Telematics is still one of the hottest buzzwords in the auto industry in 2001. That hasn't changed since my thoughts in a 2000 column I wrote.

In-vehicle technology has already started to transform the way we navigate, the way we communicate, and the way we keep track of vehicles -- and one of the fastest growing and most promising areas of telematics is fleet management.

With Americans spending 500 million passenger hours a week in their cars, this technology, with its ability to connect our vehicles with the business world via phone, e-mail, fax, and GPS seems a sure bet to boost productivity and efficiency.

...But Wait

With any emerging technology, however, there are bound to be a few bumps in the road, and telematics is no exception.

One of the main "sticking points" for telematics development is speech recognition -- the technology which allows you to "keep your eyes on the road and your hands upon the wheel," as the old Doors song goes. This is critical for the evolution of telematics because of potential driver distraction and safety issues.

Restrictions Are Possible

With a number of municipalities already limiting or even outlawing cell phone usage in moving vehicles, driver distraction issues loom large as a stumbling block for telematics. The National Highway Traffic Safety Administration (NHTSA) is currently in the midst of a driver distraction study that could ultimately result in federal legislation limiting the amount and type of telematics information available to drivers.

But many automotive and telematics manufacturers see speech recognition as a way around these potential distraction issues. If you're able to "tell" your telematics system what you want, you don't have to divert your attention from the road.

Delay Disappointing to Manufacturers

The in-car PC boom that some predicted to be in full bloom by now hasn't fully happened, and it may be delayed for another year to 18 months as automakers and vendors confront challenges in implementing speech recognition systems.

This delay is a big disappointment for many manufacturers who have invested millions of dollars in the development and promotion of in-vehicle computers and telematics systems. But because speech-recognition systems are critical in addressing driver distraction issues, carmakers want them to be as flawless as possible -- and they are not there yet, according to many industry observers.

Noisy Confusion

The heart of the problem is that vehicles, unlike desktop computers, exist in a noisy environment that can confuse software-based speech recognizers. If speech recognition is done over a cellular link, the system also must deal with such issues as line echo, electrical interference, and poor signal strength.

Software makers say the problems are magnified at higher speeds. Accuracy also suffers when vehicle occupants open or close a window, turn on the radio, or blast the air conditioner.

Stories of drivers struggling with voice recognition systems are already becoming commonplace. But automotive engineers say these problems aren't insurmountable.

Call Me an Optimist

The automotive industry will solve these problems, just as it has solved others in the past. I believe that in five years, fleet vehicles without telematics will be rare; in 10 years, they'll be relics.

A bump in the road isn't the end of the road, after all.

About the Author: Steve Elliott is a former editor at Bobit.