To: im a survivor who wrote (61903 ) 1/12/2000 7:45:00 PM From: Sully- Read Replies (1) | Respond to of 152472
GM to Team With Bell Atlantic on Cellular Service, People Saycnetinvestor.com 1/12/00 3:20:00 PM Source: Bloomberg News Detroit, Jan. 12 (Bloomberg) -- General Motors Corp. is in talks with Bell Atlantic Corp. to put cell phones in millions of new cars and trucks, part of the No. 1 automaker's strategy to link drivers to the Internet and generate revenue after a sale, people familiar with the plan said. GM said today it will install as many as 1 million phones in vehicles this year but wouldn't say which telecommunications company it was talking to. The people said an agreement with Bell Atlantic, the No. 2 U.S. local phone company, may come as early as next week. The companies declined to comment. The alliance would further GM's efforts to offer online entertainment and local traffic reports to motorists via its OnStar system, which uses satellites to track vehicles and cell service for communication. OnStar is a key part of GM's plan to keep making money from cars after they're driven off dealer lots. The plan 'would effectively double the number of mobile Internet phones that are out there today,' said Mark Lowenstein, senior vice president at Boston-based market researcher Yankee Group. 'That's an awfully ambitious number, but on the other hand, they sell a lot of cars.' Mark Hogan, head of GM's Internet unit, said today that GM and its eventual partner would split a monthly fee for the service. OnStar could generate $40 a month in revenue per vehicle, Hogan said, and GM eventually plans to install the hardware for the service on almost all of the 9 million vehicles it makes annually. 'You can imagine, if we develop a subscription fee for every car we make, what an opportunity it would be for us to increase the value of GM,' Chairman Jack Smith said in an interview. Bell Atlantic said Monday it added 874,000 wireless customers in the fourth quarter, bringing its total to 7.7 million, as it completed the acquisition of Frontier Cellular and as shoppers snapped up digital cellular phones as holiday gifts. In September, Bell Atlantic agreed to combine its U.S. wireless assets with those of Vodafone AirTouch Plc. When Bell Atlantic's $81.7 billion purchase of GTE Corp. is completed, the company's wireless division will be the largest in the U.S., with about 22 million subscribers, Bell Atlantic said. GM shares, which rose 3 7/16 to 76 3/8 in New York Stock Exchange trading, have gained 11 percent in the past 52 weeks after it recovered from strikes in 1998. Shares of New York-based Bell Atlantic fell 1 61/64 to 56.