DETROIT – Dedicated Short Range Communications which uses both Wi-Fi and RFID technology – is an idea whose time is fast approaching, says ABI Research. But by the end of this decade this wireless technology aimed at the motor vehicle will produce a huge market in the United States, with serious implications for the way we use our cars.

The report provides early glimpses of a wireless network that will allow real-time traffic updates to be beamed right into a vehicle’s navigation system, universal automatic toll collection, streaming entertainment, intelligent safety systems, even interactive commerce. But there is another potential, which promises to alarm privacy watchdogs and thrill homeland security enforcers: a potential for tracking and logging of vehicles’ movements and usage. To cover the country using 802.11 networking at the roadside would involve an initial expenditure, says the report, of at least $1 billion, and probably much more.

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