GM and AT&T: Making Cars WiFi Hot Spots

The recent increase in digital technology as a staple in the cabin of every new car is sure to spawn a future rich in partnerships between automotive manufacturers and suppliers of digital technologies and services.

Next year, avid GM vehicle fans can expect to see even more examples of this.

In fact, the majority of upgrades in any model of vehicle on today’s market consists heavily of hardware designed for subscriptions to navigation services and smart technologies that depend on driver subscriptions. The latest partnership to hit the headlines in this regard is that between General Motors and AT&T. The goal of the deal is to upgrade the kind of wireless service that drivers are capable of receiving in GM vehicles. Every new car rolling off the lot will be equipped with hardware that is designed to receive 4G mobile service rather than the traditional 2 and 3G service of the past. The project is aimed at increasing the speed with which drivers receive information, not to mention providing GM with roughly $20 for every customers that signs on for the service.

The foundation and impetus of the change lies in the capabilities of the OnStar service that is currently available to GM customers, according to the automotive manufacturer’s president, Dan Akerson. In the past, the OnStar unit was geared towards safety and emergency response services for each driver. GM is hoping that the upgrade will allow for a transition to a device and service that offers many more functions. In addition to unlocking doors and calling police or emergency vehicles to the site of an accident, OnStar will partner with AT&T to also provide digital information that is less rooted in utility and more expansive in the entertainment department.

Incorporating the 4G LTE network into all vehicles will be a first in the automotive industry. Once GM takes this step, it is also likely that the majority of manufacturers will follow. There are already 6 million subscribers to the OnStar network as the system operates currently. The expanded capabilities are projected to raise the revenues of the already $1.5 billion that currently comes in from drivers across the United States and Canada. The shift will mean that GM is abandoning its partnership with Verizon to provide OnStar services. The average driver using the old hardware was only receiving information at 2G speeds on average. According to GM spokespersons, the change will be in full effect by the time the company releases the majority its 2015 model cars and trucks.