora and Stitcher, BMW about Radiotime, and Smart about the Smart Drive app for iPhone though, it is a safe bet that if it ships in 2011, it will be a tethered solution, requiring the user to "dock" their smartphone with the auto. Now, we all know how I feel about tethering (it is a poor consumer experience that will prevent a truly mass market), but for 2011 it is the only real choice. This is because the car electronics shipping now were defined, at best, 18 months ago and more typically, 36 months ago. At that time, data plans were about $60 per month - far out of band for the typical consumer. Now, driven by the tablet market (thank you again, Steve), dedicated data plans from Verizon, T-Mobile, Sprint, and AT&T are dropping like rocks. The $20 plan for 1GB from Verizon is very reasonable for a dedicated Internet connection in the car. One that would allow the typical commuter to enjoy off-board navigation, local search, social networking, and, of course, Internet radio. This pricing opens real possibilities, but it is unclear how automakers will leverage the potential.

The route that automakers will take in 2011 is not a mystery. They will use tethering to bring smartphone apps into the dashboard. Resulting in some functionality for the consumer but leaving each car looking eerily like the other while they all ape my smartphone. The question really is, what will automakers do for 2013 and beyond? Will they continue to jump like lemmings off the cliff while they chant the mantras of "tethering" and "app stores"? Or will they push beyond to create unique Internet solutions in the dashboard that present compelling, differentiated Internet radio experiences? As I keep saying, the driver needs to be able to power on, turn the knob, and enjoy great music without having to worry about getting their phone set up before they turn the key. This same ease of use needs to apply to all connected services in the car. A combined automotive experience for the dashboard, including Internet radio, will require about 800MB of data per month. $20 per month is pricey, but it is within the upper bounds of consumer acceptance. It enables a new way of thinking about Internet in the car.

Ford seems to be aggressively trying to rebrand their company as a consumer electronics company. Headlining at CES, CTIA and other unusual venues, Ford wants to become associated with those rocketing markets instead of the PR-impaired auto industry. Judging from the relative valuation CE and mobile companies (think Apple) I think that is a brilliant, if difficult, move. The other automakers see this leap and are marshaling their own effort to tap into the content/electronics/mobile/apps enthusiasm. They are all looking for their own "SYNC killer" in the same way that tablet makers are looking for iPad killers. Toyota's announcement, for example, indicates that this is a teaser for CES 2011, showing their own intention to increase their branding in the consumer electronics market. However, desire and intent do not guarantee success. Will automakers deploy "me too" solutions that stagnate on tethering and apps or will they leapfrog the current Ford SYNC and create solutions for the car that are truly tailored to the unique capabilities of the car platform: unlimited battery power, no weight limits, far more accurate sensors, and, of course, great sound.

Will automakers embrace the possibilities and move towards KITT? or will they shrink back give us Nokia terminal mode at 2 frames per second? The future is being written right now.

Streaming to iPhone, I guess I have to care

Technology purist, stand aside! Streaming radio to the iPhone is important.

Back before Apple released the 3G iPhone, I derided the attempts to stream to iPhone. In my defense, my criticism was justified at that time. However, the facts on the ground have changed and now I must sing a different tune.

Case in point, Radio NRI had been streaming for months using standards-based 3GPP format to Sprint and AT&T phones as an off-deck solution. The results were less than stellar and the percentage of total listeners using the mobile streams was negligible.

Then in July, AOL Radio released their AOL Radio app for iPhone. As of October, an estimated 10% of the listeners enjoying the Radio NRI streams on AOL Radio were on the iPhone. 10%! That is a huge percentage considering the relative market share of iPhone. Yes, iPhone shipments are surging, but they still form potential audience that is an order of magnitude smaller than the broader multimedia phone market. At street events this summer, people would walk up to the Radio NRI booth with their iPhone saying "I found you guys here, this is amazing, I was just listening to Bollywood Classic Hits in my car using my iPhone."

What makes the popularity of iPhone radio applications so surprising is that they are generally using MP3 to deliver their streams. In general, MP3 is way too fat for mobile streaming and the streaming protocol it uses is not at all suited for reliable listening. Nonetheless, iPhone users are eating it up.

This audience has two big things going for it. First, the iPhone is dead easy to use. Do a side by side of trying to tune into Tuner2.com on your Sprint multimedia handset (even on the lauded Samsung Instinct!) and then try to use AOL Radio on your iPhone. The comparison is like night and day. Using a dedicated radio app on an iPhone is much easier than navigating through your multimedia phone's clumsy UI.

Second, the iPhone user is motivated. They whole reason they bought the phone was to access the Internet, enjoy media, and to download custom apps. This motivation makes it natural that iPhone users would want to enjoy Internet radio on their iPhone. A perfect match.

So here I am, eating a bit of crow. To repeat the words of Stephen Colbert, "the free market has spoken." Internet radio on iPhone is a key audience for all broadcasters. Now they need to work to deliver iPhone apps that get beyond the crappy MP3 streaming and start delivering quality audio over reliable transports.

Stay tuned...

AT&T's ulterior motive - 3G vs. WiFi

All hail! AT&T has given all the iPhone users free WiFi access inside their hotspot network at places like Starbucks. Pretty cool, huh?

Not so fast... While this may seem like altruistic behavior, it is just good business. 3G data is pretty darn expensive to deliver. If an AT&T customer with a dual-radio device, like an iPhone, is within range of their WiFi network, then it saves them a ton of cash to move that user onto the WiFi.

So, while it is definitely a nice capability for users, don't think AT&T is doing you a favor. They are just reducing their costs. On the other hand, if they suddenly enable VoIP over that free WiFi, the rules really would start changing.

Ford and embedded Bluetooth streaming

Even though this video is a blatant ad for Ford Focus, it nonetheless shows what I have been talking about. The built in stereo Bluetooth receiver allows you to establish a stream on your phone (assuming your phone has a data plan) and then play it back through the car speakers.

As a side note, it would be interesting to do some testing on the interaction between the low-quality of the Bluetooth codec (SBC) and low-quality streaming codecs like Windows Media audio. In any case, the buzz is that SBC doesn't quite cut it, so folks like APT, Kleer, and Qualcomm are creating alternative wireless solutions. Both APT and Qualcomm aim to work over Bluetooth transport, which, in my view, makes them more attractive.

IP radio = standard car option?

Sorry to disappoint, but I don't see Internet radio as being a standard feature in US cars anytime soon. However, that doesn't mean that the use of Internet radio in the car won't become widespread. It will just take a different path.

Legal requirements for handsfree operation of phones while driving is pushing adoption of Bluetooth in the car. Conversion kits will give way to standard option Bluetooth, likely with A2DP (e.g. stereo audio) support. This means that instead of native devices, the route for Internet radio into the car is a docked cellphone.

The choice of Bluetooth connecting docked phones is also driven by the economics of alternative solutions. To have widespread adoption, you need a standard. Yes, MPEG-4 HE AAC over RTP is the standard for streaming Internet radio to vast millions of mobile phones. However, the means of getting IP connectivity to the car are varied, causing the need to purchase some kind of custom device for each carrier. If you are going to spend money on a new connection device, why not just dock the phone in the car? I know there is growing interest in 3G to WiFi routers out there which will make your car a roaming hotspot using a 3G dongle or PCMCIA card, but that still doesn't solve the last 3 feet problem of connecting to the car speakers.

A final driver for the Bluetooth A2DP route is that the 3G carriers in the USA don't have a consumer friendly business model for non-voice device connections. In other regions (e.g. Japan), device makers can release a data-only device which uses the wireless data network. I have also heard of these kind of devices in the EU, using GSM for remote monitoring applications. However, the dynamics of the US market don't seem to go that way. WiMax won't cut it, even if it gets deployed. WiMax only works in metros and people want a radio that works at least nationwide - you would need 3G and 2.5G support in the radio. My Sprint or AT&T music phone will that criteria just fine and my flat rate data plan on those phones is $15/month.

Bottom line, unless the carriers make a joint push with device makers for a data-only IP radio and a standards body approves the profile (3GPP in cooperation with NAB would be a good choice), docked phones using A2DP are the most likely near to mid-term scenario. The only real downside with this solution is that the SBC codec used by default on A2DP phones has quality issues. For IP radio, though, the benefit of getting the stream you want will definitely outweigh this quality limitation.

Success with Sprint Power Vision

May 2006 - I dumped Verizon and got a new contract with Sprint. I had Verizon for over 3 years, but Verizon plays control freak on their network and won't even let you browse to HTML sites off the deck, let alone stream live audio content.

Sprint, on the other hand, gives you unlimited 3G Internet, including streaming, on the phone for just $15/month (Power Vision Access plan). Sure, that price doesn't include Sprint TV, or the other bundled content, but I didn't want that stuff. I just wanted the pure, sweet nectar of free flowing Internet. Sprint delivered. Also, since the EVDO network was just being rolled out in the major metros, the bandwidth would be the real thing.

Since I am a music lover, I purchased the Samsung SPH-A920. $149.99 with a two year contract. Similar phones available now are much cheaper (more on that in a later post.) The cool thing is that all Sprint Power Vision EVDO phones are 3GPP enabled, complete with aacPlus audio. This means that if a content provider knows their stuff, the streaming audio won't sound like it is underwater or coming from a tin-can.

Phone in hand, the next step was connecting it to the car. Since my 2002 PT Cruiser still has a cassette deck (yeah, I know...), I could use a $10 cassette adapter. However, I still needed to connect it to the phone. This is where things get tricky. I needed an adapter to go from the 2.5mm stereo/mic jack to a common 3.5mm (1/8") stereo jack. Sprint didn't carry them at the time, but luckily I was able to pick one up from the local Cingular store.

Adapter in hand, I connected the phone to the car, typed the Groove Salad url into my media player, and blammo, I had high-quality, untethered, Internet radio right in my car! The quality was even better than most XM Radio channels and I didn't have to pay an extra subscription. Listening to streaming radio drained the phone's battery, but a $30 car charger solved that problem. Very nice!

Not bad for May 2006. However, looking at my feature list for the Ideal Internet Car Radio, a couple problems remained:

• EVDO wasn't yet deployed wide enough for reliable listening over long distances.
• The phone was over $99.
• Available free content was pretty limited.
• Tuning into a radio station was pretty painful. (send yourself an SMS from the PC, or manually type in the URL. How do I text in a 'slash' again...?)

Fast forward to Summer 2007. Thanks to Sprint, EVDO now covers all major population areas and major transportation corridors. Thanks to Samsung, Motorola, Nokia, and Sanyo, aacPlus 3GPP-enabled phones are available for much lower prices. Thanks to Tuner2, there is a single point of tuning for high-quality Internet radio on the mobile phone. The content list isn't huge, but it is growing. And in the next couple of months it will grow like crazy once stations catch on to the untapped audience. Using Tuner2 mobile on my A920, today I drive around Southern California enjoying Internet radio, free and clear.

Things are looking good, but all is not sun and roses. In the next posts I will share some specifics about my LA driving tests, a long-distance drive through farm country, share a longer list of compatible phones, and talk about some issues you may encounter connecting the phones to your car.

-fred jackson