It was only a matter of time until General Motors provided some concrete information about its plans to integrate in-vehicle high-speed 4G LTE wireless connectivity service into its vehicles. And given that the 2014 International Consumer Electronics Show (CES) has just officially begun, what better venue than to announce details surrounding the connectivity rollout?
The 2015 Chevrolet Corvette, Impala, Malibu, and Volt will be the first GM vehicles to be optionally equipped with OnStar 4G LTE — as the service, delivered via AT&T, will be officially known. The initial batch of compatible vehicles will be followed by the 2015 Equinox, Silverado, Silverado HD, Spark and Spark EV, as well as the Chevrolet Trax subcompact CUV in Canada, with more models being announced later on in 2014.
“Chevrolet is expected to implement the broadest deployment of 4G LTE in the automotive industry,” said Alan Batey, senior vice president of Global Chevrolet. “The fact that OnStar with 4G LTE will be available in models that range from the Chevrolet Spark to the Silverado to the Corvette, is indicative of our broad commitment to deliver more value and convenience through smart technology applications. This new, purposeful technology solution will make our consumers lives easier to connect.”
The newfound availability of in-vehicle 4G LTE connectivity will enable drivers to download apps from GM’s AppShop in certain 2015 model year vehicles and also allow passengers to connect their personal devices, such as smartphones, laptops, and tablets, to a high-speed internet Wi-Fi hotspot, with each vehicle being able to accommodate multiple connected devices at one time. In effect, the vehicle then becomes a Wi-Fi hotspot on wheels.
“We know that our customers rely on being connected on a daily, if not hourly basis, and they expect to be provided with the information and content they desire with no interruptions,” said Mary Chan, president, GM’s Global Connected Consumer. In contrast to in-vehicle connectivity solutions offered by competitors, which sometimes require customers to bring a mobile device into the vehicle, GM’s 4G LTE hotspot is built right into the car’s architecture, thereby being able to “provide a more consistent and powerful Wi-Fi connection than a smartphone”, according to Chan.
From an accounts perspective, current AT&T customers will be able to add their vehicle to a shareable bucket of data through AT&T Mobile Share plans. In addition, all drivers will also be able to pay for data on a standalone option. General Motors will announce additional pricing and data packages for OnStar 4G LTE later in 2014.
For those keeping track, the launch of OnStar’s 4G LTE connectivity will coincide with the introduction of the tenth-generation OnStar hardware in those vehicles.
Comments
This will be big for who ever gets it right for the market. Many younger connected people will be more interested in this feature than what engine it has.
They need to put this in the Colorado too. This is going to be a new rollout… What is wrong with them? Actually put it in all cars.
The real story is how GM is looking to leverage recurring and transactional revenue streams. For example, the announcement today with Priceline is another revenue stream. Adding apps to the 4G could be a big deal. I also think many buyers will opt for 4G and drop Sirius XM and use internet radio. When GM gets to an installed base of 10 million vehicles over the next 7 to 10 years, it’s not too hard to see a 0.5 to $1 Billion in extra revenue per year ($50 to $100 per car) which will drop to the bottom line. These earnings could be valued at double the multiple to earnings than the regular car business.
Speaking of the 2015 Impala, has GM released their official changelog/RPO changes for it? I’m very curious to see if Siri Eyes-Free and iOS In the Car make it onto the Impala.
Going back on topic, I think the rollout of the 4G LTE hotspot is a very neat idea. But in my situation, I switched from AT&T to T-Mobile in November where I now have unlimited everything for $33 cheaper every month, which leaves this feature almost useless to me. In a way, with my iPhone’s mobile hotspot, I’ll pretty much have the same effect without the extra cost.
Anyone know if you will be able to add the service to a 2014 model vehicle or it has to be peri stalled on vehicle from the factory?
Hello, Neat post. There’s a problem together with your web site
in internet explorer, could test this? IE still is the markettplace chief aand a good component of other folks wilpl leave out your
excellent writing because of this problem.