General Motors recently announced that they will be entering
into an agreement with AT&T to have built in cellular data service on most
of its models starting in 2015. GM’s current CEO and Chairman of the Board, Daniel Akerson,
who is a former telecommunications executive, has long been a proponent of these
type services.
The multi-year agreement calls for AT&T to enable
millions of GM cars with 4G LTE mobile internet access. This could potentially
offer enough bandwidth for all kinds of services including streaming audio, web
access, and even live video. It could truly give new meaning to the term
“mobile office.” These services would be offered through On-Star, which is a
subsidiary of GM. The service would also integrate into the vehicles’ operating
systems and allow drivers more efficient monitoring of their vehicle’s safety,
security, and diagnostics to ensure optimal performance.
GM recently sponsored an event in Las Vegas, NV where they introduced
a new set of vehicle application programming interfaces (APIs), a set of
protocols typically released by hardware developers like Apple and Google allowing
third party developers to create applications for that hardware. GM hopes that
these APIs will enable developers to build apps primarily for their vehicles’ “infotainment”
systems. You will soon have all the
entertainment you could ever want even more readily available than it already
is. Are you really into the new episode of Real Housewives of Topeka? Well, the
service will allow you to start TV shows at home and then continue where you
left off in the car, for example, via Netflix. So now you can speed-watch the
new season of Arrested Development while being arrested for speeding in a
development.
In order to offset some of the initial manufacturing costs,
GM is considering selling internet ads on its dashboards. So while checking the
score to the big game in the car, you will get those continuous interruptions
for some University nobody has heard of like we currently love hearing through
Pandora.
Of course this service would come with a “reasonable”
monthly fee, because all of us definitely do not have enough of those in our
lives. The details are still being worked out, but GM will receive $20 per
connected subscriber from AT&T along with a share of the revenue.
One of the big challenges to this will be marketing this
effectively and generating the right level of demand. There is a wealth of
devices capable of providing all these same services that are most likely already
in your pockets and in your car. Furthermore, critics have also raised concerns
that this service will increase driver distraction, which has increasingly
become a big issue as web access and streaming continues to be more readily
available. But honestly, what does safety have to do with catching the finale of Toddlers
in Tiaras?
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