Skip to main content

Microsoft predicts ‘pay as you-go’ solution to congestion

Congestion pricing is the solution to inner city traffic gridlock, according to Microsoft’s chief economist, Michael Schwarz. Speaking at the IBTTA’s Annual Technology Summit in Orlando, Florida last week, Schwarz said “traffic will be a thing of the past”, citing the difference between the traffic volumes in the free use and managed lanes as evidence. He also highlighted Singapore’s plans to have satellite tolling on all cars in 2020 and noted that almost all new cars are already fitted with SIM car
April 9, 2019 Read time: 2 mins

Congestion pricing is the solution to inner city traffic gridlock, according to 2214 Microsoft’s chief economist, Michael Schwarz.

Speaking at the 63 IBTTA’s Annual Technology Summit in Orlando, Florida last week, Schwarz said “traffic will be a thing of the past”, citing the difference between the traffic volumes in the free use and managed lanes as evidence.

He also highlighted Singapore’s plans to have satellite tolling on all cars in 2020 and noted that almost all new cars are already fitted with SIM cards and GPS adding: “The cost of the technology is nothing.”

Furthermore, as satellite technology allows tolling and congestion pricing to be levied on any and all roads, he predicted that instead of paying one large charge when entering a city or corridor, “we will be paying a lot of congestion charges for each journey”.

He said that without congestion pricing, self-driving cars would cause gridlock and predicted that the introduction of such charging will be made more palatable by a new generation of car-pooling platforms.

“Technology is getting better at finding the ideal [car-pooling] partner,” he said. “Splitting the congestion charge three ways makes it more affordable.”

There will be a full report from the IBTTA conference in the May-June edition of ITS International

For more information on companies in this article

Related Content

  • Teledyne Flir brings Middle East into vision
    July 10, 2023
    As urban sprawl creeps across the Middle East and Africa, congested roads aren’t far behind. Hesham Enan of Teledyne Flir explains to Adam Hill how traffic technology is helping authorities to cope
  • Nairobi looks to ITS to ease travel problems
    December 21, 2017
    Shem Oirere looks at plans to tackle chronic congestion in the Kenyan capital. Traffic jams in the Kenyan capital, Nairobi, are estimated to cost the country $360 million a year in terms of lost man-hours, fuel and pollution. According to Wilfred Oginga, an engineer with the Kenya Urban Roads Authority (KURA), the congestion has been exacerbated by poor regulation and enforcement of traffic rules, absence of adequate traffic management systems and poor utilisation of existing road facilities.
  • Bit by bit insurers agree data protocol
    November 7, 2013
    Telematics technology may be a game changer for the automobile insurance industry but it comes with some caveats as Colin Sowman discovers. James Bielak, (P&C) program manager at the US office of ACORD (the Association for Cooperative Operations Research and Development), has an unenviable job: to devise a standard form of communicating vehicle data between telematics providers and insurance companies. To that end he has gathered together a group composed of insurers, telematics providers and other intere
  • When caring about sharing is good business for US automakers
    October 28, 2015
    Although car-sharing and ride-sharing could drastically reduce car sales, David Crawford finds some US automakers are keen to participate in the sharing economy. Growing consumer interest in car- and ride-sharing, as opposed to outright ownership, and ride-sharer Uber’s recently stated intention to make its brand competitive with ownership on cost, are making the major US automotive manufacturers think seriously about their future sales prospects. Some have already begun exploring ways of entering the field