On 25 February 2013, General Motors (GM) announced a global strategy to equip its cars and trucks with embedded 4G LTE mobile broadband. Most of GM’s 2015 models in the United States and Canada will be offered with LTE on AT&T’s network, and the automaker plans to announce more LTE carrier relationships in global markets in the coming months.
GM’s global commitment to deploying embedded LTE in its vehicles is an important step in the evolution of connected-vehicle offerings that will raise consumer expectations of the connected vehicle experience and force other automakers to develop LTE deployment plans. Premium brands like Audi and BMW have also announced LTE plans, but GM is the first volume manufacturer that plans to roll out the technology globally. The use of LTE technology will enable GM and other automakers to create a foundation for future connected-vehicle innovations centered on data-rich applications and services like:
GM’s announcement highlights the importance of AT&T as a strategic collaboration partner in jointly exploring new LTE-based automotive value propositions and motivating application developers to focus on the connected vehicle, given competition from other, more pervasive device platforms, such as smartphones. GM will simultaneously support high-bandwidth connectivity via smartphones, and plans to pursue creative business models with AT&T to drive broad adoption of its new 4G LTE platform.
Partnerships like this must, however, also offer flexible, attractive pricing for data plans, to convince consumers to use the service instead of their smartphones. A recent Gartner survey shows that 31% of U.S. vehicle owners prefer in-vehicle Internet enabled via smartphone data plans vs. 21% who prefer an embedded vehicle data plan (see "U.S. Consumer Vehicle ICT Study: Web-Based Features Continue to Rise" ). Automakers and carriers must give customers the choice of adding vehicles as additional devices on their existing smartphone data plans. Customers should also be allowed to add extra wireless data volumes on a monthly or as-needed basis (for example, to support higher usage during a family trip).
Some documents may not be available as part of your current Gartner subscription.
|Resource Id: 2355916|