Light Reading

Volvo: AT&T HSPA+ Can Drive My Car

Sarah Thomas
4/16/2014
50%
50%

AT&T is quickly becoming the carmakers' connectivity provider of choice. The carrier said on Wednesday it has added another carmaker, Volvo, to its roster of connected car partners.

The two have signed a multi-year agreement that will see Volvo embed AT&T Inc. (NYSE: T) HSPA+ connectivity in new Volvos in the US and Canada via its Single SIM platform. AT&T will power Sensus Connect, Volvo's embedded infotainment service built with Ericsson AB (Nasdaq: ERIC), as well as Volvo On Call for remote access to car functions and emergency crash notifications.

Volvo didn't say how it will charge for the connectivity, but its Sensus Connect service has traditionally been offered free for 12 months with a new Volvo, followed by a subscription fee. The pair expects cars with the embedded wireless to be available this summer.

Why this matters
The connected car arena is becoming a hotly contested space for telematics, and AT&T is emerging as a front-runner. It also has a deal in place with Audi, GM, and Tesla and recently opened a dedicated facility for carmakers to explore the possibilities with connectivity.

The question it's working to answer now is how much consumers will pay for connectivity in the car. The carrier is testing a subscription model with Audi, but recent Heavy Reading research suggests consumers are reluctant to pay more money for connectivity on the road. (See Finding the Value in Transportation Telematics.)

Related posts:

— Sarah Reedy, Senior Editor, Light Reading

(18)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
KBode
50%
50%
KBode,
User Rank: Light Sabre
4/18/2014 | 11:33:04 AM
Re: competing interests
AT&T and Verizon will ber sure to charge a per-device connection fee (like they do for tablets, smartphones, and hotspots), so yeah -- I see no point in giving AT&T or Verizon another $30 to $40 (whatever they ultimately charge you to have it pull from your data plan) when I'm already paying them so much each month.
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
4/18/2014 | 11:30:27 AM
Re: competing interests
That's good to hear. I suppose you wouldn't be streaming videos while you drive (I hope) so GPS and music are the two main bandwidth hogs. 

There are some trade-offs as you mention, but I think that may be worth it versus the expense of having that integration.
KBode
50%
50%
KBode,
User Rank: Light Sabre
4/18/2014 | 11:25:23 AM
Re: competing interests
Really not that bad, honestly. Though I already have a 4GB LTE data plan shared among three people. The majority of the streaming is Pandora, which isn't that big of a bandwidth eater -- the in-car GPS doesn't use data, and traffic is delivered via HD radio. I suppose much tighter Google intergation would eat more data; that's the one downside of this particular system -- you still wind up looking up addresses on the phone to then plug into the GPS because it's faster.
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
4/18/2014 | 11:20:00 AM
Re: competing interests
I think a lot of more tech-savvy people will agree with you. How did the in-car use affect your data usage though? Seems like you could reach the cap pretty quickly.
KBode
50%
50%
KBode,
User Rank: Light Sabre
4/18/2014 | 8:56:00 AM
Re: competing interests
I really don't see the need for an additional LTE or HSPA+ radio when you can just  tether your existing data connection to most cars. While so many GUI's have been clunky, I've tried the new Mazda 3 "infotainment" system and have been very impressed with how easy it is to use and connect to my existing LTE subscription. The touchscreen doesn't work in motion, but you can you a "commander knob" to select things while driving. Works great; simply don't see the need to pay AT&T an additional fee....
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
4/17/2014 | 3:10:23 PM
Re: LTE v HSPA+
Sarah - "I would just walk everywhere if I lived in the SoCal sunshine. I don't know what's that like anymore."

My preference would be to walk too, but it can be time-consuming. For example, I frequently go to conferences at the San Diego Convention Center. Google Maps says that's 22 minutes by car (I like to leave 45 minutes), 1 hour on public transit, and 3.5 hours on foot.

Fun walk to do one day, but not when I have to cover a telecom conference there for Light Reading. Not unless I want to start walking about 4 in the morning. 

"But my parents, who do drive, bought a car that was supposed to have a great nav system, but the typeface was so small, they couldn't read it. Seems like they need to fix some of the basics like that before they get too fancy."

Complaints like that are common among customers, and a big obstacle to the adoption of connected vehicles. Customers prefer their phone apps to the apps in the car. 

Also, there's the matter of upgrade cycles: Early adopters upgrade phones ever two years. Cars used to have that kind of upgrade cycle for affluent people -- doctors and lawyers bought new Cadillacs every two years. But I don't see that as the case anymore. 
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
4/17/2014 | 2:46:49 PM
Re: LTE v HSPA+
I would just walk everywhere if I lived in the SoCal sunshine. I don't know what's that like anymore.

But my parents, who do drive, bought a car that was supposed to have a great nav system, but the typeface was so small, they couldn't read it. Seems like they need to fix some of the basics like that before they get too fancy. 
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
4/17/2014 | 2:41:08 PM
Re: LTE v HSPA+
Yeah, I'd rather have good public transit and just use my iPhone. But one of the few downsides of living in Southern California is that it's a car culture all the way. 
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
4/17/2014 | 12:33:43 PM
competing interests
I've been on the phone with AT&T all morning trying to change or cancel my U-Verse service, and it's amusing that they end every call with "please don't text and drive." It's a noble campaign, but texting isn't the only distracting thing you can do in the car...Maybe they should change it, "please buy LTE service in your car, but don't use it for most of the advertised purposes."
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
4/17/2014 | 12:33:41 PM
competing interests
I've been on the phone with AT&T all morning trying to change or cancel my U-Verse service, and it's amusing that they end every call with "please don't text and drive." It's a noble campaign, but texting isn't the only distracting thing you can do in the car...Maybe they should change it, "please buy LTE service in your car, but don't use it for most of the advertised purposes."
Page 1 / 2   >   >>
From The Founder
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Between the CEOs
CEO Chat With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (5) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
Verizon Hums a Driving Tune
Sarah Thomas, Editorial Operations Director, 8/26/2015
Gogo Approved to Speed Up In-Flight WiFi
Sarah Thomas, Editorial Operations Director, 8/24/2015
Could Market Volatility Hurt Tech IPOs?
Dan Jones, Mobile Editor, 8/24/2015
Fact-Checking the Future of 'Silence Like Diamonds'
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/21/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about data center, cloud and the impact of virtualization in the coming years.
They say there's no such thing as a stupid question, but I probably sail pretty close to the wind in some of my interviews for LR. But then that's one of the things I ...
Cats with Phones
Cats & Boxes: A Love Affair Click Here