MADRID, Feb 6 (Reuters) - Spain's Telefonica andinsurer Generali have launched a car-tracking devicedesigned to reduce the cost of insurance by monitoring drivinghabits.
The product, called Pay As You Drive, is part ofTelefonica's efforts to expand into alternative technologies,particularly machine-to-machine (M2M) services for thehealthcare and automotive sectors.
The device will monitor how many miles customers drive,whether they stick to speed limits, what time of day theyusually drive and where they go.
Telefonica said that careful young drivers could save about40 percent a year on car insurance premiums by using the device.Customers will have access to data on their driving and thelocation of their car through a mobile app.
Other operators, including Vodafone, DeutscheTelekom and China Mobile, are also lookingto new technology to offset declining revenue from traditionalavenues such as voice calls and text messages.
Telefonica said last year that revenue at its digital armwould increase 20 percent a year to generate 5 billion euros($6.8 billion) by 2015.
It sees Telefonica Digital as a major growth driver asdomestic revenues are drained by increasing competition and 26percent unemployment in its home market.
Vodafone (VOD)