Should NAD, the core of vehicle connectivity, still be treated as just a component?

MobilityBlog06/07/2026
LG on board 2 Expert Answer: When NAD Becomes a Commitment

OEM Pain Points for Vehicle Connectivity

Until now, NAD (Network Access Device) has been perceived as a hardware component with a relatively well-defined role in vehicle connectivity—serving as the bridge between modems, antennas, and vehicle networks. For both OEMs and Tier 1 suppliers, NAD was essentially 'one of many necessary components.'

However, with the widespread adoption of 5G, Non-Terrestrial Networks (NTN) satellite technology, short-range wireless, and OTA-based services are becoming increasingly intertwined, and NAD can no longer be simply described as a standalone component. The question has shifted from the specs of NAD itself to who can—and how to—design and take responsibility for overall vehicle connectivity performance.

OEM Pain Points for Vehicle Connectivity_At a Glance

The first challenge OEMs face is uncertainty in connectivity performance.

In terrestrial network dead zones, complex RF environments, and across varying vehicle packaging, real-world performance is difficult to predict from datasheets alone.
As connectivity-dependent features — eCall, SVT, and OTA updates — continue to grow, performance variability directly translates into service risk.

 

The second challenge is the blurred boundary between responsibilities.

When NAD design is outsourced, antennas are assembled separately, while system integration happens at yet another stage.
As a result, identifying root causes and responding quickly becomes increasingly difficult. Performance issues are of ten a design-wide problem, yet there is often no single entity capable of explaining and resolving them — leading directly to development schedule risk.

 

Finally, there is the burden of preparing for future connectivity environments.

Satellite communications, overlapping frequency bands with terrestrial networks, and software-based antenna tuning cannot be addressed through a traditional component-centric approach.
Yet many OEMs continue to maintain their existing structures, deferring the decision on when to transition.

LG Expert Insights - Rethinking the Role of NAD in Vehicle Connectivity

LG does not approach this key question as whether NAD is 'a component or not.’ LG defines its telematics products as an integrated hardware and software platform designed to evolve continuously, with in-house NAD design and antenna and system integration capabilities at its core.

 

First, LG's most powerful differentiator is that it develops NAD — the core of the communications module ecosystem — entirely in-house, without relying on external module suppliers.

Among global Tier 1 suppliers, it is uncommon to operate a vertically integrated model with fully internalized NAD design capabilities — a structure that LG has invested in building. This in-house capability not only improves cost competitiveness, it enables design optimization and flexible modifications to meet differentiated customer needs.

 

Second, telematics products must support a growing range of wireless technologies (5G, GPS , BT/WiFi, V2X, satellite, etc.) and higher data rates.

Vehicle connectivity performance is not secured by a single component's specs alone — it is only achieved when the NAD module, antenna design, and thermal management are engineered together as one system. The more fragmented the design flow, the harder it becomes to optimize performance and resolve issues.
LG has therefore built antenna design and system integration capabilities as core competencies alongside in-house NAD expertise, retaining end-to-end design and verification responsibilities for connectivity performance.

 

Finally, a proprietary software platform capable of controlling diverse communication chipsets and enabling services is one of the most critical factors ensuring high reusability and flexible upgradability.

Key takeaways for OEMs
 
  • NAD is no longer a simple functional component — it is the design layer that defines vehicle connectivity performance.
  • Performance differences ultimately come down to the level of integration and control across the system.
  • The more complex the future connectivity environment becomes, greater the risk of a component-assembly approach.
  • A Tier 1 supplier with in-house NAD design capabilities can take ownership of both performance and accountability, while minimizing overall development schedule risk.

LG's Solutions: Integrated NAD and Telematics Platform

LG designs and develops NAD in-house alongside our Telematics solutions, rather than through external assembly. This structure enables rapid decision-making and response at the system level when requirements change, whether for eCall, 5G, or regional regulation purposes.

In practice, LG has established a strong track record through global OEM eCall programs and has been at the forefront of real-vehicle verification of next-generation eCall. LG has also demonstrated NAD-Telematics-network interoperability in real-world conditions through 5GAA demos. In-house NAD development capability is the foundation that enables LG to take ownership of vehicle connectivity performance and regulatory compliance.