GM’s program to offer 4G LTE data plans across...
GM’s program to offer 4G LTE data plans across a broad swath of vehicles -- with data plans starting at $5 per month -- is part of a strategy to reach the millennial car buyer who demands a connected environment,…
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said Tim Nixon, chief technology officer, Global Connected Consumer. “A lot of our competitors decided to make [connectivity] a luxury item,” Nixon told us Tuesday at an off-site roundtable during CE Week, “but we don’t see data that way because it has broad appeal.” GM is targeting an eclectic group of drivers including small-business owners, soccer moms and millennials with plans available in a range of packages in vehicles ranging from the $12,000 Chevy Spark to the $66,000 Escalade ESV. The 4G LTE vehicles have begun rolling out, led by the 2015 Chevy Malibu, with plans calling for 4G LTE in 30 Buick, Cadillac, Chevrolet and GMC models in 2014, Nixon said. Nixon wouldn’t nail down a date by which GM hopes to have most of its fleet connected, but he said the determining factor for embedding a 4G LTE hotspot is a vehicle’s model refresh cycle and not wanting to add engineering costs to existing models before their transition year. Despite the service’s name, OnStar with 4G LTE, consumers don’t have to buy into OnStar to get data service, which non-Onstar subscribers can buy on a per-day rate of $5 for 250 MB of data or a monthly starting rate of $10 (200 MB). AT&T Wireless customers can add a vehicle to an existing data plan for $10 a month. GM chose AT&T as its 4G LTE partner for the service, which supports up to seven devices in a vehicle, because it’s a “compelling, capable network,” Nixon said. The earlier generation of OnStar service used the Verizon network, he noted. Nixon mused on several ways wireless connectivity in a vehicle could change the consumer driving experience in the future. Rather than paying a motel’s Wi-Fi fee, a consumer whose car were parked close enough to the motel room could theoretically use the vehicle for data in accessory mode, and could use a vehicle’s connectivity in a blackout assuming cell towers were working, he noted.