General Motors’ OnStar 4G LTE service, which grants more than 30 GM automobiles access to mobile broadband data, is still a fresh, new concept. Yet, it’s already shaping up to be a lucrative venture for the automaker, with Reuters reporting that GM anticipates generating approximately $350 million from the feature by 2018.
At a Bank of America Merill Lynch conference, General Motors CFO Chuck Stevens called the OnStar 4G LTE feature an “untapped, under-appreciated opportunity,” asserting that it was one part of a strategy of improving in-car technology to attract younger buyers. So far, the OnStar mobile broadband functionality has only made its way into some North American GM products, although its availability is projected to spread to the entire portfolio by 2016. Stevens says that there are plans to move the tech overseas, as well.
The OnStar 4G LTE spread to Europe and elsewhere may well be the most vital part of the larger picture; General Motors is gunning for profitability, and at least a 10 percent operating margin in Europe in 2016. No doubt that OnStar mobile broadband will play an important role.