IBM will begin installing a "Smart Box" system in vehicles in the United Arab Emirates next year, potentially generating millions in traffic fines for the Gulf state. The UAE signed a $125 million contract with IBM today to provide the high-tech traffic monitoring and speed-enforcing system in which a GPS-enabled "Smart Box" would be installed in cars to provide a voice warning if the driver exceeds the local speed limit for wherever he may be driving. If the voice warning is ignored, the system would use a GSM/GPRS link to beam the car's speed, identity and location to the police so that a ticket could be issued. The system would also track and monitor any other driving violations, including "reckless behavior."

"Tens of thousands" of vehicles will have the boxes installed next year, but UAE officials have not yet clarified whether installation of the device will be mandatory. The UAE is no stranger to automated enforcement. It currently has a network of 20 red light and speed cameras which carry tough penalties -- six individuals have been imprisoned for transgressions caught on film.

IBM developed Smart Box with UAE University last year.

IBM said the Emirates' 2 million drivers are responsible for one of the worst traffic safety records in the world. According to government traffic studies IBM quoted, one person is injured every two hours, and one person dies pproximately every 15 hours on the Emirates' roads.