As reported by NBC News: We live in a connected world. It’s
rare to go anywhere without finding people staring into their
smartphones. So, it should seem only natural that automakers are getting
set to launch a new era of connected automobiles that can serve up
their own WiFi hot-spots.
General
Motors will join the club next month when it officially launches 4G LTE
service for the new Chevrolet Malibu sedan, adding a wide range of
additional models before the end of the year. It joins a growing list of
manufacturers –including Audi and Chrysler’s Ram brand -- who currently
offer, or will soon add, 4G connectivity in their own products.
“We’re excited to give
millions of customers an opportunity to explore the technology,” said
Mary Chan, president of GM’s OnStar subsidiary operating the maker’s 4G
service and which will initially offer a three-month free trial.
Some
observers question precisely whom the technology will appeal to, and
it’s perhaps no surprise that initial OnStar marketing illustrates the
potential benefits for parents with children who can now be kept happy
in the back seat watching online movies, texting or playing online games
with friends.
The new GM service
was, perhaps not surprisingly, initiated under former GM CEO Dan
Akerson, a long-time telecomm industry executive, who announced a
partnership with AT&T.
The communications giant will allow its
existing customers to bundle the in-car service with their existing
accounts, and non-AT&T users will be allowed to subscribe
separately.
The OnStar service
will be offered with varying levels of data, monthly fees running from
$10 to $50 a month, though motorists can alternately opt to buy a set
amount of data usage over a 12-month period, ranging from $5 to $200.
Skeptics
question the appeal of establishing a fixed WiFi hot-spot in a vehicle
when anyone can alternately sign up for mobile 4G service with a range
of vendors, including Sprint, TMobile, Verizon, as well as AT&T,
using card-sized devices that can be taken anywhere. And many new
smartphones, including the Apple iPhone, can be turned into WiFi
hot-spots for an additional fee.
GM
and other makers contend they have an advantage in that their built-in
4G systems will utilize an external antenna that ensures improved signal
strength when compared to a portable hot-spot that might be sitting in
the cup-holder or a pocket inside a largely steel vehicle.
But
a similar claim didn't do much to enhance the appeal of built-in
cellphone systems that were pitched as the latest-and-greatest
technology two decades ago. Fixed, in-car phones also had significantly
stronger radio signals, meaning greater range and fewer dropped
connections, but eventually lost out to handheld phones.
Makers like GM are still
betting that consumers will be happy to have a built-in data connection
while they travel – something that could also appeal to commuters,
especially those carpooling who want to get work done on the way to the
office.
But while access to
e-mail, news, music and movies may be the marketing pitch, the
technology eventually will offer automakers, as much as auto buyers,
some big benefits.
Tesla, for
example, has an in-car data link it can use to update the extensive
software systems in its vehicle – which boasts a laptop computer-sized
LCD display atop the center console that handles virtually all vehicle
functions.
The ability to
remotely reprogram a car’s software could be a big plus in the event of a
recall, for example, like the one Ford just announced due to a
mis-programmed rollover airbag system. Using such a remote link would
cost next to nothing, especially when compared to having to pay dealers
to handle the recall, as is now the case. That would also help boost the
number of vehicles that actually get the fix. Today, as much as a third
or more of motorists fail to take their cars in for such repairs.
The
new OnStar 4G system will eventually be offered on the vast majority of
products GM’s four U.S. brands offer, from the Chevrolet Corvette
sports car to the Cadillac XTS luxury sedan.
Chrysler
was one of the first to introduce in-car WiFi capabilities on its Ram
pickup line, anticipating an appeal for truckers who want the ability to
stay connected at a work site.
Audi
has also been rolling out the technology on a variety of models,
including its new A3 compact luxury line. The A3 will adopt another
concept from the consumer electronics world, meanwhile. A number of key
components in its infotainment system, including the critical video
driver hardware, has been made plug-n-play. That means that in years
ahead, a motorist won’t be saddled with outdated technology but will be
able to purchase an update, much like consumers can do today with an
older computer.
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