ETC's real competitor isn't cancellation

Title: The Pressure on the ETC Leader Comes from Changes at the Entry Point

What the ETC leader fears most is toll stations no longer needing onboard devices. Once the passage entry point shifts from devices to license plates and accounts, device companies are no longer naturally positioned within the toll collection process.

In February this year, the Ministry of Transport reviewed and approved the "Implementation Plan for 'Mobile Phone +' Card-Free Convenient Passage on Expressways (2026-2028)." The plan relies on license plate recognition to record vehicle information, allowing small passenger cars without ETC to pass through card-free. This move is more critical than canceling ETC because it doesn't rush to negate the old system; it simply lays new entry points outside the old devices.

For industrial investment and financing, the attribution of settlement rights is worth more attention. In the past, the value of ETC came from binding accounts with onboard terminals. Going forward, this value might be split among cameras, payment channels, map entry points, and in-car systems. Devices can still be sold, but the story isn't as solid anymore.

The key advantage of ETC is the passage entry point. If the entry point is bypassed, installed units will turn from assets into inventory.