Business Models to Facilitate Deployment of Connected Vehicle Infrastructure to Support Automated Vehicle Operations (2020) / Chapter Skim
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1 CHAPTER 1: INTRODUCTION AND BACKGROUND As potential tools to address the transportation system's safety and mobility performance, connected vehicle (CV) technologies have received much attention globally over the past two decades.
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2 business case arguments must be advanced; (2) how to build effective business case arguments that consider market conditions and uncertainties; and (3)
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3 • Connecting vehicles directly to traffic management infrastructure (V2I) , including traffic control devices via radios in roadside units (RSUs)
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4 • Environment, e.g., eco-approach and departure at signalized intersections, Eco-Traffic Signal Timing. Connected Vehicle Communications CV applications are enabled by the transfer of data and information between vehicles/drivers or other users, transportation agencies, and private service providers.
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5 • Roadside Units (RSUs)
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6 • Backhaul. An important aspect of the V2I is backhaul communications for security applications, data transfer, and storage.
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7 SAE J3016 TM LEVELS OF DRIVING AUTOMATION SAE Level 0 SAE Level 1 SAE Level 2 SAE Level 3 SAE Level 4 SAE Level 5 What does the human in the driver's seat have to do? You are driving whenever these driver support features are engaged - even if your feet are off the pedals and you are not steering You are not driving when these automated driving features are engaged - even if you are seated in " the driver's seat You must constantly supervise these support features; you must steer, brake, or accelerate as needed to maintain safety When the feature requests, you must drive These automated driving features will not require you to take over driving These are driver support features These are automated driving features What do these features do?
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8 HISTORICAL CONTEXT AND TRENDS The growing significance of CV technology, interest in its purported benefits to DOTs and transportation systems users, and viability for investment sets the stage for the findings of this research. This section reviews key developments and activities in research and early testing over the past 20 years.
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9 from the FCC to "increase traveler safety, reduce fuel consumption and pollution, and continue to advance the nation's economy" (FCC, 1999)
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10 The motivation for any investment is the expected outcome such investment brings when compared to the status quo option, i.e., its value proposition. The closer the alignment of the value proposition of the CV infrastructure investment to the DOT's strategic goals and related objectives, the higher the motivation to invest.
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11 Table 1. Example State DOT CV Strategic and Program Plan Statements Supporting Investment Example State DOT Plan and Content Statements of Intent to Make CV Infrastructure Investment Florida DOT's (FDOT)
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12 Table 1. Example State DOT CV Strategic and Program Plan Statements Supporting Investment Example State DOT Plan and Content Statements of Intent to Make CV Infrastructure Investment • "Accelerate Connected and Automated Vehicle benefits through fleet deployments" by "[outfitting]
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13 enable V2I applications at a scale large enough to create systemic impacts can therefore be a capital-intensive undertaking. Uncertainties Influencing Department of Transportation Decision-making Although costs, along with funding and expected returns from investments made, are always a major consideration for any investment decision process, CV infrastructure investments include a few other unique cost-related externalities that DOTs must consider that add a greater level of uncertainty to the mix.
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14 • Spectrum Availability Uncertainty. Another significant uncertainty is if the 75 MHz of spectrum in the 5.9 GHz band will continue to be exclusively available for ITS safetyrelated uses.
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15 HOW TO MOVE FORWARD: CONNECTED VEHICLE INFRASTRUCTURE INVESTMENT DECISION OPTIONS IN AN UNCERTAIN ENVIRONMENT Given the uncertainties, some DOTs might prefer to adopt a "wait and see" approach to let the technology market stabilize before committing any financial or human resource investments related to CVs. Others may decide to take a more cautious investment approach by taking calculated risks now in anticipation of greater returns later.
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16 answered when making a business case for public investments in CV infrastructure, and (3) discuss aspects of potential business model arrangements.
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17 the cautious investment approach and advance investments that present the least risk and offer immediate benefits. Chapter 4 is mostly focused on the process to develop a quantitative business case to justify CV investment options.
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