GM Expects Increased Revenue From Its Vehicles Fitted With 4G LTE Connectivity image

GM CEO Dan Akerson said that the 4G LTE connectivity will bring a significant increase in the company’s revenue.

At the beginning of this year GM announced it had signed a deal with AT&T to include 4G LTE mobile Internet access into the automaker’s most 2015 models sold in Canada and the US, which will hit the market in mid-2014. Akerson said that GM might even receive a fee from AT&T since customers will have to sign up for new connected services.

“During the call, some specifics were offered up regarding our partnership with AT&T and the new business model opportunities it may create,” GM said in the statement. “These comments did not disclose the entirety of both sides of our agreement with AT&T and we are not prepared to discuss those particulars at this time. We may share more at a later date, closer to vehicle launch.”

AT&T will offer an in-vehicle connection to OnStar’s security and safety services and provide streaming audio, Internet, application downloads, in-vehicle Wi-Fi hot spot and voice calling, and streaming video for back-seat passengers.

“There is a whole new frontier for us that I think we’ll have margins that will exceed which you typically see in the manufacturing business,” said Akerson.

Source: The Detroit News