Technological advancements are transforming different industries, and the automotive industry is no exception. While mechanical hardware continues to be important, advanced software in vehicles is helping owners enjoy a better in-vehicle experience, whether it's used for navigation or diagnostic checks. Vehicles running on complex software-defined systems, or software-defined vehicles (SDVs), are reshaping the future of the automotive industry, and over-the-air (OTA) connectivity is playing a crucial role in updating software to improve vehicle performance, safety and comfort over an extended period of time.
With the era of the Software-Defined Connected Vehicles (SDCVs) set to take off, SoftBank Corp. (TOKYO: 9434) is teaming up with Cubic Telecom, a Dublin-headquartered leader in the field that delivers advanced SDCV solutions to automotive, transportation and agriculture original equipment manufacturers (OEMs) around the world. Both companies announced that SoftBank will invest approximately 473 million euro in Cubic Telecom to acquire a 51.0% equity stake in the company. They also said they will form a strategic partnership to pioneer the future of SDCVs and other high-value Internet-of-Things (IoT) assets, such as motorcycles, heavy goods vehicles, commercial fleets, agriculture vehicles, heavy machinery and drones.
After the transaction closes, Cubic Telecom’s current CEO Barry Napier will continue to lead the company, and Daichi Nozaki, SoftBank's Senior Vice President responsible for its global business, and two other SoftBank appointees will join Cubic Telecom's Board.
About Cubic Telecom
Cubic Telecom CEO Barry Napier (left) and COO Shane Sorohan (right)
Headquartered in Dublin, Ireland, Cubic Telecom delivers advanced software-defined connected vehicle solutions in over 190 countries and regions around the world. Working with the world's leading automotive, transportation and agriculture OEMs, Cubic Telecom connects 17 million cars and vehicles globally and enables 1 billion mobile internet data transmissions daily.
Learn more here.
A massive opportunity that comes with considerable challenges
According to McKinsey & Company, 95% of new vehicles sold globally will be connected by 2030, and connected car use cases alone could deliver 250 billion USD to 400 billion USD in annual incremental value for the vehicle ecosystem. Despite the huge opportunity, automotive OEMs must contend with a number of challenges to compete in the SDCV market. While connectivity is key to the future of SDCVs, it is currently mired in complexity. Difficulties include dealing with regulatory requirements in different jurisdictions, negotiations with mobile network operators (MNOs) and integration and management for each country or region.
Cubic Telecom’s global connectivity platform is unique in that it can connect and manage connectivity in more than 190 countries around the world with one integrated platform. This reduces complexity and enables more flexibility on connectivity for OEMs, which lets them take advantage of the enormous commercial opportunities in the SDCV era.
Collaborating on sales and new solutions
As one of its key strategies, SoftBank has been continuously investing in its global IoT connectivity business, and recently announced a major expansion into Asia-Pacific markets. In this new strategic partnership with Cubic Telecom, SoftBank will be able to make a full-fledged entry into the rapidly growing IoT markets for connected cars and SDVs, giving it access to new revenue-generating opportunities. SoftBank has an extensive customer base in Japan and other Asia-Pacific countries and regions, and as part of the collaboration, Cubic Telecom will gain access to new sales channels to further build on its leadership position.
SoftBank and Cubic Telecom will also look at ways to generate synergies and develop new services. One area under consideration is the utilization of satellite and stratospheric-based Non-Terrestrial Network (NTN)-based solutions, which can provide seamless connectivity to vehicles in areas that cannot be reached by traditional ground-based networks.
Junichi Miyakawa, SoftBank’s President & CEO, said that he looks forward to working with Cubic Telecom to “build connectivity platforms for next-generation social infrastructure,” and Barry Napier, Cubic Telecom’s CEO, described the opportunities ahead for both companies as “endless.”
For more information, see this press release.
(Posted on December 6, 2023)
by SoftBank News Editors
