Volkswagen Emerges as Champion with EU favoring WiFi over 5G: Report

Date:

Trending

- Advertisement -

The European Commission is set to approve and set rules for the use of wifi in cars, giving Volkswagen and Renault who have pursued this technology the edge over Daimler and others who invested in rival 5G networks.

The EU executive is expected to announce draft legislation on the issue next month for feedback from EU countries and EU lawmakers before adopting it next year.

- Advertisement -

The decision is a crucial one for both carmakers and telecoms operators and equipment makers as the market for internet connected cars is expected to be worth billions of euros a year.

- Advertisement -

[bs-quote quote=”While connected cars have been available for some years in Europe, the Commission wants to speed up their deployment and encourage cooperation between manufacturers to make safer and more efficient cars via legislation” style=”style-23″ align=”center”][/bs-quote]

While connected cars have been available for some years in Europe, the Commission wants to speed up their deployment and encourage cooperation between manufacturers to make safer and more efficient cars via legislation.

- Advertisement -

Such legal protection and regulatory-approved technical specifications would also reassure car buyers and auto insurance companies, advantages which cars equipped with a rival technology would not have.

The latest draft of the proposed rules seen by Reuters paves the way for cars equipped with wifi called ITS-G5 to hit the roads in Europe while regulators will review the rules at the latest three years after its implementation to take into account any new technologies.

This could mean that the alternative 5G standard called C-V2X could take months or even years to win approval. Supporters however expect a shorter timeframe.

Rival Camps

The issue has pitted two powerful groups of carmakers, chipmakers and telecoms providers against each other. Connected cars are seen as lucrative targets for online retailers and advertisers.

Volkswagen, Renault, NXP, Autotalks and Kapsch TrafficCom are pushing ITS-G5, which they say has been sufficiently tested and fully standardised in European government-funded projects.

However, 5G backers include big names like Daimler, Ford, PSA Group, Deutsche Telekom, Ericsson, Huawei [HWT.UL], Intel, Qualcomm and Samsung. They say that C-V2X has wider application and is future-proof.

Backers of C-V2X say it can hook up to both cars and devices in the surrounding environment, with a wider range of applications in areas such as entertainment, traffic data and general navigation where data speeds or signal failure are less of an issue.

Fans of ITS-G5, which is primarily for connecting cars to other cars, say it is better for time-critical communications involved in crash avoidance and object navigation.

The EU executive declined to comment on the draft. It said: “Currently the Commission is looking into the best European framework to promote the right investments in this area and ensure interoperability between the existing systems and the development of new technologies.”

In effect, the decision puts the region at loggerheads with the United States and China which see C-V2X, using cellular networks, as the way forward.

Some EU countries such as Spain, Sweden, Finland and Norway had called for a postponement of the proposed rules because of the diverging views on the topic.

Following intense lobbying, France, which supports the wifi-based technology, came up with a compromise clause which is now under discussion.

Its proposal, seen by Reuters, would force the Commission to revise the rules in less than 12 months if a new technology is approved. The paper also calls for all involved parties to cooperate to ensure a level playing field between different technologies.

Lobbying group and C-V2X supporter 5GAA said that is not enough.

“A legislation confined to a wifi based communication would send a negative message about Europe’s commitment to 5G, and is contrary to the objectives of the Commission’s own 5G action plan, which aims to promote early deployment of 5G along major transport paths,” 5GAA said.

THE SNAPSHOTS

Sign up to get quick snaps of everyday happening, directly in your inbox.

We don’t spam! Read our privacy policy for more info.

- Advertisement -
Krishna Mali
Krishna Mali
Founder & Group Editor of TechGraph.

More Latest Stories

More Articles

Mozark Snaps $40 Mn In Series B Round Led by IFC and RMB Capitalworks

Mozark, a Singapore-based company specializing in digital experience testing and measurement, has raised $40 million in a Series B round led by International Finance...

Role of Agentic AI in transforming the real estate landscape

The real estate industry involves a high-stakes ecosystem driven by shifting supply-demand dynamics, regulatory changes, and several other economic factors. Every stage from evaluating land to designing projects, projecting cash flows, managing construction, marketing properties, and supporting post-sales operations involves interdependent decisions that can...

How to Extend Vehicle Lifespan With Proper Maintenance

Extending the lifespan of your vehicle is not only cost-effective but also beneficial for...

Geospatial Intelligence Is Powering India’s Next Wave of Smart Infrastructure

Every day, nearly 500 families in India receive news that will change their lives...

From Browsing to Buying: How Multi-Modal AI Is Turning Discovery Into Decision-Making

The digital journey, starting from discovery to decision, has been notably discontinuous through time....

Nebius Gets Approval for 1.2 GW AI Factory Campus in Missouri

Nasdaq-listed AI company, Nebius (NBIS), said the Independence City Council has approved a Chapter...

Why India’s Next Cloud Boom Is Coming from Tier-2 Cities

Historically, the story of India's cloud adoption has been focused on the metro cities...

Is India Ready for a Smart Treasury? A Look at Adoption Barriers and Opportunities

Across India, businesses hold thousands of crores in current accounts that earn no interest....

Understanding Common Car Problems and How to Prevent Them

Keeping your vehicle in top condition requires more than just regular washing or occasional oil changes. Cars are complex machines with multiple systems that...

Fraud or Finance? How to Identify Trustworthy Digital Lending Platforms

Digital lending has changed how credit flows in India. According to the IBEF, fintech-led...

What Modern Enterprises Can Expect from CPaaS Platforms in 2026

Over the past two decades, enterprise communication technology has advanced rapidly. Yet the gap...

India’s Creator Economy Seeks Tax Clarity and Social Security Support in Budget 2026

As policymakers finalise Budget 2026, the creator economy stands at a crossroads between rapid...

How To Use Tech To Aid Your Financial Management

Financial management and tech actually go hand in hand really well, and it’s important...

O-1 Visa & Moving Beyond H-1B: Frederick Ng of Beyond Border on Fixing US Visa Bottlenecks for Startup Founders

Speaking with TechGraph, Frederick Ng, Co-founder of Beyond Border, discussed how many venture-backed founders often find themselves constrained by restrictive and poorly understood U.S....

Creator Commerce Platform Wishlink Secures $17.5 Mn in Series B round

India-based creator commerce platform Wishlink has raised $17.5 million in a Series B funding round led by Vertex Ventures Southeast Asia & India, with participation from existing investors Fundamentum and Elevation Capital. Wishlink plans use the fresh capital to expand its creator and brand network,...

Brazil and South Korea Sign Stragetic Deals Across Trade, Health & Tech

In a move aimed at strengthening economic and strategic ties, Brazilian President Luiz Inácio...

Amazon India Opens 1.1 Million Sq Ft Campus in Bengaluru

Amazon announced the opening of its second-largest office in Asia with the launch of...

How Drone and LiDAR Surveys are Redefining Railway and Highway Project Execution

India’s railway and highway networks rank among the largest and most transformative infrastructure systems...

How Union Budget 2026–27 Supports Small Logistics Players through TReDS and the SME Growth Fund

Union Budget 2026–27 marks a decisive shift in how India supports its small logistics...

Union Budget Focus on MSMEs: Why Efficient Warehousing Is the Missing Link

The Union Budget 2026–27 places Micro, Small, and Medium Enterprises (MSMEs) firmly at the...

Union Budget 2026: Solar & Clean Energy Industry Draws Mixed Reactions on Manufacturing, KUSUM Funding & Import Duty Exemptions

The solar and clean energy sector has welcomed Union Budget 2026–27 for its focus...

Union Budget 2026 Reactions: Tech Sector Welcomes AI Focus, Sees Cloud Tax Incentives as Boost To India’s Digital Growth

India’s Union Budget for 2026, presented on Feb 1 by Nirmala Sitharaman, further integrated...

Budget 2026: FM Nirmala Sitharaman Cuts Customs Duty on Personal Imports, Cancer Drugs Among 17 Medicines Exempted

India Union Budget 2026: The Indian government has reduced the customs duty rate on...

Why India’s Housing Affordability Crisis Needs Policy Attention in Budget 2026

In the past few years, real estate prices have risen steadily, especially in tier-one...

India’s Creator Economy Seeks Tax Clarity and Social Security Support in Budget 2026

As policymakers finalise Budget 2026, the creator economy stands at a crossroads between rapid...

B2B Logistics platform Mojro Draws $3Mn for IAN Alpha Fund & Others

Bengaluru-based B2B logistics platform Mojro has raised $3 million in a Series A funding...

Peak XV Partners Closes $1.3 Bn in Fresh Capital to Back Startups Across India and APAC

Peak XV Partners (formerly Sequoia Capital India & SEA) has closed $1.3 billion in...

LTM partners with the Indian Institute of Creative Technologies to strengthen creative technology skilling

LTM, a Larsen & Toubro Group company, and the Indian Institute of Creative Technologies...

Business Structure for Modern Entrepreneurs: What No One Explains Clearly

Modern entrepreneurs often obsess over product-market fit while neglecting the structural bones of their...

How To Use Tech To Aid Your Financial Management

Financial management and tech actually go hand in hand really well, and it’s important...

Budget 2026: FM Nirmala Sitharaman Cuts Customs Duty on Personal Imports, Cancer Drugs Among 17 Medicines Exempted

India Union Budget 2026: The Indian government has reduced the customs duty rate on...

Union Budget 2026: Nirmala Sitharaman Raises Capex to ₹12.2 Lakh Crore, Fiscal Deficit Projected at 4.3% for FY27

Union Budget 2026: Finance Minister Nirmala Sitharaman said the government has allocated ₹12.2 lakh...

Why India’s Housing Affordability Crisis Needs Policy Attention in Budget 2026

In the past few years, real estate prices have risen steadily, especially in tier-one...