Interesting Article Re: GM and Vodafone(probably),G* possibly: GM, Partner to Seek Millions of Cellular Customers (Update1)
1/9/00 7:16:00 PM
Source: Bloomberg News
cnetinvestor.com.
(Adds comment from analyst Lobaccaro, cellular companies.)
Detroit, Jan. 9 (Bloomberg) -- General Motors Corp. said it's in talks with a unspecified large telecommunications company about a partnership that will make the world's biggest automaker a major reseller of cellular services that extend beyond the confines of a car and into the home and workplace. The scope far exceeds GM's current OnStar communications and satellite-based navigation system, whose subscriber base is projected to rise to 3 million in a few years from 100,000 now. The companies will begin tapping that customer base to sell traditional cellular services this year and more advanced services as they become available, said Mark Hogan, group vice president for e-GM, the carmaker's Internet business unit.
Quote Snapshot
*INX 1,457.60 16.13
*COMPX 4,049.67 167.05
*DJI 11,572.20 49.64
Enter symbol:
ú Symbol Lookup
sponsored by
More from CNET Investor
Quotes delayed 20+ minutes
Trade Now
with our sponsor brokers
``We know where you are, and we can help you anywhere you are,' Hogan said in an interview at the Detroit auto show. He wouldn't identify the company with whom he's talking, other than to say ``you have to think it's got to be a big carrier to be able to handle this.'
Some of the largest wireless companies in the U.S. include AT&T Corp., Vodafone AirTouch, Nextel Communications Inc. and Sprint Corp.'s PCS Group. Spokesman for Sprint PCS and Vodafone declined to comment. A Nextel spokesman said only that the company's phones and a laptop are being shown in a prototype GM truck, and AT&T couldn't immediately be reached.
Building Revenue
General Motors, which wants to expand services to generate revenue once a car is driven off a dealer lot, already buys cellular services so it can deliver directions and roadside assistance to OnStar subscribers. Because OnStar is built around global positioning systems that track a vehicle's location, GM is wagering it will have a leg up as rapid advances in technology lead to phones, computers and other wireless devices that a user carries from home to work to leisure activities.
``There's a big market opportunity they're pursuing,' said Nicholas Lobaccaro, a Lehman Brothers analyst.
In the future, more and more drivers will use cellular equipment built into vehicles, partly because traffic safety concerns with handheld phones are growing, Lobaccaro said. Once GM signs up customers of in-vehicle systems, ``you can get them to stay on the system' after they're in their homes or offices. The automaker will seek to offer OnStar and cellular phone services not just to current GM owners, but to anyone who wants them, Hogan said. GM will start offering such services in 12 to 24 months as it moves to build OnStar into vehicles at the factory , instead of having it as a dealer-installed option.
The expected growth in the OnStar service would increase leverage to drive down the cost of the cellular services GM purchases, Hogan said. The lower prices will help GM and its partner sell OnStar to more customers and expand into traditional cellular services. Because it uses satellites to track vehicles with pinpoint accuracy, OnStar can direct police and medical personnel to the exact location of accident. Drivers seeking the same help with cellular phones sometimes aren't certain where they are and may be routed to 911 emergency operators in the wrong cities.
Related News
Bell Atlantic Adds 874,000 - Bloomberg
Bell Atlantic Adds 874,000 - Bloomberg
Wireless Customers in Record - PR Newswire
Esat Had 550,000 Mobile Phone - Bloomberg
U.K. Equity Preview: Retailers, - Bloomberg
Mannesmann to Target Phone - Bloomberg
Esat Telecom Had 550,000 - Bloomberg
Mannesmann Says Orange Will - Bloomberg
KPN Adds 220,000 Mobile Customers - Bloomberg
Uni2, Jazztel to Bid for - Bloomberg
Free Investor Dispatch |
