What happened to the promised “sophisticated, smartphone-sized” ERP 2.0 OBU in 2016?

The Land Transport Authority (LTA) of Singapore faced significant backlash from motorists following the introduction of the new On-Board Unit (OBU) for the Electronic Road Pricing (ERP 2.0) system, with many expressing frustration over the inconvenience caused by the OBU for cars.

On 2 May, LTA released an update on the new OBU improvements, including eliminating the need for motorists to remove their CEPAS card from the OBU while driving or when entering and exiting car parks, thus addressing a primary safety concern.

The LTA also emphasized the flexibility in the installation of the processing unit and touchscreen display, allowing vehicle owners to choose locations within their vehicles that suit their needs and preferences.

Many motorists have also questioned why LTA persists in rolling out the bulky 3-piece OBU design, which they find inconvenient and raised concerns about why LTA couldn’t introduce a more compact 1-piece design.

In an earlier explanation, LTA cited temperature concerns. They noted that in the enclosed space of a car interior, temperatures can soar, often exceeding 50 degrees Celsius, especially when the car is parked under direct sunlight.

LTA further explained that the processing unit of the OBU, akin to a mini-computer, cannot function reliably under such high temperatures. Hence, it cannot be safely mounted on the dashboard area of a car. The footwell area offers lower temperatures, providing a more suitable environment.

However, LTA’s explanation has not satisfied many netizens. Some question why the one-piece unit for motorcycles, which presumably contains similar technology, can withstand heat, while the new OBU for cars cannot.

In 2020, when LTA first unveiled the new OBU design for both cars and motorcycles, the online community had already expressed concerns about why LTA was replacing the current one-piece IU with “three equally clunky and chunky devices”.

Concerns regarding safety hazards and additional dashboard obstructions were raised at that time.

Senior Minister of State for Transport Amy Khor, in October 2021, responding to public feedback, said that the authorities will proceed with the device while continuing to explore improvements.

The decision to proceed with the design, which was initially unpopular, is said to be due to LTA being contractually bound to the OBU design after awarding the tender in 2016; thus, any alterations would incur additional costs.

However, it’s also worth revisiting the statements made by the LTA when the tender for the new Electronic Road Pricing (ERP) system was awarded.

Referring back to a 2016 announcement by LTA, it was Chew Men Leong, the CEO of LTA at the time, who said that drivers can look forward towards a “sophisticated, smartphone-sized onboard unit,” originally anticipated to be rolled out starting from 2020.

To replace the existing gantry-based ERP system, which had been operational for 25 years, LTA committed to implementing ERP 2.0, a Global Navigation Satellite System (GNSS)-based system.

In February 2016, contractors NCS Pte Ltd (NCS), a subsidiary of Singapore Telecommunications Ltd, and Mitsubishi Heavy Industries Asia Pacific Pte Ltd (MHI) secured a contract to construct a system. This system offers islandwide coverage and the capability to charge based on distance traveled.

The winning bid of S$556 million from the partnership was significantly lower than the S$1.2 billion bid submitted by the other qualified bidder, ST Electronics.

Chew, who served as LTA CEO from October 2014 to November 2016, stated that the NCS-MHI bid was deemed superior to that of ST Electronics, and it “fit within the LTA’s budget.”

Local media reported that the anticipated OBU, roughly the size of a smartphone, could display travel advisories and alert motorists to charging points. Additionally, it could be used to pay for roadside parking, checkpoint tolls, and the use of off-peak cars electronically.

In response to inquiries about the substantial discrepancy between the two qualifying bids, Mr Chew expressed confidence in the winning team’s ability to “execute the project in a commercially viable way.”

So, given that Chew had the impression that the eventual OBU would be the size of a smartphone back in 2016 when the tender was awarded, wouldn’t it be the case that this was what was envisioned?

Did anything change between the time the tender was awarded and when the tender winners realized that the price bid was insufficient for the anticipated product?

Amy Khor stressed irreplaceability of ERP 2.0 OBU, citing smartphone limitations

The ERP 2.0 which was supposed to be operational by 2020, faced delays, first to 2021, and then to the second half of 2023, due to a global microchip shortage exacerbated by the COVID-19 pandemic.

The initial phase of installation commenced in November 2023, focusing on company vehicles as the first recipients of the OBU.

Since then, over 18,000 vehicles have been equipped, and the system has undergone several modifications based on feedback from early adopters.

During the 6 November 2023 parliamentary session, SMS Khor emphasized that ERP 2.0 cannot be entirely replaced by smartphone technology.

She underscored the importance of the OBU can “better ensure reliability and performance, and reduce significant downstream operational challenges, such as disputes regarding charging inaccuracies”.

Regarding the use of smartphones for ERP transactions, Dr Khor highlighted the inconvenience for motorists, who would need to initiate their mobile apps, enter passcodes, or use biometric authentication each time they travel, potentially leading to inadvertent neglect of the ERP process.

“This is inconvenient to motorists, and some may inadvertently forget to start their mobile apps for the ERP.”

However, Dr Khor acknowledged earlier feedback about the OBU’s inelegant and bulky design, mentioning the development of a mobile interface for those who opt against installing the touchscreen display.