From Satellite to Cellular-Connected Devices: The Evolution of Telematics
Ten years ago, investment banker Solange Velazquez completed the first satellite-based telematics deal, when devices were large and installation took five days. Today, technology has evolved into small, plug-and-play devices with significantly reduced costs. Industry experts trace back to 1988, when Omninet partnered with Qualcomm to pioneer Ku-band satellite mobile applications; now, cellular networks have largely replaced satellite, and GPS data is considered "old school." The term telematics has expanded to encompass broader areas such as fleet management and compliance, with companies like ABF Freight using it as an umbrella term covering sensor and camera technologies. Although some businesses have yet to adopt technologies like GPS tracking, the ELD mandate and the pandemic have accelerated industry acceptance. Startups such as GenLogs are innovating location data applications through camera networks, pushing technology beyond traditional hardware.
Editor's note: This article is the first part of a series on the evolution of telematics technology in the trucking industry.
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 and expensive, and installation required five days before it could be put into use.
"Now it has become a small plug-and-play puck-shaped 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. In 1988, Omninet partnered with Qualcomm to pioneer the use of Ku-band satellite systems for mobile applications,according to NASA records. The resulting network enabled low-cost, efficient two-way messaging and data positioning, but the equipment itself was bulky—far removed from today's small puck-shaped devices with displays.
Nearly 40 years later, the size of the equipment reflects ongoing technological innovation. Cellular networks have largely replaced satellites; GPS data is considered "old school." According to Velazquez, these advances have even forced the definition of "telematics" to evolve.
"It has become a broad term covering multiple technologies," she said.
Redefining the term and its purpose
The term "telematics" is a combination of "telecommunications" and "informatics." Both are relatively general terms, but 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 broader range of technologies into the discussion.
She added that even telematics vendors are abandoning the term. Velazquez noted that the websites of major telematics providers highlight words like "intelligence" and "fleet management" more prominently.
Burak Cendek, managing director at early-stage venture capital firm Autotech Ventures, also pointed out that the change in vocabulary reflects a deeper evolution in processes.
"This is not just telematics," he said of telematics providers, "they are starting to get into more fleet management and compliance areas."
On the other hand, at ABF Freight, the term still resonates. However, the company uses it more as an umbrella category to describe its sensor- and camera-based technology strategy, ABF Freight President Matt Godfrey said in an interview. Technically, he said, sensors and cameras can provide location data—as the narrow definition of "telematics" stipulates.
In fact, ABF Freight's telematics program is broad in scope, covering two 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 informs maintenance decisions and future investments. Meanwhile, the safety component includes tools such as blind-spot cameras and acceleration technology.
That was not always the case. Godfrey recalled that in the past, using data involved working with original equipment manufacturers to determine the best times for tire replacements and oil changes. But the company's processes evolved along with the technology. The automatic onboard recording devices it installed eventually became electronic logging devices, which sparked interest in extracting data from trailers, followed by cargo data. Now, ABF Freight uses pilot programs to keep pace with telematics, allowing the company to evaluate new tools before committing to scale, Godfrey said.
However, not all fleets are evolving in sync with telematics technology. A recent study by Verizon Connectsurveyreflecting 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, respectively. 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 discovery.
More than a dot on a map
The trucking industry's technology adoption rateis known for being slow. But the electronic logging device mandate and the COVID-19 pandemic both catalyzed the trucking industry's acceptance of telematics, Velazquez said. The former forced operators to accepttracking every mile, while the latter madereal-time visibilitya necessity. But that was the old definition of "telematics."
"Everyone is very comfortable with the dot on the map," Velazquez said, referring to how most people use location data, "but 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 tool businesses are gaining attention. Godfrey noted that cargo dimension measurement and camera-driven driving displays are also emerging possibilities.
Cendek said,GenLogsis one of the hottest startups in this field. It collects location data through itstruck tracking camera network, which covers the entire United States without requiring users to opt in, thereby modernizing the dot on the map.
Velazquez said telematics has moved beyond traditional hardware.
"Now you can get real-time location, speed—everything in real time, and you won't even realize it's there," she said.