Despite the obvious commercial advantages of telematics – Ctrack guarantees a 12% saving in fuel costs – fleets understandably remain resistant to signing long contracts, especially when it involves additional finance.

For example, following the launch of its pay-as-you-go offering last year, rival Quartix has now introduced a 12-month direct rental contract with no installation or set-up fees.

It says the service is more cost-effective than competitors’, despite the minimal contract commitment.

And fleets are tempted - five fleets are signing up to the service each day.

“Customers simply do not want to sign a five-year deal any more, and if a telematics supplier genuinely has confidence in the service and reliability of his product, then he shouldn’t need to bind his customer in that way,” said Andy Walters, Quartix managing director.

“We won tremendous acceptance from customers for our pay-as-you-go offering, which offered the right to cancel after three months. But many companies suggested they would be happy to sign up for 12 months if there were no installation charge, and so that is what we have done.”

One piece of advice all these suppliers agree on is that fleets must select a major player with proven pedigree. With the telematics industry is awash with rumours of takeovers and possible further collapses, and with the big players are all on the acquisition trail, this advice is sound.

Trimble recently acquired Punch Telematics, a European-based provider of telematic solutions to heavy goods fleets.

“What we need was a multi-vehicle multi-national approach,” explains Yeoman.

“Our customers want to be able to compare their vehicle fleets across Europe. I can go into a customer and say we have a solution whatever your fleet size, whatever vehicles you operate and wherever you operate them. I can do that now.”

Ctrack, which currently has 3,000 customers in the UK tracking 75,000 vehicles, is also on the acquisition trail. “We are on the lookout for further acquisitions,” confirms O’Conner. “