From Satellite to Cellular-Connected Devices: The Evolution of Telematics

A decade ago, investment banker Solange Velazquez completed her first deal involving satellite-based telematics. She recalled that at the time, the core equipment of the technology was bulky, expensive, and required five days to install before it could be put into use.

"Now, it has shrunk into a small plug-and-play puck device, and the price has become very affordable," said Velazquez, a managing director at Solomon Partners focused on technology investments in the transportation sector.

Industry experts trace the history of this technology back to Omninet Corporation. According toNASA records, in 1988, Omninet partnered with Qualcomm to pioneer the use of Ku-band satellite systems for mobile communications. The network built from this achieved low-cost, efficient two-way messaging and data positioning, but the equipment itself was bulky—far removed from today's small puck devices with displays.

Nearly 40 years later, the change in equipment size highlights continuous technological innovation. Cellular networks have largely replaced satellites; GPS data is considered outdated technology. Velazquez noted that these advances have even forced the definition of "telematics" to keep evolving.

"It has become a broad term that could encompass a wide range of technologies," she said.

Redefining the term and its uses

The term "telematics" is a portmanteau of "telecommunication" and "informatics." Both are relatively broad terms, yet when combined, they evoke something very specific: location data. Velazquez even said she rarely uses the term "telematics" anymore, preferring "fleet management" to bring a wider range of technologies into the discussion.

She added that even telematics providers are gradually abandoning the term. Velazquez pointed out that the websites of major telematics providers highlight words like "intelligence" and "fleet management" more prominently.

Burak Cendek, a managing director at early-stage venture capital firm Autotech Ventures, also noted that the change in vocabulary reflects a deeper evolution in processes.

"This is not just telematics," he said of the providers. "They have begun to venture into more fleet management and compliance areas."

On the other hand, at ABF Freight, the term still resonates. However, ABF Freight President Matt Godfrey said in an interview that the company uses the term more as an umbrella category to describe its sensor- and camera-based technology strategy. He said that, technically, sensors and cameras can provide location data—as the narrow definition of "telematics" dictates.

In fact, ABF Freight's telematics program is broad in scope, covering two major categories: equipment metrics and driver safety. The former includes monitoring tire and brake pad wear, liftgate charging performance, and other component-level data. Godfrey explained that this data aids maintenance decisions and future investments. Meanwhile, the safety component includes tools such as blind-spot cameras and acceleration technology.

But that was not always the case. Godfrey recalled that in the early days of using data, it was necessary to work with original equipment manufacturers to determine the optimal times for tire replacements and oil changes. As technology evolved, so did the company's processes. Its installed automatic onboard recording devices eventually evolved into electronic logging devices (ELDs), which in turn sparked interest in extracting data from trailers and cargo. Godfrey said that today, ABF Freight keeps pace with telematics through pilot programs, allowing the company to evaluate new tools before committing at scale.

However, not all fleets are evolving in sync. A recentsurveyby Verizon Connect reflecting 2025 trends showed that 28% of small businesses, 16% of mid-sized businesses, and 10% of large businesses do not use GPS tracking, in-cab video, field service/workforce management, or tracking tools. But the report found that for five consecutive years, "at least four out of five respondents reported using at least one form of technology"—indicating a willingness for long-term use after initial adoption.

More than just a dot on the map

The trucking industry's adoption of technologyis known for being slow. But Velazquez said that the ELD mandate and the COVID-19 pandemic both accelerated the trucking industry's acceptance of telematics technology. The former forced operators to accepttracking every mile, while the latter madereal-time visibilitya necessity. But that was the old definition of "telematics."

"Everyone has gotten used to the dot on the map," Velazquez said, referring to how most people use location data. "But beyond that dot, what else can you do with the data extracted from the vehicle?"

Startups are working hard to answer that question. Cendek, a partner at Autotech Ventures, noted that telematics-based insurance, app-based freight factoring, and other digital tools are gaining traction. Godfrey mentioned that cargo dimension measurement and camera-driven driving displays are also emerging possibilities.

Cendek said thatGenLogsis one of the hottest startups in this space. It collects location data through its nationwide "" covering the U.S.truck tracking camera network" to modernize the dot on the map without requiring users to opt in.

Velazquez said that telematics has moved beyond traditional hardware.

"Now you can get real-time location, speed—everything is real-time, and you don't even realize it's there," she said.