GM Picks Bell Atlantic, GTE to Develop In-Car Cellular Services
--From AOL News-- Cooters Troy, Michigan, Jan. 18 (Bloomberg) -- General Motors Corp. said it picked Bell Atlantic Corp. and GTE Corp. to establish a U.S. wireless phone network to support its OnStar car communications system.
The network will enable OnStar to provide subscribers with a nationwide cellular telephone network and voice-based Internet access, along with its current safety and security services.
Expanding Onstar, which car buyers can order as an option, is part of GM's efforts to generate more revenue from the cars it sells. The automaker will use the telephone network as it seeks to install up to 1 million phones in cars and trucks this year.
``Motor vehicles are more than a method of transport, they are becoming mobile communications platforms that can keep motorists safe, informed and productive,' said GM Chairman and Chief Executive John F. Smith Jr.
GM wants to expand OnStar to offer online entertainment and personal services to motorists. OnStar combines a global positioning satellite system to track cars, mobile cellular phones and direct links to operators at a call center. Car buyers who choose the OnStar option pay a monthly fee.
It lets drivers contact a 24-hour service center for directions, summons help in an emergency and tracks stolen cars. Drivers can also place phone calls on a hands-free cellular phone.
Bell Atlantic owns and operates the largest wireless network in the eastern U.S., a system in the southwest and a chain of retail outlets devoted to wireless voice, data and paging.
GTE provides local telephone service in 28 states and wireless service in 18 states, as well as nationwide long- distance, directory, and Internet services.
GM has said it will split a monthly fee for the OnStar service, which could generate $40 a month in revenue per vehicle. The automaker plans eventually to install the OnStar hardware in almost all of the 9 million vehicles it makes each year.
Jan/18/2000 5:10 |