Satellite-tracked pay-as-you-go road pricing schemes could be in place in the UK within four years, with the potential to deliver significant businesses benefits.
Such systems would see all cars installed with a black box device to track journeys and charge drivers according to when and where they travel.
Proposals have received mixed reactions from consumers, but businesses are keener.
Many transport organisations have already installed location-based technology to improve the management of their fleets and to cut costs through improved route planning.
Insurance premiums may also be reduced. More Than insurance is following the lead of Norwich Union (Computing, 11 May) by piloting black box technology to track cars and charge for premiums based on where and when people drive their car.
Bryan Turner, head of the Drive Time policy at More Than, says the technology is already mature in some businesses and the government plan could bring it into the mainstream.
‘Satellite tracking would not just be used to determine road pricing but also for tracking of company fleets and improving emergency responses,’ he said.
‘If every car had tracking devices installed at a manufacturing level it could then be used for a wide range of applications.’
The Highways Agency is also looking to use technology and new innovations to manage future transport needs. It believes the development of intelligent satellite tracking systems could advise drivers not only of the quickest but also the cheapest route, and inform on traffic conditions and accident updates.
This would require the integration of in-vehicle tracking systems with the Agency’s national traffic control centre, which monitors the road network through 1,730 CCTV cameras and 4,450 traffic sensors.
But Turner says cost is still the main barrier to businesses installing telematic systems.
‘A satellite navigation unit can cost between £500 and £700, but installing it at a manufacturing level and widespread use would bring down installation and retail costs,’ he said.
Ovum principal analyst Jeremy Green says such activities are unlikely to be a significant barrier,and believes the most important element is for all telematics technology to be integrated.
The AA Motoring Trust’s head of road and transport policy Paul Watters says despite the benefits of satellite tracking as part of a national road pricing scheme, it could still face public opposition.
‘People do not like the idea of being tracked from their front door and privacy will be the biggest barrier,’ he said.
‘But cost is also a factor and the cost of introducing road pricing on a national scale is frightening. It could cost tens of billions and maintaining it as much as £1bn a year.’
Watters says the best chance of success is by offering drivers and businesses something in return for tracking the vehicles.
‘The reason it has been popular at insurance firms is that it offers cheaper premiums in return for being tracked,’ he said.
In-car tracking. . . in 30 seconds
z A leaked letter from transport secretary Douglas Alexander earlier this month revealed government plans to push for powers to impose road pricing schemes in cities and on trunk roads, with hopes for a trial in place by 2010.
z Insurance giant Norwich Union operates one of the largest in-car tracking pilots, with 100,000 drivers to install black boxes in their car by the end of the year and to be charged according to where and when they drive.
z Insurance firm More Than is also looking for 2,000 volunteers to take part in its own trial, with motorists to receive a reduction in premiums for not driving at risky times as opposed to being charged for distance travelled.
z In-car tracking is already a mature technology at many transport businesses, which install location-based technology in its fleet vehicles to better manage deliveries, routes and reduce time and costs involved.
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Further reading
In-car tracking trials extended
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