Transport Topics

Next Communications Epic May Open at a Fleet Near You

Cellular System From PeopleNet Is Designed to Keep Smaller Companies 'Intouch'

By Chris Brandt
Staff Reporter

Get ready for Truck Communications II -- the Sequel.

The original blockbuster starred Qualcomm, American Mobile Satellite Corp., HighwayMaster and the huge truckload carriers, which snatched up data and voice communication technology, spurring an industry revolution.

Billing for the sequel is more modest, featuring lesser-known technology providers selling less-expensive systems to smaller and less-sophisticated fleets.

Enter PeopleNet, a company in Chaska, Minn., offering a cellular-based communications and fleet management system called Intouch.

PeopleNet thinks it has the answer for fleet owners who haven't been able to see a return-on-investment in mobile communications so far.

"Only 10% of the over-the-road commercial trucks currently have mobile communication systems," said James P. Legus, chairman of PeopleNet. "We believe we will be able to significantly expand the market and equip a much larger percentage of over-the-road trucks."

Intouch's basic system -- which provides vehicle tracking -- costs under $1,000 per truck for hardware. Monthly service charges run from $35 to $85 per month per unit. That compares with hardware costs of $3,000 to $4,000 per truck for the leading satellite-based communication providers.

PeopleNet said it can provide cheaper service because it uses existing infrastructure for transmitting data -- namely, the nation's cellular and paging network. Nor does the company have the huge expense of launching satellites into orbit.

PeopleNet's Intouch consists of a messaging unit, global-positioning system device, cellular modem and fleet management software.

Data -- including text messages and GPS reports -- travel from the truck through the cellular network to PeopleNet's Minnesota headquarters. From there, the system relays the data -- via the Internet or direct connection -- to a personal computer in the fleet's dispatch center.

Windows-based software displays the truck's exact location on a map. The user may size maps to various levels of detail down to street level, and configure them to show the history of the truck's progress.

The software also contains a program for sending preformated or typed messages to the truck. Dispatch can send a message straight from the computer terminal.

The message display in the tractor measures a little over 6 inches by 4 inches by 1 inch. It does not have a keyboard, so the driver is able only to send preformated messages, such as "Pickup Completed," or "Need Tire Repair."

If a driver routinely needs to relay more complex information, the fleet may buy a cellular phone handset, an option with the system.

On the other hand, if fleets do not need to communicate with drivers, except for check calls, they may order the system without the messaging unit.

The price seems right for PeopleNet, but what is the cost of low price?

For one, there's the coverage issue.

The nation's cellular infrastructure is built around urban centers and still suffers large gaps in rural areas, particularly in the mountains and deserts of the West.

If dispatch truly needs to know the location of all its trucks at any time, satellite-based systems may be a better answer.

Also, at this juncture, Intouch cannot pass along vehicle operating information such as engine or refrigeration parameters.

John Roy, PeopleNet's vice president of marketing, said the system has the hardware interfaces for collecting and sending this kind of information but programmers have yet to write the software links.

Moreover, it lacks interfaces with the widely used dispatch software systems from Innovative Computing Corp., TMW Systems and Tom McLeod Inc. Correcting this is a priority project, Mr. Roy said.

Despite these shortcomings, Q Carriers, a 125-unit truckload fleet based in Savage, Minn., says the PeopleNet system has what it's looking for. Q-Carrier installed Intouch on half its fleet -- the remainder will get the system by the end of the first quarter.

"Intouch is the perfect match for our true needs -- at a price we're willing to pay," said Greg Gorvin, president of the all owner-operator firm.

He said the system already has helped his company reduce out-of-route miles and improve driver and dispatcher efficiency. "In today's marketplace, it's no longer a competitive advantage to have mobile communications -- it's a competitive necessity," Mr. Gorvin said.

Adopting the system "leveled the playing field with our largest competitors," he added.

PeopleNet began by installing Intouch in several fleets in November. It now has 20 customers under contract.

The company also is ramping up a cellular-based, untethered trailer-tracking product, and salesmen are busy selling it right now, Mr. Roy said (TT, 12-8-97, p. 16).

PeopleNet won't be the only company chasing the medium- and small-fleet mobile communication market. Expect a host of providers to offer data transmission and vehicle-locating services using the low-earth-orbit satellite system -- a constellation of small, cheap satellites -- being deployed by Orbcomm USA.

And don't think the big market leaders will ignore this segment.

American Mobile Satellite Corp., for example, recently announced its purchase of the Ardis specialized mobile radio system. With this ground-based component, AMSC expects to offer lower-priced services, making its products more attractive to smaller companies.

Qualcomm also said it would add a terrestrial component to its OmniTracs satellite-based communications system.

That's the thing about sequels -- the big stars like to come back.